Document:

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                                                                   EXHIBIT 10.48

                              EMPLOYMENT AGREEMENT

          EMPLOYMENT AGREEMENT, effective as of December 1, 2002, by and between
USI INSURANCE SERVICES CORP. a Delaware corporation ("Company") and JEFFREY L.
JONES ("Executive"). Company and Executive are referred to hereinafter as the
"Parties".

                                R E C I T A L S :

          WHEREAS, the Company is a wholly owned subsidiary of U.S.I. Holdings
Corporation, a Delaware corporation ("USI") and;

          WHEREAS, the Executive is presently employed by the Company pursuant
to a prior Employment Agreement effective as of January 1, 2000 (the "Original
Employment Agreement"); and

          WHEREAS, the Company and Executive desire to terminate the Original
Employment Agreement and all respective rights and obligations therein except as
expressly provided herein; and

          WHEREAS, the Company desires to employ the Executive on the terms and
subject to the conditions set forth herein, and Executive is willing to accept
such employment on such terms and conditions; and

          WHEREAS, by virtue of such employment, Executive will have access to
Confidential Information of the USI Companies; and

          WHEREAS, Executive acknowledges and agrees that the Company (on behalf
of itself and the USI Companies) has a reasonable, necessary and legitimate
business interest in protecting its own and the USI Companies' Confidential
Information, Client Accounts, relationships with Active Prospective Clients,
Goodwill and ongoing business, and that the terms and conditions set forth below
are reasonable and necessary in order to protect these legitimate business
interests.

          NOW THEREFORE, in consideration of the representations, warranties,
covenants, and agreements contained herein, and for other good and valuable
consideration, the receipt and adequacy of which are conclusively acknowledged,
the Parties, intending to become legally bound, agree as follows:

                               A G R E E M E N T :

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1.        DEFINITIONS

          1.1    Specific Definitions. Capitalized terms not defined elsewhere
herein shall have the following meanings ascribed to them:

          "Active Prospective Acquisition" means any business or enterprise
engaged in providing USI Business, (i) with which a specified Person (or any of
its agents) had engaged in negotiations (whether or not successfully) within the
24 months preceding a specified date, regarding the acquisition of, sale of
assets by, or merger or joint venture with, such business or enterprise or (ii)
which had been identified by a specified Person (or any of its agents) in the
business records of such specified Person within the 24 months preceding a
specified date, and actively considered as a candidate, for possible
acquisition, merger, sale of assets or joint venture.

          "Active Prospective Client" means any Person, or a group of Persons,
(i) who or which had been identified with reasonable particularity by a
specified Person (or any of its agents) in the business records of such
specified Person within the 24 months preceding a specified date, with
reasonable particularity as a possible client or customer of such specified
Person, or (ii) to whom or which a specified Person (or any of its agents) had
communicated in the business records of such specified Person within the 24
months preceding a specified date, in writing or otherwise, with respect to the
provision of any services that such specified Person provides in the conduct of
its business.

          "Change of Control" means the occurrence of any of the following:

          (i)    any transaction, or series of related transactions (including
any merger or consolidation), the result of which is that any "person" or
"group" (as such terms are defined for purposes of the Securities Exchange Act
of 1934, as amended), becomes the "beneficial owner" (as so defined in Rule
13-d3 under such Act, except that a Person shall be deemed to have "beneficial
ownership" of all securities that such Person has the right to acquire, whether
such right is currently exercisable or is exercisable only upon the occurrence
of a subsequent condition), directly or indirectly, of 50% or more of USI's
aggregate outstanding voting stock (measured by voting power rather than number
of shares);

          (ii)   USI consolidates with, or merges with or into, any Person, or
any Person consolidates with or merges with or into USI, in any such event
pursuant to a transaction in which any of the outstanding voting stock of USI is
converted into or exchanged for cash, securities or other property, other than
any such transaction where the voting stock of USI outstanding immediately prior
to such transaction is converted into or exchanged for voting stock of the
surviving or transferee Person constituting 50% or more (immediately after
giving effect to such conversion or exchange) of the aggregate outstanding
shares of such voting stock of such surviving or transferee Person or

          (iii)  substantially all of USI's assets or earnings power is sold in
any transaction or series of related transactions.

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          "Client Account" means the account of any client (including, without
limitation, any retail insurance agent or broker, individual insured,
association and any member thereof, and any insurance carrier or other entity to
the extent third party administration claims processing or underwriting is
performed by such specified Person for such carrier or other entity) who or
which is serviced, as of a specified date, by a specified Person in connection
with such specified Person's business, regardless of whether such services are
provided by, or through the licenses of, such specified Person or any
shareholder, employee or agent of such specified Person.

