Document:

Exhibit 10.3

    ESCROW
      AGREEMENT

    

    

    THIS
      ESCROW AGREEMENT dated June 20, 2006 (this "Agreement"), is entered into by
      and
      among GFR Pharmaceuticals Inc., a Nevada corporation (“GFRP”), Richard Pierce,
      controlling shareholder of GFRP ("Pierce"), New Century Scientific Investment
      Ltd., a corporation formed according to the laws of P. R. China ("New Century"),
      Guo, Li An, controlling shareholder of New Century and representative of the
      selling shareholders of New Century (referred to collectively as "New Century"),
      and Greentree Financial Group, Inc. (the "Escrow Agent").

    

    

    Recitals

    

    
      	A.  	
              GFRP,
                Pierce and New Century are planning to enter into a Plan of Exchange
                on
                June 20, 2006 (the "Plan of Exchange"), pursuant to which a 90+%
                interest
                in New Century will be acquired by GFRP in exchange for 40,000,000
                new
                common shares of GFRP to New Century. In addition, New Century and/or
                the
                New Century shareholders will pay into escrow an aggregate payment
                of
                $500,000 which shall be used towards the share purchases and the
                settling
                of liabilities and expenses. In addition, New Century will hold
                approximately 95% of then outstanding shares of GFRP common stock.
                New
                Century and/or the New Century shareholders will be in control of
                GFRP
                which is publicly traded on the NASDAQ Over-the-Counter Bulletin
                Board.

            

    

    

    
      	B.  	
              GFRP
                confirms that it currently has 1,079,940
                outstanding shares of common stock in total, and promises that no
                new
                shares of GFRP have been or will be issued to other parties except
                New
                Century shareholders, unless the Letter of Intent dated June 6, 2006,
                among the parties (the "LOI"), the Plan of Exchange, this Agreement,
                and
                all the transactions contemplated by the LOI and the Plan of Exchange
                (collectively, the "Transactions") are
                cancelled.

            

    

    

    GFRP
      and
      Pierce also confirm that the Board of Directors has authorized and GFRP has
      established the 2000 Incentive and Non-qualified Stock Option Plan. Under the
      plan GFRP is authorized to issue up to 100,000 shares of GFRP's common stock
      with such exercise price and vesting periods as the board of directors deems
      to
      be in the best interest of GFRP. As of May 31, 2006, no options have been
      granted. In addition, no options will be issued prior to the Closing. Further,
      GFRP and the Selling Shareholder represent there are no warrants outstanding
      and
      no toxic pill convertible debentures.

    

    
      	C.  	
              Pierce
                will deliver his 200,000 common shares of GFRP to the Escrow Agent
                in
                accordance with the terms of the
                Transactions.

            

    

    

    Client
      Initials: ____ ____

     

    
      
        
        

      

      
        Page
          - 1

        
          

        

      

      
        
        

      

    

    

    
      	D.  	
              GFRP
                will deliver the 40,000,000 new shares to be issued to the New Century
                shareholders to the Escrow Agent in accordance with the terms of
                the
                Transactions.

            

    

    

    

    E.
       New
      Century will make total deposits of $500,000 into the US account of the Escrow
      Agent in accordance with the terms of the Transactions.

     

    NOW,
      THEREFORE, in consideration of the premises and mutual promises herein made,
      the
      parties do hereby agree as follows:

    

    1.
      Deposit
      of GFRP Shares and aggregate total deposits of $500,000.
      Upon
      signing the LOI, New Century shall make an initial deposit of $50,000 into
      the
      account of the Escrow Agent, which will be immediately disbursed to the account
      of Pierce' lawyer pursuant to the terms set forth in the LOI (the “Deposit”). If
      GFRP or New Century is not satisfied with its due diligence review, the
      Transactions, and all the terms and conditions will become null and void and
      the
      Deposit will be returned to New Century. There are two exceptions to this
      cancellation clause: (1) If New Century’s GAAP audited assets are adjusted to
      less than $4 million at Closing, Pierce shall have the option to cancel the
      Transactions and keep the Deposit as liquidated damages. (2) Secondly, if the
      Transactions are not completed due to default of New Century, the Transaction
      and all the terms and conditions will become null and void and the Deposit
      will
      be released to Pierce.

    

    Concurrent
      with the execution of the Transactions documents (the "Closing"), New Century
      will make the final payment of $450,000 into the account of the Escrow Agent
      (the "Funds"). The Closing shall occur on or before June 20, 2006. All payments
      are for the benefit of GFRP, Pierce and the Escrow Agent, and are
      non-refundable. Meanwhile, Pierce will deposit total of 200,000 common shares
      of
      GFRP from the Selling Shareholder and 40,000,000 new common shares of GFRP,
      which are sold to New Century shareholders, into the account of Escrow Agent.
      The total of number of shares deposited approximate 95% of GFRP's voting shares,
      hereinafter, the "Share Deposits". Any income or dividends on the GFRP Shares
      shall be promptly paid to New Century. All currency amounts are in U.S. dollars.
      

     

    2. Duties
      of the Escrow Agent.
      The
      Escrow Agent shall receive and disburse the Funds to Pierce upon the completion
      of the Transactions, according to the terms of this agreement and according
      to
      disbursement instructions provided by Pierce. 

    

    The
      conditions for releasing the Funds (the "Disbursement") are (1) the delivery
      of
      the 200,000 shares from Pierce to the Escrow Agent, (2) the delivery of the
      40,000,000 shares for the benefit of New Century shareholders to the Escrow
      Agent, (3) the absence of material liabilities in GFRP as defined by Generally
      Accepted Accounting Principles, and (4) the vend out of the three subsidiaries.
      

    

    

    

    Client
      Initials: ____ ____

     

    
      
        
        

      

      
        Page
          - 2

        
          

        

      

      
        
        

      

    

    

    The
      Escrow Agent shall receive and hold the Share Deposits pursuant to the terms
      of
      this Agreement until the Disbursement, and then the Escrow Agent shall release
      the whole Share Deposits to New Century shareholders upon the instructions
      provided by New Century. Upon written notice from a party to this Agreement
      to
      release the Share Deposits in a manner other than indicated in this Agreement,
      the Escrow Agent shall notify all other parties to this Agreement of the
      existence and terms of said notice. If all of the parties are in agreement
      with
      a particular distribution that is proposed, the Escrow Agent shall make such
      distribution. However, if the parties are not in agreement with the manner
      of a
      proposed distribution, and after six months of negotiating they are still not
      in
      agreement, the Escrow Agent shall deliver the Funds to New Century, and the
      Share Deposits back to GFRP and Pierce at which time all Transactions will
      be
      terminated and deemed null and void.

    

    3.
      Compensation
      of Escrow Agent.
      Escrow
      Agent shall be compensated in an amount equal to $25,000, payable on the release
      of the Funds to Pierce. The escrow fee will be paid by Pierce from the total
      deposits.

    

    4. Authority.
      The
      Escrow Agent shall not be responsible for the identity, authority or rights
      of
      any person, firm or corporation executing or delivering or purporting to execute
      or deliver this Agreement or any document deposited hereunder or any endorsement
      thereon or assignment thereof.

    

    5. Reliance.
      The
      Escrow Agent may rely upon any instrument or writing believed by it to be
      genuine and sufficient and properly presented and shall not be liable or
      responsible for any action taken or omitted in reliance thereon.

    

    6.
       Acts
      by the Escrow Agent. The
      Escrow Agent shall not be liable or responsible for any act it may do or omit
      to
      do in the exercise of reasonable care. In the event any property held by the
      Escrow Agent hereunder shall be attached, garnished or levied upon or fall
      under
      any order of any court or the delivery thereof shall be made or entered by
      any
      court affecting the Share Deposits or any part thereof or any acts of the Escrow
      Agent, the Escrow Agent is hereby authorized in its exclusive discretion to
      obey
      and comply with all such writs, orders, judgments or decrees so entered or
      issued, whether with or without jurisdiction, and if the Escrow Agent obeys
      and
      complies with any such writ, order, judgment or decree, it shall not be liable
      to any of the parties hereto, their successors, heirs or personal
      representatives or to any other person, firm or business entity by reason of
      such compliance notwithstanding such writ, order, judgment or decree be
      subsequently reversed, modified, annulled, set aside or vacated.

    

    7.
      Escrow
      Agent Indemnification. The
      parties hereto jointly and severally agree to indemnify and hold the Escrow
      Agent harmless from any and all costs, expenses, claims, losses, liabilities
      and
      damages (including reasonable attorneys' fees) that may arise out of or in
      connection with the Escrow Agent's acting as escrow agent hereunder except
      where
      the Escrow Agent has been guilty of gross negligence or willful
      misconduct.

    

    

    Client
      Initials: ____ ____

    
 

    
      
        
        

      

      
        Page
          - 3

        
          

        

      

      
        
        

      

    

    
 

    

    8.
      Resignation.
      The
      Escrow Agent may resign for any reason, upon 30 days' written notice to the
      parties. Upon expiration of such 30-day notice period, the Escrow Agent may
      deliver the Share Deposits and any remaining Funds to any successor escrow
      agent
      appointed jointly by the parties, or if no successor escrow agent has been
      so
      appointed, deliver the Share Deposits to GFRP and Pierce and any remaining
      Funds
      to New Century, at which time all Transactions will be terminated and deemed
      null and void. Upon either such delivery, the Escrow Agent shall be released
      from any and all liability under this Escrow Agreement. A termination under
      this
      paragraph shall in no way discharge the provisions hereof affecting
      reimbursement of expenses, indemnity and fees.

    

    9. Default
      Provision.
      If New
      Century fails to make the payments into the escrow account as required under
      this agreement, GFRP and Pierce shall have the right at its sole discretion
      to
      unwind the Transactions. Under such default, Pierce shall still be entitled
      to
      the Deposit made into escrow under this agreement. 

    

    

    IN
      WITNESS WHEREOF, the parties have signed this document intending to be bound
      by
      its terms as of the day first written above.

    

    GFR
      PHARMACEUTICALS, INC. ("GFRP")  
      RICHARD
      PIERCE

    

    

    By:  /s/
      Richard Pierce            
      /s/ Richard Pierce  

    Name:
      Richard Pierce,              Individually)

    Title:
      President and Chief Executive Officer        Majority
      Shareholder            

                                         /
      Selling Shareholder
 

     

        

    NEW
      CENTURY SCIENTIFIC INVESTMENT LTD. ("NEW CENTURY")

    

    

    By: 
      /s/ Wang, Li An  

    Name:
      Wang, Li An

    Title:
      Authorized Representative

    

    GUO,
      LI
      AN

    

    /s/
      Guo, Li An    

    (Individually)
         

    Majority
      Shareholder         

    

    GREENTREE
      FINANCIAL GROUP, INC.

    

    

    By:  /s/
      R. Chris Cottone  

    Name:
      R.
      Chris Cottone 

     

    
      
         

      

      
        Page
          - 4Exhibit
10.1

PURCHASE
AGREEMENT

BETWEEN

AON CORPORATION

AND

WARRIOR ACQUISITION CORP.

 

Dated as of June 30,
2006

 

 

TABLE OF CONTENTS

	
  

  	
   

  	
   

  	
   

  	
  Page

  
	
  ARTICLE I DEFINITIONS

  	
   

  	
  1

  
	
  Section 1.1

  	
   

  	
  Definitions

  	
   

  	
  1

  
	
  Section 1.2

  	
   

  	
  Interpretation

  	
   

  	
  15

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE II PURCHASE AND SALE

  	
   

  	
  15

  
	
  Section 2.1

  	
   

  	
  Purchase and Sale of the Shares

  	
   

  	
  15

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE III PURCHASE PRICE

  	
   

  	
  16

  
	
  Section 3.1

  	
   

  	
  Purchase Price

  	
   

  	
  16

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE IV CLOSING

  	
   

  	
   

  	
   

  	
  16

  
	
  Section 4.1

  	
   

  	
  Closing Date.

  	
   

  	
  16

  
	
  Section 4.2

  	
   

  	
  Payment on the Closing Date

  	
   

  	
  16

  
	
  Section 4.3

  	
   

  	
  Buyer’s Additional Closing Date Deliveries

  	
   

  	
  17

  
	
  Section 4.4

  	
   

  	
  Aon’s Closing Date Deliveries

  	
   

  	
  17

  
	
  Section 4.5

  	
   

  	
  Determination of the Net Worth Adjustment Amount

  	
   

  	
  18

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE V REPRESENTATIONS AND WARRANTIES OF AON

  	
   

  	
  19

  
	
  Section 5.1

  	
   

  	
  Organization of the Companies.

  	
   

  	
  19

  
	
  Section 5.2

  	
   

  	
  Capital Structure.

  	
   

  	
  20

  
	
  Section 5.3

  	
   

  	
  Subsidiaries and Investments.

  	
   

  	
  20

  
	
  Section 5.4

  	
   

  	
  Authority; Conflicts.

  	
   

  	
  20

  
	
  Section 5.5

  	
   

  	
  Financial Statements.

  	
   

  	
  22

  
	
  Section 5.6

  	
   

  	
  Operations Since Financial Statements Date

  	
   

  	
  23

  
	
  Section 5.7

  	
   

  	
  Taxes.

  	
   

  	
  23

  
	
  Section 5.8

  	
   

  	
  Governmental Permits.

  	
   

  	
  23

  
	
  Section 5.9

  	
   

  	
  Real Property.

  	
   

  	
  23

  
	
  Section 5.10

  	
   

  	
  Personal Property.

  	
   

  	
  24

  
	
  Section 5.11

  	
   

  	
  Intellectual Property.

  	
   

  	
  24

  
	
  Section 5.12

  	
   

  	
  Title to Property.

  	
   

  	
  25

  
	
  Section 5.13

  	
   

  	
  No Violation, Litigation or Regulatory Action

  	
   

  	
  25

  
	
  Section 5.14

  	
   

  	
  Contracts.

  	
   

  	
  25

  
	
  Section 5.15

  	
   

  	
  Status of Contracts

  	
   

  	
  26

  
	
  Section 5.16

  	
   

  	
  ERISA.

  	
   

  	
  26

  
	
  Section 5.17

  	
   

  	
  Environmental Matters.

  	
   

  	
  27

  
	
  Section 5.18

  	
   

  	
  Employee Relations and Agreements

  	
   

  	
  28

  
	
  Section 5.19

  	
   

  	
  No Undisclosed Liabilities

  	
   

  	
  29

  
	
  Section 5.20

  	
   

  	
  Sufficiency of Assets

  	
   

  	
  29

  
	
  Section 5.21

  	
   

  	
  Insurance.

  	
   

  	
  29

  
	
  Section 5.22

  	
   

  	
  Reserves.

  	
   

  	
  29

  
	
  Section 5.23

  	
   

  	
  Regulatory Filings

  	
   

  	
  30

  
	
  Section 5.24

  	
   

  	
  Ratings.

  	
   

  	
  30

  

 

 

	
  Section 5.25

  	
   

  	
  Reinsurance

  	
   

  	
  30

  
	
  Section 5.26

  	
   

  	
  No Brokers

  	
   

  	
  30

  
	
  Section 5.27

  	
   

  	
  Transaction with Affiliates

  	
   

  	
  30

  
	
  Section 5.28

  	
   

  	
  Certain Business Practices

  	
   

  	
  30

  
	
  Section 5.29

  	
   

  	
  Warranty Business

  	
   

  	
  31

  
	
  Section 5.30

  	
   

  	
  Actuarial Reports

  	
   

  	
  31

  
	
  Section 5.31

  	
   

  	
  Clients.

  	
   

  	
  31

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE VI REPRESENTATIONS AND WARRANTIES OF BUYER

  	
   

  	
  31

  
	
  Section 6.1

  	
   

  	
  Organization of Buyer

  	
   

  	
  31

  
	
  Section 6.2

  	
   

  	
  Authority of Buyer; Conflicts

  	
   

  	
  31

  
	
  Section 6.3

  	
   

  	
  No Violation, Litigation or Regulatory Action

  	
   

  	
  32

  
	
  Section 6.4

  	
   

  	
  Investment Intent

  	
   

  	
  33

  
	
  Section 6.5

  	
   

  	
  Financial Ability

  	
   

  	
  33

  
	
  Section 6.6

  	
   

  	
  No Brokers.

  	
   

  	
  33

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE VII ACTION PRIOR TO THE CLOSING DATE

  	
   

  	
  33

  
	
  Section 7.1

  	
   

  	
  Access to Information

  	
   

  	
  33

  
	
  Section 7.2

  	
   

  	
  Notification

  	
   

  	
  34

  
	
  Section 7.3

  	
   

  	
  Consents of Third Parties; Governmental Approvals

  	
   

  	
  34

  
	
  Section 7.4

  	
   

  	
  Operations Prior to the Closing Date

  	
   

  	
  36

  
	
  Section 7.5

  	
   

  	
  Termination of Certain Intercompany Indebtedness

  	
   

  	
  39

  
	
  Section 7.6

  	
   

  	
  Facilitating Transactions

  	
   

  	
  39

  
	
  Section 7.7

  	
   

  	
  Transferred Business

  	
   

  	
  40

  
	
  Section 7.8

  	
   

  	
  Exclusivity.

  	
   

  	
  40

  
	
  Section 7.9

  	
   

  	
  Success Bonus Payments

  	
   

  	
  40

  
	
  Section 7.10

  	
   

  	
  Financial and Statutory Statements

  	
   

  	
  40

  
	
  Section 7.11

  	
   

  	
  P&C Business

  	
   

  	
  41

  
	
  Section 7.12

  	
   

  	
  Actuarial Review

  	
   

  	
  41

  
	
  Section 7.13

  	
   

  	
  Additional Capital

  	
   

  	
  42

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE VIII ADDITIONAL AGREEMENTS

  	
   

  	
  42

  
	
  Section 8.1

  	
   

  	
  Tax Matters

  	
   

  	
  42

  
	
  Section 8.2

  	
   

  	
  Employee Matters

  	
   

  	
  46

  
	
  Section 8.3

  	
   

  	
  Securities Law Legends

  	
   

  	
  49

  
	
  Section 8.4

  	
   

  	
  Insurance; Risk of Loss

  	
   

  	
  49

  
	
  Section 8.5

  	
   

  	
  Release of Guaranties

  	
   

  	
  49

  
	
  Section 8.6

  	
   

  	
  Noncompetition and Nonsolicitation

  	
   

  	
  50

  
	
  Section 8.7

  	
   

  	
  Use of Names

  	
   

  	
  52

  
	
  Section 8.8

  	
   

  	
  Financial Information

  	
   

  	
  53

  
	
  Section 8.9

  	
   

  	
  Reissuance of FFG Policies

  	
   

  	
  54

  
	
  Section 8.10

  	
   

  	
  Certain Deposits

  	
   

  	
  54

  
	
  Section 8.11

  	
   

  	
  Existing Client Schedule

  	
   

  	
  54

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE IX CONDITIONS PRECEDENT TO OBLIGATIONS OF
  BUYER

  	
   

  	
  54

  
	
  Section 9.1

  	
   

  	
  No Misrepresentation or Breach of Covenants and
  Warranties

  	
   

  	
  54

  
	
  Section 9.2

  	
   

  	
  HSR Act and EU Merger Control.

  	
   

  	
  55

  

 

 

	
  Section 9.3

  	
   

  	
  Necessary Governmental Approvals

  	
   

  	
  55

  
	
  Section 9.4

  	
   

  	
  No Restraint

  	
   

  	
  55

  
	
  Section 9.5

  	
   

  	
  No Governmental Proceedings

  	
   

  	
  55

  
	
  Section 9.6

  	
   

  	
  [Intentionally Omitted.]

  	
   

  	
  55

  
	
  Section 9.7

  	
   

  	
  FIRPTA Certificate

  	
   

  	
  55

  
	
  Section 9.8

  	
   

  	
  Ratings

  	
   

  	
  55

  
	
  Section 9.9

  	
   

  	
  No MAE

  	
   

  	
  56

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE X CONDITIONS PRECEDENT TO OBLIGATIONS OF AON

  	
   

  	
  56

  
	
  Section 10.1

  	
   

  	
  No Misrepresentation or Breach of Covenants and
  Warranties

  	
   

  	
  56

  
	
  Section 10.2

  	
   

  	
  HSR Act and EU Merger Control

  	
   

  	
  56

  
	
  Section 10.3

  	
   

  	
  Necessary Governmental Approvals

  	
   

  	
  57

  
	
  Section 10.4

  	
   

  	
  No Restraint

  	
   

  	
  57

  
	
  Section 10.5

  	
   

  	
  No Governmental Proceedings

  	
   

  	
  57

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE XI INDEMNIFICATION

  	
   

  	
  57

  
	
  Section 11.1

  	
   

  	
  Indemnification by Aon

  	
   

  	
  57

  
	
  Section 11.2

  	
   

  	
  Indemnification by Buyer

  	
   

  	
  59

  
	
  Section 11.3

  	
   

  	
  Notice of Claims

  	
   

  	
  61

  
	
  Section 11.4

  	
   

  	
  Determination of Amount

  	
   

  	
  61

  
	
  Section 11.5

  	
   

  	
  Third Person Claims

  	
   

  	
  61

  
	
  Section 11.6

  	
   

  	
  Limitations

  	
   

  	
  63

  
	
  Section 11.7

  	
   

  	
  No Effect of Knowledge

  	
   

  	
  64

  
	
  Section 11.8

  	
   

  	
  Mitigation

  	
   

  	
  64

  
	
  Section 11.9

  	
   

  	
  Facilitating Transactions

  	
   

  	
  64

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE XII TERMINATION

  	
   

  	
   

  
	
  Section 12.1

  	
   

  	
  Termination

  	
   

  	
  64

  
	
  Section 12.2

  	
   

  	
  Notice of Termination

  	
   

  	
  65

  
	
  Section 12.3

  	
   

  	
  Effect of Termination

  	
   

  	
  65

  
	
  Section 12.4

  	
   

  	
  Specific Performance

  	
   

  	
  65

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE XIII GENERAL PROVISIONS

  	
   

  	
  65

  
	
  Section 13.1

  	
   

  	
  Survival of Representations and Warranties

  	
   

  	
  66

  
	
  Section 13.2

  	
   

  	
  No Public Announcement

  	
   

  	
  66

  
	
  Section 13.3

  	
   

  	
  Notices

  	
   

  	
  66

  
	
  Section 13.4

  	
   

  	
  Successors and Assigns

  	
   

  	
  68

  
	
  Section 13.5

  	
   

  	
  Access to Records after Closing

  	
   

  	
  68

  
	
  Section 13.6

  	
   

  	
  Entire Agreement; Amendments

  	
   

  	
  69

  
	
  Section 13.7

  	
   

  	
  Interpretation

  	
   

  	
  69

  
	
  Section 13.8

  	
   

  	
  Waivers

  	
   

  	
  69

  
	
  Section 13.9

  	
   

  	
  Expenses

  	
   

  	
  69

  
	
  Section 13.10

  	
   

  	
  Partial Invalidity

  	
   

  	
  70

  
	
  Section 13.11

  	
   

  	
  Execution in Counterparts

  	
   

  	
  70

  
	
  Section 13.12

  	
   

  	
  Further Assurances

  	
   

  	
  70

  
	
  Section 13.13

  	
   

  	
  Disclaimer of Warranties

  	
   

  	
  70

  
	
  Section 13.14

  	
   

  	
  Governing Law; Submission to Jurisdiction

  	
   

  	
  71

  
	
  Section 13.15

  	
   

  	
  Waiver of Jury Trial

  	
   

  	
  71

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Annex A Parent Entities

  	
   

  	
  1

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Annex B Subsidiaries

  	
   

  	
  1

  

 

 

 

[To be updated]

List of
Annexes

 

	
  Annex

  	
   

  
	
   

  	
   

  
	
  Annex A

  	
  Parent Entities

  
	
  Annex B

  	
  Subsidiaries

  
	
   

  	
   

  
	
  List of Exhibits

  
	
   

  
	
  Exhibit

  	
   

  
	
  Exhibit A-1

  	
  Form of Transition Services Agreement (Buyer as
  Service Provider)

  
	
  Exhibit A-2

  	
  Form of Transition Services Agreement (Seller
  as Service Provider)

  
	
  Exhibit B

  	
  Form of FIRPTA Certificate

  
	
  Exhibit C

  	
  Form of Real Estate Agreements

  
	
  Exhibit D

  	
  Form of Joinder Agreement

  
	
   

  	
   

  
	
  List of Schedules

  
	
   

  	
   

  
	
  Schedule

  	
   

  
	
   

  	
   

  
	
  1.1(A)

  	
  Agreed Accounting Principles

  
	
  1.1(C)

  	
  Designated AWG Employees

  
	
  1.1(D)

  	
  Excluded Subsidiaries and Excluded Liabilities

  
	
  1.1(E)

  	
  Facilitating Transactions

  
	
  1.1(F)

  	
  P&C Business

  
	
  1.1(G)

  	
  Permitted Encumbrances

  
	
  5.1

  	
  Organization of the Companies

  
	
  5.4

  	
  Conflicts

  
	
  5.5(a)

  	
  Financial Statements

  
	
  5.5(b)

  	
  Statutory Statements

  
	
  5.6

  	
  Operations Since Financial Statements Date

  
	
  5.7

  	
  Taxes

  
	
  5.8

  	
  Governmental Permits

  
	
  5.9

  	
  Real Property

  
	
  5.10

  	
  Personal Property

  
	
  5.11(a)

  	
  List of Intellectual Property

  
	
  5.11(b)

  	
  Software

  
	
  5.11(c)

  	
  Right, Title and Interest in Copyrights, Patent
  Rights and Trademarks

  
	
  5.11(d)

  	
  Registrations of Copyrights, Patent Rights,
  Trademarks and Software

  
	
  5.11(e)

  	
  Infringement of Copyrights, Patent Rights and
  Trademarks

  
	
  5.11(f)

  	
  Challenge to Copyrights, Patent Rights and Trademarks

  

 

 

 

	
  5.13

  	
  Violation, Litigation or Regulatory Action of
  Companies

  
	
  5.14

  	
  Contracts

  
	
  5.15

  	
  Status of Contracts

  
	
  5.16(a)

  	
  Welfare Plans and Pension Plans

  
	
  5.16(b)

  	
  Other Material Employee Benefits

  
	
  5.16(c)

  	
  Material International Employee Benefit Plans

  
	
  5.17

  	
  Environmental Matters

  
	
  5.18

  	
  Employee Relations and Agreements

  
	
  5.19

  	
  No Undisclosed Liabilities

  
	
  5.20

  	
  Sufficiency of Assets

  
	
  5.21

  	
  Insurance

  
	
  5.22

  	
  Reserves

  
	
  5.23

  	
  Regulatory Filings

  
	
  5.24

  	
  Ratings

  
	
  5.25

  	
  Reinsurance

  
	
  5.27

  	
  Transactions with Affiliates

  
	
  5.31

  	
  Clients

  
	
  6.2

  	
  Conflicts

  
	
  6.3

  	
  Violation, Litigation or Regulatory Action of Buyer

  
	
  7.4

  	
  Operations Prior to Closing Date

  
	
  7.10(b)(i)

  	
  Sample Income Statement

  
	
  7.10(b)(ii)

  	
  Sample Balance Sheet

  
	
  8.2(c)

  	
  Company Plans

  
	
  8.2(e)

  	
  Individual Employment Contracts

  
	
  8.10

  	
  Certain Deposits

  
	
  8.11

  	
  Existing Clients

  
	
  9.3

  	
  Necessary Governmental Approvals

  
	
  10.3

  	
  Necessary Governmental Approvals

  

 

 

 

 

PURCHASE AGREEMENT

PURCHASE
AGREEMENT (the “Agreement”), dated as of June 30,
2006, by and between Aon Corporation, a Delaware corporation (“Aon”),
and Warrior Acquisition Corp., a Delaware corporation (“Buyer”).

