Document:

<PAGE>

                                                                   Exhibit 10.18

*CONFIDENTIAL INFORMATION HAS BEEN OMITTED AND FILED                Confidential
SEPARATELY WITH THE SEC.

                       AGENCYPORT INSURANCE SERVICES, INC.
                         LICENSE AND SERVICES AGREEMENT
                               KEYONCE(TM) V. 2.0

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

This LICENSE AND SERVICES AGREEMENT ("Agreement") for KeyOnce(TM) v. 2.0, is
made and entered into as of this 11th day of June, 2002 ("Effective Date"), by
and between AgencyPort Insurance Services, Inc., a Massachusetts corporation
having offices at 31 Milk Street, Suite 1010, Boston, MA 02109 ("AgencyPort"),
and the company identified below ("Customer" or "Tower").

                                   BACKGROUND

AgencyPort develops and makes available specialized software and related
services for use in the insurance industry. Subject to the terms set forth in
this Agreement, Customer desires to obtain the right to use certain of the
specialized software developed by AgencyPort and to retain AgencyPort to provide
certain related services, and AgencyPort desires to grant Customer such right
and to provide such related services to Customer, as more fully described
herein.

I. DESCRIPTION OF AGREEMENT. This Agreement consists of this Signature Page,
Terms and Conditions, and Exhibits A through G, attached hereto and incorporated
by reference herein.

II. CUSTOMER NOTICE ADDRESS. Notices shall be sent to Customer, pursuant to
Section 16.1 of the Terms and Conditions, as follows:

         Customer:         Tower Insurance Company of New York
                           -----------------------------------------------------
         Address:          120 Broadway, 14th Floor
                           -----------------------------------------------------
         City, State Zip:  New York, NY  10271
                           -----------------------------------------------------
         Attention:        Michael Lee, President and Chief Executive Officer
                           -----------------------------------------------------
         Tel. No.          212-655-2000
                           -----------------------------------------------------
         Fax No.           212-271-5492
                           -----------------------------------------------------
         Email:            mlee@twrgrp.com
                           -----------------------------------------------------

III. CUSTOMER CONTACT. The following contact person of Customer shall be the
primary contact person assigned to AgencyPort and will be available to
AgencyPort pursuant to the terms hereof to facilitate AgencyPort's provision of
the services hereunder:

         Contact:          Angelica Lopez
                           -----------------------------------------------------
         Customer:         Tower Insurance Company of New York
                           -----------------------------------------------------
         Address:          120 Broadway, 14th Floor
                           -----------------------------------------------------
         City, State Zip:  New York, NY  10271
                           -----------------------------------------------------
         Tel. No.          212-655-2000
                           -----------------------------------------------------
         Fax No.           212-271-5492
                           -----------------------------------------------------
         Email:            alopez@twrgrp_com
                           -----------------------------------------------------

         AGENCYPORT CONTACT. The following contact person of AgencyPort shall be
the primary contact person assigned to Customer and will be available to
Customer pursuant to the terms hereof to facilitate Customer obtaining the
services hereunder:

         Contact:          Eric Harnden
                           -----------------------------------------------------
         Tel. No.          617-646-4554
                           -----------------------------------------------------
         Fax No.           617-646-4551
                           -----------------------------------------------------
         Email:            eharnden@agencyport.com
                           -----------------------------------------------------

                                       -1-
<PAGE>
*CONFIDENTIAL INFORMATION HAS BEEN OMITTED AND FILED                Confidential
SEPARATELY WITH THE SEC.

IV. AGREEMENT. For good and valuable consideration, the sufficiency of which is
hereby acknowledged, and intending to be legally bound, the parties hereby agree
to all of the terms and conditions in this Agreement. Each of AgencyPort and
Customer further represents and warrants that the information each has provided
is accurate and that this Agreement is executed by its duly authorized
representative.

<TABLE>
<S>                                                       <C>
AGENCYPORT INSURANCE SERVICES, INC.                       CUSTOMER

By:       /s/ William A. Black                            By:      /s/ Michael H. Lee
         --------------------------------------------             --------------------------------------------

Name:     William A. Black Jr.                            Name:    Michael H. Lee
         --------------------------------------------             --------------------------------------------

Title:     President                                      Title:   President & CEO
         --------------------------------------------             --------------------------------------------

Date:                                                     Date:    6/11/02
         --------------------------------------------             --------------------------------------------
</TABLE>

                                       -2-
<PAGE>
*CONFIDENTIAL INFORMATION HAS BEEN OMITTED AND FILED                Confidential
SEPARATELY WITH THE SEC.

                              TERMS AND CONDITIONS

1.       DEFINITIONS. As used in this Agreement, the following terms shall have
         the following meanings:

         1.1. "Acceptance" has the meaning set forth in Section 6.2(a).

         1.2. "Acceptance Testing" shall mean testing performed by the Customer
         for the purposes of confirming that the Deliverables perform in
         accordance with the applicable Specifications in all material respects.

         1.3. "Affiliate" shall mean, with respect to either party, any person
         or other entity, directly or indirectly through one or more
         intermediaries, controlling, controlled by, or under common control
         with, such entity.

         1.4. "AgencyPort Contingency Plan" means the plan that AgencyPort and
         Customer will work together to prepare providing for the continued use
         of the Software in the event Customer is entitled to access the
         Deposits pursuant to Section 9.7(a).

         1.5. "AgencyPort Indemnified Party" has the meaning set forth in
         Section 12.2.

         1.6. "Agreement" has the meaning set forth on the signature page
         hereto.

         1.7. "Authorized Users" shall mean individual users, each using a
         unique username and password, who are authorized to use the Software
         and Tower Modules and for whom the appropriate fees have been paid
         pursuant to Addendum 8.1.

         1.8. "Consumer Price Index" shall mean the Consumer Price Index for
         Education and Communication, Boston, All Urban Consumers (base year
         1982-1984=100), published by the United States Bureau of Labor
         Statistics of the U.S. Department of Labor.

         1.9. "Critical Defect" has the meaning set forth in Exhibit A.

         1.10. "Customer Data" has the meaning set forth in Section 7.1.

         1.11. "Customer Indemnified Party" has the meaning set forth in Section
         12.1.

         1.12. "Deliverables" shall mean the Software, Tower Modules and other
         deliverables to be provided to Customer in accordance with Exhibit B.

         1.13. "Deposits" has the meaning set forth in Section 9.7(a).

         1.14. "Development Plan" has the meaning set forth in Exhibit B.

         1.15. "Development Environment" means an environment containing the
         Software licensed to Tower under this Agreement (for which Tower may
         create additional modules through the use of the SDK) and all Tower
         Modules.

         1.16. "Development Services" means services performed by AgencyPort for
         Tower in accordance with Exhibit B.

         1.17. "Documentation" shall mean the user, operations and training
         manuals for the Software and Tower Modules, as applicable.

                                      -3-
<PAGE>
*CONFIDENTIAL INFORMATION HAS BEEN OMITTED AND FILED                Confidential
SEPARATELY WITH THE SEC.

         1.18. "Effective Date" has the meaning set forth on the signature page
         hereto.

         1.19. "Gross Revenue" shall mean, with respect to Section 15, the gross
         amount of money received by AgencyPort subject to revenue sharing
         pursuant to Section 15, minus any (a) credits for claims and refunds,
         (b) sales, excise, use, value-added and other similar taxes (excluding
         income taxes), if applicable, and (c) direct costs of proceedings
         (including legal counsel) to collect past due invoices.

         1.20. "Hosting Environment" shall mean an online, secure hosting
         environment hosted by AgencyPort (or a third party retained by
         AgencyPort for such purpose) for the purpose of making available to
         Authorized Users via the Internet the Software and Tower Modules and
         additional modules created by Tower through the use of the SDK.

         1.21. "Hosting Equipment" shall mean the server hardware,
         server-resident computer software, telecommunications or other network
         communications, and other equipment connecting the Hosting Environment
         to the World Wide Web, Internet or other suitable communications
         services as are commercially reasonable and necessary to provide
         Customer with access to the Hosting Environment in accordance with
         Exhibit E.

         1.22. "Initial Term" shall mean the initial three year period
         commencing upon the Effective Date during which AgencyPort shall
         provide Support Services to Customer, unless terminated earlier
         pursuant to Section 9, as further described in Exhibit A.

         1.23. "License" shall mean the license for the Software as further
         described in Section 5.1.

         1.24. "Major Defect" has the meaning set forth in Exhibit A.

         1.25. "Minor Defect" has the meaning set forth in Exhibit A.

         1.26. "Professional Services" shall mean services requested by Customer
         and rendered by AgencyPort on a time and materials basis (initially $ *
         per hour, as may be increased to match any increase in the Consumer
         Price Index) which are outside of the scope of Development Services, as
         set forth in Exhibit B.

         1.27. "Proprietary Information" has the meaning set forth in Section
         10.1.

         1.28. "Scheduled Maintenance" has the meaning set forth in Exhibit E.

         1.29. "SDK" shall mean the AgencyPort's Software Development Kit.

         1.30. "Service Interruption" has the meaning set forth in Exhibit E.

         1.31. "Software" shall mean the software (in object code form unless
         otherwise specified) and products and services constituting the KeyOnce
         Software v.2.0, including any Documentation, data and information, the
         SDK and related materials, and Updates (collectively, "Software").

         1.32. "Specifications" shall mean, (i) with respect to the KeyOnce
         Software v. 2.0, the specifications set forth in Exhibit C hereto, (ii)
         with respect to any Tower Modules developed hereunder, the
         specifications set forth in the applicable Development Plan, and (iii)
         with respect to the SDK, the specifications set forth on Exhibit F
         hereto.

         1.33. "Support Services" has the meaning set forth in Section 3.

                                      -4-
<PAGE>
*CONFIDENTIAL INFORMATION HAS BEEN OMITTED AND FILED                Confidential
SEPARATELY WITH THE SEC.

         1.34. "Third Party License Fees" shall mean, for the purposes of
         Section 15, any license fee or other compensation paid to AgencyPort
         for the development, enhancement, licensing, sublicensing or use of any
         product, whether or not hosted by AgencyPort, which incorporates or
         uses all or any portion or adaptation of the Tower Modules.

         1.35. "Tower Modules" shall mean modules of software jointly developed
         and jointly owned by AgencyPort and Customer which can be used with
         AgencyPort's Software.

         1.36. "Tower Payments" has the meaning set forth in Section 15.1(a).

         1.37. "Updates" shall mean revisions to and new versions of the
         Software made generally available to all of AgencyPort's customers.

2.       HOSTING ENVIRONMENT.  Subject to the terms of this Agreement,
         AgencyPort, either directly or through the use of third parties
         retained by AgencyPort, agrees to provide Customer and Authorized Users
         with access to the Hosting Environment in accordance with Exhibit E for
         the use of the Software and Tower Modules, unless Hosting services are
         otherwise terminated by either party in accordance with Section 9.2.
         The parties acknowledge that the Hosting Environment shall initially be
         provided by AgencyPort. AgencyPort shall provide Customer with five (5)
         days prior written notice in the event that AgencyPort elects to change
         the provider of the Hosting Environment, unless the provision of such
         written notice is not reasonably practicable.

3.       SUPPORT SERVICES.  Subject to the terms of this Agreement, AgencyPort
         will provide to Customer maintenance and support services ("Support
         Services") as expressly set forth in Exhibit A. As a condition to
         receiving Support Services, Customer agrees that (i) it shall access
         the Software in accordance with the specifications provided by
         AgencyPort with respect to client equipment and Internet access; (ii)
         if necessary, Customer will allow AgencyPort access to Customer's
         facility and equipment at such times as are agreed upon by the parties
         to perform diagnosis/problem resolution; (iii) Customer will provide
         AgencyPort with all information, documentation, technical assistance
         and access reasonably required for AgencyPort to provide Support
         Services, including reasonable access to and the assistance of the
         contact person set forth on the signature page hereto; and (iv)
         Customer will pay all amounts owing hereunder for the Support Services
         when due. Customer acknowledges and agrees that AgencyPort shall have
         no obligation to perform Support Services with respect to problems
         resulting from any module of software developed exclusively by
         Customer.

4.       DEVELOPMENT SERVICES. Subject to the terms of this Agreement,
         AgencyPort will provide to Customer Development Services as expressly
         set forth in Exhibit B.

5.       GRANT OF LIMITED LICENSE; RESTRICTIONS.

         5.1. GRANT OF LICENSE. Subject to the terms of this Agreement
         (excluding Customer's obligations with respect to Development Services,
         Support Services, Hosting Services and Professional Services), and in
         consideration of Customer's obligations hereunder, AgencyPort hereby
         grants to Customer a non-exclusive, non-transferable, non-assignable,
         royalty-free, license (the "License"), without the right to sublicense
         or assign (except to Affiliates, unless such Affiliate is in the
         business of developing and licensing software), to use the Software in
         the manner set forth in subsections (a) through (e) below. The Software
         may incorporate or include certain software, data, information and/or
         services developed and licensed to AgencyPort by third parties, in
         which case AgencyPort hereby grants to Customer, but only to the extent
         necessary, the rights that AgencyPort is permitted to grant under the
         license between AgencyPort and the applicable third party, but in no
         case more rights or remedies than is granted to AgencyPort pursuant to
         such license. Notwithstanding the foregoing, nothing in this Agreement
         shall be construed as granting Customer any rights in any software
         developed by AgencyPort for a third party or other customer.

                                      -5-
<PAGE>
*CONFIDENTIAL INFORMATION HAS BEEN OMITTED AND FILED                Confidential
SEPARATELY WITH THE SEC.

              (a) HOSTING. Authorized Users may access the Hosting Environment
         for the use of the Software, Tower Modules and other modules created by
         Tower through the use of the SDK hosted for the benefit of Customer in
         accordance with Exhibit E.

              (b) INSTALLATION. If Customer terminates AgencyPort's Hosting
         Services in accordance with Exhibit E, during the term of this
         Agreement Customer may install a copy of the Software on one or more
         servers owned, operated and controlled by it (or by a third party
         subject to an agreement containing terms at least as restrictive as the
         terms hereof with respect to the confidentiality and use of the
         Software and Tower Modules).

              (c) REVIEW PURPOSES. Customer may review and study the Software to
         advance Customer's understanding of the functionality of the Software
         and the degree to which it can be maintained and extended.

              (d) JOINTLY DEVELOPED. Customer may use the Tower Modules and SDK
         for the purposes of creating additional modules for the Software
         consistent with the terms of this Agreement.

              (e) ACCESS VIA SDK. Customer agrees that the Software will not be
         accessible to Customer for development purposes except through the use
         of the SDK. AgencyPort agrees to deliver the SDK to Customer within six
         (6) months from the Effective Date of this Agreement and to include
         executable code accessed via an application programming interface,
         instructions as to how to use such code, and supporting documentation.
         The Specifications for the SDK are set forth on Exhibit F hereto.
         Customer may use the SDK to create modules for the Software. AgencyPort
         agrees to use commercially reasonable efforts to provide additional
         functionality to the SDK as reasonably requested by Customer as part of
         Professional Services at the rates set forth on Addendum 8.1. Any
         modules created exclusively by Customer shall be owned exclusively by
         Customer. The SDK will be utilized only in the Development Environment.

         5.2. RESERVATION OF RIGHTS. AgencyPort reserves all rights not
         expressly granted to Customer herein, and no other rights and licenses
         are granted or will be deemed to have been granted hereunder. Except as
         expressly set forth in Sections 5.1 and 5.3, Customer does not have the
         right to assign, transfer or sublicense to any third party any of the
         rights or licenses granted herein provided that Customer shall have the
         right to provide access to Authorized Users pursuant to the terms of
         this Agreement for use of the Software, Tower Modules and additional
         modules created by Tower through the use of the SDK solely in
         connection with the distribution of Customer's products.

         5.3. RESTRICTIONS ON USE OF SOFTWARE. Customer hereby acknowledges and
         agrees that it shall use the Software and Tower Modules solely in
         connection with Customer's distribution of Customer's products in
         Customer's business operations and shall allow access solely by
         Authorized Users. Customer may also allow temporary access to issuing
         insurance carriers, reinsurers, government agencies and other entities
         that may be evaluating Customer or its Affiliates solely for purposes
         of due diligence or required inspection. Customer represents, warrants
         and covenants that Customer will not sell, transmit, display, disclose,
         divulge, reveal, report, publish or transfer any portion of the
         Software to any third party other than employees, agents or
         subcontractors of Customer who have obligations of confidentiality and
         restrictions consistent with the terms of this Agreement. Customer
         shall not reproduce, except as specifically permitted pursuant to this
         Agreement, or create derivative works of the Software or any portion
         thereof. Customer further represents, warrants and covenants that
         neither Customer nor any of its employees, subcontractors or agents nor
         Authorized Users will attempt to reverse engineer, reverse assemble,
         disassemble, or otherwise attempt to discover the source code of any
         element of the Software. To the extent that any source code of the
         Software is disclosed to or obtained by the Customer, the Customer
         agrees that it shall not use or make any disposition of such source
         code in any manner that is not expressly permitted under the terms of
         this Agreement, including without limitation, hosting, licensing or
         sublicensing software to others in any manner which is competitive with
         the business of AgencyPort.

                                      -6-
<PAGE>
*CONFIDENTIAL INFORMATION HAS BEEN OMITTED AND FILED                Confidential
SEPARATELY WITH THE SEC.

         5.4. AUTHORIZED USERS. Authorized Users are not permitted to share
         usernames/passwords and only one Authorized User may use the
         username/password assigned to such user. Customer acknowledges and
         agrees further that regardless of the location of the Authorized User
         or the method by which said user accesses the Software, the
         information, data and materials on the Software and the Software
         itself, shall reside only on databases, intranets, wide area networks
         and/or local area networks which are controlled and secured by
         AgencyPort or Customer, as applicable. Customer shall be responsible
         for any damages, costs, or expenses resulting from any breach of this
         Agreement by Customer, its employees, officers, subcontractors or
         agents and/or by Authorized Users. Customer acknowledges and agrees
         that if a person or entity is allowed to use or interact with a program
         (including, but not limited to, a marketing web site or a customer
         service web site) that is not part of the Software but such use or
         interaction of such program involves interacting with the Software,
         such use or interaction (i) shall constitute use of the Software and
         (ii) shall be subject to the terms and limitations of this Agreement.

         5.5. OWNERSHIP. Customer acknowledges and agrees that AgencyPort is and
         will at all times remain the exclusive owner of all rights, title and
         interests in and to the Software and any and all enhancements and
         modifications and derivative works of the Software. The Tower Modules
         shall be jointly owned by AgencyPort and Tower, without accounting,
         except that (i) Customer agrees that it shall not sell or otherwise
         transfer any rights in any of the Tower Modules (except to an Affiliate
         that is not in the business of developing and licensing software)
         without the prior written consent of AgencyPort; and (ii) AgencyPort
         agrees that it shall not sell or otherwise transfer any rights in any
         of the Tower Modules without Customer's prior written consent to any
         company included in a list of up to twenty (20) competitor companies
         which Customer shall be entitled to designate in writing to AgencyPort
         annually on the Effective Date, as such list may be amended in writing
         by Tower effective after sixty (60) days prior written notice to
         AgencyPort, provided however that the restriction set forth in this
         Section 5.5(ii) shall not apply to any such company if AgencyPort has
         commenced a business relationship with such company prior to the date
         of its inclusion on such list. If Tower does not provide such list
         AgencyPort agrees that it shall not sell or otherwise transfer any
         rights in any of the Tower Modules to any company that is located
         within sixty (60) miles of New York City and derives 25% or more of its
         gross written premiums from sales to New York City and the following
         counties located in greater metropolitan New York City area:
         Westchester, Rockland, Duchess, Putnam, Nassau, Suffolk and Orange
         County, without the prior written consent of Tower. Notwithstanding the
         foregoing, Tower's written consent shall not be required for any sale
         or transfer of rights in any of the Tower Modules by AgencyPort which
         is the result of an acquisition of substantially all of the assets of
         AgencyPort or 51% or more of its capital stock through merger or
         otherwise. AgencyPort acknowledges and agrees that Customer is and will
         remain the exclusive owner of all Customer Data and any software
         modules developed exclusively by Customer. Each party is and will
         remain the exclusive owner of its Proprietary Information.

         5.6. FURTHER RIGHTS AND OBLIGATIONS. AgencyPort and Customer will have
         such further rights and obligations as expressly set forth in the
         Exhibits attached hereto and incorporated herein by reference.