          "Confidential Information" means any information of a specified
Person, determined as of a specified date, that is not already generally
available to the public (unless such information has entered the public domain
and become available to the public through fault on the part of the Party to be
charged hereunder), all of which the Parties agree constitute trade secrets
under the governing trade secrets law, including but not limited to:

          (i)    the identity of any client (including, without limitation, any
                 retail insurance agent or broker, individual insured,
                 association and any member thereof, and any insurance carrier
                 or other entity to the extent third party administration claims
                 processing or underwriting is performed by such specified
                 Person for such carrier or other entity) whose account
                 constituted a Client Account of such specified Person at any
                 time within the 24 months preceding such specified date, as
                 well as the identity of any Active Prospective Client of such
                 specified Person as of such date;
          (ii)   the identity, authority and responsibilities of key contacts at
                 each such client and Active Prospective Client;
          (iii)  the service cost burden with respect to each such client and
                 Active Prospective Client;
          (iv)   the identities of markets or companies (including, but not
                 limited to, managed care programs, physician networks and the
                 surgical review board) from which insurance coverages or other
                 commitments, benefits or services for clients are obtained, the
                 surgical review boards of such companies and the commission
                 rates and/or fees with respect thereto;
          (v)    the types of consulting, third-party administration, employee
                 communication, investment management, managed care, human
                 resource and other services, and insurance coverages, provided
                 or to be provided specifically to any such client or Active
                 Prospective Client, and the internal corporate policies
                 relating thereto;
          (vi)   the specific insurance policies purchased by or for such
                 clients or Active Prospective Clients;
          (vii)  the expiration dates, commission rates, fees, premiums and
                 other terms and conditions of such policies;
          (viii) the risk specifications and other characteristics, and claims
                 loss histories of such clients or Active Prospective Clients;
          (ix)   the nature of programs and plans, including their design,
                 funding and administration, demographic characteristics and any
                 other information supplied by, or developed for, such clients
                 or Active Prospective Clients;

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          (x)    operations manuals, prospecting manuals and guidelines, pricing
                 policies and related information, marketing manuals and plans,
                 and business strategies, techniques and methodologies;
          (xi)   financial information, including information set forth in
                 internal records, files and ledgers, or incorporated in profit
                 and loss statements, fiscal reports and business plans;
          (xii)  Active Prospective Acquisitions of such specified Person as of
                 such date, and all financial data, pricing terms, information
                 memoranda and due diligence reports relating thereto;
          (xiii) Technology and e-commerce strategies, business plans and
                 implementations, inventions, algorithms, computer hardware,
                 software and applications (including but not limited to any
                 source code, object code, documentation, diagrams, flow charts,
                 associated with the development or use of the foregoing
                 computer software);
          (xiv)  all internal memoranda and other office records, including
                 electronic and data processing files and records; and (xv) any
                 other information constituting a trade secret under the
                 governing trade secrets law.

          "Goodwill" means the expectation of continued patronage from Client
Accounts and new patronage from prospective clients.

          "Person" means an individual, a partnership, a corporation, an
association, a joint stock company, a trust, a joint venture, an unincorporated
organization, a limited liability company, or a governmental entity (or any
department, agency, or political subdivision thereof).

          "USI Company" means any USI Company to which Executive provides
services on behalf of the Company during the term of this Agreement.

          "USI Business" means the businesses provided by any of the USI
Companies (including, without limitation, the providing of (i) insurance agency
and brokerage, and related insurance services, including, without limitation,
risk management and loss control, medical bill review, utilization review, cost
containment, analysis of loss exposures and designs, catastrophic case
management, loss reserves and rate reviews, performance of cash flow studies,
administration of risk funding and transfer techniques, captive company
formation, self-insurance consulting, reinsurance and excess stop loss (both
specific and aggregate) placement, management of insurance programs (including
programs with respect to membership associations and congregations), third party
administration, actuarial and administrative services for pension and health
plans, compensation programs and employee communications; (ii) managed care
consulting services and related legal assistance; (iii) human resource and
employee compensation consulting services and related legal assistance; and (iv)
any insurance or financial services relating to any of the foregoing).

          "USI Companies" means USI, its subsidiaries (including the Company),
its "affiliates" and "associates" (as defined in Rule 12b-2 of the regulations
promulgated under the Exchange

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Act, without regard to whether any party is a "registrant" under such Act), and
any of their successors or assigns.

2.        POSITION, RESPONSIBILITIES AND TERM

          2.1.   Executive's Position. On the terms and subject to the
conditions set forth in this Agreement, the Company shall employ Executive to
serve as Senior Vice President of Sales and Marketing of the Company and USI.
Executive shall report to the CEO of USI (the "USI CEO").

          2.2    Executive's Responsibilities. The Executive shall perform all
duties customarily attendant to these positions and shall perform such services
and duties commensurate with such positions as may from time to time be
reasonably prescribed by the USI CEO.

