Document:

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                                                                   Exhibit 10.13

                               CRM HOLDINGS, LTD.
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                          2005 LONG-TERM INCENTIVE PLAN
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                               CRM HOLDINGS, LTD.
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                          2005 LONG-TERM INCENTIVE PLAN
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1.    Purpose............................................................      1

2.    Definitions........................................................      1

3.    Administration.....................................................      3

4.    Stock Subject to Plan..............................................      4

5.    Eligibility; Per-Person Award Limitations .........................      5

6.    Specific Terms of Awards...........................................      6

7.    Performance-Based Compensation.....................................     11

8.    Certain Provisions Applicable to Awards............................     14

9.    Change  in Control.................................................     15

10.   General Provisions.................................................     17
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                                CRM HOLDINGS, LTD
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                          2005 LONG-TERM INCENTIVE PLAN
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      1.    PURPOSE. The purpose of this 2005 Long-Term Incentive Plan (the
"PLAN") is to aid CRM Holdings, Ltd., a Bermuda company (together with its
successors and assigns, the "COMPANY"), in attracting, retaining, motivating and
rewarding certain employees and non-employee directors of the Company and its
subsidiaries and affiliates, to provide for equitable and competitive
compensation opportunities, to recognize individual contributions and reward
achievement of Company goals, and promote the creation of long-term value for
shareholders by closely aligning the interests of Participants with those of
shareholders. The Plan authorizes stock-based and other incentives for
Participants.

      2.    DEFINITIONS. In addition to the terms defined in Section 1 above and
elsewhere in the Plan, the following capitalized terms used in the Plan have the
respective meanings set forth in this Section:

      (a)   "Annual Limit" shall have the meaning specified in Section 5(b).

      (b)   "Award" means any Option, SAR, Restricted Stock, Restricted Stock
Unit, Stock granted as a bonus or in lieu of another award, Dividend Equivalent,
Other Stock-Based Award, Performance Award or Phantom Shares, together with any
related right or interest, granted to a Participant under the Plan.

      (c)   "Beneficiary" means the legal representatives of the Participant's
estate entitled by will or the laws of descent and distribution to receive the
benefits under a Participant's Award upon a Participant's death, provided that,
if and to the extent

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authorized by the Committee, a Participant may be permitted to designate a
Beneficiary, in which case the "Beneficiary" instead will be the person,
persons, trust or trusts (if any are then surviving) which have been designated
by the Participant in his or her most recent written and duly filed beneficiary
designation to receive the benefits specified under the Participant's Award upon
such Participant's death.

      (d)   "Board" means the Company's Board of Directors.

      (e)   "Change in Control" of the Company, unless otherwise defined in an
Award agreement or in a written employment agreement by and between the Company
and the Participant, shall be deemed to have occurred in the event that after
the Effective Date hereof (i) any person or group becomes the beneficial owner
of securities of the Company representing more than 40% of the then voting power
of the Company; (ii) members of the Board at the Effective Date of this Plan or
who were appointed after the Effective Date by at least two-thirds (2/3) of the
members of the Board at the time of the appointment no longer constitute
two-thirds (2/3) of the Board during the term hereof; (iii) a
merger/consolidation/amalgamation of the Company occurs wherein the Company
voting securities immediately prior thereto do not constitute at least 60
percent of the combined voting securities after the
merger/consolidation/amalgamation; or (iv) the shareholders approve a plan of
complete liquidation or winding-up or an agreement for the sale or disposition
of all or substantially all of the Company's assets.

      (f)   "Code" means the Internal Revenue Code of 1986, as amended.
References to any provision of the Code or regulation thereunder shall include
any successor provisions and regulations, and reference to regulations includes
any applicable guidance or pronouncement of the Department of the Treasury and
Internal Revenue Service.

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      (g)   "Committee" means the Compensation Committee of the Board, the
composition and governance of which is established in the Committee's Charter as
approved from time to time by the Board and subject to the rules and regulations
of The Nasdaq Stock Market, Inc., and other corporate governance documents of
the Company. No action of the Committee shall be void or deemed to be without
authority due to the failure of any member, at the time the action was taken, to
meet any qualification standard set forth in the Committee Charter or the Plan.
To the extent that a Compensation Committee shall not be in office, the
Committee shall be the full Board. The Committee shall consist of such number of
non-employee directors as may be required and each such non-employee director
shall satisfy such requirements as may be necessary to qualify for exemptions
under Rule 16b-3 or qualifying Awards under Code Section 162(m) as
performance-based compensation and to comply with the rules and regulations of
The Nasdaq Stock Market, Inc.

      (h)   "Common Shares" means the Company's common shares of par value
US$0.01 per share.

      (i)   "Covered Employee" means an Eligible Person who is a Covered
Employee as specified in Section 10(l).

      (j)   "Dividend Equivalent" means a right, granted under this Plan, to
receive cash, Stock, other Awards or other property equal in value to all or a
specified portion of the dividends paid with respect to a specified number of
shares of Stock.

      (k)   "Effective Date" means the effective date specified in Section
10(s).

      (l)   "Eligible Person" has the meaning specified in Section 5.

      (m)   "Exchange Act" means the Securities Exchange Act of 1934, as
amended. References to any provision of the Exchange Act or rule (including a
proposed rule) thereunder shall include any successor provisions and rules.

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      (n)   "Fair Market Value" means the fair market value of Stock, Awards or
other property as determined in good faith by the Committee or under procedures
established by the Committee. Unless otherwise determined by the Committee, the
Fair Market Value of Stock shall be the officially-quoted closing selling price
of the stock or if no selling price is quoted the bid price on the principal
stock exchange or market on which Stock is traded on the day immediately
preceding the day as of which such value is being determined or, if there is no
sale on that day, then on the last previous day on which a sale was reported.
Fair Market Value relating to the exercise price or base price of any Non-409A
Option or SAR shall conform to requirements under Code Section 409A.

      (o)   "409A Awards" means Awards that constitute a deferral of
compensation under Code Section 409A and regulations thereunder. "Non-409A
Awards" means Awards other than 409A Awards. Although the Committee retains
authority under the Plan to grant Options, SARs and Restricted Stock on terms
that will qualify those Awards as 409A Awards, Options, SARs, Restricted Stock
and Phantom Shares are intended to be Non-409A Awards unless otherwise expressly
specified by the Committee.

      (p)   "Incentive Stock Option" or "ISO" means any Option designated as an
incentive stock option within the meaning of Code Section 422 and qualifying
thereunder.

      (q)   "Option" means a right, granted under the Plan, to purchase Stock.

      (r)   "Other Stock-Based Awards" means Awards granted to a Participant
under Section 6(h).

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      (s)   "Participant" means a person who has been granted an Award under the
Plan which remains outstanding, including a person who is no longer an Eligible
Person.

      (t)   "Performance Award" means a conditional right, granted to a
Participant under Sections 6(i) and 7, to receive cash, Stock or other Awards or
payments.

      (u)   "Phantom Share" means an Award consisting of a contractual right to
a hypothetical share of Stock granted pursuant to Section 6(j) of the Plan.

      (v)   "Restricted Stock" means Stock granted under the Plan which is
subject to certain restrictions and to a risk of forfeiture.

      (w)   "Restricted Stock Unit" or "RSU" means a right, granted under the
Plan, to receive Stock, cash or other Awards or a combination thereof at the end
of a specified deferral period.

      (x)   "Retirement" means, unless otherwise stated by the Committee (or the
Board) in an applicable Award agreement, a Participant's voluntary termination
of employment (with the approval of the Board) after achieving 65 years of age.

      (y)   "Rule 16b-3" means Rule 16b-3, as from time to time in effect and
applicable to Participants, promulgated by the Securities and Exchange
Commission under Section 16 of the Exchange Act.

      (z)   "Stock" means the Common Shares, and any other equity securities of
the Company that may be substituted or resubstituted for Stock pursuant to
Section 10(c).

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      (aa)  "Stock Appreciation Rights" or "SAR" means a right granted to a
Participant under Section 6(c).

      3.    ADMINISTRATION.

      (a)   AUTHORITY OF THE COMMITTEE. The Plan shall be administered by the
Committee, which shall have full and final discretionary authority, in each case
subject to and consistent with the provisions of the Plan, to select Eligible
Persons to become Participants; to grant Awards; to determine the type and
number of Awards, the dates on which Awards may be exercised and on which the
risk of forfeiture or deferral period relating to Awards shall lapse or
terminate, the acceleration of any such dates, the expiration date of any Award,
whether, to what extent, and under what circumstances an Award may be settled,
or the exercise price of an Award may be paid, in cash, Stock, other Awards, or
other property, and other terms and conditions of, and all other matters
relating to, Awards; to prescribe documents evidencing or setting terms of
Awards (such Award documents need not be identical for each Participant),
amendments thereto, and rules and regulations for the administration of the Plan
and amendments thereto (including outstanding Awards); to construe and interpret
the Plan and Award documents and correct defects, supply omissions or reconcile
inconsistencies therein, and to determine the amount of benefits payable to a
Participant; and to make all other decisions and determinations as the Committee
may deem necessary or advisable for the administration of the Plan. Decisions of
the Committee with respect to the administration and interpretation of the Plan
shall be final, conclusive, and binding upon all persons interested in the Plan,
including Participants, Beneficiaries, transferees under Section 10(b) and other
persons claiming rights from or through a Participant, and shareholders.

