Document:

Exhibit 10.15

================================================================================

                     PREMIUM RECEIVABLE SERVICING AGREEMENT

                                  by and among

                                   FPF, INC.,

                                       and

                         FEDERATED PREMIUM FINANCE, INC.
                         -------------------------------

                         Dated as of September 30, 2001

================================================================================

<PAGE>

                     PREMIUM RECEIVABLE SERVICING AGREEMENT

         This PREMIUM RECEIVABLE SERVICING AGREEMENT ("Servicing Agreement") is
made as of September 30, 2001 by and among FPF, INC., a Colorado corporation
("FPF"), as servicer (the "Servicer").

                              PRELIMINARY STATEMENT

         WHEREAS, pursuant to the Master Sale and Assignment Agreement (the
"Sale Agreement") dated of even date herewith by and between FPF and FEDERATED
PREMIUM FINANCE, INC., a Florida corporation, FPF will acquire certain Premium
Receivables originated by the Originator, as seller, and FPF, as purchaser; and

         WHEREAS, the parties hereto desire to enter into this Servicing
Agreement to provide for, among other things, the management, administration,
servicing and collections with respect to the Premium Receivables for the
benefit of FPF and its assignees and designees and to perform certain duties as
described herein.

         NOW, THEREFORE, in consideration of the covenants and conditions
contained in this Servicing Agreement, the parties, intending to be legally
bound, hereby agree as follows:

                                    ARTICLE I

                                   DEFINITIONS

         DEFINED TERMS. Capitalized terms used and not otherwise defined in this
Servicing Agreement shall have the meaning set forth in the Sale Agreement. As
used in this Servicing Agreement, the following terms, unless the context
otherwise requires, have the following meanings (such meanings to be equally
applicable to the singular and plural forms of the terms defined):

         "Allowable Coverage Change" means, with respect to a Premium
Receivable, a modification thereof approved by the Servicer in the ordinary
course of its business and in accordance with the standard of care set forth in
Section 2.16 of this Servicing Agreement, which modification does not (a)
provide that the principal and interest on the Premium Receivable can be paid
over an aggregate period extending beyond the Term, (b) decrease the annual
percentage rate of interest payable on the Premium Receivable or (c) reduce the
principal amount of the Premium Receivable or release the Realization Provisions
with respect to such Premium Receivable.

         "Approved Expenses" means, with respect to a Person, all reasonable and
documented direct out-of-pocket expenses incurred by such Person including,
without limitation, professional services (such as attorneys, consultants and
accountants), postage, courier services, insurance, stationery, telephone,
facsimile transmission and travel, any of which are incurred specifically in the
performance of its duties under this Servicing Agreement, other than required
reporting duties thereunder and general office overhead.

         "Cancellation Standard" means, as of any date, the timely cancellation
by the Servicer of the underlying insurance policies relating to at least
ninety-seven percent (97%) of the Premium Receivables on which payments are
overdue by thirty (30) days or more.

         "Change of Control" shall have the meaning set forth in Section 2.11(c)
of this Servicing Agreement.

         "Collections Account" means the lock box account or other accounts
established by Servicer in the name of FPF or its designee into which the
Collections are to be deposited pursuant to Section 3.01 of this Servicing
Agreement.

         "Daily Servicer Report" means a report in the form of Exhibit A-1 to
this Servicing Agreement, to be delivered to FPF pursuant to Section 2.10(a)
hereof.

                                       2
<PAGE>

         "Event of Servicing Default" shall have the meaning set forth in
Section 5.01 of this Servicing Agreement.

         "Loan Documents" means with respect to each Premium Receivable listed
on each Schedule of Premium Receivables (a) the original Premium Finance
Agreement and any Endorsement Additions or other riders thereto, or if any
original has been lost or destroyed, certified copies thereof, each stamped with
an assignment stamp evidencing the Sale thereof to FPF, (b) originals of all
guarantees, if any, executed in connection with such Premium Receivable, (c) all
assumption, modification, consolidation or extension agreements, if any, and (d)
original or facsimile copy of the paid and cancelled check or draft payable to
the applicable Issuing Insurance Company evidencing payment of an amount equal
to or greater than the financed portion of the premium with respect to the
insurance policy issued by such Issuing Insurance Company relating to such
Premium Receivable; provided, however, that with the prior written consent of
FPF or its designees, each of the documents to be included in items (b) and (c)
above may be in the form of a file maintained on an optical scan system.

          "Reporting Period" shall mean the period beginning on the first day of
the calendar month and ending on the last day of such calendar month; provided,
that the initial Reporting Period begins on the Effective Date.

         "Scheduled Payment" shall mean the monthly payment relating to a
Premium Receivable required to be made by the Obligor thereunder in order to
fully amortize the principal balance of the Premium Receivable under the method,
term and rate stated in the Premium Finance Agreement or similar agreement
evidencing such Premium Receivable.

         "Servicing Fee" shall have the meaning specified in Section 2.08 of
this Servicing Agreement.

         "Successor Servicer" means that Person succeeding the Servicer under
and pursuant to Section 5.02 of this Servicing Agreement as may be designated by
FPF.

                                   ARTICLE II

               ADMINISTRATION AND SERVICING OF PREMIUM RECEIVABLES

         SECTION 2.01. APPOINTMENT AND DUTIES OF SERVICER.

                  (a) FPF hereby appoints the Originator as the Servicer, and
         the Originator shall remain as Servicer until the earlier to occur of
         (i) the payment in full of all amounts due to FPF under a termination
         of the Sale Agreement, (ii) written notice from FPF or its designees to
         the Servicer of termination of the Servicer hereunder due to the
         occurrence of a Default under the Sale Agreement, or (iii) written
         notice from FPF or its designees to the Servicer of termination of the
         Servicer hereunder due to the occurrence of an Event of Servicing
         Default. The Servicer shall perform the services required of it
         pursuant to the terms of this Servicing Agreement. In performing its
         duties hereunder, the Servicer shall have full power and authority to
         do or cause to be done any and all things in connection with such
         servicing and administration which it may deem necessary or desirable
         in accordance with the standard of care specified herein.

                  (b) The Servicer, in making collections of Premium Receivable
         payments pursuant to Section 2.02 hereof, shall be deemed to be holding
         such funds in trust on behalf of, and as agent for, FPF and its
         designees.

                  (c) FPF shall take all such lawful action in its discretion to
         compel or secure the performance and observance by the Servicer of its
         obligations to FPF under or in connection with this Servicing
         Agreement, in accordance with the terms hereof, and shall exercise any
         and all rights, remedies, powers and privileges lawfully available to
         FPF under or in connection with this Servicing Agreement.

                  (d) The Servicer may not delegate any or all of its duties or
         obligations hereunder, and the Servicer shall not otherwise permit any
         other Person to engage in any servicing, auditing, administrating,

                                       3
<PAGE>

         managing, collecting or other activities with respect to the Premium
         Receivables, unless approved in writing by FPF or its designees in each
         such Person's absolute discretion.

                  (e) The Servicer, upon execution of this Servicing Agreement,
         shall execute and deliver a power of attorney to FPF and its assigns in
         substantially the form of Exhibit C attached hereto.

         SECTION 2.02. COLLECTION OF PREMIUM RECEIVABLE PAYMENTS. All servicing
of the Premium Receivables will be performed on a "private label" basis using
the name of Originator on a premium finance software system approved by FPF in
writing. The Servicer shall be responsible for collection of payments called for
under the terms and provisions of the Premium Receivables as and when the same
shall become due. In addition, the Servicer shall be responsible for the
collection of late payments and enforcing the Realization Provisions with
respect thereto, and shall follow such collection procedures as are consistent
with the standard of care set forth in Section 2.16 hereof. In accordance with
the foregoing, the Servicer may grant extensions, rebates or adjustments on a
Premium Receivable, but shall not modify the original due dates, interest rate
or Scheduled Payments on the Premium Receivables except as would constitute an
Allowable Coverage Change. The Servicer may in its discretion waive any late
payment charge or any other fees that may be collected in the ordinary course of
servicing a Premium Receivable.

         SECTION 2.03. PAST-DUE PREMIUM RECEIVABLES; CANCELLED PREMIUM
RECEIVABLES.

                  (a) In the event an Obligor has not made a payment with regard
         to a Premium Receivable, the Servicer shall promptly, but in no event
         later than 10 days after such due date, (i) notify the defaulting
         Obligor that the Servicer shall request the Issuing Insurance Company
         to cancel the insurance coverage pertaining to the Premium Receivable
         if payment is not received within 10 days of such Obligor's receipt of
         such notice (the "Ten Day Notice"), (ii) upon failure to receive the
         payment due from Obligor following the period stated in the Ten Day
         Notice (plus such grace period, if any, as determined by the Servicer
         but in no event longer than the date 25 days from the original due
         date, except as may be required under applicable state law or
         regulation), request cancellation of the policy from the Issuing
         Insurance Company (such date stated in the cancellation request being
         the "Cancellation Date") and (iii) enforce on behalf of FPF and its
         designees, any and all Realization Provisions and other rights relating
         to the Premium Receivable.