6.       DELIVERY, INSTALLATION AND ACCEPTANCE TESTING.

         6.1. DELIVERY. AgencyPort shall deliver to the Customer the
         Deliverables together with related Documentation in accordance with
         Exhibit B as such Exhibit B may be modified by any Development Plan.
         The Customer may duplicate such Documentation for use solely in
         accordance with the terms of this Agreement. In so doing, the Customer
         agrees that any copyright and other proprietary notices on such
         documentation will be reproduced.

                                      -7-
<PAGE>
*CONFIDENTIAL INFORMATION HAS BEEN OMITTED AND FILED                Confidential
SEPARATELY WITH THE SEC.

         6.2. ACCEPTANCE TESTING.

              (a) The Customer shall, not later than thirty (30) days from
         delivery of each Deliverable with respect to a particular development
         phase as set forth in Exhibit B or the date set forth in the applicable
         Development Plan, complete Acceptance Testing of such Deliverable. Upon
         the successful completion of Acceptance Testing, the Customer shall
         notify AgencyPort in writing of its acceptance ("Acceptance") of the
         Deliverable for the applicable development phase, provided that if
         Customer does not so notify AgencyPort within said thirty day period,
         Customer shall be deemed to have accepted such Deliverable. The date of
         such notification, or the end of the thirty day period, whichever is
         earlier, shall be considered the date of Acceptance.

              (b) If the Deliverable for any development phase set forth on
         Exhibit B, or any portion thereof, fails to pass Acceptance Testing,
         the Customer shall notify AgencyPort of such failure. AgencyPort will
         consider any such failure a Critical Defect (provided that failure of a
         Tower Module to pass Acceptance Testing shall not be deemed a "material
         breach" pursuant to Exhibit A) and shall begin work to correct all
         deficiencies using the same efforts it would use to correct a Critical
         Defect. All corrective work performed by AgencyPort shall be subject to
         Acceptance Testing in accordance with this Section 6.2. If a
         Deliverable for a development phase still fails Acceptance Testing
         after three failures of Acceptance Testing, the Customer may in its
         sole discretion: (i) grant AgencyPort additional time to correct the
         outstanding deficiencies or (ii) notwithstanding Section 9 and without
         prejudice to any of the Customer's other rights and remedies under this
         Agreement, any Development Plan or at law or in equity, (A) terminate
         this Agreement and/or the relevant Development Plan, as determined by
         the Customer in its sole discretion, in which event AgencyPort shall
         immediately refund any amounts paid by the Customer to AgencyPort for
         Development Services for the six development phases set forth on
         Exhibit B, or (B) terminate this Agreement, all Development Plans and
         the License granted hereunder, in which event AgencyPort shall
         immediately refund all amounts paid for Development Services for the
         six development phases set forth on Exhibit B, and refund all amounts
         paid as fees for the License upon Tower's termination of its use of the
         Software and its transition to alternate software. If a Deliverable
         delivered pursuant to any subsequent development phase not set forth on
         Exhibit B fails Acceptance Testing as set forth in this Section 6.2(b),
         Customer shall be entitled to a refund of amounts paid for Development
         Services for such development phase only.

7.       CUSTOMER DATA.

         7.1. CUSTOMER DATA. In connection with Customer's use of the Hosting
         Environment hereunder, Customer and its Authorized Users may provide to
         AgencyPort or input into the Software via the Hosting Environment
         certain data related to the Customer's business or Authorized User's
         business ("Customer Data"). AgencyPort may provide via the Hosting
         Environment proprietary reports, data confirmation requests or other
         materials to Customer relating to the accuracy of Customer Data in
         accordance with the security procedures and directions of Customer.
         Customer will be responsible for providing AgencyPort or inputting into
         the Software, as mutually agreed upon by the parties, updated and
         modified Customer Data as necessary and appropriate, the accuracy of
         which will be the sole responsibility of Customer.

         7.2. MAINTENANCE OF CUSTOMER DATA. AgencyPort will use diligent efforts
         to prevent the loss of or damage to Customer Data in its possession and
         will maintain diligent back-up procedures (which provide for Back-up on
         at least a daily basis) and copies to facilitate the reconstruction of
         any Customer Data that may be lost or damaged by AgencyPort. AgencyPort
         will promptly notify Customer of any known loss of or damage to such
         Customer Data and shall respond as if such loss of or damage was a
         Critical Defect. AgencyPort will use diligent efforts to reconstruct
         any Customer Data that is known to have been lost or damaged by
         AgencyPort.

                                      -8-
<PAGE>
*CONFIDENTIAL INFORMATION HAS BEEN OMITTED AND FILED                Confidential
SEPARATELY WITH THE SEC.

8.       FEES; EXPENSES; TERMS OF PAYMENT.

         8.1. FEES. In consideration of the rights and licenses granted herein,
         Customer agrees to pay the fees set forth in Addendum 8.1, such
         payments to be made within 30 days of the date of invoice.

         8.2. PAYMENT; LATE FEES. All payments due to AgencyPort hereunder will
         be paid in United States dollars. Customer may not withhold any amounts
         due hereunder. AgencyPort reserves the right, without limitation, to
         (i) deny Customer access to the Hosting Environment upon nonpayment of
         fees due for Hosting Services, which nonpayment continues for a period
         of 30 days after notice from AgencyPort, (ii) discontinue the provision
         of Support Services upon nonpayment of fees due for Support Services,
         which nonpayment continues for a period of 30 days after notice from
         AgencyPort; (iii) discontinue Development Services upon nonpayment of
         fees due for Development Services, which nonpayment continues for a
         period of 30 days after notice from AgencyPort; and/or (iv) assert
         appropriate liens, for non-payment of any fees then due which
         non-payment continues for a period of 30 days after notice from
         AgencyPort, until all amounts due are paid in full. AgencyPort further
         reserves the right to charge Customer a late payment fee of 1.5% for
         each month by which payment is delinquent. Customer agrees to pay any
         costs of collection (including reasonable legal and professional fees)
         incurred in collecting any amounts due hereunder.

9.       TERM AND TERMINATION.

         9.1. TERM OF AGREEMENT. This Agreement will be effective as of the
         Effective Date and will remain in full force and effect unless
         terminated in accordance with Section 9.4.

         9.2. TERM OF HOSTING SERVICES. The term of the Hosting services is one
         (1) year commencing on the completion of the first phase of
         Deliverables at the election of Customer, provided that (i) Customer
         may terminate Hosting services upon 30 days advance written notice to
         AgencyPort and (ii) AgencyPort may terminate Hosting Services on 120
         days advance written notice to Customer. The term for Hosting Services
         shall automatically renew for additional one year periods unless
         terminated as provided herein.

         9.3. TERM FOR SUPPORT SERVICES. AgencyPort shall provide the Support
         Services pursuant to this Agreement for the Initial Term of three years
         commencing upon the Effective Date, unless terminated earlier as
         provided in this Section 9.3. Upon the expiration of the Initial Term,
         the term for provision of the Support Services shall automatically
         renew but shall be terminable by Customer or AgencyPort upon at least
         90 days advance written notice.

         9.4. (a) TERMINATION. Notwithstanding any provision herein to the
         contrary, each party will have, the right, in addition to any other
         rights and remedies available to the party, to immediately terminate
         this agreement and the license granted hereunder by written notice to
         the other party if (i) the other party breaches any material provision
         of this Agreement and, in the case of a breach capable of remedy, fails
         to cure such breach within sixty (60) days of the receipt by the
         breaching party of written notice specifying the breach and requiring
         its remedy; or (ii) the other party (A) becomes insolvent, (B) makes a
         general assignment for the benefit of creditors, (C) suffers or permits
         the appointment of a receiver for its business and assets, (D) becomes
         subject to any proceeding under the bankruptcy or insolvency law,
         whether domestic or foreign, and such proceeding is not dismissed
         within sixty (60) days, and/or (E) has liquidated, voluntarily or
         otherwise.

              (b) ADDITIONAL TOWER RIGHT OF TERMINATION. In the event AgencyPort
         does not obtain the requisite approval of its stockholders and its
         Board of Directors pursuant to Sections 8(e) and 8(f) of the Warrant
         Purchase Agreement between AgencyPort and Customer of even date
         herewith, Customer shall be entitled to terminate this Agreement and
         receive a refund of all amounts paid to AgencyPort hereunder. If
         Customer terminates this Agreement as set forth in this Section 9.4(b),
         the License and all obligations of the parties hereunder shall
         terminate and this Agreement shall be of no further force and effect.

                                      -9-
<PAGE>
*CONFIDENTIAL INFORMATION HAS BEEN OMITTED AND FILED                Confidential
SEPARATELY WITH THE SEC.

         9.5. EFFECT OF TERMINATION.

              (a) Upon any expiration or termination of this Agreement, at a
         party's request and option and subject to this Section 9.5, the other
         party will either promptly return and provide to the requesting party
         all Proprietary Information of the requesting party or destroy all
         Proprietary Information of the requesting party. At the option of the
         requesting party, an officer of the other party will certify to the
         requesting party that the other party has complied with the terms of
         the preceding sentence respecting Proprietary Information. AgencyPort
         will deliver to Customer the latest version of the Customer Data and
         all backups which it has in the Hosting Environment, if any. The
         expiration or termination of this Agreement for any reason will not
         relieve the parties of any obligation to pay any amount due and owing
         prior to the date of expiration or termination and will not affect any
         other rights or liabilities of the parties which may have accrued prior
         to the date of expiration or termination.

              (b) If this Agreement is terminated by AgencyPort for a material
         breach by Customer, said termination shall (subject to Section 9.5(d))
         terminate the license granted to the Customer hereunder.

              (c) If the Customer terminates this Agreement for a material
         breach by AgencyPort as described in Section 9.4(a), the termination of
         this Agreement by the Customer shall not terminate the license granted
         to the Customer hereunder and, notwithstanding Section 9.3(a) and in
         addition to all of the Customer's other rights and remedies: (a) the
         Customer shall be entitled to retain and use all copies of the Software
         in the Customer's possession or control in accordance with the
         surviving provisions of this Agreement; and (b) AgencyPort shall
         promptly refund to the Customer all prepaid Support Services fees, if
         any. In the event Customer terminates this Agreement due to a material
         breach by AgencyPort as set forth in this Section 9.5(c), Customer
         shall be entitled to use the source code (subject to all surviving
         restrictions) of the Software, but only to the extent necessary to
         repair any Critical Defect or Major Defect.

              (d) If this Agreement is terminated by AgencyPort for a material
         breach by the Customer as described in Section 9.5(b), the Customer
         shall, subject to using best efforts to cure any such breach, be
         entitled to use the Software in the ordinary course of its business for
         the period of time, not to exceed six (6) months, required for the
         Customer to wind down its current use of the Software or to make a
         transition to alternate software or facilities.

              (e) With respect to any Development Plan hereunder, the Customer
         may terminate any such Development Plan with. or without reason, at any
         time immediately upon written notice to AgencyPort. In the event of any
         such termination, the Customer shall pay AgencyPort for all work
         performed under any such Development Plan in accordance with the terms
         and conditions of such Development Plan up to the date of termination,
         and AgencyPort shall immediately return or provide to the Customer,
         without limitation, copies of all documents, drawings and other items
         of whatever nature supplied to AgencyPort by the Customer or developed
         by AgencyPort pursuant to such Development Plan.

         9.6. SURVIVAL. In addition to such other surviving obligations as are
         expressly identified elsewhere in this Agreement, the provisions of
         Sections 1, 5.2, 5.3, 5.4, 5.5, 9.5, 9.7(a), 10, 11.4, 12, 13, 15 and
         16 will survive any expiration or termination of this Agreement.

                                      -10-
<PAGE>
*CONFIDENTIAL INFORMATION HAS BEEN OMITTED AND FILED                Confidential
SEPARATELY WITH THE SEC.

         9.7. CONTINGENCY PLANNING.

              (a) SOURCE CODE ESCROW. AgencyPort shall deposit with DSI
         Technology Escrow Services copies of the source code for the Software
         as used by Customer promptly after delivery to Customer (the
         "Deposits") pursuant to an escrow agreement substantially in the form
         attached hereto as Exhibit G. At Customer's request, AgencyPort shall
         provide Customer with written verification from the escrow agent that
         all such Deposits have been placed in escrow. In the event (i)
         AgencyPort (or its successor in interest with respect to the Software)
         (A) becomes insolvent, (B) makes a general assignment for the benefit
         of creditors, (C) suffers or permits the appointment of a receiver for
         its business and assets, (D) becomes subject to any proceeding under
         the bankruptcy or insolvency law, whether domestic or foreign, and such
         proceeding is not dismissed within sixty (60) days, and/or (E) has
         liquidated, voluntarily or otherwise, or (ii) AgencyPort ceases to
         conduct business on an on-going basis leaving no successor in interest
         supporting the Software for Customer, Customer shall be entitled to
         obtain a copy of the Deposits for the sole purpose and only to the
         extent necessary of internally supporting the Software. Customer agrees
         that if it receives the Deposits pursuant to this Section, Customer
         shall use the same degree of care that it uses to protect its own
         similar confidential information, but in no event less than a
         reasonable degree of care, and shall use the Deposits solely for its
         internal needs to maintain, service, and/or repair the Software.
         AgencyPort agrees to promptly update the Deposits, as is commercially
         reasonable.

              (b) AGENCYPORT CONTINGENCY PLAN. AgencyPort agrees to work with
         Customer to help Customer develop an AgencyPort Contingency Plan and to
         make reasonably available services requested to assist Customer in the
         execution of "dry runs" of the Escrow release process. AgencyPort
         agrees to install and set up the Deposits (including source code), and
         to allow Tower to install and set up the Deposits, in the Development
         Environment for the purposes of testing the AgencyPort Contingency Plan
         only. Customer agrees that the source code contained in the Development
         Environment shall be used for Contingency Planning purposes only under
         the AgencyPort Contingency Plan and such source code shall not be used
         during the term of this Agreement to alter or modify the Software in
         any way, develop modules for the Software, or in any other manner.
         Customer further agrees that it shall not copy or use the Deposits or
         any portion thereof outside of the Development Environment without the
         previous written consent of AgencyPort. The services to be rendered
         under this Section 9.7(b) shall be deemed Professional Services under
         Addendum 8.1.

10.      CONFIDENTIALITY.

         10.1. PROPRIETARY INFORMATION. "Proprietary Information" will mean all
         of the information, data and software furnished by one party to the
         other in connection with this Agreement including third party
         information provided by AgencyPort to the Customer or by the Customer
         to AgencyPort. Notwithstanding the foregoing, and excepting any
         proprietary financial information, Proprietary Information will not
         include information which: (a) is publicly disclosed by the party
         disclosing the information either prior to or subsequent to the receipt
         of such information by the receiving party; (b) is or becomes generally
         known in the trade through no fault of the receiving party; (c) is
         lawfully disclosed to the receiving party by a third party who is under
         no duty not to disclose such Proprietary Information; (d) is
         independently developed by the receiving party or (e) the receiving
         party is required to disclose Confidential Information pursuant to a
         subpoena, court order or other similar process; provided, however, that
         the receiving party hereby stipulates and agrees that, if it seeks to
         disclose, deliver, display, divulge, reveal, report, publish or
         transfer, for any purpose whatsoever, any Proprietary Information, such
         receiving party will bear the burden of proving that any such
         information was independently developed or is or became publicly
         available without any such breach. Without limiting the generality of
         the foregoing, the parties acknowledge and agree that Proprietary
         Information will specifically include: (i) the Software; (ii) the
         Hosting Environment; (iii) all passwords allowing Customer and its
         Authorized Users to access the Hosting Environment and Software; (iv)
         any Customer Data; and (v) rate plans. A party's failure to mark any
         Proprietary Information as confidential, protected or proprietary will
         not affect its status as Proprietary Information under this Agreement.

                                      -11-
<PAGE>
*CONFIDENTIAL INFORMATION HAS BEEN OMITTED AND FILED                Confidential
SEPARATELY WITH THE SEC.

         10.2. TREATMENT OF PROPRIETARY INFORMATION. Each party acknowledges
         that, in performing its obligations and exercising its rights
         hereunder, a party may acquire the Proprietary Information of the other
         party. As a material inducement to the other party to disclose such
         Proprietary Information, each party covenants and agrees that it will
         not, except with the prior written consent of the other party, at any
         time directly by itself or indirectly through any agent or employee:
         (i) reproduce, distribute, transmit, publicly display, modify, create
         derivative works based upon, or disclose, deliver, display, divulge,
         reveal, report, publish or transfer to any person or entity, for any
         purpose whatsoever, any Proprietary Information of the other party or
         (ii) use Proprietary Information of the other party for any purpose
         other than in connection with the performance of its obligations or the
         exercise of its rights hereunder. Each party further covenants and
         agrees to handle the Proprietary Information of the other party in the
         same manner that the party handles its own most confidential
         information and, in any event, to take all reasonable steps reasonably
         necessary to preserve the confidentiality of Proprietary Information,
         including without limitation adopting appropriate confidentiality
         policies, inserting appropriate confidentiality terms in agreements
         with all employees, subcontractors and Authorized Users, and
         maintaining Proprietary Information in a manner designed to assure that
         it will not be used or disclosed improperly. AgencyPort further
         covenants and agrees to remove from the Tower Modules any of Customer's
         Proprietary Information prior to the sale, sublicense or transfer of
         any rights to the Tower Modules by AgencyPort.

         10.3. REMEDYING UNAUTHORIZED USE. A party will promptly notify the
         other party if it becomes aware of any unauthorized use or disclosure
         of any Proprietary Information of the other party and will take such
         reasonable action as may be reasonably necessary and legally
         permissible to terminate or remedy any unauthorized use or disclosure
         that results from any act or omission of the party or any of its
         employees, subcontractors, Authorized Users or agents.

         10.4. INJUNCTIVE RELIEF. Each party acknowledges and agrees that the
         disclosing party will suffer irreparable harm in the event of any
         breach of the provisions of this Section 10 and that monetary damages
         will be inadequate to compensate the disclosing party for such breach.
         Accordingly, each party acknowledges and agrees that, in the event of a
         breach or threatened breach of any of the provisions of this Section
         10, in addition to and not in limitation of any other rights, remedies
         or damages available at law or in equity, the disclosing party will be
         entitled to a temporary restraining order, preliminary injunction and
         permanent injunction in order to prevent or restrain any such breach or
         threatened breach.

11.      REPRESENTATIONS AND WARRANTIES.

         11.1. HOSTING ENVIRONMENT. Notwithstanding any provisions herein to the
         contrary, AgencyPort does not warrant that: (i) Customer will at all
         times be able to access the Hosting Environment or (ii) Customer's
         access to the Hosting Environment will at all times be uninterrupted or
         error-free. Customer acknowledges and agrees that data processing and
         use of the Hosting Environment entail the likelihood of some human and
         machine errors, omissions, delays and losses. In the event that
         AgencyPort contracts with a third party to provide or administer the
         Hosting Environment, AgencyPort agrees to diligently enforce its rights
         with respect to any interruptions or errors with respect to the
         provision of such services.

         11.2. TITLE AND NON-INFRINGEMENT WARRANTY. AgencyPort warrants that it
         has the authority to grant the rights and licenses granted by this
         Agreement to Customer. AgencyPort warrants that the use of the Software
         and the Tower Modules by the Customer according to the terms of this
         Agreement will not infringe any United States patent or United States
         copyright of any third party. In the event that a third party alleges
         that Customer's access to or use of any portion of the Software or
         Tower Modules according to the terms of this Agreement infringes that
         third party's United States patent or United States copyright, then
         AgencyPort, at its sole option, will either (i) procure for the
         Customer the right to continue use of the Software or Tower Module, as
         applicable, (ii) replace or modify the Software or Tower Module, as
         applicable, so that it is noninfringing without substantially
         diminishing its capability as determined by the Customer, or (iii)
         replace the same with an equally suitable, functionally equivalent,
         compatible non-infringing Software or Tower Module, as applicable. If
         AgencyPort determines in its sole discretion that neither (i), (ii) nor
         (iii) are economically feasible, AgencyPort may terminate this
         Agreement in its entirety upon payment to the Customer of all amounts
         paid by the Customer to AgencyPort for the Software, or Tower Module,
         as applicable.

                                      -12-
<PAGE>
*CONFIDENTIAL INFORMATION HAS BEEN OMITTED AND FILED                Confidential
SEPARATELY WITH THE SEC.

