Document:

<PAGE>

                                                                   EXHIBIT 10.50

                         [LETTERHEAD OF BOS(USA), INC.]

                                                              September 25, 2002

FirstCity Financial Corporation
Waco, Texas 76712
Attention:  Jim Sartain, CEO

Dear Sirs:

         The undersigned, BoS (USA) Inc. (the "Lender"), hereby confirms that,
subject to and substantially on the terms and conditions outlined below, it is
prepared to extend to your wholly owned subsidiary, FirstCity Consumer Lending
Corporation (the "Borrower" or "CLC"), on your behalf, the credit facility
outlined below:

Borrower
--------
FirstCity Consumer Lending Corporation, a Texas corporation

Amount and Type of Facility
---------------------------
$16,000,000 term loan (the "Loan"), borrowable only on the Closing Date. As used
herein, "Closing Date" shall mean the earlier of (x) the date that the loan is
made, or (y) December 1, 2002.

Agent
-----
BOS (USA) Inc.

Use of Proceeds
---------------
Dividend to FirstCity Financial Corporation ("FC" or "Guarantor"), to be used by
FC as follows: (i) to pay the cash portion of the purchase price payable to
holders of its New Preferred Stock, par value $0.01 per share (the "Preferred
Stock"), who tender their Preferred Stock pursuant to FC's Exchange Offer, and
(ii) the balance, in payment of indebtedness outstanding under FC's existing
loan agreement with B-USA and Bank of Scotland (among others). As used herein,
"Exchange Offer" shall mean FC's proposed offer to exchange each outstanding
share of its Preferred Stock for, at the election of each holder thereof, either
(x) two shares of FC's common stock and $10.00 cash or (y) three shares of FC's
common stock and $8.00 cash.

Interest Rate
-------------
1, 3, 6 or 9-month Libor (or such other period as Lender agrees to) plus 1.0%
per annum, payable in arrears.

Interest will be paid at the end of each interest period and, in the case of
Libor periods of more than three months, at the end of every third month.

Interest will be computed on the basis of a 360-day year and the actual number
of days elapsed. The agreement will contain standard increased cost provisions
and Eurodollar indemnities relating to, among other things, reserve and capital
adequacy requirements, funding and reemployment losses, change of law,
withholding and other tax matters, and the like.

<PAGE>

Interest Rate After Default
---------------------------
2% in excess of then-current rate, but not less than 18% at any time after
acceleration of the Loan or bankruptcy of the Borrower, FC or FirstCity Funding
L.P., a Texas limited partnership ("Funding").

Arrangement Fee
---------------
As consideration for Lender agreeing to make the Loan and to do so on a
non-recourse basis, CLC will pay Lender 20%:

         (x) of all proceeds and other amounts paid to CLC or any of its
affiliates from any sale or other disposition (regardless of when such sale or
other disposition occurs) of, and

         (y) of all dividends and other distributions (other than "tax
distributions" required to be reinvested in Drive) paid to CLC or any of its
affiliates by Drive Financial Services LP ("Drive") or Drive GP LLC ("Drive-GP")
(regardless of when such dividend or other distribution occurs) on,

(i) CLC's beneficial interest in 20% of the outstanding partnership interests of
Drive, and (ii) CLC's record interest in 20% of the outstanding membership
interests of Drive-GP, in each case in excess of $16,000,000 in the aggregate.
The obligation to pay the foregoing amounts will be a joint and several one of
Borrower and Guarantor.

Lender shall also be entitled to the foregoing 20% (on the excess) to the extent
that the aggregate proceeds from any foreclosure of its collateral for the Loan
exceeds the amount Borrower owes it under the Loan Agreement (plus costs of
foreclosure).

For purposes of the foregoing provisions, and those under "Mandatory
Prepayments" below, amounts paid on or after the date of the Loan as interest on
or in repayment of (or in redemption of) loans made on or after the date of the
Loan by CLC or any of its affiliates to Drive in compliance with Section 4.7 of
the Agreement Among Members shall be treated as dividends paid to CLC or the
relevant affiliate at the time such payment of interest, principal or redemption
payment is made.

CLC's obligation to pay this fee will be collateralized by a security interest
in the same collateral that secures the Loan and the guarantee; these security
interests will remain even after the Loan is paid off.

Maturity
--------
5 years from Closing Date.