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      (b)   MANNER OF EXERCISE OF COMMITTEE AUTHORITY. The express grant of any
specific power to the Committee, and the taking of any action by the Committee,
shall not be construed as limiting any power or authority of the Committee. The
Committee may act through subcommittees, including for purposes of perfecting
exemptions under Rule 16b-3 or qualifying Awards under Code Section 162(m) as
performance-based compensation, in which case the subcommittee shall be subject
to and have authority under the charter applicable to the Committee, and the
acts of the subcommittee shall be deemed to be acts of the Committee hereunder.
The Committee may establish from time to time such regulations, provisions,
proceedings and conditions which the Committee determines may be advisable for
the administration of the Plan. A majority of the Committee (or subcommittee
where appointed) shall constitute a quorum and subject to Section 3(a) of the
Plan, the acts of a majority present at any meeting at which a quorum is
present, or acts approved in writing by all Committee members, shall be acts of
the Committee as a whole. The Committee may delegate the administration of the
Plan to one or more officers or employees of the Company, and such
administrator(s) may have the authority to execute and distribute Award
agreements or other documents evidencing or relating to Awards granted by the
Committee under this Plan, to maintain records relating to Awards, to process or
oversee the issuance of Stock under Awards, to interpret and administer the
terms of Awards and to take such other actions as may be necessary or
appropriate for the administration of the Plan and of Awards under the Plan,
provided that in no case shall any such administrator(s) be authorized (i) to
grant Awards under the Plan, (ii) to take any action that would result in the
loss of an exemption under Rule 16b-3 for Awards granted to or held by
Participants who at the time are subject to Section 16 of the Exchange Act in
respect of the Company or that would cause Awards intended to qualify as
"performance-based compensation" under Code Section 162(m) to fail to so
qualify, (iii) to take any action inconsistent with

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the Bermuda Companies Act 1981, as amended, or (iv) to make any determination
required to be made by the Committee under The Nasdaq Stock Market, Inc.
corporate governance standards applicable to listed company compensation
committees (currently, Rule 4200). Any action by any such administrator(s)
within the scope of its delegation shall be deemed for all purposes to have been
taken by the Committee and, except as otherwise specifically provided,
references in this Plan to the Committee shall include any such
administrator(s). The Committee (and, to the extent it so provides, any
subcommittee) shall have sole authority to determine whether to review any
actions and/or interpretations of any such administrator(s), and if the
Committee shall decide to conduct such a review, any such actions and/or
interpretations of any such administrator(s) shall be subject to approval,
disapproval or modification by the Committee.

      (c)   LIMITATION OF LIABILITY. The Committee and each member thereof, and
any person acting pursuant to authority delegated by the Committee, shall be
entitled, in good faith, to rely or act upon any report or other information
furnished by any executive officer, other officer or employee of the Company or
a subsidiary or affiliate, the Company's independent auditors, consultants or
any other agents assisting in the administration of the Plan. Members of the
Committee, any person acting pursuant to authority delegated by the Committee,
and any officer or employee of the Company or a subsidiary or affiliate acting
at the direction or on behalf of the Committee or a delegee shall not be
personally liable for any action or determination taken or made in good faith
with respect to the Plan, and shall, to the extent permitted by law, be fully
indemnified and protected by the Company with respect to any such action or
determination.

      4.    STOCK SUBJECT TO PLAN.

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      (a)   OVERALL NUMBER OF SHARES AVAILABLE FOR DELIVERY. The total number of
shares of Stock reserved for delivery in connection with Awards under this Plan
shall be 1,500,000 shares. The total number of shares available is subject to
adjustment as provided in Section 10(c). Any shares of Stock delivered under the
Plan shall consist of authorized and unissued shares. No more than 1,000,000
shares may be delivered hereunder as ISOs.

      (b)   SHARE COUNTING RULES. The Committee may adopt reasonable counting
procedures to ensure appropriate counting, avoid double counting (as, for
example, in the case of tandem or substitute awards) and make adjustments in
accordance with this Section 4(b). Shares shall be counted against those
reserved to the extent such shares have been delivered and are no longer subject
to a risk of forfeiture. To the extent that an Award under the Plan is canceled,
expired, forfeited, settled in cash, settled by issuance of fewer shares than
the number underlying the award, or otherwise terminated without delivery of
shares to the Participant, the shares not issued by the Company will remain
available under the Plan; and shares that are withheld from such an award or
separately surrendered by the Participant in payment of any exercise price or
taxes relating to such an award shall be deemed to constitute shares not
delivered to the Participant and will be available under the Plan. In addition,
in the case of any Award granted in assumption of or in substitution for an
award of a company or business acquired by the Company or a subsidiary or
affiliate or with which the Company or a subsidiary or affiliate combines,
shares issued or issuable in connection with such substitute Award shall not be
counted against the number of shares reserved under the Plan.

      5.    ELIGIBILITY; PER-PERSON AWARD LIMITATIONS.

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      (a)   ELIGIBILITY. Awards may be granted under the Plan only to Eligible
Persons. For purposes of the Plan, an "Eligible Person" means (i) an employee of
the Company or any subsidiary or affiliate, including any person who has been
offered employment by the Company or a subsidiary or affiliate, provided that
such prospective employee may not receive any payment or exercise any right
relating to an Award until such person has commenced employment with the Company
or a subsidiary or affiliate, (ii) any non-employee directors of the Company, or
(iii) other individuals who perform services for the Company or any subsidiary
or affiliate. An employee on leave of absence may be considered as still in the
employ of the Company or a subsidiary or affiliate for purposes of eligibility
for participation in the Plan, if so determined by the Committee. For purposes
of the Plan, a joint venture in which the Company or a subsidiary has a
substantial direct or indirect equity investment shall be deemed an affiliate,
if so determined by the Committee. Holders of awards who will become Eligible
Persons granted by a company or business acquired by the Company or a subsidiary
or affiliate, or with which the Company or a subsidiary or affiliate combines,
are eligible for grants of substitute awards granted in assumption of or in
substitution for such outstanding awards previously granted under the Plan in
connection with such acquisition or combination transaction, if so determined by
the Committee.

      (b)   PER-PERSON AWARD LIMITATIONS. In each calendar year during any part
of which the Plan is in effect, an Eligible Person may be granted Awards under
each of Section 6(b) through (j) relating to up to his or her Annual Limit (such
Annual Limit to apply separately to the type of Award authorized under each
specified subsection). A Participant's Annual Limit, in any year during any part
of which the Participant is then eligible under the Plan, shall equal 500,000
shares plus the amount of the Participant's unused Annual Limit relating to the
same type of Award as of the close of the previous

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year, subject to adjustment as provided in Section 10(c). In the case of an
Award which is not valued in a way in which the limitation set forth in the
preceding sentence would operate as an effective limitation satisfying
applicable law (including Treasury Regulation 1.162-27(e)(4)), an Eligible
Person may not be granted Awards authorizing the earning during any calendar
year of an amount that exceeds the Eligible Person's Annual Limit, which for
this purpose shall equal $5 million plus the amount of the Eligible Person's
unused cash Annual Limit as of the close of the previous year (this limitation
is separate and not affected by the number of Awards granted during such
calendar year subject to the limitation in the preceding sentence). For this
purpose, (i) "earning" means satisfying performance conditions so that an amount
becomes payable, without regard to whether it is to be paid currently or on a
deferred basis or continues to be subject to any service requirement or other
non-performance condition, and (ii) a Participant's Annual Limit is used to the
extent an amount or number of shares may be potentially earned or paid under an
Award, regardless of whether such amount or shares are in fact earned or paid.

      (c)   AUTOMATIC GRANT. The Committee shall have no power to determine
eligibility for grants of Restricted Stock awards or the amount of Restricted
Stock with respect to any non-employee director of the Company. Grants of
Restricted Stock awards to such non-employee directors shall be automatic as set
forth in this Section 5(c). Upon the effective date of the offering of the
Common Shares to the public pursuant to a registration statement filed with the
Securities and Exchange Commission under the U.S. Securities Act of 1933, as
amended ("IPO") and annually thereafter on the date of each annual shareholders
meeting, subject to an annual evaluation, which evaluation shall be overseen by
the Committee, each individual who is to serve as a non-employee director of the
Company shall automatically be granted a

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Restricted Stock award with a fair market value, determined as of the date of
such annual meeting, of $25,000; provided, however, that Restricted Stock awards
granted upon the closing of the IPO shall be prorated for the period of time an
individual has served as a non-employee director of the Company in 2005. Each
Restricted Stock award granted to non-employee directors shall vest in three
equal cumulative installments on each of the first, second and third
anniversaries following the date of grant and shall have a maximum term of ten
years from the date of grant. Notwithstanding the foregoing, the unvested
portion of any such Restricted Stock award shall vest in the event the service
of a non-employee director terminates as the result of death, disability or
termination of services as a director under any retirement policies adopted by
the Board for non-employee directors. The Awards under this Section 5(c) are not
intended as the exclusive Awards that may be made to non-employee directors
under this Plan. The Board may, in its discretion, amend the Plan with respect
to the terms of the Awards herein, may add or substitute other types of Awards,
including Options and Restricted Share Units, or may temporarily or permanently
suspend Awards hereunder, all without approval of the Company's shareholders.
The Board may, in its discretion, change the dollar amounts of the fair market
value of the annual Restricted Stock award amounts from time to time; provided,
however, that no such amount shall be changed more frequently than six (6)
months after the Effective Date or after the date that the amount was previously
changed.

      6.    SPECIFIC TERMS OF AWARDS.

      (a)   GENERAL. Awards may be granted on the terms and conditions set forth
in this Section 6. Notwithstanding any provision in this Section 6 or other
provisions of the Plan to the contrary, Awards granted hereunder shall be
subject to the vesting, forfeiture

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or acceleration provisions provided in any written employment agreement between
the Company and a Participant. In addition, the Committee may impose on any
Award or the exercise thereof, at the date of grant or thereafter (subject to
Sections 10(g) and 10(m)), such additional terms and conditions, not
inconsistent with the provisions of the Plan or any written employment agreement
between the Company and a Participant, as the Committee shall determine,
including terms requiring forfeiture of Awards in the event of termination of
employment or service by the Participant and terms permitting a Participant to
make elections relating to his or her Award. The Committee shall retain full
power and discretion with respect to any term or condition of an Award that is
not mandatory under the Plan, subject to Section 10(m). The Committee shall
require the payment of lawful consideration for an Award to the extent necessary
to satisfy the requirements of the Bermuda Companies Act 1981, as amended, and
may otherwise require payment of consideration for an Award except as limited by
the Plan.

      (b)   OPTIONS. The Committee is authorized to grant Options to
Participants on the following terms and conditions:

      (i)   Exercise Price. The exercise price per share of Stock purchasable
            under an Option (including both ISOs and non-qualified Options)
            shall be determined by the Committee, provided that, notwithstanding
            anything contained herein to the contrary such exercise price shall
            be (A) fixed as of the grant date, and (B) not less than the Fair
            Market Value of a share of Stock on the grant date. Notwithstanding
            the foregoing, any substitute award granted in assumption of or in
            substitution for an outstanding award granted by a company or
            business acquired by the Company or a subsidiary or

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            affiliate, or with which the Company or a subsidiary or affiliate
            combines, may be granted with an exercise price per share of Stock
            other than as required above.

      (ii)  No Repricing. Without the approval of shareholders, the Committee
            will not amend or replace previously granted Options in a
            transaction that constitutes a "repricing," as such term is used in
            Section 303A.08 of the Listed Company Manual of the New York Stock
            Exchange (a "Repricing").

