Document:

EXHIBIT 10(cl)

                      Managing General Agency Agreement
                              Number HFS-03-001

                              Table of Contents

 Article 1      Appointment
 Article 2      Authority of the Managing General Agent
 Article 3      Compensation
 Article 4      Accounting and Records
 Article 5      Reports and Remittances
 Article 6      Expenses
 Article 7      Premium Escrow Accounts
 Article 8      Control of Expirations
 Article 9      Independent Contractor Relationship
 Article 10     Advertising
 Article 11     Agents Licensing
 Article 12     Agency Sale or Transfer
 Article 13     Hold Harmless
 Article 14     Arbitration
 Article 15     Termination
 Article 16     Claims Handling
 Article 17     Rate Filings and Underwriting Guidelines
 Article 18     Reinsurance
 Article 19     Miscellaneous

<PAGE>

                      MANAGING GENERAL AGENCY AGREEMENT
                                  HFS-03-001

 This Agreement is made and entered  into by and between OLD AMERICAN  COUNTY
 MUTUAL FIRE INSURANCE  COMPANY, a Texas  Corporation (Company) and  AMERICAN
 HALLMARK   GENERAL  AGENCY, INC.  a  Texas Corporation  with  administrative
 offices in Dallas, Texas, (Managing General Agent).

         THE COMPANY AND THE MANAGING GENERAL AGENT AGREE AS FOLLOWS:

 ARTICLE 1 - APPOINTMENT
 -----------------------
 1.1  The Company appoints the Managing General Agent to act as its  Managing
 General Agent  as that  term is  defined  in Article  21.07-3 of  the  Texas
 Insurance Code  and  the  Texas Administrative  Code.  This  appointment  is
 continuous in  nature  and  shall  remain  in  effect  until  terminated  in
 accordance with  Article  15  or  natural  expiry  at  September  30,  2006,
 whichever comes first.

 1.2  The Managing General Agent acknowledges  and agrees that the  Company's
 appointment of the Managing  General Agent does not  restrict in any  manner
 the Company's right  to appoint agents  writing any lines  of insurance  the
 Company writes through any other agent, sub-agent or managing general  agent
 either direct to the Company or through other agents.

 ARTICLE 2 - AUTHORITY
 ---------------------
 2.1  The Managing General Agent has the authority and duty to act on  behalf
 of the  Company in  all  respects, insofar  as  necessary for  the  Managing
 General Agent to perform  the function of a  Managing General Agent for  the
 Company.  The  Company  may,  from  time-to-time, place  reasonable  written
 restrictions upon the Managing General Agent.  The Managing General  Agent's
 authority includes,  but  is not  limited  to, production,  appointment  and
 supervision of agents for the  Company, underwriting, accounting and  claims
 handling. All acts of the Managing  General Agent, insofar as the  Company's
 business is concerned, are subject to the ultimate authority of the Company.

 2.2  The Managing General Agent has the  authority to develop a unique  rate
 plan and underwriting guidelines that the Company shall file with the  Texas
 Department of Insurance. The Managing General Agent shall certify that  each
 and every filing is in accordance  with the laws of  the State and that  its
 rate increases in any calendar year do not exceed 10%.

 2.3  The original source of all business produced under this Agreement shall
 be property/ casualty, general lines, or  limited lines agents in the  State
 of Texas (Agent(s)).

 2.4  The Managing  General  Agent has  the  authority to  accept,  on  forms
 approved by the Company, applications,  binders, and/or Policies written  by
 or through Agents,  for classes or  lines of insurance  as described in  the
 attached Schedule of Business and in  the Quota Share Reinsurance  Agreement
 Number HFS-03-001  between  the  Company  and  Subscribing  Reinsurers  (the
 Reinsurer) effective October  1, 2003,  (Reinsurance Agreement),  a copy  of
 said Agreement is attached hereto and fully incorporated herein.

 2.5  The Managing General Agent acknowledges and agrees that the term(s)  of
 any Policy shall not exceed twelve  (12) months. "Policy" is defined as  any
 policy, endorsement,  binder, certificate,  proposal  for insurance  or  any
 other document that binds the Company to insurance coverage.

 2.6  The Managing General Agent has the authority to cancel Policies, at its
 discretion, subject to  the requirements imposed  by law  and in  compliance
 with the applicable provisions contained in this Agreement and the Policies.

 2.7  The Managing General Agent has the authority to receive and receipt for
 premiums and to retain commissions out of such collected premiums subject to
 the terms and conditions of this Agreement.

 2.8  The Managing General Agent or its designated claims handler shall  have
 the authority to set loss  reserves and adjust and  pay claims on behalf  of
 the Company.

 2.9  The Company shall retain the authority to restrict the premium volume.

 2.10 The Managing General Agent may not authorize policy issuance on  behalf
 of the Company  to any broker,  agent, managing general  agent or any  other
 entity without the prior written consent of the Company.

 2.11 Any and all agreements with Agent(s) shall be made directly between the
 Managing General Agent and such Agent(s).  It is  understood that the  Agent
 shall have no claim or cause of action against the Company and said Agent(s)
 shall look solely to  the Managing General Agent  for any and all  expenses,
 costs, causes of action  and damages, including, but  not limited to,  extra
 contractual obligations, arising in any manner from actions or inactions  by
 the Agent(s) or the Managing General Agent.

 2.12 The Managing General  Agent shall bear  sole responsibility to  oversee
 the proper licensing of any Agents(s).  Should  any fines be levied  against
 the Company as the result of  the Managing General Agent accepting  business
 from an unlicensed Agent, the Managing General Agent shall hold the  Company
 harmless and reimburse  the Company  for any  and all  expenses so  incurred
 including, but not limited to, legal fees, fines and travel expenses.

 ARTICLE 3 - COMPENSATION
 ------------------------
 3.1  The Managing  General  Agent's  compensation shall  be  the  commission
 allowed under  the  Reinsurance Agreement  less  fronting fees  and  premium
 taxes. As used in this Article, the term "Net Written Premium" is defined as
 the total of all premium amounts on policies written by the Managing General
 Agent between the Company and the Managing General Agent less return premium
 and cancellations.