PRELIMINARY STATEMENT:

WHEREAS, Aon is the direct or indirect owner
of 100% of the issued and outstanding capital stock or similar equity interests
of each of those entities set forth in Annex A (except as otherwise
set forth therein) (collectively, the “Parent Entities”);

WHEREAS, the Parent Entities are the owners,
directly or indirectly, of 100% of the issued and outstanding capital stock or
similar equity interests of each of those entities set forth in Annex B
(except as otherwise set forth therein) (collectively, the “Subsidiaries”);

WHEREAS,
prior to the Closing, Aon shall cause each of the Facilitating Transactions (as
defined herein) to be consummated to the extent required by Exhibit A;

WHEREAS, Aon desires to sell, and Buyer
desires to purchase, all of the issued and outstanding capital stock or similar
equity interests of the Parent Entities owned as indicated on Annex A
(the “Shares”); and

NOW,
THEREFORE, in
consideration of the mutual covenants and agreements hereinafter set forth, the
parties hereto agree as follows:

ARTICLE I

DEFINITIONS

Section 1.1            Definitions.
In this Agreement, the following terms have the meanings specified or referred
to in this Section 1.1 and shall be equally applicable to both the
singular and plural forms.

“Accounting Firm” has the meaning specified in Section 4.5(a).

“Acquired Business” has the meaning specified in Section 8.6.

“Actuary”
has the meaning specified in Section 7.12.

“Administrative Authority” means any foreign, federal,
state, local or other governmental authority or regulatory body or stock exchange
or listing authority, including any applicable department of insurance.

“Affiliate”  means, with respect to any Person, any other Person which,
at the time of determination, directly or indirectly through one or more
intermediaries Controls, is Controlled by or is under Common Control with such
Person.

 1
 

 

 

“After-Tax Basis” means that, in determining the amount of the payment
necessary to indemnify any party against, or reimburse any party for, Losses,
the amount of such Losses shall be determined net of any Tax benefit derived by
the Indemnified Party (or any Affiliate thereof) as the result of sustaining or
paying such Losses (including as the result of facts or circumstances due to
which the Indemnified Party sustained or paid such Losses) and shall be increased
by the Tax detriment to the Indemnified Party (or any Affiliate thereof)
resulting from the receipt of such payment. Such Tax benefits and detriments
shall be computed assuming that the Indemnified Party (or such affiliate) is
subject to taxation at an invariant income tax rate equal to an appropriate
marginal tax rate for the respective legal entity, and that:  (i) with respect to Losses that are
fully deductible, such Tax benefits are fully utilized in the taxable period
during which such Losses are sustained or paid; (ii) with respect to
Losses that result in additions to Tax basis which basis is recoverable through
deductions over time, such Tax benefits are realized as cost recovery
deductions may be claimed by the Indemnified Party (or its relevant Affiliate)
and have a value equal to the present value of such deductions, as of the date
the Losses are incurred, calculated using the actual relevant recovery period
and a discount rate equal to the applicable federal rate (as such term is defined
in Section 1274(d) of the Code) that would apply to a debt instrument
with a term to maturity equal to the relevant recovery period; and (iii) with
respect to any Losses that result in additions to Tax basis which basis is not
recoverable through deductions over time, any such Tax benefit is equal to an
appropriate percentage of the Tax benefit that would have been realized had the
Losses been fully deductible in the year in which they were incurred based on
the assumed rate specified above and reasonable assumptions as to when such
benefit will be ultimately realized.

“Agreed Accounting Principles” means the accounting principles,
practices and methodologies applied in the preparation of the Balance Sheet, as
modified by the adjustments of the type set forth in the balance sheet attached
hereto as Schedule 1.1(A); provided, however, that
the parties acknowledge and agree that Closing Date Net Worth shall (i) be
calculated using currency exchange rates in effect on the date of this
Agreement, (ii) not include or reflect any matter for which Aon is
obligated to indemnify the Buyer Group Members under this Agreement (including
the reinsured balances relating to the P&C Business and/or the LGI Excluded
Business), regardless of whether such matter would be required to be included
or reflected by GAAP and (iii) be calculated using the Market Value of the
Investment Assets (excluding the Other Assets which shall be calculated at book
value).

“Aon” has the meaning set forth in the first paragraph of this
Agreement.

“Aon UK” means Aon Warranty Group Europe Limited, a corporation
organized under the laws of the United Kingdom.

“ASC” means Aon Service Corporation, an Illinois corporation.

“Audited
Financial Statements” has the meaning specified in Section 5.5(a).

“Balance Sheet” has the meaning specified in Section 5.5(a).

“Base Purchase Price” has the meaning set forth in Section 3.1.

“Business Agreements” has the meaning specified in Section 5.15.

 2
 

 

 

“Business Day” means any day that is not a Saturday, a Sunday or other day
on which commercial banks in the State of Illinois or the State of New York are
required or authorized to be closed.

“Buyer” has the meaning specified in the first paragraph of this
Agreement.

“Buyer Ancillary Agreements” means all agreements, instruments
and documents being or to be executed and delivered by Buyer or an Affiliate of
Buyer (including the Companies on or after the Closing Date) under this
Agreement or in connection herewith, including the Transition Services
Agreement (Seller as Service Provider) and the Transition Services Agreement
(Buyer as Service Provider).

“Buyer Consideration Period” has the meaning specified in Section 8.6(e).

“Buyer Group Member” means (i) Buyer and its
Affiliates, (ii) their respective directors, officers and employees, and (iii) the
successors and assigns of the foregoing.

“Buyer Plans” has the meaning specified in Section 8.2(h).

“Buyer’s Accountant” has the meaning specified in Section 4.5(a).

“Change of Control” means a transaction pursuant to
which Control of Aon (including by ownership of more than 50% of the voting
equity securities of Aon) or ownership of more than 50% of the consolidated
assets of Aon is acquired, directly or indirectly, by a Person not already an
Affiliate of Aon as of the Closing Date through (x) a tender or exchange
offer, merger, consolidation, share exchange or other business combination, (y) a
sale of securities, recapitalization, liquidation or dissolution or (z) a
sale of assets.

“Charter” means, with respect to a corporation, the Articles or
Certificate of Incorporation of such corporation.

“CICA Warranty Business” means the underwriting by
Combined and its Affiliates of credit life and credit accident and health
insurance policies in respect of the Warranty Business.

“CLAC”
means Combined Life Assurance Company Limited, an insurance company organized
under the laws of the United Kingdom.

“Claim Notice” has the meaning specified in Section 11.3.

“Client
Agreement” means, with respect to the provision of
Warranty TPA Services by Aon or any of its Affiliates (other than the
Companies), (a) an executed written definitive agreement relating to the
provision of such services, (b) a series of invoices describing such
services together with evidence of payment for such services by the client, or (c) other
written documentation clearly demonstrating the provision of such services by
Aon or any of its Affiliates, the payment received thereof, and in all cases
indicating the geography and program provided.

 3
 

 

 

“Closing” means the closing of the transfer of the Shares from Aon to
Buyer in exchange for the Preliminary Purchase Price.

“Closing Date” has the meaning specified in Section 4.1.

“Closing Date Net Worth” means Net Worth, as of the close
of business on the day before the Closing Date, after giving effect to (i) the
Facilitating Transactions, including any adjustments of the type set forth in
the balance sheet attached hereto as Schedule 1.1(A) and (ii) the
transactions contemplated by Section 7.5. For the avoidance of
doubt, as of December 31, 2005, the Net Worth for the Warranty Business
(after giving effect to the adjustments set forth in Schedule 1.1(A))
was $420,011,470.

“COBRA” has the meaning specified in Section 8.2(l).

“Code” means the Internal Revenue Code of 1986, as amended.

“Combined” means Combined Insurance Company of America, an Illinois
corporation.

“Companies” means, collectively, the Parent Entities and the
Subsidiaries; provided, however, for the purpose of Article V
and Article VII of this Agreement (other than Sections 5.2,
5.3 and 7.5, unless specifically referenced therein), the
Companies shall include FFG and Combined only with respect to the Transferred
Business, until such Transferred Business is transferred as part of the
Facilitating Transactions.

“Company Intellectual Property”
means all Copyrights, Patent Rights, Trademarks, trade names, service marks,
domain names, Trade Secrets, Software, and other intellectual property rights
and all applications therefor owned or licensed by any of the Companies.

“Company Plan” has the meaning specified in Section 5.16(a).

“Confidentiality Agreement” means the letter agreement dated
December 12, 2005 between an Affiliate of Buyer and Aon.

“Contaminant” means any waste, contaminant, pollutant, or hazardous or
toxic substance or waste, as such terms are defined in Environmental Laws and
includes, for purposes of this Agreement, any petroleum or petroleum wastes.

“Control” means, as to any Person, the ownership of more than 50% of
the voting equity securities of such Person. The terms “Controlled by” and “under
Common Control with” shall have correlative meanings.

“Copyrights” means United States and foreign registered copyrights, and
pending applications to register the same.

“Court Order” means any judgment, order, award or decree of any foreign,
federal, state, local or other court or tribunal and any award in any
arbitration proceeding.

 4
 

 

 

“CPI” means the Consumer Price Index for
All Urban Consumers (CPI-U) for Chicago-Gary-Kenosha as published by the United
States Department of Labor’s Bureau of Labor Statistics (or any successor
Administrative Authority).

“Designated AWG Employee”
means those employees specified in Schedule 1.1(C).

“Encumbrance” means any lien, adverse claim, charge, security interest,
mortgage, pledge, easement, conditional sale or other title retention
agreement, defect in title or other restrictions of a similar kind.

“Environmental Laws” means all federal, state, local
and foreign statutes, regulations, ordinances and other provisions having the
force or effect of law, in each case, concerning worker health and safety and
pollution or protection of the environment (including those relating to the
presence, use, production, generation, handling, transport, treatment, storage,
disposal, distribution, labeling, testing, processing, discharge, Release,
threatened Release, control or cleanup of any Contaminant), each as amended and
in effect as of the date hereof.

“ERISA” means the Employee Retirement Income Security Act of 1974.

“ERISA Affiliate” means any trade or business (whether or not incorporated)
which would be considered a single employer with the Company pursuant to Section 414(b),
(c), (m) or (o) of the Code and the regulations promulgated under
those Sections.

“Estimated Closing Date Net Worth” has the meaning specified in Section 4.2(b).

“Estimated Net Worth Adjustment Amount” means the Estimated Closing Date
Net Worth minus $420,011,470.

“Excluded Assets” means any and all rights, properties or assets of VSC, LGI,
LGH and CLAC of any kind, whether known or unknown, and whether absolute,
contingent, accrued or otherwise, to the extent not related to the Warranty
Business, excluding any rights, properties or assets expressly retained by
Buyer or its Affiliates (including the Companies after the Closing) pursuant to
the terms of any Facilitating Transaction Agreement (including all deposits
held with or for the benefit of any Administrative Authority, whether or not
related to the Warranty Business).

“Excluded Liabilities” means any and all liabilities or
obligations of (i) VSC, LGI, LGH and CLAC of any kind, whether known or
unknown, and whether absolute, contingent, accrued or otherwise, to the extent
arising from or relating to (A) the Excluded Assets, (B) any
business, activities or actions of VSC, LGI, LGH and CLAC at any time prior to
the Closing, excluding any business, activities or actions to the extent
arising from or relating to the Warranty Business but including the P&C
Business and the LGI Excluded Business or (C) any breach by any reinsurer
with respect to policies or other risks constituting Excluded Liabilities under
clause (i)(B) above or any failure by such a reinsurer to perform any of
its covenants or obligations in any agreement or undertaking with respect to
such policies or risks, 

 5
 

 

 

(ii) the Companies with respect to the Success
Bonus Agreements, (iii) the Excluded Subsidiaries (other than FFG with
respect to the FFG Warranty Business), and (iv) each of the matters set
forth in Schedule 1.1(D)(2). Notwithstanding
the foregoing, Excluded Liabilities shall not include (x) any liabilities
or obligations that Seller or its Affiliates are expressly excused from paying
or performing pursuant to the terms of any Facilitating Transaction Agreement, (y) any
liabilities or obligations that Buyer or its Affiliates (including the
Companies after the Closing) are required to pay or perform pursuant to the
terms of any Facilitating Transaction Agreement or (z) any liabilities or
obligations to the extent caused by the breach or non-performance of Buyer or its
Affiliates (including the Companies after the Closing) under a Facilitating
Transaction Agreement.

“Excluded Subsidiaries”
means the entities identified as “Excluded Subsidiaries” in Schedule
1.1(D)(1).

“Excluded Taxes” has the meaning specified in Section 8.1(a)(i).

“Exempt
Business Activities”
means (i) engaging in any Warranty TPA Services for any client which is
both a Scheduled Client and an Existing Client only within the geographic areas
and for the programs within each such geographic area set forth for such client
in the Existing Client Schedule, (ii) any TPA Services to the extent not
Warranty TPA Services, (iii) debt cancellation and/or trip cancellation
products and related TPA Services, (iv) administrative and underwriting
services (other than TPA Services that are Warranty TPA Services), (v) captive
management services and (vi) administration of maintenance and repair
programs for automobile fleets owned and used by corporate clients, in which
neither Aon nor its Affiliates assumes risk. For the avoidance of doubt, “Exempt
Business Activities” includes any insurance or reinsurance brokerage services
(together with any related services) (in respect of the Warranty Business or
otherwise), any consulting services and any business activities relating to
supplemental accident, health and life insurance or specialty individual
accident, disability, health and life insurance products. For purposes of this
definition, the definitions of Client Agreement and Existing Client Schedule
and Section 8.11, (a) the provision of TPA Services with respect to
each of the product lines and classes of products described in each of clauses
(i), (ii), (iii), (iv), (v), (vi) and (vii) of the definition of
Warranty Business is a separate “program,” (b) with respect to clause (i) of
the definition of Warranty Business, extended warranty, mechanical repair and
service contracts are a product line and prepaid maintenance agreements are a
different product line, and (c) each of the types of products listed in
clause (i) of the definition of Warranty Business is a separate class. For
the avoidance of doubt and as an example, providing TPA Services with respect
to extended warranty, mechanical repair and service contracts for motor
vehicles is a program and providing TPA Services with respect to extended
warranty, mechanical repair and service contracts for motor homes is a
different program.

“Existing Client”
means a client of Aon or its Affiliates (other than the Companies) who has a
Client Agreement that is in effect on the date hereof.

“Existing Client Schedule”
means a schedule listing each Existing Client and the geographic area(s) and
within each such geographic area the program(s) for which Aon or its
Affiliates (other than the Companies) is providing Warranty TPA Services to
such Existing 

 6
 

 

 

Client under a Client Agreement with such client on
the date hereof, as such schedule may have been amended from time to time in
accordance with Section 8.11 hereof.

“Expenses” means any and all reasonable out-of-pocket expenses actually
incurred in connection with defending or asserting any claim, action, suit or
proceeding incident to any matter indemnified against hereunder (including
reasonable fees and disbursements of legal counsel).

“Facilitating Transactions”
means the transactions detailed in Schedule 1.1(E).

“Facilitating Transaction Agreements”
means those agreements utilized in connection with the implementation of the
Facilitating Transactions, which shall be substantially in the form specified
in Schedule 1.1(E) for any agreement attached to such schedule.

“Facilitating Transaction Taxes”
means any Taxes that are imposed, at any time, on any of Aon, Buyer or any of
their Affiliates, as a result of the consummation or implementation of the
Facilitating Transactions; provided, however, that Facilitating Transaction
Taxes shall not include any Reserved Taxes or any incremental Taxes that are
imposed on any of Aon, Buyer or any of their Affiliates at any time after the
Closing Date due to the reduction, as a consequence of and as of the date of
the consummation or implementation of the Facilitating Transactions, of (a) tax
basis for any asset of Aon, Buyer or any such Affiliate or (b) any other
tax attribute of Aon, Buyer or any such Affiliate.

“FFG”
means FFG Insurance Company, a Texas insurance company.

“FFG Warranty Business” means all of the rights,
properties, assets and liabilities of FFG of any kind, whether known or
unknown, and whether absolute, contingent, accrued or otherwise, other than
rights, properties, assets and liabilities expressly retained by FFG pursuant
to the Facilitating Transaction Agreements (including all deposits held with or
for the benefit of any Administrative Authority).

“Financial Statements” has the meaning specified in Section 5.5(a).

“Financial Statements Date” means March 31, 2006.

“GAAP” means United States generally accepted accounting
principles, consistently applied.

“Governmental Permits” has the meaning specified in Section 5.8.

“Guaranties” has the meaning specified in Section 8.5.

“Healthcare Spending Account Opening Balance”
has the meaning specified in Section 8.2(k).

“Hedge Agreement” means any interest
rate swap, cap, collar or similar agreement and any agreement designed to
protect a Person against foreign currency exchange rate fluctuations.

 7
 

 

 

“HSR Act” means the Hart-Scott-Rodino Antitrust Improvements Act of
1976.

“Indebtedness” means,
with respect to any Person, (a) indebtedness of such Person for borrowed
money, (b) other indebtedness of such Person evidenced by notes, bonds or
debentures, (c) capitalized leases classified as indebtedness of such
Person under GAAP, (c) any obligation of such Person for the deferred
purchase price of property or services (other than trade payables and other
current liabilities), (d) all obligations of such Person pursuant to or
evidenced by Hedge Agreements, (e) all Indebtedness of another Person
referred to in clauses (a) through (d) above guaranteed directly
or indirectly in any manner by such Person, or in effect guaranteed directly or
indirectly and (f) all obligations under any acquisition agreements
pursuant to which such Person is responsible for any earn-out or other
contingent payments.

“Indemnified Party” has the meaning specified in Section 11.3.

“Indemnitor” has the meaning specified in Section 11.3.

“Insurance Policies” has
the meaning specified in Section 5.21.

“Investment Assets”
means (i) with respect to VSC (except with respect to any foreign “branches”
of VSC) the liquid fixed income and maturity debt securities held or acquired
by VSC as investments in the ordinary course of business, (ii) with
respect to any Company other than VSC, any foreign “branches” of VSC), and any
other Person operating a portion of the Transferred Business with respect to
such portion of the Transferred Business, any investments held or acquired by
such Person in the ordinary course of business (it being understood that, in
the case of (i) and (ii), a portion of the investments are being held, and
must be retained, as deposits with or for the benefit of an Administrative
Authority) and (iii) Other Assets.

“Knowledge of Aon” means, as to a particular matter, the actual knowledge of
the following persons:  Aon’s Executive
Chairman, Chief Executive Officer, Chief Financial Officer and Senior Vice
President/Treasurer and each of the following: 
David L. Cole, Mark H. Mishler, Mike Frosch, Roger Powell, David R.
Scott, James Donaldson, Chuck LaMantia, Perry Kupferman, C. Steve Hayes, Tony
Jackovich, John Serafin and Geoffrey Witt.

“Knowledge of Buyer” means, as to a particular
matter, the actual knowledge of the following persons:  Robert M. LeBlanc, Andrea E. Daly and Adam W.
Reinmann.

“Leased Real Property” has the meaning specified in Section 5.9.

“LGH”
means London General Holdings Limited, a company organized under the laws of
the United Kingdom.

“LGI”
means London General Insurance Company Limited, an insurance company organized
under the laws of the United Kingdom.

“LGI Excluded Business” means (i) the Irish
Contractors program (with lines of business including general liability,
employers’ liability and contractors all risks) and (ii) the underwriting
by LGI of life and accident and health insurance policies in Spain and
Portugal.

 8
 

 

 

“Losses” means any and all losses, costs, settlement payments,
awards, judgments, fines, penalties, damages, expenses, deficiencies or other
charges.

“Market
Value” means, as of the applicable date, the value as
determined by Interactive Data Corporation or, in the case of securities issued
outside of the U.S. for which Interactive Data Corporation does not regularly
provide the requested information, by Bloomberg Financial or an internationally
recognized broker agreed upon by the parties.

“Material Adverse Effect” means a material adverse effect
on the business, assets, results of operations or condition (financial or
otherwise) of the Warranty Business taken as a whole, other than any such
effect (i) resulting from changes in generally applicable economic,
political or regulatory conditions or the Companies’ industry in general (including
changes in GAAP or SAP) to the extent not having a disproportionate effect on
the Companies compared to its peers in the warranty business or (ii) arising
out of or relating to the identity of Buyer or its Affiliates. Notwithstanding
the foregoing, the parties hereto acknowledge and agree that in no event shall
any matter that is or would be an Excluded Asset, Excluded Subsidiary or
Excluded Liability constitute or give rise to, in whole or in part, a Material
Adverse Effect except to the extent it has an effect on the business, assets,
results of operations or condition (financial or otherwise) of the Warranty
Business. For the avoidance of doubt, the actuarial review described in Section 7.12
and any result, consequences or actions arising out of such review shall under
no circumstances be taken into account in the determination of a Material
Adverse Effect.

“Multiemployer Plan” means a “multiemployer plan,” as
defined in Section 4001(a)(3) of ERISA.

“Net Worth” means an amount equal to (i) the value of the assets of
the Warranty Business determined in accordance with the Agreed Account
Principles (excluding, for the avoidance of doubt, goodwill) minus (ii) the
value of the liabilities of the Warranty Business determined in accordance with
the Agreed Accounting Principles, in each case, as of the date of
determination.

“Net Worth Adjustment Amount” means the Closing Date Net Worth
minus $420,011,470.

“Net Worth Adjustment Report” has the meaning specified in Section 4.5.

“Net Worth Adjustment Report Finalization Date” means the date which is
30 days after the date on which the Net Worth Adjustment Report is
delivered by Aon to Buyer; provided, however, that if Buyer or Buyer’s
Accountant delivers a notice of exception within such 30-day period, and
if any change to the Net Worth Adjustment Report is agreed to by Buyer and Aon
in accordance with Section 4.5, then the date on which Buyer and
Aon agree in writing to such change shall be the Net Worth Adjustment Report
Finalization Date; and, provided, further, that if Aon and Buyer cannot agree
upon the Net Worth Adjustment Amount, then the date on which the Accounting
Firm delivers its decision with respect to such dispute in accordance with Section 4.5
shall be the Net Worth Adjustment Report Finalization Date.

 9
 

 

“Obligor” means a business entity
other than an insurer that assumes the obligation to repair, replace or
maintain a consumer product under an extended warranty, service contract or
prepaid maintenance agreement.

“Organizational Documents”
has the meaning specified in Section 5.1.

“Other
Assets” means dealer loans in the ordinary course of
business and the owned real estate in Dallas, Texas.

“Owned Real Property”
has the meaning specified in Section 5.9.

“Parent Entities” has the meaning specified in the Preliminary Statement of
this Agreement.

“Patent Rights” means United States and foreign patents, patent
applications, continuations, continuations-in-part, divisions or reissues.

“P&C Business” means the accounts and programs identified in Schedule 1.1(F).

“P&C Underwriting” has the meaning specified in Section 7.12.

“Pension Plan” means any pension plan, as defined in Section 3(2) of
ERISA, applied without regard to the exceptions from coverage contained in Section 4(b)(4) or
4(b)(5) thereof.

“Permitted Encumbrances” means (i) liens for Taxes
and other governmental charges and assessments which are not yet due and
payable, (ii) liens of landlords and liens of carriers, warehousemen,
mechanics and materialmen and other like liens arising in the ordinary course
of business for sums not yet due and payable, (iii) Encumbrances
identified in Schedule 1.1 (G) of this Agreement, (iv) other
Encumbrances or imperfections on property which are not material in amount or
do not materially detract from the value of or materially impair the existing
use of the property affected by such Encumbrance, imperfection or such other
matter, agreement or exception, and (v) Encumbrances that are set forth on
the Balance Sheet or Statutory Statements.

“Person” means any individual, corporation, partnership, limited
liability company, joint venture, association, joint-stock company, trust,
unincorporated organization or Administrative Authority.

“Potential Transaction”
has the meaning specified in Section 7.8.

“Preliminary Purchase Price” has the meaning specified in Section 4.2.

“Purchase Price” has the meaning specified in Section 3.1.

“Real
Estate Agreements” means the real estate agreements
substantially in the forms attached hereto as Exhibit C.

 10
 

 

“Real Property” has the
meaning specified in Section 5.9.

“Release” means the release, spill, emission, leaking, pumping,
injection, deposit, disposal, discharge, dispersal, leaching or migration of a
Contaminant into the environment.

“Remedial Action” means actions required by any Environmental Law to (i) clean
up, remove, treat or in any other way address Contaminants in the environment, (ii) prevent
the Release or threatened Release or minimize the further Release of
Contaminants or (iii) investigate and determine if Remedial Action is
required, and to design and implement such Remedial Action, including any
necessary post-remedial investigation, monitoring, operation and maintenance
and care.

“Requirements of Law” means any foreign, federal,
state and local laws, statutes, regulations, rules, codes or ordinances
enacted, adopted, issued or promulgated by any Administrative Authority.

“Reserved Consolidated Taxes”
has the meaning specified in Section 8.1(a).

“Reserved Taxes” has the meaning specified in Section 8.1(a).

“Restricted Business” means any business of the type
described in the first sentence of the definition of Warranty Business (other
than clause (ix) thereof) as conducted by the Companies and FFG and
Combined and its Affiliates (with respect to the Transferred Business) as of
the date hereof or the immediately preceding 12 month period, other than any
Exempt Business Activities.

“Restricted Period” has the meaning specified in Section 8.6.

“RLIC”
means Resource Life Insurance Company, an Illinois insurance company.

“SAP” means the
statutory accounting principles and practices prescribed or permitted by
applicable insurance regulatory authorities.

“Scheduled Client” means any client of
Aon or its Affiliates listed on the Existing Client Schedule.

“Securities Act” means the Securities Act of 1933.

“Seller Ancillary Agreements” means all agreements,
instruments and documents being or to be executed and delivered by any Seller
Group Members under this Agreement or in connection herewith, including the
Transition Services Agreement (Seller as Service Provider), the Transition
Services Agreement (Buyer as Service Provider), the Facilitating Transaction
Agreements and the Real Estate Agreements.

“Seller Group Member” means (i) Aon and its
Affiliates, (ii) the directors, officers and employees of Aon and its
Affiliates, and (iii) the successors and assigns of the foregoing.

 11
 

 

“Sellers” means Aon, Aon UK, Combined and Sterling.

“Shares” has the meaning set forth in the fifth paragraph of this
Agreement.

“Software” means computer software programs and related documentation
and materials, whether in source code, object code or human readable form; provided,
however, that Software does not include software that is (i) available
generally through retail stores, distribution networks or is otherwise subject
to “shrink-wrap” or “click-through” license agreements, including any software
pre-installed in the ordinary course of business as a standard part of hardware
purchased by any of the Companies or (ii) made available pursuant to the
Transition Services Agreement.

“Statutory Statements” has the meaning specified in Section 5.5(b).

“Sterling” means Sterling Life Insurance Company, an Illinois
corporation.

“Straddle Period” means any taxable year or period beginning on or before and
ending after the Closing Date.

“Subsidiaries” has the meaning set forth in the Preliminary Statement of
this Agreement.

“Success
Bonus Agreements” means those agreements identified in
Item 4 of Schedule 5.18.

“Success Bonus Payments”
means any and all payments required to be made under the Success Bonus
Agreements as a result of the consummation of the transactions contemplated
hereby.

“Tax” means (i) any federal, state, local or foreign income,
gross receipts, property, sales, use, license, excise, franchise, employment,
payroll, withholding, alternative or add-on minimum, ad valorem, value added,
transfer or excise tax, premium, windfall profit, severance, production, stamp
or environmental tax, (ii) any other tax, custom, duty, governmental fee
or other like assessment or charge of any kind whatsoever, (iii) any
interest or penalty, addition to tax or additional amount imposed by any taxing
authority of any Administrative Authority with respect to or in connection with
liability for any of the amounts described in clauses (i) or (ii) of
this definition, or (iv) any amounts described in clauses (i), (ii) or
(iii) of this definition for which a party is liable under any statute or
regulation that imposes joint or several liability for such amounts on members
of an affiliated, combined, consolidated or unitary group of corporations or
entities.

 

 12

 

 

“Tax Package” has the meaning set forth in Section 8.1(b)(iii).

“Tax Return” means any return, report or similar statement required to be
filed with respect to any Tax (including any attached schedules), including any
information return, claim for refund, amended return or declaration of
estimated Tax.

“TPA Services”  means third party administrative services,
such as customer relationship management, financial services administration,
claims management, captive management and call center management.

“Trade Secrets” has the meaning set forth in §2(d) of the Illinois
Trade Secrets Act (765 ILCS 1065).

“Trademarks” means registered United States federal, state and foreign
trademarks, service marks and trade names, and pending applications to register
the foregoing.

“Transferred Business” shall mean the FFG Warranty
Business and the CICA Warranty Business (including the Warranty Business
described in Schedule 1.1(E)).

“Transferred Employees” has the meaning specified in Section 8.2(a).