                  (b) The Servicer may, but is not obligated to, submit a
         written request to the applicable Issuing Insurance Company (whereupon
         the Servicer shall retain a copy of such request and any response
         thereto) to reinstate the insurance policy underlying a Canceled
         Premium Receivable; provided, that, prior to such request for
         reinstatement, all past due payments have been received by, or credited
         to, the Servicer in the form of a money order, certified check, wire
         transfer or other means of immediately available funds. In the event
         the underlying insurance policy is reinstated by the Issuing Insurance
         Company, the Servicer shall make appropriate adjustments in its records
         and reports, and such Premium Receivable shall no longer be considered
         a Cancelled Premium Receivable.

                  (c) The Servicer shall, upon receipt of unearned premiums,
         unearned commissions, state guaranty funds, broker guarantee funds or
         funds from a cash collateral account with respect to the related
         Canceled Premium Receivable, remit such funds to the Collections
         Account pursuant to Section 3.02 hereof.

         SECTION 2.04. DEFAULTED PREMIUM RECEIVABLES. With respect to each
Defaulted Premium Receivable, the Servicer shall promptly provide in its Monthly
Servicer Report notice of such Defaulted Premium Receivable together with the
outstanding principal amount of such Defaulted Premium Receivable and the number
of days such Defaulted Premium Receivable is delinquent. The Servicer shall use
its best efforts, consistent with the standard of care set forth in Section 2.16
hereof, to collect funds on a Defaulted Premium Receivable from the Issuing
Insurance Company, insured or otherwise (any such collections from whatever
source being a "Defaulted Premium Receivable Recovery"). All Defaulted Premium
Receivable Recoveries shall be deposited by the Servicer into the Collections
Account by the close of business on the Business Day following receipt thereof.

                                       4
<PAGE>

         SECTION 2.05. MAINTENANCE OF INTERESTS IN PREMIUM RECEIVABLES. The
Servicer shall take, or cause to be taken, such steps as are necessary or
reasonably required by FPF or its assignees and designees to maintain perfection
of the respective interests of FPF and its assignees and designees in the
Premium Receivables and the other related Conveyed Property.

         SECTION 2.06.       COVENANTS OF SERVICER.

                  (a) The Servicer shall (i) not release any Realization
         Provisions granted by an Obligor in whole or in part except in the
         event of payment in full by the Obligor thereunder or upon
         reacquisition of the related Premium Receivable by the Originator, (ii)
         not impair the rights of FPF or its assignees in the Premium
         Receivables, (iii) not modify the Scheduled Payments due under a
         Premium Receivable except as expressly provided by Section 2.02 hereof,
         (iv) not Sell or pledge to any other Person, or grant, create, incur,
         assume, or suffer to exist any Lien on any Premium Receivable granted
         to FPF or any interest therein, (v) immediately notify FPF of the
         existence of any Lien on any Premium Receivable which was Sold pursuant
         to the Sale Agreement, (vi) defend the perfected ownership interest of
         FPF, its designees and assigns in, to, and under the Premium
         Receivables Sold to FPF under the Sale Agreement against all claims of
         third parties claiming through or under the Servicer, (vii) deposit
         into the Collections Account all payments received by the Servicer with
         respect to the Premium Receivables in accordance with Article III
         hereof, (viii) comply in all respects with the terms and conditions of
         the Sale Agreement and not amend, modify, or waive any provision of the
         Sale Agreement, (ix) promptly notify FPF of the occurrence of any Event
         of Servicing Default hereunder and (x) make at the sole cost and
         expense of the Servicer any filings, reports, notices or applications
         and seek any consents or authorizations from any and all government
         agencies, tribunals or authorities in accordance with the UCC and any
         state license or registration authority on behalf of FPF as may be
         necessary or advisable to create, maintain and protect a
         first-priority, perfected ownership interest of FPF in, to, and on the
         Premium Receivables Sold to it or as may be required by such government
         agencies, tribunals or authorities.

                  (b) The Servicer shall promptly make available to FPF or its
         designee all information relating to each Premium Receivable being
         serviced hereunder in form and manner consistent with the data
         processing system maintained by FPF or its designee and the Servicer
         shall respond to reasonable directions or requests for information that
         FPF or its designees might have with respect to the Premium
         Receivables.

         SECTION 2.07. REACQUISITION OF PREMIUM RECEIVABLES UPON BREACH OF
REPRESENTATIONS OR WARRANTIES. The Servicer shall inform FPF promptly, in
writing, upon the discovery of any breach by the Originator of any of the
representations, warranties or covenants contained in the Sale Agreement. Unless
the breach shall have been cured within five Business Days after such discovery,
the Servicer, if directed by FPF in accordance with Section 6 of the Sale
Agreement, shall use its best efforts to cause the Originator, within five days
following such cure period, to acquire any Premium Receivable that FPF has
deemed as not being an Eligible Premium Receivable in accordance with the terms
of Section 6 of the Sale Agreement. The Servicer shall remit all Repurchase
Price funds received with respect to the Repurchase Property to the Collections
Account within one Business Day of receipt thereof.

         SECTION 2.08.       PREMIUM RECEIVABLE SERVICING FEES.

                  (a) For so long as the Servicer is acting as Servicer pursuant
         to this Servicing Agreement, FPF shall pay or cause to be paid to the
         Servicer the following monthly Servicing Fee (the "Servicing Fee") for
         each Reporting Period payable during the following Reporting Period on
         the date specified in the Sale Agreement:

                            (i) an amount equal to 2.50% multiplied by the
                  average outstanding principal balance of all Premium
                  Receivables sold under the Sale Agreement per Premium Finance
                  Agreement boarded on the servicing data processing system
                  during such Reporting Period if Originator does not utilize
                  the FPF point of sale system to originate the Premium
                  Receivable.

                                       5
<PAGE>

                  (b) In the event the initial Servicer is replaced by a
         Successor Servicer (which may be FPF, Flatiron Credit Company, Inc. or
         any successor designated by FPF) pursuant to this Servicing Agreement,
         FPF shall pay or cause to be paid to any Successor Servicer a monthly
         servicing fee (the "Successor Servicing Fee"), which Successor
         Servicing Fee shall be, with respect to each Reporting Period, an
         amount equal to the sum of (i) the Servicing Fee times 150% plus (ii)
         all Approved Expenses. The Successor Servicing Fee with respect to a
         Reporting Period shall be paid to the Successor Servicer during the
         month immediately following such Reporting Period on the date as
         provided in the Sale Agreement.

         SECTION 2.09. SERVICER'S CERTIFICATE AS TO COMPLIANCE. Upon the written
request of FPF, the Servicer shall deliver to FPF, from time to time, an
officers' certificate, signed by an officer of Servicer (including the
President, any Vice President, and Assistant Vice President, the Secretary, the
Treasurer or any other officer customarily performing functions similar to those
performed by any of such designated officers (a "Responsible Officer")) and
dated effective as of the last day of the preceding month, stating, as to each
signer thereof, that (a) a review of the activities of the Servicer during the
preceding six-month period and of performance under this Servicing Agreement has
been made under each such Responsible Officer's supervision, and (b) to the best
of each such officer's knowledge, based on such review, the Servicer has
fulfilled all its obligations under this Servicing Agreement throughout such
six-month period, or, if there has been a default in the fulfillment of any such
obligation, specifying each such default known to each such Responsible Officer
and the nature and status thereof and remedies therefor being pursued.

         SECTION 2.10. REPORTING OBLIGATIONS; INSPECTION AND AUDIT RIGHTS.

                  (a) The Servicer shall make available to FPF or its designee
         information sufficient to allow FPF or its designee to generate the
         Daily Servicer Reports and the Monthly Servicer Reports regarding
         payments received from or on behalf of Obligors and deposited to the
         Collections Account representing Collections and other amounts with
         respect to Premium Receivables, including, without limitation,
         Defaulted Premium Receivable Recoveries and Endorsement Refunds. Such
         information shall be delivered (i) with respect to the Daily Servicer
         Report, on the Business Day following the date of such report, and (ii)
         with respect to the Monthly Servicer Report, on the second Business Day
         following the end of the immediately preceding Reporting Period.

                  (b) The Servicer shall promptly provide to FPF or its
         designees such reports, information and documentation as any such
         Person may reasonably request with respect to the Servicer, the
         Servicer's operations, the Premium Receivables and any other matters to
         which this Servicing Agreement relates, which such reports, information
         or documentation shall be provided to each such Person by facsimile
         copy, hard copy, electronic certified copy or any combination thereof
         as such Person may specify. In addition, the Servicer grants to FPF and
         any of its designees and hereby authorizes each of them the right to
         contact insurers relating to the Premium Receivables, the Obligors and
         insurance agents in order to verify, substantiate or reconcile reports,
         information and documentation provided by the Servicer to FPF or its
         designees pursuant to this Servicing Agreement.

                  (c) At all times during the term hereof, the Servicer shall
         afford FPF and its assignees, authorized agents and designees
         reasonable access during normal business hours to all of the Servicer's
         books of account, reports, records and computer files relating to the
         Premium Receivables and shall cause its personnel to assist in any
         examination of such records by any such Person, to make copies and
         extracts therefrom, and to discuss the Servicer's affairs, finances and
         accounts relating to the Premium Receivables with officers, employees
         and independent certified public accountants of each such Person, all
         at such reasonable times and as often as may be reasonably requested.

