Document:

EXHIBIT 10.4

                                    GUARANTY

      This GUARANTY is made as of November __, 2004, by Strategy International
Insurance Group, Inc., a Texas corporation, Strategy Holding Company Limited, a
Barbados company and Strategy Insurance Limited, a Barbados corporation (each a
"Guarantor" and collectively, the "Guarantors"), in favor of the holders (the
"Shareholders") of shares of Series A Preferred Stock (the "Series A Shares")
and Series B Preferred Stock (the "Series B Shares") of Strategy Real Estate
Investments, Inc., an Ontario corporation ("SREI").

                              W I T N E S S E T H:

      WHEREAS, each of the Shareholders has entered or is about to enter into a
Subscription Agreement (the "Subscription Agreement"), pursuant to which each of
the Shareholders will subscribe for Series A Shares and Series B Shares, on the
basis of, and in reliance upon, the representations, warranties and covenants of
SREI contained in the Private Placement Memorandum prepared by SREI in
connection with the contemplated investment by the Shareholders and the exhibits
thereto (collectively, the "Representations"); and

      WHEREAS, it is a condition precedent to the obligations of the
Shareholders to enter into the Subscription Agreement that Guarantors shall have
entered into this Guaranty for the purpose of guaranteeing performance by SREI
of the Representations.

      NOW, THEREFORE, in order to induce the Shareholders to enter into the
Subscription Agreements and for other good and valuable consideration, the
receipt and sufficiency of which is hereby acknowledged, Guarantors hereby agree
as follows:

1. Guaranteed Obligations. Guarantors hereby, jointly and severally, irrevocably
and unconditionally, guarantee (a) the due and punctual performance by SREI of
the Representations, including, but not limited to, (i) the payment of the
liquidation preference of the Series A Shares in an amount of up to $50,000,000,
(ii) the payment of dividends on the Series A Shares in an amount of up to
$15,000,000 and (iii) the payment of the Participation Interest (as defined in
the Participation Agreement, dated as of the date hereof, among SREI, the Lux
Group, Inc., 11 Christie Street, Inc., Gananoque Resort Inc., 40 Westmoreland
Inc., Howe Island Development Ltd. and Elevator Bay Development Ltd.), (b) the
payment (and not merely the collectibility) of any loss, liability or expense
incurred by the Shareholders in the event any of the Representations are untrue
in any respect or fail to be performed, and (c) the payment (and not merely the
collectibility) of any other obligation owed by SREI to the Shareholders of any
nature that arises hereafter under the Subscription Agreement or pursuant to any
modification or amendment thereof (collectively, the "Guaranteed Obligations").
This Guaranty is a continuing guaranty of the Guaranteed Obligations for as long
of any of the shares of Series A Preferred Stock or Series B Preferred Stock are
outstanding. If SREI, or any of its successors and assigns, shall fail to
perform all or any of the Representations and/or fail to duly and punctually pay
the amounts set forth in subdivision (a), (b), and (c) above, or any of them,
Guarantors shall forthwith pay the same on demand.

                                     - 1 -
<PAGE>

2. Demand by the Shareholders. The liabilities and obligations of Guarantors
hereunder in respect of the Guaranteed Obligations shall become due and payable
by Guarantors to the Shareholders immediately after demand hereunder is made
upon Guarantors by any of the Shareholders in writing. Any such demand may be
delivered concurrently with any notice of default and the Shareholders shall be
entitled to exercise their rights hereunder one or more times and no failure to
exercise any such rights shall constitute a waiver thereof or of the right
thereafter to seek payment hereunder on account thereof or otherwise.

3. Primary Obligation. The liability of Guarantors hereunder shall be primary,
direct and immediate, and not conditional or contingent upon pursuit by the
Shareholders of any remedies they may have against SREl or any other party with
respect to the Guaranteed Obligations. Any one or more successive and/or
concurrent actions may be brought against Guarantors either in the same action
or proceeding, if any, brought against SREI, or in separate actions, as the
Shareholders in their sole discretion may deem advisable.

4. Subrogation. Guarantors shall become subrogated to the rights of the
Shareholders against SREI for any amounts actually paid by Guarantors to the
Shareholders hereunder only upon the payment or discharge in full of all of the
Guaranteed Obligations. Such rights of subrogation shall be shared with other
guarantors, if any, pari passu and in proportion to the payments any such
Guarantors have made to the Shareholders under any like performance guaranty.
The Shareholders shall be entitled to exercise any and all remedies to which
they may be entitled against any collateral pledged by SREI as if no such rights
of subrogation exist.

5. Waiver of Demands, Notices, Diligence, etc. Guarantors hereby consent, to the
extent permitted by applicable law, to all the and conditions of the Guaranteed
Obligations and waive (a) demand for payment of the Guaranteed Obligations or of
any claim therefor, (b) notice of the occurrence of a default or of an event of
default of any of the Guaranteed Obligations; (c) protest of the nonpayment of
any of the Guaranteed Obligations; (d) notice of presentment, demand and
protest; (e) notice of acceptance of any guaranty herein provided for or of the
terms and provisions thereof or hereof by the Shareholders; (f) notice of any
indulgences or extensions granted to SREI or to any other person or entity which
shall have succeeded to or assumed the obligations of SREI; (g) any requirement
of diligence or promptness on the Shareholders' part in the enforcement of any
of their rights hereunder; (h) any enforcement of any of the Guaranteed
Obligations; (i) any right which Guarantors might have to require the
Shareholders to proceed against any other guarantor of the Guaranteed
Obligations or to realize on any collateral security therefor; and (j) any and
all notices of every kind and description which may be required to be given by
any statute or rule of law in any liquidation. The waivers hereinabove set forth
shall be effective in all events and shall survive any liquidation, merger or
consolidation of SREI or if SREI otherwise ceases to exist.

6. Obligations of Guarantors. The obligations of Guarantors under this Guaranty
are unconditional, irrespective of the validity, regularity or enforceability of
any of the Guaranteed Obligations. Such obligations shall not be affected by any
action taken under any Guaranteed Obligations in the exercise of any right or
remedy therein conferred; by any failure or omission on the Shareholders' part
to enforce any right granted thereunder or hereunder or any remedy conferred
thereby or hereby; by any waiver of any term, covenant, agreement or condition
of any of the Guaranteed Obligations or this Guaranty; by any release of any
security or any other guaranty at any time existing for the benefit of the
Shareholders; by the merger or consolidation of SREI, or by any sale, lease or
transfer by SREI to any person or entity of any or all of its properties; by any
action of the Shareholders granting indulgence or extension to or waiving or
acquiescing in any default by SREI or by a successor to SREI or by any other
person or entity which shall have assumed its obligations; by reason of any
disability or other defense of SREI or of any successor to SREI, or by any
modification, or amendment of any agreement between SREI and the Shareholders,
or by any circumstance whatsoever (with or without notice to or knowledge of
Guarantors) which may or might in any manner or to any extent vary the risk of
the Guarantors hereunder, it being the purpose and intent of Guarantors that the
obligations of Guarantors shall be absolute and unconditional under any and all
circumstances and shall not be discharged except by payment or performance as
provided herein, and then only to the extent of such payment or performance.

                                     - 2 -
<PAGE>

7. Notices, etc. All notices, demands, requests and other communications
required or permitted hereunder shall be deemed to have been sufficiently given
or made if in writing and delivered by hand personally to, or mailed by
registered or certified mail, return receipt requested, or telefaxed with
confirmation of receipt requested, if to Guarantors, to the following address:

                  Strategy International Insurance Group, Inc.
                  200 Yorkland Boulevard, Suite 200
                  Toronto Ontario M2J 5C1 Canada
                  Attention: Sandro Sordi, Esq.
                  Telephone: (416) 391-4223
                  Fax: (416) 391-4860

8. Survival of Guaranty, etc. This Guaranty shall inure to the benefit of and be
binding upon Guarantors and the Shareholders and their respective heirs,
successors and assigns, including any subsequent holder or holders of any
Guaranteed Obligations, and the term "Shareholders" shall include any such
holder or holders whenever the context permits.

9. Independent Obligation. The Shareholders may proceed against Guarantors under
this Guaranty without first proceeding against SREI, or against any other
guarantor or any other person and without pursuing any other remedy.

10. Counterparts. This Guaranty may be executed in any number of counterparts,
each of which shall be an original, but all of which together shall constitute
one instrument.

11. Governing Law, Submission to Jurisdiction; Waiver of Trial by Jury.

            (a) This Guaranty is to be construed in accordance with and governed
by the laws of the State of New York, without giving effect to any choice of law
rule that would cause the application of the laws of any jurisdiction other than
the State of New York to the rights and duties of the parties.

                                     - 3 -
<PAGE>

            (b) Any controversy, claim or dispute arising out of or relating to
this Guaranty between the parties hereto, their assignees, their affiliates,
their attorneys, or agents, shall be litigated solely in state or federal court
in New York City. Each party (i) submits to the jurisdiction of any such court,
(ii) waives the defense of an inconvenient forum, (iii) agrees that valid
consent to service may be made by mailing or delivery of such service to the New
York Secretary of State (the "Agent") or to the party at the party's last known
address, if personal service delivery can not be easily effected, and (iv)
authorizes and directs the Agent to accept such service in the event that
personal service delivery can not easily be effected.