          2.3    No Conflicts of Interest. Executive further agrees that
throughout the period of his employment hereunder, he will not perform any
activities or services, or accept such other employment which would be
inconsistent with this Agreement, the employment relationship between the
Parties, or would interfere with or present a conflict of interest concerning
Executive's employment with USI or the Company; provided, that Executive shall
be permitted to serve on the boards of directors of such other companies as the
USI CEO shall approve, such approval not to be unreasonably withheld, and that
Executive may make personal investments and may act as a director and engage in
other activities for any charitable, educational, or other nonprofit
institution, as long as such investments and activities do not materially
interfere with the performance of Executive's duties hereunder. Executive agrees
to adhere to and comply with any and all business practices and requirements of
ethical conduct set forth in writing from time to time by the Company in its
employee manual or similar publication.

          2.4.   Term. Executive shall be employed for a five-year term
commencing on December 1, 2002, and ending on November 30, 2007, unless sooner
terminated in accordance with the provisions of Section 8 of this Agreement;
provided however that such employment shall be automatically extended on the
same terms and conditions as contained herein, unless the Company provides
Executive written notice, no later than 120 days prior to the then scheduled
termination of employment, of its intent not to extend such employment. The
foregoing term of employment shall be referred to hereinafter as the "Term".

3.        ACCEPTANCE

          3.1    Executive hereby accepts such employment and agrees that
throughout the period of employment hereunder, Executive will devote his full
business time, attention, knowledge and skills faithfully, diligently and to the
best of his ability, in the furtherance of the business of the USI Companies.

4.        COMPENSATION

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          4.1.   Base Salary. As compensation for the services to be rendered by
Executive hereunder, the Company agrees to pay Executive, and Executive agrees
to accept, a base salary ("Base Salary") during employment hereunder at the
annual rate of not less than $339,800; provided, however, that the USI CEO may
determine to increase but not decrease the Executive's Base Salary in such
amount as the USI CEO may determine. The Base Salary shall be payable in equal
installments by the Company according to its normal payroll practices.

          4.2    Performance Bonus. As additional compensation for the services
to be rendered by Executive hereunder, Executive shall be eligible to receive
from time to time during the term hereof, a bonus under the USI Management
Incentive Plan, as may be amended from time to time at the sole discretion of
the Board or Compensation Committee of the Board (the "USI Plan"). As Senior
Vice President of Sales and Marketing of the Company, Executive is entitled to a
percentage of Base Salary award which is in turn based upon the USI Companies
performance criteria set forth in the USI Plan. At no time during the Term
hereof will Executive's "target" award opportunity be any less than 60% of
Executive's then Base Salary and will Executive's "threshold" award opportunity
be any less than 48% of Executive's then Base Salary. Any awards under the USI
Plan which exceed target performance will be in such amount as the USI CEO may
determine, and any decision of USI CEO shall be in his sole and unreviewable
discretion. Any award under the USI Plan will be paid to the Executive no later
than 90 days following the end of the performance year.

          4.3    2002 Equity Incentive Plan. As additional compensation for the
services to be rendered by Executive hereunder, Executive shall be eligible to
receive from time to time during the Term hereof, stock based compensation
awards under the 2002 Equity Incentive Plan, as may be amended from time to time
at the sole discretion of the Board or Compensation Committee of the Board.
Moreover, as a specific additional consideration for transitioning to
Executive's new responsibilities under this Agreement, Executive will receive a
grant of 40,000 options to purchase USI stock pursuant to a Notice of Stock
Option Grant from USI.

          4.4    Benefits. In addition to such compensation, Executive shall be
entitled to the benefits which are afforded generally, from time to time to USI
executive employees. Notwithstanding the foregoing, nothing contained in this
Agreement shall require the USI Companies to establish, maintain or continue any
of the group benefits plans already in existence or hereafter adopted for the
employees of the USI Companies, or restrict the right of the USI Companies to
amend, modify or terminate such group benefit plans in a manner which does not
discriminate against Executive as compared to other executive employees of USI
Companies.

          4.5    Vacation. Executive shall be entitled to vacation time and
holidays as are provided in general to executive employees of the USI Companies,
in accordance with usual practices and procedures, but shall in any event, be
entitled to no less than four weeks of vacation per year. Without limiting the
foregoing, Executive shall not be entitled to any additional compensation for
any unused vacation time.

5.        EXPENSES

          5.1    The Company shall reimburse Executive, in accordance with
Company

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policy, for all expenses reasonably and properly incurred by Executive in
connection with the performance of Executive's duties hereunder and the conduct
of the business of the Company, upon the submission to the Company (or its
designee) of appropriate vouchers therefor. Additionally, the Executive shall be
provided with up to $1000.00 a month for an automobile allowance during his
employment with the Company. The Company shall provide Executive with up to
$1000 per month for club and other organizational memberships. The Company shall
provide Executive with up to $3200.00 per year for term life insurance.