Scheduled Amortization
----------------------
None

Mandatory Prepayments
---------------------
From 20/31 of (x) any proceeds payable to CLC or Funding from any sale or other
disposition of CLC's record or beneficial interests in Drive and Drive-GP, and
(y) any dividends or other distributions (other than "tax distributions"
required to be reinvested in Drive) paid in respect of CLC's record or
beneficial interests in Drive and Drive-GP.

Voluntary Prepayments
---------------------
Permitted without penalty at any time.

                                      -2-

<PAGE>

Recourse
--------
Both the Loan and the Guarantee will be "non-recourse" obligations, i.e. the
Lender's recourse will not be to the general credit of the Borrower or Guarantor
but only to the collateral pledged as security for their respective obligations
(subject to certain exceptions).

The "non-recourse" provisions will not apply to (x) expenses incurred in
connection with the enforcement and collection of the obligations after maturity
(by acceleration or otherwise) if the enforcement of the obligation or judicial
or non-judicial foreclosure proceedings with respect to the collateral is
challenged or opposed by Borrower, Guarantor or any person or entity acting on
behalf of either, or (y) any damages incurred due to (i) any fraud by Borrower
or Guarantor, (ii) the misapplication of any funds that may come into Borrower's
or Guarantor's possession or control, or (iii) the breach of certain
representations or warranties made in the loan documents, or (iv) costs and
expenses incurred in connection with any of the foregoing matters.

Security
--------
The facility will be secured by:

     o  A perfected, first priority security interest in limited partnership
interests in Drive Financial Services LP ("Drive Partnership Interests") held by
Funding equal to 20% of all Drive Partnership Interests outstanding from time to
time.

     o  A perfected, first priority security interest in the limited liability
company membership (and like) interests in Drive GP LLC ("Drive-GP Membership
Interests") held by Borrower equal to 20% of all Drive Membership Interests
outstanding from time to time.

     o  A perfected, first priority security interest in limited partnership
interests in FirstCity Funding L.P. ("Funding Partnership Interests") held by
Borrower equal to 80% of all Funding Partnership Interests outstanding from time
to time (or such greater or lesser amount as shall represent at the time a
beneficial interest in 20% of all Drive Membership Interests outstanding at the
time).

     o  A perfected, first priority security interest in Funding Partnership
Interests held by Drive Holdings LP equal to 20% of all Funding Partnership
Interests outstanding from time to time.

     o  Pledge (first priority) of 100% of the outstanding capital stock of
FirstCity Funding GP Corp.

     o  A perfected, first priority security interest in all proceeds and other
amounts payable to CLC or any of its affiliates from any sale or other
disposition of (i) its beneficial interest in 20% of all Drive Partnership
Interests outstanding from time to time, and (ii) its record interest in 20% of
all Drive Membership Interests outstanding from time to time.

     o  Pledge (first priority) of 20/31 of the aggregate principal amount of
all promissory notes issued by Drive to Funding or CLC which evidence monies
reinvested by such entities of distributions received by them on account of tax
distributions required to be made by Drive to Management Members (as defined in
the June SPA, as hereafter defined).

Both Guarantor and Borrower will be prohibited from transferring, or granting
any liens in, any equity interests owned by either of them that have been issued
by any issuer of the equity interests in which the Lender is being granted
liens. Lender acknowledges that liens currently exist, in favor of Bank of
Scotland or certain of its affiliates, in all or much of the foregoing
collateral.

                                      -3-
<PAGE>

Lender shall not be required to elect which of the collateral to foreclose on
but shall be entitled (subject to applicable law) to foreclose on such of the
collateral as its chooses. Lender, however, will seek in the documentation for
the Loan to provide that, if it is necessary to foreclose on equity interests
pledged by Borrower or Guarantor that constitute or represent, directly or
indirectly, more than 20% of all outstanding Drive Partnership Interests and 20%
of all outstanding Drive Membership Interests, Lender will make equitable
arrangements with the relevant pledgor to grant it a beneficial interest in such
excess or to otherwise provide that the net proceeds of such excess, when
monetized, will be paid to that pledgor.

Guarantor
---------
FirstCity Financial Corporation, a Delaware corporation

The Guaranty will be secured by a pledge (first priority) of all of Guarantor's
stock in the Borrower, which shall constitute 100% of Borrower's capital stock.