 3.2  On the net written premium and policy fees for each underwriting year,
 fronting fees shall be charged at a rate of one and three-quarters percent
 (1.75%). Minimum fronting fees shall be the lesser of $2,500,000 for the
 term of the contract with a minimum of $650,000 in year 1 and $850,000 in
 year two, or two percent (2.00%) of net written premium and policy fees  for
 all three years.

 3.3  The tax  provision of  one and  three-quarters percent  (1.75%) of  net
 written premium and  net policy fees  charged includes premium  tax and  the
 Texas Overhead  Assessment. The  Company retains  the  right to  adjust  the
 premium tax  of 1.75%  to any  new effective  rate determined  by the  Texas
 Department of Insurance or  other such agency.  The  Company will be  liable
 for remitting  state premium  taxes based  on net  written premium  and  net
 policy fees charged.

 3.4  Should service fees be charged on any policy covered by this Agreement,
 and such fees are deemed taxable for premium tax purposes, then such service
 fees are to be added to the net written premium and net policy fees  charged
 to determine the amount subject to Fronting Fees.

 3.5  In the event there is no Agent to receive the designated commission  on
 a Policy, the Managing General Agent may retain the commission.

 3.6  The commission may, from time to time, be amended upon mutual agreement
 of the Company and  the Managing General  Agent without otherwise  affecting
 the terms and conditions of this Agreement.

 3.7  The Company agrees to  pass through to the  Managing General Agent  any
 Contingent or Profit  Commission allowed by  the Reinsurer(s) referenced  in
 Article 9 of the Reinsurance Agreement.

 ARTICLE 4 - ACCOUNTING AND RECORDS
 ----------------------------------
 4.1  The Managing General  Agent shall  provide and  maintain all  necessary
 books, records,  policies,  claim  files, dailies  and  correspondence  with
 policyholders to determine the  amount of liability of  the Company and  the
 amount of premiums there from.

 4.2  The Managing General  Agent shall prepare  separate, itemized,  monthly
 statements for each Agent  on the business placed  by the Agent through  the
 Managing General Agent,  and furnish the  Agent with an  IRS Form 1099  each
 year when required.

 4.3  All records  shall be  kept in  such manner  and form  as is  generally
 recognized as acceptable in the insurance industry or as may be required  by
 the Company.  Such records shall be  maintained for at least five (5)  years
 or for  any  longer  applicable  retention  period  required  by  the  Texas
 Department of  Insurance.  All records  must  be located  in  Texas,  unless
 approved by the  Texas Department  of Insurance  under Article  1.28 of  the
 Texas Insurance Code.

 4.4  All records applicable to  the Company's business  shall be opened  for
 inspection and/or  audit  at  all  reasonable  times  by  the  Company,  its
 reinsurers,   insurance   department   personnel   or   other   governmental
 authorities.

 4.5  Upon request  and pursuant  to  regulatory requirements,  the  Managing
 General Agent shall  forward as reasonably  required to the  Company or  the
 Company's Designated Accountant and/or Statistical Agent, exact, as written,
 copies of  all  applications,  binders,  policies,  daily  reports,  monthly
 reporting forms and  endorsements issued  by or  through licensed  Agent(s),
 including all other evidence of insurance written, modified or terminated.

 4.6  The Managing General Agent  shall be solely  responsible for and  shall
 keep accurate records of all policies assigned to the Managing General Agent
 and shall account to the Company, upon the Company's reasonable request, for
 all  outstanding  and unused  policy  supplies.  In  the event  canceled  or
 terminated policies or binders are  unavailable, the Managing General  Agent
 shall forward,  or cause  to be  forwarded,  properly executed  Lost  Policy
 Receipts.

 4.7  At renewal of  any Policy  issued by  the Managing  General Agent,  the
 Managing General Agent shall be responsible  to the insured for the  renewal
 or non-renewal of the Policy and shall timely communicate any renewal  quote
 or notice  of  non-renewal to  the  insured  to preclude  the  extension  of
 coverage beyond the expiration date of the current in-force policy.

 4.8  The  Company  shall  conduct  or  cause   to  be  conducted  four   (4)
 examinations of  the  Managing  General Agent.  This  examination will  take
 place at the  Managing General Agent's  business offices  or premises  where
 necessary records are maintained, and the  Managing General Agent will  bear
 the total cost of $500  per audit plus out  of pocket expenses actually  and
 reasonably incurred  by  the  Company  to  conduct  each  examination.  Such
 examination must remain  on file with  the Company for  three (3) years,  be
 available to the  Commissioner of Insurance  for review, and  contain, at  a
 minimum, the following information:

      a.   claims control procedures;
      b.   timeliness of claims payments;
      c.   timeliness of premium reporting and collection;
      d.   compliance with underwriting guidelines; and
      e.   reconciliation of policy inventory.

 If within any thirty (30) day period, the Company's aggregate premium volume
 increases by thirty percent (30%) or more, the Company shall conduct, within
 ninety (90) days  of said  period, an  examination of  the Managing  General
 Agent if the Managing General Agent:

      a.   writes greater than twenty percent (20%) of the Company's
           aggregate premium volume; and
      b.   has experienced an increase of twenty percent (20%) or
           more of premium volume during the thirty (30) day period.

 Any such  examination shall  contain the  information required  pursuant  to
 Article 4.8.

 ARTICLE 5 - MANAGING GENERAL AGENT'S REPORTS AND REMITTANCES
 ------------------------------------------------------------
 5.1  The Managing General Agent shall submit a report to the Company, within
 thirty  (30)  days  after  the  close  of  business  each  calendar   month,
 summarizing the business  transacted under this  Agreement during the  prior
 month.  Such report shall include the following items:

      a.   gross premiums written less returns and cancellations;
      b.   Agent's commissions;
      c.   losses paid less recoveries and salvage;
      d.   loss adjustment expenses paid;
      e.   outstanding loss reserves;
      f.   outstanding loss expense reserves;
      g.   losses incurred but not reported;
      h.   unearned premium reserve; and
      i.   earned premium.