6.        CONFIDENTIAL INFORMATION AND PROPERTY

          6.1.   Property of the Company. Executive acknowledges and agrees that
all premiums, commissions, fees and other forms of compensation, and all
Confidential Information of the USI Companies relating thereto, which Executive
generates in the course of providing, directly or indirectly, any USI Business
during the Term hereof (including such items resulting from or relating to
services provided by Executive to the USI Companies), shall be the sole property
of the USI Companies, as the case may be.

          6.2.   Confidentiality during Term. During the Term hereof, Executive
will not use, or disclose to any Person, any Confidential Information
(determined as of any date during the Term hereof) of any USI Company, except
(a) in the normal course of business on behalf of such USI Company (b) with the
prior written consent of such USI Company or (c) to the extent necessary to
comply with law or the valid order of a court of competent jurisdiction, in
which event Executive shall notify such USI Company as promptly as practicable
(and, if possible, prior to the making of such disclosure). In addition,
Executive will use reasonable efforts to prevent any such prohibited use or
disclosure by any other person.

          6.3.   Confidentiality following Term. Following the Term hereof,
Executive will not use, or disclose to any Person, any Confidential Information
(determined as of the date of termination of Executive's employment with the
Company) of any USI Company, except (a) with the prior written consent of such
USI Company or (b) to the extent necessary to comply with law or the valid order
of a court of competent jurisdiction, in which event Executive shall notify such
USI Company as promptly as practicable (and, if possible, prior to the making of
such disclosure). In addition, Executive will use reasonable efforts to prevent
any such prohibited use or disclosure by any other person.

7.        NON-SOLICITATION, NON-COMPETITION AND CONFLICTS OF INTEREST

          7.1.   Non-Solicitation. Except in the normal course of business on
behalf of any USI Company, Executive agrees that he will not, directly or
indirectly, (a) solicit, sell, provide or accept any request to provide, or
induce the termination, cancellation or non-renewal of, any USI Business from or
by any person, corporation, firm or other entity whose account constituted a
Client Account of such USI Company, at any time within the 24 months preceding
the earlier of the date of such act or the date of termination of Executive's
employment with USI and the Company or (b) solicit, offer, negotiate or
otherwise seek to acquire any interest in any Active

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Prospective Acquisition of such USI Company, determined as of the earlier of the
date of such act or the effective date of termination of Executive's employment
with USI and the Company. The restrictions contained in this Section 7.1 shall
apply throughout the Term hereof and thereafter until two (2) years after the
effective date on which Executive's employment with USI and the Company, or
there respective successors in interest, terminates.

          7.2.   Non-Competition. In consideration of the payments and benefits
to be received by Executive under this Agreement and for other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged by
Executive, Executive agrees that, during the Non-Competition Period (as
hereinafter defined), Executive will refrain from carrying on any business,
directly or indirectly, which provides any USI Business, except (i) in the
normal course of business on behalf of any USI Company during the term of
Executive's employment under this Agreement or (ii) with the Company's prior
written consent. The term "carrying on any business" shall mean to act as a sole
proprietor, partner, member of a limited liability company, stockholder,
officer, director, employee, manager, trustee, agent, advisor, joint venturer,
or consultant of, with or to, any business, or otherwise to own, manage,
operate, control or participate in the ownership, management, operation or
control of, or engage in, any business. The Non-Competition Period shall mean
the period beginning on the effective date of this Agreement and ending on the
following date: (1) the first anniversary of the date of Executive's termination
of employment in the case of a termination of Executive's employment pursuant to
Section 8.2, or 8.4; or (2) the last day of the period for which payments are
made to Executive pursuant to Section 8.1 or 8.3. It is expressly agreed that
this Section 7.2 is not intended to restrict or prohibit the ownership by
Executive of stock or other securities of a publicly-held corporation in which
Executive does not (a) possess beneficial ownership of more than 5% of the
voting capital stock of such corporation or (b) participate in any management or
advisory capacity. In addition, it is also agreed that this Section 7.2 shall
not prohibit Executive from serving as a director pursuant to the terms of
Section 2.3 during the term of his employment under this Agreement. It is the
desire and intent of the parties that the provisions of this Section 7.2 shall
be enforced under the laws and public polices applied in each jurisdiction in
which enforcement is sought. Accordingly, if any particular provision of this
Section 7.2 is adjudicated to be invalid or unenforceable or shall for any
reason be held to be excessively broad as to duration, geographic scope,
activity or subject, it shall be construed by limiting and reducing it, so as to
be enforceable to the extent compatible with applicable laws and such provision
shall be deemed modified and amended to the extent necessary to render such
provision enforceable in such jurisdiction. If Executive challenges the
enforceability of the provisions of this Section 7.2 in whole or in part,
Executive shall, immediately upon such challenge, forfeit any right to any
payments and benefits under this Agreement that he has not already received.

