Document:

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                                                                   EXHIBIT 10.10

                              EMPLOYMENT AGREEMENT

                                 BY AND BETWEEN

                      SAGE LIFE ASSURANCE OF AMERICA, INC.

                                       AND

                                TERRY ELEFTHERIOU

                                                     EFFECTIVE: November 1, 2002

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                              EMPLOYMENT AGREEMENT

                                TABLE OF CONTENTS

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1.    EMPLOYMENT........................................................................................    1
      1.1 General Duties and Title......................................................................    1
      1.2 Access of Executive to Audit Committees, Boards of Directors and Auditors.....................    2
      1.3 Full-Time Position............................................................................    2
2.    TERM..............................................................................................    2
3.    REMUNERATION......................................................................................    2
4.    WITHHOLDING.......................................................................................    3
5.    INSURANCE AND OTHER BENEFIT PLANS.................................................................    3
6.    VACATIONS.........................................................................................    3
7.    BUSINESS EXPENSES.................................................................................    4
8.    INDEMNIFICATION...................................................................................    4
9.    TERMINATION OF EMPLOYMENT.........................................................................    5
      9.1.A  Termination on Expiration of the Initial Term without Offer................................    5
      9.1.B  Termination on Expiration of the Initial Term with Offer...................................    6
      9.2 Termination by the Company for Cause..........................................................    7
      9.3 Definition of Cause...........................................................................    7
      9.4 Determination of For Cause Termination........................................................    8
      9.5 Termination by the Company Without Cause......................................................    8
      9.6 Termination by the Executive for Good Reason..................................................    9
      9.7 Voluntary Termination by the Executive........................................................   10
      9.8 Disability Termination........................................................................   10
      9.9 Termination Due to Executive's Death..........................................................   10
10.   RESTRICTIVE CONVENANTS; CONFIDENTIALITY; OWNERSHIP OF PROCEEDS OF EMPLOYMENT......................   11
      10.1 Solicitation of Employees; Customers; Agents or Representatives etc..........................   11
      10.2 Confidential Records.........................................................................   11
      10.3 Ownership of Proceeds of Employment..........................................................   12
      10.4 Survival.....................................................................................   12
      10.5 Enforceability; Remedies.....................................................................   12
11.   MISCELLANEOUS PROVISIONS..........................................................................   12
      11.1 Severability.................................................................................   12
      11.2 Execution in Counterparts....................................................................   13
      11.3 Notices......................................................................................   13
      11.4 Entire Agreement and Subsequent Amendments...................................................   14
      11.5 Applicable Law...............................................................................   14
      11.6 Headings.....................................................................................   14
      11.7 Binding Effect; Successors and Assigns.......................................................   14
      11.8 Waiver.......................................................................................   15
      11.9 Warranty and Capacity to Contract............................................................   15
      11.10   Arbitration...............................................................................   15
      11.11   Remedies..................................................................................   15
      11.12   Survival..................................................................................   16
      Exhibit A - Position Description
      Exhibit B - Benefits
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                              EMPLOYMENT AGREEMENT

THIS EMPLOYMENT AGREEMENT (the "Agreement") made and entered into this ______
day of November, 2002 and effective as of the 1st day of November, 2002 (the
"Effective Date") by and between Sage Life Assurance of America, Inc. (the
"Company"), a Delaware life insurance corporation, with its principal offices at
300 Atlantic Street, Stamford, Connecticut 06901 and Terry Eleftheriou an
individual currently residing at 2 Chuckanut Lane, Houston, Texas 77024
("Executive").

WITNESSETH THAT

WHEREAS, the Company desires to employ Executive in accordance with the terms of
this Agreement and Executive desires to be so employed by the Company;

WHEREAS, the parties desire to set forth the employment understanding and terms
and conditions of employment in a written agreement; and Executive wishes to
accept such employment upon the terms and subject to the conditions hereinafter
set forth;

NOW THEREFORE, in consideration of the mutual promises contained herein, the
parties hereto hereby agree as follows:

1.       EMPLOYMENT

         1.1 General Duties and Title

         On the Effective Date, the Company hereby employs Executive with the
         title/s designated in Exhibit A (the "Position Description") attached
         hereto and forming a part of this Agreement.

         Executive's primary responsibilities and duties are as described in
         Exhibit A. The primary responsibilities and duties of the Executive may
         be altered or amended by the mutual agreement of the Company and the
         Executive. Any modifications or alterations to the duties assigned to
         the Executive will be consistent with the education, background and
         experience of the Executive. Executive shall faithfully and diligently
         perform for the Company all such duties. Executive shall report to and
         take direction primarily from the Chief Executive Officer and the Board
         of Directors of the Company. Executive agrees to act in the capacity of
         a member or officer of such boards as he may be appointed without
         remuneration other than the remuneration to which Executive is
         otherwise entitled under this Agreement.

         Services rendered by Executive shall be rendered in accordance with
         recognized professional standards and recognized codes of conduct or
         ethics. Executive shall further promote and enhance the business
         purposes of the Company by entertainment and other means, including
         participation in professional organizations and activities, attendance
         at insurance or financial industry conventions and seminars, and
         membership in insurance or financial industry societies.

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         1.2 Access of Executive to Audit Committees, Boards of Directors and
         Auditors

         For the purpose of fulfillment of Executive's responsibilities to the
         Company and to those companies in addition to the Company, including
         Sage Insurance Group, Inc. ("SIGI") for which Executive is directed to
         perform any services, directly or indirectly, at all times during the
         Term of Employment, Executive shall have direct access to and contact
         with (i) each member of the Audit Committee of each such company, (ii)
         each member of the Board of Directors of the each such company and
         (iii) Ernst & Young, LLP and any other auditing or accounting firm that
         has performed or is performing external or internal audit services to
         the Company, SIGI and/or any other company for which Executive is
         directed to perform any services, directly or indirectly, including any
         consulting organization currently or formerly affiliated with any such
         auditing or accounting firm.

         1.3 Full-Time Position

         Executive during the Term will devote Executive's best efforts,
         attention and skills to the business and affairs of the Company on a
         full-time basis, and shall devote all of Executive's business time and
         effort to the performance of the duties hereunder.

2.       TERM

         The employment of Executive hereunder shall commence on the Effective
         Date and shall continue until April 30, 2003 or such earlier date as
         this Agreement is terminated as provided in Section 9 hereof.

3.       REMUNERATION

         The Company (or an affiliate acting on behalf of the Company) will pay
         to Executive as compensation for services to be rendered under Section
         1 hereof, the following amounts:

         (a)      Base Salary

                  A base salary ("Base Salary") of Ten Thousand Dollars
                  ($10,000) per week to be paid weekly at the end of each week
                  from the Effective Date hereof through and until April 30,
                  2003 (the "Term"). If Executive's employment by the Company
                  continues beyond the term hereof as provided for in Section
                  9.1.B, the Base Salary shall be as agreed by the parties,
                  payable semi-monthly in accordance with the Company's payroll
                  policies for its executive officers and reviewable annually in
                  March of each year, commencing with the first review being
                  conducted for the performance period beginning on May 1, 2003
                  and terminating March 31, 2004.

