Document:

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                                                                   Exhibit 10.30

                              TERMINATION AGREEMENT
                              ---------------------

          THIS AGREEMENT, dated as of February 1, 2002, between USI Insurance
Services Corp., a Delaware corporation (the "Company") and wholly owned
subsidiary of U.S.I. Holdings Corporation, a Delaware corporation ("Holdings"),
Holdings, (the Company and Holdings, collectively the "Companies"), and Loren
Claypool ("Claypool"), an Illinois resident.

                              W I T N E S S E T H:
                              - - - - - - - - - -

          WHEREAS, Claypool has been employed by the Company and is a
shareholder of Holdings; and

          WHEREAS, Holdings and the Company, on the one hand, and Claypool, on
the other hand, mutually wish to terminate their employment relationship, and
the parties hereto wish to agree as to certain matters in connection with such
termination and to restate and redefine their obligations to each other; and

          NOW, THEREFORE, in consideration of the premises and of the mutual
agreements set forth herein, the parties agree as follows:

          1. Termination. Claypool's employment relationship with the Company
             -----------
and service as Senior Vice President and Chief Information Officer of the
Company and Holdings shall terminate, without cause, by mutual agreement
effective as of the close of business on February l, 2002 and, by this
Agreement, the Employment Agreement effective as of August 30, 2000 (the
"Employment Agreement"), between the Company and Claypool shall terminate
effective as of such time (except as provided in Section 3 of this Agreement).
Claypool also hereby resigns from the positions of officer of each direct and
indirect subsidiary of Holdings in which capacity he has heretofore served. As
consideration for such termination and resignations, the Company and Holdings
agree, to the following:

          (a)(i) The Company shall pay Claypool an amount equal to $110,000
     (less applicable tax withholdings) payable on or before March 31, 2002.

          (ii) The Company shall also reimburse Claypool for business expenses
     actually incurred by him in the ordinary course of business prior to
     February 1, 2002. Such reimbursement shall be made to Claypool promptly
     following his delivery to the Company of customary documentation of the
     incurrence of such expenses.

          (b) The Company shall pay Claypool at an annual rate of $275,000 per
     year for the 12-month period commencing February l, 2002 and ending January
     31, 2003 (the "Payment Period"). Such payments shall be made on a
     semimonthly basis in accor-

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                                      -2-

     dance with the Company's regular payment cycle in as equal amounts as
     practicable. Payments made shall be subject to applicable tax withholding.

          (c) During the Payment Period, the Companies shall pay Claypool's
     healthcare insurance premiums, up to the same amount of premium that the
     Company is paying on behalf of Claypool under the employee healthcare
     benefit plan in which he participates on January 31, 2002 for the 12-month
     period commencing February 1, 2002 and ending January 31, 2003.

          (d) The Companies shall provide Claypool with Executive Outplacement
     assistance through Drake, Beam, Morin, at a level deemed appropriate by
     USI, for a period of three months from the date of termination.

          (e) The Company agrees that Claypool may retain his Compaq laptop
     computer EVO N600C and Palm VII, and Company transfers all ownership rights
     in such items to Claypool.

          (f) Claypool shall assist Holdings in the transition of his functions
     and responsibilities to his successors as reasonably requested by the
     Companies.

          (g) Claypool shall cooperate with Holdings with respect to (i) any
     lawsuit, arbitration or other proceeding between the Companies or their
     subsidiaries and any third party, and shall make himself available at
     reasonable times during normal business hours to provide information,
     including, without limitation, testimony, in any such proceedings. If, in
     connection with Claypool's performance of his obligations pursuant to this
     Section 1(g), Claypool reasonably determines that it is necessary for him
     to be represented by separate counsel, Claypool shall select (subject to
     Holdings' approval, which approval shall not be unreasonably withheld),
     such counsel at Holdings' sole cost and expense, provided that the fees and
     other charges of such counsel are reasonable and customary. In addition,
     Holdings agrees to reimburse Claypool for all other reasonable expenses
     incurred by Claypool in connection with the performance of his obligations
     pursuant to this Section 1(g).

