Document:

<PAGE>
                                                                  Exhibit 10.12

                         EXECUTIVE EMPLOYMENT AGREEMENT

                 THIS EMPLOYMENT AGREEMENT dated June 28, 2001.

BETWEEN:

                                BRUCE D. GUTHART

                                (the "Executive")

                                      -and-

                         KAYE GROUP INC., a corporation
                  incorporated pursuant to the laws of Delaware

                                 (the "Agency")

                                      -and-

                    HUB INTERNATIONAL LIMITED, a corporation
                  incorporated pursuant to the laws of Ontario

                                     ("Hub")

     In consideration of the mutual covenants and agreements contained herein,
the parties hereto agree as follows.

1.   INTERPRETATION

     (1)  In this Agreement:

           (a) "Agreement" means this agreement, all Schedules attached hereto
               and the amendments made hereto by written agreement between the
               Executive and the Agency;

           (b) "Basic Compensation" means the compensation indicated in Schedule
               "B";

           (c) "Benefits" means the benefits to which the Executive is entitled
               in accordance with Schedule "B";

           (d) "Cause" means (i) a material breach by the Executive of the
               provisions of this Agreement, which breach shall not have been
               cured by the Executive within thirty (30) days following notice
               thereof by the Agency to the Executive, (ii) the commission of
               gross negligence or bad faith by the Executive in the
<PAGE>

                                      -2-

               course of the Executive's employment, which commission has a
               material adverse effect on the Agency or Hub, (iii) the
               commission by the Executive of a criminal act of fraud, theft or
               dishonesty causing material damages to the Company or Hub, (iv)
               the Executive's conviction of (or plead nolo contendere to) any
               felony, or misdemeanor involving moral turpitude if such
               misdemeanor results in material financial harm to or materially
               adversely affects the goodwill of the Agency or Hub, or (v) such
               other act or omission that a court of competent jurisdiction
               declares in a written ruling to be a breach of the Executive's
               responsibilities hereunder of such materiality as to justify a
               termination of the Executive's employment by the Agency.

           (e) "Death" means a natural death and, in addition, is deemed to
               include a continuous period of at least six months during which
               time the Executive has not been in the offices of the Agency
               during normal working hours and the Executive's whereabouts are
               unknown to the Agency;

           (f) "Disability" means the mental or physical state of the Executive
               is such that the Executive would be considered to suffer from a
               "total disability" or a "disability" or to be "totally disabled"
               or "disabled" in accordance with the Agency's group benefits
               insurance policy at the relevant time;

           (g) "Good Reason" means any breach of the terms of this Agreement by
               the Agency or Hub, including but not limited to any of the
               following:

                  (i) the assignment to the Executive of any duties
             substantially inconsistent with the Executive's positions as set
             forth on Schedule A, or a significant adverse alteration in the
             nature or status of the Executive's responsibilities or duties or
             the conditions of the Executive's employment compared to the
             responsibilities, duties and conditions in effect for the
             Executive's employment with respect to the business of the Agency
             immediately prior to the date of this Agreement, excluding any
             isolated and inadvertent action that is not taken in bad faith and
             that is remedied by the Agency or Hub, as applicable, within thirty
             (30) days after receipt of notice thereof given by the Executive;

                  (ii) a reduction in the Executive's Basic Compensation;

                  (iii) any failure by the Agency or Hub to require any
             successor (whether direct or indirect, by purchase, merger,
             consolidation or otherwise) to all or substantially all of the
             business and/or assets of the Agency to assume expressly and agree
             to perform the provisions of this Agreement in the same manner and
             to the same extent that the Agency and Hub would be required to
             perform if no such succession had taken place;

                  (iv) the relocation of the offices at which the Executive is
             principally employed immediately prior to the date of the Closing
             hereunder to a location more than 20 miles from such location; and
<PAGE>

                                   -3-

                  (v) the failure by the Agency or Hub to continue to provide
             the Executive with the benefits described on Schedule B.

           (h) "Hub" means Hub International Limited;

           (i) "Hub Group" means Hub and the Subsidiaries;

           (j) "Investment Letter" means the investment letter referred to in
               item 4 of schedule D and attached as Exhibit A hereto which will
               be executed and delivered on the date hereof between the
               Executive and Hub.

           (k) "Management Bonus" means any amount of bonus paid or payable (as
               the context may require) pursuant to the Management Bonus
               Agreement;

           (l) "Management Bonus Agreement" means, subject to item 1 of Schedule
               D hereto, the Management Bonus Agreement attached as Exhibit B
               hereto which will be executed and delivered on the date hereof
               between the Agency and Hub, and a copy of which (as executed)
               will be provided to the Executive;

           (m) "Restricted Period" means the two-year period ending on the
               second anniversary of the termination of the Executive's
               employment hereunder for whatever reason;

           (n) "Restricted Stock Arrangement" means the plan or other
               arrangement referred to in item 3 of Schedule D;

           (o) "Schedule" means a schedule to this Agreement;

           (p) "Section" means a section or subsection of this Agreement;

           (q) "Services" means the positions, duties and the responsibilities
               set out in Schedule "A" to this Agreement, as the same may be
               amended or extended by agreement of the parties from time to
               time;

           (r) "Subsidiaries" means the "subsidiary companies", as defined in
               the Securities Act (Ontario), of Hub, including the Agency and
               Hub U.S. Holdings, Inc.;

           (s) "Vacation" means the vacation to which Executive is entitled, as
               contemplated in Schedule "B".

     (2) It is agreed by and between the parties hereto that the Schedules
         referred to herein, as itemized below and attached hereto, shall form a
         part of this Agreement and this Agreement shall be construed as
         incorporating such Schedules:

           Schedule A  -   Services
           Schedule B  -   Basic Compensation, Benefits and Vacation
           Schedule C  -   Alternative Dispute Resolution
           Schedule D  -   Additional Provisions

<PAGE>

                                      -4-

2.     EMPLOYMENT

     (1) The Agency agrees to employ the Executive during the term of employment
         hereunder in the positions and with the duties and responsibilities set
         out in Schedule A and the Executive accepts such employment and
         represents to the Agency that the Executive has the required skills and
         expertise to perform the Services.