                  (d) Any such report, information and documentation provided by
         the Servicer to FPF or its designees pursuant to this Section 2.10
         shall be, to the knowledge of the Servicer, true and correct as of the
         time of transmittal and such transmittal (whether by facsimile, hard
         copy, electronic transmission or otherwise) shall constitute
         certification to such effect.

                                       6
<PAGE>

         SECTION 2.11.       FINANCIAL STATEMENTS AND OTHER REPORTS.

                  (a) REPORTING REQUIREMENTS. The Servicer shall deliver, in
         duplicate, to FPF and its designees:

                           (i) within 45 days after the end of each calendar
                  quarter of the Servicer (commencing with the quarter ending
                  September 30, 2001), an unaudited balance sheet and income
                  statement (prepared in accordance with GAAP without
                  accompanying notes) for the Servicer and its subsidiaries
                  covering the preceding quarter, in each case certified by a
                  principal financial officer of the Servicer to be true,
                  accurate and complete copies of such financial statements;

                           (ii) on the earlier of (A) fifteen days after
                  delivery by an Independent Public Accountant, if any, to the
                  Servicer or (B) March 15 of each year beginning [March 15,
                  2002], a balance sheet and income statement (prepared in
                  accordance with GAAP without accompanying notes) for the
                  Servicer and its subsidiaries covering such preceding fiscal
                  year prepared by the Servicer or its accountants, in each case
                  certified by a principal financial officer of the Servicer to
                  be true, accurate and complete copies of such financial
                  statements; and

                           (iii) such other information respecting the condition
                  or operations, financial or otherwise, of the Servicer or any
                  of its subsidiaries as FPF or its designees may from time to
                  time reasonably request.

                  (b) REPORT ON PROCEEDINGS. Promptly upon (but in no event more
         than three Business days following) the Servicer becoming aware of:

                           (i) any proposed or pending investigation of the
                  Servicer, any of its Affiliates or any of their respective
                  employees by any governmental authority or agency;

                           (ii) any court or administrative proceeding which
                  involves or may involve the possibility of materially and
                  adversely affecting the properties, business, prospects,
                  profits, management, financial position, results of operation
                  or general condition of the Servicer or any of its Affiliates;

                           (iii) an event or development (including, without
                  limitation, a change in any relevant law or regulation) which
                  could have a material adverse impact on the properties,
                  business, prospects, profits, management, financial position,
                  results of operations or general condition of the Servicer or
                  any of its Affiliates; or

                           (iv) any Event of Servicing Default hereunder or any
                  event which could likely become an Event of Servicing Default
                  hereunder;

         such information shall be provided by the Servicer to FPF and its
         designees, as applicable.

                  (c) CHANGE OF CONTROL. The Servicer shall provide prompt
         written notice to FPF and its designees, as applicable, upon the
         occurrence of any of the following events (each a "Change of Control"):
         (i) the Servicer ceases to be managed and controlled by the Person or
         Persons who manage and control the Servicer as of the Effective Date,
         (ii) any such Person which is a corporation, partnership, trust or
         other entity is dissolved or liquidated or merged with or into any
         other Person or for any period of more than 10 days ceases to exist in
         its present form and (where applicable) in good standing and duly
         qualified under the laws of the jurisdiction of its incorporation or
         formation and any jurisdiction in which such standing or qualification
         is necessary or advisable in connection with the conduct of business or
         (iii) the Servicer commences a Sale of all or substantially all of its
         assets, except, if the Originator is then acting as Servicer hereunder,
         for the Sale of the Conveyed Property by the Originator to FPF under
         the Sale Agreement.

                                       7
<PAGE>

         SECTION 2.12. COSTS AND EXPENSES. All Approved Expenses incurred by any
Successor Servicer and all direct extraordinary out-of-pocket expenses incurred
by FPF or its designees and assignees, as the case may be, in carrying out their
respective duties hereunder, including payments of all fees and expenses
incurred in connection with the enforcement of Premium Receivables (including
enforcement of Defaulted Premium Receivables), and realization under the
Realization Provisions, shall be reimbursed to such Successor Servicer (in
addition to the compensation and expenses, as applicable, to be paid to such
Successor Servicer pursuant to Section 2.08) and paid according to the
provisions of the Sale Agreement.

         SECTION 2.13. RESPONSIBILITY FOR OWNERSHIP INTERESTS. The Servicer
shall ensure that FPF has a valid, perfected first priority ownership interest
in, to and under each Premium Receivable by taking all necessary action under
applicable law and by assuring, among other things, that UCC-1 financing
statements and appropriate continuation statements are filed in each
jurisdiction in which filing is necessary for such perfection which financing
statements and continuation statements (a) contain a general description of the
Premium Finance Agreements, amounts payable thereunder, and after-acquired
collateral, and (b) direct subsequent creditors to sources containing more
detailed information, such as the Premium Finance Agreements themselves.

         SECTION 2.14. DOCUMENTS HELD BY FPF; DOCUMENTS HELD BY THE SERVICER;
INDICATION OF FPF OWNERSHIP.

                  (a) FPF or its designees shall be entitled to maintain
         physical possession of the Loan Documents in its files with respect to
         each Premium Receivable.

                  (b) The Servicer shall maintain the following documents in its
         files on behalf of FPF and its designees or have the following
         immediately accessible on computer screen with respect to each Premium
         Receivable:

                           (i) Copies of the Loan Documents;

                           (ii) Copies of all correspondence to the Obligor or
                  the Issuing Insurance Company, including any notification to
                  the Obligor and the Issuing Insurance Company of the Sale of
                  the Premium Receivable and delivery of possession of the
                  related Premium Finance Agreement to FPF or its designees, to
                  the extent required by applicable law to perfect an ownership
                  interest in the Premium Receivable and the related Conveyed
                  Property;

                           (iii)    Copies of all late notices to the Obligor;

                           (iv) Copies of cancellation requests to the Issuing
                  Insurance Company and, if applicable, the Obligor;

                           (v) Copies of reinstatement notices and related
                  correspondence;

                           (vi) Payment history and status of each Premium
                  Receivable; and

                           (vii) Such other documents as the Servicer may
                  customarily retain in connection with its normal servicing
                  activities under this Servicing Agreement in order to satisfy
                  its standard of care under Section 2.16.

                  (c) The Servicer shall keep satisfactory books and records
         pertaining to each Premium Receivable and shall make periodic reports
         in accordance with this Servicing Agreement. Such records may not be
         destroyed or otherwise disposed of, except as provided herein and as
         allowed by applicable laws, regulations or decrees.

                  (d) The Servicer shall maintain physical possession of the
         instruments and documents listed in Section 2.14(b) hereof, such other
         instruments or documents that modify or supplement the terms or

                                       8
<PAGE>

         conditions of any of the foregoing, and all other instruments and
         documents generated by or coming into the possession of the Servicer
         (including, without limitation, insurance premium receipts, ledger
         sheets, payment records, correspondence and current and historical
         computerized data files) that are required to document or service any
         Premium Receivable. Collectively, all of the documents described in
         paragraphs (b), (c) and (d) of this Section 2.14 with respect to a
         Premium Receivable are referred to as "Servicer Documents." All
         Servicer Documents shall remain the property of FPF and shall be held
         in trust by the Servicer for the benefit of FPF and its assignees and
         designees, to the extent of their interests therein.

         SECTION 2.15. MAINTENANCE OF COMPUTER SYSTEMS. The Servicer shall
provide computer backup in a format acceptable to FPF not less than weekly or
such other period as FPF may request. Such computer backup shall contain the
data necessary to enable FPF or its assignee or designees to service the Premium
Receivables in the event any such assignee or designee becomes the Successor
Servicer. The Servicer shall (a) provide FPF and its designee or assignees, as
applicable, with a copy of its computer software used with respect to the
servicing of the Premium Receivables including any licenses needed or required
with respect thereto, and (b) not substitute or materially alter its computer
software or systems or vendor or document forms, without the prior written
consent of FPF.

         SECTION 2.16. STANDARD OF CARE. In performing its duties and
obligations hereunder and in administering and enforcing the servicing relating
to the Premium Receivables pursuant to this Servicing Agreement, the Servicer
shall exercise that degree of skill and care consistent with the degree of skill
and care that the Servicer exercises with respect to similar loans owned and/or
serviced by it, and, shall apply in performing such duties and obligations,
those standards, policies and procedures consistent with the standards, policies
and procedures the Servicer applies with respect to similar loans owned or
serviced by it, and to the extent more exacting than the foregoing, shall act
prudently and in accordance with customary and usual servicing procedures for
other servicers of insurance premium finance receivables; provided, however,
that notwithstanding the foregoing, the Servicer shall not, except pursuant to a
judicial order from a court of competent jurisdiction, or as otherwise required
by applicable law or regulation, release or waive the right to collect the
unpaid balance on any Premium Receivable. In performing its duties and
obligations hereunder and in administering and enforcing the servicing relating
to the Premium Receivables pursuant to this Servicing Agreement, the Servicer
shall comply with all applicable federal and state laws and regulations, shall
maintain all state and federal licenses and franchises necessary for it to
perform its servicing responsibilities hereunder, shall not impair the rights of
FPF, its designees or assignees in the Conveyed Property, and shall act with
respect to the Premium Receivables as will, in the reasonable judgment of the
Servicer, maximize the amount to be received with respect thereto.

         SECTION 2.17. ENFORCEMENT.