 5.2  The Managing General Agent shall remit all amounts due directly to  the
 Company within forty-five (45)  days after the close  of the calendar  month
 for which the account is rendered.

 5.3  In addition to the return of premium, the Managing General Agent  shall
 refund commissions on  policy cancellations, reductions  in premiums or  any
 other return  premiums at  the  same rate  at  which such  commissions  were
 originally retained.

 5.4  The Company may,  at its sole  option, reasonably  alter the  frequency
 and/or content of  the Managing General  Agent's report; provided,  however,
 such report is made no less frequently than monthly.

 5.5  The omission of any item(s) from  a monthly statement shall not  affect
 the responsibility of either  party to account for  and pay all amounts  due
 the other  party, nor  shall it  prejudice  the rights  of either  party  to
 collect all such amounts due from the other party.

 5.6  The Managing General Agent  shall annually furnish  to the Company  the
 following summary  information in  such form  as to  enable the  Company  to
 record such information in its annual statement:

  a.  summaries, with data segregated by major classes, of net premium
      written,  gross loss paid, net salvage, subrogation and adjusting
      expenses paid during the year; and
  b.  details of in-force and unearned premium running twelve (12) months
      or less from the policy inception date.

 5.7  The Managing  General Agent  agrees to  furnish  the Company  with  any
 additional reports  necessary to  provide the  Company's monthly,  quarterly
 and/or annual  statements  to  regulatory  authorities  including,  but  not
 limited to, TICO or ISO statistical reporting.

 5.8  The Managing General Agent shall  annually furnish the Company  current
 financial  statements  of  the  Managing  General  Agent.   These  financial
 statements shall include, but  not be limited to,  Profit and Loss,  Balance
 Sheet and Cash Flow Statements.

 ARTICLE 6 - EXPENSES
 --------------------
 6.1  The Managing General Agent  is responsible for  and shall promptly  pay
 all expenses attributable to the producing  and servicing of business  under
 this Agreement, except  as specified in  Article  6.2.  This  responsibility
 shall not be altered whether the  expense is billed to the Managing  General
 Agent or the Company.  These expenses include but are not limited to:

      a.   salaries and all other benefits of all employees of the
           Managing General Agent;
      b.   transportation, lodging, and meals of employees of the Managing
           General Agent;
      c.   postage and other delivery charges;
      d.   advertising;
      e.   printing of all policies, forms and endorsements;
      f.   EDP hardware, software, and programming;
      g.   license and appointment fees for agents, brokers, and
           solicitors;
      h.   adjustment expenses arising from claims on insurance written
           under this Agreement,  except for expenses incurred at the
           direction of the Company;
      i.   provision of office space, equipment and other facilities
           necessary for the operation of Managing General Agent; and
      j.   legal, audit and other expenses relating to any rate filing,
           regulation, or rules affecting the business of the Managing
           General Agent pursuant to this Agreement.

 6.2  The Company  is responsible  for and  shall promptly  pay all  expenses
 attributable to the actions of the Company as a result of business  produced
 under this Agreement.  This responsibility shall not be altered whether  the
 expense is  billed to  the Company  or the  Managing  General  Agent.  These
 expenses include but are not limited to:

      a.   salaries and all other benefits of all employees of the Company;
      b.   transportation, lodging, and meals of employees of the Company;
      c.   State or Guaranty Fund Assessments;
      d.   losses and loss adjustment expenses incurred at the direction of
           the Company;
      e.   cost of reinsurance; and
      f.   legal and auditing expense incurred at the direction of the
           Company (other than as provided for in Article 4.8).

 ARTICLE 7 - PREMIUM ESCROW ACCOUNTS
 -----------------------------------
 7.1  The Managing General  Agent shall accept  in a  fiduciary capacity  all
 premiums collected and other  funds relating to  the business written  under
 this  Agreement.  The  privilege  of  retaining  commissions  shall  not  be
 construed as changing the fiduciary capacity.

 7.2  The Managing  General  Agent  assumes  responsibility  for,  and  shall
 promptly pay,  the net  earned premium  currently due  the Company,  whether
 collected or not, on Policies issued  by the Managing General Agent or,  the
 Company on behalf of the Managing  General Agent, subject to any  deductions
 provided herein.

 7.3  The Managing  General  Agent shall  establish  and maintain  a  Premium
 Escrow Account entitled "AHGA/Old  American Premium Escrow Account".  Escrow
 Accounts shall be in a bank, which is a member of the Federal Reserve System
 and is mutually  agreeable to the  Managing General Agent  and the  Company.
 All premiums collected by  the Managing General  Agent on business  produced
 under this Agreement shall be deposited promptly into said account.

 7.4  The Managing General Agent  shall not commingle  any premium or  escrow
 funds with its personal accounts or other agency funds or funds held by  the
 Managing General Agent in any other capacity.

 7.5  The Managing General Agent and an officer of the Company shall maintain
 signature authority on said Premium Escrow Account.

 7.6  The Managing General Agent shall act as trustee for the Company on  the
 Premium Escrow Account.

 7.7  Interest income  and  the cost  of  maintaining Escrow  Accounts  shall
 belong to the Managing General Agent.

 7.8  Escrow Accounts may consist of:

      a.   checking, savings, or money market accounts;
      b.   certificates of deposit; or
      c.   United States Treasury bills, notes or bonds.

 7.9  The Managing General Agent may use any and all premium and other  funds
 collected by the  Managing General Agent  for and on  behalf of the  Company
 under this Agreement solely for the payment of:

      a.   premium balances due minus deductions allowed in accordance with
           this Agreement;
      b.   the return of unearned premiums arising due to cancellation or
           endorsement;
      c.   the Managing General Agent's and Agent(s) commission;
      d.   losses and loss adjustment expenses; or
      e.   such other items as mutually agreed upon in writing by the
           Managing General Agent and the Company.