         11.3. LIMITED WARRANTY. Customer assumes all responsibility for the
         selection of the Software and its appropriate use as intended to
         achieve Customer's desired results. AgencyPort warrants that, for a
         period of one hundred twenty (120) days after the Acceptance of each
         development phase set forth in Exhibit B by Customer, the Software and
         Tower Modules will materially conform to the Documentation as published
         and operate without a Critical Defect or Major Defect ("Limited
         Warranty"). If, at any time during the Limited Warranty period,
         Customer discovers a Critical Defect or Major Defect, AgencyPort will
         use commercially reasonable efforts to correct such defect and restore
         the Software or Tower Module, as applicable, to conformity with the
         Limited Warranty. If the alleged defect is not within the scope of the
         Limited Warranty, Customer will reimburse AgencyPort for all time
         expended in attempting to correct the alleged defect at AgencyPort's
         then-prevailing standard labor rates.

         11.4. DISCLAIMER OF WARRANTIES. EXCEPT AS SET FORTH IN SECTION 11.2 AND
         11.3, AGENCYPORT EXPRESSLY DISCLAIMS ALL WARRANTIES TO THE MAXIMUM
         EXTENT ALLOWED BY LAW WITH RESPECT TO THE HOSTING ENVIRONMENT, SUPPORT
         SERVICES, DEVELOPMENT SERVICES, SOFTWARE, TOWER MODULES, THE LICENSE
         GRANTED HEREUNDER, AND ALL OTHER SERVICES AND PRODUCTS PROVIDED
         HEREUNDER. AGENCYPORT HEREBY DISCLAIMS ALL OTHER WARRANTIES OF ANY KIND
         (WHETHER EXPRESS, IMPLIED, STATUTORY OR ARISING BY CUSTOM OR TRADE
         USAGE), INCLUDING WITHOUT LIMITATION THE IMPLIED WARRANTIES OF
         MERCHANTABILITY, DESIGN, NONINFRINGEMENT AND FITNESS FOR A PARTICULAR
         PURPOSE. NO ORAL OR WRITTEN INFORMATION OR ADVICE GIVEN BY AGENCYPORT
         IN PERFORMING ITS OBLIGATIONS HEREUNDER WILL CREATE ANY WARRANTY OR IN
         ANY WAY INCREASE THE SCOPE OF THE WARRANTIES MADE BY AGENCYPORT.

12.      INDEMNIFICATION.

         12.1. AGENCYPORT INDEMNIFICATION. AgencyPort agrees to indemnify and
         hold harmless (including reasonable attorney's fees and costs)
         Customer, and any employee, director, officer or agent thereof (each of
         the foregoing being hereinafter referred to individually as the
         "Customer Indemnified Party"), against all liability to third parties
         (other than liability solely the fault of the Customer Indemnified
         Party) arising from any breach of the express warranty contained in
         Section 11.2 hereof, provided, however, that Customer notifies
         AgencyPort in writing within ten (10) business days of learning of such
         third party claim. AgencyPort, at its sole option, may elect to conduct
         the defense of any such third party claim, including without limitation
         any settlement thereof, and Customer agrees to cooperate fully with
         such defense at AgencyPort's expense.

         12.2. CUSTOMER INDEMNIFICATION. Customer agrees to indemnify and hold
         harmless (including reasonable attorney's fees and costs) AgencyPort,
         and any employee, director, officer or agent thereof (each of the
         foregoing being hereinafter referred to individually as the "AgencyPort
         Indemnified Party"), against all liability to third parties (other than
         liability solely the fault of the AgencyPort Indemnified Party) arising
         from Customer's use of the Software, Tower Modules and other modules
         created by Tower, other Deliverables or the Hosting Environment,
         provided, however, that AgencyPort notifies Customer in writing within
         ten (10) business days of learning of such third party claim. Customer,
         at its sole option, may elect to conduct the defense of any such third
         party claim, including without limitation any settlement thereof, and
         AgencyPort agrees to cooperate fully with such defense at Customer's
         expense.

                                      -13-
<PAGE>
*CONFIDENTIAL INFORMATION HAS BEEN OMITTED AND FILED                Confidential
SEPARATELY WITH THE SEC.

13.      LIMITED LIABILITY.  NEITHER AGENCYPORT NOR CUSTOMER SHALL BE LIABLE
         FOR ANY SPECIAL, INCIDENTAL, CONSEQUENTIAL, INDIRECT, PUNITIVE OR
         EXEMPLARY DAMAGES OF ANY KIND WHATSOEVER, INCLUDING WITHOUT LIMITATION
         DAMAGES RESULTING FROM INTERRUPTION OF BUSINESS OR LOSS OF ANTICIPATED
         PROFITS, REVENUES, DATA, GOODWILL OR BENEFITS, EVEN IF IT HAS BEEN
         ADVISED OF THE POSSIBILITY OF SUCH DAMAGES AND REGARDLESS OF THE FORM
         (E.G., CONTRACT, TORT, WARRANTY OR OTHERWISE) OF ANY LEGAL OR EQUITABLE
         ACTION BROUGHT AGAINST AGENCYPORT OR CUSTOMER, AS THE CASE MAY BE. IN
         NO EVENT WILL AGENCYPORT'S LIABILITY FOR ANY DAMAGES ARISING OUT OF OR
         RELATED TO THIS AGREEMENT OR ANY DEFAULT OF AGENCYPORT HEREUNDER,
         REGARDLESS OF THE FORM OF THE ACTION, EXCEED THE AMOUNT OF FEES
         ACTUALLY PAID TO AGENCYPORT BY CUSTOMER HEREUNDER. NO LIMITATION OF
         AGENCYPORT'S LIABILITY SHALL APPLY WITH RESPECT TO ANY ACTUAL DAMAGES
         INCURRED BY CUSTOMER AS A RESULT OF THIRD PARTY CLAIMS BASED ON SECTION
         11.2.

14.      PUBLICITY.  Customer will not use the name or any trademarks, trade
         names and service marks of AgencyPort or its licensors, or the name of
         any person associated with AgencyPort or its licensors, for any
         purpose, including without limitation advertising and marketing,
         without the prior written consent of AgencyPort. AgencyPort agrees not
         to disclose the identity of the Customer as a customer or prospective
         customer of AgencyPort or the existence or nature of the relationship
         contemplated by this Agreement; provided, however, that AgencyPort may
         use the Customer's name in AgencyPort's business plan and in marketing
         materials and in marketing to potential investors, each subject to the
         prior written approval from Customer, except as otherwise disclosed
         prior to the Effective Date of this Agreement.

15.      REVENUE SHARING

         15.1. GENERAL.

              (a) AgencyPort agrees that it will pay Tower a commission equal to
         * % of the Gross Revenue received by AgencyPort from all Third Party
         License Fees not subject to 15.1(b) up to a maximum aggregate total of
         * % of the aggregate amount of the fees which Tower has paid to
         AgencyPort for the License and Development Services (collectively, the
         "Tower Payments").

              (b) AgencyPort will pay Tower a commission of * % of all Gross
         Revenue received by AgencyPort from all Third Party License Fees from
         customers introduced by Tower not subject to 15.1 (a) up to a maximum
         aggregate total of * % of the Tower Payments. After the commissions
         paid to Tower from customers introduced by Tower reaches * % of the
         Tower Payments, the rate of commission shall be decreased to * %. Tower
         shall also be entitled to a commission of * % of the Gross Revenue
         received by AgencyPort from the development, licensing, sublicensing or
         use of any Software which does not use or incorporate any Tower Modules
         provided that such sales are to customers introduced by Tower. A
         customer shall be deemed to have been introduced by Tower if Tower
         provides, with the ability to reference Tower as the source of
         introduction, a contact name of an individual of such prospective
         customer which results in such sales and AgencyPort has not provided
         any services to such prospective customer or engaged in any
         negotiations with such prospective customer to provide any services
         during the 12 months preceding the introduction.

              (c) Tower shall be entitled to * % of all revenues derived in the
         ordinary course of distributing its products, including, but not
         limited to, fees charged by Tower to Authorized Users in connection
         with their use of the Software and Tower Modules.

         15.2. REVENUE DISTRIBUTION. AgencyPort will distribute any commissions
         to which Tower is entitled pursuant to this Section 15 within 30 days
         of the end of each calendar quarter, based on the actual receipt of
         funds from customers during each such quarter. The amount payable by
         AgencyPort for each quarter shall be computed on the basis of Gross
         Revenue during such quarter. AgencyPort shall continue to be
         responsible for the distribution of commissions to Tower with respect
         to contracts executed by customers introduced by Tower within one year
         following termination of this Agreement, unless AgencyPort is the
         terminating party pursuant to Section 9.4(a).

                                      -14-
<PAGE>
*CONFIDENTIAL INFORMATION HAS BEEN OMITTED AND FILED                Confidential
SEPARATELY WITH THE SEC.

         15.3. RESPONSIBILITIES FOR SALES. AgencyPort is responsible for the
         fulfillment of orders under this Section 15, including the provision of
         all products and services, invoicing and collections. Tower agrees to
         provide AgencyPort with reasonable assistance in generating revenues
         from the sale or products and services, which incorporate or use the
         Tower Modules

         15.4. ACCOUNTING; AUDIT.

              (a) AgencyPort will provide Tower with a report within 30 days
         after the end of each calendar quarter indicating, with respect to each
         such quarter: (i) the amount and nature of the products and services
         subject to this Section 15 and the identity of the customer; (ii) the
         amount of Gross Revenue received from the provision of such products
         and services (including amounts deducted from the calculation of Gross
         Revenue and (iii) a computation of the distribution of commissions.
         Tower will provide AgencyPort with a report within 30 days after the
         end of each calendar quarter indicating, with respect to each such
         quarter: (i) the amount of the fees charged to Authorized Users; and
         (ii) a computation of the distribution of commissions.

              (b) Each party shall prepare and maintain complete and accurate
         books of accounts and records covering all transactions arising out of
         or relating to this Section 15. The other party and its duly authorized
         representatives shall have the right to make an examination and audit,
         with not less than thirty (30) days written notice, not more frequently
         than twice during any twelve (12) month period, of all records and
         accounts which could reasonably be expected to contain information
         bearing upon the amount of commissions payable under this Agreement.
         Each party agrees to retain records containing such information for at
         least three (3) years after the submission of the corresponding payment
         referenced in this Agreement. Examinations and audits shall be
         conducted during regular business hours, shall not unreasonably
         interfere with the audited party's normal business and shall last no
         longer than three (3) business days. Prior to conducting an
         examination, each auditor shall sign any separate confidentiality
         agreement reasonably requested by the audited party. The auditors shall
         report only to Tower and AgencyPort and only whether there has been any
         underpayment or overpayment and, if so, the amount thereof. Prompt
         adjustment shall be made by the proper party to compensate for any
         errors or omissions disclosed by such examination or audit. Neither
         such right to examine and audit nor the right to receive such
         adjustment shall be affected by any statement to the contrary appearing
         on checks or otherwise unless such statement appears in a letter,
         signed by the party having such right, expressly waiving such right and
         such letter is delivered to the other appropriate party. The costs of
         any such audit shall be borne by the auditing party, unless the results
         of the audit shall disclose a deficiency in payments due to the
         auditing party of greater than five percent (5%) for the audited
         period, in which case the audited party shall bear the costs of the
         audit. Except to the extent necessary to establish the auditing party's
         right to payment of commissions under this Agreement and then only in a
         court of law or other legal proceeding, the auditing party shall hold,
         and shall require any third party retained by the auditing party for
         the purpose of such audit to hold, all information obtained from the
         audited party in the course of any such audit in confidence and shall
         not use for its own benefit nor disclose such information to any other
         person or entity without the audited party's prior written consent.

16.      GENERAL PROVISIONS.

         16.1. NOTICES. Notices. All notices, requests, consents and other
         communications hereunder shall be in writing and shall be deemed
         delivered and received (i) when delivered in person, or (ii) five
         business days after being mailed by certified or registered mail,
         return receipt requested, (iii) one business day after being sent by a
         recognized overnight courier service or (iv) when transmitted by
         facsimile, e-mail or other electronic means, provided that the sender
         receives confirmation of receipt, addressed as follows:

                                      -15-
<PAGE>
*CONFIDENTIAL INFORMATION HAS BEEN OMITTED AND FILED                Confidential
SEPARATELY WITH THE SEC.

                  If to Tower, at:  Tower Insurance Company of New York
                                    120 Broadway, 14th Floor
                                    New York, NY  10271
                                    Attention:  Michael Lee, President and CEO
                                    Tel.:  212-655-2000
                                    Fax:  212-271-5492
                                    Email:  mlee@twrgrp.com

                  with copy to:     Steven W. Schuster, Esq.
                                    McLaughlin & Stern, LLP
                                    260 Madison Avenue
                                    New York, NY  10016
                                    Tel.:  212-448-1100
                                    Fax:  212-448-0066
                                    Email:  sschuster@mclaughlinstern.com

                  or, if to AgencyPort, at:

                                    AgencyPort Insurance Services, Inc.
                                    31 Milk Street
                                    Boston, MA  02109
                                    Attention: William A. Black, Jr., President
                                    Tel.:  617-646-4550
                                    Fax:  617-646-4551
                                    Email:  ablack@agencyport.com

                  with copy to:     Eve L. R. Waterfall, Esq.
                                    Peabody & Arnold LLP
                                    50 Rowes Wharf
                                    Boston, Massachusetts  02110
                                    Tel.:  617-951-2100
                                    Fax:  617-951-2125
                                    Email:  ewaterfall@peabodyarnold.com

                  or, in any case, to such other address as the addressee shall
                  have indicated in a written notice to the other party as
                  provided herein.

         16.2. ENTIRE AGREEMENT; AMENDMENT. This Agreement, together with the
         attached Exhibits and Schedules, which are incorporated by this
         reference as though fully set forth herein, constitutes the entire
         agreement between the parties with respect to the subject matter hereof
         and supersedes all prior or contemporaneous written or oral
         understandings, agreements and communications with respect to such
         subject matter. This Agreement may be modified or amended only by a
         writing signed by both parties.

         16.3. NON-WAIVER. The failure of either party to demand any performance
         when due, or to pursue any right or remedy arising from the other
         party's non-performance of any obligation, will not waive such party's
         right to demand such performance at a later time or stop or otherwise
         bar such party from asserting any claims, allegations or causes of
         actions, or seeking any remedies that arise from or relate to the other
         party's failure to perform.

                                      -16-
<PAGE>
*CONFIDENTIAL INFORMATION HAS BEEN OMITTED AND FILED                Confidential
SEPARATELY WITH THE SEC.

         16.4. FORCE MAJEURE. AgencyPort will not be liable for any failure of
         or delay in performance directly or indirectly caused by acts of
         Customer, its agents, employees, or sub-contractors, causes beyond the
         control of AgencyPort, including but not limited to acts of God, acts
         of the public enemy, acts of the United States, any state or territory
         of the United States, or any political subdivision of the foregoing or
         the District of Columbia, fire, floods, epidemics, quarantine
         restrictions, strikes, civil commotions, freight embargoes, any
         unusually severe weather conditions, or defaults of or delays by
         Customer's employees, sub-contractors and suppliers.

         16.5. GOVERNMENTAL LAWS AND REGULATIONS. To the extent that the
         Software and Tower Modules are used for the purpose of complying with
         governmental laws, regulations or reporting, Customer will assume all
         responsibility for determining that the Software and Tower Modules and
         any output from the Software and Tower Modules are accurate and
         complete and satisfy any governmental requirements. Customer will place
         all applicable copyright notices on any output or reports from the
         Software and Tower Modules prior to providing them to any governmental
         agency. Customer agrees that it shall not export the Software or Tower
         Modules with AgencyPort's prior written consent (which shall not be
         unreasonably withheld).

         16.6. CHOICE OF LAW; VENUE. This Agreement will be governed by the laws
         of The Commonwealth of Massachusetts without regard to its principles
         of conflicts of laws. The parties acknowledge and agree that any
         litigation arising from or relating to this Agreement will be filed and
         prosecuted before a court of competent subject matter jurisdiction in
         Boston, Massachusetts. The parties consent to the jurisdiction of such
         courts over them, acknowledge to the convenience, efficiency and
         fairness of proceeding in such courts, and covenant not to assert any
         objection to proceeding in such courts based on the alleged
         inconvenience, inefficiency or unfairness of such courts.

         16.7. INDEPENDENT CONTRACTORS. Each party and its respective employees
         are independent contractors in relation to one another with respect to
         all matters arising under this Agreement. Nothing herein will be deemed
         to establish a partnership, joint venture, agency, association or
         employment relationship between the parties.

         16.8. ENFORCEABILITY. If any provision of this Agreement is
         unenforceable, the remaining provisions will remain in effect, to be
         construed as if the unenforceable provisions were originally deleted.

         16.9. HEADINGS. Headings are for reference purposes only and have no
         substantive effect.

         16.10. ASSIGNMENT. Subject to Section 5.1, neither party shall have the
         right to assign this Agreement or any rights, duties or obligations
         hereunder to any person, without the prior written consent of the other
         party. This Agreement shall inure to the benefit of and be binding upon
         the permitted successors, permitted legal representatives, and
         permitted assignees of the parties hereto.

         16.11. COUNTERPARTS. This Agreement may be executed in one or more
         counterparts, each of which shall be deemed an original, but all of
         which together shall be one and the same instrument.

                                      -17-
<PAGE>
*CONFIDENTIAL INFORMATION HAS BEEN OMITTED AND FILED                Confidential
SEPARATELY WITH THE SEC.

                                    EXHIBIT A
                                SUPPORT SERVICES

The payment of the Annual Support Services Fee set forth in Addendum 8.1 below
shall entitle Customer to receive AgencyPort Support Services with respect to
the Software consisting of Maintenance (as described below), Defect Correction
(as described below), Training (as described below) and telephone assistance
from AgencyPort via a toll free number for resolution of technical problems and
for operating questions during AgencyPort's normal business hours of 8:30AM to
5:00PM Eastern Time. Response times for all Support Services will vary depending
upon the severity of the problem reported, as determined by AgencyPort in its
reasonable discretion.

MAINTENANCE. AgencyPort agrees to annually provide to Customer, via the Hosting
Environment or otherwise, as applicable, functionality Updates to the Software
to the extent such Updates are provided by AgencyPort to all of its customers
generally for the purpose of maintenance or correction to the Software and
improvements to the Software.

DEFECT CORRECTION. Correction of defects by AgencyPort is conditioned on (i)
Customer's notifying AgencyPort of the claimed defect and furnishing AgencyPort
with adequate supporting documentation and details to substantiate the claim and
assisting AgencyPort in the identification and cause of the defect and (ii) the
problem being capable of reproduction on properly functioning equipment
controlled by AgencyPort and (iii) the problem not being the result of modules
created exclusively by Tower.

AgencyPort will classify and respond to defects as follows:

o  A "Critical Defect" is defined as a defect in the Software or a Tower Module,
   which causes the Software or such Tower Module, as applicable, to be
   inoperable, results in unrecoverable abnormal program termination, or
   prevents the Software or such Tower Module, as applicable, from operating
   without any commercially reasonable work-around. For Critical Defects, the
   AgencyPort support team will begin work within two hours of notification, if
   within AgencyPort's regular business hours, or at the beginning of the next
   business day, if outside of AgencyPort's regular business hours, and will use
   commercially reasonable efforts thereafter during and after regular business
   hours until the defect is corrected with a goal of completing all corrections
   as quickly as possible after Customer's notice.

o  A "Major Defect" is defined as a defect in the Software or a Tower Module
   that is identical to a Critical Defect, but for which AgencyPort determines
   in its sole discretion that a work-around can be reasonably implemented so
   that the Software or such Tower Module, as applicable, materially performs
   the principal functions of the Software or such Tower Module, as applicable,
   in accordance with the performance description in the user documentation. For
   Major Defects, the AgencyPort support team will begin work within one
   business day of notification and will use commercially reasonable efforts
   thereafter until an acceptable work-around or fix is found with a goal of
   completing the work-around as quickly as possible after Customer's notice.

o  A "Minor Defect" shall be defined as a defect in the Software or a Tower
   Module or user documentation that causes a minor inconvenience to the user,
   but that constitutes a deficiency with respect to the applicable user
   documentation for the Software or such Tower Module, as applicable. For Minor
   Defects, the AgencyPort support team will begin work and use commercially
   reasonable efforts to correct the defect within a reasonable period of time
   after notification and will keep the customer informed at regular intervals
   of the status in remedying Minor Defects.