                  (a) The Servicer is hereby authorized and empowered to sue to
         enforce or collect upon the Premium Receivables, in its own name, if
         possible, or as attorney-in-fact and agent for FPF or its designees. If
         the Servicer elects to commence a legal proceeding to enforce a Premium
         Receivable, the act of commencement shall be deemed to be an automatic
         assignment of the Premium Receivable by FPF to the Servicer solely for
         purposes of, and to the extent necessary for, collection only. If,
         however, in any enforcement suit or legal proceeding it is held that
         the Servicer may not enforce a Premium Receivable on the grounds that
         it is not a real party in interest or a holder entitled to enforce the
         Premium Receivable, FPF shall, at the Servicer's request and expense,
         take such steps as FPF deems necessary or appropriate to enforce the
         Premium Receivable, including bringing suit in its name or the name of
         FPF.

                  (b) The Servicer shall exercise any rights of recourse against
         third Persons that exist with respect to any Premium Receivable in
         accordance with the standard of care required by Section 2.16 hereof.

         SECTION 2.18. FIDELITY BOND OR ERRORS AND OMISSIONS INSURANCE. The
Servicer shall maintain, at its own expense, a blanket fidelity bond or an
errors and omissions insurance policy, in form and content acceptable to FPF, in
an amount not less than $500,000 and naming FPF as an additional loss payee or
beneficiary of each such insurance policy or fidelity bond. The Servicer shall
be deemed to have complied with this provision if one of its respective
Affiliates has such fidelity bond or errors and omissions policy coverage and,
by the terms of such fidelity bond or errors and omissions policy, the coverage
afforded thereunder extends to the Servicer. Any such fidelity

                                       9
<PAGE>

bond or insurance policy shall not be cancelled or modified without ten days'
prior written notice to FPF. Evidence of each such insurance policy or fidelity
bond shall be delivered to FPF by the Servicer in conjunction with the
Responsible Officers' certificate required to be delivered pursuant to Section
2.09 hereof.

                                   ARTICLE III

                              ACCOUNTS; COLLECTIONS

         SECTION 3.01. ACCOUNTS. The Servicer shall establish in the name of FPF
or its designee the Collections Account with a Collections Account Depository
referred to in Section 3.03 hereof. All Obligors, Issuing Insurance Companies
and Originator shall be directed to cause all Collections to be remitted to the
Collections Account so established. All Collections effectuated by
pre-authorized debits of Obligor accounts shall be deposited directly into the
Collections Account. The Servicer shall not alter the instructions to the
Obligors, Originator, the Issuing Insurance Company or any other party regarding
payments to be made to the Collections Account without the prior written
approval of FPF or its designee. All amounts in the Collections Account shall be
retrieved on each Business Day by FPF or its designee.

         SECTION 3.02. COLLECTIONS. The Servicer shall segregate all Collections
on the Premium Receivables from its general funds, shall not use such funds for
its benefit and shall hold such funds in trust for the benefit of FPF and its
designee. The Servicer shall remit to the Collections Account and to no other
account, on a daily basis, but in no event later than the close of business on
the Business Day following the day of receipt thereof, all payments received on
or in connection with the Conveyed Property by the Servicer by or on behalf of
the Obligors, the Issuing Insurance Companies or any other party, including,
without limitation, Collections, Endorsement Refunds, broker guarantee funds or
funds from a cash collateral account or Defaulted Premium Receivable Recoveries,
all as collected, in respect of a Premium Receivable being serviced by the
Servicer. The Servicer shall also deposit in the Collections Account the
aggregate Repurchase Price with respect to any Repurchase Property. All such
deposits shall be separately shown in the Daily Servicer Reports.

         SECTION 3.03. COLLECTIONS ACCOUNT DEPOSITORY. FPF has appointed City
National, Ft. Lauderdale, Florida as the initial Collections Account Depository
(the "Collections Account Depository") hereunder. The Collections Account
Depository shall transfer funds from the Collections Account as instructed by
the FPF or its designee.

                                   ARTICLE IV

                         REPRESENTATIONS AND WARRANTIES

         SECTION 4.01. REPRESENTATIONS AND WARRANTIES OF THE SERVICER. The
Servicer hereby represents, warrants and covenants to FPF that as of the date of
this Servicing Agreement and, for so long as the Servicer shall continue to act
as Servicer hereunder, that the representations, warranties and covenants
contained in Sections 1 and 2 of Exhibit B hereto are true and correct and shall
remain true and correct.

         SECTION 4.02. REPRESENTATIONS AND WARRANTIES OF FPF. As of the date of
the Servicing Agreement FPF represents, warrants and covenants to Servicer each
of the matters referred to in Section 2 of Exhibit B hereto.

                                    ARTICLE V

                         DEFAULT, REMEDIES AND INDEMNITY

         SECTION 5.01. EVENTS OF SERVICING DEFAULT. Any of the following acts or
occurrences shall constitute an Event of Servicing Default under this Servicing
Agreement:

                  (a) any failure by the Servicer to make any payment, transfer
         or deposit to the Collections Account within one Business Day after
         receipt;

                                       10
<PAGE>

                  (b) any failure by the Servicer to provide any notices to FPF
         pursuant to this Servicing Agreement relating to the transfer or
         calculation of funds which has not been cured within two Business Days
         after the date of receipt of notice of such failure;

                  (c) any failure by the Servicer to request cancellation of the
         policy from the Issuing Insurance Company pursuant to Section 2.03,
         unless otherwise approved by FPF or its designee in writing.

                  (d) failure on the part of the Servicer to either duly to
         observe or perform any other covenants or agreements of the Servicer
         set forth in this Servicing Agreement; or the Servicer shall attempt to
         assign any of its duties hereunder;

                  (e) any representation, warranty or certification made by the
         Servicer (or any officer of the Servicer) in this Servicing Agreement,
         or any certificate delivered pursuant to this Servicing Agreement,
         shall prove to have been incorrect when made, which could have an
         adverse effect on FPF and which continues to be incorrect in any
         material respect;

                  (f) the Servicer shall consent to the appointment of a
         conservator or receiver or liquidator in any insolvency, readjustment
         of debt, marshalling of assets and liabilities or similar proceedings
         of or relating to the Servicer, or the Servicer shall admit in writing
         its inability to pay its debts generally as they become due, file a
         petition or commence an action to take advantage of any applicable
         insolvency or reorganization statute, make any assignment for the
         benefit of its creditors or voluntarily suspend payment of its
         obligations;

                  (g) any Change in Control unless the same is approved in
         writing by FPF, in its absolute discretion;

                  (h) an event or development shall occur which is expected by
         FPF (in its sole discretion) to have a material adverse impact on the
         ability of the Servicer to perform its obligations under this Servicing
         Agreement;

                  (i) the Servicer shall not be in compliance with the
         Cancellation Standard.

         SECTION 5.02. REMEDIES.

                  (a) If an Event of Servicing Default shall have occurred and
         then be continuing, then by notice given in writing to the Servicer
         (the "Terminated Party") (together with any termination notice
         described in Section 2.01(a) hereof, (a "Termination Notice"), all of
         the rights and obligations of the Terminated Party, shall be terminated
         upon the later of (i) the date, if any, specified in the Termination
         Notice or (ii) upon receipt of the Termination Notice.

                  (b) After receipt by the Terminated Party of a Termination
         Notice, all authority and power of the Terminated Party under this
         Servicing Agreement shall pass to and be vested in a Successor
         Servicer; and, without limitation, FPF or its designees are hereby
         authorized and empowered to execute and deliver, on behalf of the
         Terminated Party, as attorney-in-fact, authorized agent or otherwise,
         all documents and other instruments upon the failure of the Terminated
         Party to execute or deliver such documents or instruments, and to do
         and accomplish all other acts or things necessary or appropriate to
         effect the purposes of such transfer of servicing rights. The Servicer
         hereby agrees to cooperate with FPF, its designees and such Successor
         Servicer in effecting the termination of the responsibilities and
         rights of the Terminated Party to conduct servicing under this
         Servicing Agreement, including, without limitation, the transfer to
         such Successor Servicer of all authority of the Terminated Party to
         service the Premium Receivables provided for under this Servicing
         Agreement, including, without limitation, the right to receive all
         collections, all authority over all collections which shall on the date
         of transfer be held by the Terminated Party for deposit or which have
         been deposited by the Terminated Party in the Collections Account or
         which shall thereafter be received with respect to the Premium
         Receivables, and in assisting the

                                       11
<PAGE>

         Successor Servicer and in enforcing all rights to Realization
         Provisions. The Terminated Party shall immediately transfer its
         electronic records relating to the Premium Receivables to the Successor
         Servicer in such electronic form as the Successor Servicer may request.
         The Terminated Party shall immediately relinquish all rights in, to and
         under the Loan Documents and the Servicing Documents and shall
         immediately transfer to the Successor Servicer all Loan Documents and
         Servicing Documents with respect to the Premium Receivables in the
         manner and at such times as the Successor Servicer shall request.
         Immediately upon receipt of a Termination Notice, the Terminated Party
         shall not amend, alter or modify any of the Loan Documents or Servicing
         Documents without FPF's prior written consent. The Terminated Party
         shall give notices of the transfer of servicing to the Obligors,
         Issuing Insurance Companies and state guaranty funds, all in the manner
         and at such times as the Successor Servicer shall request.