     (2) During the term of employment hereunder the Executive agrees to devote
         the whole of the Executive's business time and attention to the
         Services, and to the other activities contemplated in item 1 of
         Schedule D, in a conscientious and competent manner and with the utmost
         integrity.

     (3) The Executive shall perform the Services primarily at the office of the
         Agency located in the City of New York, NY in the United States of
         America and at such other locations as the Agency's and Hub's
         reasonable needs may dictate from time to time, provided that the
         Executive will not be required to move the Executive's residence.

     (4) During the term of employment hereunder, Hub shall put forth, and
         management shall recommend, the Executive for election to the Board of
         Directors of Hub at each annual general meeting of the stockholders of
         Hub.

     (5) During the term of employment hereunder the Executive shall be entitled
         to the benefits of: (a) all indemnification provisions contained in the
         Agency's and Hub's Certificate of Incorporation or Articles of
         Incorporation or by-laws, as the case may be (and for this purpose, the
         Agency and Hub agree that no amendment shall be made thereto which
         materially changes such indemnification provisions, other than to
         enhance the protection thereby afforded to the Executive); and (b) all
         of the Company's insurance policies, including directors and officers
         liability policies, to the extent that such policies are generally
         applicable to other officers and directors.

3.     REMUNERATION AND BENEFITS

     (1) During the term of employment hereunder the Agency shall pay the
         Executive the Basic Compensation in such payment periods as are
         established from time to time by the Agency for its employees, subject
         to deduction and remittance to the appropriate governmental authority
         of all applicable taxes and other amounts.

     (2) The Executive shall be entitled to and the Agency shall provide the
         Benefits.

     (3) The Agency shall reimburse the Executive for reasonable travel and
         other business expenses incurred by the Executive in performing the
         Services, in accordance with approved budgets.

     (4) The Executive shall be entitled to the Vacation, to be scheduled at the
         mutual convenience of the parties.
<PAGE>

                                      -5-

     (5) The Executive shall be entitled to participate in the Management Bonus
         Agreement as an Eligible Manager (as defined therein) on the basis that
         notwithstanding any discretion otherwise exercisable by the President
         of the Agency as to the payment of bonuses under the Management Bonus
         Agreement, the Executive shall receive 50% of the aggregate of any
         bonus paid thereunder to the Eligible Managers collectively to a
         maximum annual amount equal to the Basic Compensation for the period of
         one year. The Executive shall be "President of the Agency" for purposes
         of the foregoing sentence and in that capacity shall have the authority
         to exercise the discretion as to the payment of bonuses under the
         Management Bonus Agreement.

4.    PROPERTY, CONFIDENTIALITY AND NON-SOLICITATION

     (1) PROPERTY. The Executive acknowledges and agrees that all books of
         business, policies of insurance, documents, computer records, vouchers
         and other books, papers and records connected with the business of the
         Agency or the other Subsidiaries of Hub Group, whether paid for,
         serviced or produced by the respective corporation of Hub Group or not,
         are the property of the respective corporation and shall be at all
         times open to the respective corporation for the purposes of
         examination, and shall be turned over and surrendered to the respective
         corporation or its representatives upon the order of the respective
         corporation or on the termination of the Executive's employment with
         the Agency for any reason whatsoever.

     (2) CONFIDENTIALITY. The Executive acknowledges that in the course of
         carrying out the Executive's duties to the Agency, the Executive will
         have access to and will be entrusted with confidential information
         concerning the business and corporate affairs of the Agency, the other
         corporations of Hub Group and their clients ("Confidential
         Information"), including information pertaining to the respective
         corporation's relationships with insurance carriers, employee and
         producer compensation structures, client underwriting and policy
         renewal information, internal accounting procedures, policies and
         information, unique insurance product features, insurance programs
         developed by the respective corporation (with or without the assistance
         of the Executive), marketing strategies and employee training
         procedures. The Executive agrees that all Confidential Information
         acquired by the Executive or disclosed to the Executive shall be held
         in the strictest confidence. The Executive shall not disclose any
         Confidential Information to any other person without the prior written
         consent of the respective corporation, except as may be required for
         the Executive to fulfill the Executive's employment duties to the
         Agency or as may be required by law. The Executive shall not make use
         of any Confidential Information for the Executive's own benefit or for
         the benefit of any other person or persons, firm, partnership,
         association or corporation other than Hub Group, or assist others in so
         doing; provided that nothing herein shall prohibit the Executive from
         using Confidential Information that:

         (a)   was readily available to the public at the time such information
               was available to the Executive;

         (b)   became readily available to the public after the time such
               information was made available to the Executive other than
               through a breach of this Agreement; or
<PAGE>

                                      -6-

         (c)   is lawfully and in good faith obtained by the Executive from an
               independent third party without a breach of this Agreement.

         The Executive acknowledges and agrees that the disclosure of any
         Confidential Information to competitors of the Agency or the other
         corporations of Hub Group or to the general public in violation of the
         terms of this Section 4(2) may be highly detrimental to the business
         interests of Hub Group. The Executive acknowledges and agrees that the
         right of Hub Group to maintain Confidential Information as confidential
         in accordance herewith constitutes a proprietary right that the
         respective corporation is entitled to protect. Unless otherwise agreed
         to by the respective corporation, all Confidential Information shall be
         and shall remain the sole and exclusive property of the respective
         corporation subject to the terms of this Section 4(2). The Executive
         shall return to the Agency, forthwith upon the effective date of
         termination of the Executive's employment for any reason whatsoever,
         all records of Confidential Information in the possession of the
         Executive which were acquired in connection with the Executive's
         employment by the Agency. The Executive hereby agrees with the Agency
         that, in the event of any breach by the Executive of the provisions of
         this Section 4(2), the respective corporation(s) of Hub Group shall be
         entitled to equitable relief, including an injunction and specific
         performance, in any competent court having jurisdiction over the
         Executive, in addition to all other remedies available to the
         respective corporation at law or in equity.