          2. Vesting of SARs. The provisions in the Share Appreciation Right
             ---------------
Award Agreement granted September 1, 2000 between Claypool and Holdings shall
continue in full force and effect, except that (i) 25,000 of the SARs shall vest
100% in Claypool as of February 1, 2002 (ii) 25,000 of the SARs shall be
cancelled as of February 1, 2002, and (iii) for purposes of determining the
Exercise Date, under Section 6(b) of the SAR agreement the effective date of
termination shall be deemed to be the date that other SAR holders with grants
containing the same language of said Section 6(b) have a Qualification Event.
Capitalized terms used in this Section 2, not otherwise defined herein, are used
as defined in the SAR Agreements.

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                                      -3-

          3. Restrictive Covenants. Claypool acknowledges that the provisions of
             ---------------------
Sections 6 and 7 of the Employment Agreement shall remain in full force and
effect in accordance with their terms, except for Section 7.2 which the Holdings
agrees to waive enforcement of regarding Claypool's future employment.

          4. Delivery of Companies' Property. Claypool shall, prior to the
             -------------------------------
execution of this Agreement, provide to Holdings all property of the Companies
and their subsidiaries, including any computerized data and computer software
owned or licensed by the Companies or their subsidiaries, as well as all
documents of the Companies or their subsidiaries, including all copies thereof,
in his possession. The Companies shall contemporaneous with the execution of
this Agreement provide to Claypool all of the property of Claypool in its
possession.

          5. No Awareness of Claim and Releases. (a) Claypool represents and
             ----------------------------------
warrants to the Companies that as of the date hereof and giving effect to the
transactions contemplated by this Agreement, Claypool is not aware of any
claims, demands or causes of action which Claypool has against the Companies.
Claypool hereby agrees to indemnify the Companies for any breach of this
representation and warranty.

          (a) The Companies each represent and warrant to Claypool that as of
the date hereof and giving effect to the transactions contemplated by this
Agreement, the Companies are not aware of any claims, demands or causes of
action which the Companies have against Claypool. The Companies hereby agree to
indemnify Claypool for any breach of this representation and warranty.

          (b) Simultaneously with the execution of this Agreement, the Companies
and Claypool will exchange executed Releases in the forms attached hereto as
Exhibits A and B, respectively.

          (c) Each of the parties agrees and covenants that it will not file or
cause to be filed any lawsuit, arbitration or other proceeding asserting any
claim released by the release executed by it. In the event a party files any
such lawsuit, arbitration or other proceeding, the party so filing will
indemnify the other party for all costs incurred in defending against such
proceeding, including attorneys fees.

          (d) Holdings shall indemnify and hold harmless Claypool if he is made,
or threatened to be made a party to any action, proceeding or investigation,
whether civil, criminal, or administrative, and whether involving an actual or
alleged breach of duty, neglect or error by Claypool, or any other actual or
alleged act or omission of Claypool, by reason of or arising from the fact that
Claypool was an officer or employee of Holdings or any of its direct or indirect
subsidiaries. Claypool shall give prompt notice to Holdings of any such action,
proceeding or investigation. Such indemnification and hold harmless includes a
duty to provide Claypool with competent counsel at the sole expense of Holdings
(or if Claypool reasonably

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                                      -4-

determines that it is necessary for him to be represented by separate counsel,
Claypool shall select (subject to Holdings' approval, which approval shall not
be unreasonably withheld), such counsel at Holdings' sole cost and expense,
provided that the fees and other charges of such counsel are reasonable and
customary) and to pay in full all judgments, fines, amounts paid in settlement,
costs, charges and expenses, including attorneys fees and including appeals
therefrom; provided, however, that no indemnification shall be provided to
           --------  -------
Claypool if a judgment or other final adjudication adverse to Claypool
establishes that (i) his acts or omissions were committed in bad faith or were
the result of active and deliberate dishonesty and profit or other advantage to
which he was not legally entitled. If Holdings fails to provide competent
counsel for Claypool, Claypool shall be entitled to retain counsel of his own
choosing at Holding's expense. Claypool shall be entitled to the costs of any
proceeding to enforce this provision, including reasonably attorneys' fees and
expenses.

