Document:

<PAGE>
                         SECOND WHOLE ACCOUNT AGGREGATE
                   EXCESS OF LOSS RETROCESSION AGREEMENT (E2)
                                       for
                        EMPLOYERS REINSURANCE CORPORATION

                            Effective January 1, 1999

<PAGE>
                                    CONTENTS
                                    --------

                        EMPLOYERS REINSURANCE CORPORATION
                  SECOND WHOLE ACCOUNT AGGREGATE EXCESS OF LOSS
                           RETROCESSION AGREEMENT (E2)

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

  ARTICLE                                                                  PAGE
  -------                                                                  ----

      I     APPLICATION OF AGREEMENT...........................................1
     II     BUSINESS RETROCEDED................................................1
    III     RETENTION AND RETROCESSION.........................................2
     IV     EXTENDED REPORTING DATE OPTION.....................................2
      V     RETROCESSIONAIRE RESERVE DETERMINATION.............................3
     VI     DEFINITIONS......................................................3-6
    VII     RETROCESSION PREMIUM AND ADJUSTMENT................................6
   VIII     EXPERIENCE ACCOUNT BALANCE.......................................6-7
     IX     LOSS SETTLEMENTS...................................................7
      X     COMMUTATION AND EXPERIENCE REFUND..................................8
     XI     COMMUTATION APPROVAL ON CORPORATION'S POLICIES.....................8
    XII     EXPIRATION DURING LOSS.............................................9
   XIII     STOP LOSS (AGGREGATE) INCLUSION....................................9
    XIV     WARRANTY........................................................9-11
     XV     CURRENCY..........................................................11
    XVI     ACCESS TO RECORDS.................................................12
   XVII     ERRORS AND OMISSIONS..............................................12
  XVIII     TAXES.............................................................12
    XIX     OFFSET............................................................12
     XX     INSOLVENCY........................................................13
    XXI     ARBITRATION.......................................................14
   XXII     NONWAIVER.........................................................15
  XXIII     INTERMEDIARY......................................................15
   XXIV     PARTICIPATION AND SIGNATURES......................................16

<PAGE>
                  SECOND WHOLE ACCOUNT AGGREGATE EXCESS OF LOSS
                           RETROCESSION AGREEMENT (E2)
                           entered into by and between
                        EMPLOYERS REINSURANCE CORPORATION
                              Overland Park, Kansas
                     (hereinafter called the "Corporation")
                                       and
               the Retrocessionaire specifically identified on the
                         signature page attached hereto
                   (hereinafter called the "Retrocessionaire")

                            Effective January 1, 1999

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

WITNESSETH
----------

In  consideration  of the mutual  covenants  hereinafter  contained and upon the
terms and conditions hereinafter set forth, the parties hereto agree as follows:

                                    ARTICLE I
                                    ---------

APPLICATION OF AGREEMENT
------------------------

This  Agreement  applies  to  all  in  force,  new  and  renewal  insurance  and
reinsurance  written by the Corporation,  as respects  occurrences  taking place
anywhere in the world at or after January 1, 1999, 12:01 a.m.,  Central Standard
Time, and prior to January 1, 2000, 12:01 a.m., Central Standard Time.

                                   ARTICLE II
                                   ----------

BUSINESS RETROCEDED
-------------------

This Agreement applies to all insurance and reinsurance  business written by the
Corporation  covering in respect of exposures worldwide,  including  reinsurance
assumed from subsidiary and/or affiliate  companies and reinsurance assumed from
the  Corporation's  membership in any underwriting  association,  excluding life
business  written as such,  but not excluding  death  benefits under accident or
health Policies or workers' compensation Policies.

                                   ARTICLE III
                                   -----------

RETENTION AND RETROCESSION
--------------------------

<PAGE>
                                                                          Page 3

The  Corporation  shall  retain for its own  account  as its own net  retention,
subject  to the  First  Whole  Account  Aggregate  Excess  of Loss  Retrocession
Agreement (E1), all Ultimate Net Loss in the aggregate  incurred during the term
of this  Agreement in respect of its Net Retained  Liability up to and including
an amount equal to XX% of Subject Gross Net Earned Premium  Income  (hereinafter
"SGNEPI").

The  Retrocessionaire  shall  indemnify  the  Corporation  in respect of its Net
Retained  Liability for all Ultimate Net Loss in the aggregate  incurred  during
the term of this Agreement in excess of the Corporation's own net retention,  up
to:

A)       an amount equal to the first X.XX% of SGNEPI  excess of an amount equal
         to XX% of SGNEPI  provided that the total Ultimate Net Loss incurred by
         the  Corporation  exceeds an amount equal to XXX.XX% of SGNEPI and that
         the First Whole Account Aggregate Excess of Loss Retrocession Agreement
         (E1) does not  provide  protection  for an amount  equal to this  first
         X.XX% of SGNEPI, and

B)       an  amount  equal  to  XX.XX% of  SGNEPI excess of the sum of an amount
         equal to XXX.XX% of SGNEPI plus the amount recoverable  under Part A of
         this Article III.

The  Retrocessionaire's  annual  limit of  liability  in respect of Part A above
shall  not  exceed  the  lesser  of an  amount  equal  to X.XX%  of  SGNEPI,  or
$XXX,XXX,XXX;  nor shall the  Retrocessionaire's  annual  limit of  liability in
respect  of Part A and Part B above,  combined,  exceed  the lesser of an amount
equal to XX.XX% of SGNEPI, or $XXX,XXX,XXX.

Notwithstanding  the above,  the  liability  of the  Retrocessionaire  shall not
exceed the aggregate  amount of ceded Ultimate Net Loss incurred and reported by
the  Corporation  to the  Retrocessionaire  as of  February  1,  2000,  or  such
alternate date as established by the  Corporation  under the Extended  Reporting
Date Option.

                                   ARTICLE IV
                                   ----------

EXTENDED REPORTING DATE OPTION
------------------------------

At the sole  option  of the  Corporation,  on or before  February  1,  2000,  by
providing written notice to the  Retrocessionaire,  the Corporation may elect to
establish an alternate  date of not later than  February 1, 2001,  for reporting
the  aggregate  amount  of  ceded  ultimate  net loss  incurred  for  which  the
retrocessionaire shall be liable (hereinafter the "Alternate Date").

<PAGE>
                                                                          Page 4

                                    ARTICLE V
                                    ---------

RETROCESSIONAIRE RESERVE DETERMINATION
--------------------------------------

A)       The  Corporation  shall  determine  the  level  of total  reserves  for
         Ultimate Net Loss for the term of this Agreement and shall revise those
         reserves from time to time as  subsequent  events  require.  Should the
         Retrocessionaire  disagree with the reserves  posted by the Corporation
         for the term of this  Agreement,  the  Retrocessionaire  shall select a
         firm, acceptable to the Corporation,  to perform an independent reserve
         analysis.  In  the  event  the  Retrocessionaire   elects  to  have  an
         independent  reserve  analysis  conducted,  the loss settlement date on
         which the Corporation  seeks payment shall be delayed until  completion
         of the analysis, or six months past the loss settlement date, whichever
         first occurs. The results of the independent  reserve analysis shall be
         binding in  establishing  the reserve  amount for this cover until such
         time as a subsequent study is conducted or the Retrocessionaire and the
         Corporation mutually agree to changes in the reserves. The cost of such
         study shall be borne by the Retrocessionaire.

B)       If, subsequent to the  Retrocessionaire  making any payments under this
         Agreement,  the reserves for the term of this  Agreement are decreased,
         either by action of the  Corporation or in accordance  with paragraph A
         of  this   Article,   then  the   Corporation   shall   refund  to  the
         Retrocessionaire  the excess  amount  paid by the  Retrocessionaire  as
         determined using the revised reserves, if any, plus the Interest Credit
         calculated in  accordance  with this  Article.  The Interest  Credit is
         payable  immediately  for the number of days beginning with the date(s)
         such excess amounts were paid by the Retrocessionaire and ending at the
         date the  Retrocessionaire  is  reimbursed  for such excess amount paid
         and/or is paid the Interest Credit due.

C)       The  Interest  Credit  shall be the  average  of the three  month  U.S.
         Treasury Bill rate plus XXX basis points applied against the refund due
         to the Retrocessionaire.

                                   ARTICLE VI
                                   ----------

DEFINITIONS
-----------

As used in this Agreement:

A)       The term  "Ultimate Net Loss" shall mean the actual loss or losses paid
         or  payable  by  the   Corporation   in  settlement  of  claims  or  in
         satisfaction of awards or judgments (including prejudgment interest and
         plaintiff's  costs included in the judgment)  plus losses  Incurred But
         Not  Reported  (hereinafter  "IBNR") for all lines of business  covered
         under this Agreement,  subject  however to the following  limits within
         such Ultimate Net Loss:

         1)       an   aggregate   limit   for   all   Catastrophe   Losses   of
                  $X,XXX,XXX,XXX  ($XXX,XXX,XXX  with respect to recoveries  due
                  under Part A of Article III);

<PAGE>
                                                                          Page 5

DEFINITIONS (continued)
-----------------------

         2)       an aggregate sublimit for Catastrophe Losses occurring outside
                  of  the  United  States  of  America,   its   territories  and
                  possessions and Canada of $XXX,XXX,XXX; and

         3)       a per occurrence limit of $XXX,XXX,XXX.

         Subject  to the  limits of this  Agreement,  "Ultimate  Net Loss"  also
         includes  Loss  In  Excess  Of  Policy  Limits  and  Extra  Contractual
         Obligations  losses which are incurred as a result of the Corporation's
         participation  in any Original Policy which provides  coverage for such
         losses,  on the condition that the  Corporation  has, in advance of any
         conduct by the Original  Insured in connection with the  investigation,
         trial or  settlement of any claim or failure to pay or delay in payment
         of any benefits under any Original Policy,  counseled with the Original
         Insured and concurred in the Original Insured's course of conduct.

         The amount of loss paid or payable by the Corporation shall include all
         claim expenses covered under the Original Policy, but shall not include
         the  Corporation's   own  claim  expenses.   Salvages  and  recoveries,
         including recoveries under all other reinsurances, whether collected or
         not,  are to be first  deducted  from the  amount  of the loss  paid or
         payable  to  arrive  at the  amount  of  liability,  if any,  attaching
         hereunder.