It shall be deemed a material breach of this Agreement in the event that
AgencyPort shall fail: (a) to correct a Critical Defect or a Major Defect within
five (5) business days three (3) times during any ninety (90) day period;
provided, however, that in the event such Critical Defect or a Major Defect
occurs as a result of an Update, such Critical Defect or a Major Defect in and
of itself shall not be deemed to result in a material breach if AgencyPort,
within a 5-day period, removes such Update and restores the Software to the
state such Software was in immediately prior to such Update; provided, however,
that such restoration shall not relieve AgencyPort of its obligations to provide
such Update subject to and in accordance with this Agreement. Upon the
occurrence of any failure to correct such Critical Defect or a Major Defect in
accordance with the immediately preceding sentence, Customer may in its sole
discretion and without prejudice to any of Customer's other rights and remedies
under this Agreement, any Development Plan, or at law or in equity, terminate
this Agreement and/or the relevant Development Plan, as determined by the
Customer in its sole discretion, in which event AgencyPort shall immediately
refund all amounts paid by the Customer to AgencyPort under the relevant
Development Plan.

                                      -18-
<PAGE>
*CONFIDENTIAL INFORMATION HAS BEEN OMITTED AND FILED                Confidential
SEPARATELY WITH THE SEC.

TRAINING SERVICES. AgencyPort agrees to provide seminars at a minimum
semi-annually that will cover systems architecture, the SDK and other topics
related to the Software.

ADDENDUM 8.1:  FEES

KEYONCE LICENSE FEE.  $ *, due and payable upon execution of this Agreement.

MONTHLY HOSTING FEES. Based on the number of Authorized Users designated by
Tower on the last day of each month as set forth below. Upon delivery of the
Deliverables of phase 1 and election by Tower to have AgencyPort host the
Software, Tower will commence payment of a monthly hosting fee for the number of
Authorized Users for whom usernames and passwords are issued, initially $ * (as
may be adjusted for a greater number of Authorized Users). Tower shall notify
AgencyPort from time to time of the addition or deletion of any Authorized
Users.

         ----------------- ----------------- ---------------------------------
         No. of users      Monthly Fee       Comments
         ----------------- ----------------- ---------------------------------

         ----------------- ----------------- ---------------------------------
         0 - 250           $ *               Minimum fee
         ----------------- ----------------- ---------------------------------
         250-500           $ *
         ----------------- ----------------- ---------------------------------
         500-1000          $ *
         ----------------- ----------------- ---------------------------------
         1000-2000         $ *
         ----------------- ----------------- ---------------------------------
         2000-3000+        $ *               Fees for implementations with
                                             over 3,000 users will vary
         ----------------- ----------------- ---------------------------------

AgencyPort and Tower agree to work together in good faith to implement a
mutually agreeable resolution in the event Tower's number of Authorized Users
exceeds three thousand (3,000) persons, including, without limitation, payment
by Tower of at-cost amounts necessary for additional hardware and support for
such increased capacity.

AgencyPort agrees to support and assist Tower in implementing hosting in another
environment in the event either party terminates Hosting Services.

ANNUAL SUPPORT SERVICES FEES. There shall be no charge for Support Services
during the first year of this Agreement. Thereafter, an Annual Support Services
Fee shall be due and payable in advance on each annual anniversary of the
Effective date. Such fee shall be $ * on each of the first and second
anniversary of the Effective Date and shall be subject to increase each
anniversary date thereafter by no more than the Consumer Price Index for the
preceding year.

DEVELOPMENT SERVICES FEES. Development Services fees for adding customized
functionality to the Hosting Environment for Customer shall be due and payable
as set forth in Exhibit B.

PROFESSIONAL SERVICES FEES. AgencyPort shall use commercially reasonable efforts
to provide Professional Services, as reasonably requested by Customer, for items
outside the scope of Development Services set forth in Exhibit B. Tower agrees
to pay for Professional Services at $ * /hr. Professional services will be
billed on a time and material basis.

o  Anticipated Professional Services may include, without limitation, the
   building of the Development Environment, development of the AgencyPort
   Contingency Plan, execution of "dry runs" of the Escrow release process,
   assistance in the development of a "mock" application in the Development
   Environment, and assistance in developing a Tower hosting environment.
   Estimated times for the following appear below as a guide only and shall not
   be binding.

                                      -19-
<PAGE>
*CONFIDENTIAL INFORMATION HAS BEEN OMITTED AND FILED                Confidential
SEPARATELY WITH THE SEC.

o  It is estimated that the building of the Development Environment will take 3
   days of Professional Services.

o  It is estimated that the development of a Contingency Plan will take 3 days
   of Professional Services.

o  It is estimated that the execution of a dry run of the Escrow release process
   will take 5 days of Professional Services.

o  It is estimated that assistance in the development of a mock application will
   take 5 days of Professional Services.

o  It is estimated that assistance in developing a Tower hosting environment
   will take 7 days of Professional Services.

o  For all other services, AgencyPort and Tower agree to use good faith efforts
   to evaluate requests for services as additional statements of work and
   determine mutually acceptable fees.

In addition to fees for Professional Services, Tower agrees to pay, reasonable
out-of-pocket expenses such as travel and living expenses incurred by AgencyPort
personnel for required travel, such travel being approved by Customer prior to
the travel occurrence.

ESCROW FEES. Tower agrees to pay $1,000 per year to AgencyPort to cover Escrow
costs, commencing upon the first Deposit with DSI pursuant to Section 9.7(a).
Subject to payment by Tower as set forth in the immediately preceding sentence,
AgencyPort agrees to pay all DSI invoices for the escrow of the Deposits during
the term of this Agreement.

CREDIT FOR WARRANT EXERCISE PRICE. AgencyPort and Tower agree that Tower shall
be entitled to a credit towards fees payable for Development Services and
Support Services in an amount equal to the exercise price of Warrant No. 1
pursuant to Section 2(a)(ii) of the Warrant Purchase Agreement between
AgencyPort and Tower of even date herewith.

                                      -20-
<PAGE>
*CONFIDENTIAL INFORMATION HAS BEEN OMITTED AND FILED                Confidential
SEPARATELY WITH THE SEC.

                                    EXHIBIT B
                              DEVELOPMENT SERVICES

AgencyPort agrees to perform the development services set forth herein
("Development Services") for Customer for no less than an aggregate total of $
*. AgencyPort and the Customer agree to work together to prepare a detailed
description of the Specifications and criteria for Acceptance Testing for each
phase of Development Services outlined below, as the same may be amended by
mutual agreement of the parties, to be set forth in one or more development
plans (each a "Development Plan"). Each Development Plan shall (i) be in writing
signed by duly authorized representatives of each party, (ii) be subject to the
terms and conditions set forth in this Agreement, (iii) include an estimate of
the time, materials and cost associated with completing the Development Plan,
(iv) include Specifications and a detailed description of the work to be
performed by the AgencyPort, and (v) include criteria for Acceptance Testing of
the relevant Tower Modules by the Customer. Additionally, each Development Plan
may provide that the particular Tower Modules at issue may be delivered in
phases.

Tower will make payment of such $ * to AgencyPort according to the fees and
Deliverables schedule set forth below, subject to any relevant Development Plan:

1. AgencyPort agrees to develop and deliver custom Tower Modules. These add-on
   modules will include the following functionality to be delivered in phases as
   determined by one or more Development Plans.

   a. Rating, quoting, and binding for the following lines of business for NY,
      NJ & PA:
      i. ISO CPP/CFP/CGL (Commercial Package, Mono-Property, & Mono-Liability)
         i.  ISO HOP/HOS (Homeowners: 1-2 Family & 3-4 Family, & Personal
             Liability)
         ii. ISO DFP (Dwelling Fire: 1-2 Family & 3-4 Family, & Personal
             Liability)

   b. AgencyPort will create a custom Tower Module from its ISO BOP, Commercial
      Auto (ISO BAP) and WCP modules.

   c. Risk clearance with logic using one or more of the following, as mutually
      agreed upon by the parties:

      i.   Insured name

      ii.  Risk location

      iii. FEIN#

      iv.  SS#

   d. Policy administration system interface to Allenbrook Phoenix system

   e. Agency management system interface to AMS & Applied Systems

2. AgencyPort agrees to deliver the first Tower Modules as part of phase 1 as
   set forth in the Development Plan.

                                      -21-
<PAGE>
*CONFIDENTIAL INFORMATION HAS BEEN OMITTED AND FILED                Confidential
SEPARATELY WITH THE SEC.

<TABLE>
<CAPTION>
   ---------------- -------------- --------------- ---------------------------------- --------------- ---------------
   MAJOR            EST. START     EST. END DATE   DELIVERABLES                       PAYMENT         TOTAL
   MILESTONES       DATE
   ---------------- -------------- --------------- ---------------------------------- --------------- ---------------
<S>                 <C>            <C>             <C>                                <C>             <C>
   Phase 1 (10      6/17/2002      8/30/2002       1. Agency management interface     $          *    $          *
   weeks)                                             to AMS' Sejitta
                                                   2. Policy administration           $          *
                                                      interface to Allenbrook'
                                                      Phoenix for CPP
                                                   3. Risk clearance
                                                   4. Rating quoting and binding      $          *
                                                      for ISO CPP
   ---------------- -------------- --------------- ---------------------------------- --------------- ---------------
   Phase 2          9/2/2002       10/25/2002      1. Agency management interface     $          *    $          *
   (8 weeks)                                          to Applied System.
                                                   2. Policy administration           $          *
                                                      interface to Allenbrook
                                                      Phoenix for ISO Homeowners
                                                      (HOP/HOS/HOC)
                                                   3. Rating and binding for ISO      $          *
                                                      Homeowners
   ---------------- -------------- --------------- ---------------------------------- --------------- ---------------
   Phase 3          10/28/2002     12/6/2002       1. Policy administration           $          *    $          *
   (6 weeks)                                          interface to Allenbrook
                                                      Phoenix for ISO Dwelling (DFP)
                                                   2. Rating and binding for ISO      $          *
                                                      Dwelling (DFP)
   ---------------- -------------- --------------- ---------------------------------- --------------- ---------------
   Phase 4          12/9/2002      1/17/2003       1. Policy administration           $          *    $          *
   (6 weeks)                                          interface to Allenbrook
                                                      Phoenix for ISO Business
                                                      Owners (BOP)
                                                   2. Rating, quoting and
                                                      binding $ * for ISO
                                                      Business Owners (BOP)
   ---------------- -------------- --------------- ---------------------------------- --------------- ---------------
   Phase 5          1/20/2003      2/14/2003       1. Policy administration           $          *    $          *
   (6 weeks)                                          interface to Allenbrook
                                                      Phoenix for Workers
                                                      Compensation (WCP)
                                                   2. Rating, quoting, and
                                                      binding $ * for Workers
                                                      Compensation (WCP)
   ---------------- -------------- --------------- ---------------------------------- --------------- ---------------
   Phase 6          2/17/2003      3/21/2003       1. Policy administration           $          *    $          *
   (6 weeks)                                          interface to Allenbrook
                                                      Phoenix for ISO Commercial
                                   Auto (BAP)
                                                   2. Rating, quoting, and
                                                      binding $ * for ISO
                                                      Commercial Auto (BAP)
   ---------------- -------------- --------------- ---------------------------------- --------------- ---------------
                                                                                      TOTAL           $          *
   ---------------- -------------- --------------- ---------------------------------- --------------- ---------------
     Note: All delivery dates are estimates subject to applicable Development Plans.
</TABLE>

* % of Phase 1 Development Services fees ($ * ) is due and payable upon
execution of this Agreement with the balance (no less than $ * ) due upon
delivery and Acceptance of the Phase 1 Deliverables.

3. It is estimated that Phase 2 through Phase 6 will cost an estimated total of
   $ * . AgencyPort and Tower mutually agree to re-estimate Phase 2 through
   Phase 6 costs at the initiation of each Phase.

4. Tower acknowledges and agrees that Tower shall pay, as incurred, the cost of
   any third party consulting services required to deliver the policy
   administration system interface to the Allenbrook Phoenix system. Any such
   third party consultant shall be subject to Tower's prior written consent.

5. The above estimate is based on the following assumptions and subject to
   adjustment as set forth below:

                                      -22-
<PAGE>
*CONFIDENTIAL INFORMATION HAS BEEN OMITTED AND FILED                Confidential
SEPARATELY WITH THE SEC.

   a. Tower will provide resources to aid in the analysis and testing of the
      Software.

   b. Tower will provide a project manager to assist AgencyPort throughout the
      project. This individual will be the primary contact for the AgencyPort
      project manager. He/she will take responsibility for providing support and
      resources as needed.

   c. The AgencyPort team will report directly to the individual designated as
      the Tower Project Manager.

   d. A separate 'instance' of the KeyOnce system will be created and dedicated
      to Tower Insurance Group.

   e. The existing KeyOnce system will be "private-labeled" to create a
      Tower-branded version of the Software. AgencyPort's logo will be replaced
      by Tower's logo throughout the system, with the exception of "Powered by
      KeyOnce" and AgencyPort proprietary notices. Additional look and feel
      updates will be discussed during the analysis phases of the project.

   f. Duck Creek will be used as the rating engine. The Duck Creek Author will
      be deployed at designated Tower desktops.

   g. Tower will develop all rate manuscripts using the Duck Creek Author.

   h. AgencyPort will work with Tower personnel to finalize requirements. Tower
      personnel will be made available within a reasonable time frame to
      accomplish. analysis tasks.

   i. Tower will provide technical resources to assist AgencyPort throughout the
      project, specifically during the definition, development, testing, and
      implementation of any interface to Tower systems.

   j. The majority of project work will be completed on AgencyPort premises.
      Meetings and demonstrations will be conducted at Tower or AgencyPort
      offices as mutually determined.

   k. AgencyPort is responsible for all hardware and system software
      environments for the KeyOnce Hosting Environment including testing and
      production. AgencyPort will be responsible for other software, hardware
      and development tools, as required and agreed upon by AgencyPort.

   l. Timelines outlined above are meant as estimates only.

   m. In future phases (after phase 1) Tower will have the option to provide one
      developer at any one time to the AgencyPort KeyOnce development team for
      Tower specific development projects at Tower's expense. Each such
      developer shall be subject to the approval of AgencyPort's Director of
      Engineering as a qualified resource. The developer agrees to work in
      AgencyPort offices.

   n. Tower has the right, consistent with the terms of this Agreement, to
      develop separate and distinct, stand-alone, web-based software
      applications or components that are independent from the Software which
      may be deployed in the same web environment as the Software.

6. If one or more of the above assumptions are incorrect or amended due to a
   change by Customer, fees for Development Services will be adjusted.

7. Any development work requested at any time that is outside of the scope
   outlined above will be estimated and executed upon after the completion of
   the Development Services outlined in this Exhibit B.

8. AgencyPort and Customer agree to use good faith efforts to evaluate requests
   submitted as additional statements of work and determine mutually acceptable
   increased fees based on such requested revisions.

9. As part of the Development Services with respect to the Tower Modules, prior
   to the Acceptance of each such Tower Module, AgencyPort shall provide
   training to the Customer according to reasonable terms and conditions to be
   mutually agreed upon by the parties hereto prior to the time of any such
   training, in the use, operation and maintenance of the Tower Modules
   developed hereunder. Each training program, if any, shall be designed and
   conducted in a manner so as to enable the Customer's personnel to provide
   ongoing training and support for the Customer's employees, agents and
   consultants. Training will be conducted at the Customer's offices at times
   reasonably requested by the Customer and agreed to by AgencyPort. After
   Acceptance of the Tower Modules, training shall be provided in accordance
   with Exhibit A.

                                      -23-
<PAGE>
*CONFIDENTIAL INFORMATION HAS BEEN OMITTED AND FILED                Confidential
SEPARATELY WITH THE SEC.

                                    EXHIBIT C
                              KEYONCE FUNCTIONALITY

KeyOnce Software v. 2.0 has the following functionality:

o  Offers a web-based, graphical user interface for Tower agents to
   electronically quote and submit an application over the internet to Tower
   underwriters

o  Offers a web-based, graphical user interface for Tower agents to access
   product and eligibility information

o  Offers a web-based, graphical user interface for Tower agents to bind without
   any underwriter intervention

o  Provides an integrated, comprehensive rating solution using Duck Creek
   Technologies Example Platform

o  Offers a web-based, graphical user interface for Tower agents to create
   custom proposals and ACORD forms.

o  Provides Tower agents with a Work Queue through a web-based, graphical user
   interface to manage submissions and communication with Tower underwriters

o  Provides Tower agents with online help and insurance specific information
   through a web-based, graphical user interface

o  Provides Tower underwriters a web-based, graphical user interface to manage
   product information, rates, and eligibility rules.

o  Provides Tower underwriters a custom work queue to manage incoming
   submissions through a web-based, graphical user interface.

o  Provides Tower underwriters a web-based, graphical user interface to automate
   follow-up communication with the agent to gather outstanding documentation

                                      -24-
<PAGE>
*CONFIDENTIAL INFORMATION HAS BEEN OMITTED AND FILED                Confidential
SEPARATELY WITH THE SEC.

                                    EXHIBIT D
                                 CO-DEVELOPMENT

o  Any Tower Modules may be used by either party in any way it deems appropriate
   consistent with the terms of this Agreement provided that the confidential
   and proprietary information of the other party is not disclosed to a third
   party and provided that Tower does not attempt to resell or distribute the
   Tower Modules in any way, or use the Tower Modules in any manner which is
   competitive with the business of AgencyPort.

o  AgencyPort agrees that Tower will-have rights to Tower Modules, for use in
   creating additional modules for the Software provided that the enhancements
   and modifications are for uses specifically set forth in this Agreement.

o  AgencyPort agrees to make reasonably available services requested by Tower to
   assist in building a Development Environment that would contain of all
   Software licensed to Tower under this Agreement and the Tower Modules, and to
   identify the hardware and software components necessary to construct the
   Development Environment.

   o  AgencyPort agrees to grant Tower access to all components in the
      Development Environment for review.

   o  The Development Environment will be built in accordance with AgencyPort
      specifications.

   o  The Development Environment will be accessible only to employees,
      subcontractors and agents of Tower on a need-to-know basis.

   o  Tower agrees to use specific procedures to secure the Development
      Environment as put forth by AgencyPort.

                                      -25-
<PAGE>
*CONFIDENTIAL INFORMATION HAS BEEN OMITTED AND FILED                Confidential
SEPARATELY WITH THE SEC.

                                    EXHIBIT E
                                HOSTING SERVICES

1. LIMITATIONS ON USE AND ACCESS. The Software will be accessible only to the
Authorized Users each using an individual username and password set up by
Customer via the Software. AgencyPort will provide to Customer the capability
necessary to set up such passwords and to allow the number of Authorized Users
paid for by Customer to simultaneously access the Software in accordance with
the provisions of this Agreement. Customer represents, warrants and covenants
that Authorized Users will agree to access the Software solely in connection
with Customer's exercise of the rights and licenses granted to it hereunder.
Except as expressly provided in this Agreement and any exhibits attached hereto,
Customer will have no right to access the Software other than through the
Hosting Environment.

2. HOSTING EQUIPMENT; CLIENT COMPUTER. AgencyPort, either directly or through
the use of third parties retained by AgencyPort and at AgencyPort's expense,
will dedicate to Customer such Hosting Equipment connecting the Hosting
Environment to the World Wide Web, Internet or other suitable communications
services as are commercially reasonable and necessary to provide Customer with
access to the Hosting Environment. As between the parties, the Hosting Equipment
will at all times be the property of AgencyPort. Customer, at its sole expense,
will be responsible for providing each Authorized User the equipment, software,
telecommunications connections and any other materials necessary to access the
Internet, except as such materials are provided by Authorized Users.

3. MAINTENANCE OF HOSTING ENVIRONMENT AND SOFTWARE. In order to provide Customer
with commercially reasonable access to the Software, AgencyPort and Customer
will periodically schedule the complete or partial shutdown of the Hosting
Equipment for maintenance, bug fixes, Updates, or other reasons ("Scheduled
Maintenance"), no more than quarterly. AgencyPort will use commercially
reasonable efforts to conduct Scheduled Maintenance during weekends or other off
peak hours. The occurrence of any Scheduled Maintenance will not limit or affect
Customer's obligation to pay AgencyPort the fees due hereunder.

4. SERVICE INTERRUPTIONS. Customer will promptly notify AgencyPort via telephone
or e-mail of any unexpected or unscheduled interruption in the ability of
Authorized Users to access the Hosting Environment ("Service Interruption").
AgencyPort will likewise promptly notify Customer via telephone or e-mail of any
Service Interruption. AgencyPort will respond to any Service Interruption within
two hours of notification if within AgencyPort's normal business hours or at the
beginning of the next business day if outside of AgencyPort's regular business
hours. AgencyPort shall use commercially reasonable efforts thereafter until the
Service Interruption is corrected. The occurrence of any Service Interruption
will not limit or affect Customer's obligation to pay AgencyPort the hosting
fees due hereunder.