          6. Notice. All communications given under this Agreement shall be in
             ------
writing (including by telecopy) and shall be deemed to have been duly given when
delivered by hand or Federal Express or similar overnight courier to, or mailed
by prepaid registered or certified mail, or, in the case of telecopy notice,
when received, addressed to, the party for whom intended:

          U.S.I. Holdings Corporation,
          and/or USI Insurance Services Corp.
          50 California Street, 24th Flr.
          Attention: General Counsel
          Telecopy:  415-837-1650
          Telephone: 415-983-0100

          Mr. Loren W. Claypool
          3912 Broadmoor Circle
          Naperville, IL 60564

          7. Non-disparagement. Subject to obligations under applicable laws and
             -----------------
regulations, neither Claypool nor either of the Companies or their senior
officers, shall publicly make any statements or comments that disparage the
reputation of Claypool, or either of the Companies.

          8. Communications by Claypool. Claypool agrees that he will not at any
             --------------------------
time discuss any matter (including claims or potential claims against the
Companies) concerning the Companies, their officers or directors, or any of
their subsidiaries, with any employee or former employee of the Companies or any
of their subsidiaries, or anyone known by Claypool to be adverse or potentially
adverse to the Companies without the prior consent of the Companies, unless such
communication is in furtherance of Claypool's performance of his obligations un-

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                                      -5-

der Section 1 (f) and (g). The restriction on communications by Claypool
referenced in this Section 9 shall be in place so long as the Company is
continuing to make severance payments under Section 1 (b); provided, however,
                                                           --------  -------
that the restriction will continue beyond the severance period with respect to
communication with anyone who is a party to an adversarial proceeding against
the Companies that existed at the end of the severance period. Nothing contained
herein, however, shall preclude Claypool from discussing any matter concerning
the Companies, their officers of directors, or any of their subsidiaries with
any governmental regulatory or self-regulatory agency. If compelled to testify
by a validly served subpoena in any legal proceeding or by regulatory authority,
Claypool with testify truthfully as to all matters concerning his employment at
the Companies. Claypool agrees to disclose to Holdings as soon as reasonably
practicable all request for information, and his anticipated responses thereto.

          10. Entire Agreement. This Agreement sets forth the entire
              ----------------
understanding of the parties with respect to its subject matter, merges and
supersedes all prior and contemporaneous understandings with respect to its
subject matter and may not be waived or modified, in whole or in part, except by
a writing signed by each of the parties. No waiver of any provision of this
Agreement in any instance shall be deemed to be a waiver of the same or any
other provision in any other instance. Failure of any party to enforce any
provision of this Agreement shall not be construed as a waiver of its rights
under such provision.

          11. Full Settlement; Legal Fees. The Companies' obligation to make the
              ---------------------------
payments provided for in this Agreement and otherwise to perform its obligations
hereunder shall not be affected by any set-off, counterclaim, recoupment,
defense or other claim, right or action which the Companies may have against
Claypool or others. In any action or proceeding brought to enforce any provision
of this Agreement, and where any provision hereof or thereof is validly asserted
as a defense, the successful party shall be entitled to recover reasonable
attorney's fees in addition to any other available remedy.

          12. Successors and Assigns. This Agreement shall be binding on,
              ----------------------
enforceable against and inure to the benefit of, the parties and their
respective heirs, personal representatives, successors and assigns, and nothing
herein is intended to confer any right, remedy or benefit on any other person;
provided, however, that Claypool's rights hereunder are personal to him and
--------  -------
shall not be voluntarily or involuntarily assigned or transferred except by will
or operation of law and any attempt to do so shall be void.

          13. Governing Law. This Agreement shall in all respects be governed by
              -------------
and construed in accordance with the laws of the State of Illinois applicable to
agreements made and fully to be performed in such state, without giving effect
to conflicts of law principles.

          14. Construction. Headings contained in this Agreement are for
              ------------
convenience only and shall not be used in the interpretation of this Agreement.
References to Sections are to the sections of this Agreement.