      (iii) Option Term; Time and Method of Exercise. The Committee shall
            determine the term of each Option, provided that in no event shall
            the term of any Option exceed a period of ten years from the date of
            grant. The Committee shall determine the time or times at which or
            the circumstances under which an Option may be exercised in whole or
            in part. In addition, the Committee shall determine the methods by
            which such exercise price may be paid or deemed to be paid and the
            form of such payment (subject to Sections 10(m) and 10(n)),
            including, without limitation, cash, Stock (including by withholding
            Stock deliverable upon exercise), other Awards or awards granted
            under other plans of the Company or any subsidiary or affiliate, or
            other property (including through broker-assisted "cashless
            exercise" arrangements, to the extent permitted by applicable law),
            and the methods by or forms in which Stock will be delivered or
            deemed to be delivered in satisfaction of Options to Participants.

      (iv)  ISOs. Notwithstanding anything to the contrary in this Section 6, in
            the case of the grant of an Option intending to qualify as an ISO:
            (A) if the Participant owns stock possessing more than 10 percent of
            the combined

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            voting power of all classes of stock of the Company prior to the
            application of any Bye-law provision which would reduce such
            Participant's vote (a "10% Shareholder"), the purchase price of such
            Option must be at least 110 percent of the fair market value of the
            Stock on the date of grant and the Option must expire within a
            period of not more than five (5) years from the date of grant, and
            (B) termination of employment will occur when the person to whom an
            Award was granted ceases to be an employee (as determined in
            accordance with Section 3401(c) of the Code and the regulations
            promulgated thereunder) of the Company and its subsidiaries.
            Notwithstanding anything in this Section 6 to the contrary, Options
            designated as ISOs shall not be eligible for treatment under the
            Code as ISOs to the extent that either (C) the aggregate fair market
            value of shares of Stock (determined as of the time of grant) with
            respect to which such Options are exercisable for the first time by
            the Participant during any calendar year (under all plans of the
            Company and any Subsidiary) exceeds $100,000, taking Options into
            account in the order in which they were granted, and (D) such
            Options otherwise remain exercisable but are not exercised within
            three (3) months of termination of employment (or such other period
            of time provided in Section 422 of the Code). An Award intended to
            constitute an ISO shall contain such provisions as may be required
            by the Code to meet the requirements of an ISO.

      (c)   STOCK APPRECIATION RIGHTS. The Committee is authorized to grant SARs
to Participants on the following terms and conditions:

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      (i)   Right to Payment. An SAR shall confer on the Participant to whom it
            is granted a right to receive, upon exercise thereof, shares of
            Stock having a value equal to the excess of (A) the Fair Market
            Value of one share of Stock on the date of exercise (or, in the case
            of a "Limited SAR," the Fair Market Value determined by reference to
            the Change in Control price, as defined under the applicable award
            agreement) over (B) the exercise or settlement price of the SAR as
            determined by the Committee, or a cash payment equal in value to
            such shares of Stock. Stock Appreciation Rights may be granted to
            Participants from time to time either in tandem with or as a
            component of other Awards granted under the Plan ("tandem SARs") or
            not in conjunction with other Awards ("freestanding SARs") and may,
            but need not, relate to a specific Option granted under Section
            6(b). The per share price for exercise or settlement of SARs
            (including both tandem SARs and freestanding SARs) shall be
            determined by the Committee, but in the case of SARs that are
            granted in tandem to an Option shall not be less than the exercise
            price of the Option and in the case of freestanding SARs shall be
            (A) fixed as of the grant date, and (B) not less than the Fair
            Market Value of a share of Stock on the grant date.

      (ii)  No Repricing. Without the approval of shareholders, the Committee
            will not amend or replace previously granted SARs in a transaction
            that constitutes a Repricing.

      (iii) Other Terms. The Committee shall determine the term of each SAR,
            provided that in no event shall the term of an SAR exceed a period
            of ten years from the date of grant. The Committee shall determine
            at the date of grant or thereafter, the time or times at which and
            the circumstances

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            under which a SAR may be exercised in whole or in part (including
            based on future service requirements), the method of exercise,
            method of settlement, method by or forms in which Stock will be
            delivered or deemed to be delivered to Participants, and whether or
            not a SAR shall be free-standing or in tandem or combination with
            any other Award. Limited SARs that may only be exercised in
            connection with a Change in Control or termination of service
            following a Change in Control as specified by the Committee may be
            granted on such terms, not inconsistent with this Section 6(c), as
            the Committee may determine. The Committee may require that an
            outstanding Option be exchanged for an SAR exercisable for Stock
            having vesting, expiration, and other terms substantially the same
            as the Option, so long as such exchange will not result in
            additional accounting expense to the Company.

      (d)   RESTRICTED STOCK. The Committee is authorized to grant Restricted
Stock to Participants on the following terms and conditions:

      (i)   Award and Restrictions. Subject to Section 6(d)(ii), Restricted
            Stock shall be subject to such restrictions on transferability, risk
            of forfeiture and other restrictions, if any, as the Committee may
            impose, which restrictions may lapse separately or in combination at
            such times, under such circumstances, in such installments or
            otherwise and under such other circumstances as the Committee may
            determine at the date of grant or thereafter. Except to the extent
            restricted under the terms of the Plan and any Award document
            relating to the Restricted Stock, a Participant granted Restricted
            Stock shall have all of the rights of a shareholder, including the
            right to vote the Restricted Stock and the right to receive

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            dividends thereon (subject to any mandatory reinvestment or other
            requirement imposed by the Committee).

      (ii)  Forfeiture. Except as otherwise determined by the Committee, upon
            termination of employment or service during the applicable
            restriction period, Restricted Stock that is at that time subject to
            restrictions shall be forfeited and reacquired by the Company;
            provided that the Committee may provide, by rule or regulation or in
            any Award document, or may determine in any individual case, that
            restrictions or forfeiture conditions relating to Restricted Stock
            will lapse in whole or in part, including in the event of
            terminations resulting from specified causes.

      (iii) Limitation on Vesting. The grant, issuance, retention, vesting
            and/or settlement of Restricted Stock shall occur at such time and
            in such installments as determined by the Committee or under
            criteria established by the Committee. Subject to Section 10, the
            Committee shall have the right to make the timing of the grant
            and/or the issuance, ability to retain, vesting and/or settlement of
            Restricted Stock subject to continued employment, passage of time
            and/or such performance conditions as deemed appropriate by the
            Committee; provided that unless otherwise determined by the
            Committee, the grant, issuance, retention, vesting and/or settlement
            of a Restricted Stock Award that is based in whole or in part on
            performance conditions and/or the level of achievement versus such
            performance conditions shall be subject to a performance period of
            not less than one year, and any Award based solely upon continued
            employment, service or the passage of time shall vest over a period
            not less than three years from the date the Award is made, provided
            that

                                     - 18 -
<PAGE>
            such vesting may occur ratably over the three-year period. The
            foregoing minimum vesting conditions need not apply (A) in the case
            of the death, disability or Retirement of the Participant or
            termination in connection with a Change in Control, (B) with respect
            to up to an aggregate of 5% of the shares of Stock authorized under
            the Plan, which may be granted (or regranted upon forfeiture) as
            Restricted Stock or RSUs without regard to such minimum vesting
            requirements, and (C) with respect to non-employee director awards.

      (iv)  Certificates for Stock. Restricted Stock granted under the Plan may
            be evidenced in such manner as the Committee shall determine. If
            certificates representing Restricted Stock are registered in the
            name of the Participant, the Committee may require that such
            certificates bear an appropriate legend referring to the terms,
            conditions and restrictions applicable to such Restricted Stock,
            that the Company retain physical possession of the certificates, and
            that the Participant deliver a stock power to the Company, endorsed
            in blank, relating to the Restricted Stock.

      (v)   Dividends and Splits. As a condition to the grant of an Award of
            Restricted Stock, the Committee may require that any dividends paid
            on a share of Restricted Stock shall be either (A) paid with respect
            to such Restricted Stock at the dividend payment date in cash, in
            kind, or in a number of shares of unrestricted Stock having a Fair
            Market Value equal to the amount of such dividends, or (B)
            automatically reinvested in additional Restricted Stock or held in
            kind, which shall be subject to the same terms as applied to the
            original Restricted Stock to which it relates.

                                     - 19 -
<PAGE>
            Unless otherwise determined by the Committee, Stock distributed in
            connection with a Stock split or Stock dividend, and other property
            distributed as a dividend, shall be subject to restrictions and a
            risk of forfeiture to the same extent as the Restricted Stock with
            respect to which such Stock or other property has been distributed.

      (e)   RESTRICTED STOCK UNITS. The Committee is authorized to grant RSUs to
Participants, subject to the following terms and conditions:

      (i)   Award and Restrictions. Subject to Section 6(e)(ii), RSUs shall be
            subject to such restrictions on transferability, risk of forfeiture
            and other restrictions, if any, as the Committee may impose, which
            restrictions may lapse separately or in combination at such times,
            under such circumstances (including based on achievement of
            performance conditions and/or future service requirements), in such
            installments or otherwise and under such other circumstances as the
            Committee may determine at the date of grant or thereafter. A
            Participant granted RSUs shall not have any of the rights of a
            shareholder, including the right to vote, until Stock shall have
            been issued in the Participant's name pursuant to the RSUs, except
            that the Committee may provide for dividend equivalents pursuant to
            Section 6(e)(iii) below.

      (ii)  Limitation on Vesting. The grant, issuance, retention, vesting
            and/or settlement of RSUs shall occur at such time and in such
            installments as determined by the Committee or under criteria
            established by the Committee. Subject to Section 10, the Committee
            shall have the right to make the timing of the grant and/or the
            issuance, ability to retain, vesting

                                     - 20 -
<PAGE>
            and/or settlement of RSUs subject to continued employment, passage
            of time and/or such performance conditions as deemed appropriate by
            the Committee; provided that, unless otherwise determined by the
            Committee, the grant, issuance, retention, vesting and/or settlement
            of an RSU that is based in whole or in part on performance
            conditions and/or the level of achievement versus such performance
            conditions shall be subject to a performance period of not less than
            one year, and any Award based solely upon continued employment or
            the passage of time shall vest over a period not less than three
            years from the date the Award is made, provided that such vesting
            may occur ratably over the three-year period. The foregoing minimum
            vesting conditions need not apply (A) in the case of the death,
            disability or Retirement of the Participant or termination in
            connection with a Change in Control, and (B) with respect to up to
            an aggregate of 5% of the shares of Stock authorized under the Plan,
            which may be granted (or regranted upon forfeiture) as Restricted
            Stock or RSUs without regard to such minimum vesting requirements.