         (b)      Living Expenses

                  The Company shall provide the Executive with appropriate
                  living quarters in or proximate to Stamford, Connecticut,
                  meals, and use of an automobile for the Initial Term. Weekly
                  travel between Stamford, Connecticut and the Executive's
                  residence in Houston, Texas will be paid for by the Company.
                  Living expenses

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                  payable by the Company shall not exceed $8,500 per month,
                  cumulatively, during the Term. The Company requires the
                  full-time presence of Executive in Stamford, Connecticut for
                  the convenience of the Company. While the parties believe such
                  living expenses will not be deemed taxable income of the
                  Executive, if to any extent such living expenses are or become
                  taxable to Executive, the Company shall gross up the Base
                  Salary payable to Executive to equalize the value of such
                  living expenses had they not been taxable to Executive.

4.       WITHHOLDING

         Executive agrees that the Company shall withhold from any and all
         payments required to be made to Executive pursuant to this Agreement
         all actual or potential Federal, State, local and/or other taxes the
         Company determines are required or potentially will be required, to be
         withheld in accordance with applicable statutes and/or regulations from
         time to time in effect.

5.       INSURANCE AND OTHER BENEFIT PLANS

         Executive shall be entitled during the period of employment with the
         Company, to participate in (i) the life insurance and disability
         insurance plans available to executives of the Company, including such
         accidental death or other benefits as may be provided under such plans,
         and (ii) the health and dental and vision plans available to officers
         (and their immediate families) of the Company, or at the election of
         Executive, Executive may purchase individual family health and dental
         coverage for which the costs will be reimbursed by the Company in an
         amount not to exceed that otherwise paid by the Company under its own
         benefit plan, and (iii) such other employee benefit plans, including
         all employee welfare benefit plans and employee pension benefit plans,
         that currently are or will be made generally available to executives
         and salaried employees of the Company. Descriptions of the current
         benefit plans are set forth in Exhibit B. Participation by or inclusion
         of the Executive in any benefit plan maintained by the Company shall be
         provided only to the extent that the Executive is eligible under the
         terms and conditions of the applicable plan and, if required pursuant
         to the plan, the Executive meets any insurance underwriting or other
         conditions validly required by the provider or carrier of the plan or
         the contracts, policies, or other terms of eligibility or participation
         issued in connection with the plan.

6.       VACATIONS

         Executive shall be entitled to be absent from Executive's duties with
         the Company by reason of vacation and personal days for such periods as
         are consistent on a pro rata basis with the policy of the Company with
         respect to executive officers generally, which policy is more fully
         described in Exhibit B. In addition, the Executive shall be entitled to
         such national and religious holidays as generally approved by the
         Company.

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7.       BUSINESS EXPENSES

         The Company recognizes that, in connection with Executive's performance
         of his duties, functions and responsibilities hereunder, Executive will
         incur certain reasonable and necessary expenses. The Company agrees to
         promptly reimburse Executive for all such reasonable business expenses,
         which are incurred solely in connection with the Company's business,
         upon the presentation of statements setting forth the nature and amount
         of such expenses in reasonable detail, in accordance with the Company's
         generally applicable guidelines and procedures from time to time.

         To the extent that it is subsequently determined by the Company, using
         reasonable standards generally applicable to executive officers in like
         capacities, that any expense reimbursed by the Company to the Executive
         is not a reasonable or necessary business expense of the Company, and
         such determination is based upon false, misleading, incorrect or
         inadequate documentation supplied by the Executive, the Executive shall
         be liable to the Company for the amount of such excess reimbursement.

8.       INDEMNIFICATION

         The Company agrees to defend and indemnify the Executive against all
         liabilities and expenses, including amounts paid in satisfaction of
         judgments, in compromise or as fines and penalties, together with
         counsel fees in each case reasonably incurred in connection with the
         defense, disposition or investigation of any action, suit, claim or
         other proceeding, whether civil, criminal or regulatory, in which
         Executive may be involved or with which he may be threatened during the
         Employment Term or thereafter, in each case to the extent incurred by
         reason of his serving or having served (a) as an executive, consultant
         or officer of the Company, SIGI and/or any subsidiary or affiliate of
         either of them (collectively the "Group"), or (b) at its request as a
         consultant, Executive, officer or in any other capacity for the
         performance of services by the Executive to any organization within or
         without the Group. The Company shall use its best efforts to purchase
         or cause the purchase and maintenance in force during the Employment
         Term and at least one year thereafter directors and officers' liability
         insurance for the benefit of Executive and others with policy limits
         and other terms no less favorable to the insured than those currently
         in effect.

         The Company shall be obligated to pay the claims or expenses of the
         Executive required under this Section 8, including defense cost,
         directly to the third party to whom payment is due and owing, without
         the necessity of the Executive making such payment and seeking
         reimbursement from the Company.

         The Company shall not indemnify the Executive if a determination shall
         be made that the Executive, (i) failed to act in good faith or not in a
         manner the Executive reasonably believed to be in or not opposed to the
         best interests of the Company or (ii) with respect to any criminal
         action or proceeding, had reasonable cause to believe that the
         Executive's conduct was unlawful at the time thereof, as follows:

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         (a)      A committee of the independent members of the Board of
                  Directors of the Company shall first make a preliminary
                  written determination to the Company and the Executive.

         (b)      Within ten (10) business days of Executive's receipt of the
                  preliminary determination described above, Executive shall
                  either (i) accept such preliminary determination, in which
                  event such determination shall be final and binding upon the
                  parties or (ii) reject the preliminary determination.

         (c)      If the Executive shall reject the preliminary determination
                  described above, the parties shall submit the matter to
                  arbitration pursuant to Section 11.10 of this Agreement.

         Anything in the preceding paragraph to the contrary notwithstanding,
         the Company shall defend and indemnify the Executive as provided by
         this Section 8 unless and until there shall be a final determination
         that the Company is not required to do so. In the event of any such
         final determination, the Executive shall reimburse the Company within
         sixty (60) days from demand therefor such amounts as the Company shall
         have expended to defend and indemnify the Executive against matters
         found to be outside the scope of the Company's obligations under this
         Section 8.

         The provisions of this Section 8 shall survive the termination or
         expiration of Executive's employment under this Agreement irrespective
         of the reason for such termination.

9.       TERMINATION OF EMPLOYMENT

         9.1.A Termination on Expiration of the Initial Term without Offer

         If upon the expiration of this Agreement, the Company has not offered
         the Executive in writing an employment agreement providing at least
         those basic terms set forth in Section 9.1.B, this Agreement shall
         terminate.

         In the event that Executive's employment is so terminated or altered
         under this Section 9.1.A, Executive shall be entitled to receive:

         (a) Payments for twenty six (26) weeks of the current Base Salary, paid
             in accordance with the executive officer payroll policy of the
             Company at the time of termination;

         (b) Accrued vacation and personal days; and

         (c) Accrued business expenses pursuant to Section 7 not previously
             reimbursed.

         In addition to the above payments if permitted under the appropriate
         plan documentation and if allowed by law, all health, dental and life
         insurance coverage provided to executive under the Executive benefit
         plans will be extended for such period as the Company is obligated to
         make Base Salary payments to Executive in terms of this Section or, if
         longer, as required by otherwise applicable law, unless

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         Executive becomes covered by other employer plans. If coverage
         extensions are not permitted by law or under the plans, the Company
         shall pay to the Executive periodic bonuses equal to the insurance
         premium cost, which would have been required as if the Executive were
         covered under the plan.

         9.1.B. Termination on Expiration of the Initial Term with Offer

         If upon the expiration of this Agreement, the Company has offered the
         Executive in writing an employment agreement providing at least the
         basic terms set forth below and Executive declines to accept such
         offer, this Agreement shall terminate.