“Transition Services Agreement (Buyer as Service
Provider)” means
the Transition Services Agreement in the form attached hereto as Exhibit 
A-1. If, at least 30 days prior to the Closing Date, Aon determines
and notifies Buyer in writing that it has inadvertently omitted from Annex A
to the Transition Services Agreement (Buyer as Service Provider) services which
prior to the Closing were provided by the Companies to Aon or its Affiliates
and are reasonably necessary to the operations of the business being conducted
by Aon or its Affiliates, Buyer shall evaluate such notice in good faith and,
provided that the provision of such Services would not impose any unreasonable
burden or additional cost on the Companies, Annex A thereto shall be
amended to add such services and the cost and length of the transition period
for such services shall be determined in the same manner that the cost and
length of the transition period for the other services was determined.

“Transition Services Agreement (Seller as Service
Provider)” means
the Transition Services Agreement in the form attached hereto as Exhibit 
A-2. Notwithstanding the foregoing, Buyer may, upon written notice to
Aon delivered at least thirty days prior to the Closing Date, update Annex A
thereto to remove any Service(s) listed therein; provided that, in such
case, Buyer shall pay Aon the lesser of (i) Aon’s actual incremental costs
incurred through the date of Buyer’s notice in connection with its preparation
to provide the affected Service(s) to the Companies after the Closing and (ii) the
cost of the affected Service(s) for 30 days. As soon as reasonably
practicable following receipt of any such notice, but in no event later than
five Business Days thereafter, Aon shall advise Buyer as to whether removal of
such Service(s) would require the removal or partial removal of, or
otherwise affect the provision of, any other Services. If such is the case,
Buyer may withdraw its notice to remove any service within three days of being
so advised by Aon. In addition, if, at least 30 days prior to the Closing Date,
Buyer determines and notifies Aon in writing that it has inadvertently omitted
from Annex A to the Transition Services Agreement (Seller as Service
Provider) services which prior to the Closing were provided by Aon or its
Affiliates to the Companies and are reasonably necessary to the operations of
the Warranty Business, Aon shall evaluate such notice in good faith and,
provided that the provision of such Services would not impose any unreasonable
burden or additional cost on Aon or its Affiliates, Annex A shall be
amended to add such services and the cost and length of the transition period
for such services shall be determined in the same manner that the cost and
length of the transition period for the other services was determined.

 13
 

 

 

“Treasury Regulation” means the regulations
promulgated under the Code by the U.S. Treasury Department.

“Unaudited
Financial Statements” has the meaning specified in Section 5.5(a).

“Underwriting Companies” means Resource Life Insurance
Company, an Illinois insurance company, Virginia Surety Company, Inc., an
Illinois insurance company, Virginia Surety Compania de Seguros, an Argentina
insurance company, Rockford Life Insurance Company, an Arizona insurance
company, Automotive Warranty Services of Florida Inc., a Florida corporation,
ServiceSaver, Incorporated, a Florida corporation, ServicePlan of Florida, Inc,
a Florida corporation, First Extended Service Corporation of Florida, a Florida
corporation, Combined Insurance Company de Argentina S.A. Compania de Seguros,
an Argentina insurance company, Combined Seguros Brazil SA, a Brazil insurance
company, Combined Life Assurance Company Limited, a United Kingdom insurance
company, and London General Insurance Company Limited, a United Kingdom
insurance company, and FFG Insurance Company.

“VSC”
means Virginia Surety Company, Inc., an Illinois insurance company.

“Warranty Business” means the world-wide business
conducted by the Companies (including FFG and Combined and its Affiliates with
respect to the Transferred Business) of (i) underwriting by an insurer or
an Obligor of extended warranty, mechanical repair, service contracts or
pre-paid maintenance agreements covering repair, replacement or scheduled
maintenance for motor vehicles, motorcycles, motor homes, motorized
recreational vehicles, personal watercraft, electronic products, appliances,
personal computers and peripherals, home heating, ventilation, air
conditioning  plumbing and electrical
systems and appliances and other consumer products, (ii) underwriting by
an insurer of credit life and credit disability insurance and involuntary
unemployment insurance or underwriting by an unaffiliated insurer of credit
life and credit disability insurance and involuntary unemployment insurance for
which one of the Companies acts as an agent with respect to such insurance in
connection with performing other activities described in the other clauses of
this definition, (iii) underwriting by an insurer or an Obligor of travel
protection and travel related protection programs and of  membership programs to the extent related to
Warranty Business products, (iv) underwriting by an insurer or an Obligor
of credit card enhancement programs, (v)  underwriting by an insurer or an
Obligor of guaranteed asset protection (GAP) products for loans and leases on
motor vehicles, motorcycles, motor homes, motorized recreational vehicles and
personal watercraft separate from standard motor vehicle, motorcycle, motor
home, motorized recreational vehicle or personal watercraft coverage, (vi) underwriting
by an insurer of stop loss or failure to perform insurance coverage for
Obligors or for motor vehicle dealers, (vii) underwriting by an insurer or
an Obligor of vehicle replacement insurance (VRI), accidental damage to
consumer products, identity theft and virus protection, (viii) providing
TPA Services to the extent solely with respect to clauses (i) through (vii) above
(“Warranty TPA Services”),
and (ix) providing training and consulting services for motor vehicle
manufacturers and dealers related to variable operations, automobiles sales
activities and fixed operations activities at the point of sale, customer
satisfaction activities and including, for the avoidance of doubt, the
arrangement of client captive reinsurers for any Warranty Business client with
respect to clauses (i) through (vii) above and excluding, for the
avoidance of doubt, the P&C Business and the LGI Excluded Business. In 

 14
 

 

 

addition, the “Warranty Business” includes all other
business, products, services, programs, arrangements and activities (including
marketing, distribution and administration arrangements and activities)
described as being part of the Warranty Business in that certain Confidential
Offering Memorandum of the Aon Warranty Group dated December 2005, including
customer loyalty programs and the Resource Variable Income Partners program.  The phrase “underwriting by an insurer or an
Obligor” or “underwriting by an insurer” means that such underwriting is
performed by one of the Companies. The term “consumer products” includes such
products also used for or by a business.

“Welfare Plan” means any welfare plan, as defined in Section 3(1) of
ERISA, applied without regard to the exceptions from coverage contained in
Sections 4(b)(4) or 4(b)(5) thereof.

Section 1.2            Interpretation.
For purposes of this Agreement, (i) the words “include,” “includes” and “including”
shall be deemed to be followed by the words “without limitation,” (ii) the
word “or” is not exclusive, (iii) the words “herein”, “hereof”, “hereby”, “hereto”
and “hereunder” refer to this Agreement as a whole, including all schedules,
exhibits and annexes attached to this Agreement and (iv) information will
be considered to have been “made available” to Buyer only to the extent that
such information was posted to the DataSite maintained by Merrill Corporation
for “Project Warrior 2005” or delivered to Buyer or its counsel no later than
24 hours prior to the date hereof. Unless the context otherwise requires,
references herein:  (i) to Articles,
Sections, Exhibits and Schedules mean the Articles and Sections of, and the
Exhibits and Schedules attached to, this Agreement; (ii) to an agreement,
instrument or other document means such agreement, instrument or other document
as amended, supplemented and modified from time to time to the extent permitted
by the provisions thereof and by this Agreement; and (iii) to a statute
means such statute as amended from time to time and includes any successor
legislation thereto and any regulations promulgated thereunder. The schedules,
exhibits and annexes referred to herein shall be construed with and as an
integral part of this Agreement to the same extent as if they were set forth
verbatim herein. Titles to Articles and headings of Sections are inserted for
convenience of reference only and shall not be deemed a part of or to affect
the meaning or interpretation of this Agreement. Unless expressly indicated to
the contrary, all dollar amounts are expressed in United States funds, and all
amounts payable hereunder shall be paid in United States funds.

ARTICLE
II

PURCHASE
AND SALE

Section 2.1            Purchase
and Sale of the Shares. Upon the terms and subject to the
conditions of this Agreement, on the Closing Date, Aon shall (and shall cause
the other Sellers to) sell, transfer, assign, convey and deliver to Buyer, free
and clear of all Encumbrances, and Buyer shall purchase and accept from
Sellers, the Shares.

 15
 

 

 

ARTICLE
III

PURCHASE
PRICE

Section 3.1            Purchase
Price. The purchase price for the Shares shall be equal
to $710,000,000 (Seven Hundred Ten Million Dollars) (the “Base Purchase
Price”), plus (or, if a negative amount, minus the absolute value of) the
Net Worth Adjustment Amount (the Base Purchase Price, as adjusted by the Net
Worth Adjustment Amount, the “Purchase Price”). The Purchase Price shall
be paid pursuant to Article IV.

ARTICLE
IV

CLOSING

Section 4.1            Closing
Date. The Closing shall be consummated on a date and at a
time agreed upon by Buyer and Aon, but in no event later than the fifth
Business Day after the date on which the conditions set forth in
Articles IX and X have been satisfied or waived, at the offices of Kaye
Scholer LLP, 425 Park Avenue, New York, New York, or at such other time and
place as shall be agreed upon by Buyer and Aon; provided, however,
that to the extent that one or more landlord consents required in order to
effectuate the transactions contemplated by the Real Estate Agreements
identified on Schedule 4.1 hereto shall not have been obtained prior to
the Closing Date established in accordance with the foregoing, Buyer may upon
notice to Aon, delay the Closing for a period not to exceed forty-five (45)
days in order to make alternate arrangements with respect to the operations to
have otherwise been located in the applicable unavailable property; provided, further, however, that in no event shall any such delay
cause the Closing Date to be later than December 31, 2006. The date
on which the Closing is actually held is referred to herein as the “Closing
Date” and the Closing shall be deemed to occur at 12:01 a.m. Central
Standard Time on the Closing Date.

Section 4.2            Payment
on the Closing Date. (a)  Subject to
fulfillment or waiver (where permissible) of the conditions set forth in Article IX,
at the Closing, Buyer shall pay to Aon (or other Sellers as directed by Aon),
an amount equal to the Base Purchase Price, plus (or, if a negative amount,
minus the absolute value of) the Estimated Net Worth Adjustment Amount (the “Preliminary
Purchase Price”), by wire transfer of immediately available funds to the bank
account or accounts specified by Aon in accordance with paragraph (b) hereof.

(b)           Not less than five (5) Business
Days prior to the Closing Date, Aon shall prepare and deliver to Buyer (i) Aon’s
estimate of Closing Date Net Worth (“Estimated Closing Date Net Worth”)
and (ii) the amount of the Preliminary Purchase Price calculated based
thereupon and the wire transfer instructions for Aon.

(c)           Notwithstanding
anything to the contrary contained herein, in the event that Buyer delivers a
written notice to Aon not less than two (2) Business Days prior to the
Closing Date of its good faith disagreement with Aon’s calculation of the
Estimated Closing Date Net Worth and Aon and Buyer fail to resolve such
objections prior to the Closing Date, the Estimated Closing Date Net Worth
shall be determined as follows:  (i) if
the Estimated Closing Date Net Worth calculated by each of Buyer and Aon
exceeds $420,011,470, the Estimated Closing Date Net Worth shall be deemed to
be equal to the smaller of such amounts, (ii) if the Estimated Closing
Date Net Worth calculated by each of Buyer and Aon is less than $420,011,470,
the Estimated Closing Date Net Worth shall be 

 16
 

 

 

deemed to be equal to the greater of such amounts and (iii) in
all other cases, the Estimated Closing Date Net Worth shall be deemed to be
equal to $420,011,470 (and the corresponding Estimated Net Worth Adjustment
Amount equal to zero).

Section 4.3            Buyer’s
Additional Closing Date Deliveries. Subject to
fulfillment or waiver (where permissible) of the conditions set forth in Article IX,
at the Closing Buyer shall deliver to Aon, in addition to the Preliminary
Purchase Price, all of the following:

(a)           Certificate of the
secretary or an assistant secretary of Buyer, dated the Closing Date, in form
and substance reasonably satisfactory to Aon, as to (i) the Charter of
Buyer; (ii) the By-Laws of Buyer; (iii) the resolutions of the Board
of Directors of Buyer authorizing the execution and performance of this
Agreement, any Buyer Ancillary Agreement and the transactions contemplated
hereby and thereby; and (iv) incumbency and signatures of the officers of
Buyer executing this Agreement and any Buyer Ancillary Agreement;

(b)           The Transition
Services Agreement (Seller as Service Provider) and the Transition Services Agreement
(Buyer as Service Provider), in each case duly executed by Buyer;

(c)           The certificate
contemplated by Section 10.1, duly executed by a duly authorized
officer of Buyer;

(d)           The Joinder
Agreement in the form of Exhibit D, duly executed by each of the
Parent Entities and each of the Subsidiaries in each case to the extent that
such Persons are both incorporated in the United States and are not
Underwriting Companies; and

(e)           Any consents and
approvals that may be obtained by Buyer with respect to the consummation of the
transactions contemplated by this Agreement.

Section 4.4            Aon’s
Closing Date Deliveries. Subject to fulfillment or waiver
(where permissible) of the conditions set forth in Article X, at
the Closing Aon shall deliver (or cause to be delivered) to Buyer all of the
following:

(a)           Certificate of the
secretary or an assistant secretary of Aon and ASC, dated the Closing Date, in
form and substance reasonably satisfactory to Buyer, as to (i) the Charter
of Aon and ASC; (ii) the By-Laws of Aon and ASC; (iii) the
resolutions of the Board of Directors of Aon and ASC authorizing the execution
and performance of this Agreement, any Seller Ancillary Agreement to which Aon
or ASC is a party and the transactions contemplated hereby and thereby; and (iv) incumbency
and signatures of the officers of Aon and ASC executing this Agreement and any
Seller Ancillary Agreement;

(b)           Stock certificates
representing all of the Shares, duly executed in blank or accompanied by duly
executed instruments of transfer;

(c)           The Transition
Services Agreement (Seller as Service Provider), duly executed by ASC, the
Transition Services Agreement (Buyer as Service Provider), duly executed by
Combined, and the Real Estate Agreements, duly executed by the applicable
parties thereto;

 17
 

 

 

(d)           Each of the
Facilitating Transactions Agreements required to be completed as of the
Closing, in each case duly executed by the applicable parties thereto;

(e)           Any consents,
waivers or approvals that may be obtained by Aon with respect to the consummation
of the transactions contemplated by this Agreement;

(f)            Evidence of the
termination and full satisfaction and discharge of any liabilities and
obligations under of each of the agreements giving rise to any indebtedness
identified in Items 1 and 5 of Schedule 5.27, and of the agreements
identified in Item (vii) of Schedule 5.7 with respect to the
Companies;

(g)           The certificates
contemplated by Sections 9.1 and 9.7, duly executed by a duly
authorized officer of Aon; and

(h)           The written
resignations of the directors of the Companies that are employees of Aon and
its Affiliates (other than the Companies).

Section 4.5            Determination
of the Net Worth Adjustment Amount. On or before
60 days following the Closing Date, Aon shall prepare and deliver to Buyer
a report (the “Net Worth Adjustment Report”) setting forth Aon’s
computation of the Closing Date Net Worth. Buyers shall reasonably assist Aon
in the preparation of the Net Worth Adjustment Report and shall provide Aon
reasonable access during normal business hours, upon reasonable advance notice
to the relevant personnel, books and records of the Companies for such purpose.

(a)           After delivery of
the Net Worth Adjustment Report to Buyer, Buyer and/or a firm of independent
public accountants designated by Buyer (“Buyer’s Accountant”) will be
entitled to reasonable access during normal business hours upon reasonable
advance notice to the relevant personnel, records and working papers of Aon and
its accountants to aid in their review of the Net Worth Adjustment Report. The
Net Worth Adjustment Report will be deemed to be accepted by and shall be
conclusive for purposes of determining the Net Worth Adjustment Amount except
to the extent, if any, that Buyer or Buyer’s Accountant shall have delivered
within 30 days after the date on which the Net Worth Adjustment Report is
delivered to Buyer, a written notice to Aon specifying in reasonable detail the
nature and extent of any objections it has to the Net Worth Adjustment Report
and its calculation of the Closing Date Net Worth (it being understood that (i) if
the Closing Date Net Worth calculated by each of Buyer and Aon exceeds the
Estimated Closing Date Net Worth by more than $25,000, Buyer shall promptly pay
or cause to be paid to Aon an amount equal to the smaller of such amounts less
the Estimated Closing Date Net Worth and (ii) if the Estimated Closing
Date Net Worth exceeds the Closing Date Net Worth calculated by each of Buyer
and Aon by more than $25,000, Aon shall promptly pay to Buyer (or its designee)
an amount equal to the Estimated Closing Date Net Worth less the greater of
such amounts). If a change proposed by Buyer is disputed by Aon, then Aon and
Buyer shall negotiate in good faith to resolve such dispute. If, after a period
of 20 days following the date on which Buyer gives Aon notice of any such
proposed change, any such proposed change still remains disputed, then Buyer
and Aon shall together choose an independent firm of public accountants of
nationally-recognized standing (the “Accounting Firm”) to resolve any
remaining disputes. The Accounting Firm shall act as an arbitrator to
determine, based solely on presentations by Buyer and Aon, and not by
independent review, only 

 18
 

 

 

those issues still in dispute with respect to the Net
Worth Adjustment Amount. The decision of the Accounting Firm shall be final and
binding and shall be in accordance with the provisions of this section. All of
the fees and expenses of the Accounting Firm shall be borne by Buyer and Aon in
the same proportion that the aggregate amount of the disputed items submitted
to the Accounting Firm that are unsuccessfully disputed by Buyer and Aon,
respectively (as finally determined by the Accounting Firm), bears to the total
amount of items submitted to the Accounting Firm.

(b)           Within 5 Business
Days following the applicable Net Worth Adjustment Report Finalization Date Aon
and Buyer shall pay the following amounts as applicable. Any Net Worth
Adjustment Amount shall be paid as follows:

(i)            if the Estimated Closing Date Net
Worth exceeds the Closing Date Net Worth, as calculated in this Section 4.5,
Aon shall pay to Buyer (or its designee) the difference thereof plus any
amounts paid by Buyer to Aon pursuant to clause (i) of the second
sentence of  Section 4.5(a),
less any amounts paid by Aon to Buyer pursuant to clause (ii) of the
second sentence of Section 4.5(a), by wire transfer of immediately
available funds to an account specified in writing to Aon by Buyer.

(ii)           if the Closing Date Net Worth, as
calculated in this Section 4.5, exceeds the Estimated Closing Date
Net Worth Buyer shall pay or cause to be paid to Aon the difference thereof
plus any amounts paid by Aon to Buyer pursuant to clause (ii) of the
second sentence of  Section 4.5(a),
less any amounts paid by Buyer to Aon pursuant to clause (i) of the
second sentence of Section 4.5(a) by wire transfer of
immediately available funds to an account or accounts specified in writing to
Buyer by Aon.

(iii)          Notwithstanding (i) and (ii) of
this paragraph, if the Estimated Closing Date Net Worth and the Closing Date
Net Worth, as calculated in this Section 4.5, are within $25,000 no
payment shall be due under this Section 4.5(b).

Any payment required to be made pursuant to this Section 4.5(b) shall
be made together with interest thereon from the Closing Date to the date of
payment at the rate of interest per annum equal to ninety (90) day LIBOR in
effect on the Closing Date as reported in The Wall Street Journal.

ARTICLE V

REPRESENTATIONS
AND WARRANTIES OF AON

As an inducement
to Buyer to enter into this Agreement and to consummate the transactions
contemplated hereby, Aon represents and warrants to Buyer as follows (it being
understood and agreed that no representation or warranty is being made with
respect to the Excluded Assets, Excluded Subsidiaries or Excluded Liabilities).

Section 5.1            Organization
of the Companies. Each of the Companies has been duly
formed and is validly existing and in good standing under the laws of the
jurisdiction of its incorporation or formation as set forth in Schedule 5.1.
Each of the Companies is duly qualified to transact business and is in good
standing in each jurisdiction where the character of 

 19
 

 

 

its properties owned or held under lease or the nature
of its activities makes such qualification necessary, except where the failure
to be so qualified or in good standing would not reasonably be expected to have
a Material Adverse Effect or would prevent a Company from operating in a
jurisdiction in which it is currently operating. Each of the Underwriting
Companies holds the licenses required by the insurance laws and regulations in
its domiciliary state to conduct the insurance businesses in which each
Underwriting Company is engaged and is in material compliance with all state
insurance laws and regulations applicable to it. Each of the Companies has the
requisite corporate power and authority to own or lease and operate its assets
and to carry on its business in the manner that it is now conducted. Except as
set forth in Schedule 5.1, Aon has made available to Buyer complete and
accurate copies of the Charter or by-laws or other governing documents (“Organizational
Documents”), the stock record book, the minute book and other corporate
records of each of the Companies. The book of account and other records of each
of the Companies made available to Buyer have been maintained in accordance
with sound business practices and applicable Requirements of Law and accounting
policies.

Section 5.2            Capital
Structure. Annex A sets forth the number of
shares of each class of capital stock of each of the Parent Entities that are
issued and outstanding. All of the outstanding shares of capital stock of each
of the Companies are validly issued, fully paid and nonassessable and free of
preemptive rights. All of the outstanding equity interests of the Parent
Entities are owned by a Seller, as reflected in Annex A (except as
otherwise set forth therein), and all of the outstanding equity interests of
each of the Subsidiaries (a) are owned, directly or indirectly, by a
Parent Entity as reflected in Annex B (except as otherwise set
forth therein), in each case free and clear of all Encumbrances, (b) have
been duly authorized and are validly issued, fully-paid and nonassessable and (c) were
not issued in violation of any preemptive or similar right. All of the
outstanding equity interests of each of the Sellers are owned, directly or
indirectly, by Aon. Except for this Agreement, there are no agreements,
arrangements, options, warrants, rights or commitments of any character
relating to the issuance, sale, purchase, exchange, transfer or redemption of
any shares of capital stock of, or other equity interests in any of the
Companies, and no such shares or other equity interests are reserved for
issuance. The execution, delivery and performance of this Agreement and the
Seller Ancillary Agreements by each of the Seller Group Members that are named
parties thereto have been duly authorized and approved by the board of
directors of the Seller Group Members that are named parties thereto and do not
require any further authorization or consent of such Person or its stockholders.
This Agreement has been duly authorized, executed and delivered by Aon. Any
dividend that has been or will, in connection with the transactions
contemplated by this Agreement, including the Facilitating Transactions, be
paid by any UK domiciled entity is or will be lawful under the UK Companies Act
1985.

Section 5.3            Subsidiaries
and Investments. Except for the Subsidiaries, none of the
Companies, directly or indirectly, owns or has the right to acquire any
outstanding voting securities or other equity interests in any Person, other
than Investment Assets.

Section 5.4            Authority; Conflicts.

(a)           Aon has full
corporate power and authority to execute, deliver and perform this Agreement. Each
Seller Group Member has full corporate power and authority to execute, deliver
and perform each of the Seller Ancillary Agreements to which it is a party. This

 20
 

 

 

Agreement and each of the Seller Ancillary Agreements
to which a Seller Group Member is a party constitute the valid and binding
obligations of each such party, enforceable in accordance with their respective
terms, in each case subject to bankruptcy, insolvency, reorganization,
moratorium, and similar laws relating to or affecting the enforcement of
creditors’ rights generally and to general equity principles.

(b)           Except as set forth
in Schedule 5.4, none of the execution and delivery by Aon of this
Agreement, the execution and delivery by any Seller Group Member of any Seller
Ancillary Agreement or the consummation by any Seller Group Member of any of
the transactions contemplated hereby or thereby, nor compliance by any Seller
Group Member with, or fulfillment by Aon of, the terms, conditions and
provisions hereof or thereof will:

(i)            assuming the receipt of all
necessary consents and approvals and the filing of all necessary documents as
described in Section 5.4(b)(iii), result in a violation or breach
of the terms, conditions or provisions of, or constitute a default, an event of
default or an event creating rights of acceleration, termination or
cancellation or a loss of rights under, or result in the creation or imposition
of any Encumbrance upon a Seller or any of the Shares or any of the assets of a
Seller or any of the Companies, under the Organizational Documents of a Seller
or any of the Companies,

(ii)           assuming the receipt of all necessary
consents and approvals and the filing of all necessary documents as described
in Section 5.4(b)(iii), result in a violation or breach of the
terms, conditions or provisions of, or constitute a default, an event of
default or an event creating rights of acceleration, termination or
cancellation or a loss of rights under, or result in the creation or imposition
of any Encumbrance upon a Seller or any of the Shares or any asset of a Seller
or any of the Companies, under (1) any of the Business Agreements, (2) any
Company Plan, (3) any note, instrument, mortgage, lease, franchise or
financial obligation or material agreement to which a Seller is a party or by
which a Seller is bound, (4) any Court Order to which a Seller or any of
the Companies is a party or by which a Seller or any of the Companies is bound,
(5) any Requirements of Law affecting a Seller or any of the Companies or (6) any
Governmental Permit, other than, in each case, any such violations, breaches,
defaults, rights, loss of rights or Encumbrances that would not, individually
or in the aggregate, reasonably be expected to have a Material Adverse Effect
or prevent the consummation of any of the transactions contemplated hereby, or

(iii)          require the approval, consent,
authorization or act of, or the making by a Seller or any of the Companies of
any declaration, filing or registration with, any Administrative Authority,
except (1) in connection, or in compliance, with the provisions of the HSR
Act, European Community Council Regulation (EC) No. 139/2004, or similar
competition Requirements of Law in foreign jurisdictions, (2) acquisition
of control statement filings and preacquisition statements required under
applicable state insurance holding company system laws and regulations and any
other insurance regulatory approvals, consents, filings or notices required by
any applicable insurance Requirements of Law, (3) such filings as may be
required in connection with the Taxes described in Section 8.1, and
(4) such approvals, consents, authorizations, declarations, filings or
registrations the failure of which to be obtained or made would not,
individually or in the 

 21
 

 

 

aggregate, reasonably be expected to have a Material
Adverse Effect or prevent the consummation of any of the transactions
contemplated hereby, or materially impair the operation of the Warranty
Business after the Closing.

Section 5.5            Financial Statements.

(a)           Schedule 5.5(a) contains
the audited balance sheet of the Warranty Business as of December 31, 2005
(the “Balance Sheet”) and the related audited statement of income and
cash flow of the Warranty Business for the year ended December 31, 2005
together with the report thereon of Ernst & Young LLP, independent
certified public accountants (the “Audited Financial Statements”) and an
unaudited balance sheet of the Warranty Business as of March 31, 2006 and
related unaudited statement of income of the Warranty Business for the three
months ended March 31, 2006 (the “Unaudited Financial Statements”
and, together with the Audited Financial Statements, the “Financial
Statements”). Except as set forth therein and except as set forth in Schedule 5.5(a),
the Audited Financial Statements have been prepared in conformity with GAAP
(applied on a consistent basis throughout the periods involved), and present
fairly in accordance with GAAP, the financial position and results of
operations and cash flow of the Warranty Business, as at the respective dates
of and for the periods referred to therein. Except as set forth in Schedule
5.5(a), the Unaudited Financial Statements have been prepared in accordance
with Aon’s historical practices for the Warranty Business, subject to normal
recurring year-end adjustments (the effect of which will not, individually or
in the aggregate, be materially adverse) and the absence of notes.

(b)           To the extent
required to be filed at least two Business Days prior to the date of this
Agreement, except as set forth in Schedule 5.5(b), Aon has made
available to Buyer the following statutory statements, in each case together
with the required exhibits, schedules and notes thereto and any required
affirmations and certifications filed therewith (collectively, the “Statutory
Statements”):  (i) the annual
statements of each of the Underwriting Companies and FFG Insurance Company, as
of December 31, 2005 and December 31, 2004, in each case as filed
with the insurance regulatory authority of its jurisdiction of domicile and (ii) the
quarterly statements of each of the Underwriting Companies and FFG for the
quarterly period ending March 31, 2006, as filed with the insurance
regulatory authority of its jurisdiction of domicile. Except as set forth
therein, all such Statutory Statements fairly present, in all material
respects, in accordance with SAP applied on a consistent basis throughout the
periods involved (except as required by SAP) the statutory financial position
of the Underwriting Companies and FFG Insurance Company, as of the dates
therein specified and the statutory results of operations and cash flow of such
companies, for the periods therein specified. All assets that are reflected as
admitted assets on the Statutory Statements, to the extent applicable, qualify
as admitted assets under the Requirements of Law of the applicable Company’s
domiciliary jurisdiction.

