Document:

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                                                                   EXHIBIT 10.12

                 FAIRFAX, INC. AND CRUM & FORSTER HOLDINGS CORP.
                            TAX ALLOCATION AGREEMENT

         The purpose of this agreement (the "Agreement") is to determine the
amount of federal and (where applicable) state income tax allocated between
Fairfax, Inc. and Crum & Forster Holdings Corp. This Agreement is between
Fairfax, Inc., a Wyoming corporation ("Parent"), and Crum & Forster Holdings
Corp., a Delaware corporation ("Subsidiary"). Parent and the Subsidiary are
sometimes hereafter collectively referred to as "Group".

         1.       Group are affiliated corporations and have elected to file a
consolidated federal income tax return under the provisions of Section 1501, et
seq., of the Internal Revenue Code of 1986, as amended, (the "Code"). Under the
Agreement, Subsidiary will remit to Parent Subsidiary's federal income tax
liability. Parent will then prepare, or cause to be prepared, and will file the
consolidated federal income tax return and pay the tax for Group. Parent and
Subsidiary shall review the accuracy of the accounting and methodology of the
consolidated federal income tax return and make any necessary adjustments no
less than thirty (30) days prior to the filing of the return.

         2.       Subsidiary's federal income tax liability shall be computed as
if Subsidiary filed a separate return. Subsidiary shall have first use of all of
its respective current operating losses and credits. The calculation of
Subsidiary's separate federal income tax liability shall be made pursuant to the
Code and its regulations, as well as applicable cases, rulings, etc., and shall
be determined by utilizing the maximum applicable corporate income tax rate.

         3.       Subsidiary shall pay its tax liability to Parent by no later
than the applicable due date or dates that such payments would have been
required by the Internal Revenue Service if Subsidiary had filed a separate
return, or as soon thereafter as possible.

         4.       If Subsidiary's income tax liability results in a claim for
refund of federal income

Fairfax, Inc. Tax Allocation Agreement

                                       1

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taxes, the Parent shall make the payment to Subsidiary by no later than the
applicable due date or dates that payment would have been made by the Internal
Revenue Service if Subsidiary had filed a timely claim for refund, or as soon
thereafter as possible.

         5.       If Group is required or has elected to file a unitary or
combined state income tax return (hereafter called a "State Group"), Parent will
compute, report and pay State Group's state income tax liability in accordance
with the applicable state laws and regulations and will file State Group's
required annual return. Within thirty (30) days from the filing of State Group's
annual return, Parent will calculate and assess Subsidiary its share of State
Group's state income tax liability based on (i) the methodology required or
established by state income tax law or, (ii) if none, the percentage of
Subsidiary's separate income or tax divided by the total separate income or tax
of State Group. Within thirty (30) days of such assessment, Subsidiary will pay
to Parent its share of the state income tax liability.

         6.       If after the filing of a return it is determined that the
liability computed hereunder is incorrect, whether by reason of an Internal
Revenue Service or state audit, discovery of error, the learning of new
information, or otherwise, appropriate payments shall be made promptly to
reflect the payments that should have been made.

         7.       In lieu of actual payments, adjustments to intercompany
payables and receivables may be made, and any net balances due will be paid
within 30 days of each adjustment. All payments under this Agreement, including
subsequent changes in the amount of Subsidiary's tax liability or reimbursement
payment, shall be considered an intercompany payable or receivable, as the case
may be, until such adjustment is paid, and shall not be considered a dividend or
surplus contribution.

         8.       Parent agrees to indemnify and reimburse Subsidiary for any
and all claims, demands and expenses in the event that the Internal Revenue
Service levies upon the assets of

Fairfax, Inc. Tax Allocation Agreement

                                       2

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Subsidiary for unpaid taxes, including penalties and interest, in excess of that
amount for which Subsidiary may be liable pursuant to the terms of this
Agreement.