         In the event that Executive's employment is so terminated under this
         Section, Executive shall be entitled to receive:

         a)  Accrued vacation and personal days; and

         b)  Accrued business expenses pursuant to Section 7 not previously
             reimbursed.

         In addition to the above payments if permitted under the appropriate
         plan documentation and if allowed by law, all health, dental and life
         insurance coverage provided to executive under the Executive benefit
         plans will be extended for such period as the Company is obligated to
         make Base Salary payments to Executive in terms of this Section or, if
         longer, as required by otherwise applicable law, unless Executive
         becomes covered by other employer plans. If coverage extensions are not
         permitted by law or under the plans, the Company shall pay to the
         Executive periodic bonuses equal to the insurance premium cost, which
         would have been required as if the Executive were covered under the
         plan.

         The minimum basic terms for an offer of employment agreement pursuant
         to this Section 9.1 B shall be as follows:

         (i)      A term of not less than one year commencing May 1, 2003.

         (ii)     Base Salary at the rate of not less than $300,000 per annum
                  payable pursuant to the Company's payroll policies for
                  executive officers.

         (iii)    Living Expenses for the months of May, June and July 2003 as
                  set forth in Section 3 (b) herein.

         (iv)     The reasonable costs of Executive and his immediate family
                  relocating from Houston, Texas to the greater Stamford,
                  Connecticut area including, but not limited to (a) the real
                  estate brokerage commission, legal and other expenses of
                  selling Executive's home in Houston, Texas; (b) the costs of
                  packing, transporting and, if appropriate, and storage of the
                  furniture, furnishings and belongings of Executive and his
                  family, including automobiles, until a new permanent residence
                  is available for occupation; (c) the costs associated with the
                  purchase of a new home including loan origination fees, legal
                  expenses, title insurance, surveys and inspection reporting
                  costs of home purchase but excluding discount points on

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                  mortgage financing; (d) the duplicate costs of housing in the
                  event that a new home is purchased in the greater Stamford
                  area prior to the house in Houston being sold; and (e) the
                  fees of professional relocation facilitators to assist
                  Executive with locating suitable residence in or around
                  Stamford, Connecticut and related services.

         (v)      The aggregate of the costs under (iii) and (iv) of this
                  Section 9.1.B., paid or reimbursed to Executive shall not
                  exceed the sum of (a) $129,000 and (b) the difference, if any,
                  between $51,000 and the Executive's total living expenses paid
                  by the Company pursuant to Section 3 (b), together with such
                  additional amount necessary to gross up the Base Salary
                  payable to Executive to equal the taxes payable by Executive
                  on those portions of Company paid expenses that are taxable to
                  the Executive arising from the aforementioned sections.

         (vi)     Provisions substantially equivalent to Section 1.1, 1.2, 4, 5,
                  6, 7, 8, 9.2, 9.3, 9.4, 9.5, 9.6, 9.7, 9.8, 9.9, 10, 11,
                  Exhibit A and Exhibit B hereof and the entitlement of the
                  Executive to participate in the Company's Short and Long Term
                  Incentive Bonus Plans subject to all terms, conditions and
                  qualifications thereof.

         9.2 Termination by the Company for Cause

         In the event that Executive is removed from office by the Company for
         cause (as hereinafter defined), the employment of Executive under this
         Agreement shall terminate and Executive shall be entitled to receive
         only the Base Salary for the period to the date of such removal.

         No other or further payment of benefits under this Agreement will be
         due upon Termination for Cause, except as required by law, or under the
         Company's insurance and other employee benefit plans and the procedures
         referred to in Sections 5 and 7.

         9.3 Definition of Cause

         For purposes of this Agreement, the term "cause" shall mean (i) any
         willful material neglect by Executive, or material failure by Executive
         to perform the duties and responsibilities of the Executive's office or
         offices (other than any such failures resulting from Executive's
         incapacity due to illness or injury), or (ii) any malfeasance or gross
         misconduct by Executive in connection with the performance of any of
         the duties or responsibilities or otherwise which would, in the view of
         a reasonable person, be materially prejudicial to the interests of the
         Company or any of its affiliates if Executive were retained in the
         respective office or offices, including without limitation, conviction
         of a felony, or (iii) actual indictment for, or formal admission to a
         felony or crime of moral turpitude, dishonesty, breach of trust or
         unethical business conduct or any crime involving the Company, or (iv)
         repeated material failure to adhere to the policies and directions of
         the Board of Directors, or failure to devote all of Executive's
         business time and efforts to the business of the Company and the duties
         and responsibilities hereunder, and with respect to subparts(i) or (ii)
         or (iv) of this Section 9.3, there has been a failure to cure such
         breach or a failure to modify

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         Executive's conduct within 30 days of receiving written notice of such
         breach specifying the factual reasons supporting the proposed dismissal
         for cause.

         9.4 Determination of For Cause Termination

         A determination of a for cause termination shall be made by the Company
         as follows:

         (a) The Chief Executive Officer and/or the Chairman of the Company
             shall first make a preliminary determination that the Executive
             should be reviewed for discharge for cause. The Company will not be
             required to provide any preliminary notice to the Executive of its
             intention to investigate the possible discharge of the Executive
             for cause.

         (b) After investigating the circumstances surrounding the possible for
             cause termination of the Executive, the Company, through its Chief
             Executive Officer, may immediately relieve or suspend the Executive
             by providing notice to the Executive. Upon notice of the
             suspension, the Executive shall immediately vacate the premises and
             remove all personal property from the premises of the Company. The
             Company shall have the absolute right to review any and all
             material in the possession of the Executive on the Company premises
             to determine those items, which are proprietary to the Company.
             After sorting the appropriate items, all personal items shall be
             delivered to the Executive at the location designation reasonably
             selected by the Executive.

         (c) After concluding its investigation, the Company, through the Chief
             Executive Officer and/or the Chairman of the Company, shall make a
             determination whether the Executive should be discharged for cause.
             The determination for discharge for cause shall be timely
             communicated in writing, to the Executive.

         9.5 Termination by the Company Without Cause

         The Company expressly reserves the right to terminate the employment,
         or materially reduce the responsibilities, of Executive at any time for
         no reason or for any reason.

         In the event that Executive's employment is so terminated or altered
         under this Section, Executive shall be entitled to receive:

         (a) Payments for twenty six (26) weeks of the current Base Salary, paid
             in accordance with the executive officer payroll policy of the
             Company at the time of termination;

         (b) Accrued vacation and personal days; and

         (c) Accrued business expenses pursuant to Section 7 not previously
             reimbursed.

         In addition to the above payments if permitted under the appropriate
         plan documentation and if allowed by law, all health, dental and life
         insurance coverage provided to Executive under the Executive benefit
         plans will be extended for such period as the Company is obligated to
         make Base Salary payments to Executive in terms of this Section, or, if
         longer, as required by otherwise applicable law, unless

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         Executive becomes covered by other employer plans. If coverage
         extensions are not permitted by law or under the plans, the Company
         shall pay to the Executive periodic bonuses equal to the insurance
         premium cost, which would have been required as if the Executive were
         covered under the plan.

         Any unvested employer contributions attributable to Executive under any
         pension plan, shall be accelerated and deemed vested as of the date of
         termination of employment without cause. If the acceleration of vesting
         is not permitted by law or under the terms of the plan, the Company
         shall, in lieu of accelerated vesting, pay a bonus to the Executive in
         the amount of the account forfeiture under the plan.