          7.3.   No Hiring. Executive further agrees that he will not, directly
or indirectly, solicit the employment, consulting or other services of any other
employee or independent producer of any USI Company or otherwise induce any of
such employees to leave such USI Company's employment or to breach an employment
or independent producer agreement therewith. The restrictions contained in this
Section 7.3 shall apply throughout the Term hereof and thereafter until two (2)
years following the date on which Executive's employment with USI and the
Company or their respective successors in interest terminates.

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          7.4    Non-disparagement. Subject to obligations under applicable laws
and regulations, in the event of a termination of this Agreement, neither the
Executive nor any of the USI Companies or their senior officers or directors,
shall publicly make any statements or comments that disparage the reputation of
the Executive, or any of the USI Companies or their senior officers or
directors.

          7.5.   Miscellaneous. Without limiting the provisions of Section 16,
in the event of any assignment by the Company permitted under such section, the
restrictive periods contained in this Section 7 shall be determined by reference
to the termination of Executive's employment with any permitted assignee of the
Company.

8.        TERMINATION

          8.1    Termination by the Company Without Cause; Failure to Extend.
Company shall have the right to terminate Executive's employment hereunder
"without cause" by giving Executive written notice to that effect. Any such
termination of employment shall be effective on the date specified in such
notice. The Company may also give notice of its election not to extend
Executive's employment hereunder for an additional Term. In the event of such
termination, or in the event of a failure to extend Executive's employment
hereunder for an additional Term under the same terms and conditions, the
Company shall (i) pay Executive his unpaid Base Salary through the effective
date of termination and any business expenses remaining unpaid on the effective
date of the termination for which Executive is entitled to be reimbursed under
Section 5 of this Agreement, (ii) pay Executive an amount per month equal to
one-twelfth the sum of (1) his then adjusted Base Salary plus (2) an amount
equal to Executive's target bonus set by the Board that he would have otherwise
received (but for such termination) for the year in which such termination
occurred for the period commencing on the date following the date of termination
and ending on the date which is twenty four (24) months following the effective
date of termination; and (iii) either continue to provide Executive with
healthcare coverage under the plan in which Executive participates immediately
prior to the effective date of such termination (where Executive remains
eligible to participate, and in accordance with the terms thereof) or in the
event Executive no longer remains eligible to participate under such healthcare
plan, to reimburse Executive for the amount of the premium Company would have
paid for Executive's healthcare coverage had Executive remained employed
hereunder, in each case until (A) the date which is twenty four (24) months
following the effective date of termination or (B) the commencement of
Executive's coverage under another employer's healthcare plan; provided,
however, that without limiting any other remedy available hereunder, all
payments described in the Section 8.1 shall immediately terminate upon an
arbitrator's or judge's determination that Executive has breached the provisions
of Section 6 or 7 hereof.

          8.2    Termination by the Company for Cause. The Company shall have
the right to terminate this Agreement and Executive's employment hereunder "for
cause" by giving Executive written notice to that effect. Any such termination
of employment shall be effective on the date specified in such notice. In the
event of such termination, the Company shall pay to Executive (a) his unpaid
Base Salary through the effective date of the termination, and (b) any business
expenses remaining unpaid on the effective date of the termination for which
Executive

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is entitled to be reimbursed under Section 5 of this Agreement. For the purpose
of this Agreement, "for cause" shall mean (i) commission of a willful and
material act of dishonesty in the course of Executive's duties hereunder, (ii)
conviction by a court of competent jurisdiction of a crime constituting a felony
or conviction in respect of any act involving fraud, dishonesty or moral
turpitude, (iii) Executive's performance under the influence of controlled
substances, or continued habitual intoxication, during working hours, after the
Company shall have provided written notice to Executive and given Executive 30
days within which to commence rehabilitation with respect thereto, and Executive
shall have failed to commence such rehabilitation or continued to perform under
the influence after such rehabilitation, (iv) frequent or extended, and
unjustifiable (not as a result of incapacity or disability) absenteeism which
shall not have been cured within 90 days after the Company shall have advised
Executive in writing of its intention to terminate Executive's employment in
accordance with the provisions of this Section 8.2, in the event such condition
shall not have been cured, (v) Executive's personal, willful and continuing
misconduct or refusal to perform duties and responsibilities described in
Section 1 above, or to carry out directives of the USI CEO, which, if capable of
being cured, shall not have been cured within 90 days after the Company shall
have advised Executive in writing of its intention to terminate Executive's
employment in accordance with the provision of this Section 8.2 or (iv) material
non-compliance with the terms of this Agreement, including but not limited to
any breach of Section 6 or Section 7 of this Agreement.