         9.       This Agreement shall be applicable only with respect to
periods for which the parties are members of the same affiliated group filing a
consolidated federal income tax return. No adjustments hereunder shall be made
with respect to periods for which either Parent or Subsidiary filed a separate
return or is a member of another affiliated group filing a consolidated federal
income tax return.

         10.      This Agreement shall take effect as of June 5, 2003 and shall
continue until terminated by the mutual written agreement of all of the parties.
In the event any party ceases to be affiliated with the Group, this Agreement
automatically terminates. This Agreement shall also terminate if the Group fails
to file a consolidated federal income tax return for any tax year of this
Agreement. Notwithstanding the termination of this Agreement, its provisions
will remain in effect, with respect to any period of time during the tax year in
which termination occurs, for which the income of the terminating party must be
included in the consolidated federal income tax return.

         11.      This Agreement may, from time to time, be amended, modified,
and supplemented in such manner as may be mutually agreed upon by the parties,
subject to the approval of any regulatory authorities as required by law. Any
amendment, modification or supplement to this Agreement shall be in writing and
shall be executed by a duly appointed representative of each of the parties.

         12.      Every article, term, condition and provision of this Agreement
is declared to be independent of and severable from all other articles, terms,
conditions and provisions of the Agreement. Invalidation, whether judicial or
otherwise, of any article, term, condition or provision contained in this
Agreement shall in no way affect any other provisions of this

Fairfax, Inc. Tax Allocation Agreement

                                       3

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Agreement, all of which shall remain in full force and effect.

         13.      The books, accounts, tax returns and records of Parent and
Subsidiary shall be maintained so as to clearly and adequately disclose the
precise nature and details of the obligations and liabilities under this
Agreement. All materials relating to the tax returns, including but not limited
to the returns, supporting schedules, work papers, and correspondence, shall be
available for inspection at any time during normal business hours by Parent or
Subsidiary. Each party to this Agreement shall maintain, at its principal or
home office, records of all tax allocations, and any subsequent Internal Revenue
Service or state review or adjustment. The provisions of this section shall
survive termination of this Agreement.

         14.      This Agreement has been approved by the Board of Directors of
each party to this Agreement.

         15.      This Agreement is not assignable by any party without the
prior written consent of the other parties.

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed
by duly authorized officers to be effective June 5, 2003.

                                    Fairfax, Inc.

                                    By:    /s/ ERIC P. SALSBERG
                                           --------------------
                                    Name:  Eric P. Salsberg
                                    Title: Vice President

                                    Crum & Forster Holdings Corp.

                                    By:    /s/ MARY JANE ROBERTSON
                                           -----------------------
                                    Name:  Mary Jane Robertson
                                    Title: Senior Executive Vice President,
                                           Chief Financial Officer and Treasurer

Fairfax, Inc. Tax Allocation Agreement

                                       4<PAGE>

                                                                   EXHIBIT 10.13

                                  FAIRFAX INC.

                      INTERCOMPANY TAX ALLOCATION AGREEMENT

                                      (NY)

         Agreement entered into this 15th day of December, 2000, by and between
Fairfax Inc, a Wyoming corporation (the "Parent") and United States Fire
Insurance Company, Crum & Forster Indemnity Company, and Seneca Insurance
Company, Inc. (the "Subsidiaries").

         WHEREAS, Parent owns, directly or indirectly, 100% of the issued and
outstanding stock of both the Subsidiary and the Affiliated Corporations listed
on Schedule A hereto (the "Affiliated Corporations", and referred to
collectively with Parent and Subsidiary, the "Group");

         WHEREAS, the members of the Group have elected to file a consolidated
federal income tax return under the provisions of Section 1501, et. seq., of the
Internal Revenue Code of 1986 as amended (the "Code"); and

         WHEREAS, Parent and Subsidiaries wish to allocate tax liability in
accordance with the requirements of New York Insurance Department Circular
Letter No. 33 (1979).