         9.6 Termination by the Executive for Good Reason.

         Termination by the Executive for Good Reason shall mean termination of
         the Executive's employment by the Executive as a result of (i) the
         assignment to the Executive of any duties inconsistent in any
         substantial respect with the Executive's position, authority or
         responsibility or any substantial change in any such position,
         authority or responsibility including title; (ii) any failure by the
         Company to comply with the terms of this Agreement or any other term of
         the Executive's employment (other than any insubstantial or inadvertent
         failure remedied promptly after receipt of notice from the Executive);
         (iii) any failure by the Company to diligently implement such policies,
         programs and systems as Executive, with the concurrence of the
         Company's auditors and the Company's Audit Committee, determines are
         necessary to prevent or correct "material weakness", as such term is
         used in auditing standards, in the financial and internal controls of
         the Company, its subsidiary, SIGI and any subsidiary, parent or
         affiliates of any of them for which the Executive is requested to
         perform any services hereunder, provided such failure is not
         attributable to the actions, inactions or other terms defined under
         "cause" above, by the Executive; (iv) any material reduction in salary
         or other compensation provided herein; (v) a requirement that the
         Executive be based at an office located more than 50 miles from the
         City of Stamford, Connecticut; (vi) any failure by the Company to
         obtain the assumption and agreement of any successor to perform this
         Agreement as contemplated herein.

         In the event that Executive's employment is so terminated or altered
         under this Section, Executive shall be entitled to receive:

         (a) Payments for twenty six (26) weeks of the current Base Salary, paid
             in accordance with the executive officer payroll policy at the time
             of termination;

         (b) Accrued vacation and personal days; and

         (c) Accrued business expenses pursuant to Section 7 not previously
             reimbursed.

         In addition to the above payments if permitted under the appropriate
         plan documentation and if allowed by law, all health, dental and life
         insurance coverage provided to Executive under the Executive benefit
         plans will be extended for such period as the Company is obligated to
         make weekly Base Salary payments to Executive in terms of this Section,
         or, if longer, as required by otherwise applicable

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         law, unless Executive becomes covered by other employer plans. If
         coverage extensions are not permitted by law or under the plans, the
         Company shall pay to the Executive periodic bonuses equal to the
         insurance premium cost, which would have been required as if the
         Executive were covered under the plan.

         9.7 Voluntary Termination by the Executive

         Executive shall be entitled, with not less than one (1) month's written
         notice, to voluntarily terminate employment with the Company. If
         Executive elects such termination, Executive shall be entitled to
         receive the Executive's monthly Base Salary defined under Section 3 and
         benefits defined under Section 5 until the end of such notice period.
         Executive shall also be entitled to exercise any vested rights under
         Sections 5 and 6.

         Even though the Executive is required to give not less than one (1)
         month's advance written notice, the Company shall have the option to
         require that the Executive discontinue service on behalf of the Company
         at any time upon receipt of advance written notice of the Executive's
         election to terminate; provided, however, that in such event the
         Company shall be required to continue the Base Salary and benefit
         payments through the one (1) month notice period.

         9.8 Disability Termination

         The Executive's employment shall terminate if the Executive becomes so
         disabled as to be unable to substantially perform the services of
         character contemplated by this Agreement, and such disability continues
         for a period of ninety (90) consecutive days. The Executive's
         employment shall terminate at the conclusion of the 90-consecutive day
         disability. In such event, the Executive shall be entitled to receive
         the Executive's Base Salary defined under Section 3 and benefits
         defined under Section 5 until the end of the 90-consecutive day
         disability period. Executive shall also be entitled to exercise any
         vested rights under Sections 5 and 6.

         For purposes of this Agreement the term "disability" or "disabled"
         shall mean a physical or mental condition resulting in a bodily injury
         or disease or mental disorder which renders the Executive incapable of
         engaging in substantial gainful activity of the character contemplated
         by this Agreement and which can be expected to be of a long and
         continued duration. The disability of the Executive shall be determined
         by the Board based upon competent medical authority. The determination
         of a disability may be made by the Board independent of such
         determination being made under any other disability insurance plan
         sponsored or funded by the Company.

         9.9 Termination Due to Executive's Death

         This Agreement shall terminate if the Executive shall die, in which
         event the Executive's estate or personal representative shall not be
         entitled to continue to receive Base Salary payments permitted under
         Section 3 or other benefits permitted under this Agreement, other than
         the Base Salary for the period until death, benefits payable under the
         Company life insurance policies as provided in Exhibit B, and those

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         benefit continuation requirement imposed as a matter of law. With
         respect to other benefit entitlement under the bonus plan or other
         similar plans, the Executive's estate shall only be permitted to such
         rights or benefits as otherwise provided in those plan documents.

10.      RESTRICTIVE CONVENANTS; CONFIDENTIALITY; OWNERSHIP OF PROCEEDS OF
         EMPLOYMENT

         10.1 Solicitation of Employees; Customers; Agents or Representatives
         etc.

         Executive agrees that, during the term of employment hereunder, and for
         a period of one (1) year after the Company no longer employs Executive,
         Executive shall not, directly or indirectly:

         (a)      solicit, entice, persuade or induce any individual who is then
                  or has been within the preceding six-month period, an employee
                  of the Company or any of its subsidiaries or affiliates, to
                  terminate his or her employment with the Company or any of its
                  subsidiaries or affiliates, or to become employed by or enter
                  into contractual relations with any other individual or
                  entity, and the Executive shall not approach any such employee
                  for any such purpose or authorize or knowingly approve the
                  taking of any such actions by any other individual or entity;
                  or,

         (b)      except in accordance with Executive's duties hereunder,
                  solicit, entice, persuade or induce any individual or entity
                  which is then, or has within the preceding twelve month period
                  been, a customer, distributor or supplier, or policy owner,
                  agent or representative of the Company or its subsidiaries or
                  affiliates to terminate or materially reduce his, her or its
                  contractual or other relationship with the Company or any of
                  its subsidiaries or affiliates, and the Executive shall not
                  approach any such customer, distributor, supplier, policy
                  owner, agent or representative for such purpose or authorize
                  or knowingly approve the taking of any such actions by any
                  other individual or entity.

         10.2 Confidential Records

         In the course of employment, Executive will have access to confidential
         information, records, data, specifications, and other knowledge owned
         by the Company or its subsidiaries or affiliates. Executive agrees that
         at no time during or after the term of employment shall the Executive
         remove or cause to be removed from the premises of the Company or its
         subsidiaries or affiliates, any record, file, memorandum, document,
         equipment or like item relating to the business of the Company or its
         subsidiaries or affiliates except in furtherance of Executive's duties
         hereunder, and immediately following the termination of Executive's
         employment hereunder or at any other time at the request of the Board
         of Directors, all such records, files, memoranda, documents, equipment
         and like items then in Executive's possession will promptly be returned
         to the Company. Executive further agrees that, during and after the
         term of employment, Executive shall not without the written consent of
         the Company or a person authorized thereby, disclose to any person,
         other than an employee of the Company its subsidiaries or affiliates or
         a person to whom disclosure

                                       11

<PAGE>

         is reasonably necessary or appropriate in connection with the
         performance by Executive of duties as an executive of the Company, any
         confidential information obtained by Executive while in the employ of
         the Company with respect to any business methods, plans, policies,
         products and/or personnel of the Company or its subsidiaries or
         affiliates, the disclosure, including speaking with the press, of which
         would, in the view of a reasonable person, be injurious or damaging to
         the business of the Company or its subsidiaries, or affiliates,
         provided, however, that confidential information shall not include any
         information known generally to the public (other than as a result of
         unauthorized disclosure by Executive), or any information of a type not
         otherwise considered confidential by persons engaged in the same
         business or a business similar to that conducted by the Company.