5. TOWER HOSTING ENVIRONMENT. Upon termination of the Hosting Services pursuant
to the terms of this Agreement and at the written request of Customer,
AgencyPort shall use commercially reasonable efforts to provide Customer with
the services necessary to design and implement a hosting environment, provided
that such hosting environment shall be for Customer's business operations only
and shall not be used to host the Software in any manner which is competitive
with the business of AgencyPort. Such services shall be deemed Professional
Services under Addendum 8.1, and subject to payment of Professional Services
under Addendum 8.1.

                                      -26-
<PAGE>
*CONFIDENTIAL INFORMATION HAS BEEN OMITTED AND FILED                Confidential
SEPARATELY WITH THE SEC.

                                    EXHIBIT F
                                SDK FUNCTIONALITY

The following functionality and additional functionality as reasonably requested
by Tower and consented to by AgencyPort (which consent shall not be unreasonably
withheld if such additional functionality is commercially reasonable in
AgencyPort's determination) will be included in the AgencyPort SDK:

o  A description of the software architecture

o  An overview of the AgencyPort Software Framework.

o  Descriptions of the different software components

o  Descriptions of the interplay/processing of the software components

o  Sample source code for all parts of the framework.

o  A description of the processing flow

o  A description of the source code structure

o  A description of the various tools we use in development

o  A description of the build and deploy procedure

o  Application programming interfaces (API's) for specific parts of the
   framework that can be extended for all reasonably requested Tower
   functionality that is mutually agreed upon by AgencyPort.

                                      -27-
<PAGE>
*CONFIDENTIAL INFORMATION HAS BEEN OMITTED AND FILED                Confidential
SEPARATELY WITH THE SEC.

                                    EXHIBIT G
                            FORM OF ESCROW AGREEMENT

                                      -28-<PAGE>

                                                                   Exhibit 10.22

                                   QUOTA SHARE
                              REINSURANCE AGREEMENT

                  (HEREINAFTER REFERRED TO AS THE "AGREEMENT")

                                     BETWEEN

                       TOWER INSURANCE COMPANY OF NEW YORK
                               NEW YORK, NEW YORK

                   (HEREINAFTER REFERRED TO AS THE "COMPANY")

                                       AND

                   CONVERIUM REINSURANCE (NORTH AMERICA) INC.

                  (HEREINAFTER REFERRED TO AS THE "REINSURER")

                                    ARTICLE 1

BUSINESS COVERED

This Agreement shall indemnify the Company in respect of the net excess
liability as herein provided and specified which may accrue to the Company as a
result of Ultimate Net Loss and Loss Adjustment Expenses subject to this
Agreement, under Policies written by the Company and classified as Property or
Liability, following the Company's original Policies, including: Fire and Allied
Lines, Commercial Multiple Peril, Homeowners Multiple Peril and Liability,
Workers' Compensation, Inland Marine and Automobile Liability and Physical
Damage, all subject to the terms, conditions and exclusions of this Agreement.

                                    ARTICLE 2

FOLLOW THE FORTUNES

The Reinsurer's liability shall attach simultaneously with that of the Company
and shall be subject in all respects to the same risks, terms, conditions,
interpretations, waivers and to the same modifications, alterations, and
cancellations as the respective Policies issued by the Company, the true intent
of this Agreement being that the Reinsurer shall, in every case to which this
Agreement applies, follow the fortunes of the Company, subject always to the
limits, terms, conditions and exclusions set forth in this Agreement.

<PAGE>

                                    ARTICLE 3

TERM

A.       This Agreement shall take effect 12:01 a.m., Eastern Standard Time,
         January 1, 2004 and shall apply to all losses occurring on or after
         12:01 a.m., Eastern Standard Time, January 1, 2004 in respect of all
         new and renewal Policies written on and after 12:01 a.m., Eastern
         Standard Time, January 1, 2004 until 12:01 a.m., Eastern Standard Time,
         January 1, 2005.

         At 12:01 a.m., Eastern Standard Time, January 1, 2005, the Reinsurer
         shall be liable for all losses occurring in respect of all inforce
         Policies until the earlier of the expiration or the anniversary date of
         the Company's Policies, but not to exceed 12 (twelve) months plus odd
         time. In the event that any Policy is required by statute or regulation
         or order to be continued in force, the Reinsurer will continue to
         remain liable with respect to each such Policy until the Company may
         legally cancel, non-renew or otherwise eliminate liability under such
         Policy.

B.       The Company and the Reinsurer may agree to terminate this Agreement or
         some portion of the Business Covered on a cut-off basis. Upon such
         termination, the Reinsurer shall incur no liability for losses
         occurring subsequent to the effective date of termination and the
         Reinsurer shall return to the Company the Reinsurer's portion of the
         unearned premium reserve for all inforce Policies less previously paid
         Ceding Commissions on such unearned premium reserve.

                                    ARTICLE 4

TERRITORY

In respect of Business Covered by the Company, this Agreement shall apply to New
York, New Jersey, Pennsylvania and Connecticut.

To the extent that the Company becomes authorized to transact insurance in any
jurisdiction in addition to those set forth above, the Company may request that
the Reinsurer amend this Agreement to include Policies issued in such
jurisdictions. With respect to Policies issued in New Jersey, Pennsylvania and
Connecticut ("Non-New York Policies"), the maximum overall New Written Premium
that may be ceded by the Company to this Agreement shall be 10% (ten percent) of
Net Written Premium in the aggregate for these states (the "Premium Cap"). To
the extent that the Company's overall Net Written Premium for Non-New York
Policies exceeds the Premium Cap, the Cession Percentage for Non-New York
Policies shall be adjusted by dividing 10% (ten percent) of Net Written Premium
by the actual percentage of Net Written Premium and multiplying that result by
the Cession Percentage elected in the Article 7, Definitions, definition A.

                                       2
<PAGE>

                                    ARTICLE 5

EXCLUSIONS

This Agreement shall not apply to and specifically excludes:

A.       Nuclear Incident, in accordance with the following clauses attached
         hereto:

         1.       Nuclear Incident Exclusion Clause - Physical Damage -
                  Reinsurance - U.S.A. - NMA 1119;

         2.       Nuclear Incident Exclusion Clause - Liability - Reinsurance -
                  U.S.A. - NMA 1590;

B.       War Risks, in accordance with the War Risks Exclusion Clause attached
         hereto;

C.       Insolvency, in accordance with the Insolvency Funds Exclusion Clause
         attached hereto;

D.       Liability assumed by the Company as a member of any pool, association
         or syndicate, in accordance with the Pools, Associations and Syndicates
         Exclusion Clause attached hereto;

E.       Earthquake, when written as such;

F.       Liability arising out of ownership, maintenance or use of any aircraft
         or flight operations;

G.       Professional Liability, when written as such, however not to exclude
         when written as part of a package Policy or when written in conjunction
         with other Policies issued by the Company;

H.       Insolvency and Financial Guarantee;

I.       Any acquisitions of companies or books of business outside of the
         normal course of business ("agent rollovers") without the prior written
         consent of the Reinsurer hereon;

J.       Asbestos liabilities of any nature;

K.       Pollution liabilities of any nature;

L.       Assumed reinsurance with the exception of inter-affiliate reinsurance;

M.       Ex gratia payments in excess of $3,000 (three thousand dollars).

                                       3
<PAGE>

                                    ARTICLE 6

COVERAGE, RETENTION, PER RISK-PER LOSS OCCURRENCE LIMITS AND AGGREGATE LIMIT

A.       Coverage - The Reinsurer shall indemnify the Company for the Cession
         Percentage of the net retained liability of the Company for all
         Ultimate Net Loss and Loss Adjustment Expenses billed by in-house
         adjusters, defense attorneys, and other claims personnel of Tower
         Insurance Company of New York/Tower Risk Management who bill the
         Company for their services on an hourly basis, subject to the terms,
         conditions, and exclusions of this Agreement, the Retention, Per Risk -
         Per Loss Occurrence Limits and the Aggregate Limit hereon. The
         Reinsurer shall only be obligated to indemnify the Company for
         underlying Policies where the Reinsurer has been paid respective
         premiums for such underlying Policies by the Company.

B.       Retention - The Company shall retain net and unreinsured such portion
         of all Ultimate Net Loss in respect of the first 95.0% (ninety five
         point zero percent) of Ultimate Net Loss Ratio as shall equal 100% (one
         hundred percent) less the Cession Percentage and shall retain 100% (one
         hundred percent) of Ultimate Net Loss in excess of the first 95.0%
         (ninety five point zero percent) of Ultimate Net Loss Ratio.

C.       Per Risk - Per Loss Occurrence Limits - In no event shall the
         Reinsurer's limit of liability exceed its pro rata share of $1,000,000
         (one million dollars) per risk, per Loss Occurrence in respect of
         property business and $1,000,000 (one million dollars) per Loss
         Occurrence for liability business. In addition, in no event shall the
         Reinsurer's aggregate limit of liability exceed 10% (ten percent) of
         Reinsurance Premium earned for the Term in respect of any one Loss
         Occurrence in respect of ceded property catastrophe Ultimate Net Loss
         plus associated Loss Adjustment Expenses. Furthermore, in no event
         shall the Reinsurer's aggregate limit of liability exceed 10% (ten
         percent) of Reinsurance Premium earned for the Term in respect of the
         combined amounts of property and casualty Ultimate Net Loss plus
         associated Loss Adjustment Expenses emanating from Terrorist Acts
         whether one or multiple Terrorist Acts.

D.       Aggregate Limit- The Reinsurer's maximum overall aggregate Ultimate Net
         Loss and Loss Adjustment Expense liability under this Agreement shall
         be 95.0% (ninety five point zero percent) of ultimate Reinsurance
         Premium earned by the Reinsurer.

                                    ARTICLE 7

DEFINITIONS

A.       "Cession Percentage" as used in this Agreement shall be 60% (sixty
         percent) for the new and renewal Business Covered written during the
         period January 1, 2004 through December 31, 2004, both days inclusive.
         However, the Cession Percentage may be reduced to a minimum cession
         percentage of 25% (twenty five percent) for each quarter starting with
         the calendar quarter beginning July 1, 2004 and only if the Company has
         increased its December 31, 2003 Statutory Surplus Level by more than
         20% (twenty percent) on or before June 30, 2004. The Company must
         advise the Reinsurer, with 30 (thirty) days advance written notice, of
         its election to reduce the Cession Percentage for the forthcoming
         quarter.

                                       4
<PAGE>

B.       "Declaratory Judgment Expenses" as used in this Agreement shall mean
         legal expenses paid by the Company in the investigation, analysis,
         evaluation or litigation of a coverage action between the Company and
         any other party to determine if there is coverage under a Policy or
         Policies issued by the Company for a specific claim or specific claims
         reinsured under this Agreement or which would be reinsured under this
         Agreement had the Company not been successful in the coverage action.

C.       "Loss Adjustment Expenses" as used in this Agreement shall mean all
         costs and expenses allocable to a specific claim that are incurred by
         the Company in the investigation, appraisal, adjustment, settlement,
         litigation, defense or appeal of a specific claim, including court
         costs and costs of supersedeas and appeal bonds and including a)
         pre-judgment interest, unless included as part of the award or
         judgment; b) post-judgment interest and c) legal expenses and costs
         incurred in connection with coverage questions and legal actions
         connected thereto, including pro rata Declaratory Judgment Expenses.

         Loss Adjustment Expenses shall include in-house adjusters, defense
         attorneys, and other claims personnel of Tower Insurance Company of New
         York/Tower Risk Management who bill the Company for their services on
         an hourly basis.

D.       "Loss Occurrence" shall have the following meanings:

         1.       As respects property losses, "Loss Occurrence" shall mean the
                  sum of all individual losses directly occasioned by any one
                  disaster, accident or loss or series of disasters, accidents
                  or losses arising out of one event which occurs within the
                  area of one state of the United States or province of Canada
                  and states or provinces contiguous thereto and to one another.
                  However, the duration and extent of any one "Loss Occurrence"
                  shall be limited to all individual losses sustained by the
                  Company occurring during any period of 168 (one hundred sixty
                  eight) consecutive hours arising out of and directly
                  occasioned by the same event except that the term "Loss
                  Occurrence" shall be further defined as follows:

                  a.  As regards windstorm, hail, tornado, hurricane, cyclone,
                      including ensuing collapse and water damage, all
                      individual losses sustained by the Company occurring
                      during any period of 72 (seventy two) consecutive hours
                      arising out of and directly occasioned by the same event.
                      However, the event need not be limited to one state or
                      province or states or provinces contiguous thereto.

                  b.  As regards riot, riot attending a strike, civil commotion,
                      vandalism and malicious mischief, all individual losses
                      sustained by the Company occurring during any period of 72
                      (seventy two) consecutive hours within the area of one
                      municipality or county and the municipalities or counties
                      contiguous thereto arising out of and directly occasioned
                      by the same event. The maximum duration of 72 (seventy
                      two) consecutive hours may be extended in respect of
                      individual losses which occur beyond such 72 (seventy two)
                      consecutive hours during the continued occupation of an
                      assured's premises by strikers, provided such occupation
                      commenced during the aforesaid period.

                                       5
<PAGE>

                  c.  As regards earthquake (the epicenter of which need not
                      necessarily be within the territorial confines referred to
                      in the opening paragraph of this article) and fire
                      following directly occasioned by the earthquake, only
                      those individual fire losses which commence during the
                      period of 168 (one hundred sixty eight) consecutive hours
                      may be included in the Company's "Loss Occurrence".

                  d.  As regards "Freeze", only individual losses directly
                      occasioned by collapse, breakage of glass and water damage
                      (caused by bursting of frozen pipes and tanks) may be
                      included in the Company's "Loss Occurrence".

                  For all "Loss Occurrences" the Company may choose the date and
                  time when any such period of consecutive hours commences
                  provided that it is not earlier than the date and time of the
                  occurrence of the first recorded individual loss sustained by
                  the Company arising out of that disaster, accident or loss and
                  provided that only one such period of 168 (one hundred sixty
                  eight) consecutive hours shall apply with respect to one event
                  except for those "Loss Occurrences" referred to in
                  sub-paragraphs 1 and 2 of this Article where only one such
                  period of 72 (seventy two) consecutive hours shall apply with
                  respect to one event.

                  No individual losses occasioned by an event that would be
                  covered by 72 (seventy two) hours clauses may be included in
                  any "Loss Occurrence" claimed under the 168 (one hundred sixty
                  eight) hours provision.

         2.       As respects casualty losses, "Loss Occurrence" shall mean any
                  one accident, disaster, casualty or happening, or series of
                  accidents, disasters, casualties or happenings arising out of
                  or following on one event, regardless of the number of
                  interests insured or the number of Policies responding.

                  Except where specifically provided otherwise in this
                  Agreement, each Loss Occurrence shall be deemed to take place
                  as of the earliest date of loss as determined by any original
                  Policy responding to the Loss Occurrence.

         3.       As respects liability losses (bodily injury and property
                  damage) other than Automobile and Products, and at the option
                  of the Company, "Loss Occurrence" shall mean the sum of all
                  damages sustained by each insured during a period of twelve
                  consecutive months arising out of a continuous or repeated
                  injurious exposure to substantially the same general
                  conditions. For purposes of this definition, the date of loss
                  shall be deemed to be the inception or renewal date of the
                  original Policy of insurance to which payment is charged.

                                       6
<PAGE>

                  As respects occupational disease and cumulative trauma:

                  a.  In case the Company shall, within one original Policy
                      year, sustain several losses arising out of such and
                      occupational or other disease or cumulative trauma of a
                      specific kind or class, suffered by several employees of
                      one original insured, all such losses shall be deemed to
                      arise out of one `occurrence' and the date of the
                      occurrence for reinsurance purposes shall be deemed to be
                      the inception, anniversary or renewal date of the
                      Company's original Policy.

                  b.  With respect to an occupational disease or other disease
                      suffered by more than one employee of one or more
                      employers, such occupational disease or other disease
                      shall be covered under this Agreement if resulting from a
                      sudden and accidental event not exceeding 48 (forty eight)
                      hours in duration. For purposes of this Agreement, a 48
                      (forty eight) hour event will be deemed as one Loss
                      Occurrence. All such losses subsequently arising out of
                      such event and not otherwise classified except as
                      occupational disease or other disease shall be considered
                      as one Loss Occurrence or may be combined with losses
                      classified as other than occupational disease or other
                      disease which arise out of the same event, and the
                      combination of such losses shall be considered as one Loss
                      Occurrence within the meaning hereof.

E.       "Net Earned Premium" shall mean the Net Written Premium of the
         Company's Business Covered less the unearned premium reserve at the
         respective date of calculation.

F.       "Net Written Premium" shall mean gross premium of the Company's
         Business Covered less cancellations and returns and less premium paid
         for specific excess of loss reinsurance above $1,000,000 (one million
         dollars) and facultative reinsurances, if any.

G.       "Policy" or "Policies" shall mean all policies, binders, contracts,
         certificates, or agreements of insurance, whether written or oral, in
         accordance with Business Covered hereunder.

H.       "Terrorist Acts" shall mean any act, or preparation in respect of
         action, or threat of action designed to influence the government de
         jure or de facto of any nation or any political division thereof, or in
         pursuit of political, religious, ideological, or similar purposes to
         intimidate the public or a section of the public of any nation by any
         person or group(s) of persons whether acting alone or on behalf of or
         in connection with any organization(s) or government(s) de jure or de
         facto, and which:

         (i)      involves violence against one or more persons; or

         (ii)     involves damage to property; or

         (iii)    endangers life other than that of the person committing the
                  action; or

         (iv)     creates a risk to health or safety of the public or a section
                  of the public; or

         (v)      is designed to interfere with or to disrupt an electronic
                  system.

         Loss, damage, cost or expense arising out of or in connection with any
         action in controlling, preventing, suppressing, retaliating against, or
         responding to any act of terrorism shall be considered part of
         terrorism Ultimate Net Loss.

                                       7
<PAGE>

I.       "Ultimate Net Loss" shall mean, subject to all limitations in this
         Agreement including the Per Risk - Per Loss Occurrence Limits in
         Article 6, Coverage, Retention, Per Risk-Per Loss Occurrence Limits and
         Aggregate Limit, section C, actual loss or losses, arising out of
         Business Covered hereunder sustained by the Company in respect of
         losses occurring during the Term, including 100% (one hundred percent)
         of Extra Contractual Obligations and 100% (one hundred percent) of
         Excess Policy Limits, subject to the limitations in Article 19, Excess
         Policy Limits and Article 20, Extra Contractual Obligations, after
         making deductions for all recoveries and salvages and inuring specific
         and facultative reinsurance, whether collectible or not. The Reinsurer
         shall not be liable for more than $1,000,000 (one million dollars)
         additional subject Ultimate Net Loss for any one claim in respect of
         Excess of Policy Limits/Extra Contractual Obligations liability and
         $5,000,000 (five million dollars) in the aggregate for all Excess of
         Policy Limits/Extra Contractual Obligations liability.

     J.  "Ultimate Net Loss Ratio" shall mean the ratio of aggregate Ultimate
         Net Losses incurred plus aggregate Loss Adjustment Expenses divided by
         Net Earned Premium as of the date of calculation.

                                    ARTICLE 8

NET RETAINED LINES

This Agreement applies only to that portion of Business Covered which the
Company retains net for its own account, and in calculating the amount of any
Ultimate Net Loss and Loss Adjustment Expenses hereunder and also in computing
the amounts in Article 6, Coverage, Retention, Per Risk-Per Loss Occurrence
Limits and Aggregate Limit, to which this Agreement applies, only Ultimate Net
Loss and Loss Adjustment Expenses in respect of that portion of Business Covered
which the Company retains net for its own account shall be included. The Company
warrants that it will have a maximum net retained line in accordance with
Article 6, Coverage, Per Risk-Per Loss Occurrence Limits and Aggregate Limit for
any one risk.

Recoveries from any form of insurance or reinsurance that protects the Company
against claims which are Subject Business shall inure to the benefit of the
Reinsurer and shall be deducted to arrive at the amount of the Company's
Ultimate Net Loss and Loss Adjustment Expenses.

The amount of the Reinsurer's liability hereunder in respect of any Ultimate Net
Loss and Loss Adjustment Expenses shall not be increased by reason of the
inability of the Company to collect from any other reinsurer, whether specific
or general, any amounts which may have become due from such reinsurer, whether
such inability arises from the insolvency of such reinsurer or otherwise.