      (iii) Dividend Equivalents. Unless otherwise determined by the Committee,
            dividend equivalents on the specified number of shares of Stock
            covered by an Award of RSUs shall be either (A) paid with respect to
            such RSUs at the dividend payment date in cash or in shares of
            unrestricted Stock having a Fair Market Value equal to the amount of
            such dividends, or (B) deferred with respect to such RSUs, either as
            a cash deferral or with the amount or value thereof automatically
            deemed reinvested in additional RSUs, other Awards or other
            investment vehicles having a Fair Market

                                     - 21 -
<PAGE>
            Value equal to the amount of such dividends, as the Committee shall
            determine or permit a Participant to elect.

      (f)   BONUS STOCK AND AWARDS IN LIEU OF OBLIGATIONS. The Committee is
authorized to grant Stock as a bonus, or to grant Stock or other Awards in lieu
of obligations of the Company or a subsidiary or affiliate to pay cash or
deliver other property under the Plan or under other plans or compensatory
arrangements, subject to such terms as shall be determined by the Committee.

      (g)   DIVIDEND EQUIVALENTS. The Committee is authorized to grant Dividend
Equivalents to a Participant, which may be awarded on a free-standing basis or
in connection with another Award. The Committee may provide that Dividend
Equivalents shall be paid or distributed when accrued or shall be deemed to have
been reinvested in additional Stock, Awards, or other investment vehicles, and
subject to restrictions on transferability, risks of forfeiture and such other
terms as the Committee may specify.

      (h)   OTHER STOCK-BASED AWARDS. The Committee is authorized, subject to
limitations under applicable law, to grant to Participants such other Awards
that may be denominated or payable in, valued in whole or in part by reference
to, or otherwise based on, or related to, Stock or factors that may influence
the value of Stock, including, without limitation, convertible or exchangeable
debt securities, other rights convertible or exchangeable into Stock, purchase
rights for Stock, Awards with value and payment contingent upon performance of
the Company or business units thereof or any other factors designated by the
Committee, and Awards valued by reference to the book value of Stock or the
value of securities of or the performance of specified subsidiaries or
affiliates or other business units. The Committee shall determine the terms and
conditions of such Awards. Stock delivered pursuant to an Award in the nature of
a

                                     - 22 -
<PAGE>
purchase right granted under this Section 6(h) shall be purchased for such
consideration, paid for at such times, by such methods, and in such forms,
including, without limitation, cash, Stock, other Awards, notes, or other
property, as the Committee shall determine. Cash awards, as an element of or
supplement to any other Award under the Plan, may also be granted pursuant to
this Section 6(h).

      (i)   PERFORMANCE AWARDS. Performance Awards, denominated in cash or in
Stock or other Awards, may be granted by the Committee in accordance with
Section 7.

      (j)   PHANTOM SHARES. The Committee is authorized to grant Phantom Shares,
the value of which shall be determined by reference to a share of Stock, on the
terms and conditions set forth in the Plan and on such other terms and
conditions as are not inconsistent with the purposes and provisions of the Plan
as the Committee, in its sole discretion, may from time to time determine,
including the satisfaction of any performance goal requirements that may be
established by the Committee; provided, however, that the Phantom Shares granted
under the Plan shall be subject to the following:

      (i)   Surrender. Each Award agreement with respect to a Phantom Share
shall specify the date on which the Phantom Share shall be surrendered, and
thereby cancelled by delivery of an actual share of Stock or, in the discretion
of the Committee, by the payment of cash (or a combination of cash and Stock) in
an amount equal to one hundred percent (100%) of the Fair Market Value of a
share of Stock on the date of surrender, subject to such terms and conditions as
the Committee may specify, in its sole discretion, in the applicable Award
agreement or thereafter. A Participant shall not have the right to require that
payment be made by delivery of Stock. The date on which the Phantom Shares shall
be surrendered may be accelerated upon the occurrence of

                                     - 23 -
<PAGE>
certain events, as determined by the Committee in its sole discretion and as set
forth in the applicable Award agreement.

      (ii)  Dividends and Distributions. Payments of Dividend Equivalents may be
made to Participants who have been awarded Phantom Shares. Such payments of
Dividend Equivalents may be paid directly to the Participant or may be
reinvested in additional Phantom Shares, as determined by the Committee in its
sole discretion.

      (iii) Limitation on Payment. The Committee may, in its sole discretion,
establish and set forth in the Award agreement, a maximum dollar amount payable
under the Plan for each Phantom Share granted pursuant to such Award agreement.

      (iv)  Participant's Termination. Except as otherwise determined by the
Committee at the time of grant, upon termination of employment or service for
any reason, the date of surrender of Phantom Shares shall be accelerated and the
Phantom Shares shall be automatically and immediately surrendered and cancelled
by delivery of shares of Stock, or by the payment of cash (or a combination of
cash and Stock) in an amount equal to one hundred percent (100%) of the Fair
Market Value of a share of Stock on the date of surrender, as of the date of
such termination to the extent vested.

      7.    PERFORMANCE-BASED COMPENSATION.

      (a)   PERFORMANCE AWARDS GENERALLY. Performance Awards may be denominated
as a cash amount, number of shares of Stock, or specified number of other Awards
(or a combination) which may be earned upon achievement or satisfaction of
performance conditions specified by the Committee. In addition, the Committee
may specify that any other Award shall constitute a Performance Award by
conditioning the right of a Participant to exercise the Award or have it
settled, and the timing thereof,

                                     - 24 -
<PAGE>
upon achievement or satisfaction of such performance conditions as may be
specified by the Committee. The Committee may use such business criteria and
other measures of performance as it may deem appropriate in establishing any
performance conditions, and may exercise its discretion to reduce or increase
the amounts payable under any Award subject to performance conditions, except as
limited under Sections 7(b) and 7(c) in the case of a Performance Award intended
to qualify as "performance-based compensation" under Section 162(m).

      (b)   PERFORMANCE AWARDS GRANTED TO COVERED EMPLOYEES. If the Committee
determines that a Performance Award to be granted to an Eligible Person who is
designated by the Committee as likely to be a Covered Employee should qualify as
"performance-based compensation" for purposes of Section 162(m), the grant,
exercise and/or settlement of such Performance Award shall be contingent upon
achievement of a pre-established performance goal and other terms set forth in
this Section 7(b).

      (i)   Performance Goal Generally. The performance goal for such
            Performance Awards shall consist of one or more business criteria
            and a targeted level or levels of performance with respect to each
            of such criteria, as specified by the Committee consistent with this
            Section 7(b). The performance goal shall be objective and shall
            otherwise meet the requirements of Code Section 162(m) and
            regulations thereunder, including the requirement that the level or
            levels of performance targeted by the Committee result in the
            achievement of performance goals being "substantially uncertain."
            The Committee may determine that such Performance Awards shall be
            granted, exercised and/or settled upon achievement of any one
            performance goal or that two or more of the

                                     - 25 -
<PAGE>
            performance goals must be achieved as a condition to grant, exercise
            and/or settlement of such Performance Awards. Performance goals may
            differ for Performance Awards granted to any one Participant or to
            different Participants.

      (ii)  Business Criteria. For purposes of this Plan, a "performance goal"
            shall mean any one or more of the following business criteria, in
            each case as specified by the Committee: (1) total revenue, premiums
            collected, new annualized premiums, and investment income, (2) any
            earnings or net income measure, including earnings from operations,
            earnings before taxes, earnings before interest and/or taxes and/or
            depreciation, statutory earnings before realized gains (losses), or
            net income available to common shareholders, (3) operating earnings
            per common share (either basic or diluted); (4) return on assets,
            return on investment, return on capital, return on equity, or return
            on tangible equity; (5) economic value created; (6) operating margin
            or profit margin; (7) stock price or total shareholder return; and
            (8) strategic business criteria, consisting of one or more
            objectives based on meeting specified market penetration, total
            market capitalization, business retention, new product generation,
            geographic business expansion goals, cost targets (including cost of
            capital), customer satisfaction, employee satisfaction, management
            of employment practices and employee benefits, supervision of
            litigation and information technology, and goals relating to
            acquisitions or divestitures of subsidiaries, affiliates or joint
            ventures. The targeted level or levels of performance with respect
            to such business criteria may be established at such levels and in
            such terms as the Committee may determine, in its

                                     - 26 -
<PAGE>
            discretion, including in absolute terms, on a per share basis
            (either basic or diluted), as a goal relative to performance in
            prior periods, or as a goal compared to the performance of one or
            more comparable companies or an index covering multiple companies.

      (iii) Performance Period; Timing for Establishing Performance Goals.
            Achievement of performance goals in respect of such Performance
            Awards shall be measured over a performance period of up to one year
            or more than one year, as specified by the Committee. A performance
            goal shall be established not later than the earlier of (A) 90 days
            after the beginning of any performance period applicable to such
            Performance Award or (B) the time 25% of such performance period has
            elapsed.

      (iv)  Performance Award Pool. The Committee may establish a Performance
            Award pool, which shall be an unfunded pool, for purposes of
            measuring performance of the Company in connection with Performance
            Awards. The amount of such Performance Award pool shall be based
            upon the achievement of a performance goal or goals based on one or
            more of the business criteria set forth in Section 7(b)(ii) during
            the given performance period, as specified by the Committee in
            accordance with Section 7(b)(iv). The Committee may specify the
            amount of the Performance Award pool as a percentage of any of such
            business criteria, a percentage thereof in excess of a threshold
            amount, or as another amount which need not bear a strictly
            mathematical relationship to such business criteria.

      (v)   Settlement of Performance Awards; Other Terms. Settlement of
            Performance Awards shall be in cash, Stock, other Awards or other

                                     - 27 -
<PAGE>
            property, in the discretion of the Committee. The Committee may, in
            its discretion, increase or reduce the amount of a settlement
            otherwise to be made in connection with such Performance Awards, but
            may not exercise discretion to increase any such amount payable to a
            Covered Employee in respect of a Performance Award subject to this
            Section 7(b). Any settlement which changes the form of payment from
            that originally specified shall be implemented in a manner such that
            the Performance Award and other related Awards do not, solely for
            that reason, fail to qualify as "performance-based compensation" for
            purposes of Section 162(m). The Committee shall specify the
            circumstances in which such Performance Awards shall be paid or
            forfeited in the event of termination of employment by the
            Participant or other event (including a Change in Control) prior to
            the end of a performance period or settlement of such Performance
            Awards.