         10.3 Ownership of Proceeds of Employment

         Executive acknowledges that the Company shall be the sole owner of all
         the fruits and proceeds of the Executive's services hereunder,
         including without limitation all ideas, concepts, formats, suggestions,
         developments, arrangements, designs, packages, programs, promotions and
         other properties relating to the businesses of the Company, which
         Executive may create in connection with and during the term of
         employment hereunder, free and clear of any claims by the Executive of
         any kind or character whatsoever (other than Executive's right to
         compensation and benefits hereunder).

         10.4 Survival

         The provisions of this Section 10 shall survive any termination or
         expiration of Executive's employment under this Agreement, irrespective
         of the reason therefore.

         10.5 Enforceability; Remedies

         The parties hereto agree that a breach by Executive of any of the
         provisions of Section 10. hereof will cause the Company great and
         irreparable injury and damage. By reason of this, Executive
         acknowledges that, in the event of a breach by Executive of any of the
         provisions of Section 10 hereof, the Company shall be entitled, in
         addition and as a supplement to any other rights or remedies it may
         have at law, to the remedies of injunction, specific performance and
         other equitable relief. This section 10 shall not, however, be
         construed as a waiver of any of the rights which the Company may have
         for damages or otherwise.

11.      MISCELLANEOUS PROVISIONS

         11.1 Severability

         Executive acknowledges and agrees that (i) Executive has had an
         opportunity to seek advice of counsel in connection with this agreement
         and (ii) the Restrictive Covenants are reasonable in temporal and
         geographic scope and in all other respects. If in any jurisdiction any
         term or provision hereof is determined to be invalid or unenforceable,
         (a) the remaining terms and provisions hereof shall be unimpaired, (b)
         any such invalidity or unenforceability in any jurisdiction shall not
         invalidate or

                                       12

<PAGE>

         render unenforceable such provision in any other jurisdiction, and the
         remaining provisions hereof shall be given full force and effect
         without regard to the invalid portions. The Employer and the Executive
         intend to and hereby confer jurisdiction to endorse the Restrictive
         Covenants upon the Courts of any jurisdiction within the geographical
         scope of the covenants.

         11.2 Execution in Counterparts

         This Agreement may be executed in one or more counterparts, and by the
         different parties hereto in separate counterparts, each of which shall
         be deemed to be an original but all of which taken together shall
         constitute one and the same agreement (and all signatures need not
         appear on any one counterpart), and this Agreement shall become
         effective when one or more counterparts has been signed by each of the
         parties hereto and delivered to each of the other parties hereto.

         11.3 Notices

         Any notice or other communication in connection with this Agreement
         shall be deemed to be delivered if in writing (or in the form of a fax)
         addressed as provided below and if either (a) actually delivered at
         said address, or (b) in the case of a letter, three business days shall
         have elapsed after the same shall have been deposited in the US mail,
         postage prepaid and registered or certified, and (c) in the case of
         fax, one business day shall have elapsed after dispatch.

         If to the Company, to it at the following address:

                           Sage Life Assurance of America, Inc.
                           300 Atlantic Street
                           Suite 302
                           Stamford
                           CONNECTICUT 06901
                           FAX (203) 324-6173
                           Attention: Chief Executive Officer

         with a copy to:
                           Sage Life Assurance of America, Inc.
                           300 Atlantic Street
                           Suite 302
                           Stamford
                           CONNECTICUT 06901
                           FAX (203) 324-6173
                           Attention: Secretary

                           Sage Group Limited, S.A.
                           P.O. Box 7755
                           10 Fraser Street
                           Johannesburg 2000
                           Republic of South Africa
                           FAX 011 2711 834 2107
                           Attention: Chairman, Sage Life Assurance of America,
                           Inc.

                                       13

<PAGE>

         or at such other address as the Company shall have specified by written
         notice actually received by the addresser.

         If to Executive, to Executive at the address provided in the preamble
         with a copy to Executive at The Classic, Apt. 11E, 25 Forest Street,
         Stamford, Connecticut 06901 or at such other address as Executive shall
         have specified by written notice actually received by the addresser.

         11.4 Entire Agreement and Subsequent Amendments

         This Agreement constitutes the entire agreement between the Company and
         Executive relating to Executive's employment and supersedes all prior
         agreements and understandings of the parties hereto, whether oral or
         written with respect to the subject matter herein. However, the
         consulting agreement relating to services by the Employee to SIGI as
         same may have been amended, is not superseded hereby but expressly
         continues to apply up to the date hereof and, only upon this Agreement
         becoming effective, any such consulting agreement shall hereby be
         terminated by the mutual agreement of the parties thereto.

         This Agreement may be amended or altered only by the written agreement
         of the Company and Executive.

         11.5 Applicable Law

         This Agreement shall be governed by and construed in accordance with
         the laws of the State of Connecticut without regard to principles of
         conflict of law.

         11.6 Headings

         The descriptive headings of the several sections of this Agreement are
         inserted for the sole purpose of convenience of reference, and do not
         constitute part of this Agreement or in any way limit or affect the
         meaning or interpretation of any of the terms or provisions of this
         Agreement.

         11.7 Binding Effect; Successors and Assigns

         This Agreement shall be binding upon and shall inure to the benefit of:

         (a)      the Company and its successors and assigns; and

         (b)      Executive and to the benefit of Executive's heirs, executors,
                  administrators and legal representatives. Executive's duties
                  and obligations hereunder are personal and shall not be
                  assignable or delegable in any manner whatsoever.

         The Company may assign the obligations under this Agreement (subject to
         a right of recourse by Executive to the Company in the event of any
         default under the obligations to Executive hereunder), to an affiliate
         or to any intermediate parent of the Company.

                                       14

<PAGE>

         11.8 Waiver

         The failure of either of the parties hereto at any time, to enforce any
         of the provisions of this agreement shall not be deemed or construed to
         be a waiver of any such provision, nor to in any way affect the
         validity of this agreement or any provision hereof or the right of
         either of the parties hereto, to thereafter enforce each and every
         provision of this Agreement. No waiver of any breach of any of the
         provisions of this Agreement shall be effective unless set forth in a
         written instrument executed by the party against whom or which
         enforcement of such waiver is sought, and no waiver of any such breach
         shall be construed or deemed to be a waiver of any other or subsequent
         breach.

         11.9 Warranty and Capacity to Contract

         The Company and Executive hereby represent and warrant to the other
         that:

         (a) they have full power and authority to execute this Agreement, and
         to perform their respective obligations hereunder;

         (b) such execution, delivery and performance will not (and with the
         giving of notice or lapse of time or both would not) result in any
         breach of any agreements or other obligations to which Executive or the
         Company is otherwise bound; and

         (c) this Agreement is a valid binding obligation on Executive and the
         Company.