B)       The term "Extra Contractual Obligations" shall mean:

         1)       Eighty   percent  of  any  amount   paid  or  payable  by  the
                  Corporation in excess of its Policy limits  (limited to within
                  the limit of this Agreement however), but otherwise within the
                  terms of its  Policy  (hereinafter  called  "Loss In Excess Of
                  Policy  Limits"),  as a result of an action  against it by its
                  Insured,  or its Insured's  assignee,  to recover  damages the
                  Corporation  is  legally  obligated  to  pay  because  of  the
                  Corporation's  alleged  or actual  negligence  or bad faith in
                  rejecting  a  settlement  within  its  Policy  limits,  or  in
                  discharging  its duty to defend or prepare  the defense in the
                  trial of any action against its Insured, or in discharging its
                  duty to prepare or prosecute an appeal consequent upon such an
                  action.

         2)       Eighty  percent of any punitive,  exemplary,  compensatory  or
                  consequential  damages  (limited  to within  the limit of this
                  Agreement  however),  other  than  Loss In  Excess  Of  Policy
                  Limits,  paid or payable by the  Corporation as a result of an
                  action against it by its Insured, its Insured's assignee, or a
                  third party claimant,  which action alleges  negligence or bad
                  faith on the part of the Corporation in handling a claim under
                  a Policy subject to this Agreement.

<PAGE>
                                                                          Page 6

DEFINITIONS (continued)
-----------------------

         The term "Extra  Contractual  Obligations" shall not include any amount
         paid or payable by the Corporation  where such amount has been incurred
         by the  Corporation  due to the  fraud  of a  member  of the  board  of
         directors, a corporate officer of the Corporation or any other employee
         with claims settlement  authority,  acting individually or collectively
         or in  collusion  with  any  individual  or  corporation  or any  other
         organization  or  party  involved  in  the  presentation,   defense  or
         settlement of any claim covered hereunder.

C)       The term "Net Retained Liability" shall mean that portion of any Policy
         which the Corporation retains net for its own account, however gross of
         recoveries from the underlying First Whole Account  Aggregate Excess of
         Loss  Retrocession  Agreement  (E1), and in  calculating  the amount of
         Ultimate  Net Loss  hereunder,  only loss in respect of that portion of
         any Policy which the Corporation  retains net for its own account shall
         be included.

         The amount of the  Retrocessionaire's  liability  under this  Agreement
         shall not be increased by reason of the inability of the Corporation to
         collect  from  any  other  Retrocessionaire(s),   whether  specific  or
         general,   any   amounts   which   may  have   become   due  from  such
         Retrocessionaire(s),  whether such inability arises from the insolvency
         of such other Retrocessionaire(s) or otherwise.

D)       The term "Subject  Gross Net Earned  Premium  Income" or "SGNEPI" shall
         mean the  Corporation's  subject  gross  premium  income  written  less
         premiums paid for  cancellations  and reductions of rates and for other
         reinsurance carried by the Corporation, recoveries under which inure to
         the  benefit of this  Agreement,  plus the subject  gross net  unearned
         premium  at the  beginning  of the  term,  less the  subject  gross net
         unearned  premium at the end of the term,  said unearned  premium being
         calculated on a monthly pro rata basis.

E)       The term  "Catastrophe  Losses" shall mean property  losses recorded by
         the Corporation  which involve two or more Policies and total more than
         $X,XXX,XXX of incurred loss net of inuring protection(s).

F)       The  unqualified  term  "Policy"  shall  mean  all  binders,  policies,
         certificates,  agreements,  treaties,  bonds or contracts of insurance,
         reinsurance or retrocession  accepted or held covered  provisionally or
         otherwise underwritten by the Corporation.

G)       The term  "Original  Policy"  shall mean the  initial  binder,  policy,
         certificate,   agreement,   bond  or  contract  of  insurance  that  is
         subsequently reinsured.

<PAGE>
                                                                          Page 7

DEFINITIONS (continued)
-----------------------

H)       The  unqualified  term  "Insured"  when used as a noun  shall  mean the
         person who obtained or is otherwise  covered by insurance issued by the
         Corporation,  or  the  reinsured  who  obtained  reinsurance  from  the
         Corporation,  or the  retrocedent  who obtained  retrocession  from the
         Corporation, as the context so requires.

I)       The term  "Original  Insured"  shall mean the entity who obtained or is
         otherwise  covered  by  insurance  that is  subsequently  reinsured  or
         retroceded under this Agreement.

                                   ARTICLE VII
                                   -----------

RETROCESSION PREMIUM AND ADJUSTMENT
-----------------------------------

A minimum  and deposit  premium of  $XX,XXX,XXX  is due in 1999 as follows:  the
first  installment  of $XX,XXX,XXX at January 1, and installments  of $X,XXX,XXX
each at April 1, July 1  and  October 1. The  retrocession  premium  shall be an
amount  equal to XX% of the  amount  of  ultimate  net  loss  ceded  under  this
agreement  as  reported  by the  Corporation  as of  February  1,  2000,  or the
Alternate  Date. The  retrocession  premium,  after deduction of the minimum and
deposit  premium  previously  paid,  shall be due at February 15,  2000,  or the
Alternate Date.

In  addition  to such  retrocession  premium,  there  shall  be an  amount  paid
reflecting an interest  accrual from February 15, 2000 to the Alternate Date, if
applicable,  at the rate of X.XXX% per  quarter  which  shall be applied to such
reinsurance premium.

The Corporation shall pay to the Retrocessionaire $XX,XXX,XXX of the minimum and
deposit  premium  at  January 1, 1999.  The  balance of all  premium,  including
retrocession  premium due February 15,  2000,  if any,  shall be withheld by the
Corporation in an Experience Account for the purpose of subsequent loss payments
and profit sharing.

                                  ARTICLE VIII
                                  ------------

EXPERIENCE ACCOUNT BALANCE
--------------------------

The Corporation shall calculate a notional Experience Account Balance at the end
of  each  quarter  year  until  expiration  of  all  of  the  Retrocessionaire's
obligations  under this  Agreement.  At January 1, 1999 the  Experience  Account
Balance shall be zero. The Experience Account Balance thereafter shall equal:

<PAGE>
                                                                          Page 8

EXPERIENCE ACCOUNT BALANCE (continued)
--------------------------------------

         The Experience Account Balance at the inception of the quarter
      plus the minimum and deposit premium, if any, due during the quarter
             less $XX,XXX,XXX and Federal Excise Tax, if applicable
      plus the retrocession premium due hereon, if any, during the quarter
                     less Federal Excise Tax, if applicable
     plus interest credited by applying a rate of X.XXX% against the average
      positive Experience Account Balance for the quarter, calculated daily
          less the Spread paid to the Retrocessionaire for the quarter
      less Ultimate Net Loss paid by the Retrocessionaire for the quarter.

"Spread" shall mean the amount equal to the following percentages of the average
positive  Experience  Account  Balance  for the  quarter  during  the  following
calendar years, respectively:

A)       X.XX% during calendar year 1999;

B)       X.XX% during calendar years 2000, 2001 and 2002;

C)       X.XXX% during calendar years 2003, 2004 and 2005; and

D)       X.XX% during calendar year 2006 and all calendar years thereafter.

At the option of the  Retrocessionaire,  the accrued Spread shall be paid to the
Retrocessionaire at the end of any quarter in cash or withheld in the Experience
Account.

                                   ARTICLE IX
                                   ----------

LOSS SETTLEMENTS
----------------

The Corporation shall report quarterly to the  Retrocessionaire  the development
of the incurred  Ultimate Net Loss ceded by a report  showing in summary  format
the  percentage  and dollar amount of Ultimate Net Loss for the term, as advised
at  February  1,  2000,  or the  Alternate  Date,  which  has  been  paid by the
Corporation.  At such time as the amount of paid  Ultimate  Net Loss exceeds the
retention  under  this  Agreement,  the  Retrocessionaire  shall  reimburse  the
Corporation  for such paid  Ultimate  Net Loss by payment  within 30 days of the
advice of  amounts  becoming  due.  To the  extent  the  Experience  Account  is
sufficient,  the Retrocessionaire may reimburse the Corporation by consenting to
the  Corporation  retaining for its own account from the Experience  Account the
amount of such paid Ultimate Net Loss.

Notwithstanding the above, the Retrocessionaire  shall have no obligation to pay
any part of any loss which  would cause the  Experience  Account to be less than
the product of negative 30% and the total premium ceded. Nothing set forth above
shall be  construed  as  prohibiting  the  Corporation  from  taking  credit for
Ultimate  Net Loss ceded as the above is only  applicable  to cash  transactions
under this Agreement.

<PAGE>
                                                                          Page 9

                                    ARTICLE X
                                    ---------

COMMUTATION AND EXPERIENCE REFUND
---------------------------------

This  Agreement  may be commuted at the  Corporation's  sole option by giving 90
days  advance  written  notice  at any time of its  intent to so  commute  after
expiration of the term.

If at the time of  commutation  the amount of unpaid  Ultimate  Net Loss is less
than or equal to the Experience Account Balance, the Retrocessionaire  agrees to
pay all unpaid Ultimate Net Loss as of the date of commutation.

If at the time of commutation  the amount of unpaid Ultimate Net Loss is greater
than the  Experience  Account  Balance,  the unpaid  Ultimate  Net Loss shall be
commuted at an amount to be mutually agreed. If mutual agreement is not reached,
then no commutation shall be permitted.

In the event that unpaid  Ultimate  Net Loss is commuted,  the  Retrocessionaire
agrees to pay an  experience  refund equal to the positive  difference,  if any,
between the Experience Account Balance after deduction of the accrued Spread due
the  Retrocessionaire,  if any, which shall be paid to the  Retrocessionaire  at
that time, and the commuted value of unpaid  Ultimate Net Loss.  Such payment of
an experience  refund shall be made by the  Corporation's  retention for its own
account from the Experience Account.

Payment by the Retrocessionaire of the commuted unpaid Ultimate Net Loss and the
experience  refund, if any, shall constitute a complete and final release of the
Retrocessionaire in respect of its obligations under this Agreement.