            (c) EACH PARTY, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW,
HEREBY IRREVOCABLY WAIVES ALL RIGHT TO TRIAL BY JURY AS TO ANY ISSUE RELATING
HERETO IN ANY ACTION, PROCEEDING, OR COUNTERCLAIM ARISING OUT OF OR RELATING TO
THIS GUARANTY OR ANY OTHER MATTER INVOLVING THE PARTIES HERETO.

      IN WITNESS WHEREOF, the parties hereto have executed this Guaranty as of
the date set forth in the first paragraph hereof.

                                        STRATEGY INTERNATIONAL
                                        INSURANCE GROUP, INC.
                                        a Texas Corporation

                                        By: _________________________________
                                        Name:
                                        Title:

                                        STRATEGY HOLDING COMPANY
                                        LIMITED
                                        A Barbados company

                                        By: _________________________________
                                        Name:
                                        Title:

                                        STRATEGY SURANCE LIMITED
                                        a Barbados company

                                        By: _________________________________
                                        Name:
                                        Title:

                                     - 4 -EXHIBIT 10.6

                              DATED 24TH JUNE 2005

                         (1) STRATEGY INSURANCE LIMITED

                             (2) THE B SHAREHOLDERS

                                       AND

                         (3) FORESTRE (HOLDINGS) LIMITED

--------------------------------------------------------------------------------

         SHAREHOLDERS AGREEMENT relating to FORESTRE (HOLDINGS) LIMITED

--------------------------------------------------------------------------------

                                   CLYDE & CO
                               Ref: AH/DGW/0500093
<PAGE>

THIS AGREEMENT is made on 24th June 2005

BETWEEN:-

(1)   STRATEGY INSURANCE LIMITED a company (registered under Barbados Law) the
      registered office of which is at Sagicor Corporate Centre, Wildey, St.
      Michael, Barbados, West Indies, BB15113 ("SIL");

(2)   The Persons whose names and addresses and further details are set out in
      Schedule One (the "B Shareholders"); and

(3)   FORESTRE (HOLDINGS) LIMITED a company (registered in England and Wales
      under number 4968264) the registered office of which is at Beech Trees
      Cottage, Well Lane, Mollington, Chester CH1 6LD (the "Company").

WHEREAS

(A)   The Company is a private company limited by shares incorporated under the
      Companies Act on 18 November 2003 with an authorised share capital of
      (pound)35,600 divided into 20,880 "A" Ordinary Shares of (pound)1 each,
      14,220 "B" Ordinary Shares of (pound)1 each and 5,000,000,000 Deferred
      Shares of (pound)0.00001p each. Further details of the Company are set out
      in Part 1 of Schedule Two.

(B)   SIL and the "B" Shareholders have agreed to co-operate in the management
      of the Company and the Business and thereafter together procuring the
      operation of the Company for the purposes of and upon the terms set out in
      this Agreement.

(C)   SIL and the "B" Shareholders have agreed to enter into this Agreement for
      the purpose of regulating the management of the Company, their
      relationship with each other and certain aspects of the affairs and their
      dealings with the Company.

(D)   The Company has agreed with SIL and the "B" Shareholders that it will
      comply with the terms and conditions of this Agreement in so far as they
      relate to the Company.

                                       3
<PAGE>

1.    INTERPRETATION

1.1   In this Agreement unless the context otherwise requires:-

      " "A" Directors" means those Directors appointed by the "A" Shareholder
      pursuant to the provisions of clause 3.1 and holding office from time to
      time and, unless otherwise stated, includes their duly appointed
      alternates;

      " "A" Share" means an "A" ordinary share of (pound)1 in the share capital
      of the Company having the rights and being subject to the limitations and
      restrictions set out in the Articles together with any other shares
      derived therefrom or issued or allotted to the "A" Shareholder;

      " "A" Shareholder" means the holder or holders from time to time of all
      the "A" Shares;

      "Agreed Form" means in a form agreed by and signed by or on behalf of the
      Parties with such alterations (if any) as may be agreed in writing between
      the Parties;

      "Articles" means the new articles of association of the Company in the
      Agreed Form to be adopted at Completion as amended from time to time (and
      any reference to an "Article" shall be a reference to that article of the
      Articles);

      "Auditors" means the auditors for the time being of the Company;

      " "B" Directors" means those Directors appointed by the "B" Shareholder
      pursuant to the provisions of this Agreement and holding office from time
      to time and, unless otherwise stated, includes their duly appointed
      alternates;

      " "B" Share" means a "B" ordinary share of (pound)1 in the share capital
      of the Company having the rights and being subject to the limitations and
      restrictions set out in the Articles together with any other shares
      derived therefrom or issued or allotted to the "B" Shareholder;

      " "B" Shareholder" means the holder or holders from time to time of all
      the "B" Shares;

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<PAGE>

      "Board" means the board of Directors of the Company as constituted from
      time to time or any committee appointed by such board in accordance with
      the Articles;

      "Business" means the business carried on by the Group, of acting as
      insurance intermediary in the underwriting of risks associated with,
      commercial, forestry and agricultural business on a global basis and of
      providing ancillary services thereto;

      "Business Day" means a day on which banks generally are open in the City
      of London for the transaction of normal banking business;

      "Companies Act" means the Companies Act 1985 (as amended or re-enacted by
      the Companies Act 1989);

      "Completion" means completion of this Agreement in accordance with the
      provisions of clause 2;

      "Contact Office Services Agreement" means the agreement between SIL (1)
      and ForestRe Limited (2) in the Agreed Form relating to the provision of
      certain contact office services;

      "Control" shall have the same meaning as in section 840 of the Income and
      Corporation Taxes Act 1988;

      "Deed of Adherence" means a deed in the form set out in Schedule Four;

      "Deferred Shares" means the deferred shares of (pound)0.00001 each of the
      capital of the Company from time to time in issue having such rights and
      being subject to the restrictions set out in the Articles;

      "Director" means any director from time to time of any Group Company
      including where applicable any duly appointed alternate director;

      "Facility" means the facility to be made available by the "A" Shareholder
      to the Company as from Completion on the terms set out in the Loan
      Agreement;

                                       5
<PAGE>

      "Financial Plan" means any detailed operating plan and financial budget
      for the Group prepared in accordance with clause 5.2;

      "Group" means the Company and the Subsidiaries and any company which
      becomes a subsidiary or subsidiary undertaking of the Company at any time
      after the date hereof or any one or more of them;

      "Group Company" means any company from time to time which is a member of
      the Group;

      "IP Rights" means the following rights for their full term (including any
      extensions or renewals thereof) and wherever in the world enforceable: (i)
      rights in, and in relation to, any patents, petty patents, registered
      designs, design rights, trade marks, rights in domain names, trade and
      business names (including all goodwill associated with any trade marks or
      trade or business names), copyrights, moral rights, rights in databases,
      topography rights and utility models (including the benefit of all
      registrations of, applications to register and the right to apply for
      registration of any of the foregoing items and all rights in the nature of
      any of the foregoing); (ii) trade secrets, confidential information and
      other proprietary rights in data and information, including rights to know
      how and other technical information; (iii) rights in the nature of unfair
      competition rights and to sue for passing off; and (iv) all other
      intellectual or industrial property rights of any nature whatsoever;

      "Key Employees" means P L Cottle and J M Roberts;

      "Loan Agreement" means the agreement in the Agreed Form between the
      Company (1) and SIL (2) to be entered into at Completion relating to the
      loan of up to US$2,000,000 by the "A" Shareholder to the Company;

      "London Stock Exchange" means The International Stock Exchange of the
      United Kingdom and the Republic of Ireland Limited;

      "Member" means the holder of any Shares from time to time;

                                       6
<PAGE>

      "Parties" means all the parties to this Agreement (including any person
      who shall execute a Deed of Adherence and become a party to this
      Agreement) and the word "Party" shall be construed accordingly;

      "Permitted Transferee" means any person to whom a transfer of Shares may
      be made under Article 9.5 of the Articles;

      "Restricted Transaction" means any of the acts, transactions and dealings
      set out in Schedule Three;

      "Service Agreements" means the service agreements in Agreed Form to be
      entered into between the relevant Subsidiaries and each of the Key
      Employees;

      "Shareholder" means the "A" Shareholder or the "B" Shareholders from time
      to time, as the case may be, and the word "Shareholders" shall be
      construed accordingly;

      "Shares" means the shares (of whatever denomination or class) from time to
      time in the share capital of the Company;

      "Subsidiaries" means the companies listed in Part 2 of Schedule Two or any
      one or more of them;

      "Subsidiary Articles" means the new articles of association in the Agreed
      Form in respect of each of the subsidiaries; and

      "Underwriting Information" means all memorandum, files, books, records,
      documents, correspondence, accounts, agreements, papers, data (whether
      electric or other format) and other information (wherever situated)
      relating to the underwriting by SIL of the Business.