 7.10 The Company shall not be liable for any loss which occurs by reason  of
 the default or failure of the bank in  which an account is carried and  such
 loss shall not affect  the Managing General  Agent's obligations under  this
 Agreement.

 ARTICLE 8 - CONTROL OF EXPIRATIONS
 ----------------------------------
 8.1  The Managing  General  Agent's  records and  the  use  and  control  of
 expirations of the business produced by the Agents appointed by the Managing
 General Agent or  by the  Company at  the Managing  General Agent's  request
 shall remain the property of the Managing  General Agent and be left in  the
 Managing  General  Agent's  undisputed  possession,  provided  the  Managing
 General Agent is not in default and  accounts for and pays over all  premium
 and other sums for  which the Managing  General Agent may  be liable to  the
 Company.

 8.2  Ownership of  the  records, use  and  control of  expirations  and  the
 goodwill relating thereto  shall be vested  in the  Managing General  Agent;
 provided, however, in  the event the  Managing General Agent  is in  default
 hereunder, and does  not remedy such  default within a  reasonable time  and
 does not account for and pay all premiums or other sums for which it may  be
 liable to the company within a reasonable time following the due date,  such
 records, use and control of expirations  and the good will relating  thereto
 shall become the property of Company.

 8.3  The Managing General Agent assigns to the Company as security for,  but
 not in payment of, the obligations of the Managing General Agent under  this
 Agreement all sums due or to become  due to the Managing General Agent  from
 any insured(s) for whom  the Managing General Agent  or Agent(s) provided  a
 Policy on behalf of the Company.  In the event of default, the Company shall
 have full authority to demand and collect such sums and the Managing General
 Agent or Agent(s)  shall not be  entitled to any  commissions and/or  policy
 fees on any  premium so  collected by  the  Company.  The Company  may  also
 assign any rights it acquires to the Reinsurer.

 8.4  The Managing General Agent pledges and/or grants to the Company, so  as
 to further secure payment  of any and  all sums due  the Company under  this
 Agreement,  any  and  all  of  the  Managing  General  Agent's  records   of
 expirations of Policies,  including but not  limited to,  the ownership  and
 exclusive use of  said expirations.  In  the event  of default, the  Company
 shall have the rights of the holder  of a security interest granted by  law,
 including but not limited  to the rights of  foreclosure to effectuate  such
 security interest, and the Managing General Agent hereby agrees to peaceably
 surrender possession of such records to the Company upon demand.

 ARTICLE 9 - INDEPENDENT CONTRACTOR RELATIONSHIP
 -----------------------------------------------
 9.1  Nothing contained in this  Agreement shall be  construed to create  the
 relationship of  employer and  employee, or  joint venture  or  partnership,
 between the Company and the Managing  General Agent, or between the  Company
 and any employees, representatives or Agents of the Managing General Agent.

 ARTICLE 10 - ADVERTISING
 ------------------------
 10.1 Any advertising is the responsibility of,  and shall be in the name  of
 the Managing General Agent.  The  Managing General Agent is prohibited  from
 using the  Company's name  or  logo without  prior  written consent  of  the
 Company.

 10.2 In the event an advertisement containing the Company's name or logo  is
 used by the Managing General Agent  or Agent(s), the Managing General  Agent
 shall send a copy of  the advertisement to the  Company and maintain a  copy
 and full details  concerning where, when,  and how it  was used, and  comply
 with all  legal  requirements  regarding content,  review  and  approval  of
 advertising and maintenance of records.

 ARTICLE 11 - AGENTS LICENSING
 -----------------------------
 11.1 The  Managing  General  Agent  shall  maintain  current  license(s)  or
 certificate(s) of authority as required by  law for the conduct of  business
 pursuant to this Agreement.

 11.2 The Managing  General  Agent  shall assure  that  all  Agents  maintain
 appropriate license(s),  certificate(s)  of authority  and  appointments  as
 required by law for conduct of business under this Agreement.

 11.3 The Managing General Agent shall maintain in force an Agency Agreement,
 in a form satisfactory to the Company, with all Agents.

 11.4 Any termination by the Managing General Agent of an Agent shall  comply
 with the Texas Insurance Code and any other applicable law or regulation.

 ARTICLE 12 - AGENCY SALE OR TRANSFER
 ------------------------------------
 12.1 In the  event a  controlling  interest  (10%  or  more  of  outstanding
 shares) of the Managing General  Agent is to be  sold or transferred or  the
 Managing General Agent is to merge or be consolidated with another firm (not
 affiliated with current  ownership), the Managing  General Agent shall  give
 thirty (30) days advance written notice to the Company.

 12.2 The Managing General  Agent shall also  give notice to  the Company  if
 there is a change in any  principal officer and/or director of the  Managing
 General Agent within 30 days.  Under any of these circumstances, the Company
 may, at its election:

  a.  consent to the assignment of this Agreement to the successor;
  b.  enter into a new Managing General Agency Agreement with the
      successor; or terminate this Agreement pursuant to Article 15.

 The Company shall notify the Managing  General Agent of its decision  within
 thirty (30) days of the receipt of the notice.

 ARTICLE 13 - HOLD HARMLESS
 --------------------------
 13.1  The  Managing  General  Agent  shall indemnify  and  hold the  Company
 harmless from  any  and all  claims,  demands, causes  of  action,  damages,
 judgments and expenses (including, but not  limited to, attorney's fees  and
 costs of  court) which  may be  made against  the Company  and which  arise,
 either directly or indirectly, out of any action or inaction of the Managing
 General Agent or the Managing  General Agent's employees or  representatives
 in connection with any rights or  obligations of the Managing General  Agent
 incurred  in  connection  with  this  Agreement  or  with  asserting  rights
 hereunder including,  but not  limited to,  any action  or inaction  of  the
 Managing General Agent  concerning the termination  of Agent(s) pursuant  to
 the Texas Insurance Code or any other applicable law or regulation.