Any amount due to the  Corporation  as calculated  above shall be payable by the
Retrocessionaire within 30 days following the date of commutation.

                                   ARTICLE XI
                                   ----------

COMMUTATION APPROVAL ON CORPORATION'S POLICIES
----------------------------------------------

In the event of a commutation of any Policy resulting in the payment of Ultimate
Net  Loss  in  excess  of  $X,XXX,XXX  prior  to the  time  required  under  the
Corporation's  Policies for the term of this  Agreement,  then the paid Ultimate
Net Loss under this  Agreement  shall be  determined as if such  commutation  or
other arrangement had not occurred.  The analysis to determine both the ultimate
reserve  amount and the payout  pattern  which would have occurred on a commuted
Policy shall, unless waived in writing by the  Retrocessionaire,  be made on the
basis of an independent  reserve analysis.  The  Retrocessionaire  will select a
firm acceptable to the Corporation to conduct the analysis. The Retrocessionaire
shall bear the cost of such analysis and the results of such  analysis  shall be
binding in  determining  the ultimate  reserve amount and payout pattern for the
commuted reinsurance contract.

<PAGE>
                                                                         Page 10

                                   ARTICLE XII
                                   -----------

EXPIRATION DURING LOSS
----------------------

(This article applies only to property insurance and reinsurance.)

If this Agreement expires while an occurrence  covered hereunder is in progress,
the Retrocessionaire's liability hereunder shall, subject to the other terms and
conditions of this  Agreement,  be determined  as if the entire  occurrence  had
taken place prior to the expiration of this Agreement,  provided that no part of
such occurrence is claimed against any renewal or replacement of this Agreement.

                                  ARTICLE XIII
                                  ------------

STOP LOSS (AGGREGATE) INCLUSION
-------------------------------

All  aggregate  Policies  coming  within  the scope of this  Agreement  shall be
covered on a risks  attaching  basis  rather  than on an  occurrence  basis.  An
aggregate  Policy issued for a period of more than 12 months shall be considered
as  attaching  at each  anniversary  date of such Policy while such Policy is in
force.

                                   ARTICLE XIV
                                   -----------

WARRANTY
--------

The  Corporation  shall not introduce  any change in its  generally  established
practices,  including  but not limited to  accounting,  claims,  acceptance  and
underwriting  policies,  in respect of the business which is the subject of this
Agreement without the prior approval of the Retrocessionaire,  and such approval
shall not be  unreasonably  withheld by the  Retrocessionaire.  The  Corporation
specifically  warrants  that it will not change its gross line guide nor inuring
protections without prior advice to and approval from the Retrocessionaire,  and
such approval shall not be unreasonably withheld by the Retrocessionaire.

The  reinsurance  program  in  place  as of  January  1,  1999  relative  to HSB
Industrial Risk Insurers is:

A)  The Underlying Property Risk Treaties:

    1)  First  underlying  property per risk treaty or $X,XXX,XXX xs of $XXX,XXX
         - Occurrence   limitation   $XX,XXX,XXX  maximum annual aggregate limit
           $XXX,XXX,XXX (adjusts based upon percentage of  the gross  net earned
           premium)
         - Amount placed XX%
         - ERC's net XX% of $XXX,XXX  or $XXX,XXX per  risk in the retention and
           $-X-  subject  to  the  above  mentioned  limitations  in  the  first
           underlying property risk treaty.

<PAGE>
                                                                         Page 11

WARRANTY (continued)
-------------------

    2)  Second   underlying   property  per  risk  treaty  or  $XX,XXX,XXX xs of
        $X,XXX,XXX
         - Occurrence limitation - none
         - Annual aggregate limit $XXX,XXX,XXX
         - Amount of reinsurance placed XX% (XX.XXX% from June 1, 1999)
         - ERC's  net $X,XXX,XXX  ($X,XXX,XXX from June 1, 1999)  subject to the
           above mentioned limitation of the treaty.

    3)  Third  underlying   property  per  risk  treaty  or  $XX,XXX,XXX  xs  of
        $XX,XXX,XXX
         - Occurrence limitation $XX,XXX,XXX
         - Annual aggregate limit $XXX,XXX,XXX
         - Amount placed XX%
         - ERC's  net -X-,  subject to  the above  mentioned  limitations of the
           treaty.

     Note:  The association shall have sole discretion in defining risk for  the
     purposes  of  each of  these  above three  contracts  and  the  limits  and
     retentions  for each  and every  risk may apply on a policy, loss, insured,
     account, location or amount subject basis.

B)  The Main Program:

    1)  Per Risk Excess of Loss #1
         - Limit $XX,XXX,XXX xs of $XX,XXX,XXX
         - Reinstatements two full
         - Amount placed XX%
         - ERC's  net  $X,XXX,XXX subject to  the above mentioned limitations of
           the treaty.

    2)  Per Risk Excess of Loss #2
         - Limit $XX,XXX,XXX xs of $XXX,XXX,XXX
         - Reinstatements two full
         - Amount placed XX%
         - ERC's  net  $XX,XXX,XXX subject to the above mentioned limitations of
           the treaty.

    3)  Catastrophe Excess of Loss #1
         - Limit $XX,XXX,XXX xs of $XX,XXX,XXX
         - Reinstatement one full
         - Amount placed XX.XXX%
         - ERC's  net $XX,XXX,XXX subject to  the above mentioned limitations of
           the treaty.

         Note:  Definition of occurrence includes reinstatement of coverage in a
         wind event.  (Coverate for two 72 hour periods within 168 hours.)

<PAGE>

                                                                         Page 12

WARRANTY (continued)
-------------------

    4)  Combined Per Risk and Catastrophe Layer #1
         - Limit $XXX,XXX,XXX xs of $XXX,XXX,XXX
         - Reinstatement one full
         - Amount placed XX%
         - ERC's  net  $-X-  subject to  the above  mentioned limitations of the
           treaty.

    5)  Combined Per Risk and Catastrophe Layer #2
         - Limit $XXX,XXX,XXX xs of $XXX,XXX,XXX
         - Reinstatement one full
         - Amount placed XX%
         - ERC's net  $-X-  subject  to  the above  mentioned limitations of the
           treaty.

    6)  Combined Per Risk and Catastrophe Excess of Loss Layer #3
         - Limit $XXX,XXX,XXX xs of $XXX,XXX,XXX
         - Reinstatement one full
         - Amount placed XX%
         - ERC's  net  $-X-  subject  to  the   above   mentioned  reinstatement
           limitations of the treaty.

The business is written in the name of IRI Association and then passed on to ERC
and HSB  accordingly  in the ratio XX.X% of the net  written  premium to ERC and
X.X% of the net written premium to HSB. ERC then cedes XX% of the boiler premium
to HSB along with XX% of the HPR  business  (in turn  relative to their X.X% net
written premium,  HSB cedes XX% of the HPR premium and XX% of the boiler premium
to ERC).  Therefore,  HSB has XX% of the HPR  business  which is  subject to the
reinsurance  protections  described above. However, HSB does not buy reinsurance
for their share and therefore,  the reinsurance  placements are effectively XXX%
placed when it is indicated above that the placement was XX%.

                                   ARTICLE XV
                                   ----------

CURRENCY
--------

All  financial  transactions  contemplated  by this  Agreement  shall  be in the
currency of the United States of America.

<PAGE>
                                                                         Page 13

                                   ARTICLE XVI
                                   -----------

ACCESS TO RECORDS
-----------------

At any reasonable time, the  Retrocessionaire or its designated  representatives
shall have free access to all records of the  Corporation  which pertain to this
Agreement.

                                  ARTICLE XVII
                                  ------------

ERRORS AND OMISSIONS
--------------------

Any inadvertent delays,  omissions or errors shall not be held to relieve either
party  hereto from any  liability  which would  attach to it  hereunder  if such
delay,  omission or error had not been made,  provided  such delay,  omission or
error is rectified  upon  discovery,  and does not impose any greater  liability
upon the other party than would have attached  hereunder if the delay,  omission
or error had not occurred.

                                  ARTICLE XVIII
                                  -------------

TAXES
-----

In  consideration  of the terms under which this  Agreement is entered into, the
Corporation  will not claim a deduction  in respect of the  premium  hereon when
making tax returns,  other than income or profits tax  returns,  to any state or
territory of the United  States of America,  the District of Columbia or Canada,
and the  Corporation  will be liable for payment of all premium taxes on premium
ceded under this Agreement.

                                   ARTICLE XIX
                                   -----------

OFFSET
------

The  Corporation  and the  Retrocessionaire  shall  have the right to offset any
balance(s) due from one to the other under this  Agreement.  The party asserting
the right of offset may exercise such right any time whether the  balance(s) due
are on  account  of  premiums  or  losses  or  otherwise.  In the  event  of the
insolvency  of a party hereto,  offset shall only be allowed in accordance  with
the provision of Section 7427 of the Insurance Law of the State of New York.

<PAGE>
                                                                         Page 14

                                   ARTICLE XX
                                   ----------

INSOLVENCY
----------

In the event of the insolvency of the Corporation,  the retrocession  under this
Agreement  shall be payable  directly to the  Corporation or to its  liquidator,
receiver,  conservator  or statutory  successor on the basis of the liability of
the Corporation  without diminution because of the insolvency of the Corporation
or because the liquidator,  receiver,  conservator or statutory successor of the
Corporation  has  failed to pay all or a portion  of any  claim.  It is  agreed,
however,  that the liquidator,  receiver,  conservator or statutory successor of
the  Corporation  shall  give  written  notice  to the  Retrocessionaire  of the
pendency of a claim  against the  Corporation  indicating  the Policy  reinsured
which  claim   would   involve  a  possible   liability   on  the  part  of  the
Retrocessionaire  within a  reasonable  time  after  such  claim is filed in the
conservation or liquidation  proceeding or in the receivership,  and that during
the pendency of such claim, the Retrocessionaire may investigate such claim and
interpose,  at its own  expense,  in the  proceeding  where  such claim is to be
adjudicated,  any  defense  or  defenses  that  it  may  deem  available  to the
Corporation or its liquidator, receiver, conservator or statutory successor. The
expense thus incurred by the  Retrocessionaire  shall be chargeable,  subject to
the approval of the Court,  against the  Corporation  as part of the expenses of
conservation  or  liquidation  to the extent of a pro rata share of the  benefit
which may accrue to the Corporation solely as a result of the defense undertaken
by the Retrocessionaire.