         NOW, therefore, the parties do hereby agree as follows:

         1. The Parent will compute and pay the consolidated federal income tax
liability for the Group in accordance with the Code and its regulations, and
will prepare, or cause to be prepared, and will file the consolidated federal
income tax return for the Group. The Parent and the Subsidiaries shall review
the accuracy of the accounting and methodology of the consolidated federal
income tax return and make any necessary adjustments no less than thirty (30)
days prior to the filing of the return.

         2. Each Subsidiary shall compute and pay to the Parent its federal
income tax liability as if computed on a separate return. The Subsidiaries shall
have first use of all their respective current operating losses and credits. The
calculation of the separate federal income tax liability of the Subsidiaries
shall be made pursuant to the Code and its regulations, as well as applicable
cases, rulings, etc., and shall be determined by utilizing the maximum corporate
income tax rate.

         3. Each Subsidiary shall pay its separate return tax liability to the
Parent by no later than the applicable due date or dates that such payments
would have been required by the Internal Revenue Service if the Subsidiaries had
filed a separate return, or as soon thereafter as possible.

         4. If Subsidiaries would not have to pay any federal income tax or
would have a claim for refund of federal income taxes, the Parent will pay to
each Subsidiary an amount equal to the refund such Subsidiary would have been
entitled to obtain from the Internal Revenue Service had it filed a separate
return. Payment shall be made within thirty (30) days of the filing of the
applicable estimated or actual consolidated income tax return with the Internal
Revenue Service. However, where a refund is due to the Parent, it shall make
payment to the domestic

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insurer within thirty (30) days of its receipt of such refund. All settlements
shall be made in cash or securities eligible for investment by the domestic
insurer, at marker value.

         5. If all or a portion of the Group is required or has elected to file
a unitary or combined state income tax return (each such Group hereafter called
a "State Group"), the Parent of the particular State Group will compute, report
and pay the State Group's state income tax liability in accordance with the
applicable state laws and regulations and will file the State Group's required
annual return. Within thirty (30) days from the filing of the State Group's
annual return, the Parent of the State Group will calculate and assess to each
member of the State Group its share of the State Group's state income tax
liability based on (i) the methodology required or established by state income
tax law or (ii) if none, the percentage of each member's separate income or tax
divided by the total separate income or tax of the State Group. Within thirty
(30) days of such assessment, each member will pay to the Parent its share of
the state income tax liability.

         6. If after the filing of a return it is determined that the liability
computed hereunder is incorrect, whether by reason of an Internal Revenue
Service or state audit, discovery of error, the learning of new information, or
otherwise, appropriate payments, including allocations of penalty and/or
interest, if applicable, shall be made promptly to reflect the payments that
should have been made.

         7. In lieu of actual payments, adjustments to intercompany payables and
receivable may be made, and any net balances due will be paid within the period
for payments as set forth in Section 4 and will be otherwise subject to the
provisions of that section. All payments under this Agreement, including
subsequent changes in the amount of the Subsidiary's tax liability or
reimbursement payment, shall be considered an intercompany payable or
receivable, as the case may be, until such adjustment is paid, and shall not be
considered a dividend or surplus contribution.

         8. The Parent agrees to indemnify and reimburse each Subsidiary for any
and all claims, demands and expenses in the event that the Internal Revenue
Service levies upon the assets of such Subsidiary for unpaid taxes, including
penalties and interest, in excess of that amount for which such Subsidiary may
be liable pursuant to the terms of this Agreement.

         9. This Agreement shall be applicable only with respect to periods for
which the parties are members of the same affiliated Group filing a consolidated
federal income tax return. No adjustments hereunder shall be made with respect
to periods for which either the Parent or one or more of the Subsidiaries are
not members of the same affiliated Group.

         10. This Agreement shall take effect as of January 1, 2000, and shall
continue until terminated by the mutual written agreement of all of the parties.
In the event any party ceases to be affiliated with the Group, this Agreement
automatically terminates only with respect to that member. This Agreement, shall
also terminate if the Group fails to file a consolidated federal income tax
return for any tax year of this Agreement. Notwithstanding the termination of
this Agreement, its provisions will remain in effect, with respect to any period
of time during the tax year in which termination occurs, for which the income of
the terminating party must be included in the consolidated federal income tax
return.