1.2   In this Agreement unless the context otherwise requires:-

1.2.1 any reference to a clause or Schedule (other than to a schedule to a
      statutory provision) is a reference to a clause or schedule to this
      Agreement; and the Schedules form part of and are deemed to be
      incorporated in this Agreement;

                                       7
<PAGE>

1.2.2 any reference to a statute or statutory provision includes a reference to
      that provision as amended, re-enacted or replaced and any regulations or
      orders made under such provisions from time to time whether before or
      after the date of this Agreement and any former statutory provision
      replaced (with or without modification) by the provision referred to;

1.2.3 any reference to persons includes a reference to firms, corporations or
      unincorporated associations;

1.2.4 any reference to the singular includes a reference to the plural and vice
      versa and any reference to the masculine includes a reference to the
      feminine and vice versa;

1.2.5 any phrase introduced by the terms or any similar expression shall be
      construed as illustrative and shall not limit the generality of the words
      preceding those terms;

1.2.6 any agreement, representation, indemnity, covenant or undertaking on the
      part of the "B" Shareholders shall be deemed to be given or made by "B"
      Shareholders severally; and

1.2.7 words and expressions defined in the Companies Act bear the same
      respective meanings.

1.3   Headings and titles are used for ease of reference only and do not affect
      the interpretation of this Agreement.

2.    COMPLETION

      At Completion, forthwith upon execution of this Agreement, each of the
      Parties shall (so far as it is within his or its powers so to do) take or
      cause the following steps to be taken and, to the extent necessary, to be
      sanctioned by the Board and/or the Members of the Company (as
      appropriate):-

2.1   the adoption of the Articles and the Subsidiary Articles;

2.2   the appointment of Stephen Stonhill, Philip Armstrong and Hugh Forrest as
      "A" Directors pursuant to the provisions of clause 3 of this Agreement;

                                       8
<PAGE>

2.3   the execution by the relevant Subsidiaries and each of the Key Employees
      of the Service Agreements;

2.4   the execution by ForestRe Limited and Strategy Insurance Limited of the
      Contact Office Services Agreement;

2.5   the execution by the Company and SIL of the Loan Agreement;

2.6   the resignation of Philip Cottle and, subject to the approval of the
      Financial Services Authority, the appointment of Stephen Stonhill, Philip
      Armstrong, Hugh Forrest and Julian Roberts as directors of ForestRe
      Limited; and

2.7   the appointment of Stephen Stonhill, Philip Armstrong and Hugh Forrest as
      directors of Agroforest Risk Management Limited.

3.    DIRECTORS

3.1   The registered holder or holders of a majority in nominal value of the "A"
      Shares as a class from time to time in issue shall be entitled to appoint
      up to a maximum of three Directors and to remove any such Directors in
      accordance with the provisions of this Article 3. Every such appointment
      and removal shall be effected by notice in writing deposited at the
      registered office of the Company signed by the holder or holders of a
      majority in nominal value of the "A" Shares as a class from time to time
      in issue.

3.2   Subject to the provisions of clause 3.18, for as long as the "A" Shares in
      issue for the time being represent at least sixty per cent of the Ordinary
      Shares in issue as at such time, then the "A" Directors collectively or
      any number of them present at any meeting of the Directors shall at any
      such meeting be entitled to exercise such number of votes as would
      constitute a majority of the votes of all the Directors present at such
      meeting.

3.3   The registered holder or holders of a majority in nominal value of the "B"
      Shares as a class from time to time in issue shall be entitled to appoint
      up to a maximum of six Directors to the Company and to remove any such
      Directors in accordance with the provisions of this Article 3. Every such
      appointment or removal shall be effected by notice in writing deposited at
      the registered office of the Company signed by the holder or holders of a
      majority in nominal value of the "B" Shares as a class from time to time
      in issue.

                                       9
<PAGE>

3.4   For as long as the "B" Shares in issue at any time represent at least
      sixty per cent of the Ordinary Shares in issue at such time, then the "B"
      Directors collectively or any number of them present at any meeting of the
      Directors shall at any such meeting be entitled to exercise such number of
      votes as would constitute a majority of the total number of votes of all
      the Directors present at such meeting.

3.5   Notwithstanding any provision from time to time of the Articles or the
      Subsidiary Articles of any Group Company, a Director appointed pursuant to
      clause 3.1 or 3.3 shall not be subject to retirement by rotation and may
      not, subject to the provisions of the Companies Act, be removed except by
      the Shareholder entitled to appoint him.

3.6   Directors appointed pursuant to clauses 3.1 and 3.3 shall be entitled to
      disclose to the "A" Shareholder and the "B" Shareholder respectively such
      information regarding the Group as they shall in their absolute discretion
      determine.

3.7   At any general meeting of the Company at which a resolution is proposed to
      appoint or remove an "A" Director, the "B" Shareholders hereby agrees not
      to exercise the votes attaching to the "B" Shares held by them upon any
      such resolution.

3.8   At any general meeting of the Company at which a resolution is proposed to
      appoint or remove a "B" Director, the "A" Shareholders hereby agrees not
      to exercise the votes attaching to the "A" Shares held by them upon any
      such resolution.

3.9   At any general meeting of any Group Company (other than the Company) at
      which a resolution is proposed to appoint or remove an "A" Director as a
      Director of such company the Parties agree to exercise such votes as they
      respectively may have (whether as a Director or Shareholder) to ensure
      that the "A" Director in question is appointed as the authorised
      representative of the immediate parent of such Group Company with full
      authority to attend and vote at such general meeting upon any such
      resolution as he shall in his absolute discretion think fit.

                                       10
<PAGE>

3.10  At any general meeting of any Group Company (other than the Company) at
      which a resolution is proposed to appoint or remove a "B" Director as a
      Director of such company the Parties agree to exercise such votes as they
      respectively may have (whether as a Director or Shareholder) to ensure
      that the "B" Director in question is appointed as the authorised
      representative of the immediate parent of such Group Company with full
      authority to attend and vote at such general meeting upon any such
      resolution as he shall in his absolute discretion think fit.

3.11  Unless otherwise agreed by the Shareholders in writing, the Board shall
      meet at least three times in each calendar year.

3.12  Unless otherwise agreed in writing by at least one "A" Director and one.
      "B" Director in any particular case, at least three clear days' notice in
      writing should be given to each Director of every Board meeting. Every
      such notice shall contain an agenda specifying in reasonable detail the
      matters to be discussed at the relevant meeting and be accompanied by any
      relevant papers for discussion at such meeting. Unless all the Directors
      for the time being are present at a meeting no business or resolution
      shall be transacted or passed at that meeting except as was fairly
      disclosed in the agenda for such meeting.

3.13  At any time or from time to time the registered holder or holders of a
      majority in nominal value of the "A" Shares as a class from time to time
      in issue shall be entitled to fill any vacancy arising out of the removal
      of an "A" Director pursuant to the provisions of clause 3.1. Every such
      appointment shall be effected by notice in writing deposited at the office
      signed by the holder or holders of a majority in nominal value of the "A"
      Shares provided that such appointment shall be subject to the prior
      written consent (such consent not to be unreasonably withheld) of the
      holder or holders of a majority in nominal value of the "B" Shares as a
      class from time to time in issue.

3.14  At any time or from time to time the registered holder or holders of a
      majority in nominal value of the "B" Shares as a class from time to time
      in issue shall be entitled to fill any vacancy arising out of the removal
      of a "B" Director pursuant to clause 3.3. Every such appointment shall be
      effected by notice in writing deposited at the office signed by the holder
      or holders of a majority in nominal value of the "B" Shares provided that
      such appointment shall be subject to the prior written consent (such
      consent not to be unreasonably withheld) of the holder or holders of a
      majority in nominal value of the "A" Shares as a class from time to time
      in issue.

                                       11
<PAGE>

3.15  If any Shareholder removes a Director of the Company or any Group Company
      in accordance with clauses 3.1, 3.3 or 3.16 then such Shareholder shall be
      responsible for and shall indemnify the other Shareholders and the Company
      and any relevant Group Company against all losses, damages, liabilities,
      costs and expenses incurred by any of them in respect of any claim by such
      Director for unfair or wrongful dismissal arising out of such removal.

3.16  If any Director appointed in accordance with clauses 3.1 or 3.3 who is
      also employed or engaged as an employee or a consultant (either directly
      or through a third party) of the Company or any subsidiary undertaking of
      the Company or any Group Company ceases to be so employed or engaged and
      does not remain employed or engaged (either directly or through a third
      party) by the Company or any subsidiary undertaking of the Company or any
      Group Company in any other capacity then the Shareholder who has appointed
      such Director shall within seven days of such event remove him as a
      Director of the Company or any Group Company in accordance with clause 3.1
      or clause 3.3 (as the case may be) failing which it shall be deemed that
      such Shareholder has served a written notice for the removal of such
      Director in accordance with the provisions of clause 3.1 or clause 3.3 (as
      the case may be) and the provisions of clause 3.15 shall apply in respect
      of such relevant Shareholder.

3.17  Each Shareholder shall (so far as it is within his or its powers so to do)
      procure that the Board shall at all times perform its functions in
      accordance with and so as to give effect to the terms of this Agreement.

3.18  At any meeting of the Directors at which a resolution is proposed that the
      Company make early repayment of any amounts still outstanding under the
      Loan Agreement or of any part of the Facility the "A" Shareholder hereby
      agrees that it shall procure that the "A" Directors collectively or any
      number of them present at any such meeting shall exercise their votes so
      as not to unreasonably withhold the making of any such early repayment of
      any amounts still outstanding under the Loan Agreement or of any part of
      the Facility by the Company.

                                       12
<PAGE>

4.    BUSINESS OF THE COMPANY

4.1   It is the intention of the Parties that at all times during the
      continuance of this Agreement the Company and each Group Company shall
      carry on the Business and each Shareholder undertakes to the other
      Shareholder to use all reasonable endeavours to promote the interests of
      the Group in connection with the Business.