Where  two or more  Retrocessionaires  are  involved  in the  same  claim  and a
majority in interest elect to interpose defense of such claim, the expense shall
be  apportioned  in accordance  with the terms of this  Agreement as though such
expense had been incurred by the Corporation.

It is further  understood and agreed that, in the event of the insolvency of the
Corporation,  the retrocession under this Agreement shall be payable directly by
the  Retrocessionaire  to  the  Corporation  or  to  its  liquidator,  receiver,
conservator or statutory successor, except as provided by Section 4118(a) of the
New York Insurance Law or except (a) where the Agreement  specifically  provides
another  payee  of such  retrocession  in the  event  of the  insolvency  of the
Corporation  and (b) where the  Retrocessionaire  with the consent of the direct
Insured or Insureds has assumed such Policy  obligations  of the  Corporation as
direct obligations of the Retrocessionaire to the payees under such Policies and
in substitution for the obligations of the Corporation to such payees.

<PAGE>
                                                                         Page 15

                                   ARTICLE XXI
                                   -----------

ARBITRATION
-----------

As a condition  precedent to any right of action hereunder,  any dispute arising
out of  this  Agreement  shall  be  submitted  to the  decision  of a  board  of
arbitration composed of two arbitrators and an umpire, meeting in Overland Park,
Kansas,   unless   otherwise   mutually   agreed  by  the  Corporation  and  the
Retrocessionaire.

The members of the board of arbitration shall be active or retired disinterested
officials of insurance or reinsurance  companies,  or  underwriters  at Lloyd's,
London.  Each party shall appoint its arbitrator and the two  arbitrators  shall
choose an umpire before instituting the hearing.  In the event that either party
should fail to choose an arbitrator  within 30 days following a written  request
by the other party to enter upon  arbitration,  the requesting  party may choose
two  arbitrators  who  shall in turn  choose  an  umpire  before  entering  upon
arbitration.  In the event the two arbitrators fail to agree on an umpire either
party  shall  have the right to submit the  matter to the  American  Arbitration
Association  in effect at that  time to name an  umpire in  accordance  with the
qualifications  provided  hereinabove.

Each party shall present its case to the  arbitrators  within 60 days  following
the date of their appointment.  The board shall make its decision with regard to
the custom and usage of the insurance and reinsurance business.  The board shall
issue its  decision  in writing  based upon a hearing in which  evidence  may be
introduced  without  following  strict  rules of  evidence  but in  which  cross
examination  and  rebuttal  shall be allowed.  The board shall make its decision
within 60 days  following  the  termination  of the hearings  unless the parties
consent to an extension.  The majority  decision of the board shall be final and
binding upon all parties to the proceeding.  Judgment upon the final decision of
the board may be entered in any court of competent jurisdiction.

If more than one  Retrocessionaire  is  involved in the same  dispute,  all such
Retrocessionaires  shall  constitute  and act as one party for  purposes of this
Article  and  communications  shall  be made by the  Corporation  to each of the
Retrocessionaires  constituting the one party,  provided,  however, that nothing
shall impair the rights of such Retrocessionaires to assert several, rather than
joint,  defenses or claims,  nor be construed  as changing the  liability of the
Retrocessionaires under the terms of this Agreement from several to joint.

Each party shall bear the expense of its own  arbitrator  and shall  jointly and
equally  bear with the other party the expense of the umpire.  In the event both
arbitrators  are chosen by one party,  the  expense of the  arbitrators  and the
umpire shall be jointly and equally  borne  between the parties.  The  remaining
costs of the arbitration proceedings shall be allocated by the board.

This Article shall survive the termination of this Agreement.

<PAGE>
                                                                         Page 16

                                  ARTICLE XXII
                                  ------------

NONWAIVER
---------

The failure of the Corporation or the  Retrocessionaire  to insist on compliance
with this  Agreement  or to  exercise  any right or remedy  hereunder  shall not
constitute a waiver of any rights or remedies contained herein, nor estop either
party from thereafter  demanding full and complete compliance nor prevent either
party from exercising such rights or remedies in the future.

                                  ARTICLE XXIII
                                  -------------

INTERMEDIARY
------------

Bates  Turner  Intermediaries  LLC is  hereby  recognized  as  the  Intermediary
negotiating   this  Agreement  for  business   hereunder.   All   communications
(including, but not limited to, notices, statements,  premiums, return premiums,
commissions,   taxes,  losses,  loss  adjustment  expenses,  salvages  and  loss
settlements)  relating  hereto shall be  transmitted  to the  Corporation or the
Retrocessionaire  through Bates Turner Intermediaries LLC, 6329 Glenwood,  Suite
200, P.O. Box 2959, Overland Park, Kansas, 66201. Payments by the Corporation to
the Intermediary shall constitute payment to the  Retrocessionaire to the extent
of such payments.  Payments by the  Retrocessionaire  to the Intermediary  shall
only constitute  payment to the Corporation to the extent that such payments are
actually received by the Corporation.

<PAGE>
                                                                         Page 17

                                  ARTICLE XXIV
                                  ------------

PARTICIPATION AND SIGNATURES
----------------------------

This Agreement  obligates the  Retrocessionaire  specifically  identified  below
("Subscribing  Retrocessionaire")  for XX.XX% of the  liability  and amounts set
forth under this Agreement and the Subscribing Retrocessionaire is entitled to a
corresponding part of the premiums set forth under this Agreement.

The share of the Subscribing  Retrocessionaire  in the interests and liabilities
of all  retrocessionaires  in respect of this  Agreement  shall be separate  and
apart from the shares of the other retrocessionaires to this Agreement,  and the
interests and liabilities of the Subscribing  Retrocessionaire  shall be several
and not joint with those of the other  retrocessionaires  and in no event  shall
the Subscribing Retrocessionaire participate in the interests and liabilities of
the other retrocessionaires.

IN WITNESS  WHEREOF,  the parties hereto by their duly authorized  officers have
executed this Agreement in triplicate.

At Overland Park, Kansas, this 19th day of July, 1999.
                               ----        ----

EMPLOYERS REINSURANCE CORPORATION

By:          /s/ Jeffrey J. Cooper
   --------------------------------------

Attest:       /s/ Kimberly S. Brown
       ----------------------------------

At New York, New York, this 27th day of September, 1999.
                            ----        ---------

FEDERAL INSURANCE COMPANY
    Per Chubb Re

By:         /s/ Peter Kellogg
   --------------------------------------

Attest:      /s/ Jeffrey O. Smith
       ----------------------------------EXECUTION COPY

                          REGISTRATION RIGHTS AGREEMENT

                  REGISTRATION RIGHTS AGREEMENT dated as of March 8, 2000 (this
"Agreement") among DYCOM INDUSTRIES, INC., a Florida corporation (the
"Company"), and the parties listed on the signature pages hereto (each a
"Purchaser" and, collectively, the "Purchasers") who will, as of the effective
time of the Merger (as defined below) be holders of the amount of common stock,
par value $0.33 1/3 per share, of the Company (the "Common Stock") set forth on
Schedule I to this Agreement.

                  WHEREAS, Dycom Acquisition Corporation IV, a Utah corporation
and wholly owned subsidiary of the Company ("Merger Sub") will be merged (the
"Merger") with and into Niels Fugal Sons Company, a Utah corporation ("NFSC"),
pursuant to an Agreement and Plan of Merger dated as of February 14, 2000 among
the Company, Merger Sub, NFSC and the Purchasers (the "Merger Agreement");

                  WHEREAS, the Purchasers will receive the Common Stock pursuant
to the Merger Agreement; and

                  WHEREAS, it is a condition to the obligations of the parties
to the Merger Agreement that this Agreement be entered into by the parties
hereto concurrently with the closing under the Merger Agreement.

                  NOW, THEREFORE, in consideration of the foregoing and the
mutual convents and agreements herein contained, and intending to be legally
bound hereby, the parties hereto hereby agree as follows:

                  1. Certain Definitions. The following terms, as used herein,
have the following meanings:

                  "Affiliate" of a Holder means (a) a Person who controls, is
         controlled by or is under common control with such Holder or the spouse
         or children (or a trust exclusively for the benefit of a spouse and/or
         children) of such Holder or, in the case of a Holder that is a
         partnership, its partners, (b) trusts for the benefit of any of the
         Persons included in the foregoing clause (a), and (c) any charitable
         foundation a majority of whose members, trustees or directors, as the
         case may be, are Persons included in the foregoing clause (a).

<PAGE>

                                        2

                  "Aggregate Maximum Demand Amount" has the meaning set forth in
         Section 3(a).

                  "Aggregate Maximum Participatory Amount" has the meaning set
         forth in Section 4(a).

                  "Aggregate Minimum Demand Amount" has the meaning set forth in
         Section 3(a).

                  "Agreement" has the meaning set forth in the preamble to this
         agreement.

                  "Common Stock" has the meaning set forth in the preamble to
         this Agreement.

                  "Company" has the meaning set forth in the preamble to this
         Agreement.

                  "Exchange Act" means the Securities Exchange Act of 1934, as
         amended, or any similar federal statute, as the same shall be in effect
         at the time.

                  "Holder" means a Purchaser or any assignee thereof to whom the
         rights under this Agreement are assigned in accordance with the
         provisions of Section 14.

                  "Individual Maximum Demand Amount" has the meaning set forth
         in Section 3(a).

                  "Initiating Holders" has the meaning set forth in Section
         3(a).

                  "Merger" has the meaning set forth in the recitals to this
         Agreement.

                  "Merger Agreement" has the meaning set forth in the recitals
         to this Agreement.

                  "Merger Sub" has the meaning set forth in the preamble to this
         Agreement.

                  "NFSC" has the meaning set forth in the recitals to this
         Agreement.

                  "Person" means an individual, corporation, partnership,
         limited partnership, syndicate, person (including, without limitation,
         a "person" as defined in Section 13(d)(3) of the Exchange Act), trust,
         association or entity or government, political subdivision, agency or
         instrumentality of a government.