          8.3    Termination by Executive for Good Reason. Executive shall have
the right to terminate this Agreement and his employment hereunder for "good
reason," if (i) there is a Change of Control, and, within one year following
such Change of Control, Executive terminates his employment hereunder due to the
material diminution of his duties and responsibilities, as set forth herein, or
(ii) default by the Company in the payment of or otherwise failure by the
Company to pay in a timely fashion after demand therefor any material sum due to
the Executive pursuant to this Agreement; provided that Executive shall give the
Company prior written notice of the reason therefore and a period of 30 days
following receipt by the Company of such notice shall have lapsed and the
matters which constitute or give rise to such "good reason" shall not have been
cured or eliminated by the Company. In the event of such termination, Executive
shall be entitled to receive the same payments and benefits as would be provided
under Section 8.1 in the event of a termination without cause.

          8.4    Termination by Executive Without Good Reason. Executive shall
have the right to terminate this Agreement and his employment hereunder by
giving the Company not less than ninety (90) days prior written notice to that
effect. The termination of employment shall be effective on the date specified
in such notice. In the event that such notice is given, the Company may require
Executive to leave immediately, in which event, Executive must be compensated
under this Agreement for the notice period in a manner commensurate to the
compensation Executive would have received during the notice period had his
employment not been terminated by him. In the event of such termination,
Executive shall be entitled to receive the same payments as would be provided
under Section 8.2 in the event of termination for cause.

          8.5    DEATH, INCAPACITATION OR DISABILITY.

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                 a.     Death. If Executive dies during his employment
hereunder, this Agreement shall terminate upon the date of Executive's death. In
the event of any such termination, the Company shall pay to Executive's
representative or his estate any unpaid Base Salary through the effective date
of termination and any business expenses remaining unpaid on the effective date
of the termination for which Executive is entitled to be reimbursed under
Section 5 of this Agreement.

                 b.     Incapacitation or Disability. In the event that
Executive is incapacitated or disabled by reason of illness or physical or
mental disability from performing Executive's duties hereunder (which shall be
deemed to have occurred (i) when Executive has receive total disability benefits
under the Company's long-term group disability policy for a continuous period of
six (6) months or, if no policy is then in effect, (ii) when such incapacity or
disability shall have existed for either (A) one continuous period of six months
or (B) a total of seven months out of any twelve consecutive months), the
Company shall have the right to terminate Executive's employment hereunder by
giving Executive 30 days prior written notice to that effect. In the event of
any such termination, the Company shall pay to Executive any unpaid Base Salary
through the effective date of termination and any business expenses remaining
unpaid on the effective date of the termination for which Executive is entitled
to be reimbursed under Section 5 of this Agreement.

9.        REMEDIES

          9.1.   Equitable Relief. Executive acknowledges that the services to
be rendered by him are of a special, unique and extraordinary character and that
it would be extremely difficult or impracticable to replace such services, that
the material provisions of this Agreement are of crucial importance to the
Company and that any damage caused by the breach of Sections 6 or 7 of this
Agreement would result in irreparable harm to the business of the Company for
which money damages alone would not be adequate compensation. Accordingly,
Executive agrees that if he violates Sections 6 or 7 of this Agreement, the
Company shall, in addition to any other rights or remedies of the Company
available at law, be entitled to equitable relief in any court of competent
jurisdiction, including, without limitation, temporary injunction and permanent
injunction.

9.2 Arbitration. The Parties agree that any controversy, claim or dispute
arising out of or relating to Executive's employment hereunder, or the
termination of such employment, shall be settled by arbitration before a
mutually selected arbitrator to be held in the State of New York in accordance
with the Commercial Arbitration Rules of the American Arbitration Association
then in effect. The Parties agree that Executive's sole remedy for a breach of
this Agreement shall be monetary damages. Judgment may be entered on the
arbitrator's award in any court having jurisdiction, and the Parties consent to
the jurisdiction of the courts of the State of New York for this purpose. The
arbitrator shall determine which Party or Parties shall be entitled to costs and
expenses (including reasonable attorneys' fees) resulting from such dispute or
controversy. If such controversy, claim or dispute involves a claim (including,
without limitation, claims, arising under Section 6 or 7) for injunctive or
other equitable relief, and suit or cross-claim for such relief is filed in a
court of competent jurisdiction, the litigation shall be bifurcated to the
extent feasible, to the end that all issues other than those injunctive or
equitable 11

<PAGE>

issues required to be determined by the court shall be determined by arbitration
as hereinabove required.

10.       WITHHOLDING

          10.1   Each payment to Executive under this Agreement shall be reduced
by any amounts required to be withheld by the Company from time to time under
applicable laws and regulations then in effect.

11.       ENTIRE AGREEMENT; NO AMENDMENT

          11.1   No agreements or representations, oral or otherwise, express or
implied, have been made by either Party, with respect to Executive's employment
by any USI Company, that are not set forth expressly in this Employment
Agreement. Except as provided for hereinafter, this Agreement supersedes and
cancels any prior agreement entered into between Executive and the Company or
its predecessors relating to Executive's employment by any USI Company,
including, but not limited to, the Original Employment Agreement.
Notwithstanding the foregoing, the terms and conditions of the Original
Employment Agreement shall remain applicable with respect to Executive's
employment during the portion of the Term (as defined therein) ended November
30, 2002. No amendment or modification of this Agreement shall be valid or
binding unless made in writing and signed by the Party against whom enforcement
thereof is sought.