4.2   Each Shareholder and the Company covenant and undertake to the other
      Shareholder that during the continuance of this Agreement, (save with the
      prior written consent of the "A" Shareholder and the "B" Shareholders or
      if approved by the "A" Shareholder and the "B" Shareholders the written
      consent of an "A" Director and a "B" Director) any expansion, development
      or evolution of the Business or any part thereof (whether to be conducted
      as part of or in connection with such main business or ancillary to it)
      will only be effected through the Company or a wholly owned subsidiary of
      the Company.

4.3   Each Shareholder undertakes to and covenants with the other (subject to
      all applicable legal requirements both statutory and at common law) to
      exercise his or its respective rights and powers under this Agreement and
      as a Shareholder to ensure and to procure (so far as he or it is able to
      do so) that any Director appointed by him or it shall so act and vote in
      relation to the affairs of the Company (and the other Members (if any) of
      the Group), subject to the fiduciary duties of such Directors, to ensure
      during the continuance of this Agreement that:-

4.3.1 the Group carries on no business except the Business and anything
      necessarily incidental to it and that it carries on the Business and all
      its affairs in a proper manner and bona fide in the best interests of the
      Company and on sound commercial principles and transacts all its business
      on arm's length terms;

4.3.2 the Board shall determine the general policy of the Group in the carrying
      on of the Business subject to the express provisions of this Agreement and
      of the Articles;

                                       13
<PAGE>

4.3.3 the Group insures with SIL or with an insurance company of good repute
      acceptable to SIL and keep fully and properly insured itself and all its
      assets against the normal risks for the Business carried on and shall not
      do or omit to do anything which will make any policy of insurance
      maintained by any Group Company void or voidable; and

4.3.4 (save with the prior written consent of the "A" Shareholder and the "B"
      Shareholders or if approved by the "A" Shareholder and the "B"
      Shareholders the written consent of an "A" Director and a "B" Director)
      neither the Company nor any Group Company carries out or agrees (whether
      conditionally or unconditionally) to carry out any Restricted Transaction.

4.4   The Company undertakes to and covenants with each Shareholder (subject to
      all applicable legal requirements both statutory and at common law) that
      it will exercise its vote as a shareholder in any Group Company (and
      procure the exercise by any other Group Company of all votes which it may
      hold as shareholder in any other Group Company) so as to procure so far as
      it is able that during the continuance of this Agreement (save with the
      prior written consent of the "A" Shareholder and the "B" Shareholders or
      any such resolution of the board of directors of the Group Company at
      which an "A" Director and a "B" Director present at such meeting has
      agreed to any such proposal) that no Group Company will carry out or agree
      (whether conditionally or unconditionally) to carry out any Restricted
      Transaction.

4.5   The Company agrees (to the extent permitted by law) to comply with the
      requirements and standards relating to the conduct of the Business and of
      its affairs set out in clause 4.3 and the Company undertakes to each
      Shareholder that it will duly and punctually perform, enforce and comply
      with all its rights and obligations pursuant to this Agreement and that it
      will exercise all such rights as it may have to procure that each Group
      Company will duly and punctually perform, enforce and comply with the same
      rights and obligations as the Company so far as practicable as though it
      were a party to this Agreement.

4.6   Notwithstanding the provisions of paragraph 27 of Schedule Three, it is,
      the intention of the Group to establish a share incentive scheme to
      incentivise future senior management employees of the Group through the
      increase of the share capital (by not more than 5% of the issued share
      capital on a pro rata diluted basis all classes of shares) and if so
      advised the creation of a new class of shares ("Incentive Shares") that
      will be issued to those qualifying employees. Any such scheme to be
      approved by the Board.

                                       14
<PAGE>

4.7   Each of the Parties agrees that at all times during the continuance of
      this Agreement it shall fully and punctually perform and comply with all
      obligations on its part under the Articles and it is agreed that each
      provision of the Articles shall be enforceable by the Parties between
      themselves and in whatever capacity.

4.8   SIL hereby appoints ForestRe Limited to provide the services as set out in
      clause 3.1 of the Contact Office Services Agreement in relation to any of
      its transactions of insurance and/or reinsurance risks where the risks are
      commercial, forestry and/or agricultural of the type underwritten through
      the introduction(s) effected under the Contact Office Services Agreement
      and to act as its exclusive contact office service provider throughout the
      world for such business.

4.9   The Parties acknowledge that it is their common intention to negotiate in
      good faith an arrangement whereby the Shareholders will endeavour to
      establish an independent insurance entity to underwrite the Business. Such
      negotiations to be concluded by no later than 30 September 2005.

5.    REPORTING, INFORMATION AND REMUNERATION

5.1   The Company and the Shareholders agree that during the continuance of this
      Agreement the Company shall provide to each Shareholder in relation to the
      Group:-

5.1.1 a projected profit and loss statement, balance sheet and cash flow
      forecast for the remaining portion of 2005 and for each of 2006 and 2007.

5.1.2 audited consolidated accounts and an annual report of the Group within
      three months (or such longer period as the "A" Shareholder and the "B"
      Shareholders may agree) of the end of the accounting period to which they
      relate prepared in accordance with the Companies Act and normally accepted
      accounting practices and policies and such accounts shall be laid before
      the Company in general meeting no later than four months after the end of
      the relevant accounting reference date;

                                       15
<PAGE>

5.1.3 such financial and other information about the Company and any Group
      Company as any Shareholder may, from time to time, reasonably require; and

5.1.4 within one week of the end of each calendar month, management accounts
      containing a profit and loss account, balance sheet, cash flow forecast
      for the next quarter and provide a comparison between budgeted and actual
      results together with a report on any significant variations between such
      results and a report on the Group's performance by the managing director
      of the Company.

5.2   The Board shall provide to the Shareholders, not later than two months
      before the end of each of its accounting years, a draft Financial Plan for
      the next accounting period compiled from management information in the
      same form as has been provided in the ordinary course of business prior to
      that date which shall include the forecasted aggregate underwriting
      capacity required by each Group Company and the underwriting capacity
      required to be underwritten by SIL for the next accounting period.

5.3   During the course of any accounting period, if the Company wishes to make
      significant changes from time to time to the approved Financial Plan, a
      request shall be made in writing to each Shareholder and, for the purposes
      of endeavouring to agree any such change, the request shall be treated as
      if it formed part of a draft Financial Plan.

5.4   Within a period of 14 days following receipt by the Shareholders of such
      draft Financial Plan pursuant to clause 5.2, the Parties shall consult
      upon the content of such draft Financial Plan and shall each use all
      reasonable endeavours to reach agreement as to the contents of such draft
      Financial Plan.

5.5   In the event of the Parties failing to agree as to the form or content of
      any draft Financial Plan (or any proposed revision thereof) within the
      period provided for in clause 5.4, then within seven days after the expiry
      of such period a meeting of the Board shall be convened at which the draft
      Financial Plan shall be tabled and each Shareholder shall be entitled to
      deliver to the Company written submissions in respect of the draft
      Financial Plan prior to such meeting. The Financial Plan shall be deemed
      to have been agreed by all Parties if the Board at such a meeting resolve
      to adopt the draft Financial Plan with or without any further amendments
      thereto and the decision of the Board in this regard shall be final and
      binding on all the Parties.

                                       16
<PAGE>

5.6   The Company agrees with and undertakes to each Shareholder that it will
      (and the Shareholders undertake to procure that the Company will)
      introduce and maintain proper, usual and up-to-date accounting and
      financial records in relation to the business and affairs of the Group and
      generally keep each Shareholder informed of the progress of each Group
      Company's business and affairs.

5.7   Each Shareholder shall be entitled upon reasonable prior notice being
      given to the Company to examine all books and accounts of each Group
      Company.

5.8   SIL undertakes to each of the Shareholders that the Company and its
      representatives shall have the right, without restriction or limitation
      subject to giving reasonable notice and being in normal working hours, to
      inspect and audit any records of SIL relating to insurances bound by SIL
      in respect of the Business only and shall have the right to make copies or
      extracts of any such records.

5.9   SIL shall pay the Company a monthly fee calculated in accordance with the
      following formula:

      Fee = A - B

      Where:

      A = 10% of the gross net premium income in respect of any policy
      underwritten by SIL forming part of the Business (the gross net premium
      income shall consist of the gross premiums in respect of the relevant
      policies underwritten by SIL less cancellations, returns of premium,
      adjustments and such applicable taxes as are assessed on the policy
      premium).

      B = the fee paid by SIL to ForestRe Limited under the terms of the Contact
      Office Services Agreement in respect of the same monthly period.

                                       17
<PAGE>

      The fee shall be due and payable upon receipt by SIL of the policy premium
      in respect of the relevant policy and shall be paid monthly by SIL to the
      Company within 15 days from receipt of an invoice setting out the basis on
      which the fee is calculated for the relevant month.

5.10  Payments to be made by SIL to the Company in accordance with clause 5.9
      shall initially be set off and applied to the repayment of any amounts
      outstanding by the Company under the Loan Agreement.

6.    DEALINGS WITH SHARES

6.1   No transfer of any Shares shall be made or registered other than in
      accordance with the Articles nor until the proposed transferee (if not
      already bound by the terms of this Agreement) has entered into a Deed of
      Adherence.