                  "PORTAL" has the meaning set forth in Section 10(b).

<PAGE>

                                        3

                  "Purchaser" has the meaning set forth in the preamble to this
         Agreement.

                  "register," "registered" and "registration" refer to a
         registration effected by preparing and filing a registration statement
         or similar document in compliance with the Securities Act and the
         declaration or ordering of effectiveness of such registration statement
         or document.

                  "Registrable Stock" means (a) the Common Stock issued to the
         Purchasers pursuant to the Merger Agreement, (b) any Common Stock
         issued as (or issuable upon the conversion or exercise of any warrant,
         right, option or other convertible security which is issued) a dividend
         or other distribution with respect to, or in exchange for, or in
         replacement of, the Common Stock issued to the Purchasers pursuant to
         the Merger Agreement or this clause (b), and (c) any Common Stock
         issued by way of a stock split of the Common Stock referred to in
         clause (a) or (b) above. For purposes of this Agreement, any
         Registrable Stock shall cease to be Registrable Stock when (1) a
         registration statement covering such Registrable Stock has been
         declared effective and such Registrable Stock has been disposed of
         pursuant to such effective registration statement, (2) such Registrable
         Stock is sold by a Person in a transaction in which the rights under
         the provisions of this Agreement are not assigned or (3) such
         Registrable Stock may be sold pursuant to Rule 144(k) (or any similar
         provision then in force under the Securities Act) without registration
         under the Securities Act.

                  "SEC" means the Securities and Exchange Commission.

                  "Securities Act" means the Securities Act of 1933, as amended,
         or any similar federal statute, as the same shall be in effect at the
         time.

                  2. Notice of Proposed Transfer. Prior to any proposed sale,
transfer, disposition or distribution of any Registrable Stock (other than under
the circumstances described in Section 3 or 4), the holder thereof shall have
given written notice to the Company of its intention to effect such sale,
transfer, disposition or distribution. Each such notice shall describe the
manner of the proposed sale, transfer, disposition or distribution, and, if
requested by the Company, shall be accompanied by an opinion of counsel
satisfactory to the Company to the effect that the proposed sale, transfer,
disposition or distribution may be effected without registration under the
Securities Act, whereupon the holder of such stock shall be entitled to sell,
transfer, dispose of or distribute such stock in accordance with the terms of
its notice. Each certificate for Registrable Stock sold, transferred, disposed
of or distributed as provided above shall bear the legend required pursuant to
Section 6.07 of the Merger Agreement, except that such certificate shall not
bear such legend if (i) such sale, transfer, disposition or distribution is in
accordance with the provisions of Rule 144 (or any other rule permitting public
sale without registration under the Securities Act) or (ii) the opinion of
counsel referred

<PAGE>

                                        4

to above is to the further effect that the transferee or holder and any
subsequent transferee or holder (other than an Affiliate of the Company) would
be entitled to transfer such securities in a public sale without registration
under the Securities Act.

                  3. Demand for Registration.

                  (a) On and after the date that is ninety (90) days from the
         Effective Time (as such term is defined in the Merger Agreement), the
         Holders of at least 331/3% of the Registrable Stock (the "Initiating
         Holders") may demand in a written notice that the Company file a
         registration statement under the Securities Act (or a similar document
         pursuant to any other statute then in effect corresponding to the
         Securities Act) covering the registration of any or all Registrable
         Stock held by such Initiating Holders in the manner specified in such
         notice, provided that the amount of Registrable Stock included in such
         registration shall be equal to at least 331/3% ("Aggregate Minimum
         Demand Amount"), but not more than 50% (the "Aggregate Maximum Demand
         Amount") of the total Registrable Stock existing on the date of such
         notice, and provided further that, with respect to any Holder who is a
         Purchaser or an Affiliate of a Purchaser, the amount of Registrable
         Stock included in such registration by such Holder shall not exceed 50%
         (the "Individual Maximum Demand Amount") of the total Registrable Stock
         held by such Holder. Following receipt of any notice under this Section
         3 the Company shall (x) within twenty (20) days notify all other
         Holders of such request in writing and (y) use its reasonable efforts
         to cause to be registered under the Securities Act, subject to the
         provisos of the immediately preceding sentence, all Registrable Stock
         that the Initiating Holders and such other Holders have demanded,
         within ten (10) days after the Company has given such notice, be
         registered in accordance with the manner of disposition specified in
         such notice by the Initiating Holders, provided, however, that (1) if
         the amount of Registrable Stock requested to be included in a
         registration pursuant to this Section 3(a) exceeds the Aggregate
         Maximum Demand Amount, then the amount of Registrable Stock registered
         in such registration shall be reduced pro rata based upon the amount of
         securities then held by each Holder so that the Aggregate Maximum
         Demand Amount is not exceeded, and (2) if (i) any Person (an "ECC
         Holder") holding securities of the Company is entitled to register any
         of such securities pursuant to the Registration Rights Agreement (the
         "ECC Agreement"), dated as of March 31, 1999, among the Company, Gary
         E. Ervin, Timothy W. Ervin, Robert W. Ervin, Keith E. Walker, Robert J.
         Chastain, Charles T. McElroy and Penny J. Ward and such Person has
         requested pursuant to paragraph 4 of the ECC Agreement to include a
         certain amount of securities in a registration initiated by the Holders
         pursuant to this paragraph 3(a) and (ii) the Company determines that it
         is, pursuant to paragraph 4 of the ECC Agreement, entitled to reduce
         the amount of securities included in such registration by an ECC
         Holder, then the amount of securities registered in such

<PAGE>

                                        5

         registration by the Holders and the ECC Holders shall be reduced pro
         rata based upon the amount of securities then held by each such holder.

                  (b) If the Initiating Holders intend to have the Registrable
         Stock distributed by means of an underwritten offering, the Company
         shall include such information in the written notice referred to in
         clause (x) of Section 3(a). In such event, the right of any Holder to
         include its Registrable Stock in such registration shall be conditioned
         upon such Holder's participation in such underwritten offering and the
         inclusion of such Holder's Registrable Stock in the underwritten
         offering (unless otherwise mutually agreed by a majority in interest of
         the Initiating Holders and such Holder) on the terms provided below.
         All Holders proposing to distribute Registrable Stock through such
         underwritten offering shall enter into an underwriting agreement in
         customary form with the underwriter or underwriters. Such underwriter
         or underwriters shall be selected by a majority in interest of the
         Initiating Holders and shall be approved by the Company, which approval
         shall not be unreasonably withheld, provided that (i) all of the
         representations and warranties by, and the other agreements on the part
         of, the Company to and for the benefit of such underwriters shall also
         be made to and for the benefit of such Holders of Registrable Stock,
         (ii) any or all of the conditions precedent to the obligations of such
         underwriters under such underwriting agreement shall be conditions
         precedent to the obligations of such Holders of Registrable Stock, and
         (iii) no Holder shall be required to make any representations or
         warranties to or agreements with the Company or the underwriters other
         than representations, warranties or agreements regarding such Holder,
         the Registrable Stock of such Holder and such Holder's intended method
         of distribution and any other representations required by law or
         reasonably required by the underwriter or the Company. If any Holder of
         Registrable Stock disapproves of the terms of the underwriting, such
         Holder may elect to withdraw all its Registrable Stock by written
         notice to the Company, the managing underwriter and the Initiating
         Holders. The Registrable Stock so withdrawn shall also be withdrawn
         from registration. If, as a result of such withdrawal, the amount of
         Registrable Stock to be included in the offering is less than the
         Aggregate Minimum Demand Amount, the Company shall not be required to
         proceed with such offering.

                  (c) Notwithstanding any provision of this Agreement to the
         contrary:

                           (i)      the Company shall not be required to effect
                                    a registration pursuant to this Section 3
                                    during the period starting with the date of
                                    filing by the Company of, and ending on a
                                    date one hundred twenty (120) days following
                                    the effective date of, a registration
                                    statement pertaining to a public offering of
                                    securities for the account of the Company or
                                    on behalf of the selling stockholders

<PAGE>

                                        6

                                    under any other registration rights
                                    agreement which the Holders have been
                                    entitled to join pursuant to Section 4 of
                                    this Agreement; provided that the Company
                                    shall actively employ in good faith all
                                    reasonable efforts to cause such
                                    registration statement to become effective
                                    as soon as possible; and

                           (ii)     if the Company shall determine in good faith
                                    that such registration would interfere with
                                    any material transaction then being pursued
                                    by the Company, the Company's obligation to
                                    use its reasonable efforts to file a
                                    registration statement shall be deferred for
                                    a period not to exceed ninety (90) days.

                  (d) The Company shall not be obligated to effect and pay for
         more than one (1) registration pursuant to this Section 3; provided,
         that a registration demanded pursuant to this Section 3 shall not be
         deemed to have been effected for purposes of this Section 3(d), (1) if
         by reason of any reduction in the amount of securities registered by
         the Holders pursuant to Section 3(a)(2) of this Agreement the amount of
         Registrable Stock registered in such registration is not equal to or
         greater than the Aggregate Minimum Demand Amount and (2) unless (i) it
         has been declared effective by the SEC, (ii) it has remained effective
         for the period set forth in Section 5(a) and (iii) the offering of
         Registrable Stock pursuant to such registration is not subject to any
         stop order, injunction or other order or requirement of the SEC (other
         than any such stop order, injunction, or other requirement of the SEC
         prompted by any act or omission of Holders of Registrable Stock).