                  (c) On and after the receipt by the Terminated Party of a
         Termination Notice pursuant to this Section 5.02, the Terminated Party
         shall continue to perform all servicing functions under this Servicing
         Agreement until the date specified in the Termination Notice or
         otherwise specified by FPF in writing.

                  (d) Upon its appointment, the Successor Servicer shall be the
         successor in all respects to the Terminated Party, with respect to
         servicing functions under this Servicing Agreement.

                  (e) In connection with such appointment and assumption, FPF
         may make such arrangements for the compensation of itself and the
         Successor Servicer out of collections of Premium Receivable payments,
         as it and such Successor Servicer shall agree.

                  (f) All authority and power granted to the Servicer or the
         Successor Servicer under this Servicing Agreement shall automatically
         cease and terminate upon payment in full of all Obligations and
         termination of the Sale Agreement, and shall pass to and be vested in
         FPF or its designee.

         SECTION 5.03. INDEMNITY BY THE SERVICER. The Servicer shall indemnify
and hold FPF, its Affiliates, its designees and assigns and each of their
respective officers, directors, employees and agents and any Person holding an
interest in the Conveyed Property or acting as a trustee therefor (collectively,
the "Indemnified Parties") harmless against any liability, loss, damage,
penalty, fine, forfeiture, legal or accounting fees, court reporting expenses,
expert witness fees, and all other fees or costs of any kind, judgments or
expenses, resulting from or arising out of a breach of this Servicing Agreement
by the Servicer; provided, however, the Servicer shall not be liable to the
Indemnified Parties by reason of any act, contract or transaction performed in
good faith by the Servicer pursuant to this Servicing Agreement in accordance
with the standard of care under Section 2.16 nor shall it be liable for any loss
resulting therefrom, so long as such act, contract or transaction shall, at the
time at which it was performed or entered into, have been reasonable and prudent
under the circumstances and shall have conformed to the express provisions of
this Servicing Agreement. The rights of the Indemnified Parties to indemnity,
reimbursement or limitation on its liability pursuant to this Section 5.03 shall
survive any Event of Servicing Default or termination of the Servicer pursuant
to the provisions hereof and the transfer of the rights, duties and obligations
of the Servicer to a Successor Servicer.

         SECTION 5.04. WAIVER OF EVENTS OF SERVICING DEFAULT. FPF may waive any
Event of Servicing Default by the Servicer in the performance of its obligations
hereunder and its consequences. Upon any such waiver of an event of Servicing
Default, such default shall cease to exist, and any default arising therefrom
shall be deemed to have been remedied for every purpose of this Servicing
Agreement. No such waiver shall extent to any subsequent or other default or
impair any right consequent thereon except to the extent expressly so waived.

         SECTION 5.05. SURVIVAL. The agreements in this Article V shall survive
the termination of this Servicing Agreement and the payment in full of all sums
and obligations owed to FPF under the Sale Agreement.

                                       12
<PAGE>

                                   ARTICLE VI

                       TERMINATION OF SERVICING AGREEMENT

         SECTION 6.01. TERM. Unless terminated in accordance with the provisions
of Section 2.01(a), this Servicing Agreement shall remain in effect until all
obligations due to FPF pursuant to the Sale Agreement have been paid in full.

                                   ARTICLE VII

                            MISCELLANEOUS PROVISIONS

         SECTION 7.01. NO OFFSET. Prior to the termination of this Servicing
Agreement, the obligations of the Servicer under this Servicing Agreement shall
not be subject to any defense, counterclaim or right of offset which the
Servicer may have against FPF or its assignees or designees, whether in respect
of this Servicing Agreement or the Sale Agreement, any Premium Receivable or
otherwise.

         SECTION 7.02. POWERS OF ATTORNEY. FPF shall, from time to time, provide
to the employees of the Servicer with limited, revocable powers of attorney or
other such written authorizations as may be appropriate to enable the Servicer
to perform its obligations under this Servicing Agreement; provided, however,
that FPF shall not be required to provide such powers with respect to any matter
for which FPF does not have authority to perform itself.

         SECTION 7.03. ASSIGNMENTS; THIRD PARTY BENEFICIARIES. This Servicing
Agreement may be assigned by FPF and shall inure to the benefit of FPF's
assignees and designees (all of whom shall be deemed third party beneficiaries
hereunder). Without limiting the generality of the foregoing, all
representations, covenants and agreements in this Servicing Agreement which
expressly confer rights upon FPF shall be for the benefit of and run directly to
each assignee and designee, and each such assignee and designee shall be
entitled to rely on and enforce such representations, covenants and agreements
to the same extent as if it were a party hereto. The Servicer shall not assign
its rights or obligations under this Servicing Agreement without the written
approval and consent of FPF. With such written approval and consent of FPF
contemplated hereby, this Servicing Agreement shall be binding upon the parties
hereto, and their respective successors, legal representatives and assigns; no
other Person shall have or be construed to have any equitable right, remedy or
claim under or in respect of or by virtue of this Servicing Agreement or any
provision contained herein. There shall be no third party beneficiaries of
Servicer without the written approval and consent of FPF.

         SECTION 7.04. AMENDMENT. This Servicing Agreement may be amended from
time to time by a written amendment duly executed and delivered by each of the
parties hereto and no waiver of any of the terms hereof shall be effective
unless it is in writing and signed by the party or parties whose rights are
being waived.

         SECTION 7.05. WAIVERS. No failure or delay on the part of FPF or any of
its assignees or designees in exercising any power, right or remedy under this
Servicing Agreement shall operate as a waiver thereof, nor shall any single or
partial exercise of any such power, right or remedy preclude any other or
further exercise thereof or the exercise of any other power, right or remedy. No
such waiver shall extend to any subsequent or other default or impair any rights
consequent thereon, except to the extent expressly so waived. Each of the
rights, powers and remedies described in this Servicing Agreement is cumulative
and not exclusive of, and shall not prejudice, any other right, power or remedy
provided in this Servicing Agreement, the Sale Agreement or by law. Each such
right, power and remedy may be exercised from time to time as deemed necessary
by FPF or any of its assignees or designees, as applicable, and in such order
and manner as such applicable party may determine. The parties hereto hereby
acknowledge and agree that with respect to a violation or breach by the Servicer
of any representation, warranty, covenant or other term or provision of this
Servicing Agreement, it shall be the Servicer's obligation to prepare and obtain
a written waiver for such breaches or violations from FPF or its designee, as
applicable. FPF or its designee, as applicable, may grant or deny any such
requested waiver in its sole and absolute discretion. At no time may the

                                       13
<PAGE>

parties hereto infer a course of dealing among the parties that would negate the
requirement to obtain a written waiver from FPF or its designee, as applicable.

         SECTION 7.06. NOTICES. All notices, requests, consents and other
communications hereunder shall be in writing and shall be delivered personally
or mailed by first-class registered or certified mail, postage prepaid, or by
telephonic facsimile transmission, electronic mail and overnight delivery
service, postage prepaid, to the parties to this Servicing Agreement; provided,
that notices shall be effective upon receipt, and in any case addressed to the
Servicer as provided in the introductory paragraph of this Servicing Agreement
and to FPF at 600 Seventeenth Street, Suite 1900S, Denver, Colorado 80202,
Attention: Robert A. Pinkerton.

         SECTION 7.07. GOVERNING LAW. THIS SERVICING AGREEMENT SHALL BE GOVERNED
BY AND CONSTRUED IN ACCORDANCE WITH THE SUBSTANTIVE LAWS OF THE STATE OF
COLORADO WITHOUT REGARD TO CONFLICT OF LAW PROVISIONS.

         SECTION 7.08. JURISDICTION. THE PARTIES HERETO HEREBY IRREVOCABLY
SUBMIT TO THE NON-EXCLUSIVE JURISDICTION OF THE COURTS OF THE STATE OF COLORADO
AND THE UNITED STATES DISTRICT COURT OF COLORADO IN ANY ACTION OR PROCEEDING
ARISING OUT OF OR RELATING TO THIS SERVICING AGREEMENT AND THE PARTIES HEREBY
IRREVOCABLY AGREE THAT ALL CLAIMS IN RESPECT OF SUCH ACTION OR PROCEEDING MAY BE
HEARD AND DETERMINED IN SUCH COURTS. THE PARTIES HEREBY IRREVOCABLY WAIVE, TO
THE FULLEST EXTENT IT MAY EFFECTIVELY DO SO, THE DEFENSE OF AN INCONVENIENT
FORUM TO THE MAINTENANCE OF SUCH ACTION OR PROCEEDING AND IRREVOCABLY CONSENT TO
THE SERVICE OF ANY SUMMONS AND COMPLAINT AND ANY OTHER PROCESS BY THE MAILING OF
COPIES OF SUCH PROCESS TO THEM AT THEIR RESPECTIVE ADDRESSES AS SPECIFIED IN
SECTION 7.06. THE PARTIES HEREBY AGREE THAT A FINAL JUDGMENT IN ANY SUCH ACTION
OR PROCEEDING SHALL BE CONCLUSIVE AND MAY BE ENFORCED IN OTHER JURISDICTIONS BY
SUIT ON THE JUDGMENT OR IN ANY OTHER MANNER PROVIDED BY LAW. NOTHING IN THIS
SECTION 7.08 SHALL AFFECT THE RIGHT OF FPF TO SERVE LEGAL PROCESS IN ANY OTHER
MANNER PERMITTED BY LAW OR PRECLUDE THE ENFORCEMENT OF ANY JUDGMENT OR ORDER
OBTAINED IN SUCH FORUM OR THE TAKING OF ANY ACTION UNDER THIS SERVICING
AGREEMENT TO ENFORCE SAME IN ANY OTHER APPROPRIATE FORUM OR JURISDICTION.