                                       2
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         11. This Agreement may, from time to time, be amended, modified, and
supplemented in such manner as may be mutually agreed upon by the parties,
subject to the approval of any regulatory authorities as required by law. Any
amendment, modification or supplement to this Agreement shall be in writing and
shall be executed by a duly appointed representative of each of the parties.

         12. Every article, term, condition and provision of the Agreement is
declared to be independent of and severable from all other articles, terms,
conditions and provisions of the Agreement. Invalidation, whether judicial or
otherwise, of any article, term, condition or provision contained in this
Agreement shall in no way affect any other provision of this Agreement, all of
which shall remain in full force and effect.

         13. The books, accounts, tax returns and records of the Parent and the
Subsidiaries shall be maintained so as to clearly and adequately disclose the
precise nature and details of the obligations and liabilities under this
Agreement. All materials relating to the tax returns, including but not limited
to the returns, supporting schedules, work papers, and correspondence, shall be
available for inspection at any time during normal business hours by the Parent
or any Subsidiary. Each party to this Agreement shall maintain, at its principal
or home office, records of all tax allocations, and any subsequent Internal
Revenue Service or state review or adjustment. The provisions of this section
shall survive termination of this Agreement.

         14. This Agreement has been approved by the Board of Directors of each
party to this Agreement to the extent required by regulatory authorities. This
Agreement shall be effective upon approval of regulatory authorities as required
by law.

         15. This Agreement is not assignable by any party without the prior
written consent of the other parties.

         16. Any controversy or claim arising out of or relating to this
Agreement or breach thereof shall be settled by arbitration in accordance with
the Commercial Arbitration Rules of the American Arbitration Association and
judgement upon the award rendered by the arbitrators may be entered in any court
having jurisdiction thereof.

         17. An escrow account shall be established and maintained by Parent for
each Member that is a New York domestic insurer in an amount equal to the amount
paid by such Member that is in excess of the actual amount paid by Parent to the
Internal Revenue Service. Assets in the escrow account shall consist of assets
eligible for investment by insurance companies in accordance with the New York
Insurance Law. Escrow assets may be released by Parent from the escrow account
at such time as the permissible period for loss carrybacks has elapsed. Instead
of establishing the Escrow Account, Parent may, at its option, secure its
obligation with a clean, irrevocable and evergreen letter of credit from a bank
that is a "qualified bank" pursuant to New York Regulation 133.

         IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
executed by duly authorized officers to be effective January 1, 2000.

                                       3
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                                       FAIRFAX, INC.

                                       By:    /s/ CYNTHIA D. CRANDALL
                                           -------------------------------------
                                           Name:  Cynthia D. Crandall
                                           Title: Vice President

                                       UNITED STATES FIRE INSURANCE COMPANY

                                       By:    /s/ MARY JANE ROBERTSON
                                           -------------------------------------
                                           Name:  Mary Jane Robertson
                                           Title:

                                       CRUM & FORSTER INDEMNITY COMPANY

                                       By:    /s/ MARY JANE ROBERTSON
                                           -------------------------------------
                                           Name:
                                           Title:

                                       SENECA INSURANCE COMPANY, INC.

                                       By:    /s/ MARC WOLIN
                                           -------------------------------------
                                           Name:  Marc Wolin
                                           Title: Chief Financial Officer