                  4. Participatory Registration.

                  (a) If at any time on or after the date that is ninety (90)
         days from the Effective Time, the Company determines that it shall file
         a registration statement under the Securities Act (other than a
         registration statement on a Form S-4 or S-8 or filed in connection with
         an exchange offer or an offering of securities solely to the Company's
         existing stockholders) on any form that would also permit the
         registration of the Registrable Stock and such filing is to be on its
         behalf and/or on behalf of selling holders of its securities for the
         general registration of its Common Stock to be sold for cash (other
         than where such selling holders are limited to selling securities
         pursuant to an over-allotment option), the Company shall each such time
         promptly give each Holder written notice of such determination setting
         forth the date on which the Company proposes to file such registration
         statement, which date shall be no earlier than fifteen (15) days from
         the date of such notice, and advising each Holder of its right to have
         Registrable Stock included in such registration. Subject to Sections 7
         and 9, upon the written request of any Holder received by the Company
         no later than ten (10)

<PAGE>

                                        7

         days after the date of receipt of the Company's notice, the Company
         shall use its reasonable efforts to cause to be registered under the
         Securities Act all of the Registrable Stock that each such Holder has
         so requested to be registered; provided that the amount of Registrable
         Stock included in such registration shall not exceed 50% (the
         "Aggregate Maximum Participatory Amount") of the total Registrable
         Stock existing on the date of such notice given by the Company, and
         provided further that, with respect to any Holder who is a Purchaser or
         an Affiliate of a Purchaser, the amount of Registrable Stock included
         in such registration by such Holder shall not exceed 50% of the total
         Registrable Stock held by such Holder. If the amount of Registrable
         Stock requested to be included in a registration pursuant to this
         Section 4(a) exceeds the Aggregate Maximum Participatory Amount, then
         the amount of Registrable Stock registered in such registration shall
         be reduced pro rata based upon the amount of securities then held by
         each Holder so that the Aggregate Maximum Participatory Amount is not
         exceeded.

                  (b) In a registration pursuant to Section 4(a) hereof, if the
         managing underwriter (or, in the case of a non-underwritten offering,
         the Company) has informed the Holders of Registrable Stock requesting
         inclusion in such offering (and the Company in the case of an
         underwritten offering) that in such underwriter's opinion (or, in the
         case of a non-underwritten offering, the opinion of the Company) the
         total number of securities which the Company, the Holders of
         Registrable Stock and any other Persons desiring to participate in such
         registration intend to include in such offering is such as could
         materially and adversely affect the success of such offering, including
         the price at which such securities can be sold, then the Company will
         be required to include in such registration only the amount of
         securities which it is so advised (or, in the case of a
         non-underwritten offering, that it reasonably determines) should be
         included in such registration. In such event: (1) in cases only
         involving the registration for sale of securities for the Company's own
         account (other than pursuant to the exercise of participatory rights
         herein and in other contractual commitments of the Company), securities
         shall be registered in such offering in the following order of
         priority: (i) first, the securities which the Company proposes to
         register, (ii) second, provided that no securities sought to be
         included by the Company have been excluded from such registration, the
         securities which have been requested to be included in such
         registration by Persons entitled to exercise participatory registration
         rights pursuant to contractual commitments of the Company existing as
         of the date hereof, pro rata based upon the aggregate amount of
         securities then held, and (iii) third, provided that no securities
         sought to be included by the Company or the other Persons described in
         the immediately preceding clause (ii) have been excluded from such
         registration, the securities which have been requested to be included
         in such registration by the Holders of Registrable Stock pursuant to
         this Agreement together with the securities of other Persons entitled
         to exercise participatory registration rights pursuant to contractual
         commitments of the Company (pro rata based upon the aggregate amount of
         securities then held) and are not

<PAGE>

                                        8

         included in the immediately preceding clause (ii); and (2) in cases not
         involving the registration for sale of securities for the Company's own
         account only, securities shall be registered in such offering in the
         following order of priority: (i) first, the securities of any Person
         whose exercise of a "demand" registration right pursuant to a
         contractual commitment of the Company is the basis for the registration
         and, pursuant to the terms of the ECC Agreement, the securities
         requested to be included in such registration by any ECC Holder
         pursuant to paragraph 4 of the ECC Agreement, pro rata based upon the
         aggregate amount of securities then held, (ii) second, provided that no
         securities of such Person referred to in the immediately preceding
         clause (i) have been excluded from such registration, the securities
         which have been requested to be included in such registration by
         Persons entitled to exercise participatory registration rights pursuant
         to contractual commitments of the Company existing as of the date
         hereof, pro rata based upon the aggregate amount of securities then
         held, (iii) third, provided that no securities of such Persons referred
         to in the immediately preceding clause (i) or (ii) have been excluded
         from such registration, the securities which have been requested to be
         included in such registration by the Holders of Registrable Stock
         pursuant to this Agreement together with the securities of other
         Persons entitled to exercise participatory registration rights pursuant
         to contractual commitments of the Company (pro rata based upon the
         aggregate amount of securities then held) and are not included in the
         immediately preceding clause (ii) and (iv) fourth, provided that no
         securities of any other Person have been excluded from such
         registration, the securities which the Company proposes to register.

                  5. Obligations of the Company. Whenever required under this
Agreement to use its reasonable efforts to effect the registration of any
Registrable Stock, the Company shall, as expeditiously as possible:

                  (a) prepare and file with the SEC a registration statement
         signed, pursuant to Section 6(a) of the Securities Act, by the officers
         and directors of the Company with respect to such Registrable Stock and
         use its reasonable efforts to cause such registration statement to
         become and remain effective for the period of the distribution
         contemplated thereby determined as hereinafter provided;

                  (b) prepare and file with the SEC such amendments and
         supplements to such registration statement signed, pursuant to Section
         6(a) of the Securities Act, by the officers and directors of the
         Company and the prospectus used in connection therewith as may be
         necessary to comply with the provisions of the Securities Act with
         respect to the disposition of all Registrable Stock covered by such
         registration statement;

                  (c) furnish to the Holders such numbers of copies of the
         registration statement and the prospectus included therein (including
         each preliminary prospectus and any amendments or supplements thereto
         in conformity with the requirements of the

<PAGE>

                                        9

         Securities Act) and such other documents and information as they may
         reasonably request;

                  (d) use its reasonable efforts to register or qualify the
         Registrable Stock covered by such registration statement under such
         other securities or blue sky laws of such jurisdiction within the
         United States and Puerto Rico as shall be reasonably appropriate for
         the distribution of the Registrable Stock covered by the registration
         statement; provided, however, that the Company shall not be required in
         connection therewith or as a condition thereto to qualify to do
         business in, subject itself to general taxation by or to file a general
         consent to service of process in any jurisdiction wherein it would not
         but for the requirements of this paragraph (d) be obligated to do so;
         and provided further that the Company shall not be required to qualify
         such Registrable Stock in any jurisdiction in which the securities
         regulatory authority requires that any Holder submit any shares of its
         Registrable Stock to the terms, provisions and restrictions of any
         escrow, lockup or similar agreement(s) for consent to sell Registrable
         Stock in such jurisdiction unless such Holder agrees to do so;

                  (e) promptly notify each Holder for whom such Registrable
         Stock is covered by such registration statement, at any time when a
         prospectus relating thereto is required to be delivered under the
         Securities Act, of the happening of any event as a result of which the
         prospectus included in such registration statement, as then in effect,
         includes an untrue statement of a material fact or omits to state any
         material fact required to be stated therein or necessary to make the
         statements therein not misleading in light of the circumstances under
         which they were made, and at the request of any such Holder promptly
         prepare and furnish to such Holder a reasonable number of copies of a
         supplement to or an amendment of such prospectus as may be necessary so
         that, as thereafter delivered to the purchasers of such securities,
         such prospectus shall not include an untrue statement of a material
         fact or omit to state a material fact required to be stated therein or
         necessary to make the statements therein not misleading in light of the
         circumstances under which they were made;

                  (f) use reasonable efforts to furnish, at the request of any
         Holder demanding registration of Registrable Stock pursuant to this
         Agreement, if the method of distribution is by means of an
         underwriting, on the date that the shares of Registrable Stock are
         delivered to the underwriters for sale pursuant to such registration,
         or if such Registrable Stock is not being sold through underwriters, on
         the date that the registration statement with respect to such shares of
         Registrable Stock becomes effective, (i) a signed opinion, dated such
         date, of the independent legal counsel representing the Company for the
         purpose of such registration, addressed to the underwriters, if any,
         and if such Registrable Stock is not being sold through underwriters,
         then to the Holders making such request, as to such matters as such

<PAGE>

                                       10

         underwriters or the Holders holding a majority of the Registrable Stock
         included in such registration, as the case may be, may reasonably
         request and as would be customary in such a transaction; and (ii)
         letters dated such date and the date the offering is priced from the
         independent certified public accountants of the Company, addressed to
         the underwriters, if any, and if such Registrable Stock is not being
         sold through underwriters, then to the Holders making such request and,
         if such accountants refuse to deliver such letters to such Holders,
         then to the Company (A) stating that they are independent certified
         public accountants within the meaning of the Securities Act and that,
         in the opinion of such accountants, the financial statements and other
         financial data of the Company included in the registration statement or
         the prospectus, or any amendment or supplement thereto, comply as to
         form in all material respects with the applicable accounting
         requirements of the Securities Act and (B) covering such other
         financial matters (including information as to the period ending not
         more than five (5) business days prior to the date of such letters)
         with respect to the registration in respect of which such letter is
         being given as such underwriters or the Holders holding a majority of
         the Registrable Stock included in such registration, as the case may
         be, may reasonably request and as would be customary in such a
         transaction;

                  (g) enter into customary agreements (including if the method
         of distribution is by means of an underwriting, an underwriting
         agreement in customary form) and take such other actions as are
         reasonably required in order to expedite or facilitate the disposition
         of the Registrable Stock to be so included in the registration
         statement;

                  (h) otherwise use its reasonable efforts to comply with all
         applicable rules and regulations of the SEC, and make available to its
         security holders, as soon as reasonably practicable, but not later than
         eighteen (18) months after the effective date of the registration
         statement, an earnings statement covering the period of at least twelve
         (12) months beginning with the first full month after the effective
         date of such registration statement, which earnings statements shall
         satisfy the provisions of Section 11(a) of the Securities Act; and

                  (i) use its reasonable efforts to list the Registrable Stock
         covered by such registration statement with any securities exchange on
         which the Common Stock is then listed.

For purposes of Sections 5(a) and 5(b), the period of distribution of
Registrable Stock shall be deemed to extend until the earlier of (i) the sale of
all Registrable Stock covered thereby or, in the case of a firm commitment
underwritten public offering, the distribution of all securities purchased by
the underwriters and (ii) six (6) months after the effective date thereof.