(c)           To the Knowledge of
Aon, the Companies maintain internal accounting controls which provide
reasonable assurance that (i) transactions are executed with management’s
authorization; (ii) transactions are recorded as necessary to permit
preparation of the financial and statutory statements of the Companies and to
maintain accountability for the Companies’ consolidated assets; (iii) access
to the Companies’ assets is permitted only in accordance with management’s
authorization; and (iv) the reporting of the Companies’ assets is compared
with existing assets at regular intervals.

 

 22

 

 

Section 5.6            Operations
Since Financial Statements Date  Except as set forth in Schedule 5.6,
from December 31, 2005 through the date hereof, there has been no Material
Adverse Effect. Except as set forth in Schedule 5.6, from the
Financial Statements Date through the date hereof, the Companies have conducted
their business in all material respects in the ordinary course. Without
limiting the generality of the foregoing, from the Financial Statements Date
through the date hereof, except as set forth in Schedule 5.6, none
of the Companies has taken any action which, if taken after the date hereof,
would be prohibited by Sections 7.4(b).

Section 5.7            Taxes.
Except as set forth in Schedule 5.7, (i) the Companies have
filed all material Tax Returns required to have been filed on or before the
date hereof; (ii) all material Taxes of the Companies have been timely
paid; (iii) none of the Companies has waived in writing any statute of
limitations in respect of Taxes of such Company which waiver is currently in
effect; (iv) no issues that have been raised by the relevant taxing
authority in connection with the examination of the Tax Returns referred to in
clause (i) are currently pending; (v) all deficiencies asserted
or assessments made as a result of any examination of the Tax Returns referred
to in clause (i) by a taxing authority have been paid in full; (vi) there
are no liens for Taxes upon the assets of the Companies except liens relating
to current Taxes not yet due; (vii) all Tax sharing arrangements and Tax
indemnity arrangements relating to the Companies (other than this Agreement)
will terminate prior to the Closing Date and none of the Companies will have
any liability thereunder on or after the Closing Date; (viii) all material
Taxes which the Companies are required by law to withhold or to collect for
payment have been duly withheld and collected and have been paid to the
appropriate governmental authority or have been accrued, reserved against and
entered on the books of the Companies; and (xi) Aon is not a foreign
person for purposes of Section 1445 of the Code. 

Section 5.8            Governmental
Permits. Except as set forth in Schedule 5.8,
the Companies own, hold or possess all material licenses, franchises, permits,
privileges, immunities, approvals and other authorizations from a
Administrative Authority that are necessary to entitle them to own or lease,
operate and use their assets and to carry on and conduct their business
substantially as conducted immediately prior to the date of this Agreement
(herein collectively called “Governmental Permits”). The Companies have
complied in all material respects with all terms and conditions of the
Governmental Permits.

Section 5.9            Real
Property. Except as set forth in Schedule 5.9,
none of the Companies owns any real property (the “Owned Real Property”).
Schedule 5.9 sets forth a brief description of each lease or
similar agreement under which any of the Companies is lessee of, or holds or
operates, any real property owned by any third Person (the “Leased Real
Property”) (and, together with the Owned Real Property, the “Real
Property”). All of the properties identified in Schedule 5.9
constitute all of the real property used by the Companies in the conduct of the
Warranty Business. The Companies have good and marketable title to the Owned
Real Property, not subject to any Encumbrances other than Permitted
Encumbrances. None of the Companies leases or subleases any real property to
any Person. Since January 1, 2004, neither Aon nor any of its subsidiaries
has received any written notice of any pending, threatened or contemplated
condemnation proceeding affecting the Real Property or any part thereof or any
sale or other disposition of the Real Property or any part thereof in lieu of
condemnation. To the Knowledge of Aon, there is no pending, threatened or
contemplated condemnation proceeding 

 23
 

 

 

affecting a material portion of the Real Property or
any sale or other disposition of a material portion of the Real Property in
lieu of condemnation.

Section 5.10         Personal
Property. Schedule 5.10 contains, as of the
date of this Agreement, a list of each lease or other agreement or right under
which any of the Companies is lessee of, or holds or operates, any machinery,
equipment, vehicle or other tangible personal property owned by a third Person,
except those which are terminable by such Company without penalty on
90 days’ or less notice or which provide for annual rental payments of
less than $250,000.

Section 5.11         Intellectual Property.

(a)           Schedule 5.11(a) contains
a list of all Copyrights, Patent Rights and Trademarks within the Company
Intellectual Property, which list separately identifies which Copyrights,
Patent Rights and Trademarks are owned and which are licensed by the Companies
which are, in each case, material to the conduct of their business, as
currently conducted.

(b)           Schedule 5.11(b) contains
a list of all Software within the Company Intellectual Property which is
material to the conduct of their business, as currently conducted, which list
separately identifies which Software is owned and which is licensed by the
Companies.

(c)           Except as disclosed
in Schedule 5.11(c), the Companies either:  (i) own the entire right, title and
interest in and to all material Company Intellectual Property, free and clear
of all Encumbrances; or (ii) have a valid contractual right or license to
use the same in the conduct of their business as currently conducted. For
purposes of this Section 5.11(c) (but not Schedule 5.11(c)),
the definition of “Software” in Section 1.1 shall be applied as if
it did not contain the proviso in clause (i) of such definition.

(d)           Except as disclosed
in Schedule 5.11(d):  (i) all
registrations for material Copyrights, Patent Rights and Trademarks identified
in Schedule 5.11(a) and owned by the Companies are valid and
in force, and all applications to register any material unregistered
Copyrights, Patent Rights and Trademarks so identified are pending and in good
standing, to the Knowledge of Aon, all without challenge of any kind; (ii) the
material Copyrights, Patent Rights and Trademarks (other than with respect to
pending applications) owned by the Companies are valid and in force; and (iii) the
Companies have the right to bring actions for infringement or unauthorized use
of the material Copyrights, Patent Rights, Trademarks and Software owned by the
Companies.

(e)           Except as disclosed
in Schedule 5.11(e), to the Knowledge of Aon, (i) no
infringement by any Company of any intellectual property rights of any other
Person has occurred or resulted in any way from its conduct of their business
since January 1, 2004, (ii) no written notice of a claim of any
infringement of any intellectual property rights of any other Person has been
received by any Company in respect of the conduct of their business since January 1,
2004, (iii) no owned Company Intellectual Property infringes or otherwise
conflicts with any intellectual property right of any Person and (iv) there
is currently no infringement by any Person of any owned Company Intellectual
Property.

 24
 

 

 

(f)            Except as disclosed
in Schedule 5.11(f), as of the date hereof no proceedings are
pending or, to the Knowledge of Aon, threatened against the Companies which
challenge the validity or ownership of any Company Intellectual Property that
is owned by the Companies.

(g)           The Companies have
taken reasonable steps to protect, maintain and safeguard the material Company
Intellectual Property.

Section 5.12         Title
to Property. Except for assets disposed of in the
ordinary course of business, the Companies have good and marketable title to
each item of equipment and other tangible personal property they purport to
own, including all of the tangible personal property reflected on the Balance
Sheet as owned by the Companies, free and clear of all Encumbrances, except for
Permitted Encumbrances.

Section 5.13         No
Violation, Litigation or Regulatory Action. Except as set
forth in Schedule 5.13:

(a)           to the Knowledge of
Aon, the Companies have complied in all material respects with all applicable
Requirements of Law and Court Orders;

(b)           as of the date
hereof, there is no lawsuit, suit, proceeding or investigation pending or, to
the Knowledge of Aon, threatened against the Companies for which (i) the
liability alleged by the plaintiff exceeds $50,000 or (ii) class action
status is sought by the plaintiff against the Companies;

(c)           as of the date
hereof, there is no action, suit or proceeding pending or, to the Knowledge of
Aon, threatened that questions the legality of the transactions contemplated by
this Agreement or any of the Seller Ancillary Agreements;

(d)           to the Knowledge of
Aon, no Administrative Authority has in the past five (5) years issued a
subpoena or order to show cause or taken a similar regulatory action or
initiated an examination other than a periodic market conduct or financial
examination regarding the Warranty Business; and

(e)           there is (i) no
consent decree, settlement agreement or stipulation with an Administrative
Authority in effect relating to the Warranty Business and (ii) no material
Court Order to which the Companies are subject.

Section 5.14         Contracts.
Except as set forth in Schedule 5.14, as of the date of this
Agreement, none of the Companies is a party to or bound by:

(a)           any contract for the
purchase by such Company of supplies or equipment which such Company reasonably
anticipates will involve the annual payment of more than $250,000 after the
date hereof;

(b)           any contract for the
sale by such Company of any services or products of the Companies’ business
which involved gross written premium and fees in fiscal 2005 of more 

 25
 

 

 

than $2,000,000 or which such Company reasonably
expects to involve gross written premium and fees in fiscal 2006 in excess of
$2,000,000;

(c)           any loan agreements,
promissory notes, indentures, bonds, security agreements, guarantees or obligations
for borrowed money or other instruments involving Indebtedness of, or held by,
any Company (excluding Investment Assets);

(d)           any partnership,
joint venture or other similar agreement or arrangement with any entity other
than one of the Companies, excluding agreements and arrangements with clients
in the ordinary course of business as described in Schedule 5.14;

(e)           any agreement
containing any covenant or provision prohibiting such Company from engaging in
any line or type of business (except for such agreements which shall not apply
to such Company upon Closing);

(f)            any agreement
providing for indemnification of any officer, director, employee or agent of
any Company (excluding Organizational Documents);

(g)           any agreement or
commitment in which a Company has granted exclusive rights relating to any
product or service offered by any Company, including in any territory;

(h)           any agreements for
the acquisition or sale, directly or indirectly (by merger or otherwise) of
assets (whether tangible or intangible) other than in the ordinary course of
business, or the securities of another Person other than Investment Assets;

(i)            any consulting
agreement material to the business of the Companies as currently conducted; and

(j)            any agreement for
capital expenditures in excess of $250,000.

Section 5.15         Status
of Contracts. Except as set forth in Schedule 5.15
or in any other Schedule hereto, each of the leases, contracts, licenses and
other agreements listed in Schedules 5.9, 5.10, 5.11(b),
5.13(e)(i), 5.14, 5.18, 5.25 and 5.27
(collectively, the “Business Agreements”) is in full force and effect,
except where the Business Agreement will expire in accordance with its terms
following the date hereof. The Companies are not, and, to the Knowledge of Aon,
are not alleged to be in, and to the Knowledge of Aon, no event has occurred,
and no circumstance or condition exists, that (with or without notice or lapse
of time) will or would reasonably be likely to result in a, material breach or
default under any of the Business Agreements. Aon has made available to Buyer a
true and correct copy of each written Business Agreement and descriptions of
any oral Business Agreements.

Section 5.16         ERISA.

(a)           Welfare Plans and
Pension Plans. Each Welfare Plan and Pension Plan in which employees of the
Companies employed at locations in the United States participate is listed in Schedule 5.16(a) (“Company
Plan”), and Aon has made available to Buyer a true and correct copy of each
such plan and, if applicable, a summary plan description used in connection
with such plan. To the Knowledge of Aon, with respect to each Welfare Plan and
Pension Plan 

 26
 

 

 

in which employees of the Companies participate, (i) such
plan has been maintained and operated in compliance in all material respects
with the applicable requirements of the Code, ERISA, the regulations issued
thereunder and any other Requirements of Law and (ii) as of the date
hereof, no litigation or asserted claims against the Companies exist with
respect to any such plan (other than claims for benefits in the normal course
of business). The Companies do not have, and have never had, any obligation to
contribute to any Multiemployer Plan or union-sponsored welfare fund. None of
the Companies and any of their ERISA Affiliates has incurred or would
reasonably be expected to incur any liability under or pursuant to
Title IV of ERISA with respect to its employees employed at locations in
the United States that would reasonably be expected to have a Material Adverse
Effect.

(b)           Other Material
Employee Benefits. Any material employee benefits for employees employed at
locations in the United States (other than those provided through the Welfare
Plans and Pension Plans listed in Schedule 5.16(a)) which are in
effect on the Closing Date and as to which any of the Companies has or may have
in the future any liability (other than regular wages or salary), such as any
bonus, incentive or annual profit sharing programs, any fringe benefits
described in Section 132 of the Code, any educational assistance plans under
Section 127 of the Code and any dependent care assistance plans under Section 129
of the Code, are listed in Schedule 5.16(b), and any written
description of any such employee benefit has been made available to Buyer by
Aon. Schedule 5.16(b) identifies each such material employee
benefit that is sponsored or maintained by the Companies.

(c)           Material
International Employee Benefit Plans. Each Welfare Plan providing
post-retirement medical benefits in which employees of the Companies employed
at locations outside of the United States participate, each funded Pension Plan
in which employees of the Companies employed at locations outside of the United
States participate and each other material Pension Plan (excluding Pension
Plans mandated by Requirements of Law) in which employees of the Companies
employed at locations outside of the United States participate is listed in
Schedule 5.16(c) (“Material International Plan”), and Aon has made
available to Buyer a true and correct copy of each such plan.

Section 5.17         Environmental
Matters. Except as set forth in Schedule 5.17,

(a)           none of the
Companies nor any Owned Real Property is subject to any order from or consent
or settlement agreement with any Person (including any Administrative
Authority) nor, to the Knowledge of Aon, is any investigation pending or
threatened, respecting (i) any Remedial Action at any Owned Real Property
or (ii) any claim of Losses and Expenses arising from the Release or
threatened Release of a Contaminant into the environment;

(b)           to the Knowledge of
Aon, no property leased by any of the Companies is currently the subject of any
investigation by, order from or consent or settlement agreement with any Person
(including any Administrative Authority) respecting any (i) Remedial
Action or (ii) any claim of Losses and Expenses arising from the Release
or threatened Release of a Contaminant into the environment;

 27
 

 

 

(c)           none of the
Companies is subject to any judicial or administrative proceeding, order,
judgment, decree or settlement alleging or addressing a material violation of
or material liability under any Environmental Law; and

(d)           since January 1,
2004, the Companies have not received any written notice or claim to the effect
that it is or may be liable to any Person, including any Administrative
Authority, as a result of the Release of a Contaminant;

(e)           the business of the
Companies are, and have been, conducted in material compliance with all
applicable Environmental Laws; and

(f)            to the Knowledge of
Aon, no Company has (i) created or assumed any material liabilities,
guaranties, obligations or indemnifications under any Environmental Law,
consent decree or contract with any third party, including any Administrative
Authority, related to any property currently or formerly owned, operated or
leased by the Companies; or (ii) any material liability under
Environmental Law for its non-compliance with any Environmental Law at the Real
Property or with respect to any investigation, monitoring, cleanup or
remediation related to any Contaminant.

Section 5.18         Employee Relations and Agreements.

(a)           Schedule 5.18
contains a true and complete listing of each of the employees of the Companies
whose compensation exceeded $250,000 during the twelve months ended December 31,
2005 or whose annual base compensation exceeds $150,000 as of the date hereof,
along with their titles and current annual base compensation. Except as set
forth in Schedule 5.18, no employee of any of the Companies whose
compensation exceeded $250,000 during the twelve months ended December 31,
2005 or whose annual base compensation is in excess of $150,000 has given
notice to any Company to cancel or otherwise terminate such person’s
relationship with the Companies as of the date hereof.

(b)           Except as set forth
in Schedule 5.18, the Companies are not a party to any labor
contract or collective bargaining agreement nor is any such contract or
agreement presently being negotiated, nor is there, nor has there been in the
last three (3) years, a proceeding before any Administrative Authority
concerning a union representation question respecting any of the employees of
the Companies.

(c)           Except as set forth
in Schedule 5.18, no union or similar organization represents
employees of the Companies and, to the Knowledge of Aon, no such organization
is attempting to organize such employees.

(d)           The Companies are in
compliance in all material respects with all applicable Requirements of Law
relating to the employment of labor, including all such applicable laws
relating to wages, hours, collective bargaining, employment discrimination,
civil rights, safety and health, workers’ compensation, pay equity and the
collection and payment of withholding and/or social security taxes and similar
Taxes, and, to the Knowledge of Aon, there is no pending or threatened inquiry
or audit from any Administrative Authority concerning any Company’s compliance
with any applicable Requirements of Law relating to the employment of labor. None
of the Companies has any obligation to pay overtime in respect of any employee 

 28
 

 

 

determined by such Person to be exempt from the
overtime requirements of the Fair Labor Standards Act or any similar state law.

(e)           Except as set forth
in Schedule 5.18, no director, officer or employee of any of the
Companies is a party to (i) any employment or other agreement with any of
the Companies that entitles him or her to compensation or other consideration
upon the acquisition by any Person of control of any of the Companies or (ii) any
other employment agreement that provides for annual base compensation in excess
of $150,000. As of the Closing, none of the Companies will have any continuing
liability or obligations under any of the Success Bonus Agreements.

Section 5.19         No
Undisclosed Liabilities. Except as set forth in Schedule 5.19,
or as reflected or reserved against in the Financial Statements or Statutory
Statements (including in each case the notes thereto), as of the Financial
Statements Date, the Warranty Business was not subject to any liability,
whether absolute, contingent, accrued, known, unknown, or otherwise, that would
be required to be included on a balance sheet prepared in accordance with GAAP
or SAP or disclosed in the notes thereto. Since the Financial Statements Date
through the date hereof, except as set forth in Schedule 5.19, the
Warranty Business has not incurred any material liability other than in the
ordinary course of business (including policyholder benefits or other insurance
policy liabilities), whether absolute, contingent, accrued or otherwise, except
for liabilities that would not be required to be included on a balance sheet
prepared in accordance with GAAP or SAP or disclosed in the notes thereto.

Section 5.20         Sufficiency
of Assets. Except as set forth in Schedule 5.20,
the assets and properties (including Company Intellectual Property) of the
Companies (together with the Transferred Business) constitute all of the assets
and properties reasonably necessary to operate the Warranty Business as
currently conducted other than (i) assets and properties (including Company
Intellectual Property) that, individually and in the aggregate, are not
material to such business and (ii) assets and properties (including
software) being provided pursuant to the Transition Services Agreement. The
equipment of the Companies are, in the aggregate, in good operating condition
and repair, and are adequate for the uses to which they are being put. Except
for the preceding sentence, nothing in this Section 5.20
constitutes a representation or warranty with respect to title or the condition
of any assets or properties (whether real or personal, tangible or intangible,
owned, leased or held under license), any and all representations or warranties
with respect to which are set forth in other sections of this Article V.

Section 5.21         Insurance.
Aon currently maintains policies covering the Companies in respect of fire and
extended coverage and casualty, liability and other forms of insurance
(excluding reinsurance) in such amounts and against such risks and losses, and
including such levels of self-insured retention, as are in its judgment prudent
and shall use reasonable efforts to keep such insurance or comparable insurance
in full force and effect through the Closing Date (the “Insurance Policies”).
Schedule 5.21 contains a complete and accurate list of all of the
Insurance Policies. The Insurance Policies are in full force and effect.

Section 5.22         Reserves. Except as indicated in Schedule 5.22,
the reserves of each of the Underwriting Companies as reported in such
companies’ December 31, 2005 

 29
 

 

 

Statutory Statements were determined in accordance
with generally recognized actuarial methods and standards, consistently
applied, and were fairly stated in accordance with sound actuarial principles
using prescribed accident period loss development triangles and such reserve
liabilities met the applicable requirements of the insurance laws and
regulations of each company’s respective jurisdiction of domicile.

Section 5.23         Regulatory
Filings. Except
as set forth in Schedule 5.23, Aon has
heretofore made available for inspection by Buyer (i) each annual
statement filed with or submitted to any state insurance regulatory authorities
by any of the Underwriting Companies required to make such filings since December 31,
2002 and (ii) any reports of examination of any of the Underwriting
Companies required to make such a report, issued by any state insurance
regulatory authority, in any case, since December 31, 2002.

Section 5.24         Ratings. As of the date hereof, (i) the
financial strength or claims-paying ability of VSC and RLIC are currently rated
A- and B++, respectively, by A.M. Best, and VSC is rated BBBpi by Standard &
Poor’s Corporation; and (ii) except as disclosed on Schedule 5.24,
no rating organization named above has communicated to Aon or any Company that
it has under surveillance or review its rating of the financial strength or
claims-paying ability of VSC or RLIC.

Section 5.25         Reinsurance. Schedule 5.25 identifies
all reinsurance agreements to which each of the Underwriting Companies is a
party with respect to the Warranty Business.

Section 5.26         No
Brokers. Except for the services of Morgan Stanley &
Co. Incorporated, none of the Companies nor any Person acting on their behalf
has paid or become obligated to pay any fee or commission to any broker, finder
or intermediary for or on account of the transactions contemplated by this
Agreement. Aon is solely responsible for any payment, fee or commission that
may be due to Morgan Stanley & Co. Incorporated in connection with the
transactions contemplated hereby.

Section 5.27         Transaction
with Affiliates. Except as set forth in Schedule 5.27
and for any Buyer Ancillary Agreement or Seller Ancillary Agreement, and
except for compensation and the reimbursement of expenses incurred in the
ordinary course of business to the employees of the Companies, (a) there
are no contracts or leases between any Company, on the one hand, and any Seller
Group Member (other than the Companies), or any executive officer or director
of the Companies or, to the Knowledge of Aon, any member of their respective
immediate families, on the other hand, and (b) to the Knowledge of Aon, no
executive officer or director of the Companies or any member of their
respective immediate families has any interest in any property (whether real,
personal, or mixed and whether tangible or intangible) used in or pertaining to
the Warranty Business as currently conducted.

Section 5.28         Certain Business Practices.

(a)           Within the last five
(5) years, none of the Companies or their respective directors, officers,
agents or employees acting for or on the Companies’ behalf in respect of the
Warranty Business, in violation of any Requirement of Law, has (i) made
any contribution, gift, bribe, rebate, payoff, influence payment, kickback, or
other payment to any Person, private or 

 30
 

 

 

public, regardless of form, whether in money,
property, or services (w) to obtain favorable treatment in securing
business, (x) to pay for favorable treatment for business secured, (y) to
obtain special concessions or for special concessions already obtained, for or
in respect of any Company or any Affiliate of a Company, (ii) received,
directly or indirectly, any rebates, payments, commissions, promotional
allowances or any other economic benefits, regardless of their nature or type, from
any customer, governmental employee or other person or entity with whom any
Company will do business directly or indirectly or (iii) established or
maintained any fund or asset that has not been recorded in the books and
records of the Companies.

(b)           No Company has
violated in any material respect, and the Companies are in compliance in all
material respects with, United States and international economic and trade
sanctions, including those administered by the Office of Foreign Assets Control
within the United States Department of the Treasury.

Section 5.29         Warranty
Business. The
Companies (other than VSC, LGI, LGH and CLAC) have not engaged in activities
that do not relate to or arise out of the Warranty Business.

Section 5.30         Actuarial
Reports. Aon has made available to Buyer a true and
complete copy of any actuarial reports prepared by independent actuaries
relating to the Warranty Business since December 31, 2002, and all
material attachments, addenda, supplements and modifications thereto.

Section 5.31         Clients.
Schedule 5.31 lists the top ten clients of the Warranty Business (based
upon gross written premium and fees in fiscal 2005). To the Knowledge of Aon,
neither Aon nor any of the Companies has received notice from any Person listed
in Schedule 5.31 that it intends to terminate or materially reduce its
writings with or through the Warranty Business.

ARTICLE
VI

REPRESENTATIONS
AND WARRANTIES OF BUYER

As an inducement
to Aon to enter into this Agreement and to consummate the transactions
contemplated hereby, Buyer hereby represents and warrants to Aon as follows:

Section 6.1            Organization
of Buyer. Buyer is a corporation duly organized, validly
existing and in good standing under the laws of the State of Delaware. Buyer
has the corporate power and authority to own or lease and operate its assets
and to carry on its businesses in the manner that they were conducted
immediately prior to the date of this Agreement.

Section 6.2            Authority of Buyer; Conflicts.

(a)           Buyer has the
corporate power and authority to execute, deliver and perform this Agreement
and each of the Buyer Ancillary Agreements. The execution, delivery and
performance of this Agreement and the Buyer Ancillary Agreements by Buyer have
been duly authorized and approved by Buyer’s board of directors and do not
require any further 

 31
 

 

 

authorization or consent of Buyer or its stockholders.
This Agreement has been duly authorized, executed and delivered by Buyer and
(assuming the valid authorization, execution and delivery of this Agreement by
Aon) is the legal, valid and binding agreement of Buyer enforceable in
accordance with its terms, and each of the Buyer Ancillary Agreements has been
duly authorized by Buyer and upon execution and delivery by Buyer will be
(assuming the valid authorization, execution and delivery by the other party or
parties thereto) a legal, valid and binding obligation of Buyer enforceable in
accordance with its terms, in each case subject to bankruptcy, insolvency,
reorganization, moratorium and similar laws relating to or affecting the
enforcement of creditors’ rights generally and to general equity principles.

(b)           Except as set forth
in Schedule 6.2, neither the execution and delivery of this
Agreement by Buyer or any of the Buyer Ancillary Agreements or the consummation
by Buyer of any of the transactions contemplated hereby or thereby nor
compliance by Buyer with or fulfillment of the terms, conditions and provisions
hereof or thereof will:

(i)            assuming the receipt of all
necessary consents and approvals and the filing of all necessary documents as
described in Section 6.2(b)(ii), result in a violation or breach of
the terms, conditions or provisions of, or constitute a default, an event of
default or an event creating rights of acceleration, termination or
cancellation or a loss of rights under (1) the Organizational Documents of
Buyer, (2) any note, instrument, mortgage, lease, franchise, financial
obligation or material agreement to which Buyer is a party or any of its
properties is subject or by which Buyer is bound, (3) any Court Order to
which Buyer is a party or by which it is bound or (4) any Requirements of
Law affecting Buyer, other than, in the case of clauses (2), (3) and (4) above,
any such violations, breaches, defaults, rights or loss of rights that would
not materially impair the ability of Buyer to perform its obligations hereunder
or prevent the consummation of any of the transactions contemplated hereby, or

(ii)           require the approval, consent,
authorization or act of, or the making by Buyer of any declaration, filing or
registration with, any Administrative Authority, except for (1) in
connection, or in compliance, with the provisions of the HSR Act, European
Community Council Regulation (EC) No. 139/2004, or similar competition
Requirements of Law in foreign jurisdictions, (2) acquisition of control
statement filings and preacquisition statements required under applicable state
insurance holding company system laws and regulations and any other insurance
regulatory approvals, consents, filings or notices required by any applicable
insurance Requirements of Law, (3) such filings as may be required in
connection with the Taxes described in Section 8.1, and (4) such
approvals, consents, authorizations, declarations, filings or registrations the
failure of which to be obtained or made would not materially impair the ability
of Buyer to perform its obligations hereunder or prevent the consummation of
any of the transactions contemplated hereby.

Section 6.3            No
Violation, Litigation or Regulatory Action. Except as set
forth in Schedule 6.3:

(i)            as of the date hereof, there are no
lawsuits, claims, suits, proceedings or investigations pending or, to the
Knowledge of Buyer, threatened against Buyer or its 

 32
 

 

 

subsidiaries which are reasonably expected to
materially impair the ability of Buyer to perform its obligations hereunder or
prevent the consummation of any of the transactions contemplated hereby; and

(ii)           as of the date hereof, there is no
material action, suit or proceeding pending or, to the Knowledge of Buyer, threatened
against Buyer that questions the legality of the transactions contemplated by
this Agreement or any of the Buyer Ancillary Agreements.

Section 6.4            Investment Intent.

(a)           Buyer is acquiring
the Shares as an investment for its own account and not with a view to the
distribution thereof.

(b)           Buyer acknowledges
that it has been furnished with such documents, materials and information as
Buyer deems necessary or appropriate for evaluating the purchase of the Shares.
Buyer confirms that it has made such further investigation of the Companies as
was deemed appropriate to evaluate the merits and risks of this purchase. Buyer
further acknowledges that it has had the opportunity to ask questions of, and
receive answers from, the directors and officers of the Companies, Sellers and
Persons acting on the Companies’ and Sellers’ behalf, concerning the terms and
conditions of the purchase of the Shares. Notwithstanding anything to the
contrary contained herein, Buyer’s rights with respect to indemnification,
payment of Losses and Expenses or other remedy based on representations,
warranties, covenants and obligations in this Agreement, or any certificate
delivered pursuant to this Agreement, will not, subject to Section 11.6(c),
be affected by Buyer’s investigation of the Companies or by its receipt of
information as described in this Section 6.4(b).