     (3) NON-COMPETITION AND NON-SOLICITATION

         (a)   The Executive covenants and agrees that the Executive will not,
               without the prior written consent of the Agency, during the
               Restricted Period, either individually, in partnership, jointly,
               or in conjunction with any other person or persons, firm,
               partnership, association, company, corporation or any other
               entity as principal, agent, employee, shareholder, or in any
               other capacity whatsoever carry on or be engaged in any aspect of
               the insurance agency business in the United States, or advise,
               lend money to, guarantee the debts or obligations of, or permit
               the Executive's name or any part thereof to be used or employed
               by any other person or persons, firm, partnership, association,
               company, corporation or any other entity engaged in any aspect of
               the insurance agency business in the United States.
               Notwithstanding the foregoing, the provisions of this Section
               4(3)(a) shall not:

            (i)   apply in the event that this Agreement is terminated
                  by the Agency without Cause or by the Executive for
                  Good Reason, including in accordance with Section 5(2); or

            (ii)  prohibit the Executive from directly or indirectly
                  owning up to 10% of the issued capital stock of any
                  public company the price of whose shares is quoted in
                  a published newspaper of general circulation.

         (b)   The Executive agrees that during the Restricted Period the
               Executive shall not directly or indirectly approach or solicit
               any client, employee or producer of Hub

<PAGE>
                                      -7-

               Group except for the benefit of Hub Group or attempt to direct
               any such client, employee or producer away from Hub Group,
               provided, however, that, if the Executive's employment hereunder
               is terminated pursuant to any of the circumstances contemplated
               by Section 5(2) below, then any failure by the Agency to make the
               payments contemplated by Section 5(2), including but not limited
               to Section 5(2)(c), shall release the Executive from his
               obligation under this Section 4(3)(b).

         (c)   If the Executive violates any of the provisions of Section
               4(3)(b), the Executive shall pay to Hub a sum equal to one and
               one-half times the annual renewal commissions generated by
               clients obtained by the Executive in violation of Section
               4(3)(b).

         (d)   The amount payable by the Executive under Section 4(3)(c) shall
               be paid in cash and as soon as it is determinable and may be set
               off by the Agency against any amount owing or to become owing by
               the Agency or Hub to the Executive. The Executive acknowledges
               that the said amount is a reasonable calculation of the
               respective corporation's liquidated damages given the interest of
               the corporation in maintaining its client base and the future
               profits which would be foregone by the corporation if the
               Executive violates the provisions of Section 4(3)(b). The
               Executive further acknowledges that the payment by the Executive
               pursuant to Section 4(3)(c) shall in no way limit the other
               remedies to which the respective corporation of Hub Group may be
               entitled as a result of the Executive's breach of Section 4(3)(a)
               or (b). Without limiting the generality of the foregoing, the
               Executive recognizes that a breach by the Executive of any of the
               covenants contained in Section 4(3)(a) would result in ongoing
               damages to the respective corporation of Hub Group and that Hub
               Group may not be adequately compensated for such damages by the
               payment of the amounts contemplated in Section 4(3)(c). The
               Executive agrees that in the event of any such breach, and in
               addition to any other remedies available to Hub Group at law or
               otherwise, Hub shall, on behalf of the respective corporation of
               Hub Group, be entitled as a matter of right to apply to a court
               of competent jurisdiction for relief by way of injunction,
               restraining order, decree or otherwise as may be appropriate to
               ensure compliance by the Executive with the provisions of
               Sections 4(3)(a) and (b).

     (4) The Executive agrees that all restrictions in this Section 4 are
         necessary and fundamental to the protection of the business of the
         Agency and the other corporations of Hub Group and are reasonable. If,
         at the time of enforcement of this Section 4, a court should hold that
         the duration, scope or area restrictions stated herein are unreasonable
         under the circumstances then existing, the parties agree that the
         maximum duration, scope or area that is reasonable under such
         circumstances shall be substituted for the stated scope, duration or
         area, as the case may be, and the court shall be allowed to revise the
         relevant restrictions contained herein to cover the maximum period,
         scope and area permitted by law.

<PAGE>

                                       -8-

5.   TERM AND TERMINATION

     (1) This Agreement and the term of the employment of the Executive
         hereunder shall be for an indefinite term, subject to termination in
         accordance with the terms of this Agreement.

     (2) This Agreement and the term of the employment of the Executive
         hereunder may be terminated by the Agency for any reason whatsoever by
         written notice to the Executive, or by the Executive for Good Reason by
         written notice to the Agency, provided that, in the event that the
         Agreement is terminated in accordance with this Section 5(2), the
         Executive shall be:

         (a) paid the Basic Compensation for the period up to the effective
             date of termination;

         (b) paid a portion of the Management Bonus payable for the year during
             which the Executive's employment is terminated calculated by
             dividing the Management Bonus for that year by twelve and
             multiplying it by the number or months or portions of a month of
             that year up to and including the effective date of the
             termination of the Executive's employment; and

         (c) entitled to continue to receive an amount equal to the Basic
             Compensation and the group insurance and automobile allowance
             components of the Benefits for the severance period hereinafter
             defined.

         For the purposes of this Section 5(2), "severance period" means
         the period commencing as at the effective date of such termination
         and ending on the first anniversary of the date thereof.
         Notwithstanding the foregoing, in the event that the Executive
         breaches any of the provisions of Section 4, effective as at the
         date of such breach the Executive shall cease to be entitled to
         any further payment, provided that in no event shall the Executive
         be paid an amount that is less than the prescribed minimum under
         applicable employment standards legislation.

     (3) Notwithstanding Section 5(2), this Agreement may be terminated
         immediately by the Agency for Cause, without further obligation to the
         Executive, provided that the Executive shall be entitled to receive an
         amount equal to the Basic Compensation and the Benefits to the date of
         termination.

     (4) Notwithstanding Section 5(2), this Agreement may be terminated by the
         Agency on notice to the Executive due to the Disability of the
         Executive, upon ninety (90) days' notice to the Executive.

     (5) Notwithstanding Section 5(2), this Agreement shall be terminated
         immediately upon the Death of the Executive or, unless otherwise agreed
         by the parties, upon the Executive attaining sixty-five (65) years of
         age.

<PAGE>
                                      -9-

     (6) Upon termination of this Agreement in accordance with Section 5(2) the
         Executive shall have no other claim against the Agency for damages for
         failure to give reasonable notice or pay in lieu of notice or severance
         pay, except as set out in Section 5(2).