                                       4
<PAGE>
                           ATTACHMENT TO INTER-COMPANY

                            TAX ALLOCATION AGREEMENT

                                   SCHEDULE A

<TABLE>
<CAPTION>
COMPANIES INCLUDED IN FAIRFAX, INC. FEDERAL CONSOLIDATED GROUP          F.E.I.N.
--------------------------------------------------------------        ----------
<S>                                                                   <C>
FAIRFAX INC.                                                          83-0306126
CRUM & FORSTER HOLDINGS, INC.                                         22-3258258
UNITED STATES FIRE INSURANCE COMPANY                                  13-5459190
THE NORTH RIVER INSURANCE COMPANY                                     22-1964135
SEN-TECH INTERNATIONAL HOLDINGS, INC.                                 13-3738196
EXCELSIOR CLAIMS ADMINISTRATORS, INC.                                 13-3967338
SENECA INSURANCE COMPANY, INC.                                        13-2941133
SENECA RISK SERVICES, INC.                                            61-1319316
SENECA SPECIALTY INSURANCE COMPANY, INC.                              86-0902879
CRUM AND FORSTER INSURANCE COMPANY                                    22-2464174
CRUM & FORSTER UNDERWRITERS CO. OF OHIO                               58-1552849
Crum & FORSTER INDEMNITY COMPANY                                      22-2868548
Crum & FORSTER CUSTOM SECURITIES, INC.                                94-2941672
ODYSSEY RE HOLDINGS INC.                                              75-2869978
RIVERSTONE GROUP LLC                                                  02-0511579
RIVERSTONE RESOURCES LLC                                              02-0511580
RIVERSTONE CLAIMS MANAGEMENT LLC                                      75-2869975
RIVERSTONE REINSURANCE SERVICES LLC                                   75-2869980
TIG HOLDINGS, INC.                                                    94-3172455
TIG HOLDINGS 1, INC.                                                  75-2585402
TIG HOLDINGS 2, INC.                                                  75-2585404
TIG BERMUDA LTD.                                                      75-2585427
TIG INSURANCE GROUP                                                   94-3580308
PRIORIS, INC.                                                         75-2684873
RUSCO SERVICES INC.                                                   95-4291249
TIG INSURANCE COMPANY                                                 94-1517098
TIG PREMIER INSURANCE COMPANY                                         94-0781581
TIG INDEMNITY COMPANY                                                 95-1429618
FAIRMONT INSURANCE COMPANY                                            94-1737938
TIG INSURANCE COMPANY OF MICHIGAN                                     38-1184490
TIG INSURANCE CORPORATION OF AMERICA                                  71-0238628
TIG INSURANCE COMPANY OF NEW YORK                                     18-1073431
TIG INSURANCE COMPANY OF TEXAS                                        75-0739399
TIG LLOYDS INSURANCE COMPANY                                          94-2834329
TIG AMERICAN SPECIALTY INSURANCE COMPANY                              75-1770242
TIG SPECIALTY INSURANCE COMPANY                                       94-1264187
TIG INSURANCE COMPANY OF COLORADO                                     84-0753379
TIG COMMONWEALTH HOLDINGS, INC.                                       75-2869981
COMMONWEALTH INSURANCE COMPANY OF AMERICA                             91-1673817
COUNTRYWIDE CORPORATION                                               95-2311647
TIG HOLDINGS 4, INC.                                                  75-2681633
RANGER INSURANCE COMPANY                                              74-1280541
RANGER INSURANCE MANAGERS, INC.                                       74-1385078
RANGER INSURANCE FINANCE COMPANY                                      76-0247309
RANGER MANAGERS CORP.                                                 76-0247311
RANGER LLOYDS INSURANCE COMPANY                                       74-6090673
ODYSSEY AMERICA REINSURANCE CORPORATION                               47-0698507
</TABLE>

<PAGE>

<TABLE>
<CAPTION>
COMPANIES INCLUDED IN FAIRFAX, INC. FEDERAL CONSOLIDATED GROUP          F.E.I.N.
--------------------------------------------------------------        ----------
<S>                                                                   <C>
ODYSSEY REINSURANCE CORPORATION                                       13-2781282
HUDSON INSURANCE COMPANY                                              13-5150451
TIG RE UK HOLDINGS CORPORATION                                        75-2685494
TIG HOLDINGS 5, INC.                                                  75-2741663
TIG LATIN AMERICA INC.                                                75-2741665
</TABLE>

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