Section 6.5            Financial
Ability. Buyer has available to it the financial ability
to consummate the transactions contemplated by this Agreement.

Section 6.6            No
Brokers. Neither Buyer nor any Person acting on its
behalf has paid or become obligated to pay any fee or commission to any broker,
finder or intermediary for or on account of the transactions contemplated by
this Agreement.

ARTICLE
VII

ACTION
PRIOR TO THE CLOSING DATE

The respective
parties hereto covenant and agree to take the following actions between the
date hereof and the Closing Date:

Section 7.1            Access
to Information. Aon shall cause the Companies to afford
to the officers, employees and authorized representatives of Buyer (including
independent public accountants and attorneys) and Buyer’s financing sources
(and their authorized representatives) reasonable access during normal business
hours, upon reasonable advance notice, to the offices, properties, employees,
representatives (including accountants, attorneys and other professionals), and
business and financial records (including computer files, retrieval programs
and similar documentation and accountants’ work papers) of the Companies and
shall furnish to Buyer or its 

 33
 

 

 

authorized representatives such additional information
(including copies of such information) concerning the Companies as shall be
reasonably requested; provided, however, that (i) the Companies
shall not be required to violate any Requirements of Law or Court Order, or
legal or contractual obligation of confidentiality to any third party to which
the Companies are subject or to waive any attorney-client privilege which they
may possess in discharging their obligations pursuant to this Section 7.1;
and (ii) Buyer shall not, without the prior written consent of Aon, which
shall not be unreasonably withheld or delayed, contact or communicate with any
vendor, customer, or other business partner of the Companies with respect to or
in connection with the transactions contemplated hereby. Buyer agrees that such
investigation shall be conducted in such a manner as not to interfere
unreasonably with the operations of the Companies. In the event that Aon shall
have determined that it may not disclose any information requested by Buyer
under this Section 7.1 as a
result of a legal or contractual obligation of confidentiality to a third party
to which any of the Companies are subject, if Buyer so requests it shall, and
shall cause each of the applicable Companies to, use its commercially
reasonable efforts to obtain the consent or waiver of such third party to the
disclosure requested by Buyer hereunder as promptly as practicable following
Buyer’s request. Notwithstanding the foregoing, the obligations of Aon pursuant
to this Section 7.1 shall be subject to the right of Aon to
determine, in its discretion, the appropriate timing of the disclosure of
information they reasonably deem to be highly sensitive or privileged
information. The parties shall act at all times in accordance with the terms
and provisions of the Confidentiality Agreement.

Section 7.2            Notification.
Each of Buyer and Aon shall promptly notify the other of any action, suit or
proceeding that shall be instituted or threatened against such party to
restrain, prohibit or otherwise challenge the legality of any transaction
contemplated by this Agreement. Each party hereto shall promptly notify the
other of any lawsuit, claim, proceeding or investigation that may be
threatened, brought, asserted or commenced against Sellers, the Companies or
Buyer, as the case may be, that would have been listed in Schedule 5.13
or Schedule 6.3, as the case may be, if such lawsuit, claim,
proceeding or investigation had arisen prior to the date hereof. Each party shall
promptly notify the other party as promptly as practicable of (a) any
notice or other communication from any Person alleging that the consent of such
Person (or another Person) is or may be required in connection with the
transactions contemplated by this Agreement, (b) any notice or other
communication from any Administrative Authority in connection with the
transactions contemplated by this Agreement, (c) any notice or other
communication from any Person whose consent, approval or waiver is being sought
under Section 7.3(a), and (d) any event, condition, fact or
circumstance that would make the timely satisfaction of any of the conditions
set forth in Article IX and X impossible or unlikely.

Section 7.3            Consents of Third Parties; Governmental Approvals.

(a)           Aon and Buyer will
act diligently and reasonably in attempting to secure, before the Closing Date,
the consent, approval or waiver, in form and substance reasonably satisfactory
to the other party, required to be obtained from any Person (other than a
Administrative Authority) to consummate the transactions contemplated by this
Agreement; provided, however, that such action shall not include
any requirement of the Companies, Aon or any of their respective Affiliates to
expend money, commence or participate in any litigation or offer or grant any
accommodation (financial or otherwise) to any third party unless, in the case 

 34
 

 

 

of any proposed requirement of the Companies to expend
money, Buyer shall have requested that such an expenditure be made, in which
case Aon shall cause the Companies to make such payment, and if such payment is
made prior to Closing and (i) the Closing occurs, the amount of such
payment shall be considered cash of the Companies for purposes of determining
Closing Date Net Worth and (ii) if this Agreement is terminated prior to
Closing, Buyer shall reimburse the Companies for the full amount of the
expenditure promptly following the termination of this Agreement.

(b)           From and after the
date hereof through the Closing Date, Buyer shall act diligently and
reasonably, and Aon shall act reasonably and diligently to cooperate with
Buyer, in attempting to secure any insurance regulatory consents and approvals
of any Administrative Authority required to be obtained in order to permit the
consummation of the transactions contemplated by this Agreement (including
approvals and consents from state departments of insurance and the UK Financial
Services Authority (or similar foreign departments)) having or asserting
jurisdiction over any of the Underwriting Companies and Automotive Insurance
Agency, Inc., the transfers of the FFG Warranty Business and the CICA
Warranty Business and the other Facilitating Transactions, and the transfer of
ownership of any other entity being conveyed pursuant to this Agreement (it
being understood that (i) with respect to the sale of the Shares to Buyer
at the Closing, Buyer will have primary responsibility for preparing all such
necessary filings and that Aon will cooperate fully in providing any necessary
information and signatures for such filings and (ii) with respect to the
Facilitating Transactions, Aon will have the primary responsibility for
preparing all such necessary filings and Buyer will cooperate fully in
providing any necessary information and signatures for such filings), or to
otherwise satisfy the conditions set forth in Section 9.3 and Section 10.3
with respect to insurance regulatory requirements. Prior to filing any
materials or documents with any Administrative Authority, each of Buyer and Aon
shall afford the other a reasonable opportunity (no less than two (2) Business
Days) to review and comment on such materials or documents.

(c)           Aon and Buyer shall
use their commercially reasonable efforts to take, or cause to be taken, all
actions necessary to cause the conditions contained in Articles IX
and X to be satisfied in a timely manner and to consummate the
transactions contemplated hereby. Except to the extent otherwise provided in Section 7.3(b) with
respect to insurance regulatory requirements, Aon and Buyer shall (i) make
all filings and give all notices required to be made and given by such party or
its subsidiaries with any Administrative Authority in connection with the
transactions contemplated hereby and submit promptly any additional information
requested in connection with such filings and notices and (ii) use their
commercially reasonable efforts to obtain each consent required to be obtained
pursuant to any applicable Requirements of Law, including antitrust laws, by
such party in connection with the transactions contemplated by this Agreement.

(d)           Without limiting the
foregoing provisions of this Section 7.3, Buyer and Aon shall use
their commercially reasonable efforts to file not more than 10 days after
the date hereof with the Federal Trade Commission and the Antitrust Division of
the Department of Justice the notifications and other information required to
be filed under the HSR Act with respect to the transactions contemplated hereby.
Each party warrants that all such filings by it will be, as of the date filed,
true and accurate in all material respects and in material compliance with the
requirements of the HSR Act. Each of Buyer and Aon agrees to file any
additional 

 35
 

 

information requested by such agencies under the HSR
Act, to make available to the other such information as each of them may
reasonably request relative to its business, assets and property as may be
required of each of them to file such additional information and to use their
commercially reasonable efforts to take all other actions necessary to cause
the expiration or termination of the applicable waiting periods under the HSR
Act as soon as practicable.

(e)           In furtherance and
not in limitation of the foregoing, the parties shall use their commercially
reasonable efforts to resolve such objections, if any, as may be asserted by
any Administrative Authority with respect to the transactions contemplated by
this Agreement under any Requirements of Law. Except as may be prohibited by
any Administrative Authority or by applicable Requirements of Law, Aon and
Buyer will consult and cooperate with one another, and will consider in good
faith the views of one another, in connection with any analysis, appearance,
presentation, memorandum, brief, argument, opinion or proposal made or
submitted in connection with any proceeding under or relating to the HSR Act or
any other antitrust Requirement of Law. Except as may be prohibited by any
Administrative Authority or by applicable Requirement of Law, in connection
with any proceeding under or relating to the HSR Act or any other foreign,
federal or state antitrust or fair trade Requirement of Law or any other
similar legal proceeding, each of Aon and Buyer will permit authorized
representatives of the other to be present at each meeting or conference
relating to any such legal proceeding and to have access to and be consulted in
connection with any document, opinion or proposal made or submitted to any
Administrative Authority in connection with any such legal proceeding.

(f)            Notwithstanding
anything to the contrary contained in this Agreement, Buyer shall not have any
obligation under this Agreement:  (i) to
dispose, transfer or hold separate, or cause any of its subsidiaries or
Affiliates to dispose, transfer or hold separate any material assets or
operations, or to commit or to cause any of the Companies (in respect of the
Warranty Business) to dispose of any material assets; (ii) to discontinue
or cause any of its subsidiaries to discontinue offering any product or
service, or to commit to cause any of the Companies (in respect of the Warranty
Business) to discontinue offering any product or service; or (iii) to make
or cause any of its subsidiaries to make any commitment (to any Administrative
Authority or otherwise) regarding its future operations or the future
operations of any of the Companies, except, in the case of clause (ii) or
(iii), for any commitment that would not, individually or in the aggregate,
materially adversely affect the ability of Buyer to conduct the Warranty
Business.

Section 7.4            Operations Prior to the Closing Date.

(a)           Aon shall (and shall
cause the other Sellers to) use all reasonable efforts to cause the Companies
(in respect of the Warranty Business) to operate and carry on their business in
the ordinary course and substantially as operated immediately prior to the date
of this Agreement, except as specifically contemplated by this Agreement. Consistent
with the foregoing, Aon shall (and shall cause the other Sellers to) cause the
Companies (in respect of the Warranty Business) to use their reasonable efforts
consistent with good business practice to preserve the goodwill of the
suppliers, contractors, licensors, employees, customers, distributors and
others having business relations with the Companies.

 

 36

 

 

(b)           Without limiting Section 7.4(a),
except as set forth in Schedule 7.4, except as specifically
contemplated by this Agreement or except with the express written approval of
Buyer (which Buyer agrees shall not, other than with respect to clauses (v)(A) and
(xviii) below, be unreasonably withheld or delayed), Aon shall (and shall cause
the other Sellers to) cause the Companies (in respect of the Warranty Business)
not to:

(i)            make any material change in their
business or their operations, except such changes as may be required to comply
with any applicable Requirements of Law;

(ii)           make any capital expenditure or enter
into any contract or commitment therefor which is in excess of $250,000 unless
such expenditure is provided for in the capital expenditure budget for 2006
made available to Buyer prior to the date hereof, and Aon shall have notified
Buyer in writing of the making of any such capital expenditure (or contract or
commitment) in excess of $250,000 substantially concurrently therewith;

(iii)          purchase or sell any real property;

(iv)          sell, lease (as lessor), transfer or
otherwise dispose of (including any transfers to any of its Affiliates), or
mortgage or pledge, or impose or suffer to be imposed any Encumbrance on, any
of their assets, other than inventory and personal property sold or otherwise
disposed of in the ordinary course of business consistent with past practices
and other than Permitted Encumbrances;

(v)           acquire (A) by merger or
consolidation with, or by the purchase of all or a substantial portion of the
assets or any stock of, or by any other manner, any business or any
corporation, partnership, joint venture, limited liability company, association
or other business organization or division thereof (other than Investment
Assets in the ordinary course) or (B) any assets that are material, in the
aggregate, to the Companies, taken as a whole, except in the case of (B) for
purchases of assets in the ordinary course of business consistent with past
practice (in transactions not otherwise subject to subparagraph (A) of
this Section 7.4(a)(v));

(vi)          cancel any Indebtedness owed to or
claims held by them (including the settlement of any claims or litigation)
other than in the ordinary course of business or in accordance with Section 7.5;

(vii)         create, incur or assume, or agree to
create, incur or assume, any Indebtedness other than any Indebtedness that is
subject to Section 7.5 or which constitutes the deferred purchase
price of capital expenditures permitted by Section 7.4(b)(ii) above;

(viii)        declare, set aside or pay any dividends
on, or make any other distributions in respect of, any of the their outstanding
equity interests (except dividends and distributions by one Company solely to
one or more Companies and dividends or distributions of cash and/or cash
equivalents and/or Investment Assets made prior to Closing);

 37
 

 

 

(ix)           split, combine or reclassify any of
their equity interests or issue or authorize the issuance of any other
securities in respect of, in lieu of or in substitution for their equity
interests;

(x)            issue, deliver, sell, grant, pledge
or otherwise dispose of or encumber, or redeem, purchase or otherwise acquire
or grant negotiation rights with respect to, any of their equity interests, or
any securities convertible into or exchangeable for, or any rights, warrants or
options to acquire, any such equity interests;

(xi)           hire any new employee with expected
total compensation during any fiscal year in excess of $250,000 or with an
annual base salary in excess of $150,000, promote any employee to be an officer
or member of senior management, or engage any consultant or independent
contractor for a period exceeding 30 days unless such engagement may be
cancelled without penalty upon not more than 30 days’ notice or the
expected total annual compensation will not exceed $250,000;

(xii)          increase in any manner the
compensation of, or pay any bonus to, any employee, officer or director, except
for increases in the ordinary course of business consistent with past
compensation practices (which increases may not, in the case of any employee
whose compensation exceeded $250,000 during the twelve months ended December 31,
2005 or whose annual base salary exceeds $150,000 as of the date hereof, in any
calendar year exceed the increase in the CPI on a specified date in such
calendar year over the CPI on the same date in the prior calendar year) and
increases required under any existing Business Agreement;

(xiii)         adopt or enter into any collective
bargaining agreement or other labor union contract applicable to their
employees;

(xiv)        adopt, modify or increase the benefits
to any employees of the Companies under, or accelerate or settle the payment of
benefits to any employees of the Companies under, any Company Plan, except, (A) in
each case, as required under Requirements of Law or by existing contractual
arrangements, (B) as a result of a modification or increase in benefits
under an existing Company Plan that is generally applicable to Aon employees or
(C) as a result of the adoption of a Company Plan that is generally
applicable to Aon employees from which the employees of the Companies may not
excluded under applicable Requirements of Law;

(xv)         make any material change outside of the
ordinary course of business to (A) any pricing, investment, accounting,
financial reporting, credit, reserving, hedging, underwriting, claims
administration or allowance practice or policy, (B) any method of
calculating any reserve for accounting, financial reporting or Tax purposes, (C) the
fiscal year or (D) any existing credit, billing, collection and payment
policies, except in each case as required by changes in GAAP, SAP or applicable
Requirements of Law;

(xvi)        make or rescind any Tax election, settle
or compromise any material Tax liability, amend any Tax return, file any
Tax-related ruling request, change its Tax accounting, or file any Tax Return
not consistent with historical practice;

 38
 

 

 

(xvii)       make any change in their Organizational
Documents;

(xviii)      create any new subsidiary or enter into
any joint venture or partnership or other similar agreement or arrangement
(excluding agreements or arrangements with clients in the ordinary course of
business as described in Schedule 5.14);

(xix)         modify, amend, cancel, terminate or
waive any material rights under any Business Agreement, except in the ordinary
course of business;

(xx)          settle or compromise any claim against
the Companies (whether or not commenced prior to the date of this Agreement) by
any Administrative Authority or other Person that could reasonably be expected to
materially impair the Warranty Business after the Closing; or

(xxi)         authorize any of, or commit or agree,
in writing or otherwise, to take any of, the foregoing actions or any action
which would materially impair or prevent the satisfaction of any conditions in Article VII
hereof.

Section 7.5            Termination
of Certain Intercompany Indebtedness. At or prior to the
Closing, Aon shall (and shall cause the other Sellers to) contribute to the
capital of the Parent Entities all intercompany indebtedness and non-trade
accounts (other than ordinary course trade payables and receivables and federal
income Tax payables) owed by the Companies to Sellers or any of their
Affiliates as of the Closing Date, and Aon shall (and shall cause the other
Sellers to) cause the Parent Entities to assume all intercompany indebtedness
and non-trade accounts (other than ordinary course trade payables and
receivables) owed by Sellers or any of their Affiliates to the Companies; provided,
however, that any intercompany indebtedness and non-trade accounts
involving the Underwriting Companies shall be settled in cash to the extent
required by applicable Requirements of Law.

Section 7.6            Facilitating
Transactions. Aon shall cause each of the Facilitating
Transactions required to occur prior to the Closing to occur pursuant to the
Facilitating Transaction Agreements at the time specified in Schedule 1.1(E),
and Buyer shall act reasonably and diligently to cooperate with Aon to cause
such transactions to occur. From and after the Closing, Aon and Buyer shall
cause each of the Facilitating Transactions required to occur subsequent to the
Closing to occur pursuant to the Facilitating Transaction Agreements at the
time specified in Schedule 1.1(E). From time to time, Buyer shall, upon
Aon’s request and at the cost of Aon, (i) deliver the books and records
relating primarily to the Excluded Assets, the Excluded Liabilities and the
Excluded Subsidiaries in the possession of Buyer or its subsidiaries and (ii) do,
execute, acknowledge and deliver, or cause to be done, executed, acknowledged
and delivered, all deeds, assignments, transfers and conveyances as may be
reasonably required for the better assigning, transferring, granting, conveying
and confirming to the Sellers or their Affiliates, or for aiding and assisting
in collecting and reducing to possession of the Sellers or their Affiliates,
any of the Excluded Assets, the Excluded Liabilities and the Excluded
Subsidiaries. From and after the Closing, pursuant to Article XI (and
subject to the limitations thereof), Aon agrees to indemnify and hold harmless
each Buyer Group Member from and against, and reimburse each Buyer Group Member
for, Losses and Expenses incurred by such Buyer Group Member to the extent
caused by the transfer of rights, properties, assets and 

 39
 

 

 

employees
out of the Companies pursuant to the Facilitating Transaction Agreements (other
than Losses and Expenses in respect of Taxes, which are the subject of Section 8.1);
provided, however, that in no event shall a Buyer Group Member be
entitled to recover for any Losses or Expenses relating to (x) any
liabilities or obligations that Buyer or its Affiliates (including the
Companies after the Closing) are expressly required to pay or perform pursuant
to the terms of any Facilitating Transaction Agreement or (y) the impact
of any accounting principles, rules or regulations arising out of the
Facilitating Transactions.

Section 7.7            Transferred
Business. Following the transfer of the Transferred
Business as part of the Facilitating Transactions, Buyer shall (following the
Closing) cause VSC, RLIC and LGI, respectively, to assume, pay, perform,
discharge and be responsible for all of the liabilities and obligations related
to the Transferred Business, except to the extent otherwise expressly excused
from payment or performance with respect to any portion of the Transferred
Business in the applicable Facilitating Transaction Agreements. These
liabilities and obligations of VSC, RLIC and LGI shall include all liabilities
and obligations arising from or relating to any breach by any reinsurer with
respect to policies or other risks constituting Warranty Business or any
failure by such a reinsurer to perform any of its covenants or obligations in
any agreement or undertaking with respect to such policies or risks. From time
to time, Aon shall upon Buyer’s request and at the cost of Buyer (i) deliver
the books and records relating primarily to the Transferred Business in Sellers’
or their Affiliates’ possession to Buyer and (ii) do, execute, acknowledge
and deliver, or cause to be done, executed, acknowledged and delivered, all
deeds, assignments, transfers and conveyances as may be reasonably required for
the better assigning, transferring, granting, conveying and confirming to Buyer
or its Affiliates the Transferred Business.

Section 7.8            Exclusivity.
Aon agrees that, during the period commencing on the date hereof through the
earlier to occur of the Closing or the termination of this Agreement, that it
will not, and it will use commercially reasonable efforts to cause each of its
respective Affiliates and its and their directors, officers and representatives
not to, directly or indirectly, (a) knowingly initiate, solicit,
encourage, discuss, negotiate or respond affirmatively to any inquiries,
proposals or offers (whether initiated by them or otherwise) with respect to (i) any
transaction, however structured, resulting in or relating to the acquisition of
any equity interests of the Companies or any interest therein by a third party;
or (ii) the acquisition of all or a material portion of the assets and
properties of the Companies or of the Warranty Business (each, a “Potential
Transaction”) from any Person or provide information to any Person in
connection with a Potential Transaction or (b) enter into any contract,
agreement or arrangement with any Person other than Buyer or its designee or
assignee concerning or relating to a Potential Transaction. Aon shall terminate
any existing discussions with respect to a Potential Transaction and shall not
amend or terminate, or waive any of its rights under, any existing
confidentiality agreement. Notwithstanding the foregoing, nothing contained in
this Section 7.8 shall in any manner apply to or be construed to
limit Aon regarding any actions involving Excluded Assets, Excluded
Subsidiaries or Excluded Liabilities.

Section 7.9            Success
Bonus Payments. Aon shall be responsible for, and shall
pay, all Success Bonus Payments.

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Section 7.10         Financial and Statutory Statements.

(a)           From and after the
date hereof until the earlier to occur of the Closing or the termination of
this Agreement, Aon shall deliver to Buyer copies of any annual or quarterly
statements of each of the Underwriting Companies and FFG Insurance Company
filed with the applicable insurance regulatory authority of its jurisdiction of
domicile, promptly, but in no event later than three (3) business days
after, such statements are filed with the applicable regulatory authority. All
such statements, to the Knowledge of Aon, shall fairly present, in all material
respects, in accordance with SAP applied on a consistent basis throughout the
periods involved (except as required by SAP) the statutory financial position
of the Underwriting Companies and FFG Insurance Company, as of the dates
therein specified and the statutory results of operations and cash flow of such
companies, for the periods therein specified and all assets that are reflected
as admitted assets on such statements, to the extent applicable, qualify as
admitted assets under the Requirements of Law of the applicable Company’s
domiciliary jurisdiction.

(b)           From an after the
date hereof until the earlier to occur of the Closing or the termination of
this Agreement, Aon shall, (i) within 45 days after the expiration of each
calendar quarter, deliver to Buyer unaudited statements of income of the
Companies (after giving effect to the Facilitating Transactions) for the three
month period then ended prepared on a basis consistent with the income
statement for the three month period ended March 31, 2006 attached as Schedule
7.10(b)(i) hereto;  and (ii) within
60 days after the expiration of each calendar quarter, deliver to Buyer (A) an
unaudited balance sheet of the Companies (after giving effect to the
Facilitating Transactions) as of the last day of such calendar quarter prepared
on a basis consistent with the balance sheet attached as Schedule
7.10(b)(ii)(A) hereto and (B) a reconciliation of the balance
sheet delivered to Buyer under Section 7.10(b)(ii)(A) to the
then current balances as of the last day of the applicable calendar quarter
determined in manner consistent with the Audited Financial Statements.

Section 7.11         P&C
Business. From and after September 30, 2006 until the
earlier to occur of the Closing or the termination of this Agreement, Aon shall
cause the Companies and FFG not to enter into or issue any treaties, policies,
binders, slips or contracts of insurance with respect to any business other
than the Warranty Business (including, for the avoidance of doubt, the P&C
Business) (other than (i) workers compensation business in the ordinary
course of business consistent with past practice and (ii) non-warranty
business in Portugal) other than renewals that are required by applicable
Requirements of Law or contractual commitments existing as of the date hereof.

Section 7.12         Actuarial
Review. Prior to the Closing, (i) Aon shall engage
Milliman U.S.A. or another nationally recognized actuary reasonably acceptable
to Buyer (the “Actuary”), to separately calculate the loss and loss
expense reserves and unearned premium reserves with respect to any
outstanding  risk underwritten by VSC
(and not otherwise reinsured) under any treaties, policies, binders, slips or
contracts of insurance or reinsurance written by VSC with respect to any
business other than the Warranty Business (including, for the avoidance of
doubt, the P&C Business) as of June 30, 2006 (the “P&C
Underwriting”) and (ii) such actuary shall separately determine the
loss and loss expense reserves and unearned premium reserves for the P&C
Underwriting as of such date. The applicable Facilitating Transaction Agreement
with respect to the P&C Underwriting shall 
separately reflect loss and loss expense reserves and the unearned
premium reserves with respect to the P&C Underwriting as each being an
amount 

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equal
to the midpoint of such reserves calculated by the Actuary, as updated by Aon
to the Closing Date.

Section 7.13         Additional
Capital. Prior to the Closing, Aon may contribute capital
to one or more of the Companies and, to the extent permitted by Requirements of
Law, may transfer capital among the Companies. For purposes of satisfying a
condition set forth in Section 9.8(a), (b) or (c),
at its option, Aon may contribute capital from outside of the Companies to VSC,
RLIC and/or LGI. Any such capital contribution by Aon described in the
preceding sentence shall not be included in the calculation of Closing Date Net
Worth. For the avoidance of doubt, if the capital contribution is due to an
increased or new liability (other than an Excluded Liability), both the
increased or new liability and any capital contribution up to such liability
shall be included in the calculation of Closing Date Net Worth, it being
understood that any capital contribution due to an increased or new Excluded
Liability shall be transferred to FFG pursuant to a Facilitating Transaction
Agreement.

ARTICLE VIII

ADDITIONAL AGREEMENTS

Section 8.1            Tax Matters.

(a)           Liability for
Taxes.

(i)            Aon shall be liable for and pay, and
pursuant to Article XI (and subject to the limitations thereof)
agrees to indemnify and hold harmless each Buyer Group Member against, any and
all Taxes (A) imposed on any of the Companies pursuant to Treasury
Regulation Section 1.1502-6 or similar provision of state or local
law as a result of any Company having been a member of the Aon consolidated
group, or (B) imposed on any Company, or for which any Company may
otherwise be liable, for any taxable year or period that ends on or before the
Closing Date and, with respect to any Straddle Period, the portion of such
Straddle Period ending on and including the Closing Date; provided, however,
that Aon shall not be liable for or pay, and shall not indemnify or hold
harmless any Buyer Group Member from and against (I) any Taxes shown as a
liability or reserve on the Net Worth Adjustment Report and taken into account
in the calculation of the Closing Date Net Worth (“Reserved Taxes”), (II) any
Taxes that result from any actual or deemed election under Section 338 of
the Code or any similar provisions of state, local or foreign law as a result
of the purchase of the Shares or the deemed purchase of shares of any of the
Subsidiaries or that result from Buyer, any Affiliate of Buyer, or any of the
Companies engaging in any activity or transaction that would cause the transactions
contemplated by this Agreement to be treated as a purchase or sale of assets of
any of the Companies for federal, state or local Tax purposes, and (III) any
Taxes imposed on any of the Companies or for which any of the Companies may
otherwise be liable as a result of transactions occurring on the Closing Date
that are properly allocable (based on, among other relevant factors, factors
set forth in Treasury Regulation Section 1.1502-76(b)(1)(ii)(B)) to
the portion of the Closing Date after the Closing (the Taxes described in this
proviso being referred to as “Excluded Taxes”) and, 

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provided, further
that, without limiting the foregoing, Aon shall be liable for all Facilitating
Transaction Taxes. Aon shall be entitled to any refund of (or credit for) Taxes
allocable to any taxable year or period that ends on or before the Closing Date
and, with respect to any Straddle Period, the portion of such Straddle Period
ending on and including the Closing Date, except to the extent that such refund
was shown as an asset on the Net Worth Adjustment Report and taken into account
in the calculation of the Closing Date Net Worth.

(ii)           Buyer shall be liable for and pay,
and pursuant to Article XI (and subject to the limitations thereof)
shall indemnify and hold harmless each Seller Group Member from and against, (A) any
and all Taxes imposed on the Companies or for which the Companies may otherwise
be liable for any taxable year or period that begins after the Closing Date
and, with respect to any Straddle Period, the portion of such Straddle Period
beginning after the Closing Date and (B) Excluded Taxes (in the case of (A) or
(B) other than Facilitating Transaction Taxes). Except as otherwise
provided herein, Buyer shall be entitled to any refund of (or credit for) Taxes
described in clauses (A) and (B). Buyer shall pay Seller (in the case
of any Reserved Taxes that are paid by Seller on behalf of the consolidated
group of corporations, combined group of corporations, affiliated group of
corporations or unitary group of corporations (or other similar group) of which
the Parent Entities and their relevant Subsidiaries are members (“Reserved
Consolidated Taxes”)) or the relevant taxing authority (in the case of all
other Reserved Taxes) all Reserved Taxes in accordance with past practice (but,
in the case of Reserved Consolidated Taxes, in no event later than 5 Business
Days following the Net Worth Adjustment Report Finalization Date). For the
avoidance of doubt, Buyer shall pay Seller the full amount accrued for Reserved
Consolidated Taxes (regardless of any actual Tax liability).