      (vi)  Recapture Rights. If at any time after the date on which a
            Participant has been granted or becomes vested in an Award pursuant
            to the achievement of a performance goal under Section 7, the
            Committee determines that the earlier determination as to the
            achievement of the performance goal was based on incorrect data and
            that in fact the performance goal had not been achieved or had been
            achieved to a lesser extent than originally determined and a portion
            of an Award would not have been granted, vested or paid, given the
            correct data, then (A) such portion of the Award that was granted
            shall be forfeited and any related shares (or if such shares were
            disposed of the cash equivalent) shall be returned to the Company as
            provided by the Committee, (B) such

                                     - 28 -
<PAGE>
            portion of the Award that became vested shall be deemed to be not
            vested and any related shares (or if such shares were disposed of
            the cash equivalent) shall be returned to the Company as provided by
            the Committee, and (C) such portion of the Award paid to the
            Participant shall be paid by the Participant to the Company upon
            notice from the Company as provided by the Committee.

      (c)   WRITTEN DETERMINATIONS. Determinations by the Committee as to the
establishment of performance goals, the amount potentially payable in respect of
Performance Awards, and the level of actual achievement of the specified
performance goals shall be recorded in writing in the case of Performance Awards
intended to qualify under Section 162(m). Specifically, the Committee shall
certify in writing, in a manner conforming to applicable regulations under
Section 162(m), prior to settlement of each such Award granted to a Covered
Employee, that the performance objective relating to the Performance Award and
other material terms of the Award upon which settlement of the Award was
conditioned have been satisfied.

      8.    CERTAIN PROVISIONS APPLICABLE TO AWARDS.

      (a)   STAND-ALONE, ADDITIONAL, TANDEM, AND SUBSTITUTE AWARDS. Awards
granted under the Plan may, in the discretion of the Committee, be granted
either alone or in addition to, in tandem with, or in substitution or exchange
for, any other Award or any award granted under another plan of the Company, any
subsidiary or affiliate, or any business entity to be acquired by the Company or
a subsidiary or affiliate, or any other right of a Participant to receive
payment from the Company or any subsidiary or affiliate; provided, however, that
a 409A Award may not be granted in tandem with a Non-409A Award. Awards granted
in addition to or in tandem with other Awards or awards may be

                                     - 29 -
<PAGE>
granted either as of the same time as or a different time from the grant of such
other Awards or awards. Subject to Sections 10(m) and (n), the Committee may
determine that, in granting a new Award, the in-the-money value or fair value of
any surrendered Award or award or the value of any other right to payment
surrendered by the Participant may be applied to reduce the exercise price of
any Option, grant price of any SAR, or purchase price of any other Award.

      (b)   TERM OF AWARDS. The term of each Award shall be for such period as
may be determined by the Committee, subject to the express limitations set forth
in the Plan.

      (c)   FORM AND TIMING OF PAYMENT UNDER AWARDS; DEFERRALS. Subject to the
terms of the Plan (including Sections 10(m) and (n)) and any applicable Award
document, payments to be made by the Company or a subsidiary or affiliate upon
the exercise of an Option or other Award or settlement of an Award may be made
in such forms as the Committee shall determine, including, without limitation,
cash, Stock, other Awards or other property, and may be made in a single payment
or transfer, in installments, or on a deferred basis. The settlement of any
Award may be accelerated, and cash paid in lieu of Stock in connection with such
settlement, in the discretion of the Committee or upon occurrence of one or more
specified events, subject to Sections 10(m) and (n). Subject to Section 10(m),
installment or deferred payments may be required by the Committee (subject to
Section 10(g)) or permitted at the election of the Participant on terms and
conditions established by the Committee. Payments may include, without
limitation, provisions for the payment or crediting of reasonable interest on
installment or deferred payments or the grant or crediting of Dividend
Equivalents or other amounts in respect of installment or deferred payments
denominated in Stock. In the case of any 409A Award that is vested and no longer
subject to a risk of forfeiture

                                     - 30 -
<PAGE>
(within the meaning of Code Section 83), such Award will be distributed to the
Participant, upon application of the Participant, if the Participant has had an
unforeseeable emergency within the meaning of Code Sections 409A(a)(2)(A)(vi)
and 409A(a)(2)(B)(ii), in accordance with Section 409A(a)(2)(B)(ii).

      (d)   LIMITATION ON VESTING OF CERTAIN AWARDS. Subject to Section 8,
unless otherwise determined by the Committee, Restricted Stock will vest over a
minimum period of three years except in the event of a Participant's death,
disability, or Retirement, or in the event of a Change in Control or other
special circumstances. The foregoing notwithstanding, (i) Restricted Stock as to
which either the grant or vesting is based on, among other things, the
achievement of one or more performance conditions generally will vest over a
minimum period of one year except in the event of a Participant's death,
disability, or Retirement, or in the event of a Change in Control or other
special circumstances, and (ii) up to 5% of the shares of Stock authorized under
the Plan may be granted as Restricted Stock without any minimum vesting
requirements. For purposes of this Section 8(d), (i) a performance period that
precedes the grant of the Restricted Stock will be treated as part of the
vesting period if the Participant has been notified promptly after the
commencement of the performance period that he or she has the opportunity to
earn the Award based on performance and continued service, and (ii) vesting over
a three-year period or one-year period will include periodic vesting over such
period if the rate of such vesting is proportional (or less rapid) throughout
such period.

      (e)   CASH SETTLEMENT OF AWARDS. To the extent permitted by the Committee
at the time of grant or thereafter, the Company may deliver cash in full or
partial satisfaction, payment and/or settlement upon exercise, cancellation,
forfeiture or surrender of any Award.

                                     - 31 -
<PAGE>
      9.    CHANGE IN CONTROL. The Committee may set forth in any Award
agreement the effect, if any, that a Change in Control or other, similar
transaction shall have on any awards granted under this Plan.

      10.   GENERAL PROVISIONS.

      (a)   COMPLIANCE WITH LEGAL AND OTHER REQUIREMENTS. The Company may, to
the extent deemed necessary or advisable by the Committee and subject to Section
10(m), postpone the issuance or delivery of Stock or payment of other benefits
under any Award until completion of such registration or qualification of such
Stock or other required action under any federal or state law, rule or
regulation, listing or other required action with respect to any stock exchange
or automated quotation system upon which the Stock or other securities of the
Company are listed or quoted, or compliance with any other obligation of the
Company, as the Committee may consider appropriate, and may require any
Participant to make such representations, furnish such information and comply
with or be subject to such other conditions as it may consider appropriate in
connection with the issuance or delivery of Stock or payment of other benefits
in compliance with applicable laws, rules, and regulations, listing
requirements, or other obligations.

      (b)   LIMITS ON TRANSFERABILITY; BENEFICIARIES. Unless otherwise
determined by the Committee, no Award or other right or interest of a
Participant under the Plan shall be pledged, hypothecated or otherwise
encumbered or subject to any lien, obligation or liability of such Participant
to any party (other than the Company or a subsidiary or affiliate thereof), or
assigned or transferred by such Participant otherwise than by will or the laws
of descent and distribution or to a Beneficiary upon the Participant's death,
and such Awards or rights that may be exercisable shall be

                                     - 32 -
<PAGE>
exercised during the lifetime of the Participant only by the Participant or his
or her guardian or legal representative. A Beneficiary, transferee, or other
person claiming any rights under the Plan from or through any Participant shall
be subject to all terms and conditions of the Plan and any Award document
applicable to such Participant, except as otherwise determined by the Committee,
and to any additional terms and conditions deemed necessary or appropriate by
the Committee.

      (c)   ADJUSTMENTS. In the event that any large, special and non-recurring
dividend or other distribution (whether in the form of cash or property other
than Stock), recapitalization, forward or reverse split, Stock dividend,
reorganization, merger, consolidation, amalgamation, spin-off, combination,
repurchase, share exchange, liquidation, dissolution or other similar corporate
transaction or event affects the Stock such that an adjustment is determined by
the Committee to be appropriate, then the Committee shall, in an equitable
manner as determined by the Committee, adjust any or all of (i) the number and
kind of shares of Stock or other securities of the Company or other issuer which
are subject to the Plan, (ii) the number and kind of shares of Stock or other
securities of the Company or other issuer by which annual per-person Award
limitations are measured under Section 5, including the share limits applicable
to non-employee director Awards under Section 5(c), (iii) the number and kind of
shares of Stock or other securities of the Company or other issuer subject to or
deliverable in respect of outstanding Awards and (iv) the exercise price,
settlement price or purchase price relating to any Award or, if deemed
appropriate, the Committee may make provision for a payment of cash or property
to the holder of an outstanding Option (subject to Section 10(n)) or other
Award. In addition, the Committee is authorized to make adjustments in the terms
and conditions of, and the criteria included in, Awards (including
performance-based Awards and performance goals and any hypothetical

                                     - 33 -
<PAGE>
funding pool relating thereto) in recognition of unusual or nonrecurring events
(including, without limitation, events described in the preceding sentence, as
well as acquisitions and dispositions of businesses and assets, or in response
to changes in applicable laws, regulations, or accounting principles) affecting
any performance conditions; provided that no such adjustment shall be authorized
or made if and to the extent that the existence of such authority (i) would
cause Options, SARs, or Performance Awards granted under the Plan to
Participants designated by the Committee as Covered Employees and intended to
qualify as "performance-based compensation" under Code Section 162(m) and
regulations thereunder to otherwise fail to qualify as "performance-based
compensation" under Code Section 162(m) and regulations thereunder, or (ii)
would cause the Committee to be deemed to have authority to change the targets,
within the meaning of Treasury Regulation 1.162-27(e)(4)(vi), under the
performance goals relating to Options or SARs granted to Covered Employees and
intended to qualify as "performance-based compensation" under Code Section
162(m) and regulations thereunder.