         11.10 Arbitration

         Except to the extent necessary for Executive or the Company to enforce
         rights under Section 8 above or for the Company to enforce its rights
         under Section 10 above, any case or controversy arising among the
         parties hereto under this Agreement, or the subject matter hereof,
         shall be settled by binding arbitration in Stamford, Connecticut under
         the then prevailing rules of the American Arbitration Association. The
         decision of the arbitrators shall be final and binding and the party
         against whom the award is rendered ("the non-prevailing party") shall
         be specifically instructed in any such award to pay all reasonable
         attorney's fees, disbursements of the prevailing party's legal counsel,
         arbitration costs, expenses and filing fees incurred by the prevailing
         party in the arbitration proceeding. The American Arbitration
         Association shall appoint three (3) arbitrators to preside at the said
         arbitration proceeding and the arbitrators will determine in their
         decision and award, which is the prevailing party, which is the
         non-prevailing party, the amount of the fees and expenses of the
         prevailing party and the amount of the arbitration expenses. The
         arbitrators will render their award, upon the concurrence of at least
         two (2) of their number, no later than thirty (30) days after the
         conclusion of the arbitration proceedings. Judgment may be entered on
         the award of the arbitrators and may be enforced in any court of
         competent jurisdiction.

         11.11 Remedies

         All remedies hereunder are cumulative, are in addition to any other
         remedies provided by law and may be exercised concurrently or
         separately, and the exercise of any one remedy shall not be deemed to
         be an election of such remedy exclusively or

                                       15

<PAGE>

         to preclude the exercise of any other remedy. No failure or delay in
         exercising any right or remedy shall operate as a waiver thereof or
         modify the terms of this Agreement.

         11.12 Survival

         Anything contained in this Agreement to the contrary notwithstanding,
         the provisions of Section 8, Section 9, and Section 10 and the other
         provisions of this Section 11 (to the extent necessary to effectuate
         the survival of Section 11) shall survive termination of this Agreement
         and any termination of Executive's contract hereunder.

IN WITNESS WHEREOF, this Agreement has been executed and delivered by the
parties hereto as of the date first written above.

Executive:                                       SAGE LIFE ASSURANCE OF AMERICA,
                                                 INC.

/s/ Terry Eleftheriou                            By: /s/ Robin I. Marsden
---------------------                                --------------------------
Terry Eleftheriou                                    Name:  Robin I. Marsden
                                                     Title: President and CEO

                                       16

<PAGE>

                        EXHIBIT A - POSITION DESCRIPTION

TITLES:           Chief Financial Officer, Sage Life Assurance of America, Inc.
                  Chief Financial Officer, Sage Insurance Group, Inc.

REPORTING LINES:  CEO, Sage Life Assurance of America, Inc.
                  CEO, Sage Insurance Group, Inc.

RESPONSIBILITIES AND DUTIES WITH REGARD TO COMPANIES MANAGED BY EXECUTIVE

Responsible for leading and managing the financial function of the above listed
companies and their subsidiaries (the "Sage US Group"), and acting as an advisor
to executive management on financial matters impacting the Sage US Group.
Executive will be responsible for managing the day-to-day financial operations
including planning and budgeting, external and internal financial reporting,
regulatory reporting, treasury and cash management, investment management and
tax aspects of the businesses of the Sage US Group.

                                       17

<PAGE>

                              EXHIBIT B - BENEFITS

                           SAGE INSURANCE GROUP, INC.          [SAGE LETTERHEAD]

                                  OFFICER LEVEL

MAJOR MEDICAL provided by Anthem Blue Cross/Blue Shield. Effective 1st of the
month after date of hire. Company pays 75% - employee pays 25%.

DENTAL provided by The Guardian. Effective 1st of the month after date of hire.
Company pays 75% - employee pays 25%.

VISION PLAN provided by Employers Vision Trust. Effective 1st of month after 30
days of employment. Small co-pay on annual eye exams - discounts on lenses,
including contact lenses, discounts on laser surgery - 100% paid by Company.

GROUP TERM LIFE provided by The Guardian. Effective 1st of month after date of
hire - 3x annual compensation to $750,000 - guaranteed issue of first $400,000,
simplified issue of remaining $350,000 - 100% paid by Company.

EXCESS LIFE TO COVER OVER $750,000 - Personal policy paid for by Company (using
standard rates) through Northwestern Mutual Life. Employee is owner.

ACCIDENTAL DEATH AND DISMEMBERMENT provided by The Guardian. Effective 1st of
month after date of hire - 3x annual guaranteed compensation to plan maximum of
$1,000,000 - 100% paid by company.

RETIREMENT PLAN - 10.5% company contribution of base annual salary to IRS cap of
considered compensation ($200,000) (Principal - 17 Investment Options). 10.5%
company contribution on base annual salary in excess IRS compensation cap - paid
into deferred compensation plan (Rabbi trust), investments self directed through
deferred compensation Schwab account. 1 year waiting period - 3 yr. Cliff
vesting.

401(k) SAVINGS - can defer 15% of compensation up to IRS cap of $11,000. -
Employee contributions only (no company match). Immediately eligible upon hire -
(Principal - 17 Investment Options).

SHORT TERM DISABILITY - 90 day salary continuance - paid for by the Company.

LONG TERM DISABILITY provided by The Guardian - 90-day elimination period -
66.67% of monthly compensation to maximum benefit of $12,000 per month - paid
for by the Company

EXCESS LONG TERM DISABILITY - Personal policy to fulfill 66.67% salary which
exceeds $12,000. per month. (Northwestern Mutual Life).

PAID TIME OFF - VP and above receive 27 days per year (2.25 days monthly
accrual) - carry forwards allowed for extended leave or cash out. Must take
minimum of 2 weeks per year.

                                       18

<PAGE>

HOLIDAYS - 9 paid holidays per annum, following Holiday Schedule of the NYSE.

DISCRETIONARY SHORT TERM INCENTIVE BONUS - At the discretion of the Board of
Directors, Short Term Incentive Bonus payments may be made based on overall
achievement of the company, personal performance and the attainment of personal
goals and objectives.

NYSC MEMBERSHIP - Interested CT employees may participate in annual membership
at New York Sports Club (fitness center) - reduced rate of $50 per month.

PARKING CARD or METRO NORTH TRANSIT DISCOUNT COUPON: Employee's choice, value is
$65. per month.

                                       19<PAGE>

                                                                   EXHIBIT 10.11

                             COST SHARING AGREEMENT

                  This Cost Sharing Agreement is hereby entered into as of the
19th day of November, 1997, with effect at the date referred to in Section VII
hereof, by and between SAGE INSURANCE GROUP INC., a corporation organized and
existing under the laws of the State of Delaware with corporate offices at 300
Atlantic Street, Suite 302, Stamford, Connecticut 06901(hereinafter referred to
as the "Parent") and SAGE LIFE ASSURANCE OF AMERICA, INC., a corporation
organized and existing under the laws of the State of Delaware with corporate
offices at 300 Atlantic Street, Suite 302, Stamford, Connecticut 06901
(hereinafter referred to as the "Life Company") which is a wholly owned
subsidiary of the Parent.

                                R E C I T A L S:

                  WHEREAS, Parent provides or intends to provide the Life
Company with office space, office equipment, and related office services;

                  WHEREAS, each party employs certain individuals who may
occasionally furnish incidental services to the other;

                  WHEREAS, Parent and Life Company wish to enter into a formal
cost sharing agreement with regard to the foregoing items;

                  WHEREAS, the Life Company is a Delaware domiciled life
insurance company and the Parent is part of the Life Company's  holding company
system so that applicable Delaware law requires

<PAGE>

that the terms of any cost sharing agreement between them be submitted to the
Delaware Insurance Commissioner at least 30 days prior to the entry into any
transaction pursuant to such agreement.