(iii)          For purposes of Sections 8.1(a)(i) and
(a)(ii), whenever it is necessary to determine the liability for Taxes
of the Companies for a Straddle Period, the determination of such Taxes for the
portion of the Straddle Period ending on and including, and the portion of the
Straddle Period beginning after, the Closing Date shall be determined by
assuming that the Straddle Period consisted of two taxable years or periods,
one which ended at the close of the Closing Date and the other which began at
the beginning of the day following the Closing Date, and items of income, gain,
deduction, loss or credit of the Companies for the Straddle Period shall be
allocated between such two taxable years or periods on a “closing of the books
basis” by assuming that the books of the Companies were closed at the close of
the Closing Date; provided, however, that (I) transactions
occurring on the Closing Date that are properly allocable (based on, among
other relevant factors, factors set forth in Treasury Regulation Section 1.1502-76(b)(1)(ii)(B))
to the portion of the Closing Date after the Closing shall be allocated to the
taxable year or period that is deemed to begin at the beginning of the day
following the Closing Date, (II) exemptions, allowances or deductions that
are calculated on an annual basis, such as the deduction for depreciation,
shall be apportioned between such two taxable years or periods on a daily basis
and (III) all Facilitating Transactions shall be allocated to the period
before the Closing Date.

(iv)          If, as a result of any action, suit,
investigation, audit, claim, assessment or amended Tax Return, there is any
change after the Closing Date in an item of income,

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gain, loss, deduction, credit or amount of
Tax that results in an increase in a Tax liability for which Aon would
otherwise be liable pursuant to Section 8.1(a)(i), and such change
results in or will result in a decrease in the Tax liability of the Companies,
Buyer or any Affiliate or successor thereof for any taxable year or period
beginning after the Closing Date or for the portion of any Straddle Period
beginning after the Closing Date, Aon shall not be liable pursuant to such Section 8.1(a)(i) with
respect to such increase to the extent of the present value (using a discount
rate equal to the then “Federal Mid-Term Rate,” as that term is defined in Section 1274(d) of
the Code) of such decrease (and, to the extent such increase in Tax liability
is paid to a taxing authority by Aon or any Affiliate thereof, Buyer shall pay
Aon an amount equal to the present value of such decrease).

(v)           Notwithstanding anything herein to
the contrary, Buyer and Aon shall each be responsible for and indemnify the
other for 50% of any real property transfer or gains Tax, sales Tax, use Tax,
stamp Tax, stock transfer Tax, or other similar Tax imposed on the transactions
contemplated by this Agreement.

(b)           Tax Returns.

(i)            Aon shall timely file or cause to be
timely filed when due (taking into account all extensions properly obtained)
all Tax Returns required to be filed with respect to the Companies for taxable
years or periods ending on or prior to the Closing Date, and Aon shall remit,
or cause to be remitted, any Taxes due in respect of such Tax Returns, and
Buyer shall timely file or cause to be timely filed when due (taking into
account all extensions properly obtained) all other Tax Returns that are
required to be filed by or with respect to the Companies, and Buyer shall
remit, or cause to be remitted, any Taxes due in respect of such Tax Returns. With
respect to Tax Returns to be filed by Buyer pursuant to the preceding sentence
that relate to taxable years or periods ending on or before the Closing Date or
that relate to any Straddle Period (I) such Tax Returns shall be filed in
a manner consistent with past practice and no position shall be taken, election
made or method adopted that is inconsistent with positions taken, elections
made or methods used in prior periods in filing such Tax Returns (including any
such position, election or method which would have the effect of accelerating
income to periods for which Aon is liable or deferring deductions to periods
for which Buyer is liable) and (II) such Tax Returns shall be submitted to
Aon not later than 30 days prior to the due date for filing such Tax
Returns (or, if such due date is within 45 days following the Closing
Date, as promptly as practicable following the Closing Date) for review and
approval by Aon, which approval may not be unreasonably withheld, but may in
all cases be withheld if such Tax Returns were not prepared in accordance with
clause (I) of this sentence. Aon or Buyer shall pay the other party
for the Taxes for which Aon or Buyer, respectively, is liable pursuant to Section 8.1(a) but
which are payable with any Tax Return to be filed by the other party pursuant
to this Section 8.1(b) upon the written request of the party
entitled to payment, setting forth in detail the computation of the amount owed
by Aon or Buyer, as the case may be, but in no event earlier than 10 Business
Days prior to the due date for paying such Taxes, without regard to the
aggregate indemnification limitations set forth in Section 11.1(a) and
Section 11.2(a).

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(ii)           None of Buyer or any Affiliate of
Buyer shall (or shall cause or permit the Companies to) amend, refile or
otherwise modify (or grant an extension of any statute of limitation with
respect to) any Tax Return relating in whole or in part to the Companies with
respect to any taxable year or period ending on or before the Closing Date (or
with respect to any Straddle Period) without the prior written consent of Aon,
which consent may be withheld in the sole discretion of Aon.

(iii)          Buyer shall promptly cause each
Company to prepare and provide to Aon a package of Tax information materials,
including schedules and work papers (the “Tax Package”), required by Aon
to enable Aon to prepare and file all Tax Returns required to be prepared and
filed by it pursuant to Section 8.1(b)(i). The Tax Package shall be
completed in accordance with past practice, including past practice as to
providing such information and as to the method of computation of separate
taxable income or other relevant measure of income of the Companies. Buyer
shall cause the Tax Package to be delivered to Aon within 75 days after
the Closing Date.

(c)           Contest
Provisions.

(i)            Buyer shall promptly notify Aon in
writing upon receipt by Buyer, any of its Affiliates or the Companies of notice
of any pending or threatened federal, state, local or foreign Tax audits,
examinations or assessments relating to taxable periods ending on or before the
Closing Date or which might otherwise affect the Tax liabilities for which Aon
may be liable pursuant to this Section 8.1.

(ii)           Aon shall have the sole right to
represent the Companies’ interests in any Tax audit or administrative or court
proceeding to the extent that such audit or proceeding relates to taxable
periods ending on or before the Closing Date or otherwise relating to Taxes for
which Aon may be liable pursuant to this Section 8.1, and to employ
counsel of their choice at their expense, provided, however, that Aon shall not settle or otherwise agree
to resolve any such audit or proceeding if such settlement or other resolution
would have a material adverse impact on Buyer or any of the Companies without
consent of Buyer, which consent shall not unreasonably be withheld or delayed. In
the case of a Straddle Period, Aon shall be entitled to participate at their
expense in any Tax audit or administrative or court proceeding relating (in
whole or in part) to Taxes attributable to the portion of such Straddle Period
ending on and including the Closing Date and, with the written consent of
Buyer, and at Aon’s sole expense, may assume the entire control of such audit
or proceeding. None of Buyer, any of its Affiliates or the Companies may settle
any Tax claim for any Taxes for which Aon may be liable pursuant to Section 8.1(a),
without the prior written consent of Aon, which consent may not be unreasonably
withheld or delayed.

(d)           Assistance and
Cooperation. After the Closing Date, Aon and Buyer shall (and shall cause
their respective Affiliates to):

(i)            assist the other parties in
preparing any Tax Returns which such other party is responsible for preparing
and filing in accordance with Section 8.1(b);

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(ii)           cooperate fully in preparing for any
audits of, or disputes with taxing authorities regarding, any Tax Returns of
the Companies;

(iii)          make available to the others and to
any taxing authority as reasonably requested all information, records, and
documents relating to Taxes of the Companies;

(iv)          provide timely notice to the others in
writing of any pending or threatened Tax audits or assessments of the Companies
for taxable periods for which the other may have a liability under this Section 8.1;

(v)           furnish the others with copies of all
correspondence received from any taxing authority in connection with any Tax
audit or information request with respect to any such taxable period;

(vi)          timely sign and deliver such
certificates or forms as may be necessary or appropriate to establish an
exemption from (or otherwise reduce), or file Tax Returns or other reports with
respect to, Taxes described in Section 8.1(a)(v) (relating to
sales, transfer and similar Taxes); and

(vii)         timely provide to the others powers of
attorney or similar authorizations necessary to carry out the purposes of this Section 8.1.

Section 8.2            Employee Matters.

(a)           Continued
Employment. As of the Closing Date, Buyer agrees to, or to cause an
Affiliate of Buyer to, continue to employ as a successor employer all of the
employees of the Companies (including all such employees who are on any
authorized vacation, leave or other authorized absence), after giving effect to
transferring the Transferred Business, the P&C Business and the LGI
Excluded Business (collectively, the “Transferred Employees”). For a
period of at least one year following the Closing Date, each Transferred
Employee shall be entitled to receive while in the employment of Buyer or its
Affiliates at least the same salary, wages and cash bonus opportunities as were
provided to such employee by the Companies, immediately prior to the Closing
Date. Notwithstanding any provision herein to the contrary, neither Buyer nor
any of its Affiliates (including the Companies) shall be obligated to continue
to employ any Transferred Employee for any specific period of time following
the Closing Date, subject to applicable law.

(b)           Buyer Benefit
Plans. For a period of one year commencing on the Closing Date, Buyer shall
provide the Transferred Employees with employee benefits, which, when taken as
a whole, will provide such employees with a level of benefits that is
substantially comparable to those benefits provided under the Company Plans in
effect immediately prior to the Closing Date (without giving effect to any
increase made pursuant to Section 7.4(b)(xiv)(B)) or to any defined
benefit plan or any plan, program or arrangement relating to the equity of any
Buyer Group Member (or any other Person).

(c)           Company Plans.
Except as set forth on Schedule 8.2(c) or as otherwise
specifically provided in this Agreement (collectively, the “Assumed Plan
Liabilities”), neither Buyer nor any of its Affiliates shall assume any
obligations under or liabilities with respect to, 

 46
 

 

 

and it shall
not receive any right or interest in the assets of, any Company Plans. Buyer
shall assume (or cause the Companies to assume) the Assumed Plan Liabilities. Effective
as of the Closing Date, except as otherwise specifically provided in this
Agreement, all Transferred Employees will cease any participation in, and any
benefit accrual under, all Company Plans. If the Closing occurs, Aon shall
indemnify and hold harmless each Buyer Group Member for any Losses or Expenses
arising from or in connection with any Parent Entity or Affiliate thereof being
an ERISA Affiliate of Aon on or prior to the Closing Date.

(d)           Layoff Benefits.
Notwithstanding any of the foregoing to the contrary, following the Closing
Date, Buyer agrees to, or to cause its Affiliates to, provide severance
benefits to any Transferred Employee who is laid off during the one-year period
beginning on the Closing Date in an amount that is at least equal to the layoff
benefits that would have been paid to such employee pursuant to the terms of
the Company Plans as in effect immediately prior to the Closing Date, to be
calculated, however, on the basis of the employee’s compensation and service at
the time of the layoff.

(e)           Individual
Employment Contracts. Except as set forth on Schedule 8.2(e),
effective as of the Closing Date, Buyer shall assume, or cause an Affiliate to
continue to be obligated under or assume the Companies’ obligations (after
giving effect to the transfer of the Transferred Business) under all individual
employment, termination, retention, severance or other similar contracts or
agreements set forth in Schedule 5.18 (other than Item 4 thereof).

(f)            Welfare Benefits.
Except as otherwise expressly provided herein, Aon or one of its Affiliates
shall retain responsibility under the Company Benefit Plans that are Welfare
Plans in which the Transferred Employees participate with respect to all
amounts that are payable by reason of, or in connection with, any and all
welfare benefit claims made by the Transferred Employees and their eligible
dependents but only to the extent the claims were incurred prior to the Closing
Date. However, Buyer shall reimburse Aon or one of its Affiliates promptly for
any payments of welfare benefits made by Aon or one of its Affiliates to
eligible Transferred Employees and their eligible dependents on or after the
Closing Date with respect to claims incurred prior to the Closing Date upon
receipt of periodic billings for such amounts, but only to the extent that such
claims were reflected in the calculation of Closing Date Net Worth. Buyer and
its Affiliates shall be responsible for all other welfare benefit claims made
by the Transferred Employees and their eligible dependents to the extent such
claims were incurred on or after the Closing Date.

(g)           Credit for
Service. To the extent that service is relevant for purposes of eligibility
and vesting (and, in order to calculate the amount of any vacation, sick days,
severance and similar benefits, but not for purposes of defined benefit pension
benefit accruals) under any retirement plan, employee benefit plan, program or
arrangement established or maintained by Buyer or any of its Affiliates for the
benefit of the Transferred Employees, following the Closing Date such plan,
program or arrangement shall credit such Transferred Employees for service
earned on and prior to the Closing Date with the Companies, any of their
Affiliates or any of their respective predecessors in addition to service
earned with Buyer or any of Buyer’s Affiliates after the Closing Date.

 

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(h)           Preexisting
Conditions; Coordination. Following the Closing Date, Buyer shall, or shall
cause its Affiliates to, waive limitations on eligibility, enrollment and
benefits relating to any preexisting medical conditions of the Transferred
Employees and their eligible dependents. Following the Closing Date, Buyer
shall recognize, or shall cause its Affiliates to also recognize, for purposes
of annual deductible and out of pocket limits under its health and dental plans
(the “Buyer Plans”), deductible and out of pocket expenses paid by
Transferred Employees and their respective dependents under health and dental
Company Benefit Plans in the calendar year in which the Closing Date occurs to
the extent the Transferred Employees participate in any such Buyer Plans in
such same calendar year.

(i)            Vacations. Buyer
shall, or shall cause its Affiliates to, continue a vacation program for the
benefit of the Transferred Employees through at least the end of the calendar
year in which the Closing occurs that is at least as favorable as the vacation
program of the Companies in effect immediately prior to the Closing Date. Buyer
shall, or shall cause its Affiliates to, recognize and provide all accrued but
unused vacation of each Transferred Employee as of the Closing Date. Neither
Aon nor its Affiliates shall have any obligation or liability to pay or provide
any vacation payments claimed on or after the Closing Date, it being understood
that all accrued and unused vacation of each Transferred Employee shall be
fully accrued with respect to all periods through the Closing Date in the
calculation of Closing Date Net Worth in accordance with GAAP.

(j)            Bonuses. Buyer
shall, or shall cause its Affiliates to, assume the bonus programs for
Transferred Employees in existence as of the Closing Date and shall pay to the
Transferred Employees the bonuses they earn under such programs with respect to
the full bonus determination period that includes the Closing Date, it being
understood that bonus amounts shall be fully accrued with respect to all
periods through the Closing Date (and including the Closing) in the calculation
of Closing Date Net Worth in accordance with GAAP.

(k)           Healthcare
Spending Account Program. Buyer shall, or shall cause its Affiliates to,
establish or maintain a Healthcare Spending Account program for each
Transferred Employee who, in the portion of the calendar year on or prior to
the Closing Date, contributed to the Healthcare Spending Account program of Aon.
The beginning balance as of the Closing Date in the Buyer’s Healthcare Spending
Account program shall be the unused portion of the balance in Aon’s Healthcare
Spending Account program (the “Healthcare Spending Account Opening Balance”).
To the extent that Buyer (or an Affiliate of Buyer) has previously established
and maintains a Health Reimbursement Account, any unused amount in Aon’s Health
Reimbursement Account (on behalf of the Transferred Employees) shall be
credited to the Buyer’s Health Reimbursement Account to the extent that it is
greater than the amount a similarly situated employee of Buyer may be entitled.
Aon shall, promptly following Buyer’s written request, reimburse Buyer for any
portion of the Healthcare Spending Account funded by Buyer pursuant to this Section 8.2(k) which
is used by Transferred Employees and not released to Buyer following the end of
the calendar year in which the Closing occurs.

(l)            COBRA. Following
the Closing Date, Buyer shall, or shall cause an Affiliate to, provide
continuation health care coverage to all Transferred Employees and their
qualified beneficiaries, regardless of when a “qualifying event” occurs, in
accordance with the continuation health care coverage requirements of Section 4980B
of the Code and Title I, 

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Subtitle B, Part 6 of ERISA (“COBRA”) with respect to claims incurred at any time on or
after the Closing Date. Aon or one of its Affiliates shall provide COBRA
coverage for former employees of the Companies who do not become Transferred
Employees.

(m)          WARN. Buyer
shall be responsible for all liabilities or obligations under the Worker
Adjustment and Retraining Notification Act and similar state and local rules,
statutes and ordinances resulting from the Closing or from Buyer’s or the
Companies’ actions following the Closing.

Section 8.3            Securities
Law Legends. Buyer understands that the Shares have not
been, and upon transfer to the Buyer at Closing will not be, registered under
the Securities Act or the securities laws of any state or other Administrative
Authority and that the Shares may be sold or disposed of only in one or more
transactions registered under the Securities Act, applicable state securities
laws or the laws of any other applicable Administrative Authority or as to
which an exemption from the registration requirements of the Securities Act,
applicable state securities laws or the laws of any other applicable
Administrative Authority is available. Buyer acknowledges and agrees that it
does not have any rights hereunder to require Aon to cause the registration of
any of the Shares. Buyer understands that the certificates representing the
Shares delivered to it by Aon at Closing will contain a legend similar to the
following and other legends necessary or appropriate under applicable state
securities laws or the laws of any other Administrative Authority:

THE SHARES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED
UNDER THE SECURITIES ACT OF 1933 (THE “ACT”) OR ANY STATE SECURITIES LAWS AND MAY NOT
BE SOLD, TRANSFERRED OR OTHERWISE DISPOSED OF UNLESS A REGISTRATION STATEMENT
UNDER THE ACT AND ANY APPLICABLE STATE SECURITIES LAWS WITH RESPECT TO SUCH
SHARES IS EFFECTIVE OR UNLESS THE COMPANY IS IN RECEIPT OF AN OPINION OF
COUNSEL SATISFACTORY TO IT TO THE EFFECT THAT SUCH SHARES MAY BE SOLD
WITHOUT REGISTRATION UNDER THE ACT AND SUCH LAWS.

Section 8.4            Insurance;
Risk of Loss. Aon shall cause the Companies to keep
insurance policies currently maintained by the Companies covering their
business, assets and current or former employees, as the case may be, or
suitable replacements therefor, in full force and effect through the Closing
Date. From and after the Closing Date, Buyer shall be solely responsible for
all insurance coverage and related risk of loss based on claims pending as of
the Closing Date and claims made after the Closing Date, without regard to the
when the event giving rise to any such claim occurred, with respect to the
Companies and their business, assets and current or former employees. To the
extent that after the Closing any party hereto requires any information
regarding claim data, payroll or other information in order to make filing with
insurance carriers or self insurance regulators from another party hereto, such
party will promptly supply such information.

Section 8.5            Release of Guaranties  Buyer shall use its commercially
reasonable efforts to cause Aon and its Affiliates to be fully released, as of
the Closing Date or as promptly as practicable after the Closing Date, in
respect of all obligations under any guaranties, 

 49
 

 

 

letters
of credit, letters of comfort, bid bonds or performance or surety bonds or cash
or other collateral obtained or given by Aon or its Affiliates relating to any
parcel of Leased Real Property or any other contractual commitment of the
Companies (which shall include for the purpose of this Section 8.5,
FFG and Combined with respect to the Transferred Business) (collectively, the “Guaranties”).
If, at or prior to the Closing, after using its commercially reasonable efforts
to do so, Buyer is unable to effect such a substitution and release with respect
to any Guaranty, from and after the Closing Buyer and the Companies shall
indemnify each Seller Group Member against any and all Loss or Expense arising
from such Guaranty. Without limiting the foregoing, after the Closing Date,
Buyer will not, and will not permit any of its Affiliates to, renew, or extend
any contract, lease or other obligation that is known by Buyer or any of the
Companies to be covered by a Guaranty without obtaining the release thereof. Any
cash or other collateral posted by Aon or its Affiliates in respect of any
Guaranty shall be delivered to Aon promptly following the release of Aon
therefrom.

Section 8.6            Noncompetition and Nonsolicitation

(a)           For a period of ten (10) years
after the Closing (the “Restricted Period”), Aon shall not, and shall
cause its Affiliates not to, engage, anywhere in the world, directly or
indirectly, in any Restricted Business or, directly or indirectly, own an
interest in, manage, operate or control any Person that engages, anywhere in
the world, in a Restricted Business; provided, however, that, for
the purposes of this Section 8.6, (x) ownership of securities
having no more than five percent of the outstanding voting power of any Person
which are listed on any national securities exchange or national quotation
system and (y) ownership of not more than 25% of any private equity fund
or alternative investment vehicle in which Aon or its Affiliates is a passive
investor shall not be deemed to be a violation of this Section 8.6;
provided, however, that in the case of (x) or (y) Aon
and its Affiliates do not participate in any way in the operation or management
of the Restricted Business.

(b)           Notwithstanding the
provisions of this Section 8.6, nothing in this Section 8.6
shall be deemed to preclude, prohibit or restrict Aon or any of its Affiliates
from (i) engaging in any Exempt Business Activities; (ii) acquiring
any Person, and following such acquisition, actively engaging in any Restricted
Business through a subsidiary, division, group, franchise or segment of such
Person that is engaged in such Restricted Business at the time of the
acquisition of such Person (an “Acquired Business”), so long as (x) for
the most recent fiscal year ending prior to the date of such purchase, the
consolidated gross revenues of such Person derived from Restricted Businesses
were less than 50% of the total consolidated gross revenues of such Person and (y) following
such acquisition, the Acquired Business engages in the Restricted Business only
with Persons that were clients of the Acquired Business immediately prior to
the acquisition and provides each such existing client only the programs
provided to such existing client immediately prior to the acquisition in the
geographic area in which such program was provided to such existing client
immediately prior to the acquisition; (iii) engaging in a Change of
Control or, if the acquiring Person has a subsidiary, division, group,
franchise or segment that is engaged in a Restricted Business at the time of
the Change of Control, thereafter engaging in the Restricted Business; or (iv) providing
any Warranty TPA Services to any Person in a market where Aon has an
established Warranty TPA capability as of the date of this Agreement following
compliance with Section 8.6(e); provided, however,
that in the case of clause (ii), (A) the Acquired Business shall be
conducted without the use of the “Aon” tradename and (B) if 

 50
 

 

 

such Acquired Business’s consolidated fee income from
such Restricted Businesses in the calendar year prior to the acquisition or in
any calendar year thereafter is in excess of $10 million (the “Divestiture Condition”), Aon or its Affiliates will dispose
of (or enter into and consummate a definitive agreement which requires, as soon
as practicable but not later than six (6) months after the date of such
agreement, the disposal of) such Restricted Business within two years of the
satisfaction of the Divestiture Condition and, with respect to any such
disposition of any Restricted Business, Buyer shall have a 30-day right
of first offer to purchase such Restricted Business. If any such Acquired
Business’s consolidated fee income from such Restricted Business in the
calendar year prior to the acquisition or in any calendar year thereafter is in
excess of $5 million but less than $10 million, Buyer shall have a one-time
(except as provided in the immediately preceding sentence) 30-day right
to make an offer to purchase such Restricted Business from Aon and/or its
Affiliates, as applicable. For the avoidance of doubt, for purposes of this Section 8.6, the consolidated gross revenues of any
Restricted Business shall include forwarded premiums.

(c)           As a separate and
independent covenant, for a period of two years following the Closing, Aon
shall not, and shall cause its Affiliates not to, in any way, directly or
indirectly, hire any Designated AWG Employee or solicit any Transferred
Employees to leave the employ of any of the Companies or violate the terms of
their contracts, or any employment arrangements, with any of the Companies; provided,
however, that Aon or any of its Affiliates may solicit any Transferred
Employees who are discharged by the Companies, and, provided  further,
that nothing in this Section 8.6(c) shall prohibit Aon or any
of its Affiliates from employing any Transferred Employees who are not
Designated AWG Employees as a result of a general solicitation to the public or
general advertising, or the solicitation of any individual whose employment
with the Companies has been terminated for at least twelve months.

(d)           As a separate and
independent covenant, Buyer agrees that, for a period of two years following
the Closing, Buyer shall not, and shall cause its Affiliates (including the
Companies) not to, in any way, directly or indirectly, solicit any employees of
Aon or its Affiliates to leave the employ of Aon or its Affiliates, as
applicable, or violate the terms of their contracts, or any employment
arrangements, with Aon or its Affiliates, as applicable; provided, however,
that Buyer or any of its Affiliates may solicit any such employees who are
discharged by Aon or its Affiliates, as applicable, and, provided  further,
that nothing in this Section 8.6(d) shall prohibit Buyer or
any of its Affiliates from employing any such employee as a result of a general
solicitation to the public or general advertising, or the solicitation of any
individual whose employment with Aon and its Affiliates has been terminated for
at least twelve months.

(e)           If, during the
period between the date hereof and the Closing or during the Restricted Period,
Aon or any its Affiliates receives a bona fide offer from a third party
relating to the potential provision of Warranty TPA Services by Aon or its
Affiliates to such third party that Aon or its Affiliates desires to accept,
Aon shall, prior to accepting such offer, first deliver a written notice to
Buyer setting forth the material terms of the third party offer; provided,
that Aon may elect not to include the name of the offering third party in such
notice to the extent it reasonably determines that doing so would violate any
duty of confidentiality owing to such third party. Buyer will have fifteen (15)
days from its receipt of such offer (a “Buyer Consideration Period”) to
notify Aon of its interest in providing the Warranty TPA Services to such third
party on the same terms and conditions as are set forth in the third party
offer, and if Buyer provides 

 51
 

 

 

such notice, Aon will, if applicable, promptly inform
Buyer of the third party offeror’s identity, and will cooperate with Buyer in
good faith in coordinating Buyer’s negotiations with respect to such offer with
the applicable third party. If Buyer fails to notify Aon in writing of its
interest in providing such  Warranty TPA
Services prior to the expiration of the Buyer Consideration Period or fails to
enter into a definitive agreement during the sixty (60) day period immediately
following the expiration of the Buyer Consideration Period, then Aon or its
Affiliates will be permitted, during the sixty (60) day period thereafter, to
accept the applicable third party offer on the terms and conditions set forth
therein. For the avoidance of doubt, if Buyer shall have elected to exercise
its right with respect to any Services under this Section 8.6(e),
is willing to execute the definitive agreement relating to the third party
offer on the terms and conditions set forth therein that Aon is prepared to
accept and the applicable third party shall have refused to permit Buyer to
accept its offer in lieu of Aon or its Affiliates, Aon and its Affiliates shall
not be permitted to provide such services to such third party.

Section 8.7            Use of Names.

(a)           Aon is not conveying
ownership rights or granting Buyer or its Affiliates (including the Companies
after the Closing) a license to use any of the tradenames, service marks or
trademarks of Aon or any Affiliate of Aon (other than the trademarks and
service marks included in the Intellectual Property identified in Schedule 5.11(a))
(collectively, the “Retained Names and Marks”) and, after the Closing,
Buyer and its Affiliates (including the Companies after the Closing) shall not
use in any manner the names or marks of Aon or any Affiliate of Aon or any word
that is confusingly similar to such names or marks, except as provided in this Section 8.7.
In the event Buyer or any Affiliate of Buyer (including the Companies after the
Closing) violates any of its obligations under this Section 8.7,
Aon and its Affiliates may proceed against it in law or in equity for such
damages or other relief as a court may deem appropriate. Buyer acknowledges
that a violation of this Section 8.7 may cause Aon and its
Affiliates irreparable harm which may not be adequately compensated for by
money damages.

(b)           At the Closing,
Buyer shall execute such amended organizational documents with respect to any
of the Companies containing the word “Aon,” “Combined” or “Pat Ryan” in its
name such that each such Company changes its name to a name not containing the
word “Aon,” “Combined” or “Pat Ryan.” 
Promptly, but in no event later than five (5) Business Days after
the Closing, Buyer shall cause the applicable Companies to file the amended
organizational documents with the applicable Administrative Authority and use
all reasonable efforts to take such actions as may be necessary to fulfill its
obligations set forth in this Section 8.7(b).