 13.2 The Company  shall  indemnify  and  hold  the  Managing  General  Agent
 harmless from  any  and all  claims,  demands, causes  of  action,  damages,
 judgments and expenses (including, but not  limited to, attorney's fees  and
 costs of court)  which may be  made against the  Managing General Agent  and
 which arise, either directly or indirectly, out of any action or inaction of
 the Company including, but  not limited to, any  such acts of negligence  by
 the Company in  connection with  any rights  or obligations  of the  Company
 incurred  in  connection  with  this  Agreement  or  with  asserting  rights
 hereunder.

 13.3 The Reinsurer  is hereby  named as  a third  party beneficiary  to  all
 promises, duties and  obligations of  indemnification made  by the  Managing
 General Agent to the Company to the extent of all damages, fines,  penalties
 and/or loss incurred by the Reinsurer as a direct result of indemnifying and
 holding the  Company  harmless  for the  actions  and/or  inactions  of  the
 Managing General Agent. Upon indemnification  by the Reinsurer, the  Company
 shall assign its rights  of recourse against the  Managing General Agent  to
 the Reinsurer,  provided  always  that any  benefit  or  right  of  recourse
 extended to the Reinsurer shall be subordinate to that of the Company.

 ARTICLE 14 - ARBITRATION
 ------------------------
 14.1 Unless both parties mutually agree to waive arbitration with respect to
 a particular  dispute,  the parties  to  this Agreement  hereby  agree  that
 binding arbitration shall  be the  sole remedy  for any  and all  dispute(s)
 arising between them with reference to any transactions, terms or conditions
 under this  Agreement  including  its formation  and  validity.  Arbitration
 proceedings brought hereunder shall be  referred for final determination  to
 the majority decision of a Panel of three disinterested arbitrators.  Notice
 of demand for arbitration shall be made  in writing and shall be served  via
 certified or registered mail, return receipt requested, on the Respondent to
 the Arbitration at the Respondent's current address.  The notice  requesting
 arbitration shall identify  the Agreement(s)  involved in  the dispute,  the
 issues to be  resolved in  the view of  the Petitioner,  and the  arbitrator
 selected by  the  Petitioner.  The  term "days"  as used  herein shall  mean
 calendar days.

 14.2 The Respondent shall appoint an arbitrator within 30 days of  receiving
 a request  by  the  Petitioner  in  writing  and  served  via  certified  or
 registered mail, return receipt requested,  to do so.  At  the same time  as
 the appointment, the Respondent shall identify  in writing any issues  which
 in its view must  be resolved in the  arbitration proceeding and which  were
 not identified by the  Petitioner.  If the  Respondent fails to appoint  its
 arbitrator within 30 days of  being requested to do  so, in writing, by  the
 Petitioner, the  Petitioner  shall have  the  right to  appoint  the  second
 arbitrator.  Within 30 days after their appointment, the two arbitrators  so
 chosen  shall  select a  third arbitrator  to  act as  umpire.  If  the  two
 arbitrators do not agree as to the selection of a third arbitrator within 60
 days after their appointment, the third arbitrator shall be selected from  a
 list of six individuals (three named by  each arbitrator) by a judge of  the
 federal district court or state court in Dallas County, Texas.

 14.3 Each arbitrator shall be a disinterested, active or retired official or
 officer of an  insurance or reinsurance  company, not under  the control  or
 management of either party to this  Agreement, and shall have experience  in
 the class and type of business subject to this dispute.

 14.4 Within 30  days after  notice of  appointment of  all arbitrators,  the
 Petitioner and the Respondent shall each  submit a statement of position  to
 the Panel.

 14.5 Within 60 days  after notice of  appointment of  all arbitrators,  each
 party shall provide the other with its relevant books, records, and/or other
 papers not protected from disclosure by either the work-product or  attorney
 client privilege.  Other  than  the  exchange  of relevant  documents,  both
 parties shall refrain from engaging in any type of discovery including,  but
 not limited to, depositions and interrogatories.

 14.6 Within 30 days following the exchange of documents, the Petitioner  and
 the Respondent shall submit hearing briefs to the Panel.

 14.7 Unless some  other  location  is mutually  agreeable  to  the  parties,
 arbitration proceedings  shall  take  place  within  Dallas  County,  Texas.
 Arbitration shall commence  as soon as  practicable but in  no event  longer
 than 120 days after selection of the third arbitrator with notice thereof to
 the parties.  The  specific time and site  of arbitration shall be  promptly
 agreed to by the parties,  or if no Consent  is reached, then determined  by
 the Panel.

 14.8 The Panel shall be relieved from applying the strict rules of  evidence
 and/or procedure  and  shall make  its  decision  based on  the  custom  and
 practice of  the  insurance and  reinsurance  business with  a  view  toward
 effecting this Agreement in a reasonable  manner.  Should either party  fail
 to appear  at the  arbitration and/or  fail to  furnish the  Panel with  any
 subpoenaed papers  or information,  the Panel  is  empowered to  proceed  ex
 parte.  The Panel shall make its award within 60 days following the close of
 the hearing.  The majority decision of the Panel shall be final and  binding
 upon the parties and shall be reduced to a written award, which may  include
 factual findings, and shall be signed  by any two of the three  arbitrators,
 dated and delivered  overnight to  the parties.  The Panel  may  award  pre-
 judgment and post-judgment interest, but in  no case shall the authority  of
 the Panel extend to awarding punitive or exemplary damages.  Judgment may be
 entered upon the award by any court having jurisdiction.

 14.9 Each party shall  bear the  expense of  its own  arbitrator, but  shall
 equally share with the other  the expense of the  third arbitrator.  In  the
 event that the two arbitrators are  chosen by one party, as above  provided,
 the expense of the two arbitrators, the third arbitrator and the arbitration
 shall be equally divided between the Petitioner  and the Respondent.  Unless
 mutually agreed other wise,  a court reporter transcript  shall be taken  of
 the hearing with costs to be divided equally between the parties.  The Panel
 shall allocate the remaining costs of arbitration.