Provisions
----------
The loan documents will contain various provisions including, but not limited
to, conditions precedent to lending (including an opinion of counsel to the
Relevant Entities), covenants, defaults and representations appropriate in
Lender's opinion for the proposed credit facility. As used herein, "Relevant
Entities" shall mean the Guarantor, the Borrower, Funding, FirstCity Funding GP
Corp. ("Funding-GP"), Drive and Drive-GP.

Without limitation of the foregoing's generality, the loan documents will
provide that a default under any other loan agreement to which Borrower or
Guarantor is a party will constitute a default under the loan agreement with the
Borrower for the Loan (said loan agreement, the "Loan Agreement").

Conditions Precedent
--------------------
Among the conditions precedent shall be:

Irrevocable acceptance of the Exchange Offer by holders of at least 80% of the
outstanding shares of the Preferred Stock.

Effectiveness of the Registration Statement for the Exchange Offer and no legal
action pending or threatened concerning it.

All required governmental and other approvals to the Loan and the transactions
contemplated hereby received and in effect and all applicable waiting periods
expired.

The facilities outstanding under FC's existing loan agreement with Bank of
Scotland and affiliates (the "Existing FC Loan Agreement") shall have been
restructured in a manner satisfactory to the bank.

A proposed new loan agreement between Bank of Scotland and FirstCity Commercial
Corporation (or another mutually satisfactory subsidiary of FC), pursuant to
which the bank would lend, subject to the terms and conditions thereof, term
loans for the acquisition of distressed debt and revolving credit loans (said
proposed agreement, the "Proposed New FC Loan Agreement"), shall have become
effective and an initial loan made thereunder.

No Material Adverse Change, in the Lender's opinion, since December 31, 2001
with respect to the Drive Group taken as a whole or any member thereof, or with
respect to the FC Group taken as a whole or certain specified subsidiaries of
FC. Lender shall not have become aware of any previously undisclosed information
with respect to any member of the FC Group, any Management Member, any Drive
Entity or any Auto Entity which, in Lender's opinion, would have a Material
Adverse Effect.

                                      -4-

<PAGE>

No FC Party, Drive Entity, member of the BOS Group or Funding shall have been
(in Lender's opinion) the subject of ridicule, contempt or disgrace, or had its
business, operations or reputation adversely affected, by virtue of any act (or
omission to act) by any FC Party, any Management Member, any Drive Entity or any
Auto Entity. Lender shall not have become aware of any previously undisclosed
information with respect to any FC Party, any Management Member, any Drive
Entity or any Auto Entity which, in Lender's opinion, would (if publicly
disclosed) subject any FC Party, any Drive Entity, or any member of the BOS
Group to ridicule, contempt or disgrace or adversely affect the business,
operations or reputation of any FC Party, any Drive Entity, or any member of the
BOS Group.

Capitalized terms defined in the foregoing two paragraphs and not otherwise
defined have the meanings provided in the Securities Purchase Agreement dated as
of June 11, 2002 (the "June SPA") to which Guarantor and Borrower were party,
except that references in the definition of Material Adverse Change therein to
"Agreement" and "Related Documents" shall be considered references to the Loan
Agreement and documents related thereto.

(The inclusion herein of certain conditions precedent contained in the June SPA
does not mean that other conditions precedent therein not specified herein
(primarily, the relevant provisions of sections 5.1, 5.2, 5.4, 5.7, 5.9, 5.10,
5.11, 5.19, 5.20, 5.21) will not be conditions precedent to the making of the
Loan.)

Execution of an intercreditor agreement among B-USA as lender under the Loan
Agreement and the lenders under the Existing FC Loan Agreement and the Proposed
New FC Loan Agreement.

Lender's receipt of, and satisfaction with, the year-to date financial
statements of Guarantor, Borrower, Funding and Drive.

Drive-GP consent to the pledge of the Drive Partnership Interests by Funding and
the Required Interest (as defined) of the members of Drive-GP to the pledge of
the Drive Membership Interests.

To extent requested by Lender, amendments to charter documents or other
assurances to assure no diminution in percentage of equity interests pledged as
collateral.

All fees and expenses required to have been reimbursed to B-USA or its
affiliates pursuant to the June SPA, whether by FC or Drive or otherwise, shall
have been paid in full.

B-USA's obligations under the June SPA shall have been terminated.

A legal opinion of counsel for the Borrower to the effect, among other things,
that the dividend proposed to be paid by the Borrower to the Guarantor is valid
under applicable law.