<PAGE>

                                      -6-

          15. Severability. If any provision of this Agreement is held to be
              ------------
invalid or unenforceable by a court of competent jurisdiction, this Agreement
shall be interpreted and enforceable as if such provision were severed or
limited, but only to the extent necessary to render such provision and this
Agreement enforceable. This Agreement has been jointly drafted by the parties,
neither of whom shall be deemed to be its drafter for purpose of any rule of law
which construes a document against the person who drafted it.

          16. Arbitration. All controversies which may arise between the parties
              -----------
hereto including, but not limited to, those arising out of or relating to this
Agreement shall be determined by binding arbitration applying the laws of the
State of Illinois as set forth in Section 13 above. Any arbitration pursuant to
this Agreement shall be conducted in Chicago, IL in accordance with the
Commercial Arbitration Rules of the American Arbitration Association as they may
be in effect from time to time. The arbitration shall be final and binding upon
all the parties and the arbitrator's award shall not be required to include
factual findings or legal reasoning. Nothing in this Section 16 will prevent
either party from resorting to judicial proceedings if interim injunctive relief
under the laws of the State of Illinois from a court is necessary to prevent
serious and irreparable injury to one of the parties pending arbitration of the
controversy in question, even if the dispute underlying such request for
injunctive relief is arbitrable under the terms of this Agreement. Each of the
parties hereto agrees to submit to the jurisdiction and venue of the courts of
the State of Illinois, including the federal courts in the State of Illinois, in
any action or proceeding arising out of or related to this Agreement, and hereby
agrees to accept service of any and all writs, processes of summons in
connection with any such action or proceeding. Each party waives any right it
may have to transfer or change the venue of any arbitration or litigation
brought in accordance herewith.

          17. Voluntary Execution and Representation by Counsel. Claypool
              -------------------------------------------------
acknowledges that he has carefully read this Agreement and understands all of
its terms including the full and final release of claims set forth above.
Claypool further acknowledges that he has voluntarily entered into this
Agreement; that he has not relied upon any representation or statements, written
or oral, not set forth in this Agreement; that the only consideration for
signing this Agreement is as set forth herein; and that he has had this
Agreement reviewed by his attorneys and has received advice from those attorneys
with which he is satisfied.

          18. Effective date. (a) Although this Agreement is dated as of
              --------------
February 1, 2002 and has been executed on that day, the parties acknowledge that
Claypool shall have a period of twenty-one (21) days from February 1, 2002 in
which he may consider and revoke this Agreement. Accordingly, the parties
acknowledge that this Agreement shall not become effective unless and until,
after the expiration of twenty-one (21) days after February 1, 2002 Claypool has
not revoked the Agreement. Claypool acknowledges that this provisions provides
him with more than seven (7) days in which to revoke the Agreement after its
execution.

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                                      -7-

          (b) In the event Claypool revokes this Agreement pursuant to Section
18(a) or asserts the release executed by him as contemplated by this Agreement
is invalid on the grounds that his entry into this Agreement was not knowing or
voluntary within the meaning of the older Workers Benefit Protection Act of
1990, Claypool and Holdings agree that this Agreement is void and of no effect.

          19. Counterparts. This Agreement may be executed by the parties in
              ------------
counterpart, all of which shall be deemed to constitute one and the same
instrument.

<PAGE>

                                      -8-

          IN WITNESS WHEREOF, each of the parties has executed this Agreement as
of the date first set forth above.

                                                   U.S.I. HOLDINGS CORPORATION

                                                   By: /s/ David Eslick
                                                       -------------------------
                                                       Name: David Eslick
                                                       Title: Chairman & CEO

                                                   USI INSURANCE SERVICES CORP.

                                                   By: /s/ David Eslick
                                                       -------------------------
                                                       Name: David Eslick
                                                       Title: Chairman & CEO

                                                       /s/ LOREN W. CLAYPOOL
                                                       -------------------------
                                                           LOREN W. CLAYPOOL

<PAGE>

STATE OF California, COUNTY OF San Francisco ss.:

          On February 1, 2002, before me personally came David Eslick to me
known, who, by me duly sworn, did depose and say that deponent is the Chairman
and Chief Executive Officer of U.S.I. Holdings Corporation and USI Insurance
Services Corp., the corporations described in, and which executed the foregoing
Agreement, and that deponent signed deponent's name by order of the boards of
directors of the corporations.