6.2   No allotment of shares shall be made or registered other than to a person
      who is already a Shareholder and therefore bound by the terms of this
      Agreement until the proposed allottee (if not already bound by the terms
      of this Agreement) has entered into a Deed of Adherence.

7.    DEADLOCK

7.1   This clause applies in any case where:

7.1.1 a matter relating to the affairs of the Company or a Subsidiary has been
      considered by a meeting of the Board; and

7.1.2 no resolution has been carried at the meeting in relation to the matter by
      reason of the "A" Shareholder or the "B" Shareholders exercising their
      rights to prohibit a Restricted Transaction in accordance with clause
      4.3.4; and

7.2   the matter is not resolved within 14 days from the date of the meeting as
      a result of any intervention by the Shareholders. Any such case is
      referred to as a "deadlock".

                                       18
<PAGE>

7.3   In any case of deadlock each of the Shareholders shall, within seven days
      of the deadlock arising, cause its appointees on the Board to prepare and
      circulate to the other Shareholder and other Directors a memorandum or
      other form of statement setting out its position on the matter in dispute
      and its reasons for adopting that position. Each memorandum or statement
      shall be considered by the managing director of the "A" Shareholder and to
      Justin Mundy on behalf of the "B" Shareholders (together referred to as
      the "Deadlock Representatives") who shall endeavour to resolve the
      deadlock. If the Deadlock Representatives agree upon a resolution or
      disposition of the matter, they shall execute a statement setting out the
      agreed terms. The Shareholders shall exercise the voting rights and other
      powers available to them in relation to the Company to procure that the
      agreed terms are fully and promptly carried into effect.

7.4   If the deadlock is not resolved or disposed of in accordance with clause
      7.3 within 30 days after expiry of the seven day period, or such longer
      period as the Shareholders agree in writing, and if it prevents the
      Company or a Subsidiary from continuing to achieve its business purposes,
      any Shareholder may by notice in writing to the other Shareholders require
      that the provisions of this clause 7.4 be applied. Within seven days of
      the notice in that behalf the Shareholders shall procure that their
      appointees on the Board shall:

7.4.1 make or concur in the making of a statutory declaration in the terms
      mentioned in section 89 of the Insolvency Act 1986 (if the state of the
      Company's affairs admits); and convene an extraordinary general meeting of
      the Company to consider: the matter from which the deadlock arose; and the
      passing of a special or extraordinary resolution to place the Company in
      members' voluntary liquidation (if a declaration is made in accordance
      with this clause) or (in any other case) in creditors' voluntary
      liquidation;

7.4.2 where the state of the Company's affairs does not admit of the making of a
      declaration under clause 7.4.1 convene a meeting of the Company's
      creditors in accordance with section 98 of the Insolvency Act 1986.

7.5   In no circumstances shall any Shareholder create an "artificial deadlock"
      and then exercise its rights under clause 7.4 to require the winding up of
      the Company. For this purpose, an "artificial deadlock" is a deadlock
      caused by any Shareholder, or its appointees on the Board, voting against
      a proposal the approval of which is required to enable the Company to
      carry on the Business properly and efficiently in accordance with the
      general trading principles set out in clause 4.

                                       19
<PAGE>

8.    TERMINATION

8.1   This Agreement shall terminate forthwith on the occurrence of any of the
      following events or circumstances:-

8.1.1 the Company going into liquidation whether voluntary or compulsory (other
      than a Members voluntary liquidation for the purposes of a bona fide
      amalgamation or reconstruction previously approved by the "A" Shareholder
      and the "B" Shareholders such approval not to be unreasonably withheld) or
      having a winding up or administration order made against it or a receiver,
      manager or administrator appointed over all or any part of its property,
      undertaking or assets or entering into any composition or other voluntary
      arrangement with its creditors or suffering any distress or execution to
      be levied on the whole or a substantial part of its property, undertaking
      or assets or seeking the benefit of any legislation for the relief of
      debtors or ceasing or threatening to cease to carry on business or
      disposing of the whole or a substantial part of its business, undertaking
      or assets; or

8.1.2 all the Shares being beneficially owned by any one person; or

8.1.3 in relation to any Shareholder upon that Shareholder and his or its
      Permitted Transferees ceasing to own any Shares; or

8.1.4 application being granted by the London Stock Exchange for any part of the
      share capital of the company to be listed on the London Stock Exchange.

8.2   This Agreement shall in respect of a Shareholder terminate forthwith upon
      the giving of not less than thirty days notice in writing to terminate by
      the other Shareholder(s) (authorised to give such notice in accordance
      with clause 12.9) (the "Non-Defaulting Shareholder(s)") to that
      Shareholder or his or its Permitted Transferee (the "Defaulting
      Shareholder") on the occurrence of any of the following events ("Events of
      Default"):-

                                       20
<PAGE>

8.2.1 the Defaulting Shareholder committing a material breach of any of the
      terms, covenants or conditions contained in this Agreement and (if capable
      of remedy) not remedying the breach (at its own cost and to the reasonable
      satisfaction of the Non-Defaulting Shareholder(s) without causing any
      material damage to the goodwill of the Business) within a reasonable
      period being not less than 30 days after notice from the Non-Defaulting
      Shareholder specifying the breach and requesting it to be so remedied; or
      8.2.2 the Company being in breach of any of its obligations under the Loan
      Agreement which event shall be deemed a default by the "B" Shareholders.

8.3   If this Agreement shall be terminated as a consequence of an Event of
      Default then on or at any time within 30 days after the date of
      termination, without prejudice to any rights of the Non-Defaulting
      Shareholder(s), the Non-Defaulting Shareholder(s) shall be entitled to
      require by notice in writing ("Notice") to the Defaulting; Shareholder
      and, where appropriate, the Company that:-

8.3.1 no further drawings shall be made by the Company under the Loan Agreement
      which shall immediately be terminated and the amount of the Facility
      outstanding (including interest) shall be immediately repaid; and/or

8.3.2 the Company be wound up in which event the Defaulting Shareholder shall
      use its Shares to vote in favour of any resolution for the said winding
      up; and/or

8.3.3 the Defaulting Shareholder shall (at the option of the Non-Defaulting
      Shareholder(s)) either:-

      (a)   purchase all (but not part only) of the Shares held or beneficially
            owned by the Non-Defaulting Shareholder(s) (and any Permitted
            Transferee who has acquired shares once held by a Non-Defaulting
            Shareholder) at the price per Share as determined or agreed in
            accordance with Article 9.8 of the Articles and as set out in the
            Notice ("Notified Price") and otherwise in the manner and on the
            terms set out in this clause 8; or

                                       21
<PAGE>

      (b)   sell or procure the sale of all (but not part only) of the Shares
            held or beneficially owned by the Defaulting Shareholder (and any
            Permitted Transferee holding shares on behalf of the Defaulting
            Shareholder or who has acquired Shares once held by the Defaulting
            Shareholder):

            (i)   if the Event of Default occurs within a period of three years
                  from the date of this Agreement at the price per Share as
                  determined in accordance with the provisions of Article 10.2;
                  or

            (ii)  if the Event of Default occurs after the expiry of a period of
                  three years from the date of this Agreement at the Notified
                  Price per Share,

            and otherwise in the manner and on the terms set out in this clause
            8;

8.3.4 upon the service by the Non-Defaulting Shareholder(s) of a Notice pursuant
      to which the Defaulting Shareholder has the option to elect whether to
      purchase or sell Shares as provided in clause 8.3.3 the Defaulting
      Shareholder shall have 14 days in which to notify the Non-Defaulting
      Shareholder(s) in writing whether it wishes to purchase or sell Shares. If
      the Defaulting Shareholder fails to give such written notification to the
      Non-Defaulting Shareholder(s) before the expiry of such 14 day period the
      Non-Defaulting Shareholder(s) shall be entitled at any time during the
      subsequent 14 days to give written notice to the Defaulting Shareholder
      making such election on behalf of the Defaulting Shareholder; and

8.3.5 any Notice given under this clause 8.3 may not be withdrawn, modified or
      varied except with the consent of both the "A" Shareholder and the "B"
      Shareholders.

8.4   Any sale or purchase of Shares under the provisions of this clause 8 shall
      be completed at the Company's registered office or such other place as the
      Shareholders may agree at 12 noon on the date 14 days after the date on
      which it has been determined in accordance with clause 8.3.4 whether the
      Defaulting Shareholder is to purchase or sell Shares, provided that if
      such day is not a Business Day, then completion shall take place at 12
      noon on the first Business Day after such day.

                                       22
<PAGE>

8.5   On completion the Shareholder selling Shares shall deliver to the
      purchaser a duly executed stock transfer transferring to the purchaser (or
      as it may direct) the Shares to be sold together with the relative
      certificate(s) therefor and all such Shares shall be sold free from any
      right of pre-emption, option, lien, charge, equity or other encumbrances
      and together with all rights attaching thereto (including dividends
      declared but not paid) at the date on which the sale is to take place and
      do such other things and execute such other documents as shall be
      necessary or as the purchaser may reasonably request to give effect to the
      sale of Shares. The Shareholder selling Shares shall forthwith upon
      execution of the relevant transfer of Shares procure the resignation at no
      cost to the Group of any Directors appointed by him or it from all
      directorships held in the Group and the indemnity set out in clause 3.15
      shall apply.