Purchase by FC of the 20% ownership in First City Holdings, currently held by
senior management, on terms satisfactory to all parties.

Expenses
--------
All charges and expenses (including those of special and local counsel, and
accountants and other external third parties) incurred by Lender or its
affiliates in connection with the proposed credit facility, including but not
limited to legal costs incurred in connection with the preparation of this
letter agreement and other appropriate legal documents and stamp or other
recording taxes or charges, shall be for the Borrower's and Guarantor's account
whether or not the transaction hereby contemplated shall be consummated.

                                      -5-
<PAGE>

Indemnification
---------------
The Guarantor and the Borrower hereby jointly and severally agree to indemnify
the Lender and its affiliates and their respective present and future officers,
directors, employees and agents (collectively the "Indemnified Parties" )
against, and agree to hold the Indemnified Parties harmless from, any and all
liability, losses, damages and expenses (including reasonable counsel fees and
expenses) of any kind whatsoever which may be incurred by any of the Indemnified
Parties arising out of, in any way connected with, or as a result of (i) the
execution and delivery of this letter agreement and the transactions
contemplated hereby, the Loan Agreement, any other document contemplated hereby
or thereby or the performance by the parties hereto or thereto of their
respective obligations hereunder or thereunder, or (ii) any claim, action, suit,
investigation or proceeding relating to the Borrower or Guarantor or any
affiliate thereof or the Collateral, whether or not the Indemnified Party is a
party thereto or target thereof; provided that the foregoing indemnity shall not
apply to any such liability, losses, damages or expenses of an Indemnified Party
to the extent arising from the willful misconduct or gross negligence of such
Indemnified Party, provided that such willful misconduct or gross negligence is
determined to have occurred by a final and non-appealable decision of a court of
competent jurisdiction; and provided further the foregoing indemnities shall not
be for the benefit of any of the following, and none of the following shall be
considered an "Indemnified Party," regardless of the capacity in which such
person or entity shall seek indemnification or to be considered such a party:
any MG Entity or any Management Member (in each case as defined in the June SPA)

Governing Law
-------------
THE CREDIT FACILITY DOCUMENTATION (INCLUDING THIS LETTER) WILL BE GOVERNED BY
THE LAWS OF THE STATE OF NEW YORK except to the extent that the security
interests created under the security documentation are governed by the laws of
another jurisdiction. BORROWER AND THE GUARANTOR AGREE TO SUBMIT TO THE
JURISDICTION OF STATE AND FEDERAL COURTS IN NEW YORK IN ANY LITIGATION RELATING
TO THE LENDER OR ITS AFFILIATES, THIS LETTER OR THE TRANSACTIONS CONTEMPLATED
HEREBY.

Lender
------
At Lender's discretion, an affiliate of the Lender may make the Loan instead of
the Lender.
                                  ------------

         EACH OF THE BORROWER, THE GUARANTOR AND THE LENDER HEREBY KNOWINGLY,
VOLUNTARILY AND INTENTIONALLY WAIVE ANY AND ALL RIGHTS IT MAY HAVE TO A TRIAL BY
JURY IN RESPECT OF ANY LITIGATION BASED ON, OR ARISING OUT OF, UNDER, OR IN
CONNECTION WITH, THIS LETTER AGREEMENT, THE PROPOSED LOAN, OR ANY OTHER DOCUMENT
EXECUTED IN CONNECTION HEREWITH OR THEREWITH, OR ANY COURSE OF CONDUCT, COURSE
OF DEALING, STATEMENTS (WHETHER VERBAL OR WRITTEN), OR ACTIONS OF THE BORROWER,
THE GUARANTOR, ANY OTHER RELEVANT ENTITY, ANY MANAGEMENT MEMBER, ANY MG ENTITY,
OR THE LENDER OR ANY AFFILIATE THEREOF. THIS PROVISION IS A MATERIAL INDUCEMENT
FOR THE LENDER ENTERING INTO THIS AGREEMENT.

         The foregoing provisions concerning governing law, expenses,
indemnification and waiver of jury trial shall become effective immediately upon
the execution and delivery hereof by you and shall remain operative and in full
force and effect whether or not the Loan Agreement or any other document
contemplated hereby shall be executed and delivered, and regardless of the
expiration or termination of the offers made by this letter and regardless of
any investigation made by or on behalf of the Lender or any of its affiliates or
any of he Relevant Parties.