(c)           Following the
Closing, Buyer shall (and shall cause the Companies to) cease promptly, but in
no event later than 60 days after the Closing Date, using any (i) advertising
or promotional materials and (ii) any stationery, business cards, business
forms and other similar items, in each case that contain anywhere thereon any
of the Retained Names and Marks; provided, however, that Buyer
shall (and shall cause the Companies to), when using items referred to in
clause (ii) in the context of entering into or conducting contractual
relationships, make reasonably clear to all other applicable parties that Buyer
and the Companies, rather than Aon or any Affiliate of Aon is the party
entering into or conducting the contractual relationship; and provided, further,
that Buyer shall (and shall cause the Companies 

 52
 

 

 

to) ensure that personnel of the Companies using such
items shall not, and shall have no authority to, hold themselves out as
officers, employees or agents of Aon or any Affiliate of Aon. Notwithstanding
the foregoing, the Companies shall be permitted to use the Retained Names and
Marks in any jurisdiction where they are unable under applicable Requirements
of Law to change the name under which they conduct the Warranty Business
without receipt of an approval or consent from an Administrative Authority in
such jurisdiction, provided that Buyer and the Companies are using all
reasonable efforts to obtain such approval or consent. With respect to all
materials used after the Closing which state or suggest or imply any
affiliation with Aon or any of the Affiliates of Aon, Buyer shall indemnify and
hold harmless the Seller Group Members from and against all Losses which arise
out of, relate to or result from the inclusion of such statements, suggestions
or implications in such materials.

(d)           Aon, on behalf of
itself and its Affiliates, grants Buyer and the Companies a limited
non-exclusive, royalty-free, transition trademark license solely for the
purpose of the Companies’ transitioning use of the Retained Names and Marks
after the Closing subject to and in accordance with Section 8.7(c).
Neither Buyer nor any Company shall acquire any rights whatsoever in the
Retained Names and Marks by virtue of its use during this transition period and
all use of the Retained Names and Marks by Buyer or the Companies during this
period and all goodwill arising out of such use shall inure to the benefit of
Aon.

(e)           During the
Restricted Period, Aon shall not, and shall cause its Affiliates not to, use as
a trade name the words “Aon” and “Warranty” as part of the same trade name.

Section 8.8            Financial
Information. For three years following the Closing, Aon
shall provide Buyer with the following assistance in connection with the
preparation of financial statements and financial data relating to the
Companies for periods prior to the Closing Date for use in connection with the
registration of securities by Buyer or its Affiliates:  (i) providing Buyer and its advisors and
auditors with reasonable access to books and records of Aon and its Affiliates
to the extent relating to the Companies, (ii) permitting the independent
public accountants retained by Buyer as auditors for such periods to conduct an
examination of the financial statements of the Companies for such periods in
accordance with the standards of the Public Company Accounting Oversight Board,
(iii) providing the independent public accountants referred to in
clause (ii) with such information and access to records as they may
reasonably request in connection with the matter referred to in such clause,
and (iv) to the extent not resulting in an unreasonable burden on Aon and
its Affiliates, providing Buyer and its independent public accountants with
such other assistance as Buyer may reasonably request as required to obtain
audited financial statements and selected financial data of the Companies
meeting the requirements of Rules promulgated by the Securities and
Exchange Commission for use in a registration statement filed on Form S-1
or any equivalent successor form. To the extent required by Buyer’s independent
auditors, Aon shall retain the independent auditors to provide the opinion (and
related consent) and customary comfort letters, in each case for periods prior
to the Closing, and shall authorize and request the independent public
accountants under these circumstances to provide Buyer and its advisors and
auditors with access to their workpapers to the extent relating to the
Companies. Within 5 Business Days following any request therefor, Buyer shall
reimburse Aon for all out-of-pocket costs and expenses incurred by Aon in
connection with the matters referred to in this Section 8.8. Buyer
and the Companies shall indemnify Aon against any and all Loss and Expense
arising from this Section 8.8.

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Section 8.9            Reissuance
of FFG Policies. From and after the Closing, Buyer shall
cause VSC to use all commercially reasonable efforts to cancel all policies
issued by FFG comprising the Warranty Business and reissue such policies by
VSC; provided, however, any such action taken by VSC under this Section 8.9
shall be in compliance with all applicable Requirements of Law and any
reinsurance contracts applicable to such policies.

Section 8.10         Certain
Deposits. The parties agree to act in accordance with Schedule
8.10.

Section 8.11         Existing Client Schedule.
The Existing Client Schedule shall initially be as set forth on Schedule
8.11. During the ninety (90) day period immediately following the date
hereof, Aon shall in good faith conduct a full review of the Existing Client
Schedule for purposes of verifying the information set forth therein. Aon
shall, by no later than the end of such ninety (90) period, provide Buyer with
a revised Existing Client Schedule and Client Agreements supporting the
inclusion of each client (and with respect to each such client, each geographic
area and each program provided within each geographic area) appearing thereon. For
avoidance of doubt, no entry may be included on the Existing Client Schedule
that is not so supported by a Client Agreement that is in effect on the date
hereof and is delivered to Buyer within such ninety (90) day period. Notwithstanding
anything to the contrary contained herein, Aon shall be permitted to redact any
portion of any Client Agreement delivered to Buyer under this Section 8.11
in its sole discretion to the extent that such information is not necessary to
establish the existence of the Client Agreement, the identity of the client or
the program or geography covered thereby.

ARTICLE IX

CONDITIONS PRECEDENT TO OBLIGATIONS OF BUYER

The obligations of
Buyer under this Agreement shall, at the option of Buyer (to the extent
permissible under applicable law), be subject to the satisfaction, on or prior
to the Closing Date, of the following conditions:

Section 9.1            No Misrepresentation or Breach of Covenants and
Warranties.

(a)           (A) There shall
not have been any material breach by Aon in the performance of any of its
covenants and agreements herein which shall not have been remedied or cured; (B) each
of the representations and warranties of Aon contained in this Agreement
(disregarding any qualification as to materiality or Material Adverse Effect)
shall be true and correct on the Closing Date as though made on the Closing
Date (except to the extent that they expressly relate to an earlier date, in
which case they shall be true and correct as of such date), except for (i) changes
therein specifically permitted by this Agreement or resulting from any
transaction expressly consented to in writing by Buyer or any transaction
expressly contemplated by this Agreement and (ii) breaches of
representations and warranties which would not, individually or in the
aggregate, reasonably be expected to have a Material Adverse Effect; and 

 54
 

 

 

there shall have been delivered to Buyer a certificate
to such effect, dated the Closing Date, signed on behalf of Aon by a duly
authorized officer of Aon.

Section 9.2            HSR
Act and EU Merger Control. The waiting period under the
HSR Act with respect to the transactions contemplated by this Agreement shall
have expired or been terminated. To the extent applicable, the European
Commission shall have issued a decision under Article 6(1)(b) or (8)(1) or
(8)(2) of Council Regulation (EC) No. 139/2004 of the Council of the
European Union (or shall be deemed to have done so under Article 10(6) thereof)
declaring the transactions contemplated by this Agreement compatible with the
EC Common Market.

Section 9.3            Necessary
Governmental Approvals. There shall have been obtained or
taken all approvals and actions of or by all Administrative Authorities
(including any approvals or consents from state departments of insurance having
or asserting jurisdiction over any of the Underwriting Companies) set forth in Schedule 9.3
or as to which the failure to have been obtained or taken place would
reasonably be expected to have a Material Adverse Effect.

Section 9.4            No
Restraint. No injunction or restraining order shall have
been issued by any court of competent jurisdiction or Administrative Authority
and be in effect which restrains or prohibits any material transaction
contemplated hereby.

Section 9.5            No
Governmental Proceedings. No legal proceeding by an
Administrative Authority shall be pending against Buyer, Aon, FFG, Combined or
any of the Companies (i) to restrain or prohibit any material transaction
contemplated hereby or (ii) which would, if adversely determined,
reasonably be expected to have a Material Adverse Effect.

Section 9.6            [Intentionally Omitted.]

Section 9.7            FIRPTA
Certificate. Aon shall have delivered to Buyer a
certificate of non-foreign status, in the form attached hereto as Exhibit B.

Section 9.8            Ratings.
(a)  A.M. Best Company shall have confirmed in writing the Financial
Strength Rating of A- and the Issuer Credit Rating of a- for VSC, after giving
effect to the Closing and the Facilitating Transactions; provided that
this condition shall be deemed satisfied if A.M. Best shall have confirmed
in writing that it would have issued such rating had the Indebtedness incurred
by Buyer and the Companies in connection with the transactions contemplated
hereby been $150 million or less (it being understood by the parties that VSC
will not incur any of such Indebtedness).

(b)  No downgrade of the ratings by A.M.
Best Company of RLIC and LGI as of the date of this Agreement shall have
occurred and not been reinstated in writing; provided that this
condition shall be deemed satisfied if A.M. Best shall have confirmed in
writing that it would not have issued such downgrade had the Indebtedness
incurred by Buyer and the Companies in connection with the transactions
contemplated hereby been $150 million or less (it being understood by the
parties that RLIC and LGI will not incur any of such Indebtedness).

(c)  No announcement by A.M. Best Company of a review of the
ratings of RLIC or LGI as of the date of this Agreement with negative
indications shall have occurred and not 

 55
 

 

 

been withdrawn in writing; provided that this
condition shall be deemed satisfied A.M. Best Company shall have confirmed
in writing that it would not have initiated such review had the Indebtedness
incurred by Buyer and the Companies in connection with the transactions
contemplated hereby been $150 million or less (it being understood by the
parties that RLIC and LGI will not incur any of such Indebtedness).

Section 9.9            No
MAE. Since the date of this Agreement, there shall not
have occurred any Material Adverse Effect, or any event or circumstance that
would reasonably be expected to have a Material Adverse Effect.

Notwithstanding
the failure of any one or more of the foregoing conditions in this Article IX,
Buyer may, at its option, proceed with the Closing without satisfaction, in
whole or in part, of any one or more of such conditions and without written
waiver. To the extent that at or prior to the Closing Aon delivers to Buyer a
written notice confirming that the condition specified in Section 9.1
has not been satisfied and specifying in reasonable detail the inaccuracies of
representations and warranties that cause such condition not to be satisfied
and nevertheless Buyer proceeds with the Closing, Buyer shall be deemed to have
waived for all purposes any rights or remedies it may have against Aon by
reason of the inaccuracies in representations and warranties described in such
notice.

ARTICLE X

CONDITIONS
PRECEDENT TO OBLIGATIONS OF AON

The obligations of
Aon under this Agreement shall, at the option of Aon (to the extent permissible
under applicable law), be subject to the satisfaction, on or prior to the
Closing Date, of the following conditions:

Section 10.1         No Misrepresentation or Breach of Covenants and
Warranties. (A)  There shall not have been
any material breach by Buyer in the performance of any of its covenants and
agreements herein which shall not have been remedied or cured; (B) each of
the representations and warranties of Buyer contained in this Agreement
(disregarding any qualification as to materiality) shall be true and correct on
the Closing Date as though made on the Closing Date (except to the extent that
they expressly relate to an earlier date, in which case they shall be true and
correct as of such date), except for (i) changes therein specifically
permitted by this Agreement or resulting from any transaction expressly
consented to in writing by Aon or any transaction expressly contemplated by
this Agreement and (ii) breaches of representations and warranties
(interpreted without giving effect to references to materiality) which would
not, individually or in the aggregate, reasonably be expected to have a
material adverse effect on Buyer’s ability to consummate the transactions
contemplated hereby; and there shall have been delivered to Aon a certificate
to such effect, dated the Closing Date, signed on behalf of Buyer by a duly
authorized officer of Buyer.

Section 10.2         HSR
Act and EU Merger Control. The waiting period under the
HSR Act with respect to the transactions contemplated by this Agreement shall
have expired or been terminated. To the extent applicable, the European
Commission shall have issued a decision under Article 6(1)(b) or (8)(1) or
(8)(2) of Council Regulation (EC) No. 139/2004 of the 

 56
 

 

 

Council of the European Union (or shall be deemed to
have done so under Article 10(6) thereof) declaring the transactions
contemplated by this Agreement compatible with the EC Common Market.

Section 10.3         Necessary
Governmental Approvals.There shall have been obtained or
taken all approvals and actions of or by all Administrative Authorities
(including, but not limited to, any approvals or consents from state
departments of insurance having or asserting jurisdiction over any of the
Underwriting Companies) set forth in Schedule 10.3 or as to which
the failure to have been obtained or taken place would reasonably be expected
to have a Material Adverse Effect.

Section 10.4         No Restraint. No injunction or restraining order
shall have been issued by any court of competent jurisdiction or Administrative
Authority and be in effect which restrains or prohibits any material
transaction contemplated hereby.

Section 10.5         No
Governmental Proceedings. No legal proceeding by an
Administrative Authority shall be pending (i) to restrain or prohibit any
material transaction contemplated hereby or (ii) which would reasonably be
expected to have a Material Adverse Effect.

Notwithstanding
the failure of any one or more of the foregoing conditions in Article X,
Aon may, at its option, proceed with the Closing without satisfaction, in whole
or in part, of any one or more of such conditions and without written waiver. To
the extent that at or prior to the Closing Buyer delivers to Aon a written
notice confirming that the condition specified in Section 10.1 has
not been satisfied and specifying in reasonable detail the inaccuracies of
representations and warranties that cause such condition not to be satisfied
and nevertheless Aon proceeds with the Closing, Aon shall be deemed to have
waived for all purposes any rights or remedies it may have against Buyer by
reason of the inaccuracies in representations and warranties described in such
notice.

ARTICLE XI

INDEMNIFICATION

Section 11.1         Indemnification by Aon.

(a)           From and after the
Closing, Aon agrees to indemnify and hold harmless each Buyer Group Member from
and against, and to reimburse each Buyer Group Member for, any and all Losses
and Expenses incurred by such Buyer Group Member in connection with or arising
from (and whether or not involving a third party claim):

(i)            any breach or inaccuracy of any
representation or warranty of Aon contained in this Agreement or in any
certificate of Aon delivered pursuant to this Agreement;

(ii)           any breach by Aon of, or failure by
Aon to perform, any of its covenants or obligations contained in this Agreement
requiring performance prior to the Closing;

 57
 

 

 

(iii)          any breach by Aon of, or failure by
Aon to perform, any of its covenants or obligations contained in this Agreement
requiring performance subsequent to the Closing; and

(iv)          (A) any Excluded Liability and (B) any
breach by any Seller Group Member (other than any of the Companies following
the Closing) of, or any failure by any Seller Group Member (other than any of
the Companies following the Closing) to perform, any of its covenants or
obligations in any Facilitating Transaction Agreement in accordance with the
terms thereof;

provided,
however, that Aon shall be required to indemnify and hold harmless under
clause (i) or clause (ii) of this Section 11.1(a) with
respect to Losses and Expenses incurred by Buyer Group Members only to the
extent that:

(x)            the
amount of Loss and Expense suffered by Buyer Group Members related to each
individual claim (or group or series of similar or related claims) exceeds
$50,000 (it being understood that such $50,000 shall be a threshold that, once
exceeded, shall be disregarded in determining Aon’s indemnification
obligation);

(y)           the
aggregate amount of such Losses and Expenses (other than Losses and Expenses
excluded by clause (x) above) exceeds 1% of the Purchase Price (it being
understood that such amount shall be a deductible for which Aon shall bear no
indemnification responsibility); and

(z)            the
aggregate amount required to be paid by Aon pursuant to clause (i) or
(ii) of this Section 11.1(a) does not exceed 15% of the
Purchase Price.

Notwithstanding anything
to the contrary herein, the limitations contained in clauses (x), (y) and
(z) shall not apply to any Loss or Expense incurred by any Buyer Group
Member:  (i) in connection with or
arising from any breach of any representation or warranty in Sections 5.2,
5.4(a) or 5.26 (or, to the extent relating thereto, the
certificate delivered pursuant to Section 9.1); or (ii) which
is required to be indemnified by Aon pursuant to Section 8.1 or 8.2;
provided, however, that in no event shall the aggregate amount
required to be paid by Aon pursuant to this Section 11.1(a) (other
than with respect to the matters referred to in Section 11(a)(iii),
Section 11(a)(iv) or Section 8.1 or 8.2,
for which Aon’s liability shall be unlimited) exceed 50% of the Purchase Price.

With respect to any
Excluded Liability that an Affiliate of Aon is required to satisfy pursuant to
the terms of a Facilitating Transaction Agreement, Buyer shall not initiate a
claim (and shall not be required to give any notice) under this Article XI
unless such Affiliate fails to satisfy such liability in accordance with
the requirements of such Facilitating Transaction Agreement.

(b)           The indemnification
provided for in clauses (i), (ii) and (iii) of Section 11.1(a) shall
terminate 12 months after the Closing Date (and no claims shall be made by
any Buyer Group Member under Section 11.1(a) thereafter),
except that the indemnification by Aon shall continue as to:

 

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(i)            the covenants of Aon set forth in Sections 8.1,
8.2, 8.7 and 8.10, and referred to in Section 11.1(a)(iv)(B) and
the representations and warranties in Sections 5.2, 5.4(a) and
5.26 (or to the extent relating thereto, the certificate delivered
pursuant to Section 9.1), which shall survive until 30 days
after the expiration of the relevant statutory period of limitations applicable
to the underlying claim, giving effect to any waiver, mitigation or extension
thereof (or, if no statutory period of limitations is applicable to the
underlying claim, shall survive forever);

(ii)           the covenants of Aon which by their
terms extend beyond 12 months, which shall survive until 30 days
after expiring in accordance with their respective terms;

(iii)          the representations and warranties in Section 5.1
and Section 5.3 (or, to the extent relating thereto, the
certificate delivered pursuant to Section 9.1) which shall survive
until the second anniversary of the Closing Date;

(iv)          the representations and warranties in Section 5.7
(or to the extent relating thereto, the certificate delivered pursuant to Section 9.1),
which shall survive until the later of 12 months after the Closing Date and 30
days after the filing of the last Tax Return required to be filed for the
relevant type of Tax relating in whole or in part to any taxable year or period
ending on or before the Closing Date (or with respect to any Straddle Period);
and

(v)           any Losses or Expenses of which any
Buyer Group Member has validly given a Claim Notice to Aon in accordance with
the requirements of Section 11.3 on or prior to the date such
indemnification would otherwise terminate in accordance with this Section 11.1,
as to which the obligation of Aon shall continue solely with respect to the
specific matters in such Claim Notice until the liability of Aon shall have
been determined pursuant to this Article XI, and Aon shall have
reimbursed all Buyer Group Members for the full amount of such Losses and
Expenses that are payable with respect to such Claim Notice in accordance with
this Article XI.

Claims
pursuant to Section 11.1(a)(iv)(A) may be made at any time,
whether before or after the expiration of any statutory period of limitations.

Section 11.2         Indemnification by Buyer.

(a)           From and after the
Closing, Buyer agrees to indemnify and hold harmless each Seller Group Member
from and against, and to reimburse each Seller Group member for, any and all
Losses and Expenses incurred by such Seller Group Member in connection with or
arising from (and whether or not involving a third party claim):

(i)            any breach or inaccuracy of any
representation or warranty of Buyer contained in this Agreement or in any
certificate of Buyer delivered pursuant to this Agreement;

(ii)           any breach by Buyer of, or failure by
Buyer to perform, any of its covenants and obligations contained in this
Agreement requiring performance prior to the Closing;

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(iii)          any breach by Buyer of, or failure by
Buyer to perform, any of its covenants and obligations contained in this
Agreement requiring performance subsequent to the Closing (including Section 7.7);
and

(iv)          (A) the operation of the
Companies after the Closing (other than any matter for which Aon is required to
provide indemnification pursuant to Section 11.1 or to the extent
resulting from a breach or inaccuracy or any representation or warranty of Aon
contained in this Agreement or in any certificate of Aon delivered pursuant to
this Agreement) or (B) any breach by any of the Companies after the
Closing of, or any failure by any of the Companies to perform after the
Closing, any of its covenants or obligations in any of the Facilitating
Transaction Agreements in accordance with the terms thereof.

With respect to any matter covered by Section 11.2(a)(iv) that
an Affiliate of Buyer is required to satisfy pursuant to the terms of a
Facilitating Transaction Agreement, Aon shall not initiate a claim (and shall
not be required to give any notice) under this Article XI unless
such Affiliate fails to satisfy such liability in accordance with the
requirements of such Facilitating Transaction Agreement.

(b)           The indemnification
provided for in clauses (i) and (ii) of Section 11.2(a) shall
terminate 12 months after the Closing Date (and no claims shall be made by
any Seller Group Member under Section 11.2(a) thereafter),
except that the indemnification by Buyer shall continue as to:

(i)            the covenants of Buyer set forth in Sections 8.1,
8.2, 8.5, 8.7, 8.8, 8.9 and 8.10 and
referred to in Section 11.2(a)(iv)(B), and the representations and
warranties in Sections 6.2(a), 6.4 and 6.6 (or to the
extent related thereto, the certificate delivered pursuant to Section 10.1),
which shall survive until 30 days after the expiration of the relevant
statutory period of limitations applicable to the underlying claim, giving effect
to any waiver, mitigation or extension thereof (or, if no statutory period of
limitations is applicable to the underlying claim, shall survive forever);

(ii)           the covenants of Buyer which by their
terms extend beyond 12 months, which shall survive until 30 days
after expiring in accordance with their respective terms; and

(iii)          any Losses or Expenses of which any
Seller Group Member has validly given a Claim Notice to Buyer in accordance
with the requirements of Section 11.3 on or prior to the date such indemnification
would otherwise terminate in accordance with this Section 11.2, as
to which the obligation of Buyer shall continue solely with respect to the
specific matters in such Claim Notice until the liability of Buyer shall have
been determined pursuant to this Article XI, and Buyer shall have
reimbursed all Seller Group Members for the full amount of such Losses and
Expenses that are payable with respect to such Claim Notice in accordance with
this Article XI.

Claims
pursuant to Section 11.2(a)(iv)(A) may be made at any time,
whether before or after the expiration of any statutory period of limitations.

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Section 11.3         Notice
of Claims. Any Buyer Group Member or Seller Group Member
seeking indemnification hereunder (the “Indemnified Party”) shall give
promptly to the party obligated to provide indemnification to such Indemnified
Party (the “Indemnitor”) a notice (a “Claim Notice”) describing
in reasonable detail the facts giving rise to the claim for indemnification
hereunder (to the extent known) and shall include in such Claim Notice (if then
known) the amount or the method of computation of the amount of such claim, and
a reference to the provision of this Agreement or any other agreement, document
or instrument executed hereunder or in connection herewith upon which such
claim is based; provided, however, that a Claim Notice in respect
of any action at law or suit in equity by or against a third Person as to which
indemnification will be sought shall be given promptly after the action or suit
is commenced. The failure to give notice as provided in this Section 11.3
shall not relieve the Indemnitor of its obligations hereunder, except to the
extent it shall have been prejudiced by such failure.

Section 11.4         Determination of Amount.

(a)           In calculating any
Loss or Expense, such amounts shall be calculated on an After-Tax Basis and
shall be net of any third-party insurance proceeds (determined net of recovery
costs) which have been recovered by the Indemnified Party in connection with
the facts giving rise to the right of indemnification (such proceeds to be
reduced by the amount of any retrospective or other premium adjustment payable
by the Indemnified Party in respect of such claim). The Indemnified Party shall
use commercially reasonable efforts to recover insurance proceeds that may be
recoverable.

(b)           After the giving of
any Claim Notice pursuant to Section 11.3, the amount of
indemnification to which an Indemnified Party shall be entitled under this Article XI
shall be determined:  (i) by the
written agreement between the Indemnified Party and the Indemnitor; (ii) by
a final judgment or decree of any court of competent jurisdiction; or (iii) by
any other means to which the Indemnified Party and the Indemnitor shall agree. The
judgment or decree of a court shall be deemed final when the time for appeal,
if any, shall have expired and no appeal shall have been taken or when all
appeals taken shall have been finally determined. The Indemnified Party shall
have the burden of proof in establishing the amount of Losses and Expenses
suffered by it.

Section 11.5         Third Person Claims.

(a)           Any party seeking
indemnification provided for under this Agreement in respect of, arising out of
or involving a claim or demand made by any third Person against the Indemnified
Party shall notify the Indemnitor in writing, and in reasonable detail, of the
third Person claim within 10 Business Days after receipt by such Indemnified
Party of written notice of the third Person claim. Thereafter, the Indemnified
Party shall deliver to the Indemnitor, within 5 Business Days after the
Indemnified Party’s receipt thereof, copies of all notices and documents 

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(including court papers) received by the Indemnitor
relating to the third Person claim. Notwithstanding the foregoing, should a party
be physically served with a complaint with regard to a third Person claim, the
Indemnified Party shall notify the Indemnitor with a copy of the complaint
within 10 Business Days after receipt thereof and shall deliver to the
Indemnitor within 5 Business Days after the receipt of such complaint copies of
notices and documents (including court papers) received by the Indemnified
Party relating to the third Person claim. The failure to give notice or make
deliveries as provided in this Section 11.5(a) shall
not relieve the Indemnitor of its obligations hereunder except to the extent it
shall have been prejudiced by such failure.

(b)           If any legal
proceeding shall be threatened or instituted or any claim or demand shall be
asserted by any Person in respect of which payment may be sought by one party
hereto from the other party under the provisions of this Article XI,
the Indemnified Party shall promptly cause written notice of the assertion of
any such claim of which it has knowledge which is covered by this indemnity to
be forwarded to the Indemnitor, but the failure to give such notice shall not
relieve the Indemnitor of its obligations hereunder except to the extent it
shall have been prejudiced by such failure. Any notice of a claim by reason of
any of the representations, warranties or covenants contained in this Agreement
shall refer to the provision of this Agreement or any other agreement, document
or instrument executed hereunder or in connection herewith upon which such
claim is based and describe in reasonable detail (to the extent known) the
facts giving rise to an alleged basis for the claim and the amount of the
liability asserted against the Indemnitor by reason of the claim. In the event
of the initiation of any legal proceeding against the Indemnified Party by a
third Person, the Indemnitor shall have the sole and absolute right after the
receipt of notice, at its option and at its own expense, to be represented by
counsel of its choice and to control, defend against, negotiate, settle or
otherwise deal with any proceeding, claim, or demand which relates to any loss,
liability or damage indemnified against hereunder except to the extent the
Indemnitor is also a party to such legal proceeding and joint defense would
involve a conflict of interest under applicable professional standards; provided,
however, that the Indemnified Party may participate in any such
proceeding with counsel of its choice and at its expense. Each of the parties
hereto agrees to cooperate fully with the other parties in connection with the
defense, negotiation or settlement of any such legal proceeding, claim or
demand and to make available to the other parties all witnesses, pertinent
records, materials and information in such party’s possession or under such
party’s control relating thereto as is reasonably required by the other parties.
To the extent the Indemnitor fails to defend such proceeding, claim or demand,
and the Indemnified Party defends against or otherwise deals with any such
proceeding, claim or demand, the Indemnified Party may retain counsel, at the
expense of the Indemnitor, and control the defense of such proceeding;
provided, however, that the Indemnitor shall be obligated pursuant to this Section 11.5
to pay for only one firm of counsel (and local counsel, as appropriate) for all
Indemnified Parties. Neither the Indemnitor nor the Indemnified Party may
settle or otherwise consent to the resolution of any such proceeding which
settlement or resolution obligates the other party to pay money, to perform
obligations or to admit or accept a finding of liability, wrongdoing or
violation of law or the rights of any Person without the consent of the other
party, such consent not to be unreasonably withheld (taking into account the
impact of the settlement on ongoing business). In the event the Indemnified
Party shall refuse to consent to the settlement of any third Person claim, so
long as only money damages that are payable in full by the Indemnitor are
involved and there is no admission of liability, wrongdoing or violation of law
or the rights of any Person with respect to the Indemnified Party, the
liability of the Indemnitor in respect of such third Person claim shall not
exceed the amount for which the third Person claim could have been settled plus
the amount of expenses incurred by the Indemnified Party prior to the time of
the proposed settlement to which it is entitled to indemnification. After any
final judgment or award shall have been rendered by a court, arbitration board
or administrative agency of competent 

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jurisdiction and the time in which to appeal therefrom
has expired, or a settlement shall have been consummated, or the Indemnified
Party and the Indemnitor shall arrive at a mutually binding agreement with
respect to each separate matter alleged to be indemnified by the Indemnitor
hereunder, the Indemnified Party shall forward to the Indemnitor notice of any
sums due and owing by it with respect to such matter and the Indemnitor shall
pay all of the sums so owing to the Indemnified Party by wire transfer,
certified or bank cashier’s check within 30 days after the date of such
notice.