[GRAPHIC]                                             /s/ Donna J. Doxey-Bowers
                                                      --------------------------
                                                      Notary Public

Dated: February 2, 2002

STATE OF ILLINOIS COUNTY OF Will ss.:

          On January 30, 2002, before me personally came Loren W. Claypool to me
known, and known to me to be the individual described in, and who executed the
foregoing Agreement, and duly acknowledged to me that he executed the same.

                                                      /s/ Illegible
                                                      --------------------------
                                                      Notary Public
Dated: February 2, 2002

                                                      [GRAPHIC]

<PAGE>

                                    EXHIBIT A
                                    ---------

                                     RELEASE
                                     -------

          U.S.I. Holdings Corporation, a corporation organized under the laws of
Delaware, and USI Insurance Services Corp., a corporation organized under the
laws of Delaware, (collectively, "RELEASOR"), for good and valuable
consideration, the receipt of which is hereby acknowledged, releases and
discharges Loren W. Claypool and his attorneys, heirs, executors,
administrators, successors and assigns (all, collectively, "RELEASEE"), from all
actions, causes of action, suits, debts, dues, sums of money, accounts,
reckonings, bonds, bills, specialties, covenants, contracts, controversies,
agreements, promises, variances, trespasses, damages, judgments, extents,
executions, claims and demands whatsoever, in law, admiralty or equity, which
against the RELEASES, the RELEASOR, and the RELEASOR'S successors and assigns
ever had, now have or hereafter can, shall or may have, for, upon, or by reason
of any matter, cause or thing whatsoever from the beginning of the world to the
day of the date of this release; provided, however, that excepted from this
                                 --------  -------
Release are all claims relating to or arising from the Termination Agreement
dated as of February 1, 2002 (the "Termination Agreement") executed herewith.

          The RELEASE contained herein is a full and final release applying to
all obligations, liabilities, actions, and losses, including but not limited to
damages, costs, expenses, and attorneys' fees, that may be incurred by RELEASOR
and arising out of or in any way connected with the employment relationship
between the parties, or the termination thereof. It is the intention of the
RELEASOR in executing this Agreement that the same shall be effective as a bar
to each and every claim, demand, and cause of action by the RELEASOR hereto
based on the parties' employment relationship and separation.

          RELEASOR fully understands that if the facts with respect to this
Agreement are hereafter found to be other than or different from the facts now
believed to be true, from whatever cause or for whatever reason, RELEASOR
expressly accepts and assumes the risk of such possible difference in fact and
agrees that this Agreement shall be and remain unaffected, notwithstanding any
such differences.

          The words "RELEASOR" and "RELEASEE" include all releasors and all
releasees under this RELEASE.

          This RELEASE may not be changed orally.

<PAGE>

          IN WITNESS HEREOF, the RELEASOR has caused this RELEASE to be executed
by its duly authorized officer on the 1st day of February 2002.

                                               U.S.I. HOLDINGS CORPORATION

                                               By: /s/ David Eslick
                                                   -----------------------------
                                                   Name: David Eslick
                                                   Title: Chairman & CEO

                                               USI INSURANCE SERVICES CORP.

                                               By: /s/ David Eslick
                                                   -----------------------------
                                                   Name: David Eslick
                                                   Title: Chairman & CEO

STATE OF California, COUNTY OF San Francisco ss.:

          On February 1, 2002, before me personally came David Eslick, to me
known, who, by me duly sworn, did depose and say that deponent is the Chairman
and Chief Executive of U.S.I. Holdings Corporation and USI Insurance Services
Corp., the corporations described in, and which executed the foregoing RELEASE,
and that deponent signed deponent's name by order of the boards of directors of
the corporations.