                                      -6-

<PAGE>

         Our willingness to provide the credit facility outlined above is
conditioned upon our entering into of legal documents in form and substance
satisfactory to us and our counsel, which may include terms and conditions not
expressly described herein, expressly or otherwise.

         It is understood and agreed that this letter agreement has been
prepared for your benefit only and may not be relied on by any other person or
entity.

         If the foregoing is acceptable to you, please so indicate by signing
and returning to us a copy of this letter (by telecopier) on or before 5 p.m.
(New York time) September 26, 2002 (or such later date as the Lender shall have
agreed to in writing), the date on which the offers set forth in this letter
will otherwise expire.

         This letter may be executed in any number of counterparts by the
different parties hereto on separate counterparts, each of which when so
executed and delivered shall be an original, but all the counterparts shall
together constitute one and the same instrument. Telecopied signatures hereto
shall be of the same force and effect as an original of a manually signed copy.

                                          Very truly yours,
                                          BOS (USA) INC.

                                          By /s/ Jim Halley
                                            ------------------------------------
                                            Jim Halley, President
Accepted as of
September 26, 2002
FIRSTCITY FINANCIAL CORPORATION

By /s/ James T. Sartain
  -------------------------------
  James T. Sartain, President

AGREED TO:
FIRSTCITY CONSUMER LENDING CORPORATION

By /s/ James T. Sartain
  -------------------------------
  James T. Sartain
  Chairman of the Board

                                      -7-Prepared by R.R. Donnelley Financial -- from of Former Share Appreciation right award

 Exhibit 10.35(b) 
  
 SHARE APPRECIATION RIGHT AWARD AGREEMENT 
  
 
	 (A)
 	  	 Employee:
 	  	  
	 
	 (B)
 	  	 Grant Date:
 	  	  
	 
	 (C)
 	  	 SARs:
 	  	  

 
  
 U.S.I. Holdings Corporation (the “Company”) has granted
(“the “Employee”) an incentive award (the “Award”) of the number of share appreciation rights shown in item (C) above (the “SARs”), in connection with his employment by USI INSURANCE SERVICES CORP. or one of its
affiliates (the “Employer”). This Award is subject to the terms and conditions set forth in this Agreement. 
  
 The details of the Award are as follows: 
  
 1.    Definitions.    As used in this Agreement, the following terms shall have the meanings set forth below: 
  
 “Affiliate” means, as to any Person, any other Person directly or indirectly Controlling, Controlled by or under direct or indirect common
Control with such Person. 
  
 “Agreement” means this Share Appreciation Right Award
Agreement. 
  
 “Base Reference Value” means, as to each SAR,
$                    . 
  
 “Cause” shall have the meaning set forth in Employee’s employment agreement with Employer or one of its affiliates. To the extent Employee is not under an employment agreement, cause shall have the
meaning set forth in Employer’s Employee Policy Manual. 
  
 “Common Stock”
means the common stock of the Company, par value $.01 per share. 
  
 “Control” means
the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of a Person, whether through the ownership of securities, partnership interests or by contract, assignment or otherwise. The terms
“Controlling” and “Controlled” shall have meanings correlative to the foregoing. 
  
 “Disability” means that Employee is incapacitated or disabled by reason of illness or physical or mental disability from performing his duties for either (i) one continuous period of six months or (ii) a total
of seven months out of any twelve consecutive months, following 30 days’ written notice to Employee to that effect. The initial determination of Employee’s incapacity or disability shall be made by Employee’s regular treating
physician. If Employer disagrees with the conclusion of said physician, it may engage a second physician to examine Employee. If these physicians disagree, then the parties shall select a third physician, to examine Employee, in which event their
majority opinion shall be conclusive. 
  
 “Fair Market Value” means, with respect to
Common Stock, (i) if any Common Stock constitute Public Stock, the average of the high and low closing (or last) sale prices for the five business days preceding the date of determination thereof, as reported on a national securities exchange or on
NASDAQ or other similar national over-the-counter market, and (ii) if no Common Stock are Public Stock, the fair market value of such Common Stock (determined without discount for the lack of a public market for the Common Stock, any restrictions on
resale of the Common Stock under state or federal securities laws or the Company’s shareholders’ agreement and any minority discount) shall be
 
 

 
either (A) the value set by the Board of Directors of the Company as the fair market value of its Common Stock from time to time and as in effect on the date giving rise to the determination of
value, which value per share was determined for an independent business purpose within six months of the date of determination, or (B) if the Board of Directors has not made a determination of value as provided in (A), the value of such Common Stock
as determined by an Independent Appraiser selected by the Company. 
  