                                       8
<PAGE>

                                    ARTICLE 9

REINSURANCE PREMIUM AND REINSURER'S MARGIN

A.       Reinsurance Premium - The Company shall pay to the Reinsurer the
         Cession Percentage of the Net Written Premium as collected for the Term
         of the Agreement (the "Reinsurance Premium"). The Company shall retain
         any and all Reinsurance Premium on a funds withheld basis. A notional
         Funds Withheld Account/Profit Sharing Account shall be calculated by
         the Company and maintained until there is a complete and final release
         of all the Reinsurer's past, present and future obligations and
         liabilities to the Company of any nature whatsoever arising under or
         related to this Agreement. The Company shall credit Net Written Premium
         to the Funds Withheld Account/Profit Sharing Account on a monthly
         basis, and settlements shall be made in accordance with Article 13,
         Accounts, Remittances and Loss Settlements.

         Notwithstanding any provision in this Agreement to the contrary, the
         Company shall assume 100% of the credit risk associated with all
         Reinsurance Premium amounts that it fails to collect from its insureds
         ("Delinquent Premium Amounts"). The Company shall include all
         Delinquent Premium Amounts in the Reinsurance Premium amounts that it
         pays the Reinsurer (or credits to the Funds Withheld Account/Profit
         Sharing Account, as applicable) on a monthly basis pursuant to Article
         13, Accounts, Remittances and Loss Settlements, section C.

         The Company shall have the option, subject to the Reinsurer's consent,
         to terminate this Agreement on a cut-off basis. If the Company elects,
         and the Reinsurer consents, to terminate this Agreement on a cut-off
         basis, in accordance with Article 3, Term, then the Reinsurer shall
         return to the Company the respective unearned premium less previously
         paid Reinsurer's Margin and Ceding Commissions on such unearned
         premium.

         The maximum overall Net Written Premium for this Agreement shall be
         $200,000,000 (two hundred million dollars). The maximum overall ceded
         Net Written Premium shall be $120,000,000 (one hundred twenty million
         dollars) (the "Aggregate Premium Cap"). To the extent the Company's
         overall ceded Net Written Premium exceeds the Aggregate Premium Cap,
         the Cession Percentage shall be reduced by dividing $200,000,000 (two
         hundred million dollars) by the actual Net Written Premium and
         multiplying that result by the Cession Percentage elected in Article 7,
         Definitions, definition A.

B.       Reinsurer's Margin - The Company shall pay to the Reinsurer a
         Reinsurer's Margin equal to 8.0% (eight point zero percent) of ultimate
         Reinsurance Premium. The Company shall pay the Reinsurer the full
         amount of the Reinsurer's Margin due each month on the date when
         Reinsurance Premium is reported each month. The Company shall effect
         payment of the Reinsurer's Margin due each month by direct wire
         transfer to the Intermediary to pay the Reinsurer.

                                       9
<PAGE>

         In the event the Company fails to pay the full amount of any
         Reinsurer's Margin due within 30 (thirty) business days of the payment
         due date, the Reinsurer shall provide the Company with a written demand
         for such outstanding Reinsurer's Margin. The Company shall have an
         additional 45 (forty five) days from the date the Reinsurer provides
         the written demand in which to pay to the Reinsurer the outstanding
         Reinsurer's Margin (the "Cure Period"). If the Company fails to pay the
         full amount of any Reinsurer's Margin by the end of the Cure Period,
         this Agreement shall be cancelled retroactively for nonpayment of
         premium, effective as of the date of the last day of the month
         preceding for which the Reinsurer received actual payment of its
         Reinsurer's Margin and the Reinsurer shall incur no liability for
         losses occurring subsequent to the effective date of cancellation.

                                   ARTICLE 10

CEDING COMMISSION

The Reinsurer shall allow the Company a provisional Ceding Commission equal to
39.1% (thirty nine point one percent) of the Reinsurance Premium hereon. The
provisional Ceding Commission shall be debited/credited, as applicable, to/from
the Funds Withheld Account/Profit Sharing Account as Reinsurance Premiums are
settled monthly and adjusted as the Ultimate Net Loss Ratio is re-determined
quarterly.

The first adjustment of Actual Ceding Commission for purposes of crediting the
interest due and owing to the Funds Withheld Account/Profit Sharing Account
shall be calculated no later than February 28, 2005 for the quarter ended
December 31,2004. Thereafter the Actual Ceding Commission shall be recalculated
each quarter and based upon the Ultimate Net Loss Ratio re-determined each
quarter, in accordance with the following table, which Ceding Commission may be
reduced by the provisions in Article 12, Trust Account:

<TABLE>
<CAPTION>
                                     Ceding Commission Rate                       Ultimate Net Loss Ratio
                                     ----------------------                       -----------------------

<S>                                         <C>                                        <C>
         Maximum                            48.1%                                      47.0% or Lower
                                                                 .9 for 1
         Provisional                        39.1%                                     57.0%
                                                                 .9 for 1
         Minimum                            29.2%                                     68.0% or Higher
</TABLE>

         If the Ultimate Net Loss Ratio exceeds 47.0% (forty seven point zero
         percent), the Ceding Commission shall be reduced .9% (point nine
         percent) and any portion thereof for each 1% (one percent) and any
         portion thereof that the Ultimate Net Loss Ratio exceeds 47.0% (forty
         seven point zero percent), down to a Ceding Commission of 39.1% (thirty
         nine point one percent) at a 57% (fifty seven percent) Ultimate Net
         Loss Ratio. If the Ultimate Net Loss Ratio exceeds 57% (fifty seven
         percent), the Ceding Commission shall be reduced .9% (point nine
         percent) and any portion thereof for each 1% (one percent) and any
         portion thereof that the Ultimate Net Loss Ratio exceeds 57% (fifty
         five percent), subject to a minimum Ceding Commission of 29.2% (twenty
         nine point two percent) at a 68.0% (sixty eight point zero percent) or
         higher Ultimate Net Loss Ratio.

         Beginning with the calendar quarter ending March 31, 2005, any
         adjustments to Ceding Commission shall result in a special interest
         credit calculation from the time of adjustment back to December 31,
         2004 at the annual Interest Credit of 2.5% (two point five percent).
         Such special interest credit shall be debited or credited, as
         applicable, to or from the Funds Withheld Account/Profit Sharing
         Account at the time of calculation.

                                       10
<PAGE>

The Reinsurer shall remain liable for payment of Ceding Commission whether or
not the Funds Withheld Account/Profit Sharing Account becomes depleted.

                                   ARTICLE 11

FUNDS WITHHELD ACCOUNT/PROFIT SHARING ACCOUNT AND INTEREST CREDIT

A.       Funds Withheld Account/Profit Sharing Account - For purposes of this
         Agreement, the Company shall establish and maintain a cumulative Funds
         Withheld Account/Profit Sharing Account comprised of the following:

         1.       The Funds Withheld Account/Profit Sharing Account at December
                  31, 2003 shall be equal to $0 (zero dollars);

         2.       The Funds Withheld Account/Profit Sharing Account at each
                  subsequent month end shall be comprised of the following
                  cumulative amounts:

                  a)       The Funds Withheld Account/Profit Sharing Account at
                           the end of the prior month; plus

                  b)       Reinsurance Premium paid by the Company for such
                           month; less

                  c)       Ceding Commission for such month, when paid by the
                           Reinsurer, excluding the Return Ceding Commission as
                           per Article 12, Trust Account; plus or less (as
                           applicable)

                  d)       Special interest credit adjustments on Ceding
                           Commission Adjustments for such month; less

                  e)       Reinsurer's Margin for such month; less

                  f)       Ceded Ultimate Net Losses and Loss Adjustment
                           Expenses paid by the Reinsurer for such month; plus

                  g).      Interest Credit for such month.

         The Company shall determine and report the balance and activity of the
         Funds Withheld Account/Profit Sharing Account monthly within 45 (forty
         five) days of the month end.

                                       11
<PAGE>

B.       Interest Credit - The Funds Withheld Account/Profit Sharing Account
         shall be credited monthly, as of the end of each month, with an
         Interest Credit rate equal to .206% (point two zero six percent)
         multiplied by the beginning monthly balance of the Funds Withheld
         Account/Profit Sharing Account for the respective month, to achieve an
         annual effective yield of 2.5% (two point five percent). In calculating
         the beginning monthly balance, all amounts due to either party shall be
         deemed settled, effective as of the actual date when such items were
         due pursuant to the terms of this Agreement in accordance with Article
         13, Accounts, Remittances and Loss Settlements.

         Interest Credit shall continue even in the event of the Company's
         insolvency.

                                   ARTICLE 12

TRUST ACCOUNT

The Company shall establish a segregated Trust Account for the benefit of the
Reinsurer to secure 100% (one hundred percent) of its obligations and
liabilities to the Reinsurer for the Funds Withheld Account/Profit Sharing
Account. The Company agrees to establish such Trust Account by executing the
Trust Agreement attached hereto as Exhibit A and incorporated herein by
reference. The Company shall be liable for all of the expenses arising out of
the Trust Account, including but not limited to, all expenses incurred by the
Trustee in administering the Trust Account and all compensation payable to the
Trustee (collectively, the "Trust Expenses"). The Trust Agreement shall be
compliant at all times with the provisions of New York Insurance Regulation 114
(11 NYCRR Part 126) except to the extent necessary to comply with the
requirements of this Quota Share Reinsurance Agreement. However, all assets to
be deposited and maintained in the Trust Account shall be Eligible Securities,
as detailed in Article 18, section D.3. The Company shall deposit Reinsurance
Premium less provisional Ceding Commission, plus downward adjustments of the
provisional ceding commission, less Reinsurer's Margin, all as contractually due
hereunder. The Reinsurer shall direct the Trustee to withdraw additional Ceding
Commission adjustments and the ceded paid portion of Ultimate Net Loss and Loss
Adjustment Expense amounts from the Trust Account and remit such sums to the
Company when such are contractually due. The Company shall invest such amounts
to both (i) achieve a minimum effective annual yield of 2.5% (two point five
percent) per annum and (ii) enable investments to be admitted assets for
statutory reporting on the Company's financial statements. The Company shall
appoint Hyperion Capital Management Inc. ("Hyperion") as its investment manager
and shall direct Hyperion on the investment of such amounts.

If the market value of the assets in the Trust Account (excluding the Income
Account) at any calendar quarter end is less than the Funds Withheld
Account/Profit Sharing Account balance at such calendar quarter end, the Company
shall deposit assets in the Trust Account that are compliant with New York
Insurance Regulation 114 (11NYCRR Part 126) to achieve the required Funds
Withheld Account/Profit Sharing Account balance at such quarter end. The Company
shall retain assets in the Income Account until such time as the Company can
transfer or invest such assets into the Trust Account. If the market value of
assets in the Trust Account (excluding the Income Account) at any calendar
quarter end exceeds the balance of the Funds Withheld Account/Profit Sharing
Account at such calendar quarter end, such excess assets shall remain in the
Trust Account to pay Ultimate Net Loss and Loss Adjustment Expenses or Profit
Sharing under this Agreement.

                                       12
<PAGE>

Within 60 (sixty) days of each calendar quarter end, beginning with the quarter
ending March 31, 2004, if the Company fails to maintain the Trust Account equal
to the Funds Withheld Account/Profit Sharing Account required level, then the
cumulative amount of the shortfall shall be deemed "Return Ceding Commission"
due the Reinsurer. Such actual amount shall be paid in cash by the Company to
the Reinsurer within 60 (sixty) days of the respective calendar quarter end to
reduce the Ceding Commission that otherwise would have been due at the
respective Ultimate Net Loss Ratio as per the Ceding Commission table in Article
10, Ceding Commission. The Company shall calculate the cumulative shortfall, if
any, and re-determine the Return Ceding Commission due, within 60 (sixty) days
of each subsequent calendar quarter end until all liability under this Agreement
is finalized. The Company shall pay to the Reinsurer any additional Return
Ceding Commission due in excess of any previously paid Return Ceding Commission
and the Reinsurer shall pay to the Company any reduction of Return Ceding
Commission due over the previously paid Return Ceding Commission within 60
(sixty) days of the calendar quarter end.

Upon the occurrence of a Triggering Event, the Reinsurer shall have the sole
option of drawing any and all assets from the segregated Trust Account. If this
option is exercised, the terms of this Agreement will be changed to a funds
transferred basis. The Reinsurer will continue to calculate the Profit Sharing
Account and will credit the average monthly balance of the Profit Sharing
Account with the lesser of the equivalent of the 2.5% (two point five percent)
annual interest rate or the 2 (two) year annual T-bill rate plus 25 (twenty
five) basis points. Except for the fact that this Agreement shall be transacted
on a funds transferred basis if the Reinsurer exercises its option (as described
above), all settlements between the parties will continue to be governed by the
terms set forth in this Agreement (including, but not limited to, the settlement
dates of the items to be credited or debited as set forth in the Article 13,
Accounts, Remittances and Loss Settlements, section C.).

A "Triggering Event" is any of the following:

         1.       Company fails to maintain an A.M. Best Rating of "B++" or
                  greater and the rating is not restored to "B++" or greater
                  within 30 (thirty) days following the date that A.M. Best
                  downgrades the Company or withdraws its rating of the Company;
                  or

         2.       A reduction of more than 20% (twenty percent) of the Company's
                  statutory surplus from the Company's Statutory Surplus Level
                  at December 31, 2003 (the "Minimum Surplus Amount") and the
                  Company's surplus level is not restored to at least the
                  Minimum Surplus Amount within 30 (thirty) days following the
                  date that the Company filed the statutory financial statement
                  with its regulatory authority that evidenced its failure to
                  maintain the Minimum Surplus Amount; or

         3.       Insolvency, Rehabilitation, or Regulatory Supervision of the
                  Company; or

                                       13
<PAGE>

         4.       Company ceases underwriting new property and casualty
                  business;

         5.       Company fails to maintain the Trust Account at the minimum
                  balance required by this Agreement for a period of 30 (thirty)
                  days and the Trust Account was not remedied within the Cure
                  Period (as defined below);

         6.       Company sells 50% (fifty percent) or more of its assets or
                  reinsures 50% (fifty percent) or more of its Net Written
                  Premium or net liabilities (all as of January 1, 2004) to an
                  unaffiliated third party; or

         7.       An insurance regulatory authority or governmental entity in
                  any United States jurisdiction revokes, suspends or forces the
                  Company to withdraw its certificate of authority in such
                  jurisdiction.

         8.       Company fails to pay Reinsurer's Margin within the Cure
                  Period, in accordance with Article 9, Reinsurance Premium and
                  Reinsurer's Margin, section B.

         For purposes herein, in respect of items 5. and 8. above, the Reinsurer
         shall provide written notice to the Company of it's election to draw
         assets from the segregated Trust Account upon the occurrence of the
         respective Triggering Event. The Company shall have 45 (forty five)
         days from the date of the Reinsurer's written notice in which to remedy
         the Triggering Event (the "Cure Period"). If the Company fails to
         remedy the Triggering Event within the Cure Period, the Reinsurer can
         then draw assets from the segregated Trust Account.

In addition to the above, the Reinsurer shall have the option of drawing assets
from the segregated Trust Account for the purposes of collecting amounts due the
Reinsurer under any and all other reinsurance agreements or retrocession
agreements for which the Company has failed to pay within 30 (thirty) days of
their respective due dates, as those due dates are calculated pursuant to the
respective reinsurance agreements or retrocession agreements.

                                   ARTICLE 13

ACCOUNTS, REMITTANCES AND LOSS SETTLEMENTS

A.       Within 45 (forty five) days following the end of each month, the
         Company shall report to the Reinsurer the amount of the following with
         regards to such month and on a cumulative basis:

         1.       Net Written Premium and ceded Net Written Premium by line of
                  business;

         2.       Net Earned Premium and ceded Net Earned Premium by line of
                  business;

         3.       Ceding Commissions paid and unpaid;

                                       14
<PAGE>

         4.       Ceded Ultimate Net Loss and Loss Adjustment Expenses paid by
                  line of business;

         5.       Ceded Ultimate Net Loss and Loss Adjustment Expenses
                  outstanding by line of business (including IBNR);

         6.       Salvage recovered and ceded Salvage recovered by line of
                  business;

         7.       Premium amounts calculated in accordance with Article 9,
                  Reinsurance Premium and Reinsurer's Margin, including
                  applicable Reinsurer's Margin;

         8.       The balance of the Funds Withheld Account/Profit Sharing
                  Account as of that month end and activity in the Funds
                  Withheld Account/Profit Sharing Account during the month.

         9.       Ceded Net Written Premium and Ceded Net Earned Premium, Ceded
                  Ultimate Net Loss and Loss Adjustment Expenses paid and Ceded
                  Ultimate Net Loss and Loss Adjustment Expenses outstanding
                  (including IBNR) specifically allocable to Non-New York
                  Policies.

         Reports shall continue until the earlier of final settlement of all
         Ultimate Net Loss hereunder, or upon Commutation in accordance with
         Article 14, Commutation.

B.       In the event the Company fails to furnish the Reinsurer complete
         reports containing the information and data specified in this
         Agreement, within 45 (forty five) days after the end of the month, the
         Company shall have an additional 45 (forty five) days in which to
         furnish such reports to the Reinsurer (the "Cure Period"). Such Cure
         Period shall commence on the date that the Reinsurer provides the
         Company with a written demand for such outstanding reports. If the
         Company fails to provide such reports to the Reinsurer by the end of
         the Cure Period, the Company shall pay an interest penalty to the
         Reinsurer, utilizing an annual percentage rate of 200 (two hundred)
         basis points, that shall be applied to the cumulative amount of all
         payments/credits to the Funds Withheld Account/Profit Sharing Account
         that would have been set forth in the outstanding report. The interest
         penalty shall be calculated from the date such outstanding report was
         originally contractually due until the date of Reinsurer's actual
         receipt of the outstanding report. The interest penalty shall be in
         addition to the normal Interest Credit that is applied to the Funds
         Withheld Account/Profit Sharing Account in accordance with the Article
         11, Funds Withheld Account/Profit Sharing Account and Interest Credit,
         section B. of this Agreement. The Company shall pay the Reinsurer the
         interest penalty in cash by direct wire transfer to the Intermediary to
         pay the Reinsurer and such interest penalty amount shall not be
         credited to the Funds Withheld Account/Profit Sharing Account.

                                       15
<PAGE>

C.       The Company shall credit or debit the Funds Withheld Account/Profit
         Sharing Account by the amount of the balance of the monthly account.
         Such monthly account shall equal the Cession Percentage of Net Written
         Premiums collected for new and renewal business for the month
         (including all Delinquent Premium Amounts), less Reinsurer's Margin due
         for the month, less applicable Ceding Commission due for the month,
         less all reinsurance premiums due from the Company in respect of the
         inuring reinsurances, less the Cession Percentage of Ultimate Net Loss
         and Loss Adjustment Expenses paid for the month, plus the Cession
         Percentage of Salvage Recovered for the month. Such remittances shall
         be deemed settled by the debtor party to the creditor party 60 (sixty)
         days in arrears from the month end, except that amounts owed by the
         Reinsurer to the Company shall be paid the later of 60 (sixty) days in
         arrears from the month end or 15 (fifteen) days following the
         Reinsurer's receipt of the monthly report.

D.       Notwithstanding the above, the Company shall advise the Reinsurer
         promptly of all Ultimate Net Losses and Loss Adjustment Expenses, which
         in the opinion of the Company, may result in a claim hereunder and of
         all subsequent developments thereto which, in the opinion of the
         Company, may materially affect the position of the Reinsurer.
         Inadvertent omission or oversight in dispatching such advises shall in
         no way affect the liability of the Reinsurer. However, the Company
         shall notify the Reinsurer of such omission or oversight promptly upon
         its discovery.

E.       All Ultimate Net Loss settlements made by the Company on Business
         Covered, with exception of ex gratia payments, whether under Policy
         terms and conditions or by way of compromise, shall be in the sole
         discretion of the Company and shall be unconditionally binding on the
         Reinsurer, subject always to the terms conditions and exclusions of
         this Agreement. Upon satisfactory proof of loss, the Reinsurer shall
         pay or allow, as applicable, its proportional share of each such
         settlement in accordance with this Agreement. All Ultimate Net Loss and
         Loss Adjustment Expense amounts due to the Company from the Reinsurer
         under this Agreement shall first be paid by way of offset against the
         Funds Withheld Account/Profit Sharing Account consistent with Article
         13, Accounts, Remittances, and Loss Payments, section C. and such
         offset shall constitute payment under this Agreement. Only upon the
         exhaustion of the Funds Withheld Account/Profit Sharing Account shall
         the Company be entitled to receive cash payment from the Reinsurer.