12.       NOTICES

          12.1   All notices, demands and requests of any kind which either
Party may be required or may desire to serve upon the other Party hereto in
connection with this Agreement shall be delivered only by courier or other means
of personal service, which provides written verification of receipt, or by
registered or certified mail return receipt requested, or by telecopy, provided
that the telecopy is promptly followed by delivery of hard copy of such notice
which provides written verification of receipt (each, a "Notice"). Any such
Notice delivered by registered or certified mail shall be deposited in the
United States mail with postage thereon fully prepaid, or if by courier then
deposited with the courier. All Notices shall be addressed to the Parties to be
served as follows:

(a)       If to the Company, at
          USI Insurance Services Corp.
          50 California Street, 24th Floor
          San Francisco, CA 94111
          Attn: Chief Executive Officer
          Telephone: (415)983-0100
          Facsimile: (415)983-0101

          Copy to:
          USI Insurance Services Corp.
          50 California Street, 24th Floor

                                       12

<PAGE>

          San Francisco, CA 94111
          Attn: General Counsel
          Telephone: (415)983-0100
          Facsimile: (415)315-2105

(b)       If to the Executive at,
          Jeffrey L. Jones
          616 W. Stafford Rd.
          Thousand Oaks, CA. 91361

          Either of the Parties hereto may at any time and from time to time
change the address to which notice shall be sent hereunder by notice to the
other Party given under this Section. All such notices, requests, demands, and
other communications shall be effective when received at the respective address
set forth above or as then in effect pursuant to any such change.

13.       WAIVERS

          13.1   No waiver of any default or breach of this Agreement shall be
deemed a continuing waiver or a waiver of any other breach or default.

14.       GOVERNING LAW

          14.1   THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE
WITH THE LAWS OF THE STATE OF NEW YORK WITHOUT REGARD TO PRINCIPLES OF CONFLICTS
OF LAW.

15.       SEVERABILITY

          15.1   The provisions of this Agreement are intended to be interpreted
in a manner which makes them valid, legal, and enforceable. In the event any
provision of this Agreement is found to be partially or wholly invalid, illegal
or unenforceable, such provision shall be modified or restricted to the extent
and in the manner necessary to render it valid, legal, and enforceable. It is
expressly understood and agreed between Executive and the Company that such
modification or restriction may be accomplished by mutual accord between the
Parties or, alternatively, by disposition of an arbitrator or a court of law. If
such provision cannot under any circumstances be so modified or restricted, it
shall be excised from this Agreement without affecting the validity, legality or
enforceability of any of the remaining provisions.

16.       ASSIGNMENT

          16.1   Executive may not assign any rights (other than the right to
receive income hereunder) under this Agreement without the prior written consent
of the Company. This Agreement may be assigned without the consent of Executive,
and the provisions of this Agreement shall be binding upon and shall inure to
the benefit of the assignee hereof.

                                       13

<PAGE>

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

                                               USI INSURANCE SERVICES CORP.

                                         By:     /s/ David L. Eslick
                                                --------------------------------

                                                Name: David L. Eslick
                                                     ---------------------------
                                                Title: Chairman, President & CEO
                                                     ---------------------------

                                                 /s/ Jeffrey L. Jones
                                                --------------------------------
                                                JEFFREY L. JONES

                                       14<PAGE>

                                  EXHIBIT 10.49

                EIGHTH AMENDMENT AND CONSENT TO CREDIT AGREEMENT

          EIGHTH AMENDMENT AND CONSENT TO CREDIT AGREEMENT (this "Amendment"),
dated as of January 31, 2003, among U.S.I. HOLDINGS CORPORATION, a Delaware
corporation (the "Borrower"), the various lenders from time to time party to the
Credit Agreement referred to below (the "Lenders"), CREDIT LYONNAIS CAYMAN
ISLAND BRANCH, as Administrative Agent (the "Administrative Agent") and JPMORGAN
CHASE BANK (f/k/a The Chase Manhattan Bank), as Syndication Agent (the
"Syndication Agent"). All capitalized terms used herein and not otherwise
defined shall have the respective meanings assigned to such terms in the Credit
Agreement.