         SECTION 7.09. WAIVER OF JURY TRIAL. EACH OF THE PARTIES HEREBY
IRREVOCABLY WAIVES ALL RIGHT TO A TRIAL BY JURY IN ANY ACTION, PROCEEDING OR
COUNTERCLAIM ARISING OUT OF OR RELATING TO THIS SERVICING AGREEMENT.

         SECTION 7.10. SEVERABILITY OF PROVISIONS. Any part, provision,
agreement, representation, warranty or covenant of this Servicing Agreement
which is prohibited or unenforceable or is held to be void or unenforceable in
any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of
such prohibition or unenforceability without invalidating the remaining
provisions hereof, and any such prohibition or unenforceability in any
jurisdiction shall not invalidate or render unenforceable such provision in any
other jurisdiction. To the extent permitted by applicable law, the parties waive
any provision of law which prohibits or renders void or unenforceable any
provision hereof. If the invalidity of any part, provision, agreement,
representation, warranty or covenant of this Servicing Agreement shall deprive
any party of the economic benefit intended to be conferred by this Servicing
Agreement, the parties shall negotiate in good faith to develop a structure the
economic effect of which is as nearly as possible the same as the economic
effect of the transactions contemplated hereunder without regard to such
invalidity.

         SECTION 7.11. COUNTERPARTS. For the purpose of facilitating the
execution of this Servicing Agreement and for other purposes, this Servicing
Agreement may be executed simultaneously in any number of counterparts, each of
which shall be deemed to be an original, and together shall constitute and be
one and the same instrument.

                                       14
<PAGE>

         SECTION 7.12. CAPTIONS. The article, paragraph and other headings
contained in this Servicing Agreement are inserted for convenience only and
shall not in any way affect the meaning or construction of any provision of this
Servicing Agreement.

         SECTION 7.13. LEGAL HOLIDAYS. In the case where the date on which any
action required to be taken, document required to be delivered or payment
required to be made is not a Business Day in New York, New York or Denver,
Colorado, such action, delivery or payment need not be made on that date, but
may be made on the next succeeding Business Day.

         SECTION 7.14. ADVICE FROM INDEPENDENT COUNSEL. The parties understand
that this Servicing Agreement is a legally binding agreement that may affect
such party's rights. Each party represents to the others that it has received
legal advice from counsel of its choice regarding the meaning and legal
significance of this Servicing Agreement and that it is satisfied with its legal
counsel and the advice received from it.

         SECTION 7.15. JUDICIAL INTERPRETATION. Should any provision of this
Servicing Agreement require judicial interpretation, it is agreed that a court
interpreting or construing the same shall not apply a presumption that the terms
hereof shall be more strictly construed against any Person by reason of the rule
of construction that a document is to be construed more strictly against the
Person who itself or through its agent prepared the same, it being agreed that
each party has participated in the preparation of this Servicing Agreement.

                            (SIGNATURE PAGE FOLLOWS)

                                       15
<PAGE>

         IN WITNESS WHEREOF, the parties hereto have caused this Servicing
Agreement to be duly executed by their respective authorized officers as of the
date first written above.

                                              FPF, INC.

                                     By    /s/ Bruce I. Lundy
                                           -------------------------------------
                                     Name      Bruce I. Lundy
                                           -------------------------------------
                                     Title     President
                                           -------------------------------------

                                              FEDERATED PREMIUM FINANCE, INC.

                                     By    /s/  Stephen C. Young
                                           -------------------------------------
                                     Name       Stephen C. Young
                                           -------------------------------------
                                     Title      President
                                           -------------------------------------

                                       16
<PAGE>

                                   EXHIBIT A-1

                              DAILY SERVICER REPORT

Date of Report
                ----------------------------
Date of Deposit
                ----------------------------

         --------------- ---------------- ------------------------ -------------
          GROSS DEPOSITS   NSF DELETIONS   OTHER NETTING INTEREST   NET DEPOSIT
1.
         --------------- ---------------- ------------------------ -------------

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

Specify Other Netting Items:

         The undersigned [Name of Servicer] (the "Servicer") hereby certifies
that this report complies with the requirements of, and is being delivered
pursuant to, Section 2.10(a) of the Premium Receivable Servicing Agreement (the
"Servicing Agreement") dated as of September ___, 2001 by and among FPF and the
Servicer. Capitalized terms used and not otherwise defined herein shall have the
meaning ascribed to such terms in the Servicing Agreement.

Dated:                                     FEDERATED PREMIUM FINANCE, INC.
       -----------------------------

                                           By
                                              ----------------------------------
                                           Name
                                                --------------------------------
                                           Title
                                                 -------------------------------

<PAGE>

                                    EXHIBIT B

                         REPRESENTATIONS AND WARRANTIES

         SECTION 1. REPRESENTATIONS AND WARRANTIES OF THE SERVICER WITH RESPECT
TO SECTION 4.01 OF THE PREMIUM RECEIVABLE SERVICING AGREEMENT.

                  (a) POWER AND AUTHORITY. The Servicer has the power and
         authority to execute and deliver the Premium Receivable Servicing
         Agreement and to carry out the terms thereof; there are no injunctions,
         writs, restraining orders or any other order of any nature which
         adversely affects the Servicer's performance of the Premium Receivable
         Servicing Agreement or any transactions contemplated thereby; and no
         consent, approval or authorization which has not been obtained is
         required for the consummation by the Servicer of the transactions
         contemplated by the Premium Receivable Servicing Agreement.

                  (b) NO VIOLATION. The consummation of the transactions
         contemplated by the Premium Receivable Servicing Agreement and the
         fulfillment of the terms thereof do not conflict with, result in any
         breach of any of the terms and provisions of, nor constitute (with or
         without notice or lapse of time) a default under, the certificate of
         incorporation or bylaws of the Servicer, or any indenture, agreement or
         other instrument to which the Servicer is a party or by which it or its
         properties is bound; nor result in the creation or imposition of any
         Lien upon any of its properties pursuant to the terms of any such
         indenture, agreement or other instrument; nor violate any applicable
         laws, rules, regulations or orders regarding the conduct of the
         Servicer's business or the ownership of its properties; nor violate any
         law or any order, rule or regulation applicable to the Servicer of any
         court or of any federal or state regulatory body, administrative
         agency, or other governmental instrumentality having jurisdiction over
         the Originator or its properties except, in each case, for such
         violations, conflicts, breaches, Liens and defaults which could not, in
         the reasonable judgment of the Servicer, have an adverse effect on the
         condition (financial or otherwise) of the Servicer, any Premium
         Receivable or the Servicer's obligations under the Premium Receivable
         Servicing Agreement.

                  (c) ABILITY TO PERFORM. There has been no impairment in the
         ability of Servicer to perform its obligations under the Premium
         Receivable Servicing Agreement.

                  (d) FINANCIAL STATEMENTS. The Servicer's financial statements
         dated as of [ ], and [ ], as delivered to FPF and the financial
         statements of the Servicer to be delivered pursuant to Section 2.11 of
         this Servicing Agreement, present or will present fairly, in all
         material respects, the information presented therein, and no material
         adverse change has occurred in the Servicer's financial status since
         the date thereof.

                  (e) NO MATERIAL LIABILITIES. The Servicer does not have
         material liabilities or obligations other than those disclosed in the
         financial statements referred to in subparagraph (d) above or for which
         adequate reserves are reflected in such financials.

                  (f) NO MATERIAL MISSTATEMENTS OR OMISSIONS. No information,
         certificate of an officer, statement furnished in writing or report
         delivered to FPF by the Servicer contains any untrue statement of a
         material fact or omits a material fact necessary to make such
         information, certificate, statement or report not misleading; provided,
         that the Servicer makes no representation or warranty with respect to
         any information incorporated into or forming the basis of any officer's
         certificate, information, statement or report provided by the Servicer
         that is provided to the Servicer by any other Person.

                  (g) CAPABILITY TO PERFORM. The Servicer has the knowledge, the
         experience and the systems, financial and operational capacity
         available to timely perform each of its obligations under the Premium
         Receivable Servicing Agreement.

                                      B-2

<PAGE>

                  (h) OTHER AGREEMENTS. The Servicer is not a party to any
         indenture, loan or credit agreement, lease or other instrument or
         agreement which is likely to have a material adverse effect on the
         business, properties, assets, operations or operation, financial or
         otherwise, of the Servicer or the ability of the Servicer to perform
         its obligations under this Servicing Agreement.

                  (i) NO MATERIAL ADVERSE CHANGE. No material adverse change has
         occurred in the business, properties, operating results, prospects,
         assets, operations or condition, financial or otherwise, of the
         Servicer from the Closing Date or the immediately preceding Acquisition
         Date, as the case may be.