                  WHEREAS, the parties hereto have agreed to the terms and
conditions set out in this Agreement and do hereby incorporate the recitals set
out herein as part of the Agreement.

                 NOW, THEREFORE, for and in consideration of the mutual promises
and covenants contained herein, the parties hereto agree as follows:

                                 I. OFFICE SPACE

                  Section 1.01. The Parent has entered into a lease for office
premises that are being used by the Life Company. In the future, the Parent may
enter into additional leases or acquire ownership of office space which will be
utilized by the Life Company. Such premises or space provided by the Parent to
the Life Company is hereinafter referred to as the "Office Space".

                  Section 1.02. The parties agree that at the end of each
calendar year the Parent shall charge the Life Company for the use of Office
Space based on a fair rental value for such space as allocated to the Life
Company use thereof.

                  Section 1.03. In determining such allocation, there shall be
taken into account the actual percentage area of the Office Space used for
operations of the Life Company and the percentage of time such office space is
utilized for operations of the Life Company. The parties shall maintain such
reasonable records as are necessary to support such allocations and the Life
Company agrees to abide by any allocation made by the Parent which is reasonable
and does not materially distort any item of income, expense,

                                                                               2

<PAGE>

capital expenditure, or capital gain for purposes of tax, financial or life
insurance statutory accounting.

                  Section 1.04. In determining fair rental values for Office
Space which is leased by the Parent the rentals paid or accrued by the Parent to
the landlord of the Office Space for the year in question shall be used. In
determining fair rental value for Office Space in which the Parent has an
ownership interest the rental charge to the Life Company  shall be the sum of
the depreciation for the Office Space allocable to the year as permitted under
the U.S Internal Revenue Code of 1986, as amended, plus the taxes, maintenance,
repairs, utility costs, management expenses, and other similar expenditures
connected with the Office Space paid or accrued by the Parent for such year, as
well as charges for services rendered in connection with any transfer of the
Office Space and other similar expenses connected with the possession, use or
occupancy of the Office Space by the Subsidiary and paid or accrued by the
Parent during the year, including capital expenditures incurred in any year to
the extent they may be properly amortized for such year.

                          II. TANGIBLE OFFICE EQUIPMENT

                  Section 2.01. The Parent has entered, or will enter, into
leases for and has acquired, or will acquire, ownership of various types of
office equipment, furniture and fixtures, including but not limited to office
furniture, office decorations and art, telephone systems, security systems,
computer hardware and software equipment or systems, and general office
equipment such as fax machines, photocopiers, and postage meters. Such items
provided by the Parent to the Life Company are hereinafter

                                                                               3

<PAGE>

referred to as the "Office Equipment".

                  Section 2.02. The parties agree that at the end of each
calendar year during the term of this Agreement the Parent shall charge the Life
Company for the use of Office Equipment based on a fair rental value for such
equipment as allocated to the Life Company use thereof.

                  Section 2.03. In determining such allocation, there shall be
taken into account the percentage of time such Office Equipment is utilized for
operations of the Life Company. The parties shall maintain such reasonable
records as necessary to support such allocations and the Life Company agrees to
abide by any allocation made by the Parent which is reasonable and does not
materially distort any item of income, expense, capital expenditure, or capital
asset for purposes of tax, financial or life insurance statutory accounting.

                  Section 2.04. In determining fair rental values for Office
Equipment which is leased by the Parent the rentals to paid or accrued by the
Parent to the lessor of the Office Equipment for the year in question shall be
used. In determining fair rental value for Office Equipment owned by the Parent
the rental charge to the Subsidiary shall be the sum of the depreciation for the
Office Equipment allocable to the year as permitted under the U.S Internal
Revenue Code of 1986, as amended, plus the taxes, maintenance, repairs, utility
costs, and other similar expenditures connected with the Office Equipment paid
or accrued by the Parent for such year, as well as charges for similar expenses
connected with the use of the Office Equipment by the Life Company and paid or
accrued by the Parent during the year, including capital expenditures incurred
for Office Equipment in any year to the extent they may be properly

                                                                               4

<PAGE>

amortized for such year.

                                  III. SERVICES

                  Section 3.01. Each party employs persons who may from time to
time perform management, clerical, administrative, technical or other services
for the benefit of the other party. Such services are hereinafter referred to as
the "Services". It is anticipated that the Services which will be rendered by
the Life Company's employees to the Parent will not be an integral part of the
business of the Life Company but rather only an incidental part of such
business.

                  Section 3.02. The parties agree that at the end of each
calendar year during the term of this Agreement each party shall charge the
other party for the Services based on the cost of the Services as allocated to
the use thereof.

                  Section 3.03. In determining such allocation, there shall be
taken into account the percentage of time the employees of each party spend in
providing Services to the other party. The parties shall maintain such
reasonable records as are necessary to support such allocations and each party
agrees to abide by any allocation made by the other party which is reasonable
and does not materially distort any item of income, expense, capital
expenditure, or capital gain for purposes of tax, financial or life insurance
statutory accounting.

                                 IV. OTHER ITEMS

                  Section 4.01. The parties recognize that other

                                                                               5

<PAGE>

accounting items in addition to those specifically treated above in this
Agreement ("Other Items") may arise calling for allocation between the Parent
and the Life Company.

                  Section 4.02. The parties agree that allocation of such items
will be made in accordance with Section 482 of the Internal Revenue Code of
1986, as amended, and the regulations promulgated thereunder.

                           V. MISCELLANEOUS PROVISIONS

                  Section 5.01. This Agreement and the Exhibits hereto contain
the entire understanding of the parties with respect to the subject matter
hereof and supersedes any prior oral or written understanding of the parties
with respect to such matters. No modification or amendment may be made except by
a written instrument signed by both parties.

                  Section 5.02. This Agreement is governed by and shall be
construed in accordance with the laws of the State of Connecticut. Venue for any
action brought to enforce any term or condition of this Agreement shall be
brought in Stamford, Connecticut.

                  Section 5.03. This Agreement may be amended from time to time
by the parties hereto; provided, however, any such amendment shall be evidenced
by written instrument that becomes attached to and made a part of this
Agreement.

                  Section 5.04. Should any portion of this Agreement be illegal,
invalid or unenforceable, the remaining portions of this Agreement shall be of
full force and effect as if the illegal, invalid or unenforceable portion were
severable and not a part of this Agreement.

                  Section 5.05. Nothing herein shall be construed to

                                                                               6

<PAGE>

permit nor does it permit, directly or indirectly, Parent to act as a life
insurance company in the United States of America.

                  Section 5.06. This Agreement may be executed in one (1) or
more counterparts each of which shall be deemed a duplicate original, but all of
which together shall constitute a single agreement.

                  Section 5.07. No failure on the part of either party to
exercise, and no delay in exercising, any right, power, or remedy hereunder
shall operate as a waiver thereof.

                                 VI. TERMINATION

                  Section 6.01. This Agreement shall commence on the effective
date described in Section VII hereof, and shall continue in force for a period
of five years, subject to the provisions of Section 6.02, and shall be
automatically renewed at the end of each five-year term according to the
provisions of Section 6.03.

                  Section 6.02. During the initial five-year term, this
Agreement may be terminated upon thirty (30) days written notice for cause. For
the purposes of this Agreement, "cause" is defined to mean (i) a material breach
of this Agreement by either party, or (ii) the insolvency or inability of either
party to perform its duties under this Agreement.