 14.10  The Arbitration proceeding  brought hereunder,  any or all provisions
 contained  herein,  and  arbitration awards entered pursuant to this Article
 are specifically governed by, subject  to and enforceable under  the Federal
 Arbitration Act (Title 9, United States Code, Sections 1-14, as amended.)

 14.11  Each  party  agrees  that time is of the essence with respect to  all
 terms and conditions referenced in this Article.  All deadlines contained in
 this Article may be extended  by mutual consent of  the parties, and if  the
 Panel has been selected, the Panel's Consent must also be obtained.

 14.12  Each  party  agrees  that any  arbitration award entered pursuant  to
 and governed by this Article shall  not have any precedential or  collateral
 estoppel effect on  future arbitrations, proceedings,  or controversies,  if
 any, between the  parties.  Any  claim of res  judicata or claim  preclusion
 shall itself be subject to arbitration.

 14.13  This Article shall survive the termination of this Agreement.

 ARTICLE 15 - TERMINATION
 ------------------------
 15.1 This Agreement shall automatically terminate simultaneous with and upon
 the cancellation or termination of the reinsurance agreement referred to  in
 Articles 2.4 and 17, except as provided in Article 15.7.

 15.2 The right  to  solicit and  place  new  business, or  renewal,  or  any
 modification of existing business, shall be suspended as provided in Article
 15.5 in the event of default by the Managing General Agent.

 The term "default" means any material  breach or material failure to  comply
 with the terms  and conditions of  this Agreement and  includes, but is  not
 limited to, the following:

      a.  failure to remit balances due as required by this Agreement;
      b.  failure to adjust all claims arising from all business written
          under this Agreement;
      c.  failure to maintain Agent's license(s) or certificate(s) as
          required by any public  authority; and failure to comply with
          any and all provisions of the Texas Insurance Code and/or Texas
          Administrative Code.

 15.3 In the  event that  the Company  determines that  the Managing  General
 Agent is in default,  the Company may, at  its sole discretion, suspend  the
 authority of the Managing General Agent. Such suspension shall be  effective
 immediately. The Managing General Agent shall have thirty (30) days to  cure
 the default.

 15.4 In the event of cancellation of  this Agreement due to fraud or  breach
 of conditions, any indebtedness of the Managing General Agent to the Company
 and all premiums in the possession of the Managing General Agent, or for the
 collection of  which  the  Managing General  Agent  is  responsible,  shall,
 notwithstanding any provisions to the  contrary, become immediately due  the
 Company.

 15.5 The failure  of  the  Company or  Managing  General  Agent  to  declare
 promptly a default  or breach of  any of the  terms and  conditions of  this
 Agreement shall  not be  construed as  a waiver  of any  of said  terms  and
 conditions, nor  estop either  party from  thereafter demanding  a full  and
 complete compliance herewith.

 15.6 After the effective  date of this  Agreement, if new  laws are  enacted
 that  would  eliminate  the  advantages  of  issuing  policies  through  the
 Company, then this Agreement can be  terminated at any time by the  Managing
 General Agent issuing the Company a written notice at least ninety (90) days
 prior to the termination date.  Soley for termination under this  provision,
 minimum fronting fees shall not apply for the year the Agreement  terminates
 and any subsequent years.

 15.7 In the event the Company restricts volume under Article 2.9 for reasons
 other  than  default  under 15.2,  at  the request  of  a reinsurer,  or  is
 required to by the  Texas Department of Insurance  or other governing  body,
 then the Managing General Agent may terminate this Agreement by issuing  the
 Company a written notice at least ninety (90) days prior to the  termination
 date.  Soley  for termination under  this provision,  minimum fronting  fees
 shall not apply  for the year  the Agreement terminates  and any  subsequent
 years.

 15.8 Notwithstanding the termination  of this Agreement,  the provisions  of
 this Agreement shall continue to apply to all unfinished business to the end
 that all obligations and liabilities incurred  by each party as a result  of
 this Agreement shall be fully performed  and discharged.  In the event  this
 Agreement is  terminated, all  fronting fees  previously collected  will  be
 considered fully earned.

 ARTICLE 16 - CLAIMS HANDLING
 ----------------------------
 16.1 The Managing General Agent, or its appointed claims handler, shall have
 the authority to  settle all claims  arising from business  placed with  the
 Company  under  this  Agreement  in  accordance  with  established   Company
 procedures.  At the sole option of  the Company, the Company may assume  any
 or all of this responsibility.

 16.2 The Managing  General Agent,  or its  appointed claims  handler,  shall
 carry a minimum E&O policy that includes claims practices of $5,000,000  and
 the Company shall be a named insured of the policy.

 16.3 The authority of the Managing General Agent to settle claims shall  not
 exceed $30,000 per claim without notification to and consent of the Company.
 The Company retains authority over disputes concerning claims settlement and
 setting of loss reserves.

 16.4 The Managing General Agent warrants that  HCS shall promptly report  to
 the Company and the Reinsurers any and all claims involving:

      a.   Fatalities;
      b.   Bodily injuries involving:

           1.   Brain stem, quadriplegic, paraplegic or severe paralysis;
           2.   Serious burns;
           3.   Amputations of major limbs;
           4    Serious impairment of vision.

      c.   Any bodily injury loss reserve of $20,000 or greater;
      d.   Potential coverage disputes, bad faith situations or demands
           which may give rise to a payment for excess of Policy limits
           or extra contractual obligations;
      e.   violations of the Texas Deceptive Trade Practices Act or
           Article 21.21 of the Texas Insurance Code; or
      f.   Any claims that do not fall within the above categories, but
           have a potential of significant liability to the Reinsurer.