[GRAPHIC]                                             /s/ Donna J. Doxey-Bowers
                                                      --------------------------
                                                      Notary Public

<PAGE>

                                    EXHIBIT B
                                    ---------

                                     RELEASE
                                     -------

          Loren W. Claypool ("Claypool"), as RELEASOR, for good and valuable
consideration, the receipt of which is hereby acknowledged, releases and
discharges U.S.I. Holdings Corporation, its officers and directors, parents,
divisions, subsidiaries, affiliates, insurers, attorneys, and each of their
successors and assignees (all, collectively, "RELEASEE"), from all actions,
causes of action, suits, debts, dues, sums of money, accounts, reckonings,
bonds, bills, specialties, covenants, contracts, controversies, agreements,
promises, variances, trespasses, damages, judgments, extents, executions, claims
and demands whatsoever, in law, admiralty or equity, which against the RELEASEE,
the RELEASOR, and RELEASOR'S heirs, executors, administrators, successors and
assigns ever had, now has or hereafter can, shall or may have, for, upon, or by
reason of any matter, cause or thing whatsoever from the beginning of the world
to the day of the date of this release; provided, however, that excepted from
                                        --------  -------
this Release are all claims relating to or arising from the Termination
Agreement dated as of February 1, 2002 (the "Termination Agreement") executed
herewith.

          Without in any way limiting the foregoing, RELEASOR specifically
releases and discharges RELEASEE from any claims arising out of or related to
RELEASOR's employment or separation from employment, including, but not limited
to, any claims for salary, bonuses, severance pay, vacation pay, or any benefits
under the Employee Retirement Income Security Act, sexual harassment, or
discrimination based on race, color, national origin, ancestry, religion,
marital status, sex, sexual orientation, citizenship status, pregnancy, leave of
absence, medical condition or disability (as defined by the Americans with
Disabilities Act, or any other state or local law), or any other unlawful
discrimination, breach of implied or express contract, breach of promise,
misrepresentation, negligence, fraud, estoppel, defamation, infliction of
emotional distress, loss of consortium, violation of public policy or wrongful
or constructive discharge, and for attorneys' fees; provided, however, that
                                                    --------  -------
excepted from this Release are all claims relating to or arising from the
Termination Agreement.

          RELEASOR agrees that this Release includes a full and final release by
RELEASOR of all unknown claims or damages, as well as a release by RELEASOR of
any and all claims now known or disclosed that arise as a result of any act or
omission occurring before RELEASOR signs this Release.

<PAGE>

          IN WITNESS HEREOF, the RELEASOR has hereunto set RELEASOR'S hand on
the 1st day of February 2002.

                                                      /s/ Loren W. Claypool
                                                      --------------------------
                                                          Loren W. Claypool

State of ILLINOIS County of Will ss.:

          On January 30, 2002, before me personally came Loren W. Claypool, to
me known, and known to me to be the individual described in, and who executed
the foregoing RELEASE, and duly acknowledged to me that he executed the same.

                                                      /s/ Illegible
                                                      --------------------------
                                                      Notary Public

                                                      [GRAPHIC]<PAGE>
                                                                Exhibit 10.34

                    SHARE APPRECIATION RIGHT AWARD AGREEMENT
                    ----------------------------------------

(A)  Employee:

(B)  Grant Date: June 1, 2001

(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

<PAGE>

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.

                                        2

<PAGE>

               "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 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).

                                        3

<PAGE>

               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

                                        4

<PAGE>

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.

          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 June 1, 2002, 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 June
1, 2003, 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 June 1,
2004, 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 June 1,
2005, 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 June 1,
2006, 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 June 1,
2006.

               b. Cancellation and Early Exercise in the Event of Death,
                  ------------------------------------------------------
Termination by a USI Company for Disability or Other than for Cause. In the
-------------------------------------------------------------------
event that the Employee's employment shall be terminated by death, by Employer
for Disability or other than for Cause, 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

                                        5

<PAGE>

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.

          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

                                        6

<PAGE>

               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.

          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 L. Eslick
                                                   Title:  President & CEO

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

                                                   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

                                        7

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