                  Section 6.03. After the expiration of the initial five-year
term, this Agreement shall automatically be renewed for additional five-year
terms, unless this Agreement is terminated, with or without cause, by the
giving, at least ninety (90) days prior to the expiration of each five (5) year
term, of a notice of termination by either Parent or the Life Company.

                                       7

<PAGE>

        VII. APPROVAL BY DELAWARE INSURANCE COMMISSIONER; EFFECTIVE DATE

                  Section 7.01. The parties agree this Agreement shall be
submitted to Insurance Commissioner of the State of Delaware with notice (the
"Notice") of the intention of the parties to make this Agreement effective and
that a copy of the Notice containing the date thereof shall be attached hereto
as Exhibit A.

                  Section 7.02. This Agreement shall be of no force or effect
and no transaction shall be entered into pursuant hereto until (i) at least
thirty (30) days, or such shorter period as the Insurance Commissioner of the
State of Delaware may permit, has elapsed from the date of the Notice and (ii)
the Insurance Commissioner of the State of Delaware has not disapproved this
Agreement during such period.

                                                                               8

<PAGE>

                  IN WITNESS WHEREOF, the undersigned parties hereto have duly
executed this Agreement as of the day and year first above

written.

                                             SAGE LIFE INSURANCE GROUP INC.

                                             By:  /s/ Robin I. Marsden
                                                -------------------------------
                                                  Authorized Signatory

                                             SAGE LIFE ASSURANCE OF AMERICA,INC.

                                              By: /s/ Ronald S. Scowby
                                                -------------------------------
                                                   Authorized Signatory

                                                                               9

<PAGE>

                                    EXHIBIT A

                                                               [SAGE LETTERHEAD]

November 19, 1997

The Honorable Donna Lee Williams
Insurance Commissioner
State of Delaware
Department of Insurance
841 Silver Lake Boulevard
Dover, DE 19904

RE:  Cost Sharing Agreement

Dear Commissioner Williams:

Sage Life Assurance of America, Inc., a Delaware-domiciled insurer, intends to
enter into a Cost Sharing Agreement with its immediate parent, Sage Insurance
Group, Inc. (Please note that Sage Insurance Group, Inc. is not an insurer and
does not transact insurance in Delaware or elsewhere.) Pursuant to Insurance
Code Section 5005(a)(2)d. we are hereby providing notice to you of our intent.
The Agreement will become effective in 30 days, or upon your prior approval.

A copy of the Agreement is attached. If you have any questions, please do not
hesitate to call me at 1-888-502-7243. Thank you for your consideration.

Sincerely,

James F. Bronsdon
Vice President
Legal and Compliance

enc.

<PAGE>

                                 AMENDMENT NO. 1

                                       TO

                             COST SHARING AGREEMENT

         The Cost Sharing Agreement entered into as of the 19th day of November,
1997, by and between SAGE INSURANCE GROUP, INC. and SAGE LIFE ASSURANCE OF
AMERICA, INC., is hereby amended by adding the following Section 5.08 to Article
"V. MISCELLANEOUS PROVISIONS" thereof:

         Section 5.08. Pursuant to Sections 1.02, 2.02, and 3.02 hereof, the
         charging party will submit to the reimbursing party the pertinent
         statements of charges within 90 days of the end of the calendar year,
         and the reimbursing party will pay such charges not later than 30 days
         thereafter.

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

                                            SAGE INSURANCE GROUP, INC.

                                            By: /s/ Ronald S. Scowby
                                               ------------------------------
                                                    Authorized Signatory

                                            SAGE LIFE ASSURANCE OF AMERICA, INC.

                                            By: /s/ Mitchell R. Katcher
                                               ------------------------------
                                                    Authorized Signatory

<PAGE>

                  AMENDMENT NO. 2 TO THE COST SHARING AGREEMENT

         This Amendment No. 2 ("Amendment No. 2") to the Cost Sharing Agreement
by and between Sage Insurance Group, Inc. (the "Parent") and Sage Life Assurance
of America, Inc. (the "Life Company"), dated as of November 19, 1997 (the "Cost
Sharing Agreement"), is entered into as of October 1, 2002.

         WHEREAS, the Parent and the Life Company previously entered into the
Cost Sharing Agreement pursuant to which the Parent provides the Life Company
with office space, office equipment and related office services;

         WHEREAS, the Parent and the Life Company desire to amend the Cost
Sharing Agreement to provide for payment of the amounts estimated to be owed by
the Life Company for such office space, office equipment and related office
services on a monthly basis;

         NOW, THEREFORE, in consideration of the covenants and mutual promises
contained in this Amendment No. 2 and other good and valuable consideration, the
receipt and legal sufficiency of which are acknowledged, the Parent and the Life
Company hereby agree as follows:

         1.       AMENDMENTS TO THE COST SHARING AGREEMENT.

                  1.1 The introductory paragraph of the Cost Sharing Agreement
is hereby amended by deleting the words "a wholly owned" from the seventh line
thereof and substituting therefor the words "an indirect";

                  1.2 Section 1.02 of the Cost Sharing Agreement is hereby
amended by deleting the word "year" from the first line thereof and substituting
therefor the word "month";

                  1.3 Section 1.04 of the Cost Sharing Agreement is hereby
amended by deleting the word "year" from the second, fifth, seventh, tenth (in
two places) and eleventh lines thereof and substituting therefor the word
"month";

                  1.4 Section 2.02 of the Cost Sharing Agreement is hereby
amended by deleting the word "year" from the first line thereof and substituting
therefor the word "month";

                  1.5 Section 2.04 of the Cost Sharing Agreement is hereby
amended by deleting the word "year" from the second, fifth, seventh, ninth (in
two places) and tenth lines thereof and substituting therefor the word "month";

                  1.6 Section 3.02 of the Cost Sharing Agreement is hereby
amended by deleting the word "year" from the first line thereof and substituting
therefor the word "month";

                  1.7 Section 5.08 of the Cost Sharing Agreement is hereby
amended by deleting the words "90 days" from the third line thereof and
substituting therefor the word "15 days" and by deleting the word "year" from
the third line thereof and substituting therefor the word "month".

         2.       EFFECTIVE DATE. The Life Company shall file this
Amendment No. 2 with the Insurance Commissioner of the State of Delaware, and
this Amendment No. 2 shall be of no force and effect until (i) a thirty-day
period, or such shorter period as the Insurance Commissioner of the State of
Delaware may permit, has elapsed since the date of such filing and (ii) the
Insurance Commissioner of the

<PAGE>

State of Delaware has not disapproved this Amendment No. 2 during such period.
Upon so becoming in force and effect, this Amendment No. 2 shall be effective
from and after October 1, 2002.

         3.       CONFIRMATION OF THE  AGREEMENT. Except as amended hereby,
the Cost Sharing Agreement shall remain in full force and effect and is hereby
ratified and confirmed in all respects.

         IN WITNESS WHEREOF, the parties hereto have duly executed this
Amendment No. 2 as of the date first above written.

                                 SAGE INSURANCE GROUP, INC.

                                 By:   /s/ Robin I. Marsden
                                       -------------------------------------
                                       Robin I. Marsden
                                       President and Chief Executive Officer

                                 SAGE LIFE ASSURANCE OF AMERICA, INC.

                                 By:   /s/ Robin I. Marsden
                                       -------------------------------------
                                       Robin I. Marsden
                                       President and Chief Executive Officer

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