<PAGE>

                                       11

                  6. Suspension of Registration Statement. The Company may
suspend the availability of any registration statement filed by the Company
referred to in Section 3 or 4 and the use of the prospectus included therein if
such suspension is effected in good faith and for valid business reasons (not
including avoidance of the Company's obligations hereunder), including the
acquisition or divestiture of assets, the filing of public reports with the SEC
and during the pendency of material corporate developments. Upon such suspension
of a registration statement by the Company, the Holders shall suspend offers and
sales of Registrable Stock until the Company notifies the Holders that (i)
offers and sales may recommence or (ii) the Company has filed a supplement to
the prospectus or an amendment to such registration statement to update the
disclosure contained therein.

                  7. Furnish Information. It shall be a condition precedent to
the obligations of the Company to take any action pursuant to this Agreement
that the Holders shall furnish to the Company such information regarding
themselves, the Registrable Stock held by them, and the intended method of
disposition of such securities as the Company shall reasonably request and as
shall be required in connection with the action to be taken by the Company.

                  8. Expenses of Registration. All expenses incurred in
connection with each registration pursuant to Section 3 and Section 4 of this
Agreement, excluding underwriters' discounts and commissions and the fees, but
including without limitation all registration, filing and qualification fees,
word processing, duplicating, printers' and accounting fees (including the
expenses of any special audits or "cold comfort" letters required by or incident
to such performance and compliance), fees of the New York Stock Exchange or
listing fees, messenger and delivery expenses, all fees and expenses of
complying with state securities or blue sky laws, fees and disbursements of
counsel for the Company, and, to the extent permitted without jeopardizing the
treatment of the Merger as a pooling of interests for accounting purposes, the
fees and disbursements of one counsel for the selling Holders (which counsel
shall be selected by the holders of a majority in interest of the Common Stock
being registered (excluding the Company and the Common Stock being registered
thereby)), shall be paid by the Company; provided, however, that if a
registration request pursuant to Section 3 of this Agreement is subsequently
withdrawn at the request of the Holders of a number of shares of Registrable
Stock such that the remaining Holders requesting registration would not have
been able to request registration under the provisions of Section 3 of this
Agreement, such withdrawing Holders shall bear all expenses incurred in
connection with such requested registration. The Holders shall bear and pay the
underwriting commissions and discounts applicable to securities offered for
their account in connection with any registrations, filings and qualifications
made pursuant to this Agreement.

                  9. Underwriting Requirements. In connection with any
underwritten offering, the Company shall not be required under this Agreement to
include shares of Registrable Stock in such underwritten offering unless the
Holders of such shares of

<PAGE>

                                       12

Registrable Stock accept the terms of the underwriting of such offering that
have been reasonably agreed upon between the Company and the underwriters
selected by the Company; provided, however, that in no event shall any Holder be
required to make the representations and warranties to, or agreements with, the
Company and its representatives other than as contemplated by Section 3(b)(iii).

                  10. Rule 144 Information. With a view to making available the
benefits of certain rules and regulations of the SEC which may at any time
permit the sale of the Registrable Stock to the public without registration, (a)
at all times after ninety (90) days after any registration statement covering a
public offering of securities of the Company under the Securities Act shall have
become effective, the Company agrees to:

                  (i) make and keep public information available, as those terms
         are understood and defined in Rule 144 under the Securities Act;

                  (ii) use its best efforts to file with the SEC in a timely
         manner all reports and other documents required of the Company under
         the Securities Act and the Exchange Act; and

                  (iii) furnish to each Holder of Registrable Stock forthwith
         upon request a written statement by the Company as to its compliance
         with the reporting requirements of such Rule 144 and of the Securities
         Act and the Exchange Act, a copy of the most recent annual or quarterly
         report of the Company, and such other reports and documents so filed by
         the Company as such Holder may reasonably request in availing itself of
         any rule or regulation of the SEC allowing such Holder to sell any
         Registrable Stock without registration; and

                  (b) at all times during which the Company is neither subject
to the reporting requirements of Section 13 or 15(d) of the Exchange Act, it
will provide, upon the written request of any Holder of Registrable Stock in
written form (as promptly as practicable and in any event within 15 business
days), to any prospective buyer of such stock designated by such Holder, all
information required by Rule 144A(d)(4)(i) of the General Regulations
promulgated by the SEC under the Securities Act. Upon written request of the
Holder, the Company will cooperate with and assist any Holder of Registrable
Stock or any member of the National Association of Securities Dealers, Inc.
system for Private Offerings Resales and Trading through Automated Linkage
("PORTAL") in applying to designate and thereafter maintain the eligibility of
the Registrable Stock for trading through PORTAL.

<PAGE>

                                       13

                  11. Indemnification. In the event any Registrable Stock is
included in a registration statement under this Agreement:

                  (a) The Company shall indemnify and hold harmless each Holder,
         such Holder's directors and officers, each Person who participates in
         the offering of such Registrable Stock, including underwriters (as
         defined in the Securities Act), and each Person, if any, who controls
         such Holder or participating Person within the meaning of the
         Securities Act, against any losses, claims, damages or liabilities,
         joint or several, to which they may become subject under the Securities
         Act or otherwise, insofar as such losses, claims, damages or
         liabilities (or proceedings in respect thereof) arise out of or are
         based on any untrue or alleged untrue statement of any material fact
         contained in such registration statement on the effective date thereof
         (including any prospectus filed under Rule 424 under the Securities Act
         or any amendments or supplements thereto) or arise out of or are based
         upon the omission or alleged omission to state therein a material fact
         required to be stated therein or necessary to make the statements
         therein not misleading, and shall reimburse each such Holder, such
         Holder's directors and officers, such participating person or
         controlling person for any legal or other expenses reasonably incurred
         by them (but not in excess of expenses incurred in respect of one
         counsel for all of them unless, in the reasonable judgement of an
         indemnified party there is a conflict of interest with another
         indemnified party, in which case the indemnified parties may be
         represented by separate counsel) in connection with investigating or
         defending any such loss, claim, damage, liability or action; provided,
         however, that the indemnity agreement contained in this Section 11(a)
         shall not apply to amounts paid in settlement of any such loss, claim,
         damage, liability or action if such settlement is effected without the
         consent of the Company (which consent shall not be unreasonably
         withheld); provided further that the Company shall not be liable to any
         Holder, such Holder's directors and officers, participating Person or
         controlling Person in any such case for any such loss, claim, damage,
         liability or action to the extent that it arises out of or is based
         upon an untrue statement or alleged untrue statement or omission or
         alleged omission made in connection with such registration statement,
         preliminary prospectus, final prospectus or amendments or supplements
         thereto, in reliance upon and in conformity with written information
         furnished expressly for use in connection with such registration by any
         such Holder, such Holder's directors and officers, participating Person
         or controlling Person. Such indemnity shall remain in full force and
         effect regardless of any investigation made by or on behalf of any such
         Holder, such Holder's directors and officers, participating Person or
         controlling Person, and shall survive the transfer of such securities
         by such Holder. The indemnification as provided in this Section 11(a)
         shall be separate from, and in addition to, the indemnification
         provided in the Merger Agreement.

<PAGE>

                                       14

                  (b) The Holders demanding or joining in a registration
         severally and not jointly shall indemnify and hold harmless the
         Company, each of its directors and officers, each agent and any
         underwriter for the Company (within the meaning of the Securities Act)
         and each Person who controls any of the foregoing Persons (within the
         meaning of the Securities Act) against any losses, claims, damages or
         liabilities, joint or several, to which the Company or any such
         director, officer, controlling Person, agent or underwriter may become
         subject, under the Securities Act or otherwise, insofar as such losses,
         claims, damages or liabilities (or proceedings in respect thereof)
         arise out of or are based upon any untrue statement or alleged untrue
         statement of any material fact contained in such registration statement
         on the effective date thereof (including any prospectus filed under
         Rule 424 under the Securities Act or any amendments or supplements
         thereto) or arise out of or are based upon the omission or alleged
         omission to state therein a material fact required to be stated therein
         or necessary to make the statements therein not misleading, in each
         case to the extent, but only to the extent, that such untrue statement
         or alleged untrue statement or omission or alleged omission was made in
         such registration statement, preliminary or final prospectus, or
         amendments or supplements thereto, in reliance upon and in conformity
         with written information furnished by or on behalf of such Holder
         expressly for use in connection with such registration; and each such
         Holder shall reimburse any legal or other expenses reasonably incurred
         by the Company or any such director, officer, agent, underwriter or
         controlling Person (but not in excess of expenses incurred in respect
         of one counsel for all of them unless, in the reasonable judgement of
         an indemnified party, there is a conflict of interest with another
         indemnified party, in which case the indemnified parties may be
         represented by separate counsel) in connection with investigating or
         defending any such loss, claim, damage, liability or action; provided,
         however, that the indemnity agreement contained in this Section 11(b)
         shall not apply to amounts paid in settlement of any such loss, claim,
         damage, liability or action if such settlement is effected without the
         consent of such Holder (which consent shall not be unreasonably
         withheld), and provided further that the liability of each Holder
         hereunder shall be limited to the proportion of any such loss, claim,
         damage, liability or expense which is equal to the proportion that the
         net proceeds from the sale of the shares sold by such Holder under such
         registration statement bears to the total net proceeds from the sale of
         all securities sold thereunder, but not in any event to exceed the net
         proceeds received by such Holder from the sale of Registrable Stock
         covered by such registration statement.

                  (c) Promptly after receipt by an indemnified party under this
         Section 11 of notice of the commencement of any action, such
         indemnified party shall, if a claim in respect thereof is to be made
         against any indemnifying party under this Section, notify the
         indemnifying party in writing of the commencement thereof and the
         indemnifying party shall have the right to participate in and assume
         the defense thereof with counsel

<PAGE>

                                       15

         selected by the indemnifying party and reasonably satisfactory to the
         indemnified party; provided, however, that an indemnified party shall
         have the right to retain its own counsel, with all fees and expenses
         thereof to be paid by such indemnified party (except as provided in
         paragraph (a) and (b) above), and to be apprised of all progress in any
         proceeding the defense of which has been assumed by the indemnifying
         party. The failure to notify an indemnifying party promptly of the
         commencement of any such action shall only release the indemnifying
         party from any of its obligations under this Section 11 if, and only to
         the extent that, such indemnifying party is materially prejudiced by
         such failure, but the omission to so notify the indemnifying party will
         not relieve it of any liability that it may have to any indemnified
         party otherwise than under this Section.