      (d)   MERGER, CONSOLIDATION, AMALGAMATION OR CHANGE IN CONTROL OF COMPANY.
Upon (i) the merger, consolidation or amalgamation of the Company with or into
another corporation (pursuant to which the shareholders of the Company
immediately prior to such merger, consolidation or amalgamation will not, as of
the date of such merger, consolidation or amalgamation, own a beneficial
interest in shares of voting securities of the corporation surviving such
merger, consolidation or amalgamation having at least a majority of the combined
voting power of such corporation's then outstanding securities), (ii) the
dissolution, liquidation, or sale of all or substantially all the assets of the
Company, or (iii) the Change in Control of the Company (a "Reorganization
Event"), then, at the sole discretion of the Board and to the

                                     - 34 -
<PAGE>
extent permitted by applicable laws, rules and regulations, listing requirements
or other obligations, and except as otherwise provided in an Award agreement or
a written employment agreement by and between the Company and the Participant,
(i) the Awards shall be assumed, or substantially equivalent Awards shall be
substituted, by the acquiring or succeeding corporation (or an affiliate
thereof), (ii) upon written notice to a Participant, the Participant's
unexercised Options and SARs shall become exercisable or vested in full and will
terminate immediately prior to the consummation of such Reorganization Event
unless exercised by the Participant within a specified period following the date
of such notice, (iii) the Awards shall become realizable or deliverable, or
restrictions applicable to an Award shall lapse, in whole or in part prior to or
upon such Reorganization Event, (iv) in the event of a Reorganization Event
under the terms of which holders of Stock shall receive upon consummation
thereof a cash payment for each share surrendered in the Reorganization Event
(the "Acquisition Price"), a cash payment shall be made or provided to a
Participant equal to (A) the Acquisition Price times the number of shares of
Stock subject to the Participant's Awards (to the extent the exercise price does
not exceed the Acquisition Price) minus (B) the aggregate exercise price of all
such outstanding Awards, in exchange for the termination of such Awards, (v) in
connection with a liquidation or dissolution of the Company, Awards shall
convert into the right to receive liquidation proceeds (if applicable, net of
the exercise price thereof) or (vi) the Board shall provide for any combination
of the foregoing.

      (e)   LIMITATION ON CHANGE IN CONTROL PAYMENTS. Notwithstanding anything
in this Section 10 of the Plan to the contrary and except as may be otherwise
provided in an employment or other agreement between the Company and a
Participant, in the event that it is determined (as hereinafter provided) that
any payment or distribution by the Company or any of its affiliates or any other
person in connection with the Change in

                                     - 35 -
<PAGE>
Control of the Company or Reorganization Event to, or for the benefit of, a
Participant, whether paid or payable or distributed or distributable pursuant to
the terms of the Plan or an Award agreement, or otherwise pursuant to or by
reason of any other agreement, policy, plan, program or arrangement, including
without limitation any Award, or the lapse or termination of any restriction on,
or the vesting or exercisability of, any Award (a "Payment"), would be subject
to the excise tax imposed by Section 4999 of the Code (or any successor
provision thereto) or to any similar tax imposed by state, local or foreign law,
or any interest or penalties with respect to such tax (such tax or taxes,
together with any such interest and penalties, being hereafter collectively
referred to as the "Excise Tax"), and the Participant would receive a greater
net after-tax amount (taking into account all applicable taxes payable by the
Participant, including any excise tax under Section 4999 of the Code) by
applying the limitation contained in this Section 10(e), then the Payments to
the Participant hereunder plus any other amounts treated as "change of control
payments" under Section 280G of the Code, shall be reduced (but not below zero)
to the maximum amount which may be paid hereunder without the Participant
becoming subject to such an excise tax under Section 4999 of the Code (such
reduced payments to be referred to as the "Payment Cap"). In the event that the
Participant receives reduced payments and benefits hereunder, the Participant
shall have the right to designate which of the payments and benefits otherwise
provided for hereunder that he or she will receive in connection with the
application of the Payment Cap.

      (f)   TAX PROVISIONS.

      (i)   Withholding. The Company and any subsidiary or affiliate is
            authorized to withhold from any Award granted, any payment relating
            to an Award under the Plan, including from a distribution of Stock,
            or any payroll or other payment to a Participant, amounts of
            withholding and other taxes

                                     - 36 -
<PAGE>
            due or potentially payable in connection with any transaction or
            event involving an Award, or to require a Participant to remit to
            the Company an amount in cash or other property (including Stock) to
            satisfy such withholding before taking any action with respect to an
            Award, and to take such other action as the Committee may deem
            advisable to enable the Company and Participants to satisfy minimum
            obligations for the payment of withholding taxes and other tax
            obligations relating to any Award. This authority shall include
            authority to withhold or receive Stock or other property and to make
            cash payments in respect thereof in satisfaction of a Participant's
            minimum withholding obligations, either on a mandatory or elective
            basis in the discretion of the Committee, or in satisfaction of
            other tax obligations. The Company can delay the delivery to a
            Participant of Stock under any Award to the extent necessary to
            allow the Company to determine the amount of withholding to be
            collected and to collect and process such withholding.

      (ii)  Required Consent to and Notification of Code Section 83(b) Election.
            No election under Section 83(b) of the Code (to include in gross
            income in the year of transfer the amounts specified in Code Section
            83(b)) or under a similar provision of the laws of a jurisdiction
            outside the United States may be made unless expressly permitted by
            the terms of the Award document or by action of the Committee in
            writing prior to the making of such election. In any case in which a
            Participant is permitted to make such an election in connection with
            an Award, the Participant shall notify the Company of such election
            within ten days of filing notice of the election with the Internal
            Revenue Service or other governmental

                                     - 37 -
<PAGE>
            authority, in addition to any filing and notification required
            pursuant to regulations issued under Code Section 83(b) or other
            applicable provision.

      (iii) Requirement of Notification Upon Disqualifying Disposition Under
            Code Section 421(b). If any Participant shall make any disposition
            of shares of Stock delivered pursuant to the exercise of an ISO
            under the circumstances described in Code Section 421(b) (i.e., a
            disqualifying disposition), such Participant shall notify the
            Company of such disposition within ten days thereof.

      (g)   CHANGES TO THE PLAN. Subject to the rules and regulations of The
Nasdaq Stock Market, Inc. that apply to the Company, the Board may amend,
suspend or terminate the Plan or the Committee's authority to grant Awards under
the Plan without the consent of shareholders or Participants; provided, however,
that any amendment to the Plan requiring shareholder approval shall be submitted
to the Company's shareholders for approval not later than the earliest annual
meeting for which the record date is at or after the date of such Board action:

      (i)   if such shareholder approval is required by any federal or state law
            or regulation or the rules of The Nasdaq Stock Market, Inc. or any
            other stock exchange or automated quotation system on which the
            Stock may then be listed or quoted; or

      (ii)  if such amendment would materially increase the number of shares
            reserved for issuance and delivery under the Plan; or

                                     - 38 -
<PAGE>
      (iii) if such amendment would alter the provisions of the Plan restricting
            the Company's ability to grant Options or SARs with an exercise
            price that is not less than the Fair Market Value of Stock; or

      (iv)  in connection with any action to amend or replace previously granted
            Options or SARs in a transaction that constitutes a Repricing.

The Board may otherwise, in its discretion, and subject to the rules and
regulations of The Nasdaq Stock Market, Inc. that apply to the Company,
determine to submit other amendments to the Plan to shareholders for approval;
and provided further, that, without the consent of an affected Participant, no
such Board (or any Committee) action may materially and adversely affect the
rights of such Participant under any outstanding Award (for this purpose,
actions that alter the timing of federal income taxation of a Participant will
not be deemed material unless such action results in an income tax penalty on
the Participant). With regard to other terms of Awards, the Committee shall have
no authority to waive or modify any such Award term after the Award has been
granted to the extent the waived or modified term would be mandatory under the
Plan for any Award newly granted at the date of the waiver or modification.

      (h)   RIGHT OF SETOFF. The Company or any subsidiary or affiliate may, to
the extent permitted by applicable law, deduct from and set off against any
amounts the Company or a subsidiary or affiliate may owe to the Participant from
time to time (including amounts payable in connection with any Award, owed as
wages, fringe benefits, or other compensation owed to the Participant), such
amounts as may be owed by the Participant to the Company, including but not
limited to amounts owed under Section 10(a), although the Participant shall
remain liable for any part of the Participant's payment obligation not satisfied
through such deduction and setoff. By accepting any

                                     - 39 -
<PAGE>
Award granted hereunder, the Participant agrees to any deduction or setoff
under this Section 10(h).

      (i)   UNFUNDED STATUS OF AWARDS; CREATION OF TRUSTS. To the extent that
any Award is deferred compensation, the Plan is intended to constitute an
"unfunded" plan for deferred compensation with respect to such Award. With
respect to any payments not yet made to a Participant or obligation to deliver
Stock pursuant to an Award, nothing contained in the Plan or any Award shall
give any such Participant any rights that are greater than those of a general
creditor of the Company; provided that the Committee may authorize the creation
of trusts and deposit therein cash, Stock, other Awards or other property, or
make other arrangements to meet the Company's obligations under the Plan. Such
trusts or other arrangements shall be consistent with the "unfunded" status of
the Plan unless the Committee otherwise determines with the consent of each
affected Participant.

      (j)   NONEXCLUSIVITY OF THE PLAN. Neither the adoption of the Plan by the
Board or the Committee nor its submission to the shareholders of the Company for
approval shall be construed as creating any limitations on the power of the
Board or a committee thereof to adopt such other incentive arrangements, apart
from the Plan, as it may deem desirable, including incentive arrangements and
awards which do not qualify under Code Section 162(m), and such other
arrangements may be either applicable generally or only in specific cases.

      (k)   PAYMENTS IN THE EVENT OF FORFEITURES; FRACTIONAL SHARES. No
fractional shares of Stock shall be issued or delivered pursuant to the Plan or
any Award. The Committee shall determine whether cash, other Awards or other
property

                                     - 40 -
<PAGE>
shall be issued or paid in lieu of such fractional shares or whether such
fractional shares or any rights thereto shall be forfeited or otherwise
eliminated.

      (l)   COMPLIANCE WITH CODE SECTION 162(m). It is the intent of the Company
that Options and SARs granted to Covered Employees and other Awards designated
as Awards to Covered Employees subject to Section 7 shall constitute qualified
"performance-based compensation" within the meaning of Code Section 162(m) and
regulations thereunder, unless otherwise determined by the Committee at the time
of allocation of an Award. Accordingly, the terms of Sections 7(b) and (c),
including the definitions of Covered Employee and other terms used therein,
shall be interpreted in a manner consistent with Code Section 162(m) and
regulations thereunder. The foregoing notwithstanding, because the Committee
cannot determine with certainty whether a given Participant will be a Covered
Employee with respect to a fiscal year that has not yet been completed, the term
Covered Employee as used herein shall mean only a person designated by the
Committee as likely to be a Covered Employee with respect to a specified fiscal
year. If any provision of the Plan or any Award document relating to a
Performance Award that is designated as intended to comply with Code Section
162(m) does not comply or is inconsistent with the requirements of Code Section
162(m) or regulations thereunder, such provision shall be construed or deemed
amended to the extent necessary to conform to such requirements, and no
provision shall be deemed to confer upon the Committee or any other person
discretion to increase the amount of compensation otherwise payable in
connection with any such Award upon attainment of the applicable performance
objectives.