     (7) In the event of termination of this Agreement in accordance with the
         terms hereof, the provisions of Section 4 shall continue in full force
         and effect.

6.   ALTERNATIVE DISPUTE RESOLUTION

     The parties agree to submit any disputes to mediation in accordance
     with the procedures set out in Schedule C.

7.   GENERAL PROVISIONS

     (1) In the event any payment, distribution or other benefit received by the
         Executive under this Agreement or any other contract or arrangement
         (including, but not limited to, any acceleration of the exerciseability
         of any stock option or the vesting of any stock or other property or
         any payment made to the Executive in connection with a change of
         control of the Agency or Hub or any severance payment provided herein)
         (a "Payment") would be subject to the excise tax imposed by section
         4999 of the Internal Revenue Code of 1986 (such excise tax, together
         with any similar tax under any new or replacement provision to such
         Section 4999, are hereinafter collectively referred to as the "Excise
         Tax"), including any payment, distribution or other benefit that when
         aggregated with any other payment, distribution or other benefit
         (whether or not such received or made pursuant to this agreement)
         results in the imposition of the Excise Tax, then the Executive shall
         be entitled to receive an additional payment (a "Gross-Up Payment") in
         an amount such that after payment by the Executive of all taxes,
         including without limitation, any Excise Tax or other tax imposed upon
         any amounts received under this Section 7(1), the Executive retains an
         amount of the Gross-Up Payment equal to the Excise Tax imposed upon the
         Payment. All determinations required to be made under this Section
         7(1), including whether and when a Gross-Up Payment is required and the
         amount of such Gross-Up Payment and the assumptions to be utilized in
         arriving at such determination, shall be made by the Agency's
         independent accounting firm which shall provide detailed supporting
         calculations both to the Agency and the Executive within 15 business
         days of the receipt of notice from the Executive that there has been or
         will be a Payment, or such earlier time as is requested by the Agency.

     (2) Any and all previous agreements, written or oral, between the parties
         hereto or on their behalf relating to the employment of the Executive
         by the Agency, other than the Management Bonus Agreement, are hereby
         terminated and cancelled and each of the parties hereto hereby releases
         and forever discharges the other hereto of and from all manner of
         actions, causes of action, claims and demands whatsoever under or in
         respect of any such agreement.

<PAGE>

                                      -10-

     (3) The provisions hereof, when the context permits, shall inure to the
         benefit of and be binding upon the heirs, executors, administrators and
         legal personal representatives of the Executive and the successors and
         assigns of the Agency, respectively.

     (4) This Agreement shall be construed in accordance with the laws of the
         Sate of New York and the laws of the United States applicable therein.

     (5) If any covenant or provision of this Agreement is determined to be void
         or unenforceable, in whole or in part, it shall not be deemed to affect
         or impair the validity of any other covenant or provision and this
         Agreement shall be read and construed as if such void or unenforceable
         provision were excluded from this Agreement.

     (6) Any notice, demand, request, consent, approval or waiver required or
         permitted to be given hereunder shall be in writing and may be given to
         the party for whom it is intended by personally delivering it to such
         party or by mailing the same by prepaid registered mail:

         (a) In the case of the Agency, to:

             Kaye Group Inc.
             122 East 42nd St.
             New York, NY 10168

             Attention:  Chief Financial Officer

         (b) In the case of the Executive:

             2794 Lindenmere Drive
             Merrick, New York 11566

         (c) In the case of Hub:

             Hub International Limited
             55 East Jackson Boulevard
             Chicago, IL 60604

         Any such notice or other documents delivered personally shall be deemed
         to have been received by and given to the addressee on the day of
         delivery and any such notice or other documents mailed, as aforesaid,
         shall be deemed to have been received by and given to the addressee on
         the third business day following the date of mailing. Any party may at
         any time give notice to the other or any change of address.

     (7) All amounts referred to herein and in the Schedules hereto are in U.S.
         currency unless otherwise indicated.

<PAGE>
                                      -11-

8.   ADDITIONAL PROVISIONS

     The provisions in Schedule D form part of this Agreement.

         IN WITNESS THEREOF the parties hereto have hereunto executed this
Agreement as of the day and year first above written.

HUB INTERNATIONAL LIMITED                   KAYE GROUP INC.
By:                                         By:
   /s/ W. Kirk James                           /s/ Michael P. Sabanos
--------------------------------------      -----------------------------------
Name:  W. Kirk James                        Name:  Michael P. Sabanos
Title: Vice President and General Counsel   Title: Executive Vice President
I have authority to bind                    I have authority to bind
the corporation.                            the corporation.

SIGNED AND DELIVERED in the
presence of:                  )
                              )
   /s/ W. Kirk James          )
------------------------------
(Signature)                   )
   W. Kirk James              )
-----------------------------               /s/ Bruce D. Guthart
(Print Name)                  )          --------------------------------------
   55 East Jackson Blvd.      )          BRUCE D. GUTHART
   Chicago, Illinois
------------------------------
(Address)

<PAGE>

                                   SCHEDULE A
                                    SERVICES

The Executive shall be the President and Chief Executive Officer of the Agency
and in that capacity shall perform such duties and shall have such authority as
are customary and appropriate to those positions and as are consistent with the
duties and authority of the Executive in connection with his employment with
respect to the business of the Agency prior to the date of this Agreement,
including, without limitation, the full authority and responsibility for the
day-to-day management of the Agency (including hiring and firing personnel) in a
manner consistent with prior practice; and the Executive shall have such
additional duties and responsibilities consistent with his positions as
described above as the Agency, acting reasonably, may assign from time to time
(all of the foregoing, collectively, the "Services").

<PAGE>

                                   SCHEDULE B

                               BASIC COMPENSATION

The Agency will pay the Executive an annual salary of $500,000.

                                    BENEFITS

o        Group insurance (including medical, extended health, dental, short and
         long term disability and life insurance) and such other benefits as are
         made available to employees of the Agency, provided that the Executive
         qualifies for coverage under such plans.

o        The Agency shall provide the Executive with the same additional
         benefits he received under his employment agreement dated as of January
         2, 1997 (a copy of which has been provided to the Agency and Hub),
         including but not limited to the benefits enumerated in section
         2(c)(iii) thereof.