8.6   If the Shareholder selling the Shares makes default in transferring any of
      its Shares, then each Shareholder hereby irrevocably and unconditionally
      appoints each of the Directors severally his or its attorney in such
      Shareholder's name and as his or its act and deed to execute and do all
      such documents and things as the attorney shall, in his absolute
      discretion, consider necessary or desirable for the performance of such
      obligations and such Director may receive and give good discharge for the
      consideration for the Shares being sold to the purchaser and the Board
      shall (subject to the transfer being duly stamped) enter the name of the
      purchaser in the register of Members as the holder by transfer of the
      Shares so purchased by it or him. The consideration for the Shares being
      sold shall forthwith be paid by such Director into a separate bank account
      in the Company's name which shall hold such amounts and interest thereon
      in trust for the Shareholder who defaulted in transferring any Shares.

8.7   If the Defaulting Shareholder shall fail to comply with the provisions of
      clause 8.3 the Non-Defaulting Shareholder(s) may (without prejudice to any
      other rights or remedies it may have against the Defaulting Shareholder as
      a consequence of such, failure) by a further notice to the Defaulting
      Shareholder given within 30 days of the due date require that the Company
      shall be wound up pursuant to clause 8.8.

                                       23
<PAGE>

8.8   The Company shall be wound up and the Shareholders shall procure that
      their appointees on the Board shall, at the earliest practicable date:-

8.8.1 make or concur in the making of a statutory declaration in the terms
      mentioned in Section 89 Insolvency Act 1986 (if the state of the Company's
      affairs allows the making of such declaration) and subsequently convene an
      extraordinary general meeting of the Company to consider the passing of a
      special or extraordinary resolution to place the Company in Members'
      voluntary liquidation (if such declaration has been made) or (in any other
      case) in creditors' voluntary liquidation;

8.8.2 such meeting or meetings shall be held within four weeks after the making
      of any declaration made in pursuance of clause 8.8.1;

8.8.3 where the state of the Company's affairs does not allow such declaration
      as is mentioned in clause 8.8.1 to be made convene a meeting of the
      Company's creditors in accordance with Section 98 of the Insolvency Act
      1986;

8.8.4 at the extraordinary general meeting referred to in clause 8.8.1 the
      Shareholders shall vote in favour of the special or extraordinary
      resolution (as the case may be) for the winding up of the Company.

8.9   In the event that a Shareholder is a Defaulting Shareholder pursuant to
      this clause 8 then, in addition to the rights hereunder, the
      Non-Defaulting Shareholder(s) may serve on the Defaulting Shareholder a
      notice ("Disenfranchisement Notice") which, notwithstanding any other
      provision contained in the Articles, shall entitle the Non-Defaulting
      Shareholder(s):-

8.9.1 to exercise the rights of the Defaulting Shareholder to appoint and remove
      any Directors under clause 3 and any notice lodged at the registered
      office of the Company or produced to a meeting of the Directors by the
      Non-Defaulting Shareholder(s) replacing any Directors appointed by the
      Defaulting Shareholder shall be as effective as if signed on behalf of the
      Defaulting Shareholder; and

                                       24
<PAGE>

8.9.2 to require the Defaulting Shareholder to procure that any Director removed
      by the Non-Defaulting Shareholder(s) in the exercise of its rights under
      clause 8.9.1 shall deliver to the Non-Defaulting Shareholder(s) a written
      resignation under seal from all directorships held in the Group confirming
      that he or it has no claim against the Group whether for loss of office or
      otherwise howsoever failing which the indemnity set out in clause 3.13
      shall apply.

8.10  Following the service of a Disenfranchisement Notice the Defaulting
      Shareholder shall cease to be entitled to exercise the right to appoint or
      remove any Directors pursuant to clause 3.

8.11  The termination of this Agreement shall not affect the obligations of the
      Shareholders expressed or intended by the Shareholders to continue after
      such termination nor the liabilities of the Defaulting Shareholder and
      shall be without prejudice to any rights that the Non-Defaulting
      Shareholder may have against the Defaulting Shareholder arising prior to
      or as a result of such termination.

9.    CONSEQUENCES OF TERMINATION OR CESSATION OF THIS AGREEMENT

9.1   Upon termination of this Agreement pursuant to clauses 8.1 and 8.2, the
      provisions of this clause and clauses 1, 5 and 8 shall survive such
      cessation or termination (as the case may be) and continue in full force
      and effect, but all other rights and obligations of the parties shall
      immediately cease (without prejudice to the parties' accrued rights and
      liabilities under this Agreement at the time it ceases to have effect or
      is terminated (as the case may be)).

9.2   In the event that SIL ceases to hold Shares, SIL shall, upon reasonable
      notice being given by the Company to SIL, allow the Company and its agents
      access to, and to take copies of, all Underwriting Information held by or
      under the control of SIL.

                                       25
<PAGE>

10.   VAT

      All sums payable by any party to this Agreement shall be exclusive of
      Value Added Tax thereon (if any) which shall be payable in addition
      thereto.

11.   ANNOUNCEMENTS

      None of the Parties shall (otherwise than as required by law or by the
      Council of the London Stock Exchange or the Panel on Take-overs and
      Mergers or in relation to information which is publicly available) make
      any announcement or divulge any information concerning the Shareholder's
      involvement in the Company or the terms of the Agreement without the
      Shareholder's prior written consent.

12.   GENERAL

12.1  Nothing in this Agreement or in any document referred to in it shall
      constitute or be deemed to constitute a partnership or agency relationship
      between any of the Parties, nor (save as expressly provided herein) shall
      the execution, completion and implementation of this Agreement confer on
      any Party any power to bind or impose any obligations on any other Party
      or to pledge the credit of any other Party or to create any fiduciary
      relationship with any other Party.

12.2  This Agreement together with the Articles and any other documents which
      this Agreement expressly requires shall be signed shall constitute the
      entire understanding and agreement between the Parties in relation to the
      subject matter of this Agreement, expressly exclude any warranty,
      condition or other undertaking implied at law or by custom and supersede
      all previous agreements and understandings between the Parties with
      respect thereto and each of the Parties acknowledges and confirms that it
      does not enter into this Agreement in reliance on any representation,
      warranty or other undertaking not fully reflected in the terms of this
      Agreement, the Articles or any other document which this Agreement
      expressly requires shall be signed.

12.3  Any variation of this Agreement shall be binding only if it is recorded in
      a document signed by or on behalf of the Parties.

                                       26
<PAGE>

12.4  None of the Parties may assign any of their respective rights or
      obligations under the Agreement nor any of the documents which this
      Agreement expressly requires to be signed in whole or in part (otherwise
      than pursuant to a transfer of Shares in accordance in all respects with
      the provisions and requirements of this Agreement and of the Articles).

12.5  Any right or remedy of the Parties in respect of a breach of any provision
      of this Agreement shall be in addition and without prejudice to all other
      rights and remedies of the Parties and no failure to exercise or delay in
      exercising or enforcing any right or remedy shall operate to impair or
      constitute a waiver by that Party of that or any of its other rights or
      remedies and no single or partial exercise or enforcement of any such
      right or remedy shall preclude or restrict any other or further exercise
      or enforcement of any such right or remedy.

12.6  In the event of any conflict between the Articles and this Agreement the
      Shareholders agree to consent to the holding of an extraordinary general
      meeting of the Company on short notice at which a special resolution in a
      form prepared by the Company and approved by the Shareholders is proposed
      to amend the Articles so that they do not conflict with this Agreement and
      pending the passing of such resolution the Shareholders agree that the
      terms of this Agreement shall prevail so as to govern the exercise by the
      Shareholders of their respective rights as Shareholders in the Company.

12.7  If any of the provisions of this Agreement are held to be invalid, illegal
      or unenforceable in any respect under any law, the validity, legality and
      enforceability of the remainder of this Agreement shall not be affected.

12.8  If any provision contained in this Agreement or in the Articles refers to
      the obtaining by any person of any consent, approval or authorisation from
      the "A" Shareholder or the "B" Shareholders such consent, approval or
      authorisation shall be deemed to have been obtained if the consent,
      approval or authorisation in writing of the holder or holders of seventy
      five per cent of the Shares of the relevant class has been obtained.

                                       27
<PAGE>

12.9  If any provision in this Agreement refers to a requirement of any consent,
      approval, authorisation or the giving of any notice from the
      Non-Defaulting Shareholders, such consent, approval, authorisation or
      giving of notice shall be deemed to have been approved or obtained if the
      consent, approval or authorisation in writing of the holder(s) of a
      majority of the nominal value of all the Shares in issue at such time
      (excluding the Shares held by the Defaulting Shareholder) has been
      obtained.

12.10 If under any clause of this Agreement a Member is required to pay any sum
      to any Member holding Shares of the other class, any Member holding Shares
      of that other class ("Recipient") shall be irrevocably authorised on
      behalf of all the Members holding Shares of the same class as the
      Recipient to receive and give a good receipt for such sum.

12.11 The Parties shall and shall use all reasonable endeavours to procure that
      any necessary third party shall do, execute and perform all such further
      deeds, documents, assurances, acts and things as may be reasonably
      required to give effect to this Agreement including, without limitation,
      calling meetings of Members of the Company, any Group Company, the Board
      and the board of any Group Company and voting at all such meetings in
      favour of all resolutions remaining if desirable for such purpose and the
      signing of all waivers of pre-emption rights which either Shareholder may
      have in relation to the issue or transfer of Shares.