 “Independent”
means, at any time as to any Person, that such Person is not an Affiliate or an employee of the Company or the Employee or of any Affiliate of either thereof. 
  
 “Independent Appraiser” means a Person having at least 10 years’ experience in appraising stocks, bonds or similar instruments (which
Person may be an investment bank) and which is Independent. 
  
 “Person” means any
individual, corporation, partnership, joint venture, association, joint stock company, trust, unincorporated organization or government or any agency or political subdivision thereof. 
  
 “Public Stock” means any shares of Common Stock that is listed on a national securities exchange or that has been accepted for inclusion in
NASDAQ or any similar national over-the-counter market. 
  
 “Qualification Event”
means the occurrence of (i) the sale of all or substantially all of the assets of the Company to a Person that is not an Affiliate of the Company or of any stockholder of the Company as of the date of this Agreement or (ii) the sale of more than
fifty percent (50%) of the Common Stock on a fully-diluted basis (assuming conversion or exercise of all outstanding securities convertible into Common Stock and other rights to acquire Common Stock) to a Person that is not an Affiliate of the
Company or of any stockholder of the Company as of the date of this Agreement. 
  
 “Qualified
SARs” means, at any time, SARs as to which the Employee is entitled to retain the economic benefits of ownership, as determined pursuant to subsection 6(a) of this Agreement. 
  
 “Unqualified SARs” means, at any time, all SARs that are not Qualified SARs at such time. 
  
 “USI Companies” means the Company, its subsidiaries (including Employer, its Affiliates, and any of their
successors or assigns). 
  
 2.    Acquisition of SARs. 
  
 a.    Grant of SARs.    The Company hereby grants the SARS to the Employee. Upon exercise,
as provided in Section 2(b) below, each SAR shall entitle the Employee to receive, in the manner described in Section 2(c) below, the excess, if any, of (i) the Fair Market Value of one share of Common Stock at the Exercise Date (as hereinafter
defined), over (ii) the Base Reference Value (the “Exercise Value”). 
  
 b.    Manner of Exercise.    Upon the earlier of a Qualification Event or as otherwise provided in Section 6 hereof in the event of the Employee’s termination of employment (such
date referred to as the “Exercise Date”), the SARs shall be exercised and the Company shall pay to the Employee, in the manner described in Section 2(c) below, the product of (i) the Exercise Value, and (ii) the number of SARs that are
Qualified SARs at such Exercise Date (the “Settlement Amount”). 
  
 c.    Form of
Consideration; Manner of Settlement.    The Settlement Amount shall be paid to the Employee in the following manner, less an amount sufficient to satisfy any federal, state and/or local withholding tax requirements:

  
 (i)  in the case of a Qualification Event, then in cash within ninety (90) days of the
Exercise Date, or, at the Company’s sole option, in such mix of consideration and in such proportions as would be payable to a holder of the Company’s Common Stock (on a per share basis) upon such Qualification
 
 

 2 

 
Event, it being understood and agreed that the Employee shall take such actions and provide such documentation as shall be reasonably requested by counsel to the Company to effect such a
settlement; 
  
 (ii)  RESERVED; 
  
 (iii)  in the case of termination of Employee’s employment as described in Section 6 hereof, then, at the sole option of the Company, either
in cash within ninety (90) days of the Exercise Date, or in quarterly installments over a period not greater than three (3) years, with interest accruing at the Applicable Federal Interest Rate (determined under the Internal Revenue Code of 1986, as
amended). 
  
 d.    Blue Sky Compliance.    Each of the Company and
the Employee shall comply with all state or foreign securities or “blue sky” laws which might be applicable to the grant of the Common Stock to the Employee hereunder. In no event may any Common Stock be issued to the Employee unless such
laws have been complied with to the satisfaction of counsel to the Company. 
  
 3.    Representations and Warranties and Other Agreements of the Employee. 
  
 a.    Representations and Warranties.    The Employee represents and warrants with respect to himself or herself and the SARs that: 
  

(i)  He or she is acquiring the SARs for investment for his or her own account and not as an agent or nominee for any other person.