                                    VACATION

The Executive shall be entitled to a minimum of four (4) weeks vacation per year
and such additional vacation as may be agreed upon by the parties and as is
reasonable under all of the circumstances, including the amount of vacation
taken by other executives of similar standing in Hub Group (the "Vacation").

<PAGE>

                                   SCHEDULE C

                         ALTERNATIVE DISPUTE RESOLUTION

o        Disputes will be submitted to mediation before a mediator in New York,
         New York as a condition precedent to resort to litigation by any party
         to this Agreement; provided, however, any party may seek injunctive
         relief in court to preserve the status quo pending the completion of
         mediation. The mediator shall be chosen by mutual agreement of the
         parties; provided, however, if the parties are unable to agree upon a
         mediator within ten days, the mediation shall be conducted by a
         mediator to be identified by the parties within 30 days of the
         execution hereof.

o        At such time as a dispute shall arise that is submitted to mediation,
         each of the parties shall execute such mediation agreement in such form
         as shall then be used by the chosen mediator or mediation firm for such
         purposes and shall join in a request that the mediator provide an
         evaluation of the parties' cases and of the likely resolution of the
         dispute if not settled. The cost of the mediator and mediation shall be
         borne equally by the parties.

o        In the event that one party to this Agreement is willing to accept the
         mediator's proposed resolution of the dispute, if any, but the other
         party (the "Contesting Party") elects to pursue claims in a court of
         competent jurisdiction and the determination of the rights of the
         Contesting Party under the final judgment of the court on the
         Contesting Party's claim(s) is less advantageous to the Contesting
         Party than the determination of such rights contained in the mediator's
         evaluation of such claim(s), the Contesting Party shall be deemed to
         have agreed to pay the costs and expenses of litigation of such
         claim(s), including reasonable attorneys' fees of the other party to
         the litigation.

<PAGE>

                                   SCHEDULE D

                              ADDITIONAL PROVISIONS

1.       The Executive, the Agency and Hub agree that, simultaneously with the
         execution and delivery of this Agreement, the Management Bonus
         Agreement will be executed and delivered in substantially the form
         attached as Exhibit B to this Agreement; provided, however, that prior
         to such execution and delivery that agreement will require certain
         modifications to correctly reflect the understanding of the parties
         that the Eligible Employees referred to therein will be entitled to the
         same bonus of $1,333,000 in any future year in which the Agency
         produces "NIBGAIT" (as defined therein) of $17,571,000 and to correctly
         reflect the calculation of NIBGAIT in accordance with the one-page
         schedule (entitled "NIBGAIT Analysis") attached to Exhibit B. Further,
         if NIBGAIT is affected by a change in the corporate organization
         structure of the Agency, NIBGAIT will be revised.

2.       Hub hereby appoints the Executive as the President of the U.S.
         Operations of Hub International Limited and the Executive hereby
         accepts such appointment, to continue for the duration of the
         Executive's employment under this Agreement, provided that, save and
         except for reimbursement for expenses incurred in the fulfillment of
         such office, the Executive shall not be entitled to any further
         compensation beyond that contemplated herein. The Executive shall
         perform such duties as Hub, acting reasonably, shall assign from time
         to time in connection such position, provided that such duties shall
         not interfere with the Executive's ability to provide the Services.

3.       The Executive, the Agency and Hub agree that promptly after the
         execution and delivery of this Agreement, Hub will establish a
         restricted stock plan or arrangement for the benefit of various
         employees of the Hub Group (the "Restricted Stock Arrangement")
         pursuant to which Hub will contribute for the benefit of certain key
         employees of the Company (including the Executive) a number of shares
         (the "Kaye Agency Shares") of its common stock having a value of
         $3,000,000 (U.S.) with each share valued at $17.00 (Canadian). The
         exchange rate for this purpose shall be 1.5 Canadian Dollars to each
         U.S. Dollar. The Restricted Stock Arrangement shall include the
         following provisions:

             * One-third of the Kaye Agency Shares in the Restricted Stock
             Arrangement shall be allocated to the Executive.

             * The Executive shall have the authority to allocate the
             remaining two-thirds of the Kaye Agency Shares among certain
             key employees of the Agency.

             * The awarded stock vests as to 50% after 5 years (unless
             waived by the executive) and 50% after 10 years.

<PAGE>

                                      -16-

             * The award will cease to vest if the executive has for any
             reason ceased to be an employee before the award vests, except
             in the following cases:

                  - Normal retirement age (award vests fully);

                  - Dismissal without just cause (award vests fully);

                  - Death (award vests pro rata); and

                  - Long-term disability (award vests pro rata)

4.       The Executive and Hub agree that, simultaneously with the execution and
         delivery of this Agreement, they shall execute and deliver the
         Investment Letter in the form attached as Exhibit A and shall
         consummate the transactions contemplated therein as promptly as
         practicable.<PAGE>
                                                                   Exhibit 10.13

                         EXECUTIVE EMPLOYMENT AGREEMENT

                  THIS EMPLOYMENT AGREEMENT made as of JANUARY 1, 2002.

B E T W E E N:

         R. CRAIG BARTON, BUSINESSMAN, OF 44843 SOUTH SUMAS ROAD,
         IN THE DISTRICT OF CHILLIWACK, IN THE PROVINCE OF
         BRITISH COLUMBIA;  V2R 4A7;

         (THE "EXECUTIVE")

         - AND -

         BARTON INSURANCE BROKERS LTD., A BODY CORPORATE, DULY
         INCORPORATED UNDER THE LAWS OF THE PROVINCE OF
         BRITISH COLUMBIA;

         (THE "BROKER")

         - AND -

         HUB INTERNATIONAL LIMITED, A CORPORATION INCORPORATED
         PURSUANT TO THE LAWS OF ONTARIO;

         ("THE HUB")

         In consideration of the mutual covenants and agreements contained
herein, the parties hereto agree as follows:

1.       INTERPRETATION

         (a)   "AGREEMENT" means this agreement, all Schedules attached hereto
               and the amendments made hereto by written agreement between the
               Executive and the Broker;