12.12 Each of the obligations, indemnities and undertakings entered into or made
      by or on behalf of any of the Parties (excluding any obligation fully
      performed at Completion) shall continue in full force and effect
      notwithstanding Completion taking place.

12.13 This Agreement may be executed in any number of counterparts and by the
      different Parties on separate counterparts, each of which when executed
      and delivered shall constitute an original, but all the counterparts
      together shall constitute one and the same instrument.

13.   COSTS

      Each Party shall pay its own costs in relation to the preparation,
      execution and carrying into effect of this Agreement and of all the other
      documents referred to in it.

                                       28
<PAGE>

14.   COMMUNICATIONS

14.1  All communications between the Parties with respect to this Agreement
      shall be in writing and delivered by hand or sent by pre-paid post (first
      class if inland, airmail if overseas) or facsimile telecopier ("fax") to
      the address of the addressee; as set out in this Agreement, or to such
      other address or fax number in England as the addressee may from time to
      time have notified for the purposes of this clause or as specified in
      clause 14.3.

14.2  Communications shall be deemed to have been received:-

14.2.1 if delivered by hand, on the day of delivery;

14.2.2 if sent by first class post, two Business Days after posting exclusive of
      the day of posting (or five Business Days in the case of a posting to an
      address outside the United Kingdom);

14.2.3 if sent by fax, at the time of transmission or, if the time of
      transmission is not during the addressee's normal business hours, at 9.30
      am on the next Business Day.

14.3  Communications addressed to the "A" Shareholder shall be marked for the
      attention of "the Chief Underwriting Officer" with a copy to "the General
      Counsel".

14.4  In proving service:-

14.4.1 by delivery by hand, it shall be necessary only to produce a receipt for
      the communication signed by or on behalf of the addressee;

14.4.2 by post, it shall be necessary only to prove that the communication was
      contained in an envelope which was duly addressed and posted in accordance
      with this clause; and

14.4.3 by fax, it shall be necessary only for the communication or a
      confirmatory letter to have been delivered by hand or sent by first class
      post on the same day but failure of the addressee to receive such
      confirmation shall not invalidate the relevant communication deemed given
      by fax.

                                       29
<PAGE>

15.   PROPER LAW

15.1  This Agreement shall be governed by English law and the Parties
      irrevocably submit to the exclusive jurisdiction of the English courts.

15.2  SIL irrevocably appoints Chris Croft of Onecounsel, 2 Grimstone Road,
      London SW6 3QP as their agent to receive on their behalf in England
      service of any proceedings arising out of or in connection with this
      Agreement. Such service shall be deemed completed on delivery to such
      agent (whether or not it is forwarded to and received by SIL). SIL shall
      notify the Parties of any change in address of the agent. If for any
      reason such agent ceases to be able to act as agent or no longer has an
      address in England, SIL irrevocably agrees that within 20 Business Days
      they shall use their reasonable endeavours to appoint a substitute agent
      reasonably acceptable to the Board with an address in England and deliver
      to the Company a copy of the new agent's acceptance of that appointment,
      together with its name, address and fax number. Nothing contained in this
      Agreement shall affect the right to serve process in any other manner
      permitted by law.

                                       30
<PAGE>

                                  Schedule One

                               THE B SHAREHOLDERS

         Name and Address

Philip Lyall Cottle
Ryelands
Stow
Lincolnshire
LNl 2DE

Julian Marsden Roberts
4 Nicosia Road, London,
SW18 3RN

Justin Mundy
The Bine
Faintree
Bridgenorth
Shropshire
WV 16 6RH

Geoffrey Trew
27 Rusholme Road
London
SW15 3LF

Hugh Maurice Lyall Cottle
Beech Tree Cottage
Well Lane
Mollington
Chester
CH 1 6LD

John Forgach
Avenida Henrique Dumont,
68/301
Rio de Janeiro
RJ 22410-060

                                       31
<PAGE>

                                  Schedule Two

                                     Part 1

                                   The Company

<TABLE>
<S>                                     <C>
Registered number:-                     4968264

Date of Incorporation:-                 18 November 2003

Registered Office:-                     Beech Trees Cottage, Well Lane, Mollington, Chester, CM1 6LD

Authorised Capital:-                    20,880  "A"  Ordinary  Shares  of (pound)1 each,  14,220  "B"  Ordinary
                                        Shares of (pound)1 each and 5,000,000,000  Deferred Shares of (pound)0.00001p
                                        each

Issued Capital:-                        20,001 "A" Ordinary Shares of (pound)1 each
                                        13,334 "B" Ordinary Shares of (pound)1 each

Shareholders:-                          20,001 "A" Ordinary Shares of (pound)1 each - Strategy Insurance
                                        Limited
                                        5,400 "B" Ordinary Shares of (pound)1 each - P L Cottle
                                        3,400 "B" Ordinary Shares of (pound)1 each - J M Roberts
                                        1,400 "B" Ordinary Shares of (pound)1 each - J Mundy
                                        1,400 "B" Ordinary Shares of (pound)1 each - G Trew
                                        1,066 "B" Ordinary Shares of (pound)1 each - H M L Cottle
                                        667 "B" Ordinary Shares of (pound)1 each - J Forgach

Directors:-                             Hugh Maurice Lyall Cottle
                                        Philip Cottle
                                        John Forgach
                                        Justin Mundy
                                        Julian Roberts
                                        Geoffrey Trew
                                        (all appointed as "B" Directors in accordance with Article 19.5
                                        of the Articles)
</TABLE>

                                       32
<PAGE>

<TABLE>
<S>                                     <C>
Secretary:-                             Hugh Maurice Lyall Cottle

Accounting Reference Date:-             30 November

Subsisting Mortgages and Charges:-      None
</TABLE>

                                       33
<PAGE>

                                     Part 2

                                The Subsidiaries

1.       FORESTRE LIMITED

<TABLE>
<S>                                     <C>
Registered number:-                     4995829

Date of Incorporation:-                 15 December 2003

Registered Office:                      Beech Trees Cottage
                                        Well Lane
                                        Mollington
                                        Chester
                                        CM 1 6LD

Authorised Capital:-                    (pound)1,000 Ordinary Shares of (pound)1.00 each

Issued Share Capital:-                  One Ordinary Share of (pound)1

Shareholder:-                           ForestRe (Holdings) Limited

Directors:-                             Hugh Maurice Lyall Cottle and Philip Lyall Cottle

Secretary:-                             Hugh Maurice Lyall Cottle

Accounting Reference Date:-             30 November

Subsisting Mortgages and
Charges:-                               None
</TABLE>

                                       34
<PAGE>

2. AGROFOREST RISK MANAGEMENT LIMITED

<TABLE>
<S>                                     <C>
Registered number:-                     5368318

Date of Incorporation:-                 17 February 2005

Registered Office:                      Crosby Court, 38 Bishops Gate
                                        London EC2N 4DT

Authorised Capital:-                    (pound)100 Ordinary Shares of (pound)1.00 each

Issued Share Capital:-                  Two Ordinary Shares of (pound)1 each

Shareholder:-                           ForestRe (Holdings) Limited

Directors:-                             Hugh Maurice Lyall Cottle and
                                        Philip Lyall Cottle

Secretary:-                             Hugh Maurice Lyall Cottle

Accounting Reference Date:-             28 February

Subsisting Mortgages and
Charges:-                               None
</TABLE>

                                       35
<PAGE>

                                 Schedule Three

                             Restricted Transactions

1.    Increase, reduce or otherwise alter the authorised or issued share or loan
      capital (including the share premium account or other capital reserve) of
      the Company or any Group Company or its capital structure or make any
      variation to the rights attached to any of its shares.

2.    Grant or create any option or other like rights to acquire any shares or
      securities convertible into shares in the Company or any Group Company,
      purchase or redeem or make any payment to any person for giving up his
      rights to any share capital on its cancellation or extinguishment save as
      set out in the Articles.

3.    Make any repayment of any loan stock or any loan notes issued by the
      Company or any Group Company or any term loan made available to the Group
      (other than the making of an repayment in accordance with the terms of the
      Loan Agreement).

4.    Create or permit the creation of or suffer to subsist any mortgage or
      charge whether fixed or floating or any other encumbrance or security
      interest of a similar nature on the undertaking, property or assets or any
      part thereof of the Company or any Group Company or issue any debentures
      or debenture stock other than as required by the Loan Agreement.

5.    Enter into or give or permit or suffer to subsist any guarantee of or
      indemnity in respect of the due payment of money or performance of any
      contract, engagement or obligation by any other person or otherwise unless
      it is solely in relation to obligations incurred in the ordinary course of
      business by any other Group Company.

6.    Borrow or raise any monies which are not available for use by the Group.

7.    Engage or dismiss any Director or senior manager or any other employee
      earning remuneration (including all fees payable to him by the Group)
      exceeding (pound)70,000 per annum.

                                       36
<PAGE>

8.    Increase the remuneration (including all fees payable to him by the Group)
      of any Director or employee currently earning at least (pound)50,000 by
      more than 5% per annum.

9.    In relation to any such Director or employee agree to or accept any
      variation in his terms of employment (other than agreeing to increase his
      remuneration within the limitation referred to in paragraph 9), waive or
      agree not to take any action in respect of any material breach by any such
      person of his contract of employment.

10.   Lease, assign or grant any license in respect of any property or assets
      other than the sale of current assets in the ordinary course of trading or
      grant or dispose of any interest in land owned or leased by the Company or
      take or omit to take any action which could prejudice the continuation of
      any lease to which it is entitled.