         SECTION 2. REPRESENTATIONS AND WARRANTIES WITH REGARD TO SECTION 4.01
AND 4.02 OF THE PREMIUM RECEIVABLE SERVICING AGREEMENT. (References in this
Section 2 to "such Person" refer to the Person making the representation and
warranty pursuant to the Premium Receivable Servicing Agreement.)

                  (a) ORGANIZATION, ETC. Such Person is duly organized and is
         validly existing as a corporation or limited liability company, as the
         case may be, in good standing under the laws of the state of its
         organization with full power and authority to execute and deliver the
         Premium Receivable Servicing Agreement and to perform the terms and
         provisions thereof.

                  (b) DUE QUALIFICATION. Such Person is duly qualified to do
         business as a foreign business entity in good standing, and has
         obtained all required licenses and approvals, if any, in all
         jurisdictions in which the ownership or lease of property or the
         conduct of its business requires such qualifications except those
         jurisdictions in which failure to be so qualified would not have an
         adverse effect on the business or operations of such Person or any
         Premium Receivable.

                  (c) DUE AUTHORIZATION. The execution, delivery and performance
         by such Person of the Premium Receivable Servicing Agreement have been
         duly authorized by all necessary action of such Person, do not require
         any approval or consent of any governmental agency or authority, do not
         and will not conflict with any provision of its constituent documents,
         and do not and will not conflict with or result in a breach which would
         constitute (with or without notice or lapse of time) a default under
         any agreement binding upon or applicable to it or its property, or any
         law or governmental regulation or court decree applicable to it or its
         property.

                  (d) NO LITIGATION. No litigation or administrative proceeding
         of or before any court, tribunal or governmental body is presently
         pending, or threatened, against such Person or its properties, which,
         if adversely determined could, in the reasonable opinion of such
         Person, have an adverse effect on the transactions contemplated by the
         Premium Receivable Servicing Agreement or on such Person's ability to
         perform any of its obligations thereunder.

                  (e) ENFORCEABILITY. The Premium Receivable Servicing Agreement
         constitutes the valid, legal and binding obligation of such Person,
         enforceable against such Person in accordance with the terms thereof,
         subject to applicable bankruptcy, insolvency, reorganization,
         moratorium and other laws affecting the enforcement of creditor's
         rights generally and to general principles of equity, regardless of
         whether such enforcement is considered in a proceeding in equity or at
         law.

         SECTION 3. SURVIVAL OF REPRESENTATIONS AND WARRANTIES. The
representations and warranties set forth in this Exhibit B shall survive the
date of the Premium Receivable Servicing Agreement. Upon discovery by FPF or its
designee of a breach of any of the foregoing representations and warranties, the
party discovering such breach shall give prompt written notice to the other
parties thereto; provided, however, that failure to give such notice shall not
affect the rights of such other parties with respect to such breach.

                                      B-3

<PAGE>

                                    EXHIBIT C

                                POWER OF ATTORNEY

         FEDERATED PREMIUM FINANCE, INC. a corporation organized and existing
under the laws of the State of Florida (the "Servicer"), hereby grants to FPF,
INC. ("FPF") pursuant to that certain Premium Receivable Servicing Agreement,
dated as of September 30, 2001, among the Servicer and FPF, Inc., as the same
may be amended or otherwise modified from time to time (the "Servicing
Agreement"), an irrevocable power of attorney, with full power of substitution,
coupled with an interest, to take any and all actions at the option of FPF or
its assigns at any time after the occurrence and during the continuance of any
Event of Servicing Default, in the name of the Servicer or its assigns, to
execute such documents or instruments and to do and accomplish all other acts or
things necessary or appropriate to effect the transfer of servicing rights under
the Servicing Agreement.

         Capitalized terms used and not otherwise defined herein shall have the
meaning ascribed to such terms in the Servicing Agreement.

         IN WITNESS WHEREOF, the undersigned a duly authorized officer of
FEDERATED PREMIUM FINANCE, INC. hereunto sets his hand this 30 day of September,
2001.

FEDERA

                                    FEDERATED PREMIUM FINANCE, INC.

                                    By       /s/  Stephen C. Young
                                         ---------------------------------------
                                    Name        Stephen C. Young
                                         ---------------------------------------
                                    Title          President
                                         ---------------------------------------

<PAGE>

STATE OF   FL     )
                  )       ss:
COUNTY OF BROWARD )

         BE IT REMEMBERED, that on this 30 day of September, 2001 before me the
undersigned, a Notary Public in and for the County and State aforesaid, came
Stephen Young, a Officer of FEDERATED PREMIUM FINANCE, INC., a corporation duly
organized, incorporated and existing under and by virtue of the laws of Florida,
who is personally known to me to be such officer, and who is personally known to
me to be the same person who executed, as such officer, the within instrument on
behalf of said corporation, and such person duly acknowledged the execution of
the same to be the act and deed of said corporation.

         IN WITNESS WHEREOF, I have hereunto set my hand and affixed my official
seal, the day and year last above written.

                                           /s/  Joseph V. Aloisio
                                           -------------------------------------
                                                Notary Public     Sept. 30, 2001

My commission expires:

[SEAL]    Joseph V. Aloisio
-------------------------------------------
    Commission #CC902275
    Expires Feb. 28, 2004
    Bonded Thru
    Atlantic Bonding Co., Inc.

<PAGE>

                                TABLE OF CONTENTS

                                    Article I

DEFINITIONS....................................................................2

                                   Article II

               ADMINISTRATION AND SERVICING OF PREMIUM RECEIVABLES

Section 2.01.     Appointment and Duties of Servicer...........................3
Section 2.02.     Collection of Premium Receivable Payments....................4
Section 2.03.     Past-Due Premium Receivables; Cancelled Premium Receivables..4
Section 2.04.     Defaulted Premium Receivables................................5
Section 2.05.     Maintenance of Interests in Premium Receivables..............5
Section 2.06.     Covenants of Servicer........................................5
Section 2.07.     Reacquisition of Premium Receivables Upon Breach of
                  Representations or Warranties..............5
Section 2.08.     Premium Receivable Servicing Fees............................6
Section 2.09.     Servicer's Certificate as to Compliance......................6
Section 2.10.     Reporting Obligations; Inspection and Audit Rights...........6
Section 2.11.     Financial Statements and Other Reports.......................7
Section 2.12.     Costs and Expenses...........................................8
Section 2.13.     Responsibility for Ownership Interests.......................8
Section 2.14.     Documents Held by FPF; Documents Held by the Servicer;
                  Indication of FPF Ownership.............8
Section 2.15.     Maintenance of Computer Systems..............................9
Section 2.16.     Standard of Care.............................................9
Section 2.17.     Enforcement.................................................10
Section 2.18.     Fidelity Bond or Errors and Omissions Insurance.............10

                                   Article III

                              ACCOUNTS; COLLECTIONS

Section 3.01.     Accounts....................................................10
Section 3.02.     Collections.................................................10
Section 3.03.     Collections Account Depository..............................11

                                   Article IV

                         REPRESENTATIONS AND WARRANTIES

Section 4.01.     Representations and Warranties of the Servicer..............11
Section 4.02.     Representations and Warranties of FPF.......................11

<PAGE>

                                TABLE OF CONTENTS
                                  (continued)

                                                                            Page

                                    Article V

                         DEFAULT, REMEDIES AND INDEMNITY

Section 5.01.     Events of Servicing Default.................................11
Section 5.02.     Remedies....................................................12
Section 5.03.     Indemnity by the Servicer...................................13
Section 5.04.     Waiver of Events of Servicing Default.......................13
Section 5.05.     Survival....................................................13

                                   Article VI

                       TERMINATION OF SERVICING AGREEMENT

Section 6.01.     Term........................................................13

                                   Article VII

                            MISCELLANEOUS PROVISIONS

Section 7.01.     No Offset...................................................13
Section 7.02.     Powers of Attorney..........................................13
Section 7.03.     Assignments; Third Party Beneficiaries......................13
Section 7.04.     Amendment...................................................14
Section 7.05.     Waivers.....................................................14
Section 7.06.     Notices.....................................................14
Section 7.07.     Governing Law...............................................14
Section 7.08.     Jurisdiction................................................14
Section 7.09.     Waiver of Jury Trial........................................15
Section 7.10.     Severability of Provisions..................................15
Section 7.11.     Counterparts................................................15
Section 7.12.     Captions....................................................15
Section 7.13.     Legal Holidays..............................................15
Section 7.14.     Advice from Independent Counsel.............................15
Section 7.15.     Judicial Interpretation.....................................15

EXHIBIT A-1                FORM OF SERVICER'S DAILY REPORT
EXHIBIT B                  REPRESENTATIONS AND WARRANTIES
EXHIBIT C                  POWER OF ATTORNEY

                                       iiExhibit 10.16

LOGO

TO:                                 FROM:
Teddy Lawson                        Suzanne A. Spantidos  /s/

COMPANY:                            DATE:
Federated National                  FEBRUARY 22, 2002

FAX NUMBER:                         TOTAL NO. OF PAGES INCLUDING COVER:
954-316-9201                        4

PHONE NUMBER:                       SENDER'S REFERENCE NUMBER:
954-308-1250                        300300302

RE:  1/1/2002 Reinsurance Terms for Federated National Insurance Company

Dear Teddy:

TRC is prepared to authorize 100% based on the Revised terms outlined below.
This quotation contains the changes we discussed yesterday and are in bold for
your reference.  Please sign this copy and fax to my attention.  I will forward
hard copies via Federal Express from "wet signature".  Thank you for all of your
help.