  
 (ii)  He or she will not, directly or indirectly, offer, transfer, sell, assign,
pledge, hypothecate or otherwise dispose of any SARs (each such action, a “Transfer”) unless (A) such Transfer complies with the provisions of this Agreement and the Plan, (B) either (1) the Transfer is pursuant to an effective
registration statement under the Securities Act of 1933, as amended, and the rules and regulations in effect thereunder (the “Act”) or (2) he or she shall have furnished the Company with an opinion of counsel, which opinion of counsel
shall be reasonably satisfactory to the Company, to the effect that no such registration is required because of the availability of an exemption from registration under the Act, and (C) such Transfer shall be in compliance with any applicable state
or foreign securities or “blue sky” laws. 
  
 (iii)  He or she has been advised
by the Company that: (A) neither the offer nor sale of any SARs has been registered under the Act or any state or foreign securities or “blue sky” laws; (B) the SARs are characterized as a “restricted security” under the Act
inasmuch as they are being acquired from the Company in a transaction not involving a public offering and that the SARs must be held indefinitely and he or she must continue to bear the economic risk of the investment in the SARs unless the offer
and sale of the SARs is subsequently registered under the Act or an exemption from such registration is available and all applicable state or foreign securities or “blue sky” laws are complied with; (C) it is not anticipated that there
will be any public market for the SARs in the foreseeable future; (D) Rule 144 promulgated under the Act is not presently available with respect to the offers or sales of any securities of the Company, and the Company has made no covenant to make
such Rule available nor has it made any covenants with respect to other rules by which offers or sales may be made; (E) when and if the SARs may be disposed of without registration under the Act in reliance on Rule 144, such disposition may be made
only in limited amounts in accordance with the terms and conditions of such Rule; and (F) if the Rule 144 exemption is not available, public offer or sale of any SARs without registration will require the availability of another exemption under the
Act. 
  
 (iv)  In the event that the Employee receives shares of Common Stock pursuant to
Section 2(c)(ii) of this Agreement, the Employee shall make such representations and provide such information and documentation as counsel to the Company may request in order to allow the Company to discharge its responsibilities under federal and
state securities laws, and the Employee shall execute such documents, including a joinder to the Company’s shareholders’ agreement, as are requested by counsel to the Company. 
  
 

 3 

 4.    No Rights as a Shareholder. 
  
 Nothing in this Agreement will confer any rights upon the Employee as a shareholder, including with respect to voting rights or rights to receive dividends. 

 
 5.    No Employment or Consulting Contract. 
  

Nothing in this Agreement will confer upon the Employee any right to continue in the employ or service of any USI Company for any period of time. 

 
 6.    Qualification of SARs; Cancellation and Early Exercise of SARs 
  
 a.    Qualification of SARs.    The Employee acknowledges that the SARs are to be issued to
the Employee in consideration for future services to be provided by the Employee to Employer. Accordingly, the Employee’s rights to retain the economic benefits of the SARs shall mature over time on a cumulative basis at various measurement
dates, as follows: (i) as of                         ,         , the Employee shall have
the right to retain the economic benefits of a number of SARs equal to twenty percent (20%) of the SARs at Measurement; (ii) as of
                        ,         , the Employee shall have the right to retain the
economic benefits of a number of SARs equal to forty percent (40%) of the SARs; (iii) as of                         ,
        , the Employee shall have the right to retain the economic benefits of a number of SARs equal to sixty percent (60%) of the SARs; (iv) as of
                        ,         , the Employee shall have the right to retain the
economic benefits of a number of SARs equal to eighty percent (80%) of the SARs; and (v) as of                         ,
        , the Employee shall have the right to retain the economic benefits of a number of SARs equal to one hundred percent (100%) of the SARs; provided, however, that upon occurrence of a
Qualification Event, a number of SARs equal to one hundred percent (100%) of the SARs shall immediately be Qualified SARs. No SARs shall vest subsequent to the earlier of a Qualification Event or
                        ,         . 
  

b.    Cancellation and Early Exercise in the Event of Death, Termination by a USI Company for Disability or Other than for Cause or Termination
by Employee.    In the event that the Employee’s employment shall be terminated by death, by Employer for Disability or other than for Cause, or by Employee for any reason, the Exercise Date with respect to any Qualified
SARs shall be the effective date of such termination, and any Unqualified SARs at such date shall be cancelled. 
  
 c.    Cancellation in the Event of Termination by Employer for Cause.    In the event that the Employee’s employment shall be terminated by Employer for Cause, the SARs (whether or
not Qualified) shall be cancelled. 
  
 d.    In the event of any Exercise Date determined under
the provisions of this Section 6, the SARs shall be exercised and the Company shall settle the SARs in accordance with Section 2(c)(iii) of this Agreement. In the event of any cancellation of SARs pursuant to this Section 6, such SARs shall be
deemed cancelled as of the effective date of the event giving rise to such cancellation, and such SARs shall be of no force and effect. 
  