      (m)   CERTAIN LIMITATIONS ON AWARDS TO ENSURE COMPLIANCE WITH CODE SECTION
409A. For purposes of this Plan, references to an award term or event (including
any authority or right of the Company or a Participant) being "permitted" under

                                     - 41 -
<PAGE>
Section 409A mean, for a 409A Award, that the term or event will not cause the
Participant to be liable for payment of interest or a tax penalty under Section
409A and, for a Non-409A Award, that the term or event will not cause the Award
to be treated as subject to Section 409A. Other provisions of the Plan
notwithstanding, the terms of any 409A Award and any Non-409A Award, including
any authority of the Company and rights of the Participant with respect to the
Award, shall be limited to those terms permitted under Section 409A, and any
terms not permitted under Section 409A shall be automatically modified and
limited to the extent necessary to conform with Section 409A. For this purpose,
other provisions of the Plan notwithstanding, the Company shall have no
authority to accelerate distributions relating to 409A Awards in excess of the
authority permitted under Section 409A, and any distribution subject to Section
409A(a)(2)(A)(i) (separation from service) to a "key employee" as defined under
Section 409A(a)(2)(B)(i), shall not occur earlier than the earliest time
permitted under Section 409A(a)(2)(B)(i). A Participant shall be solely
responsible for any adverse tax consequences or penalties that may arise in
connection with an Award under Section 409A.

      (n)   CERTAIN LIMITATIONS RELATING TO ACCOUNTING TREATMENT OF AWARDS.
Other provisions of the Plan notwithstanding, the Committee's authority under
the Plan (including under Sections 8(c), 10(c) and 10(f)) is limited to the
extent necessary to ensure that any Option or other Award of a type that the
Committee has intended to be subject to fixed accounting with a measurement date
at the date of grant or the date performance conditions are satisfied under APB
25 shall not become subject to "variable" accounting solely due to the existence
of such authority, unless the Committee specifically determines that the Award
shall remain outstanding despite such "variable" accounting.

                                     - 42 -
<PAGE>
      (o)   GOVERNING LAW. The validity, construction, and effect of the Plan,
any rules and regulations relating to the Plan, and any Award document and
related agreement shall be governed and construed in accordance with the laws of
Bermuda, without giving effect to principles of conflicts of laws, and the
parties hereto submit to the non-exclusive jurisdiction of the courts of Bermuda
in respect of matters arising hereunder.

      (p)   AWARDS TO PARTICIPANTS OUTSIDE THE UNITED STATES. The Committee may
modify the terms of any Award under the Plan or may adopt a sub-plan or annex
containing rules and regulations with respect to an Award made to or held by a
Participant who is then resident or primarily employed outside of the United
States in any manner deemed by the Committee to be necessary or appropriate in
order that such Award shall conform to laws, regulations, and customs of the
country in which the Participant is then resident or primarily employed, or so
that the value and other benefits of the Award to the Participant, as affected
by foreign tax laws and other restrictions applicable as a result of the
Participant's residence or employment abroad shall be comparable to the value of
such an Award to a Participant who is resident or primarily employed in the
United States. An Award may be modified under this Section 10(p) in a manner
that is inconsistent with the express terms of the Plan, so long as such
modifications will not contravene any applicable law or regulation or result in
actual liability under Section 16(b) for the Participant whose Award is
modified.

      (q)   LIMITATION ON RIGHTS CONFERRED UNDER PLAN. Neither the Plan nor any
action taken hereunder shall be construed as (i) giving any Eligible Person or
Participant the right to continue as an Eligible Person or Participant or in the
employ or service of the Company or a subsidiary or affiliate, (ii) interfering
in any way with the right of the Company or a subsidiary or affiliate to
terminate any Eligible Person's or Participant's

                                     - 43 -
<PAGE>
employment or service at any time (subject to the terms and provisions of any
separate written agreements), (iii) giving an Eligible Person or Participant any
claim to be granted any Award under the Plan or to be treated uniformly with
other Participants and employees, or (iv) conferring on a Participant any of the
rights of a shareholder of the Company unless and until the Participant is duly
issued or transferred shares of Stock in accordance with the terms of an Award
or an Option is duly exercised. Except as expressly provided in the Plan and an
Award document, neither the Plan nor any Award document shall confer on any
person other than the Company and the Participant any rights or remedies
thereunder.

      (r)   SEVERABILITY; ENTIRE AGREEMENT. If any of the provisions of the Plan
or any Award document is finally held to be invalid, illegal or unenforceable
(whether in whole or in part), such provision shall be deemed modified to the
extent, but only to the extent, of such invalidity, illegality or
unenforceability, and the remaining provisions shall not be affected thereby;
provided, that, if any of such provisions is finally held to be invalid,
illegal, or unenforceable because it exceeds the maximum scope determined to be
acceptable to permit such provision to be enforceable, such provision shall be
deemed to be modified to the minimum extent necessary to modify such scope in
order to make such provision enforceable hereunder. The Plan and any agreements
or documents designated by the Committee as setting forth the terms of an Award
contain the entire agreement of the parties with respect to the subject matter
thereof and supersede all prior agreements, promises, covenants, arrangements,
communications, representations and warranties between them, whether written or
oral with respect to the subject matter thereof.

      (s)   PLAN EFFECTIVE DATE AND TERMINATION. The Plan shall become effective
if, and at such time as, the shareholders of the Company have approved it in
accordance

                                     - 44 -
<PAGE>
with applicable law and stock exchange requirements. Unless earlier terminated
by action of the Board of Directors in accordance with the rules and regulations
of The Nasdaq Stock Market, Inc. that apply to the Company, the authority of the
Committee to make grants under the Plan shall terminate on the date that is ten
years after the latest date upon which shareholders of the Company have approved
the Plan, and the Plan will remain in effect until such time as no Stock remains
available for delivery under the Plan or as set forth above and the Company has
no further rights or obligations under the Plan with respect to outstanding
Awards under the Plan.

                                     - 45 -<PAGE>
                                                                Exhibit 10.14

                          TAX INDEMNIFICATION AGREEMENT

     This Tax Indemnification Agreement is entered into as of December 7, 2005
(this "Agreement") by and among:

     (i) Compensation Risk Managers, LLC, a New York limited liability company
("CRM");

     (ii) Compensation Risk Managers of California, LLC, a California limited
liability company and a wholly-owned subsidiary of CRM ("CRM CA");

     (iii) EIMAR, L.L.C., a New York limited liability company ("Eimar");

     (iv) Twin Bridges (Bermuda) Ltd., a Bermuda company ("Twin Bridges"); and

     (v) the following individuals and entity, each of whom shall be referred to
herein as an "Existing Member" and together shall be referred to as the
"Existing Members":

         Daniel G. Hickey, Sr.;
         Daniel G. Hickey, Jr.;
         Martin D. Rakoff;
         Anthony Bottini, Jr.;
         Mark Bottini;
         Brian L. Bottini, Sr.;
         Louis J. Viglotti;
         Dominick Diaferia;
         David M. Birsner; and
         Village Holdings, LLC
         ("Village Holdings").

     CRM, CRM CA, Eimar, Twin Bridges and each of the Existing Members are
individually referred to herein as a "Party" and collectively as the "Parties."

                                    RECITALS

     WHEREAS, each of CRM and Eimar is a limited liability company which is
treated as a partnership for US federal income tax purposes; and,

     WHEREAS, the income of each of CRM and Eimar is taxable, on a current
basis, to those Existing Members that hold interests therein, directly or
indirectly, regardless of whether such income has actually been distributed;
and,

     WHEREAS, it has been the historic business practice of each of CRM and
Eimar to distribute to those Existing Members that hold interests therein,
directly or indirectly, all amounts taxable to those Existing Members; and,

<PAGE>
     WHEREAS, Twin Bridges is a controlled foreign corporation for US federal
tax purposes; and,

     WHEREAS, a proportionate share of the income of Twin Bridges is taxable to
its 10 percent or greater US shareholders regardless of whether it is
distributed; and,

     WHEREAS, it has been the historic business practice of the Parties that an
amount equal to the income of Twin Bridges be distributed proportionately to
Twin Bridges' shareholders, either directly or indirectly by a distribution to
the Existing Members of CRM and Eimar, regardless of whether they are currently
taxable on such income, in order to maintain equity among them; and,

     WHEREAS, it has been the historic business practice of CRM CA to make
distributions to CRM to enable CRM to make such distributions to Existing
Members; and for CRM to borrow funds to make distributions when amounts
received from CRM CA were insufficient for such purposes; and,

     WHEREAS, CRM and Eimar distributed in the aggregate $1,090,077 to the
Existing Members on November 28, 2005;

     WHEREAS, the foregoing amount was equal to the aggregate income of CRM, CRM
CA, Eimar and Twin Bridges from their inception through October 31, 2005 to the
extent that it had not been previously been distributed; and,

     WHEREAS, CRM, CRM CA, Eimar and Twin Bridges have agreed to indemnify the
Existing Members for certain of their US federal income tax liabilities
attributable to these entities for the period from November 1, 2005 to the
effective date of the elections of CRM, CRM CA and Eimar to be taxed as
associations for U.S. federal income tax purposes (the "Effective Date");

     NOW, THEREFORE, in consideration of the respective representations,
warranties, covenants and agreements contained in this Agreement and other good
and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, and intending to be legally bound hereby, the Parties hereto
hereby agree as follows:

                                   ARTICLE I

                                 INDEMNIFICATION

     1.1 CRM, CRM CA, Eimar and Twin Bridges agree to make payments (the
"indemnification payments") to each of the Existing Members in an aggregate
amount equal to thirty-five percent (35%) of the excess, if any, of the
aggregate of the net income of CRM, Eimar and Twin Bridges allocable to such
Existing Member as computed for US federal tax income tax purposes over the
aggregate of the net loss of CRM, Eimar and Twin Bridges allocable to such
Existing Member as computed for US federal income tax purposes (provided,
however, that the amount of any net loss of Twin Bridges allocable to an
Existing Member shall be computed on the same basis as the net income of Twin
Bridges would have been allocated to such Existing Member), for the period from
November 1, 2005 through the Effective Date (computed with respect to CRM and
Eimar on a cash basis). The amount that each of CRM, CRM CA, Eimar and Twin
Bridges shall contribute to the indemnification payments shall be determined
through agreement among these parties taking into account Twin Bridges' need to
satisfy its solvency margin and liquidity ratio as set out in the Bermuda
Insurance Act 1978, the requirements of the Companies Act 1981 and any
contractual obligations. Such indemnification payments shall be made as soon as
practicable after the Effective Date. For purposes of this Section 1.1, payments
to Village Holdings shall be treated as indirect payments to its members.