 16.5 The Managing General Agent may appoint (subject to the approval of  the
 Company, which  shall  not  be  unreasonably  withheld)  appropriate  claims
 adjustment firms to handle  certain investigations and settlements  relating
 to claims.

 16.6 Payment of losses shall be made on checks or drafts in the name of  the
 Company.  Any expense not directly  connected with the settlement of  losses
 or recovery by way of salvage or subrogation shall be incurred solely by the
 Managing General Agent except as from  time to time specifically  authorized
 by the Company.

 16.7 The Managing General Agent shall be responsible for the safekeeping  of
 all checks and/or drafts of the  Company used for settling claims and  shall
 perform the following:

      a.   the Managing General Agent shall immediately return all voided
           checks and/or drafts to the Company;
      b.   the Managing General Agent shall immediately notify the Company
           of any irregularities, theft, disappearance or destruction of
           checks and/or drafts; and
      c.   the Managing General Agent shall see to it that all checks
           and/or drafts are sequentially numbered and issued in order, with
           all voided checks and/or drafts properly marked and accounted for.

 ARTICLE 17 - REINSURANCE
 ------------------------
 17.1 The Managing General Agent may not bind reinsurance or retrocessions on
 behalf of  the  Company,  may  not commit  the  Company  to  participate  in
 insurance or reinsurance  syndicates and may  not collect a  premium from  a
 reinsurer or commit  the Company  to a  claims settlement  with a  reinsurer
 without the prior written approval of the Company. If the Company gives such
 prior approval, the Managing General Agent must promptly forward a report to
 the Company.

 17.2 The Managing General  Agent is  prohibited from  ceding reinsurance  on
 behalf of the Company.

 17.3 All business  coming  within  the scope  of  this  Agreement  shall  be
 reinsured under the attached Reinsurance Agreement.  Because  of the  nature
 of the Reinsurance Agreement, the Reinsurer  shall have the right to act  on
 all such matters  coming within the  scope of this  Agreement as though  the
 Reinsurer were the  Company, but  by doing  so or  not doing  so, shall  not
 invalidate the right of the Company to act hereunder.

 17.4 Any violation  of  the  terms  and/or  conditions  of  the  Reinsurance
 Agreement resulting in any  diminution of the  Reinsurer's liability to  the
 Company shall be the sole responsibility  of the Managing General Agent  and
 the Managing General  Agent shall indemnify  and hold  the Company  harmless
 from any such liability.

 ARTICLE 18 - MISCELLANEOUS
 --------------------------
 18.1 Any obligations  and  undertakings  of each  of  the  parties  to  this
 Agreement  shall  be  performable  in  Dallas  County, Texas.  The  Managing
 General Agent agrees  to pay  to the  Company all  sums of  money which  may
 become payable to Company under this Agreement.

 18.2 Complaints by  Insureds  -  All Texas  Department  of  Insurance  (TDI)
 complaints are to be handled by the Managing General Agent as follows:

      a.   the Managing General Agent is to notify the Company immediately of
           any TDI complaints received and forward a copy of the complaint to
           the Company;
      b.   the Company will promptly notify the Managing General Agent of any
           complaints it receives on the business written pursuant to this
           Agreement;
      c.   the Managing General Agent is to promptly research the
           circumstances of each  complaint and provide the Company with a
           written reasonable explanation of the Managing General Agent's
           position and intention; and
      d.   the Managing General Agent is to maintain complete records of each
           complaint and all supporting documentation.

 18.3 As regards  non-TDI  complaints,  the  Managing  General  Agent  is  to
 maintain a log  and complete records  of each complaint  and all  supporting
 documentation in a form approved by the Company.

 18.4 The underwriting guidelines of the Company, as may be promulgated  from
 time to  time by  the Managing  General Agent,  are incorporated  herein  by
 reference.

 18.5 The Managing General Agent is  prohibited from offsetting balances  due
 under this Agreement with any offset due under any other contract.

 18.6 As regards  the  subject  matter  of  this  Agreement,  this  Agreement
 supersedes all previous Managing General Agency Agreements, if any,  whether
 written and oral, between the Company and the Managing General Agent.

 18.7 The Managing General Agent  shall satisfy the financial  responsibility
 requirement under Insurance Code, Article 21.07-3.

 18.8 No amendments  to or  modifications of  this Agreement  shall be  valid
 unless made in writing and executed by the Company and the Managing  General
 Agent in the form of an Amendment to this Agreement.

 18.9 The Managing General Agent shall  cause Hallmark Financial Services  to
 execute a guaranty of  the Managing General  Agent's obligations under  this
 Agreement.

 18.10  The  Managing  General  Agent shall not directly or indirectly assign
 its rights and obligations under this Agreement  in whole or in part to  any
 non-affiliated party without the prior written approval of the Company.

 18.11  Wherever  from  the  context it appears appropriate, each term stated
 in either the singular or plural  shall include the singular and plural  and
 any term stated in either the  masculine, the feminine or the neuter  gender
 shall  include  the  masculine,  the  feminine and  the  neuter gender.  All
 captions and section headings are intended  to be for purposes of  reference
 only and do not affect the substance of the articles to which they refer.

 18.12  Each party  hereto agrees  to perform  any further acts  and  execute
 and deliver  any further  documents, which  may be  reasonably necessary  to
 carry out the provisions of this Agreement.

 18.13  In  the event  that any  of  the provisions, or portions thereof,  of
 this Agreement are held to be illegal, invalid or unenforceable by any court
 of competent jurisdiction, the validity and enforceability of the  remaining
 provisions, or  portions thereof,  shall not  be  affected by  the  illegal,
 invalid or unenforceable provisions or by its severance here from.

 18.14  Any  and  all  notices required or  permitted to be given under  this
 Agreement shall be in writing and will be deemed given when deposited in the
 United States Postal Service, Certified  Mail, Return Receipt Requested,  to
 the parties' address as provided below.

 This Agreement shall be  effective the 1st day  of September 2003 and  shall
 terminate October 31, 2006.