<PAGE>

         (b)   "BASIC COMPENSATION" means the compensation indicated in
               SCHEDULE "B";

         (c)   "BENEFITS" means the benefits to which the Executive is entitled
               in accordance with SCHEDULE "B";

         (d)   "DEATH" means a natural death and, in addition, is deemed to
               include a continuous period of at least SIX (6) MONTHS during
               which time the Executive has not been in the offices of the
               Broker during normal working hours and the Executive's
               whereabouts are unknown to the Broker;

         (e)   "DISABILITY" means the mental or physical state of the Executive
               is such that the Executive would be considered to suffer from a
               "total disability" or a "disability" or to be "totally disabled"
               or "disabled" in accordance with the Broker's group benefits
               insurance policy at the relevant time;

         (f)   "SCHEDULE" means a schedule to this Agreement;

         (g)   "SECTION" means a section or subsection to this Agreement;

         (h)   "SERVICES" means the duties and the responsibilities set out in
               SCHEDULE "A" to this Agreement, as the same may be amended or
               extended by agreement of the parties from time to time;

         (i)   "SUBSIDIARIES" means the "subsidiary companies", as defined in
               the SECURITIES ACT (Ontario), of The Hub, including the Broker;

         (j)   "THE HUB" means Hub International Limited;

         (k)   "THE HUB GROUP" means The Hub and the Subsidiaries; and
<PAGE>

                                      -3-

         (l)   "VACATION" means the vacation to which Executive is entitled, as
               contemplated in SCHEDULE "B".

1.2      It is agreed by and between the parties hereto that the Schedules
referred to herein, as itemized below and attached hereto, shall form a part of
this Agreement and this Agreement shall be construed as incorporating such
Schedules:

         SCHEDULE "A" - Services
         SCHEDULE "B" - Basic Compensation, Benefits and Vacation

2.       EMPLOYMENT

2.1      The Broker agrees to employ the Executive and the Executive accepts
such employment and represents to the Broker that the Executive has the required
skills and expertise to perform the Services.

2.2      During the term of the Executive's employment with the Broker the
Executive agrees to devote the whole of the Executive's business time and
attention to the Services in a conscientious and competent manner and with the
utmost integrity.

2.3      The Executive shall perform the Services primarily at the office of the
Broker at such locations as the Broker's and The Hub's reasonable needs may
dictate from time to time.

3.       REMUNERATION AND BENEFITS

3.1      The Executive shall be paid the Basic Compensation in such payment
periods as are established from time to time by the Broker for its employees,
subject to deduction and remittance to the appropriate governmental authority of
all applicable taxes and other amounts.

<PAGE>

                                      -4-

3.2      The Executive shall be entitled to and the Broker shall provide the
Benefits.

3.3      The Broker shall reimburse the Executive for reasonable travel and
other business expenses incurred by the Executive in performing the Services, as
approved in advance by the Broker.

3.4      The Executive shall be entitled to the Vacation, to be scheduled at
the mutual convenience of the parties.

4.       PROPRIETARY, CONFIDENTIALITY AND NON-SOLICITATION

4.1      PROPERTY. The Executive acknowledges and agrees that all books of
business, policies of insurance, documents, computer records, vouchers and other
books, papers and records connected with the business of The Hub Group, whether
paid for, serviced or produced by the respective corporation of The Hub Group or
not, are the property of the respective corporation and shall be at all times
open to the respective corporation for the purposes of examination, and shall be
turned over and surrendered to the respective corporation or its representatives
upon the order of the respective corporation or on the termination of the
Executive's employment with the Broker of any reason whatsoever.

4.2      CONFIDENTIALITY. The Executive acknowledges that in the course of
carrying out the Executive's duties to the Broker, the Executive will have
access to and will be entrusted with confidential information concerning the
business and corporate affairs of the Broker, the other corporations of The Hub
Group and their clients ("Confidential Information"), including information
pertaining to the respective corporation's relationship with insurance carriers,
employee and producer compensation structures, client underwriting and policy
renewal information, internal accounting procedures, policies and information,
unique insurance product features, insurance programs developed by the
respective corporation (with or without the assistance of the Executive),
marketing strategies and employee training procedures. The Executive agrees that
all Confidential Information

<PAGE>

                                      -5-

acquired by the Executive or disclosed to the Executive shall be held in the
strictest confidence. The Executive shall not disclose any Confidential
Information to any other person during the term of the Executive's employment or
at any time thereafter without the prior written consent of the respective
corporation, except as may be required for the Executive to fulfil the
Executive's employment duties to the Broker. Neither during the term of the
Executive's employment nor at any time thereafter will the Executive make use of
any Confidential Information for the Executive's own benefit or for the benefit
of any other person or persons, firm, partnership, association or corporation
other than The Hub Group, or assist others in so doing; provided that nothing
herein shall prohibit the Executive from using Confidential Information that:

         (i)   was readily available to the public at the time such information
               was available to the Executive;

         (ii)  become readily available to the public after the time such
               information was made available to the Executive other than
               through a breach of this Agreement; or

         (iii) is subsequently, lawfully and in good faith obtained by the
               Executive from an independent third party without a breach of
               this Agreement.

         The Executive acknowledges and agrees that the disclosure of any
Confidential Information to competitors of the Broker or the other corporations
of The Hub Group or to the general public may be highly detrimental to the
business interests of The Hub Group. The Executive acknowledges and agrees that
the right of The Hub Group to maintain Confidential Information as confidential
constitutes a proprietary right which the respective corporation is entitled to
protect. Unless otherwise agreed to by the respective corporation, all
Confidential Information shall be and shall remain the sole and exclusive
property of the respective corporation. The Executive shall return to the
Broker, forthwith upon the effective date of termination of the Executive's
employment for any reason whatsoever, all Confidential Information acquired in
connection with the Executive's employment by the Broker. The Executive hereby
agrees with the Broker that, in the event of any

<PAGE>

                                      -6-

breach by the Executive of the provisions of this SECTION 4.2, the respective
corporation(s) of The Hub Group shall be entitled to equitable relief, including
an injunction and specific performance, in any competent court having
jurisdiction over the Executive, in addition to all other remedies available to
the respective corporation at law or in equity.