(c)           To the extent of any
inconsistency between this Section 11.5 and Section 8.1(c) (relating
to Tax contests), the provisions of Section 8.1(c) shall
control with respect to Tax contests.

Section 11.6         Limitations.

(a)           In any case where an
Indemnified Party recovers from third Persons any amount in respect of a matter
with respect to which an Indemnitor has indemnified it pursuant to this Article XI,
such Indemnified Party shall promptly pay over to the Indemnitor the amount so
recovered (after deducting therefrom the full amount of the expenses incurred
by it in procuring such recovery), but not in excess of the amount by which any
amount previously so paid by the Indemnitor to or on behalf of the Indemnified
Party in respect of such matter would have been reduced if such recovery had
been taken into account.

(b)           If Aon is conducting
any defense against a third Person claim for which a Buyer Group Member has
sought indemnification pursuant to Section 11.1(a), expenses
incurred by Aon in connection therewith, including legal costs and expenses,
shall constitute Expenses for purposes of determining the maximum aggregate
amount to be paid by Aon pursuant to Section 11.1(a).

(c)           Aon shall not have
any liability for any inaccuracy in or breach of any representation or warranty
by Aon if Robert M. Le Blanc had actual knowledge on or before date of this
Agreement of the facts as a result of which such representation or warranty was
inaccurate or breached.

(d)           Except for remedies
that cannot be waived as a matter of law and equitable remedies (including
specific performance), if the Closing occurs, this Article XI shall
be the exclusive remedy for breaches of this Agreement (including any covenant,
obligation, representation or warranty contained in this Agreement or in any
certificate delivered pursuant to this Agreement) or otherwise in respect of
the sale of the Shares contemplated hereby.

(e)           Except for matters
under Sections 11.1(a)(iii) and (iv) and Sections
11.2(a)(iii) and (iv), in no event shall any party be liable
for any special, incidental, consequential (including loss of revenues or
profits), exemplary or punitive damages arising under any legal or equitable
theory or arising under or in connection with this Agreement, all of which are
hereby excluded by agreement of the parties regardless of whether or not any
party to this Agreement has been advised of the possibility of such damages. For
the avoidance of doubt, with respect to matters under Sections 11.1(a)(iii) and
(iv) and Sections 11.2(a)(iii) and (iv), Losses
and Expenses shall include special, incidental, consequential, exemplary or
punitive 

 63
 

 

 

damages. Except for Section 8.8,
under no circumstances shall a party be entitled to recover any Losses or
Expenses arising from or relating to (i) any registration or issuance of
securities by Buyer or its Affiliates after the Closing (or any inability to do
so), (ii) any sale or other disposition of all or any portion of the
Warranty Business (by merger, consolidation, share exchange, tender or exchange
offer, spin-off, recapitalization, sale of assets, sale of securities or
otherwise) by Buyer or its Affiliates after the Closing (or any inability to do
so) or (iii) any change in Requirements of Law or accounting standards,
principles or rules after the date of this Agreement.

(f)            Aon shall not be
required to indemnify and hold harmless any Buyer Group Member pursuant to Section 11.1(a) to
the extent the matter in question was taken into account in the computation of
the Net Worth Adjustment Amount pursuant to Section 4.5.

Section 11.7         No
Effect of Knowledge. Except as provided for in Section 11.6(c),
the right to indemnification, payment of Losses and Expenses or other remedy based
on representations, warranties, covenants and obligations in this Agreement, or
any certificate delivered pursuant to this Agreement, will not be affected by
any investigation conducted with respect to, or any knowledge acquired (or
capable of being acquired) at any time, whether before or after the execution
and delivery of this Agreement or the Closing Date, with respect to the
accuracy or inaccuracy of or compliance with, any such representation,
warranty, covenant, or obligation. Except as specifically provided in the last
sentences of Article IX and Article X, the waiver of
any condition based on the accuracy of any representation or warranty, or on
the performance of or compliance with any covenant or obligation, will not
affect the right to indemnification, payment of Losses and Expenses, or other
remedy based on such representations, warranties, covenants and obligations.

Section 11.8         Mitigation.
Each of the parties agrees to act in good faith to mitigate their respective
Losses and Expenses upon and after becoming aware of any event or condition
which could reasonably be expected to give rise to any Losses and Expenses that
are indemnifiable hereunder.

Section 11.9         Facilitating Transactions.
For all purposes of this Article XI, the indemnification and
reimbursement obligations of Aon set forth in the last sentence of Section 7.6
shall be treated as if provided in Section 11.1(a)(iv)(A).

ARTICLE
XII

TERMINATION

Section 12.1         Termination.
Anything contained in this Agreement to the contrary notwithstanding, this
Agreement may be terminated at any time prior to the Closing Date:

(a)           by the mutual
consent of Buyer and Aon;

(b)           by Buyer in the
event of any breach by Aon of any of its agreements, representations or
warranties contained herein which has resulted in a Material Adverse Effect 

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and the failure of Aon to cure such breach within
30 days after receipt of notice from Buyer requesting such breach to be
cured;

(c)           by Aon in the event
of any breach by Buyer of any of Buyer’s agreements, representations or
warranties contained herein which has resulted in a material adverse effect on
Buyer’s ability to consummate the transactions contemplated hereby and the
failure of Buyer to cure such breach within 30 days after receipt of
notice from Aon requesting such breach to be cured;

(d)           by Buyer or Aon if
any court of competent jurisdiction in the United States or other United States
Administrative Authority shall have issued a final and non-appealable order,
decree or ruling permanently restraining, enjoining or otherwise prohibiting
the consummation of any material transaction contemplated hereby; or

(e)           by Buyer or Aon if
the Closing shall not have occurred on or before March 31, 2007; provided,
however, that either party may by written notice to the other party
delivered on or before March 31, 2007 extend such date until any date
prior to May 31, 2007 if the failure of the Closing to have occurred on or
before March 31, 2007 shall have resulted from the failure of the
condition set forth in Section 9.3 and 10.3; provided,
further, that the right to terminate this Agreement pursuant to this Section 12.1(e) shall
not be available to any party whose failure to fulfill any of its obligations
contained in this Agreement has been the cause of, or resulted in, the failure
of the Closing to have occurred on or prior to the aforesaid date.

Section 12.2         Notice
of Termination. Any party desiring to terminate this
Agreement pursuant to Section 12.1 shall give written notice of
such termination to the other parties to this Agreement.

Section 12.3         Effect
of Termination. If this Agreement shall be terminated
pursuant to this Article XII, all further obligations of the
parties under this Agreement (other than Section 13.9) shall be
terminated without further liability of any party to the other; provided,
however, that nothing herein shall relieve any party from liability for
its willful breach of this Agreement.

Section 12.4         Specific
Performance. The parties agree that irreparable damage
would occur in the event that any of the terms or provisions of this Agreement
were not performed in accordance with their specific wording or were otherwise
breached. It is accordingly agreed that, notwithstanding anything to the
contrary contained in this Agreement, each of the parties hereto shall be
entitled, without the necessity of posting a bond, to a temporary restraining
order and to a preliminary and final injunction or injunctions to prevent
breaches of this Agreement and to enforce specifically the terms and provisions
hereof in any court of the United States of America or any state having
jurisdiction, such remedy being in addition to any other remedy to which any
party may be entitled at law or in equity.

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ARTICLE
XIII

GENERAL
PROVISIONS

Section 13.1         Survival
of Representations and Warranties. All representations
and warranties contained in this Agreement shall survive the consummation of
the transactions contemplated by this Agreement through the period during which
claims for indemnification may be made for such representations and warranties
pursuant to Article XI (at which time such representations and
warranties shall terminate).

Section 13.2         No
Public Announcement. None of Buyer and Aon shall, without
the approval of the other, make any press release or other public announcement
concerning the transactions contemplated by this Agreement, except as and to
the extent that any such party shall be so obligated by law, in which case the
other party shall be advised and the parties shall use their reasonable efforts
to cause a mutually agreeable release or announcement to be issued; provided,
however, that the foregoing shall not preclude communications or
disclosures (i) necessary to implement the provisions of this Agreement or
to comply with the accounting and the Securities and Exchange Commission
disclosure obligations, Canadian provincial securities laws or the rules of
any stock exchange or (ii) with public stockholders and/or analysts in the
ordinary course of business for a transaction of the type contemplated by this
Agreement.

Section 13.3         Notices.
All notices or other communications required or permitted hereunder shall be in
writing and shall be deemed given or delivered when delivered personally or
when sent by registered or certified mail or by private courier addressed as
follows:

If to Buyer, to:

c/o Onex Partners, L.P.

712 Fifth Avenue

New York, New York  10019

Attention:  Robert M. LeBlanc

Telecopier:  (212) 528-0909

with
copies to:

Kaye Scholer LLP

425 Park Avenue

New York, New York  10022

Attention:  Joel I. Greenberg

Telecopier:  (212) 836-8211

Onex Corporation

161 Bay Street

Toronto, Ontario, Canada M5J 2S1

Attention:  Andrea E. Daly

Telecopier:  (416) 362-5765

If to
Aon, to:

Aon Corporation

Aon Center

200 East Randolph Street

 66
 

 

Chicago, Illinois 
60601

Attention:  Richard E. Barry 

Facsimile:  (312) 381-6165

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with a
copy to:

Sidley Austin LLP

One South Dearborn Street

Chicago, Illinois  60603

Attention:  Frederick C. Lowinger
                      Gary D. Gerstman

Telecopier:  (312) 853-7036

or to such other address
as such party may indicate by a notice delivered to the other party hereto.

Section 13.4         Successors
and Assigns. This Agreement shall be binding upon and
inure to the benefit of the parties hereto and their respective successors and
permitted assigns; provided, however, that no party to this
Agreement may assign its rights prior to the Closing or delegate its
obligations under this Agreement without the express prior written consent of
the other party to this Agreement. Notwithstanding the foregoing, Buyer may
assign any of its rights or obligations under this Agreement to any of its
Affiliates provided that (a) such assignment shall not relieve Buyer of
any of its obligations hereunder, (b) the assignee shall have agreed to be
jointly and severally liable for Buyer’s obligations hereunder and (c) such
assignment shall not delay the Closing for more than an insignificant period. Following
the Closing, any party may assign any of its rights hereunder, but no such
assignment shall relieve it of its obligations hereunder.

Section 13.5         Access
to Records after Closing.

(a)           For a period of six
years after the Closing Date, Aon and its representatives shall have reasonable
access to all of the books and records of the Companies to the extent that such
access may reasonably be required by Aon in connection with matters relating to
or affected by the operations of the Companies prior to the Closing Date. Such
access shall be afforded by Buyer upon receipt of reasonable advance notice and
during normal business hours. Aon shall be solely responsible for any costs or
expenses incurred by it pursuant to this Section 13.5(a). If Buyer
or the Companies shall desire to dispose of any of such books and records prior
to the expiration of such six-year period, Buyer shall, prior to such disposition,
give Aon a reasonable opportunity, at Aon’s expense, to segregate and remove
such books and records as Aon may select.

(b)           For a period of six
years after the Closing Date, Buyer and its representatives shall have
reasonable access to all of the books and records relating to the Companies
which Aon may retain after the Closing Date. Such access shall be afforded by
Aon upon receipt of reasonable advance notice and during normal business hours.
Buyer shall be solely responsible for any costs and expenses incurred by it
pursuant to this Section 13.5(b). If Aon shall desire to dispose of
any of such books and records prior to the expiration of such six-year period,
Aon shall, prior to such disposition, give Buyer a reasonable opportunity, at
Buyer’s expense, to segregate and remove such books and records as Buyer may
select.

 

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Section 13.6         Entire
Agreement; Amendments. This Agreement, the Exhibits and
Schedules referred to herein, the documents delivered pursuant hereto and the
Confidentiality Agreement contain the entire understanding of the parties
hereto with regard to the subject matter contained herein or therein, and
supersede all other prior representations, warranties, agreements,
understandings or letters of intent between or among any of the parties hereto.
This Agreement shall not be amended, modified or supplemented except by a
written instrument signed by an authorized representative of each of the
parties hereto.

Section 13.7         Interpretation.
Disclosure of any fact or item in any Schedule hereto referenced by a
particular section in this Agreement shall be deemed to have been disclosed
with respect to every other section in this Agreement to the extent such
disclosure is reasonably clear on its face that it would apply to such other
section. Neither the specification of any dollar amount in any representation
or warranty contained in this Agreement nor the inclusion of any specific item
in any Schedule hereto is intended to imply that such amount, or higher or
lower amounts, or the item so included or other items, are or are not material,
and no party shall use the fact of the setting forth of any such amount or the
inclusion of any such item in any dispute or controversy between the parties as
to whether any obligation, item or matter not described herein or included in
any Schedule is or is not material for purposes of this Agreement. Unless this
Agreement specifically provides otherwise, neither the specification of any
item or matter in any representation or warranty contained in this Agreement
nor the inclusion of any specific item in any Schedule hereto is intended to
imply that such item or matter, or other items or matters, are or are not in
the ordinary course of business, and no party shall use the fact of the setting
forth or the inclusion of any such item or matter in any dispute or controversy
between the parties as to whether any obligation, item or matter not described
herein or included in any Schedule is or is not in the ordinary course of
business for purposes of this Agreement. Any Exhibit that is required to
be in substantially the form attached to this Agreement or Facilitating
Transaction Agreement that is required to be in substantially the form provided
by Schedule 1.1(E) shall include any modifications required by an
Administrative Authority in order to obtain the approval of such Administrative
Authority of any of the transactions contemplated hereby which do not
materially alter the economic terms of such agreements or the rights or
obligations of any party thereunder. Article and Section headings are
not part of this Agreement and shall be disregarded in the interpretation of
this Agreement.

Section 13.8         Waivers.
Any term or provision of this Agreement may be waived, or the time for its
performance may be extended, by the party or parties entitled to the benefit
thereof. Any such waiver shall be validly and sufficiently authorized for the
purposes of this Agreement if, as to any party, it is authorized in writing by
an authorized representative of such party. The failure of any party hereto to
enforce at any time any provision of this Agreement shall not be construed to
be a waiver of such provision, nor in any way to affect the validity of this
Agreement or any part hereof or the right of any party thereafter to enforce
each and every such provision. No waiver of any breach of this Agreement shall
be held to constitute a waiver of any other or subsequent breach.

Section 13.9         Expenses  Except as expressly set forth herein, each
party hereto will pay all costs and expenses incident to its negotiation and
preparation of this Agreement and to its performance and compliance with all
agreements and conditions contained herein on its 

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part to be performed or complied with, including the
fees, expenses and disbursements of its counsel, independent public accountants
and other advisors.

Section 13.10       Partial
Invalidity. Wherever possible, each provision hereof
shall be interpreted in such manner as to be effective and valid under
applicable law, but in case any one or more of the provisions contained herein
shall, for any reason, be held to be invalid, illegal or unenforceable in any
respect, such provision shall be ineffective to the extent, but only to the
extent, of such invalidity, illegality or unenforceability without invalidating
the remainder of such invalid, illegal or unenforceable provision or provisions
or any other provisions hereof, unless such a construction would be
unreasonable.

Section 13.11       Execution
in Counterparts. This Agreement may be executed in
counterparts, each of which shall be considered an original instrument, but all
of which shall be considered one and the same agreement, and shall become
binding when one or more counterparts have been signed by each of the parties
hereto and delivered to the other parties.

Section 13.12       Further
Assurances. Upon the terms and subject to the conditions
herein, each of the parties hereto agrees to use its reasonable best efforts to
take or cause to be taken all action, to do or cause to be done, and to assist
and cooperate with the other party in doing, all things necessary, proper or
advisable under applicable laws and regulations to consummate and make
effective, in the most expeditious manner practicable, the transactions
contemplated by this Agreement, including (i) the satisfaction of the
conditions precedent to the obligations of any of the parties hereto; (ii) the
defending of any lawsuits or other legal proceedings, whether judicial or
administrative, challenging this Agreement or the performance of the
obligations hereunder; and (iii) the execution and delivery of such
instruments, and the taking of such other actions as the other party hereto may
reasonably require in order to carry out the intent of this Agreement.

Section 13.13       Disclaimer
of Warranties. Aon makes no representations or warranties
with respect to any projections, forecasts or forward-looking information
provided to Buyer. There is no assurance that any projected or forecasted
results will be achieved. EXCEPT AS TO THOSE MATTERS EXPRESSLY COVERED BY THE
REPRESENTATIONS AND WARRANTIES IN THIS AGREEMENT, AON IS SELLING THE SHARES (AND
THE BUSINESS AND ASSETS OF THE COMPANIES REPRESENTED THEREBY) ON AN “AS IS,
WHERE IS” BASIS AND AON DISCLAIMS ALL OTHER WARRANTIES, REPRESENTATIONS AND
GUARANTEES WHETHER EXPRESS OR IMPLIED. AON MAKES NO REPRESENTATION OR WARRANTY
AS TO MERCHANTABILITY OR FITNESS FOR ANY PARTICULAR PURPOSE AND NO IMPLIED
WARRANTIES WHATSOEVER. Buyer acknowledges that neither Aon nor any of its
representatives or Affiliates or any other Person has made any representation
or warranty, express or implied, as to the accuracy or completeness of any
memoranda, charts or summaries heretofore made available by the Companies or
Aon or their respective representatives or Affiliates to Buyer or any other
information which is not included in this Agreement or the Schedules hereto, and
none of Aon, its representatives or Affiliates or any other Person will have or
be subject to any liability to Buyer, any Affiliate of Buyer or any other
Person resulting from the distribution of any such information to, or use of
any such information by, Buyer, any Affiliate of Buyer or any of their agents,
consultants, accountants, counsel or other representatives.

 70
 

 

 

Section 13.14       Governing
Law; Submission to Jurisdiction  This Agreement shall be governed by and
construed in accordance with the internal laws of the State of Illinois. By the
execution and delivery of this Agreement, Buyer and Aon submit to the personal
jurisdiction of any state or federal court in the State of Illinois in any suit
or proceeding arising out of or relating to this Agreement.

Section 13.15       Waiver
of Jury Trial. Each of the parties hereby expressly
waives any right to trial by jury in any dispute, whether sounding in contract,
tort or otherwise, between or among any of the parties arising out of or
related to the transactions contemplated by this Agreement or any of the Seller
Ancillary Agreements or Buyer Ancillary Agreements, or any other instrument or
document executed or delivered in connection herewith or therewith. Any party
may file an original counterpart or a copy of this Agreement with any court as
written evidence of the consent of the parties to the waiver of their right to
trial by jury.

 

 71

 

 

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

	
  

  	
   

  	
  AON CORPORATION

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Diane Aigotti

  
	
   

  	
   

  	
  Name: Diane Aigotti

  
	
   

  	
   

  	
  Title: Senior Vice President and Treasurer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  WARRIOR ACQUISITION CORP.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Robert M. LeBlanc

  
	
   

  	
   

  	
  Name: Robert M. LeBlanc

  
	
   

  	
   

  	
  Title:

  

 

 

Annex A

Parent Entities

	
  Name of Parent

  Entity

  	
   

  	
  Owner of Parent

  Entity Capital Stock

  	
   

  	
  Number of

  Shares

  Outstanding of

  Parent Entity

  
	
  Aon Warranty
  Group, Inc. [IL]

  	
   

  	
  Aon Corporation [DE]

  	
   

  	
  1,100,000

  
	
  Resource Life Insurance
  Company [IL]

  	
   

  	
  Aon Corporation [DE]

  	
   

  	
  250,000

  
	
  Virginia Surety
  Company, Inc. [IL]

  	
   

  	
  Aon Corporation [DE]

  	
   

  	
  5,000,000

  
	
  Rockford
  Holding, Inc. [DE]

  	
   

  	
  Sterling Life Insurance Company [IL]

  	
   

  	
  100,000

  
	
  Combined Life Assurance
  Company Limited [UK]

  	
   

  	
  Aon Warranty Group Europe Limited [UK]

  	
   

  	
  5,250,000

  
	
  Aon Warranty Group
  Services Limited [UK]

  	
   

  	
  Aon Warranty Group Europe Limited [UK]

  	
   

  	
  541,542

  
	
  Aon Warranty Services
  Limited [ISLE OF MAN]

  	
   

  	
  Aon Warranty Group Europe Limited [UK]

  	
   

  	
  20,000

  
	
  Aon Warranty Group
  Limited [UK]

  	
   

  	
  Aon Warranty Group Europe Limited [UK]

  	
   

  	
  1

  
	
  London General Holdings
  Limited [UK]

  	
   

  	
  Aon Warranty Group Europe Limited [UK]

  	
   

  	
  5,000,000

  
	
  London General
  Insurance Company Limited [UK]

  	
   

  	
  Aon Warranty Group Europe Limited [UK]

  	
   

  	
  15,000,000

  

 

 

 

Annex B

Subsidiaries

	
  Name of
  Subsidiary

  	
   

  	
  Owner of Subsidiary Capital Stock

  
	
   

  	
   

  	
   

  
	
  Aon Innovative Solutions, Inc. [MO]

  	
   

  	
  Aon Warranty Group, Inc. [IL]

  
	
  Innovative Services International, LLC [DE]

  	
   

  	
  Aon Innovative Solutions, Inc. [MO]

  
	
  Aon Warranty Peru S.A. [PERU]

  	
   

  	
  99% Aon Warranty Group, Inc. [IL] / 

  1% Aon Warranty Services, Inc. [IL]

  
	
  Aon Warranty Services Australasia Pty. Ltd.
  [AUSTRALIA]

  	
   

  	
  Aon Warranty Group, Inc. [IL]

  
	
  Aon Warranty Korea, Inc. [KOREA]

  	
   

  	
  Aon Warranty Group, Inc. [IL]

  
	
  Aon Warranty Services de Mexico S.A. de C.V.
  [MEXICO]

  	
   

  	
  99.99% Aon Warranty Group, Inc. [IL] /
 0.01% Aon Warranty Services, Inc.
  [IL]

  
	
  Aon Warranty Services, Inc. [IL]

  	
   

  	
  Aon Warranty Group, Inc. [IL]

  
	
  Aon Warranty Services do Brasil Ltda. [BRAZIL]

  	
   

  	
  Aon Warranty Services, Inc. [IL]

  
	
  Aon Warranty Services Colombia S.A. [COLOMBIA]
  [under review]

  	
   

  	
  Aon Warranty Services, Inc. [IL]

  
	
  Automotive Warranty Services, Inc. [DE]

  	
   

  	
  Aon Warranty Group, Inc. [IL]

  
	
  AWS Warranty Services Canada, Inc. [CANADA]

  	
   

  	
  Automotive Warranty Services, Inc. [DE]

  
	
  AWS Warranty Services Quebec, Inc. [ONTARIO]

  	
   

  	
  AWS Warranty Services Canada, Inc. [CANADA]

  
	
  Automotive Warranty Services of Florida, Inc.
  [FL]

  	
   

  	
  Aon Warranty Group, Inc. [IL]

  
	
  Service Saver, Incorporated [FL]

  	
   

  	
  Automotive Warranty Services of Florida, Inc.
  [FL]

  
	
  ServicePlan of Florida, Inc. [FL]

  	
   

  	
  Automotive Warranty Services of Florida, Inc.
  [FL]

  
	
  Consumer Program Administrators, Inc. [IL]

  	
   

  	
  Aon Warranty Group, Inc. [IL]

  
	
  ServicePlan, Inc. [IL]

  	
   

  	
  Aon Warranty Group, Inc. [IL]

  
	
  National Product Care Company [IL]

  	
   

  	
  ServicePlan, Inc. [IL]

  
	
  Product Care, Inc. [IL]

  	
   

  	
  ServicePlan, Inc. [IL]

  
	
  Service Protection, Inc. [IL]

  	
   

  	
  ServicePlan, Inc. [IL]

  

 

 

	
  Name of
  Subsidiary

  	
   

  	
  Owner of Subsidiary Capital Stock

  
	
   

  	
   

  	
   

  
	
  Combined Insurance Company de Argentina S.A.
  Compania de Seguros [ARGENTINA]

  	
   

  	
  Aon Warranty Group, Inc. [IL]

  
	
  Combined Seguros Brasil SA [BRAZIL]

  	
   

  	
  Aon Warranty Group, Inc. [IL]

  
	
  Resource Automotive, Inc. [IL]

  	
   

  	
  Aon Warranty Group, Inc. [IL]

  
	
  First Extended, Inc. [DE]

  	
   

  	
  Resource Automotive, Inc. [IL]

  
	
  FFG Corporation [DE]

  	
   

  	
  First Extended, Inc. [DE]

  
	
  Dealer Performance, Inc. [TX]

  	
   

  	
  FFG Corporation [DE]

  
	
  First Extended Service Corporation of Florida [FL]

  	
   

  	
  FFG Insurance Company [TX]

  
	
  First Extended Service Corporation [TX]

  	
   

  	
  First Extended, Inc. [DE]

  
	
  Automotive Insurance Agency, Inc. [TX]

  	
   

  	
  First Extended Service Corporation [TX]*

  
	
  Automotive Insurance Purchasing Group, Inc.
  [TX]**

  	
   

  	
   

  
	
  Resource Acquisition Corporation [DE]

  	
   

  	
  Resource Automotive, Inc. [IL]

  
	
  Resource Training, Inc. [IL]

  	
   

  	
  Resource Automotive, Inc. [IL]

  
	
  Resource Dealer Group, Inc. [IL]

  	
   

  	
  Resource Automotive, Inc. [IL]

  
	
  Associates Dealer Group of Bellevue,
  Washington, Inc. [WA]

  	
   

  	
  Resource Dealer Group, Inc. [IL]

  
	
  RDG Resource Dealer Group (Canada) Inc. [CANADA]

  	
   

  	
  Resource Dealer Group, Inc. [IL]

  
	
  Resource Dealer Group, Inc. [MS]

  	
   

  	
  Resource Dealer Group, Inc. [IL]

  
	
  Resource Dealer Group of Arizona Insurance
  Services, Inc. [AZ]

  	
   

  	
  Resource Dealer Group, Inc. [IL]

  
	
  Resource Dealer Group of Nevada, Inc. [NV]

  	
   

  	
  Resource Dealer Group, Inc. [IL]

  
	
  Resource Dealer Insurance Services of
  California, Inc. [CA]

  	
   

  	
  Resource Dealer Group, Inc. [IL]

  
	
  Aon Home Warranty Services, Inc. [DE]

  	
   

  	
  Virginia Surety Company, Inc. [IL]

  
	
  Virginia Surety Compania de Seguros [ARGENTINA]

  	
   

  	
  99.97% Virginia Surety Company, Inc. [IL] / 

  0.03% Combined Insurance Company of America [IL]

  

 

 

	
  Name of
  Subsidiary

  	
   

  	
  Owner of Subsidiary Capital Stock

  
	
   

  	
   

  	
   

  
	
  Rockford Life Insurance Company [AZ]

  	
   

  	
  Rockford Holding, Inc. [DE]

  
	
  IMC Group Limited [UK]

  	
   

  	
  Aon Warranty Group Services Limited [UK]

  
	
  Aon Warranty Group Polska Sp Z.o.o. [POLAND]

  	
   

  	
  Aon Warranty Group Limited [UK]

  
	
  Motorplan Limited [UK]

  	
   

  	
  London General Holdings Limited [UK]

  
	
  London General Holdings Spain SA [SPAIN]

  	
   

  	
  London General Holdings Limited [UK]

  
	
  Aon Warranty Group France Sarl [FRANCE]

  	
   

  	
  London General Holdings Limited [UK]

  
	
  Aon Repair Services
  (Shanghai) Co., Ltd. [CHINA]

  	
   

  	
  Aon Warranty Services, Inc. [IL]

  
	
  AWST (Thailand) Company
  Limited [THAILAND]

  	
   

  	
  Aon Warranty Services, Inc. [IL] /

  Resource Dealer Group, Inc. [IL]

  

 

* Beneficial ownership only

** This is a not-for-profit
corporation and has no shareholders

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00106-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00106-of-00352.parquet"}]]