 The Company:                       The Managing General Agent:

 OLD AMERICAN COUNTY MUTUAL         AMERICAN HALLMARK GENERAL
 FIRE INSURANCE COMPANY             AGENCY, INC.

 By:                                 By:
       --------------------------          -----------------------------
 Name:      Thomas A. McCall         Name:
       --------------------------          -----------------------------
 Title:        President             Title:
       --------------------------          -----------------------------
 Date:       July 3, 2003            Date:
       --------------------------          -----------------------------

<PAGE>

                             SCHEDULE OF BUSINESS

 The Company, the  Reinsurer and the  Managing General Agent  agree that  the
 Managing General Agent has the authority to accept, on forms approved by the
 Company, any  Policy,  endorsement,  binder, certificate,  or  proposal  for
 insurance. The  Managing  General  Agent's  authority  is  limited  by  this
 Schedule of Business.

   Overall:
           Projected premium volume           $40,000,000
           Territory                          Texas only
           Maximum policy term                Twelve months

 Lines of business and maximum limits of liability

                Coverage                      Maximum Limits
           Bodily Injury Liability            $  25,026 each person
                                              $  50,026 each accident
           Property Damage Liability          $  25,026 each accident

           Uninsured/Underinsured Motorists
              Bodily Injury                   $  25,026 each person
                                              $  50,026 each accident
              Property Damage                 $  25,026 each accident

           Personal Injury Protection         $   2,526 each person

           Medical payments                   $     526 each person

           Physical Damage                    $  50,000 each automobile

 This Agreement does not apply to and specifically excludes the following:
      a.  Any business not produced by AMERICAN HALLMARK GENERAL AGENCY, INC.
          or
      b.  Any business not classified as private passenger automobile
          liability or physical damage, or
      c.  Exclusions specified within the Quota Share Reinsurance Agreement
          Number HFS-03-001.

 The Company:                        The Managing General Agent:

 OLD AMERICAN COUNTY MUTUAL          AMERICAN HALLMARK GENERAL
 FIRE INSURANCE COMPANY              AGENCY, INC.

 By:                                 By:
       --------------------------          -----------------------------
 Name:        Bryan K. Ward          Name:
       --------------------------          -----------------------------
 Title:       Vice President         Title:
       --------------------------          -----------------------------
 Date:                               Date:
       --------------------------          -----------------------------EXHIBIT 10(cm)

                              ADDENDUM NUMBER 1
                                   TO THE
                      MANAGING GENERAL AGENCY AGREEMENT
                              NUMBER HFS-03-001
                                BY AND BETWEEN
              OLD AMERICAN COUNTY MUTUAL FIRE INSURANCE COMPANY
                                     AND
                   AMERICAN HALLMARK GENERAL AGENCY, INC.

 It is mutually agreed that effective October 1, 2003:

 Article 5.1 is hereby withdrawn and replaced as follows:

 5.1    The Managing  General Agent  shall submit  a report  to the  Company,
 within thirty (30)  days after the  close of business  each calendar  month,
 summarizing the business  transacted under this  Agreement during the  prior
 month.  Such report shall include the following items:

      a.  gross premiums written less returns and cancellations;
      b.  Agent's commissions;
      c.  losses paid less recoveries and salvage;
      d.  loss adjustment expenses equal to 10% of earned premium;
      e.  outstanding loss reserves;
      f.  outstanding loss expense reserves;
      g.  losses incurred but not reported;
      h.  unearned premium reserve; and
      i.  earned premium.

 Article 6.3 is added:

 6.3     The Company  will  reimburse the  Managing  General Agent  for  loss
 adjustment expenses paid equaling 10% of  earned premium in accordance  with
 the Reinsurance Agreement. If the Managing  General Agent, on behalf of  the
 Company, incurs loss adjustment expenses in excess of 10% of earned premium,
 the excess loss  adjustment expense  will be  paid by  the Managing  General
 Agent.

 The Schedule of Business is hereby withdrawn and replaced as follows:

                             SCHEDULE OF BUSINESS

 The Company, the  Reinsurer and the  Managing General Agent  agree that  the
 Managing General Agent has the authority to accept, on forms approved by the
 Company, any  Policy,  endorsement,  binder, certificate,  or  proposal  for
 insurance. The  Managing  General  Agent's  authority  is  limited  by  this
 Schedule of Business.

   Overall:
           Projected premium volume           $40,000,000
           Territory                          Texas only
           Maximum policy term                Twelve months

   Lines of business and maximum limits of liability

                   Coverage                       Maximum Limits
           Bodily Injury Liability            $  25,027 each person
                                              $  50,027 each accident
           Property Damage Liability          $  25,027 each accident

           Uninsured/Underinsured Motorists
              Bodily Injury                   $  25,027 each person
                                              $  50,027 each accident
              Property Damage                 $  25,027 each accident

           Personal Injury Protection         $   2,527 each person

           Medical payments                   $     527 each person

           Physical Damage                    $  50,000 each automobile

 This Agreement does not apply to and specifically excludes the following:

  a.  Any business not produced by AMERICAN HALLMARK GENERAL AGENCY, INC., or
  b.  Any business not classified as private passenger automobile liability
      or physical damage, or
  c.  Exclusions specified within the Quota Share Reinsurance Agreement
      Number HFS-03-001."

 All other terms and conditions shall remain unchanged.

 In witness whereof, the parties hereto  by their respective duly  authorized
 officers have executed this Agreement in duplicate as of the date below:

 This  2th day of October, 2003      This ______ day of _______________, 2003

 OLD AMERICAN COUNTY MUTUAL FIRE     AMERICAN HALLMARK GENERAL
 INSURANCE COMPANY                   AGENCY, INC.

 By:                                 By:
       --------------------------          -----------------------------
 Name:      Bryan K. Ward            Name:
       --------------------------          -----------------------------
 Title:       Treasurer              Title:
       --------------------------          -----------------------------

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