                  (d) To the extent any indemnification by an indemnifying party
         is prohibited or limited by law, the indemnifying party, in lieu of
         indemnifying such indemnified party, shall contribute to the amount
         paid or payable by such indemnified party as a result of such losses,
         claims, damages or liabilities in such proportion as is appropriate to
         reflect the relative fault of the indemnifying party and indemnified
         party in connection with the actions which resulted in such losses,
         claims, damages or liabilities, as well as any other relevant equitable
         considerations. The relative fault of such indemnifying party and
         indemnified party shall be determined by reference to, among other
         things, whether any action in question, including any untrue or alleged
         untrue statement of material fact or omission or alleged omission to
         state a material fact, has been made by, or relates to information
         supplied by, such indemnifying party or indemnified party, and the
         parties' relative intent, knowledge, access to information and
         opportunity to correct or prevent such action. The amount paid or
         payable by a party as a result of the losses, claims, damages or
         liabilities referred to above shall be deemed to include any legal or
         other fees or expenses reasonably incurred by such party in connection
         with any investigation or proceeding.

                  The parties hereto agree that it would not be just and
         equitable if contribution pursuant to this Section 11(d) were
         determined by pro rata allocation or by any other method of allocation
         which does not take account of the equitable considerations referred to
         in the immediately preceding paragraph. No Person guilty of fraudulent
         misrepresentation (within the meaning of Section 11(f) of the
         Securities Act) shall be entitled to contribution from any Person who
         was not guilty of such fraudulent misrepresentation.

                  12. Limitation on Registration Rights. Notwithstanding any
other provisions of this Agreement to the contrary, the Company shall not be
required to register any Registrable Stock under this Agreement with respect to
any demand or demands made by any Holder after 36 months after the date of this
Agreement.

<PAGE>

                                                        16

                  13. Lockup. Each Holder shall, in connection with any
registration of the Company's securities, upon the request of the Company or the
underwriters managing any underwritten offering of the Company's securities,
agree in writing not to effect any sale, transfer, disposition or distribution
of any Registrable Stock (other than that included in the registration) without
the prior written consent of the Company or such underwriters, as the case may
be, for such period of time not to exceed one hundred eighty (180) days from the
effective date of such registration as the Company or the underwriters may
specify; provided, however, that all executive officers and directors of the
Company shall also have agreed not to effect any sale, transfer, disposition or
distribution of any Registrable Stock under the circumstances and pursuant to
the terms set forth in this Section 13.

                  14. Assignment of Registration Rights. The registration rights
of any Holder under this Agreement with respect to any Registrable Stock may be
assigned to an Affiliate of such Holder, to any charitable organization as such
term is defined by Section 501(c)(3) of the Internal Revenue Code of 1986, as
amended through the date hereof, or to a charitable remainder trust as such term
is defined by Section 664(d) of the Internal Revenue Code of 1986, as amended
through the date hereof; provided, however, that (a) the assigning Holder shall
give the Company written notice at or prior to the time of such assignment
stating the name and address of the assignee and identifying the securities with
respect to which the rights under this Agreement are being assigned; (b) such
assignee shall agree in writing, in form and substance reasonably satisfactory
to the Company, to be bound as a Holder by the provisions of this Agreement; and
(c) immediately following such assignment the further disposition of such
securities by such assignee is restricted under the Securities Act. No
assignment of the registration rights of any Holder with respect to any
Registrable Stock in accordance with this Section 14 shall cause such
Registrable Stock to lose such status as Registrable Stock.

                  15. Binding Effect; Benefit. Subject to Section 14, this
Agreement shall be binding upon and shall inure to the benefit of the parties
hereto and their respective successors and assigns and nothing in this
Agreement, expressed or implied, is intended to confer on any Person other than
the parties hereto or their respective successors and assigns any rights,
remedies, obligations or liabilities under or by reason of this Agreement.

                  16. Governing Law; Jurisdiction and Service of Process. This
Agreement shall be governed by, and construed in accordance with, the laws of
the State of New York applicable to contracts executed in and to be performed in
that State. Any legal action or proceeding with respect to this Agreement which
is initiated by any Holder shall be brought in the courts of the State of
Florida located in Palm Beach County, Florida or the United States District
Court for the Southern District of Florida. Any legal action or proceeding with
respect to this Agreement which is initiated by the Company shall be brought in
the courts of the State of Utah located in Salt Lake City, Utah or the United
States District Court for the District of Utah. By execution and delivery of
this Agreement, each of the parties hereto

<PAGE>

                                       17

accepts for itself and in respect of its property, generally and
unconditionally, the jurisdiction of the aforesaid courts. Each of the parties
hereto irrevocably consents to the service of process of any of the
aforementioned courts in any such action or proceeding by the mailing of copies
thereof by certified mail, postage prepaid, to the party at its address set
forth in Section 19.

                  17. Counterparts. This Agreement may be executed and delivered
(including by facsimile transmission) in one or more counterparts, and by the
different parties hereto in separate counterparts, each of which when executed
and delivered shall be deemed to be an original but all of which taken together
shall constitute one and the same agreement.

                  18. Headings. The descriptive headings contained in this
Agreement are included for convenience of reference only and shall not affect in
any way the meaning or interpretation of this Agreement.

                  19. Notices. All notices, requests, claims, demands and other
communications hereunder shall be in writing and shall be given (and shall be
deemed to have been duly given upon receipt) by delivery in person, by cable,
telecopy upon written confirmation of receipt by the recipient, telegram or
telex or by registered or certified mail (postage prepaid, return receipt
requested) to the respective parties at the following addresses (or at such
other address for a party as shall be specified in a notice given in accordance
with this Section 19):

                  if to the Company:

                  Dycom Industries, Inc.
                  First Union Center,
                  Suite 500
                  4440 PGA Boulevard
                  Palm Beach Gardens, Florida  33410
                  Facsimile:  (561) 627-7709
                  Attention:   Mr. Marc R. Tiller

                  with a copy to:

                  Shearman & Sterling
                  599 Lexington Avenue
                  New York, New York  10022
                  Facsimile:  (212) 848-7179
                  Attention:  Richard  B. Vilsoet

<PAGE>

                                       18

In the case of a notice given to any of the Purchasers, such notice shall be
delivered or sent to the address set forth below such Purchaser's name on the
signature pages hereto and, in each case, with a copy of such notice to Jones,
Waldo, Holbrook & McDonough, P.C., 1500 First Interstate Plaza, 170 South Main
Street, Salt Lake City, Utah 84101, Attention: Glen D.
Watkins.

                  20. Amendments and Waivers. Any provision of this Agreement
may be amended or waived if such amendment or waiver is in writing and is
signed, in the case of an amendment, by the Holders of a majority of the
Registrable Stock and the Company, or in the case of a waiver, by the party
against whom the waiver is to be effective. No failure or delay by any party in
exercising any right, power or privilege hereunder shall operate as a waiver
thereof nor shall any single or partial exercise thereof preclude any other or
further exercise thereof or the exercise of any other right, power or privilege.

                  21. Severability. If any term or other provision of this
Agreement is invalid, illegal or incapable of being enforced by any rule of law,
or public policy, or is reasonably likely to jeopardize the treatment of the
Merger as a pooling of interests for accounting purposes, such term or
provision, as to such jurisdiction, shall be ineffective, all other conditions
and provisions of this Agreement shall nevertheless remain in full force and
effect so long as the economic or legal substance of the transactions set forth
in this Agreement is not affected in any manner materially adverse to any party
hereto. Upon such determination that any term or other provision is invalid,
illegal or incapable of being enforced, or that the treatment of the Merger as a
pooling of interests for accounting purposes is reasonably likely to be
jeopardized, the parties hereto shall negotiate in good faith to modify this
Agreement so as to effect the original intent of the parties as closely as
possible in a mutually acceptable manner in order that the transactions set
forth in this Agreement be consummated as originally contemplated to the fullest
extent possible.

                  22. Entire Agreement. This Agreement (including the schedule
hereto) constitutes the entire agreement among the parties with respect to the
subject matter hereof and supersedes all prior agreements and understandings
among the parties with respect thereto.

                  23. Attorneys' Fees. In the event that any party hereto shall
file suit to enforce any of the terms of this Agreement or to recover damages
for a breach of this Agreement, the prevailing party shall be entitled to
recover attorney's fees and costs incurred in such proceeding.

<PAGE>

                                       19

                  24. Waiver of Jury Trial. EACH OF THE COMPANY AND THE HOLDERS
HEREBY IRREVOCABLY WAIVES ALL RIGHT TO TRIAL BY JURY IN ANY ACTION, PROCEEDING
OR COUNTERCLAIM (WHETHER BASED ON CONTRACT, TORT OR OTHERWISE) ARISING OUT OF OR
RELATING TO THIS AGREEMENT OR THE ACTIONS OF THE COMPANY AND THE HOLDERS IN THE
NEGOTIATION, ADMINISTRATION, PERFORMANCE AND ENFORCEMENT THEREOF.

<PAGE>

                                       20

                  IN WITNESS WHEREOF, the parties hereto have executed this
Agreement as of the date first above written.

                                           DYCOM INDUSTRIES, INC.

                                           By /s/ Steven Nielsen
                                             --------------------------------
                                           Name:  Steven Nielsen
                                           Title: President and
                                                  Chief Executive Officer

                                           PURCHASERS:

                                               /s/  Guy L. Fugal
                                           ---------------------------------
                                           Name:    Guy L. Fugal
                                           Address: P.O. Box 650
                                                    Pleasant Grove, UT 84062

                                               /s/  Daniel B. Fugal
                                           ---------------------------------
                                           Name:    Daniel B. Fugal
                                           Address: P.O. Box 650
                                                    Pleasant Grove, UT 84062

<PAGE>

                                       21

                                   Schedule I

                      Ownership of Shares by the Purchasers
                      Immediately After the Effective Time

         Guy L. Fugal                                1,363,105 shares

         Daniel B. Fugal                             1,363,105 shares

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