11.   Dispose, whether outright or by way of license or otherwise howsoever, any
      IP Rights owned by the Company or any Group Company as the case may be.

12.   Enter into or vary any unusual or onerous contract or agreement or
      arrangement or transaction or, otherwise than in the ordinary course of
      trading and on an arm's length basis, any material or major or long term
      contract.

13.   Enter into any transaction or carry out any dealing which is not on arm's
      length terms or give any service otherwise than at market value.

14.   Agree to any material change in the terms of any material supply, agency
      or distribution agreement to which the Company or any Group Company is
      party from time to time.

15.   Enter into or compromise or settle any substantial litigation other than
      in the ordinary course of business.

16.   Apply for any of the shares in the Company or any Group Company to be
      listed or dealt in on the London Stock Exchange or any recognised
      investment exchange.

17.   Do or permit or suffer to be done any act or thing whereby any Group
      Company would cease to be a Subsidiary or sell or dispose of any share in
      a Subsidiary.

                                       37
<PAGE>

18.   Make a substantial alteration or reduction in the nature or extent of the
      Business carried on by the Company or any Group Company.

19.   Otherwise than in the ordinary course of business enter into any
      partnership or joint venture or consortium arrangement.

20.   Dispose of the whole or a material part of the undertaking assets or
      shares of any Group Company or any interest therein or form or acquire any
      subsidiary or subsidiary undertaking or acquire the whole or part of the
      undertaking assets or shares of any other person, firm or company.

21.   Cease or propose to cease to carry on the Business of the Company or any
      Group Company or take any steps to wind up the Company or any Group
      Company save where such company is insolvent or take any steps to place
      the Company or any Group Company into administration.

22.   Enter into or vary any transaction or arrangement requiring approval under
      section 320 to 322 Companies Act or which if any of the Shares were listed
      on the London Stock Exchange would constitute a class 1 or class 4
      transaction (as defined in the publication entitled "Admission of
      Securities to Listing" issued by the London Stock Exchange).

23.   Delegate any matter to any committee of Directors of the Company or any
      Group Company (unless an "A" and a "B" Director are members of such
      committee) or take any decisions which are material to the Company or the
      Group as a whole otherwise than at a meeting of the Directors.

24.   Make any change to the Company's or any Group Company's:-

24.1  Auditors;

24.2  bankers or the terms of the mandate given to such bankers in relation to
      its accounts;

24.3  accounting reference date.

                                       38
<PAGE>

25.   Make any alteration to the memorandum and articles or association of the
      Company or any Group Company.

26.   Make any distribution by way of dividend out of the profits of the Company
      or otherwise or agree to capitalise any reserves or apply any amount
      standing to the credit of the share premium account or capital redemption
      reserve for any purpose.

27.   Save as referred to in clause 4.6 of this Agreement, establish any bonus,
      profit sharing, share option or other incentive scheme (whether legally
      binding or not) for Directors and/or employees of the Group or vary any
      such scheme which has been established or grant any option over or in
      respect of any shares in the capital of the Company pursuant to such a
      scheme.

                                       39
<PAGE>

                                  Schedule Four

                                Deed of Adherence

THIS DEED is made on       200[ ]

BETWEEN:

(1)   [include names and addresses of existing parties other than Transferor];

(2)   [[               ]  of   [                                              ]]
      [[                 ], a company registered in [England] under number [   ]
      the registered office of which is at [
                                          ]] ("Transferor");

(3)   [[                 ] of
      [                                                                     ]]

      [[                          ], a company registered in [England] under
      number [          ] the registered office of which is at [             ]]
      ("New Shareholder").

1.    INTERPRETATION

1.1   In this deed, unless the context otherwise requires, words defined in the
      Shareholders Agreement shall have the same meanings in this deed and:

      "Completion" means the completion of the sale and transfer of the
      Transferred Interest to take place at the offices of [

      ] on [ ] in accordance with the Transfer Agreement;

      "Excepted Rights" has the meaning set out in clause [ ];

      "Shareholders' Agreement" means the agreement dated [ ] 2005 and made
      between Strategy Insurance Limited (1), the B Shareholders (2) and the
      Company (3) and relating to the conduct of the Company's Business;

                                       40
<PAGE>

      ["Transfer Agreement" means an agreement to be dated [ ] and made between
      the Transferor and the New Shareholder;]

      "Transfer Date" has the meaning set out in clause [3.1]; and

      "Transferred Interest" means the transfer of the [ ] Shares from the
      Transferor to the New Shareholder.

1.2   The provisions of clause 1.2 of the Shareholders' Agreement shall apply to
      this deed.

1.3   Headings and titles are used for ease of reference only and do not affect
      the interpretation of this agreement.

2.    RECITALS

2.1   The Transferor [is a party to] [has acceded by means of a deed dated [ ]
      to] the Shareholders' Agreement.

2.2   The Transferor wishes to transfer to the New Shareholder the Transferred
      Interest and the New Shareholder has agreed to purchase the Transferred
      Interest [subject to and in accordance with the terms and conditions of
      the Transfer Agreement] and has agreed to execute this deed of adherence
      pursuant to clause 6 of the Shareholders' Agreement.

3.    UNDERTAKINGS OF THE NEW SHAREHOLDER

3.1   In consideration of the agreement of the Transferor to transfer the
      Transferred Interest to the New Shareholder, the New Shareholder
      undertakes [, subject to clause [3.2],] to each other party to this deed
      that it will, with effect from the date of transfer by the Transferor to
      the New Shareholder of the Transferred Interest ("Transfer Date") and
      without prejudice to any liability of the Transferor in respect of any
      breach by it of its obligations under the Shareholders Agreement prior to
      the Transfer Date, assume, perform and comply with each of the obligations
      of the Transferor under the Shareholders' Agreement as if it had been a
      party to the Shareholders' Agreement at the date of its execution.

                                       41
<PAGE>

[3.2  In consideration of the undertakings given by the New Shareholder under
      clause [3.1], the parties to this deed acknowledge and agree that the
      obligations of the Transferor under the Shareholders' Agreement shall,
      with effect from the Transfer Date cease.]

NOTE: This applies only of a transfer of all the Transferor's Shares.

4.    RIGHTS OF THE NEW SHAREHOLDER

      The parties to this deed (other than the New Shareholder) agree that there
      should be accorded to the New Shareholder with effect from the Transfer
      Date all the rights of the Transferor with respect to the Transferred
      Interest (in each case without prejudice to the rights of the Transferor
      under the Shareholders' Agreement in respect of any breach by any other
      party to it of its obligations thereunder at any time prior to the
      Transfer Date ("Excepted Rights") as if the New Shareholder had been a
      party to the Shareholders' Agreement at the date of its execution and,
      with effect from the Transfer Date, the Transferor shall cease to be
      entitled to those rights.

5.    NOTICES

      For the purposes of clause 14 of the Shareholders' Agreement (relating to
      communications), communications addressed to the New Shareholder shall be
      marked for the attention of [" "] and sent to the address of the New
      Shareholder as set out in this deed, or to such other address or fax
      number in England as the New Shareholder may from time to time have
      notified to each of the other parties to this deed and the Company for
      this purpose.

6.    ASSIGNMENT AND TRANSFER

      The parties to this deed hereby acknowledge and agree that, save as
      provided in clause 12.4 of the Shareholders Agreement, no party shall have
      any right to assign, transfer or dispose of the benefit (or any part
      thereof) or the burden (or any part thereof) of this deed without the
      prior written consent of the other parties.

                                       42
<PAGE>

7.    GENERAL PROVISIONS

      The provisions of clause 12 [general] of the Shareholders Agreement shall
      apply mutatis mutandis to this deed as if they were expressly set out in
      this deed.

8.    PROPER LAW

      This deed shall be governed by English law and the parties irrevocably
      submit to the exclusive jurisdiction of the English court.

                                       43
<PAGE>

EXECUTED as a DEED by                       )
STRATEGY INSURANCE LIMITED                  )
acting by two Authorised Signatures:        )

.....................................
Authorised Signatories

.....................................
Authorised Signatories

SIGNED and DELIVERED as a DEED by           )
PHILIP LYALL COTTLE                         )
in the presence of:                         )

Witness Name:                               )

Address:                                    )

SIGNED and DELIVERED as a DEED by           )
JULIAN ROBERTS                              )
in the presence:                            )

Witness Name:                               )

Address:                                    )

SIGNED and DELIVERED as a DEED by           )
JUSTIN MUNDY                                )
in the presence of:                         )

Witness Name:                               )

Address:                                    )

                                       44
<PAGE>

SIGNED and DELIVERED as a DEED by           )
GEOFFREY TREW                               )
in the presence of:                         )

Witness Name:                               )

Address:                                    )

SIGNED and DELIVERED as a DEED by           )
HUGH MAURICE LYALL COTTLE                   )
in the presence of:                         )

Witness Name:                               )

Address:                                    )

SIGNED and DELIVERED as a DEED by           )
JOHN FORGACH                                )
in the presence of:                         )

Witness Name:                               )

Address:                                    )

SIGNED and DELIVERED                        )
as a DEED by                                )
FORESTRE (HOLDINGS) LIMITED                 )
acting by two Directors or a Director and   )
Company Secretary                           )

Director....................................)

Director....................................)

                                       45

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