 7.    Binding Effect.    The provisions of this agreement shall be binding upon and shall inure to the benefit of the parties hereto and the heirs, legal representatives,
successors and assigns of the parties hereto. No transfer of any SARs shall be valid, except by will or by the laws of descent and distribution. 
  
 8.    Adjustments.    In the event that any dividend, recapitalization, share split, reverse split, reorganization, merger, consolidation, spin-off,
combination, repurchase, share exchange or other similar corporate transaction or event affects the Common Stock to which each SAR relates, and the Company determines that an adjustment is appropriate in order to prevent dilution or enlargement of
the rights of the Employee hereunder, then the Company shall make such equitable changes or adjustments as it deems appropriate and adjust, in such manner as it may deem equitable, (i) the number and kind of shares issued or issuable in respect of
the SAR’s, and/or (ii) the Base Reference Value relating to each SAR. 
 

 4 

  
 9.    Applicable Law.    THIS
AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK WITHOUT REGARD TO PRINCIPLES OF CONFLICTS OF LAW. 
  
 10.    Invalidity of Provisions.    The invalidity or unenforceability of any provision of this agreement in any jurisdiction shall not affect the
validity or enforceability of the remainder of this agreement in that jurisdiction or the validity or enforceability of this agreement, including that provision, in any other jurisdiction. 
  
 11.    Headings; Execution in Counterparts.    The headings and captions contained herein are for convenience of reference
only and shall not control or affect the meaning or construction of any provision hereof. This agreement may be executed in counterparts, each of which shall be deemed to be an original and all of which together shall constitute but one and the same
instrument. 
  
 12.    Notices.    All notices and other
communications provided for herein shall be dated and in writing and shall be deemed to have been duly given when delivered, if delivered personally or sent by registered or certified mail, return receipt requested, postage prepaid and when received
if delivered otherwise, to the party to whom it is directed: 
  
 If to the Company, to it at the following address:

 
	 General Counsel
 	    	 with a copy to:
 	 	 Bernard Mizel
 
	 USI Insurance Services Corp.
 	    	  	 	 USI Insurance Services Corp.
 
	 50 California Street, 24th Fl.
 	    	  	 	 50 California Street, 24th Fl.
 
	 San Francisco, CA 94111
 	    	  	 	 San Francisco, CA 94111
 

 
  
 If to the Employee, to him or her at the address listed on the
signature page, or at such other address as such party shall have specified by notice in writing to the other party in accordance with this Section 12. 
  
 13.    Amendment.    This agreement may not be amended, modified or supplemented and no waivers of or consents to departures from the provisions hereof
may be given unless consented to in writing by the Employee, on the one hand, and the Company on the other hand. Unless otherwise specified in such waiver or consent, a waiver or consent given hereunder shall be effective only in the specific
instance and for the specific purpose for which given. 
  
 14.    Third Party
Beneficiaries.    Nothing expressed or implied in this agreement is intended or shall be construed to confer upon or give to any third party any rights or remedies against any party hereto. 
 

 5 

  
 IN WITNESS WHEREOF, the Employee and the Company have executed this agreement as
of the date first above written. 
  
 
	 U.S.I. HOLDINGS CORPORATION
 
	 
	 By:
 	 	  
	 	
	

	  	 	 Name:  
 	 	 David Eslick
 
	  	 	 Title:  
 	 	 President & COO
 
	 
	  	 	 

	 
	  	 	 Registered address:
 
	 
	  	 	 
Street address
 
	 
	  	 	 
City, State Zip Code
 

 
  
 I, as the Employee’s spouse, also agree to be bound by the
terms and conditions of this Agreement. 
  
 
	 By:
 	 	  
	 	
	

	  	 	 Employee’s Spouse
 

 
 

 6

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