                                   ARTICLE 14

COMMUTATION

The Company shall have the option, only with the consent of the Reinsurer,
effective at any calendar quarter end on or after the calendar quarter of
termination of this Agreement, to commute all ceded Ultimate Net Loss and ceded
Loss Adjustment Expenses outstanding hereunder. The date that the Company and
the Reinsurer mutually elect to commute shall be deemed the commutation date.

Upon Commutation, the Company shall retain 100% (one hundred percent) of the
balance of the Funds Withheld Account/Profit Sharing Account and shall be
entitled to the balance of the segregated Trust Account less any amounts
required to be maintained in the Trust Account as specified in the paragraph
below. Upon Commutation, the Reinsurer shall be released from all past, current
and future liability under this Agreement.

                                       16
<PAGE>

In the event of commutation, the segregated Trust Account must retain an amount
that is equal to the Company's potential aggregate liability under all
reinsurance agreements that the Company has entered into with the Reinsurer in
the event amounts must be drawn upon to satisfy the Company's obligations and
liabilities to the Reinsurer under all other reinsurance and/or retrocession
agreements with Reinsurer, as permitted by Article 12, Trust Account.

                                   ARTICLE 15

SPECIAL TERMINATION CLAUSE

Either the Company or the Reinsurer may terminate this Agreement on a cut-off
basis upon the happening of any one of the following circumstances at any time
by the giving of 60 (sixty) days prior written notice to the other party:

                  1.       The Company's A.M. Best rating drops below a "B+"; or

                  2.       The Reinsurer's A.M. Best ratings drops below an
                           "A-"; or

                  3.       A reduction of more than 20% (twenty percent) of the
                           Company's statutory surplus from the Company's
                           Statutory Surplus Level at December 31, 2003; or

                  4.       There is a change in the office of President and CEO
                           of the Company; or

                  5.       Insolvency, Rehabilitation, or Regulatory Supervision
                           of the Company; or

                  6.       Company ceases underwriting new property and casualty
                           business;

                  7.       Company fails to maintain the Trust Account at the
                           minimum balance required by this Agreement for a
                           period of 75 (seventy-five) days;

                  8.       Company sells 50% (fifty percent) or more of its
                           assets or reinsures 50% (fifty percent) or more of
                           its Net Written Premium or net liabilities (all as of
                           January 1, 2004) to an unaffiliated third party; or

                  9.       An insurance regulatory authority or governmental
                           entity in any United States jurisdiction revokes,
                           suspends or forces the Company to withdraw its
                           certificate of authority in such jurisdiction; or

                  10.      Company fails to pay Reinsurer's Margin in accordance
                           with Article 9, Reinsurance Premium and Reinsurer's
                           Margin.

Upon election of Special Termination, the Reinsurer shall incur no liability for
losses occurring subsequent to the effective date of termination.

                                       17
<PAGE>

                                   ARTICLE 16

CURRENCY

A.       Whenever the word "dollars" or the "$" appears in this Agreement, they
         shall be construed to mean United States Dollars and all transactions
         under this Agreement shall be in United States Dollars.

B.       Amounts paid or received by the Company in any other currency shall be
         converted to United States Dollars at the rate of exchange at the date
         such transaction is entered on the books of the Company.

                                   ARTICLE 17

TAXES AND FEDERAL EXCISE TAX

A.       Taxes - In consideration of the terms under which this Agreement is
         issued, the Company undertakes not to claim any deduction of the
         Premium hereon when making Canadian tax returns or when making tax
         returns other than Income or Profits Tax returns, to any State or
         Territory of the United States of America or to the District of
         Columbia.

B.       Federal Excise Tax - (Applicable to those reinsurers, excepting
         Underwriters at Lloyd's London and other reinsurers exempt from Federal
         Excise Tax, who are domiciled outside the United States of America.)

         The Reinsurer has agreed to allow for the purpose of paying the Federal
         Excise Tax the applicable percentage of the Premium payable hereon (as
         imposed under Section 4371 of the Internal Revenue Code) from
         Reinsurer's Margin to the extent such Premium is subject to the Federal
         Excise Tax.

         In the event of any return of Premium becoming due hereunder, the
         Reinsurer shall deduct the applicable percentage from the return
         Premium payable hereon and the Company or its agent should take steps
         to recover the tax from the United States Government.

                                   ARTICLE 18

RESERVES

(This Clause only applies to Reinsurers domiciled outside the United States
and/or unauthorized in any state, territory or district of the United States
having jurisdiction over the Company.)

A.       If a jurisdiction of the United States shall not permit the Company, in
         the statements required to be filed with its regulatory authority(ies),
         to receive full credit as admitted reinsurance for any Reinsurer's
         share of obligations, the Company shall forward to such Reinsurer a
         statement of the Reinsurer's share of such obligations. Upon receipt of
         such statement, the Reinsurer shall promptly apply for and provide the
         Company with a "clean", unconditional and irrevocable Letter of Credit
         or alternative Trust Account pursuant to a trust agreement meeting the
         requirements of New York Regulation 114, in either event in the amount
         specified in the statement submitted in excess of the Funds Withheld
         Account/Profit Sharing Account, with terms and bank acceptable to the
         regulatory authority(ies) having jurisdiction over the Company. The
         form of collateral to be provided under this clause in excess of the
         Funds Withheld Account/Profit Sharing Account shall be solely at the
         option of the Reinsurer.

                                       18
<PAGE>

B.       "Obligations" as used in this Article, shall mean the sum of losses
         paid and Loss Adjustment Expenses paid by the Company but not yet
         recovered from the Reinsurer, plus reserves for reported losses, Loss
         Adjustment Expenses, losses incurred but not reported and premiums
         unearned, if any.

C.       If the Reinsurer chooses to provide a Letter of Credit, the following
         shall be applicable:

         1.       The Reinsurer hereby agrees that the Letter of Credit shall
                  provide for automatic extension of the Letter of Credit
                  without amendment for one year from the date of expiration of
                  said Letter or any future expiration date unless 30 (thirty)
                  days prior to any expiration the issuing bank shall notify the
                  Company by registered mail that the issuing bank elects not to
                  consider the Letter of Credit renewed for any additional
                  period. An issuing bank, not a "qualified bank" as defined by
                  Regulation 133 promulgated by the Insurance Department of the
                  State of New York, shall provide 60 (sixty) days notice to the
                  Company prior to any expiration.

         2.       Notwithstanding any other provision of this Agreement, the
                  Company or any successor by operation of law of the Company
                  including, without limitation, any liquidator, rehabilitator,
                  receiver or conservator of the Company may draw upon such
                  credit, without diminution because of the insolvency of any
                  party hereto, at any time and undertakes to use and apply such
                  credit for one or more of the following purposes only:

                  i.       to pay the Reinsurer's share or to reimburse the
                           Company for the Reinsurer's share of any obligations,
                           as stipulated in the statement submitted by the
                           Company to the Reinsurer, which is due to the Company
                           and not otherwise paid by the Reinsurer;

                  ii.      in the event the Company has received effective
                           notice of non-renewal of the Letter of Credit and the
                           Reinsurer's liability remains unliquidated and
                           undischarged 30 (thirty) days prior to the expiry
                           date of the Letter of Credit to withdraw the balance
                           of the Letter of Credit and place such sums in an
                           interest bearing trust account (separate and apart
                           from any assets of the Company) to secure the
                           continuing liabilities of the Reinsurer under this
                           Agreement until a renewal Letter of Credit acceptable
                           to the regulatory authority(ies) having jurisdiction
                           over the Company, or a substitute in lieu thereof
                           acceptable to the regulatory authority(ies) having
                           jurisdiction over the Company, has been received by
                           the Company. The Company shall provide to the
                           Reinsurer payment of any interest thereon accruing
                           from such account.

                                       19
<PAGE>

                  iii.     to make refund of any sum which is in excess of the
                           actual amount required for sections 1 and 2 of this
                           paragraph.

                  In the event that any amounts drawn down (and any interest or
                  other earnings thereon) on the Letter of Credit are either in
                  excess of the actual amounts required under subparagraphs (i)
                  and (ii) above or subsequently determined not to be due under
                  this Agreement, such amounts shall constitute assets of the
                  Reinsurer for all purposes and shall be held by the Company in
                  trust (separate and apart from any assets of the Company). The
                  Company shall return all such amounts to the Reinsurer,
                  including interest accrued from the date drawn and calculated
                  at a rate not in excess of the prime rate of interest on the
                  amounts held pursuant to subparagraphs (i) and (ii) above.

         3.       At annual intervals or more frequently as determined by the
                  Company, but never more frequently than quarterly, the Company
                  shall prepare a specific statement, for the sole purpose of
                  amending the Letter of Credit, of the Reinsurer's share of any
                  obligations. If the statement shows that the Reinsurer's share
                  of obligations exceeds the balance of credit as of the
                  statement date, the Reinsurer shall, within 30 (thirty) days
                  after receipt of notice of such excess, secure delivery to the
                  Company of an amendment of the Letter of Credit increasing the
                  amount of credit by the amount of such difference. If the
                  statement shows, however, that the Reinsurer's share of
                  obligations is less than the balance of credit as of the
                  statement date, the Company shall, within 30 (thirty) days
                  after receipt of written request from the Reinsurer, release
                  such excess credit by agreeing to secure an amendment to the
                  Letter of Credit reducing the amount of credit available by
                  the amount of such excess credit.

         4.       The bank shall have no responsibility whatsoever in connection
                  with the propriety of withdrawals made by the Company or the
                  disposition of funds withdrawn, except to assure that
                  withdrawals are made only upon the order of properly
                  authorized representatives of the Company. The Company shall
                  incur no obligation to the bank in acting upon the credit,
                  other than as appears in the express terms thereof.

         D.       If the Reinsurer chooses to provide a Trust Account the
                  following shall be applicable:

                  1.       The Reinsurer shall enter into a trust agreement and
                           establish a trust account (the "Trust Account") for
                           the benefit of the Company with respect to the
                           Reinsurer's share of Obligations with a bank (the
                           "Trustee") acceptable to the Superintendent of
                           Insurance of the State of New York and the Company.

                                       20
<PAGE>

                  2.       The Reinsurer agrees to deposit, and maintain in the
                           Trust Account, assets to be held in trust by the
                           Trustee for the benefit of the Company as security
                           for the payment of the Reinsurer's Obligations to the
                           Company under this Agreement.

                  3.       The parties agree that the assets so deposited shall
                           be valued according to their current fair market
                           value and shall consist only of cash (United States
                           legal tender), certificates of deposit (issued by a
                           United States bank and payable in United States legal
                           tender), and other admitted assets of a character,
                           maturity, and value to fulfill the intent of this
                           Agreement; provided that such investments are issued
                           by an institution that is not the parent, subsidiary
                           or affiliate of either the Company or the Reinsurer;
                           and provided, further that such assets are of the
                           type specified in paragraphs (1), (2), (3), (8) and
                           (10) of Section 1404(a) of the New York Insurance Law
                           ("Eligible Securities").

                  4.       The Reinsurer, prior to depositing assets with the
                           Trustee, shall execute all assignments and
                           endorsements in blank, or transfer legal title to the
                           Trustee of all shares, obligations or any other
                           assets requiring assignments, in order that the
                           Company, or the Trustee upon direction of the
                           Company, may whenever necessary negotiate any such
                           assets without consent or signature from the
                           Reinsurer or any other entity.

                  5.       All settlements of account under the trust agreement
                           between the Company and the Reinsurer shall be made
                           in cash or its equivalent.

                  6.       The aggregate fair market value of the assets held in
                           the Trust Account (the "Market Value") shall at all
                           times be at least equal to the Reinsurer's share of
                           Obligations. The amount of the Trust Account shall be
                           adjusted on a quarterly basis so as to equal the
                           Reinsurer's share of Obligations. On a quarterly
                           basis, the Reinsurer shall prepare a specific
                           statement of the Reinsurer's share of Obligations and
                           deliver such report to the Company. If the statement
                           shows that the Reinsurer's share of Obligations
                           exceed 100% (one hundred percent) of the balance of
                           the Trust Account as of the statement date, the
                           Reinsurer shall, within 10 (ten) days after delivery
                           of such notice of excess, secure delivery to the
                           Trustee of additional cash or Eligible Securities
                           having a current fair market value equal to such
                           difference. If the statement shows that the
                           Reinsurer's share of Obligations are less than 102%
                           (one hundred two percent) of the balance of the Trust
                           Account as of the statement date, the Company shall,
                           within 10 (ten) days after receipt of such statement
                           from the Reinsurer, deliver a notice of withdrawal to
                           the Trustee directing the Trustee to withdraw from
                           the Trust Account and deliver to the Reinsurer assets
                           from the Trust Account having a current fair market
                           value equal to such excess amount.

                                       21
<PAGE>

                                   ARTICLE 19

EXCESS OF POLICY LIMITS

This Agreement shall protect the Company, within the limits hereof, for 100%
(one hundred percent) of loss in excess of the limit of its original Policies of
insurance, such loss in excess of the limit having been incurred because of
failure by the Company or Tower Risk Management to settle within the Policies of
insurance limit or by reason of alleged or actual negligence or bad faith in
rejecting an offer of settlement or in the preparation of the defense or in the
trial of any action against its insured or reinsured or in the preparation or
prosecution of an appeal consequent upon such action. The Reinsurer shall not be
liable for more than $1,000,000 (one million dollars) additional subject
Ultimate Net Loss for any one claim in respect of Excess of Policy Limits/Extra
Contractual Obligations liability and $5,000,000 (five million dollars) in the
aggregate for all Excess of Policy Limits/Extra Contractual Obligations
liability.

However, this Article shall not apply where the loss has been incurred due to a
fraud by a member of the board of directors or a corporate officer of the
Company or Tower Risk Management 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.

For the purpose of this Article, the word "loss" shall mean any amounts for
which the Company would have been contractually liable to pay had it not been
for the limit of the original policy.

                                   ARTICLE 20

EXTRA CONTRACTUAL OBLIGATIONS

This Agreement shall protect the Company for 100% (one hundred percent) of any
Extra Contractual Obligations. The term "Extra Contractual Obligations" is
defined as those liabilities not covered under any other provision of the
Company's original Policies of insurance and which arise from the handling of
any claim on Business Covered hereunder, such liabilities arising because of,
but not limited to, the following: failure by the Company or Tower Risk
Management to settle within the Policies of insurance limit, or by reason of
alleged or actual negligence or bad faith in rejecting an offer of settlement or
in the preparation of the defense or in the trial of any action against its
insured or reinsured or in the preparation or prosecution of an appeal
consequent upon such action. The Reinsurer shall not be liable for more than
$1,000,000 (one million dollars) additional subject Ultimate Net Loss for any
one claim in respect of Excess of Policy Limits/Extra Contractual Obligations
liability and $5,000,000 (five million dollars) in the aggregate for all Excess
of Policy Limits/Extra Contractual Obligations liability.

                                       22
<PAGE>

The date on which any Extra Contractual Obligation is incurred by the Company
shall be deemed, in all circumstances, to be the date of the original loss
event. However, this Article shall not apply where the loss has been incurred
due to fraud by a member of the board of directors or a corporate officer of the
Company or Tower Risk Management 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.

                                   ARTICLE 21

OFFSET

The Company and the Reinsurer shall have the right to offset any balance or
amounts due from one party to the other under the terms of this Agreement or any
other agreement between the Company and the Reinsurer. The party asserting the
right of offset may exercise such right any time whether the balances due are on
account of Reinsurance Premiums, Ceding Commissions, Return Ceding Commissions,
Ultimate Net Losses, Interest Credit or any other balances due or owed between
the Company and the Reinsurer. In the event of insolvency of either party to
this agreement, then offsets shall only be allowed to the extent permitted by
the provisions of New York Insurance Law Section 7427.

                                   ARTICLE 22

ERRORS AND OMISSIONS

Inadvertent delays, errors or omissions made by the Company in connection with
this Agreement shall not relieve the Reinsurer from any liability which would
have attached had such delay, error or omission not occurred, provided always
that such delay, error or omission shall be rectified as soon as possible after
discovery by the Company's home office.

                                   ARTICLE 23

ACCESS TO RECORDS

The Company shall place at the disposal of the Reinsurer at all reasonable
times, and the Reinsurer shall have the right to inspect through its designated
representatives, during the Term of this Agreement and thereafter, all books,
records and papers of the Company in connection with any reinsurance hereunder,
or the subject matter hereof. Such right shall continue to exist as long as one
party has a claim against the other party arising out of this Agreement.

                                       23
<PAGE>

                                   ARTICLE 24

INSOLVENCY

A.       In the event of the insolvency of the Company, this reinsurance shall
         be payable directly to the Company, or to its liquidator, receiver,
         conservator, or statutory successor on the basis of the liability of
         the Company without diminution because of the insolvency of the Company
         or because the liquidator, receiver, conservator or statutory successor
         of the Company 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 Company shall give written notice to the
         Reinsurer of the pendency of a claim against the Company indicating the
         Policy insured which claim would involve a possible liability on the
         part of the Reinsurer with a reasonable time after such claims is filed
         in the conservation or liquidation proceeding or in the receivership,
         and that during the pendency of such claim, the Reinsurer 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 they may deem available to the Company or its liquidator,
         receiver, conservator or statutory successor. The expense thus incurred
         by the Reinsurer shall be chargeable, subject to the approval of the
         court, against the Company as part of the expense of conservation or
         liquidation to the extent of a pro rata share of the benefit which may
         accrue to the Company solely as a result of the defense undertaken by
         the Reinsurer.

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

                                   ARTICLE 25

CONFIDENTIALITY

The parties acknowledge there may be portions of this Agreement, the Reinsurance
Agreement submission or the marketing package that may contain confidential,
proprietary information of the Company. The Reinsurer shall maintain the
confidentiality of such information concerning the Company and its business and
shall not disclose it to any third person without prior approval; provided,
however, that the Reinsurer may be required and are permitted under this
Agreement to disclose such information in answers to interrogatories, subpoenas
or other legal/arbitration processes as well as to the Company's Intermediaries,
to the Reinsurer's retrocessionaire, the Reinsurer's affiliates, and applicable
intermediaries, or in response to requests by governmental and regulatory
agencies. In addition, the Reinsurer may disclose such information to its rating
agencies, auditors, advisors and to its outside legal counsel as may be
necessary.

                                       24
<PAGE>

                                   ARTICLE 26

ARBITRATION

A.       Any dispute or other matter in question between the Company and the
         Reinsurer arising out of, or relating to, the formation,
         interpretation, performance or breach of this Agreement, whether such
         dispute arises before or after termination of this Agreement, shall be
         settled by arbitration. Arbitration shall be initiated by the delivery
         of a written notice of demand for arbitration by one party to the other
         within a reasonable time after the dispute has arisen.

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

C.       Each party shall appoint an individual as arbitrator and the two so
         appointed shall then appoint a third arbitrator. If either party
         refuses or neglects to appoint an arbitrator within 60 (sixty) days,
         the other party may appoint the second arbitrator. If the two
         arbitrators do not agree on a third arbitrator within 60 (sixty) days
         of their appointment, each of the arbitrators shall nominate 3 (three)
         individuals. Each arbitrator shall then decline two of the nominations
         presented by the other arbitrator. The third arbitrator shall then be
         chosen form the remaining two nominations by drawing lots. The
         arbitrators shall be active or former officers of insurance or
         reinsurance companies or Lloyd's Underwriters; the arbitrators shall
         not have a personal or financial interest in the result of the
         arbitration.

D.       The arbitration hearings shall be held in New York, New York or such
         other place as may be mutually agreed. Each party shall submit its case
         to the arbitrators within 60 (sixty) days of the selection of the third
         arbitrator or within such longer period as may be agreed by the
         arbitrators. The arbitrators shall not be obliged to follow judicial
         formalities or the rules of evidence except to the extent required by
         governing law, that is, the state law of the situs of the arbitration
         as herein agreed; they shall make their decisions according to the
         practice of the reinsurance business. The decision rendered by a
         majority of the arbitrators shall be final and binding on both parties.
         Such decision shall be a condition precedent to any right of legal
         action arising out of the arbitrated dispute which either party may
         have against the other. Judgment upon the award rendered may be entered
         in any court having jurisdiction thereof.