4.3      NON-COMPETITION AND NON-SOLICITATION

         (a)   The Executive covenants and agrees that the Executive will not,
               without the prior written consent of the Broker, either during
               the term of this Agreement or at any time within a period of TWO
               (2) YEARS following the termination of this Agreement in
               accordance with its terms, either individually, in partnership,
               jointly, or in conjunction with any other person or persons,
               firm, partnership, association, company, corporation or any other
               entity as principal, agent, employee, shareholder, or in any
               other capacity whatsoever carry on or be engaged in, or be
               concerned with or be interested in or advise, lend money to,
               guarantee the debts or obligations of, or permit the Executive's
               name or any part thereof to be used or employed by any person or
               persons, firm partnership, association, company, corporation or
               any other entity engaged in or concerned with, or interested in
               any insurance agency or brokerage business in BRITISH COLUMBIA.
               Notwithstanding the foregoing, the provisions of this SECTION
               4.3(A) shall not apply in the event that this Agreement is
               terminated by the Broker pursuant to SECTION 5.1 or the
               employment of the Executive is otherwise terminated by the Broker
               without cause.

         (b)   The Executive agrees that the Executive shall not directly or
               indirectly approach or solicit any client of The Hub Group except
               for the benefit of The Hub Group or attempt to direct any such
               client away from The Hub Group at any time during the term of the
               Executive's employment and for the period of

<PAGE>

                                      -7-

               TWO (2) YEARS after termination of this Agreement in accordance
               with its terms.

         (c)   If the Executive violates any of the provisions of SECTIONS
               4.3(B), the Executive shall pay to The Hub a sum equal to THREE
               (3) TIMES the annual commissions and fees generated by clients
               obtained by the Executive in violation of SECTION 4.3(B). For
               each such client, the annual commissions and fees shall be the
               greater of the amount generated in the year preceding and the
               amount generated in the year following the date upon which the
               client becomes a client of the competing business.

         (d)   The amount payable by the Executive under SECTION 4.3(C) shall be
               paid in cash and as soon as it is determinable and may be set-off
               by the Broker against any amount owing or to become owing by the
               Broker or The Hub to the Executive. The Executive acknowledges
               that the said amount is a reasonable calculation of the
               respective corporation's liquidated damages given the interest of
               the corporation in maintaining its client base and the future
               profits which would be foregone by the corporation if the
               Executive violates the provisions of SECTION 4.3(B). The
               Executive further acknowledges that the payment by the Executive
               pursuant to SECTION 4.3(C) shall in no way limit the other
               remedies to which the respective corporation of The Hub Group may
               be entitled as a result of the Executive's breach of SECTIONS
               4.3(A) or (B). Without limiting the generality of the foregoing,
               the Executive recognizes that a breach by the Executive of any of
               the covenants contained in SECTION 4.3(A) would result in damages
               to the respective corporation of The Hub Group and that The Hub
               Group may not be adequately compensated for such damages by the
               payment of the amounts contemplated in SECTION 4.3(C). The
               Executive agrees that in the event of any such breach, and in
               addition to any other remedies available to The Hub

<PAGE>

                                      -8-

               Group at law or otherwise, The Hub shall, on behalf of the
               respective corporation of The Hub Group, be entitled as a matter
               of right to apply to a court of competent jurisdiction for relief
               by way of injunction, restraining order, decree or otherwise as
               may be appropriate to ensure compliance by the Executive with the
               provisions of SECTIONS 4.3(A) and (B).

4.4      The Executive agrees that all restrictions in this SECTION 4 are
necessary and fundamental to the protection of the business of the Broker and
the other corporations of The Hub Group and are reasonable.

5.       TERM AND TERMINATION

5.1      This Agreement and the employment of the Executive hereunder shall be
for an indefinite term, subject to termination by the Broker for any reason
whatsoever without notice, provided that, in the event that the Agreement is
terminated by the Broker in accordance with this SECTION 5.1, the Executive
shall be entitled to continue to receive an amount equal to the Basic
Compensation (save and except the bonus component, if any, related thereto) and
the value of the group insurance and automobile allowance components of the
Benefits for the severance period hereinafter defined. Notwithstanding the
foregoing, in the event that the Executive breaches any of the provisions of
SECTION 4, effective as at the date of such breach the Executive shall not be
entitled to any further payment, provided however, that in no event shall the
Executive receive an amount that is less than the prescribed minimum under
applicable employment standards legislation. For the purposes of this SECTION
5.1, "SEVERANCE PERIOD" means the period commencing as at the effective date of
such termination and ending on the first anniversary of the date thereof.

5.2      Notwithstanding SECTION 5.1, this Agreement may be terminated
immediately by either party, for cause, without further obligation to the other
party (THE "DEFAULTING PARTY"), on notice to the defaulting party in the event
that the defaulting party:

<PAGE>
                                      -9-

         (a)   shall make a general assignment for the benefit of creditors or
               shall be adjudicated a bankrupt or insolvent or file a voluntary
               petition or answer seeking reorganization or an arrangement with
               its creditors or take advantage of a bankruptcy, insolvency,
               dissolution or liquidation law or analogous statute; or

         (b)   is in continuing breach of any of its material covenants or
               obligations hereunder and has failed to rectify such breach
               within SIXTY (60) DAYS following receipt of notice of such breach
               from the other party;

provided that, in the event that the Agreement is terminated by the Broker in
accordance with this SECTION 5.2, the Executive shall be entitled to receive an
amount equal to the Basic Compensation and the value of Benefits to the date of
termination.

5.3      Notwithstanding SECTION 5.1, this Agreement may be terminated by the
Broker on notice to the Executive due to the Disability of the Executive, upon
NINETY (90) DAYS' notice to the Executive.

5.4      Notwithstanding SECTION 5.1, this Agreement shall be terminated
immediately upon the Death of the Executive or, unless otherwise agreed by the
parties, upon the Executive attaining SIXTY-FIVE (65) YEARS of age.

5.5      Upon termination of this Agreement in accordance with SECTION 5.1 or
SECTION 5.2, the Executive shall have no other claim against the Broker for
damages for failure to give reasonable notice or pay in lieu of notice,
severance pay or otherwise, except as set out in the respective Section.