--------------------------------------------------------------------------------
Company:                Federated National
--------------------------------------------------------------------------------
Business Covered:       Private Passenger Auto Only
--------------------------------------------------------------------------------
Territory:              Florida
--------------------------------------------------------------------------------
Commencement            Effective January 1, 2002, on new and renewal business.
& Termination:          Policies Attaching Basis.

                        The treaty may be cancelled at semi annually by giving
                        90 days prior written notice by certified mail.

                        Special Termination Clause (see attached)

                        Company has option to elect Runoff or Cutoff.  Election
                        must be made within 30 days of notice or cancellation/
                        termination.
--------------------------------------------------------------------------------
Coverage:               40% Quota Share
--------------------------------------------------------------------------------
Ceding Commission:      Minimum: 30% @ 66% ILR, sliding 0:1
                                 30% @ 63% ILR, client realizing 100% of profits
                                 under 63% ILR
--------------------------------------------------------------------------------
Loss Corridor:          Federated National to assume 50% of Incurred Losses from
                        70% to 75% and then 100% of Incurred Losses from a 75%
                        to 80%.
--------------------------------------------------------------------------------
Commission Adjustment  Commission to be adjusted 24 months from inception,
                        calculation to apply a 6.5% IBNR factor.
--------------------------------------------------------------------------------
Loss Adjustment Exp:    Treaty Limitation of ALAE: Total allocated loss
                        adjustment expense, including outside legal counsel,
                        shall be the lesser of actual ALAE or 8% of Earned
                        Premium.  Allocated loss adjustment expense and legal
                        expense shall be reported separately.
                        Payment of ALAE: Superior Adjusting Inc. will receive,
                        through the monthly accounts, 7.5% of Earned Premium. An
                        adjustment for Actual ALAE will be made at the time of
                        the Commission Adjustment.
--------------------------------------------------------------------------------
<PAGE>

Page 2
--------------------------------------------------------------------------------
Non-Traditional QS      Transatlantic will have the option at 7-15-02 to modify
Option:                 the terms to a Non-Traditional Quota Share treaty
                        including the following:

                        Change would be retroactive to 1-1-02. Reinsurer's
                        Margin: 4% (96% Combined Ration)
                        TRC will transfer of funds to establish a Funds Withheld
                        Structure: Federated National will hold all funds except
                        the Reinsurer's Margin.
                        Ceding Commission:  30% @ 66% ILR, client realizing 100%
                        of profits under a 66% ILR.  Profit Contingency to be
                        calculated 24 months from inception with a 6.5% IBNR
                        factor applied.
                        Loss corridor: Federated National to assume 100% of
                        Incurred Losses from a 66% ILR to 86% ILR.
                        Establish an Incurred Loss Ratio Cap of 110%
--------------------------------------------------------------------------------
Definitions:            Written Premium: Gross Written Premium for the policy,
                        less cancellations and return premium.
                        Collected Premium: Premium actually collected by
                        producer/agent or MGA from the insureds policy payment
                        schedule.
                        Earned Premium: Earned Portion of the Written Premium
                        (as defined above), using the Daily Pro Rata calculation
                        method or other accepted calculation method as
                        agreed to.
--------------------------------------------------------------------------------
Limits:                 Basic Limits Section A        Increased Limits Section B
                        BI   $10,000/$20,000          BI  $100,000/$300,000
                        PD   $10,000                  PD  $50,000
                        APD  $50,000                  APD $50,000
--------------------------------------------------------------------------------
Reports & Remittances:  Monthly reports within 30 days and remittance within 30
                        days.  Basic Limits and Increased Limits to be reported
                        separately.
--------------------------------------------------------------------------------
Warranty:               No rate decreases or discount increases without prior
                        reinsurer written approval.
                        Ceded Premium Cap of $12,000,000
--------------------------------------------------------------------------------
Exclusions:             Guaranty funds, insolvency funds, pools, pollution BRMA
                        39A and 39B, and attached auto specific list.
--------------------------------------------------------------------------------
ECO/XPL                 ECO/XPL will be covered at 100% with a total per claim
                        limitation of $500,000 inclusive of policy limits.
                        Annual Aggregate limit of $1.5MM.
--------------------------------------------------------------------------------
Terrorism               In the event of a terrorist act, this treaty will be
                        subject to an Annual Aggregate Limit of $1M for all
                        losses incurred by a terrorist act.  This condition will
                        be readdressed when the ISO PPA Terrorist wording has
                        been developed and distributed.
--------------------------------------------------------------------------------
General Conditions:     General conditions to include wording attached for:
                        offset clause, salvage and subrogation clause,
                        arbitration clause and access to records.
--------------------------------------------------------------------------------
Informational:          Underwriting guidelines and rates to be filed with
                        Reinsurer.
                        Ceding Commission to be paid on a Collected basis.
                        Full placement of these Reinsurance Terms must be
                        obtained within 10 business days of the quotation being
                        accepted.
                        The program must incept within 30 days of the acceptance
                        of these terms and conditions or the Reinsurance
                        Agreement will be terminated.
--------------------------------------------------------------------------------

/s/Suzanne A. Spantidos  Date 2-22-02     /s/Teddy Lawson   Date 2/25/02
-----------------------                   ----------------
Suzanne A. Spantidos                      Teddy Lawson
Transatlantic Reinsurance Company         Federated National Insurance Company

<PAGE>

                           Special Termination Clause

Either party to this Agreement shall have the right to cancel this Agreement
immediately by giving 10 days written notice to the other party by registered
mail in the event that one party;

1.       has its financial condition impaired by a reduction of surplus as
         regards policyholders of 15% or more in any twelve month period from
         the inception date of this Agreement;

2.       is declared insolvent or put in liquidation by any competent regulatory
         authority or court of competent jurisdiction;

3.       loses its operating license, or has its operating license suspended, in
         any jurisdiction;

4.       ceases writing new or renewal business;

5.       has any change in ownership, which is considered to be 10% or more of
         its stock and/or a change in management;

6.       fails to remit premiums/losses in accordance with the terms of this
         Agreement. The coverage afforded by this Agreement shall cease as of
         the date of termination except in the case of failure to remit premium,
         termination shall be effective as at the date through which premium has
         been paid.

The Reinsurer shall have the right to cancel this Agreement 90 days notice for
the following provision:

1.       Has it's A.M. Best rating reduced to B- or lower;

Subject to the Special Termination items above, the party giving notice shall
have the option to return or request the return of the unearned premium, if any,
on the business in force at the date of cancellation, less any commission
allowed thereon.  Thereby terminating this agreement on a cutoff basis.

If the Reinsurer requests termination on a Cutoff basis, such termination shall
not apply to business written restricted by the state regulatory authority.

<PAGE>

                       Private Passenger Auto Exclusions

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

1.   Financial Guarantee and insolvency;

2.   Business written to apply in excess of a deductible of more than $5,000,
     and business issued to apply specifically in excess over underlying
     insurance;

3.   Liability as a member, subscriber or reinsurer of any Pool, Syndicate or
     Association, but this exclusion shall not apply to Assigned Risk Plans or
     similar plans.

4.   Automobile Liability Insurance relating to the ownership, maintenance or
     use of:

     A.   A Taxicab, public livery conveyance or bus;

     B.   An ambulance, fire department or law enforcement, private emergency
          vehicle or other municipal equipment;

     C.   A racing or exhibition vehicle;

     D.   Rental and leasing of all motor vehicles;

     E.   Commercial automobiles, except service vehicles used by Craftsmen and
          Artisans up to a maximum of one ton;

     F.   Risks engaged in the transportation or distribution of munitions and
          explosives such as, but not limited to: liquid hydrogen, nitrogen,
          chlorine, fireworks, fuses, dynamite, nitroglycerine, ammonia nitrate,
          anhydrous ammonia, celluloid, pryroxline, or their derivatives, LGP,
          butane, propane and gasoline;

     G.   Recreational and high performance vehicles.

     H.   Policies sold to celebrity persons.

5.   Any automobile not classified as private passenger automobile.

6.   Business written on a co-surety or co-indemnity basis not controlled by the
     Company.

7.   Loss or damage arising from pollution and environment impairment.

8.   Loss or damage resulting from any of the following lines of business; Ocean
     Marine, Accident and Health, Worker's Compensation, Aircraft (all perils),
     Fidelity, Surety, Glass, Boiler and Machinery, Credit, Title, and/or Life.

If any business falling within the scope of one or more of the exclusions is
assigned to the Company under an Assigned Risk Plan, such exclusion(s)shall not
apply, it being understood and agreed that the limits of liability extended by
the Company as respects such policies shall not exceed the minimum statutory
limits of liability prescribed in such Assigned Risk Plan.

Definitions:
------------

Recreational Vehicles include:  road buggies, dune buggies, caravans, motor
coaches and motor homes.

Celebrity Persons include:  actors (guild and/or association membership),
professional athletes (with league membership), olympic athletes, college
athletes, radio personalities, news broadcasters, musicians, authors/writers
(of published works), and models.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00036-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00036-of-00352.parquet"}]]