E.       Each party shall pay the fee and expenses of its own arbitrator and
         one-half of the fee and expenses of the third arbitrator. All other
         expenses of the arbitration shall be equally divided between the
         parties.

F.       Except as provided above, arbitration shall be based, insofar as
         applicable, upon the procedures of the American Arbitration
         Association.

                                       25
<PAGE>

                                   ARTICLE 27

SERVICE OF SUIT

(This Article only applies to reinsurers domiciled outside the United States
and/or unauthorized in any state, territory or district of the United States
having jurisdiction over the Company.)

A.       It is agreed that in the event of the failure of the Reinsurer hereon
         to pay any amount claimed to be due hereunder, the Reinsurer hereon, at
         the request of the Company, shall submit to the jurisdiction of a court
         of competent jurisdiction within the United States. Nothing in this
         Article constitutes or should be understood to constitute a waiver of
         the Reinsurer's right to commence an action in any court of competent
         jurisdiction in the United States, to remove an action to a United
         States District Court, or to seek a transfer of a case to another court
         as permitted by the laws of the United States or of any state in the
         United States. It is further agreed that service of process in such
         suit may be made upon Lovells, 900 Third Avenue New York, New York
         10022, and that in any suit instituted, the Reinsurer shall abide by
         the final decision of such court or of any Appellate Court in the event
         of an appeal.

B.       The above-named are authorized and directed to accept service of
         process on behalf of the Reinsurer in any such suit and/or upon the
         request of the Company to give a written undertaking to the Company
         that they shall enter a general appearance upon the Reinsurer's behalf
         in the event such a suit shall be instituted.

C.       Further, pursuant to any statute of any state, territory or district of
         the United States which makes provision therefor, the Reinsurer hereon
         hereby designate the Superintendent, Commissioner or Director of
         Insurance or other officer specified for that purpose in the statute,
         or his successor or successors in office, as their true and lawful
         attorney upon whom may be served any lawful process in any action, suit
         or proceeding instituted by or on behalf of the Company or any
         beneficiary hereunder arising out of this Agreement of reinsurance, and
         hereby designates the above-named as the person to whom the said
         officer is authorized to mail such process or a true copy thereof.

                                   ARTICLE 28

INTERMEDIARY

Tower Risk Management Corporation and Pegasus Advisors - Towers Perrin
Reinsurance are hereby recognized as the Intermediaries negotiating this
Agreement for all business hereunder and through whom all communications
relating hereto (including but not limited to notices, statements and reports)
shall be transmitted to both parties. It is understood, as regards remittances
due either party hereunder, that payment by the Company to the Intermediaries,
shall constitute payment to the Reinsurer but payment by the Reinsurer to the
Intermediaries shall only constitute payment to the Company to the extend such
payments are actually received by the Company.

                                       26
<PAGE>

                                   ARTICLE 29

PROPORTION

In Witness Whereof, the parties hereto have caused this Agreement to be executed
by their duly authorized representatives.

Signed this 16th day of April, 2004,
For and on behalf of Tower Insurance Company of New York in acceptance of the
terms, conditions and Reinsurer hereon:

By:         /s/ Marina Contiero
       -----------------------------------------------------
                 (Signature)

            Marina Contiero
       -----------------------------------------------------
               (Print Name)

Title:      Vice President
       -----------------------------------------------------

Signed this 20th day of April, 2004,
For and on behalf of Converium Reinsurance (North America) Inc. for its 33.333%
(thirty three point three three three percent) participation of the terms and
conditions hereon:

By:             /s/ Raymond Dowling
       ----------------------------------------------------
                 (Signature)

                Raymond Dowling
       ----------------------------------------------------
                   (Print Name)

Title:          Senior Vice President
       ----------------------------------------------------

                                       27
<PAGE>

                        NUCLEAR INCIDENT EXCLUSION CLAUSE
                       PHYSICAL DAMAGE - REINSURANCE - USA

         1. This Contract does not cover any loss or liability accruing to the
Reassured, directly or indirectly, and whether as Insurer or Reinsurer, from any
Pool of Insurers or Reinsurers formed for the purpose of covering Atomic or
Nuclear Energy risks.

         2. Without in any way restricting the operation of paragraph (1) of
this Clause, this Contract does not cover any loss or liability accruing to the
Reassured, directly or indirectly, and whether as Insurer or Reinsurer, from any
insurance against Physical Damage (including business interruption or
consequential loss arising out of such Physical Damage) to:

         I.       Nuclear reactor power plants including all auxiliary property
                  on the site, or

         II.      Any other nuclear reactor installation, including laboratories
                  handling radioactive materials in connection with reactor
                  installations, and "critical facilities" as such, or

         III.     Installations for fabricating complete fuel elements or for
                  processing substantial quantities of "special nuclear
                  material", and for reprocessing, salvaging, chemically
                  separating, storing or disposing of "spent" nuclear fuel or
                  waste materials, or

         IV.      Installations other than those listed in paragraph (2) III
                  above using substantial quantities of radioactive isotopes or
                  other products of nuclear fission.

         3. Without in any way restricting the operations of paragraphs (1) and
(2) hereof, this Contract does not cover any loss or liability by radioactive
contamination accruing to the Reassured, directly or indirectly, and whether as
Insurer or Reinsurer, from any insurance on property which is on the same site
as a nuclear reactor power plant or other nuclear installation and which
normally would be insured therewith except that this paragraph (3) shall not
operate

                  (a)      where the Reassured does not have knowledge of such
                           nuclear reactor power plant or nuclear installation,
                           or

                  (b)      where said insurance contains a provision excluding
                           coverage for damage to property caused by or
                           resulting from radioactive contamination, however
                           caused. However on and after 1st January 1960, this
                           sub-paragraph (b) shall only apply provided the said
                           radioactive contamination exclusion provision has
                           been approved by the Governmental Authority having
                           jurisdiction thereof.

         4. Without in any way restricting the operations of paragraphs (1), (2)
and (3) hereof, this Contract does not cover any loss or liability by
radioactive contamination accruing to the Reassured, directly or indirectly, and
whether as Insurer or Reinsurer, when such radioactive contamination is a named
hazard specifically insured against.

                                       28
<PAGE>

         5. It is understood and agreed that this Clause shall not extend to
risks using radioactive isotopes in any form where the nuclear exposure is not
considered by the Reassured to be the primary hazard.

         6. The term "special nuclear material" shall have the meaning given it
in the Atomic Energy Act of 1954 or by any law amendatory thereof.

         7. The Reassured to be sole judge of what constitutes:

            (a)   substantial quantities, and

            (b)   the extent of installation, plant or site

NOTE: - Without in any way restricting the operation of paragraph (1) hereof,
it is understood and agreed that

            (a)   all Policies issued by the Reassured on or before 31st
                  December 1957 shall be free from the application of the other
                  provisions of this Clause until expiry date or 31st December
                  1960 whichever first occurs whereupon all the provisions of
                  this Clause shall apply.

            (b)   with respect to any risk located in Canada Policies issued by
                  the Reassured on or before 31st December 1958 shall be free
                  from the application of the other provisions of this Clause
                  until expiry date or 31st December 1960 whichever first occurs
                  whereupon all the provisions of this Clause shall apply.

                                       29
<PAGE>

                        NUCLEAR INCIDENT EXCLUSION CLAUSE
                        LIABILITY - REINSURANCE - U.S.A.

1.       This Agreement does not cover any loss or liability accruing to the
         Cedent as a member of, or subscriber to, any association of insurers or
         reinsurers formed for the purpose of covering nuclear energy risks or
         as a direct or indirect reinsurer of any such member, subscriber or
         association.

2.       Without in any way restricting the operation of paragraph (1) of this
         Clause it is understood and agreed that for all purposes of this
         Agreement all the original Policies of the Cedent (new, renewal and
         replacement) of the classes specified in Clause II of this paragraph
         (2) from the time specified in Clause III of this paragraph (2) shall
         be deemed to include the following provision (specified as the Limited
         Exclusion Provision):

Limited Exclusion Provision*

         I.       It is agreed that the Policy does not apply under any
                  liability coverage, to
                  (injury, sickness, disease, death or destruction
                  (bodily injury or property damage
                  with respect to which an insured under the Policy is also an
                  insured under a nuclear energy liability Policy issued by
                  Nuclear Energy Liability Insurance Association, Mutual Atomic
                  Energy Liability Underwriters or Nuclear Insurance Association
                  of Canada, or would be an insured under any such Policy but
                  for its termination upon exhaustion of its limits of
                  liability.

         II.      Family Automobile Policies (liability only), Special
                  Automobile Policies (private passenger automobiles, liability
                  only), Farmers Comprehensive Personal Liability Policies
                  (liability only), Comprehensive Personal Liability Policies
                  (liability only) or Policies of a similar nature; and the
                  liability portion of combination forms related to the four
                  classes of Policies stated above, such as the Comprehensive
                  Dwelling Policy and the applicable types of Homeowners
                  Policies.

         III.     The inception dates and thereafter of all original Policies as
                  described in II above, whether new, renewal or replacement,
                  being Policies which either

         (a)      become effective on or after 1st May, 1960, or

         (b)      become effective before that date and contain the Limited
                  Exclusion Provision set out above; provided this paragraph (2)
                  shall not be applicable to Family Automobile Policies, Special
                  Automobile Policies or Policies or combination Policies of a
                  similar nature, issued by the Cedent on New York risks, until
                  90 days following approval of the Limited Exclusion Provision
                  by the Governmental Authority having jurisdiction thereof.

3.       Except for those classes of Policies specified in Clause II of
         paragraph (2) and without in any way restricting the operation of
         paragraph (1) of this Clause, it is understood and agreed that for all
         purposes of this Agreement the original liability Policies of the
         Cedent (new, renewal and replacement) affording the following
         coverages:

                                       30
<PAGE>

         Owners, Landlords and Tenants Liability, Contractual Liability,
         Elevator Liability, Owners or Contractors (including railroad),
         Protective Liability, Manufacturers and Contractors Liability, Product
         Liability, Professional and Malpractice Liability, Storekeepers
         Liability, Garage Liability, Automobile Liability (including
         Massachusetts Motor Vehicle or Garage Liability)

     shall be deemed to include, with respect to such coverages, from the time
     specified in Clause V of this paragraph (3), the following provision
     (specified as the Broad Exclusion Provision):

Broad Exclusion Provision*

It is agreed that the Policy does not apply:

         I.       Under any Liability Coverage, to
                  (injury, sickness, disease, death or destruction
                  (bodily injury or property damage

                  (a)      with respect to which an insured under the Policy is
                           also an insured under a nuclear energy liability
                           Policy issued by Nuclear Energy Liability Insurance
                           Association, Mutual Atomic Energy Liability
                           Underwriters or Nuclear Insurance Association of
                           Canada, or would be an insured under any such Policy
                           but for its termination upon exhaustion of its limit
                           of liability; or

                  (b)      resulting from the hazardous properties of nuclear
                           material and with respect to which (1) any person or
                           organization is required to maintain financial
                           protection pursuant to the Atomic Energy Act of 1954,
                           or any law amendatory thereof, or (2) the insured is,
                           or had this Policy not been issued would be, entitled
                           to indemnity from the United States of America, or
                           any agency thereof, under any agreement entered into
                           by the United States of America, or any agency
                           thereof, with any person or organization.

         II.      Under any Medical Payments Coverage, or under any
                  Supplementary Payments Provision relating to
                  (immediate medical or surgical relief,
                  (first aid,
                  to expenses incurred with respect to
                  (bodily injury, sickness, disease or death
                  (bodily injury
                  resulting from the hazardous properties of nuclear material
                  and arising out of the operation of a nuclear facility by any
                  person or organization.

         III.     Under any Liability Coverage, to
                  (injury, sickness, disease, death or destruction (bodily
                  injury or property damage resulting from the hazardous
                  properties of nuclear material if

                  (a)      the nuclear material (1) is at any nuclear facility
                           owned by, or operated by or on behalf of, an insured
                           or (2) has been discharged or dispersed therefrom;

                                       31
<PAGE>

         (b)      the nuclear material is contained in spent fuel or waste at
                  any time possessed, handled, used, processed, stored,
                  transported or disposed or by or on behalf of an insured; or

         (c)      (the injury, sickness, disease, death or destruction (the
                  bodily injury or property damage
arises out of the furnishing by an insured of services, materials, parts or
equipment in connection with the planning, construction, maintenance, operation
or use of any nuclear facility, but if such facility is located within the
United States of America, its territories, or possessions or Canada, this
exclusion (c) applies only to
(injury to or destruction of property at such nuclear facility
(property damage to such nuclear facility and any property thereat.

IV.      As used in this endorsement:

         "hazardous properties" include radioactive, toxic or explosive
         properties; "nuclear material" means source material, special nuclear
         material or by-product material; "source material", "special nuclear
         material" and "by-product material" have the meanings given to them in
         the Atomic Energy Act of 1954 or in any law amendatory thereof; "spent
         fuel" means any fuel element or fuel component, solid or liquid, which
         has been used or exposed to radiation in a nuclear reactor; "waste"
         means any waste material (1) containing by-product material and (2)
         resulting from the operation by any person or organization of any
         nuclear facility included within the definition of nuclear facility
         under paragraph (a) or (b) thereof; "nuclear facility" means

         (a)      any nuclear reactor,

         (b)      any equipment or device designed or used for (1) separating
                  the isotopes of uranium or plutonium, (2) processing or
                  utilizing spent fuel, or (3) handling, processing or packaging
                  waste,

         (c)      any equipment or device used for the processing, fabricating
                  or alloying of special nuclear material if at any time the
                  total amount of such material in the custody of the Insured at
                  the premises where such equipment or device is located
                  consists of or contains more than 25 grams of plutonium or
                  uranium 233 or any combination thereof, or more than 250 grams
                  of uranium 235,

         (d)      any structure, basin, excavation, premises or place prepared
                  or used for the storage or disposal of waste,

         and includes the site on which any of the foregoing is located, all
         operations conducted on such site and all premises used for such
         operations; "nuclear reactor" means any apparatus designed or used to
         sustain nuclear fission in a self-supporting chain reaction or to
         contain a critical mass of fissionable material;
         (with respect to injury to or destruction of property, the word
         "injury" or "destruction"
         ("property damage" includes all forms of radioactive contamination
         of property.
         (includes all forms of radioactive contamination of property.

V.       The inception dates and thereafter of all original Policies affording
         coverages specified in this paragraph (3), whether new, renewal or
         replacement, being Policies which become effective on or after 1st May,
         1960, provided this paragraph (3) shall not be applicable to

         (i)      Garage and Automobile Policies issued by the Cedent on New
                  York risks, or

                                       32
<PAGE>

         (ii)     Statutory liability insurance required under Chapter 90,
                  General Laws of Massachusetts, until 90 days following
                  approval of the Board Exclusion Provision by the Governmental
                  Authority having jurisdiction thereof.

4.       Without in any way restricting the operation of paragraph (1) of this
         Clause, it is understood and agreed that paragraphs (2) and (3) above
         are not applicable to original liability Policies of the Cedent in
         Canada and that with respect of such Policies this Clause shall be
         deemed to include the Nuclear Energy Liability Exclusion Provisions
         adopted by the Canadian Underwriters' Association or the Independent
         Insurance Conference of Canada.

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

*Note    The words printed in italics in the Limited Exclusion Provision and in
         the Broad Exclusion Provision shall apply only in relation to original
         liability Policies which include a Limited Exclusion Provision or a
         Broad Exclusion Provision containing those words.

                                       33
<PAGE>

                     WAR RISK EXCLUSION CLAUSE (REINSURANCE)

         As regards interests which at time of loss or damage are on shore, no
liability shall attach hereto in respect of any loss or damage which is
occasioned by war, invasion, hostilities, acts of foreign enemies, civil war,
rebellion, insurrection, military or usurped power, or martial law or
confiscation by order of any government or public authority.

         This War Exclusion Clause shall not, however, apply to interest which
at time of loss or damage are within the territorial limits of the United States
of America (comprising the fifty States of the Union and the District of
Columbia, its territories and possessions, including the Panama Canal Zone and
the Commonwealth of Puerto Rico and including Bridges between the United States
of America and Mexico provided they are under United States ownership), Canada,
St. Pierre and Miquelon, provided such interests are insured under original
Policies, endorsements or binders containing a standard war or hostilities or
warlike operations exclusion clause.

         Nevertheless, this clause shall not be construed to apply to loss or
damage occasioned by riots, strikes, civil commotion, vandalism, malicious
damage, including acts committed by agents of any government, party or faction
engaged in war, hostilities or other warlike operation, provided such agents are
acting secretly and not in connection with any operations of military or naval
armed forces in the country where the interests insured are situated.

                                       34
<PAGE>

                        INSOLVENCY FUND EXCLUSION CLAUSE

This Agreement excludes all liability of the Ceding Company arising by contract,
operation of law or otherwise, from its participation or membership, whether
voluntary or involuntary, in any insolvency fund. "Insolvency Fund" includes any
guarantee fund, insolvency fund, plan, pool, association, fund or other
arrangement, howsoever denominated, established or governed, which provides for
any assessment of or payment or assumption by the Ceding Company of part or all
of any claim, debt, charge, fee or other obligation of an insurer or its
successors or assigns which has been declared by any competent authority to be
insolvent or which is otherwise deemed unable to meet any claim, debt, charge,
fee or other obligation in whole or in part.

                                       35
<PAGE>

              POOLS, ASSOCIATIONS AND SYNDICATES EXCLUSION CLAUSE

Section A:

Excluding:

         (a)      All business derived directly or indirectly from any Pool,
                  Association, or Syndicate which maintains its own reinsurance
                  facilities.

         (b)      Any Pool or Scheme (whether voluntary or mandatory) formed
                  after March 1, 1968 for the purpose of insurance property
                  whether on a country-wide basis or in respect of designated
                  areas. This exclusion shall not apply to so-called Automobile
                  Insurance Plans or other Pools formed to provide coverage for
                  Automobile Physical Damage.

Section B:

It is agreed that business written by the Company for the same perils, which is
known at the time to be insured by, or in excess of underlying amounts placed in
the following Pools, Associations or Syndicates, whether by way of insurance or
reinsurance, is excluded hereunder:

         Industrial Risk Insurers,
         Associated Factory Mutuals Improved Risk Mutuals
         Any Pool, Association or Syndicate formed for the purpose of writing
         Oil, Gas or Petro-Chemical Plants and/or Oil or Gas Drilling Rigs,
         United States Aircraft Insurance Group, Canadian Aircraft Insurance
         Group,
         Associated Aviation Underwriters, American Aviation Underwriters

Section B does not apply:

         (a)      Where the Total Insured Value over all interests of the risk
                  in question is less than $250,000,000.

         (b)      To interests traditionally underwritten as Inland Marine or
                  stock and/or contents written on a blanket basis.

         (c)      To Contingent Business Interruption, except when the Company
                  is aware that the key location is known at the time to be
                  insured in any Pool, Association, or Syndicate named above
                  other than as provided for under Section B(a).

                                       36
<PAGE>

         (d)      To risks as follows:

                  Offices, Hotels, Apartments, Hospitals, Educational
                  Establishments, Public Utilities, (other than railroad
                  schedules) and builder's risks on the classes of risks
                  specified in this subsection (d) only. Where this clause
                  attaches to Catastrophe Excesses, the following Section C is
                  added:

Section C:

Nevertheless the Reinsurer specifically agrees that liability accruing to the
Company from its participation in:

         (1)      The following so-called "Coastal Pools":

                  Alabama Insurance Underwriting Association
                  Florida Windstorm Underwriting Association
                  Louisiana Insurance Underwriting Association
                  Mississippi Windstorm Underwriting Association
                  North Carolina Insurance Underwriting Association
                  South Carolina Windstorm and Hail Underwriting Association
                  Texas Catastrophe Property Insurance Association

                                            AND

         (2)      All "Fair Plan" and "Rural Risk Plan" business for all perils
                  otherwise protected hereunder shall not be excluded, except,
                  however, that this reinsurance does not include any increase
                  in such liability resulting from:

                  (i)      The inability of any other participant in such
                           "Coastal Pool" and/or "Fair Plan" and/or "Rural Risk
                           Plan" to meet its liability.

                  (ii)     Any claim against such "Coastal Pool" and/or "Fair
                           Plan" and/or "Rural Risk Plan" or any participant
                           therein, including the Company, whether by way of
                           subrogation or otherwise, brought by or on behalf of
                           any insolvency fund (as defined in the Insolvency
                           Fund Exclusion Clause incorporated in this Contract).

                                       37

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00071-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00071-of-00352.parquet"}]]