5.6      In the event of termination of this Agreement in accordance with the
terms hereof, the provisions of SECTION 4 shall continue in full force and
effect.

<PAGE>

                                      -10-

6.       ARBITRATION

         Any question, dispute or disagreement (HEREINAFTER REFERRED TO
AS THE "DISPUTE") arising under or pertaining to this Agreement including the
interpretation, application or construction of this Agreement or any part
thereof shall be determined by arbitration in accordance with the following
terms and provisions:

         (a)   the Dispute shall be submitted to a single arbitrator as may be
               agreed upon by the parties hereto, provided that if a single
               arbitrator has been requested by one of the parties hereto and
               the other party fails to agree on a single arbitrator, then the
               Dispute may be referred to a board of THREE (3) arbitrators or
               TWO (2) to be named, as to ONE (1) each, by the parties and the
               third to be appointed by the first TWO (2) named arbitrators;

         (b)   if either party shall refuse or neglect to appoint an arbitrator
               within TEN (10) business days after the other party shall have
               appointed an arbitrator and shall have served a written notice
               upon the party so refusing or neglecting to appoint an
               arbitrator, then the arbitrator first appointed shall, at the
               request of the party appointing the Executive to proceed to
               hearing and determine the Dispute as if he or she were a single
               arbitrator appointed by both parties for that purpose;

         (c)   if TWO (2) arbitrators are so named within the time prescribed
               and they do not agree within a period of TEN (10) business days
               upon the appointment of the third arbitrator, then upon the
               application of either party, the third arbitrator shall be
               appointed by a Judge of the Supreme Court of British Columbia;

         (d)   the determination of the Dispute which shall be made by the said
               arbitrators of a majority of them, or by a single arbitrator, as
               the case may be, shall be

<PAGE>

                                      -11-

               final and binding upon the parties hereto and the costs of the
               arbitration and remuneration of the third arbitrator shall be
               borne equally between all parties thereto, each party bearing the
               remuneration of the arbitrator appointed by it; and

         (e)   the provisions of SECTION 6 shall be deemed to be submission to
               arbitration within the provisions of the COMMERCIAL ARBITRATION
               ACT of British Columbia, as amended from time to time.

7.       GENERAL PROVISIONS

7.1      Any and all previous agreements, written or oral, between the parties
hereto or on their behalf relating to the employment of the Executive by the
Broker, are hereto terminated and cancelled and each of the parties hereto
hereby releases and forever discharges the other hereto of and from all manner
of actions, causes of action, claims and demands whatsoever under or in respect
of any such agreement.

7.2      The provisions hereof, when the context permits, shall enure to the
benefit of and be binding upon the heirs, executors, administrators and legal
personal representatives of the Executive and the successors and assigns of the
Broker, respectively.

7.3      This Agreement shall be construed in accordance with the laws of the
Province of British Columbia and the laws of Canada applicable therein.

7.4      If any covenant or provision of this Agreement is determined to be
void or unenforceable, in whole or in part, it shall not be deemed to affect or
impair the validity of any other covenant or provision and this Agreement shall
be read and construed as if such void or unenforceable provision were excluded
from this Agreement.
<PAGE>

                                      -12-

7.5      Any notice, demand, request, consent, approval or waiver required or
permitted to be given hereunder shall be in writing and may be given to the
party for whom it is intended by personally delivering it to such party or by
mailing the same by prepaid registered mail:

                  In the case of the Broker, to:

                  BARTON INSURANCE BROKERS LTD.
                  45710 AIRPORT ROAD
                  CHILLIWACK, B.C.
                  V2P 6Z9

                  ATTENTION:  R. CRAIG BARTON

         And in the case of the Executive, to the Executive's last known
address.

         Any such notice or other documents delivered personally shall deemed
to have been received by and given to the addressee on the day of delivery and
any such notice or other documents mailed, as aforesaid, shall be deemed to have
been received by and given to the addressee on the third business day following
the date of mailing. Any party may at any time give notice to the other or any
change of address.

7.6      All amounts referred to herein are in Canadian dollars unless
otherwise indicated.

         IN WITNESS WHEREOF the parties hereto have hereunto executed this
Agreement as of the day and year first above written.

                            BARTON INSURANCE BROKERS LTD.

                            Per: /s/ W. Kirk James
                                 -------------------------------
                                 Authorized Signatory

                            /s/ R. Craig Barton
                            -----------------------------------
                            R.  CRAIG BARTON

                            HUB INTERNATIONAL LIMITED

                            Per: /s/ W. Kirk James
                                 ------------------------------
                                 Authorized Signatory

<PAGE>

                     THIS IS SCHEDULE "A" REFERRED TO IN THE
                    ANNEXED EMPLOYMENT AGREEMENT MADE BETWEEN
                          THE BROKER AND THE EXECUTIVE

                                    SERVICES

The Executive shall perform such duties as the Broker, acting reasonably, shall
assign from time to time in connection with the Executive's position as
President and Chief Executive Officer of the Broker, including, without
limitation, the following:

         To follow the lawful orders and directions of the Board of
         Directors of the Broker provided to the Executive from time to time.

<PAGE>

                     THIS IS SCHEDULE "B" REFERRED TO IN THE
                    ANNEXED EMPLOYMENT AGREEMENT MADE BETWEEN
                          THE BROKER AND THE EXECUTIVE

                               BASIC COMPENSATION

The Executive is entitled to be paid the following salary and/or commission,
subject to review from time to time and adjustment as recommended by the
President of The Hub and approved by the Chair of The Hub having regard to the
performance of the Broker relative to the Broker's Basic Profit and NIBGAIT
targets (as defined in the Management Bonus Agreement between the Broker and The
Hub):

              FOUR HUNDRED THOUSAND ($400,000.00) DOLLARS PER ANNUM

                                    BENEFITS

O        Group insurance (including medical, dental, death and disability) and
         such other benefits as are made available to employees of the Broker,
         provided that the Executive qualifies for coverage under such plans.

O        A monthly automobile allowance.

                                    VACATION

The Executive shall be entitled to such vacation as the Broker may agree upon.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00035-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00035-of-00352.parquet"}]]