                                       2
<PAGE>

                                   ARTICLE II

                         REPRESENTATIONS AND WARRANTIES

     2.1 Representations and Warranties of CRM, CRM CA, Eimar, Twin Bridges and
Village Holdings. In order to induce each other Party hereto to enter into this
Agreement and to consummate the transactions contemplated hereby, each of CRM,
CRM CA, Eimar, Twin Bridges and Village Holdings hereby represents, severally
and not jointly, to each other Party hereto that:

     (a) Organization. Such Party has been duly organized and is validly
existing in good standing under the laws of its jurisdiction of organization.
Such Party has the requisite power and authority to execute and deliver this
Agreement and perform its obligations under this Agreement.

     (b) Valid and Binding Obligation. This Agreement has been duly authorized,
executed and delivered by such Party and constitutes a valid and binding
obligation of such Party enforceable against such Party in accordance with its
terms.

     (c) Compliance With Applicable Laws and Other Instruments. Neither the
execution nor delivery of, nor the performance of or compliance with, this
Agreement nor the consummation of the transactions contemplated hereby will,
with or without the giving of notice or passage of time, conflict with or result
in a breach of or violation of any of the terms or provisions of, or constitute
a default under, or result in the imposition of any lien or encumbrance upon any
of its assets or properties under, any statute, indenture, mortgage, deed of
trust, loan agreement or other agreement or instrument to which such Party is a
Party or by which such Party is bound or to which any of the properties or
assets of such Party is subject, nor will any such action result in any
violation of the constituent documents of such Party, or any law, statute or any
order, rule or regulation of any federal, state, provincial, local or foreign
government, court, arbitration, agency or commission or other governmental,
regulatory, judicial or administrative body or authority, including
self-regulating organizations (each, a "Governmental Entity") having
jurisdiction over such Party or the property or assets of such Party.

     (d) No Approvals. No consent, authorization, approval, permit or order of
or filing with any Governmental Entity is required under any laws or regulations
in

                                       3
<PAGE>
connection with the execution and delivery of this Agreement by such Party or
the performance of the transactions contemplated hereby by such Party.

     2.2 Representations and Warranties of the Existing Members. In order to
induce each other Party hereto to enter into this Agreement and to consummate
the transactions contemplated hereby, each Existing Member hereby represents and
warrants, severally and not jointly, to each other Party hereto that:

     (a) Valid and Binding Obligation. This Agreement has been duly authorized,
executed and delivered by such Party and constitutes a valid and binding
obligation of such Party enforceable against such Party in accordance with its
terms.

     (b) Compliance With Applicable Laws and Other Instruments. Neither the
execution nor delivery of, nor the performance of or compliance with, this
Agreement nor the consummation of the transactions contemplated hereby will,
with or without the giving of notice or passage of time, conflict with or result
in a breach of or violation of any of the terms or provisions of, or constitute
a default under, or result in the imposition of any lien or encumbrance upon any
of its assets or properties under, any statute, indenture, mortgage, deed of
trust, loan agreement or other agreement or instrument to which such Party is a
party or by which such Party is bound or to which any of the properties or
assets of such Party is subject, nor will any such action result in any
violation of any law, statute or any order, rule or regulation of any
Governmental Entity having jurisdiction over such Party or the property or
assets of such Party. Such Party is not subject to any restriction which would
prohibit such Party from entering into or performing such Party's obligations
under this Agreement.

     (c) No Approvals. No consent, authorization, approval, permit or order of
or filing with any Governmental Entity is required under any laws or regulations
in connection with the execution and delivery of this Agreement by such Party or
the performance of the transactions contemplated hereby by such Party.

                                  ARTICLE III

                               GENERAL PROVISIONS

     3.1 Entire Agreement. This Agreement constitutes the entire agreement of
the Parties hereto with respect to the matters referred to herein and supersedes
all prior agreements and understandings, written or oral, among the Parties with
respect to the subject matter hereof.

     3.2 Further Assurances. At any time and from time to time after the date of
this Agreement, each Party hereto hereby covenants and agrees that such Party
shall execute and deliver such further agreements, assignments and other
documents and instruments, and shall take such further actions, as may be
necessary or advisable to perform such Party's obligations hereunder and to
otherwise carry out the intent and provisions of this Agreement and the
transactions contemplated hereby.

                                       4
<PAGE>
     3.3 Legal Representation; Consents. Baker & McKenzie LLP and Appleby
Spurling Hunter are representing CRM Holdings, Ltd. ("CRM Holdings") in
connection with the transactions contemplated by this Agreement. Each of the
Parties hereto specifically consents to Baker & McKenzie LLP and Appleby
Spurling Hunter representing CRM Holdings in connection with the transactions
contemplated by this Agreement and represents that such Party is relying upon
the advice of such Party's own counsel or advisers in connection with the
transactions contemplated hereby.

     3.4 Dispute Resolution. In the event of a disagreement between the Parties
regarding the amount payable under Article I to an Existing Member, such dispute
shall be settled through binding arbitration using three arbitrators. The
Existing Member shall appoint one arbitrator, the entity (or entities) from whom
payment is claimed to be due shall appoint a second arbitrator, and the two
arbitrators so appointed shall appoint a third arbitrator. All arbitrators shall
be certified public accountants. The decision of the majority of such
arbitrators shall be final.

     3.5 Governing Law. This Agreement shall be governed by and construed in
accordance with the laws of the State of New York, without regard to its
conflicts of law principles.

     3.6 Jurisdiction. Each of the Parties hereby irrevocably and
unconditionally submits to the exclusive jurisdiction of any New York State
court or federal court of the United States of America sitting in New York City,
in any action or proceeding arising out of or relating to this Agreement, or for
recognition or enforcement of any judgment with respect thereto, and each of the
Parties hereby irrevocably and unconditionally agrees that all claims in respect
of any such action or proceeding shall be heard and determined in any such
court. Each of the Parties hereby agrees that a final judgment in any such
action or proceeding shall be conclusive and may be enforced in other
jurisdictions by suit on the judgment or in any other manner provided by law.

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

     3.8 Amendment and Waiver. This Agreement may not be waived, changed,
amended, modified or terminated except by an instrument in writing signed by, or
on behalf of, all of the Parties to this Agreement. No failure or delay by any
Party in exercising any right, power or privilege hereunder shall operate as a
waiver thereof nor shall any single or partial exercise thereof preclude any
other or further exercise thereof or the exercise of any other right, power or
privilege.

     3.9 Successors and Assigns. This Agreement shall be binding upon and shall
inure to the benefit of the respective successors, permitted assigns and legal
representatives of the Parties hereto.

                                       5
<PAGE>
     3.10 No Third-Party Beneficiaries. The provisions of this Agreement shall
in no way create any third-party beneficiary rights, directly or indirectly,
under this Agreement.

     3.11 Assignment. No Party hereto may assign any of its rights or
obligations under this Agreement without the prior written consent of each of
the other Parties hereto, and any such purported assignment shall be null and
void.

     3.12 Survival. All representations, warranties, covenants and agreements
contained in this Agreement shall survive the consummation of the transactions
contemplated by this Agreement.

                [REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK]

                                       6
<PAGE>

      IN WITNESS WHEREOF, the Parties hereto have caused this Agreement to be
executed and delivered by their respective duly authorized signatories as of the
date first written above.

                                            COMPENSATION RISK MANAGERS, LLC

                                            By: /s/ Daniel G. Hickey, Jr.
                                                -------------------------
                                            Name: Daniel G. Hickey, Jr.
                                            Title: President

                        [Tax Indemnification Agreement]
<PAGE>
                                            COMPENSATION RISK MANAGERS OF
                                            CALIFORNIA, LLC

                                            By: /s/ Daniel G. Hickey, Jr.
                                                -------------------------
                                            Name: Daniel G. Hickey, Jr.
                                            Title: President

                        [Tax Indemnification Agreement]
<PAGE>
                                            EIMAR, L.L.C.

                                            By: /s/ Daniel G. Hickey, Jr.
                                                -------------------------
                                            Name: Daniel G. Hickey, Jr.
                                            Title: President

                            [Tax Indemnification Agreement]
<PAGE>
                                            TWIN BRIDGES (BERMUDA) LTD.

                                            By: /s/ Daniel G. Hickey, Jr.
                                                -------------------------
                                            Name: Daniel G. Hickey, Jr.
                                            Title: Chairman of the Board

                            [Tax Indemnification Agreement]
<PAGE>
                                            /s/ Daniel G. Hickey, Sr.
                                            ----------------------------
                                            Daniel G. Hickey, Sr.

                            [Tax Indemnification Agreement]
<PAGE>
                                            /s/ Daniel G. Hickey, Jr.
                                            ----------------------------
                                            Daniel G. Hickey, Jr.

                            [Tax Indemnification Agreement]
<PAGE>
                                            /s/ Martin D. Rakoff
                                            ----------------------------
                                            Martin D. Rakoff

                            [Tax Indemnification Agreement]
<PAGE>
                                            /s/ Anthony Bottini, Jr.
                                            ----------------------------
                                            Anthony Bottini, Jr.

                        [Tax Indemnification Agreement]
<PAGE>
                                            /s/ Mark Bottini
                                            ----------------------------
                                            Mark Bottini

                        [Tax Indemnification Agreement]
<PAGE>
                                            /s/ Brian L. Bottini, Sr.
                                            ----------------------------
                                            Brian L. Bottini, Sr.

                        [Tax Indemnification Agreement]
<PAGE>
                                            /s/ Louis J. Viglotti
                                            ----------------------------
                                            Louis J. Viglotti

                        [Tax Indemnification Agreement]
<PAGE>
                                            /s/ Dominick Diaferia
                                            ----------------------------
                                            Dominick Diaferia

                        [Tax Indemnification Agreement]
<PAGE>
                                            /s/ David M. Birsner
                                            ----------------------------
                                            David M. Birsner

                            [Tax Indemnification Agreement]
<PAGE>
                                            VILLAGE HOLDINGS, LLC

                                            By: /s/ Mark Bottini
                                                -------------------------
                                            Name:  Mark Bottini
                                            Title: Managing Member

                        [Tax Indemnification Agreement]

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00094-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00094-of-00352.parquet"}]]