                              W I T N E S S E T H:

          WHEREAS, the Borrower, the Lenders, the Administrative Agent and the
Syndication Agent are parties to a Credit Agreement, dated as of September 17,
1999 (as amended, modified or supplemented to the date hereof, the "Credit
Agreement");

          WHEREAS, the Borrower has requested that the Lenders agree to amend
certain provisions of the Credit Agreement as herein provided; and

          WHEREAS, the Lenders have agreed to the amendments and consents to the
Credit Agreement as herein provided, subject to the terms and conditions set
forth herein;

          NOW, THEREFORE, the parties hereto agree as follows:

          1.     Notwithstanding anything to the contrary contained in Section
7.2, 7.8(e) or 7.9 of the Credit Agreement, USIS or one of its Wholly Owned
Subsidiaries may acquire a company (the "Target") previously identified to the
Administrative Agent (the "Acquisition") pursuant to a (and in accordance with
the definition of) Permitted Acquisition, provided that in connection with the
Acquisition, the Borrower and/or one of its Wholly Owned Subsidiaries shall be
permitted to assume a note owed by the Target to certain shareholders thereof
with an outstanding principal amount of approximately $3,160,000 (the
"Shareholder Note"), so long as (i) at least $1,910,000 in principal of the
Shareholder Note is repaid by the Borrower and/or one of its Wholly Owned
Subsidiaries within one week following the closing of the Acquisition (with the
amount of such repayment not to apply toward the basket contained in clause
(iv)(C) of the last paragraph of the definition of Permitted Acquisition (as in
effect after giving effect to this Amendment)) and (ii) concurrently with the
closing of the Acquisition, approximately $1,250,000 in principal of such
Shareholder Note shall be cancelled and exchanged for a USI Seller Note
complying with the terms of the Credit Agreement as amended hereby.

          2.     The definition of "Permitted Acquisition" appearing in Section
1.1 of the Credit Agreement is hereby amended by inserting the following
paragraph immediately following the end of said definition:

     "Notwithstanding the foregoing, from the period from the Eighth Amendment
     Effective Date to and including October 1, 2003 (the "Period"), the
     Borrower and

<PAGE>

     its Wholly Owned Subsidiaries may acquire Permitted Businesses, so long as
     (i) the revenues for all Permitted Businesses acquired during such period
     are not greater than $25,000,000 in the aggregate (calculated for each
     Permitted Business acquired, for the 12-month period most recently ended
     for such Permitted Business prior to the acquisition thereof), (ii) the
     total cash consideration (excluding any payments scheduled to be made after
     the Term Loan Maturity Date and the Revolving Credit Loan Maturity Date)
     for all such acquisitions consummated during such period is not greater
     than $16,000,000, (iii) the aggregate Acquisition Consideration for each
     such acquisition does not exceed 6.5 times the projected Consolidated
     EBITDA of the business acquired (such projections to be determined by the
     Borrower based upon reasonable assumptions and the past performance of the
     acquired business) for the twelve months following the acquisition, (iv)
     any USI Seller Notes issued in connection with any such acquisition is (A)
     Permitted Seller Debt, (B) subordinated to the obligations under the Credit
     Agreement pursuant to a subordination agreement in the form of Exhibit K
     hereto or otherwise in form and substance satisfactory to the
     Administrative Agent and (C) does not require any scheduled principal
     payments in connection therewith prior to the Term Loan Maturity Date or
     the Revolving Credit Loan Maturity Date, if such payments would cause the
     aggregate amount of principal payments in respect of USI Seller Notes
     incurred in connection with all businesses acquired during the Period and
     due prior to December 31, 2003 to exceed $1,000,000, and (v) the conditions
     set forth in clauses (x) and (y)(a) (excluding clause (a)(ii)), (c), (d),
     (e), (f) and (g) of this definition are satisfied as of the date of such
     acquisition."

          3.     Section 1.1 of the Credit Agreement is hereby further amended
by inserting the following defined terms in the appropriate alphabetical order:

          "Eighth Amendment" shall mean the Eighth Amendment and Consent to this
     Agreement, dated as of January 31, 2003.

          "Eighth Amendment Effective Date" shall have the meaning provided in
     the Eighth Amendment.

          4.     Section 7.1(a) of the Credit Agreement is hereby amended by
deleting the table appearing therein in its entirety and inserting the following
new table in lieu thereof:

                      Date                                  Ratio
                      -------------------------------       -----
                      March 31, 2000                         4.85
                      June 30, 2000                          4.75
                      September 30, 2000                     4.50
                      December 31, 2000                      4.25
                      March 31, 2001                         3.75
                      June 30, 2001                          4.00
                      September 30, 2001                     4.00
                      December 31, 2001                      4.25
                      March 31, 2002                        4.375
                      June 30, 2002                         4.125
                      September 30, 2002                     3.95

                                       -2-

<PAGE>

                      Date                                  Ratio
                      -------------------------------       -----
                      December 31, 2002                      3.75
                      March 31, 2003                         2.50
                      June 30,  2003 and the last day
                       of each fiscal quarter
                       thereafter                            2.25

          5.     Section 7.1(c) of the Credit Agreement is hereby amended by
deleting the table appearing therein in its entirety and inserting the following
new table in lieu thereof:

                      Date                                    Ratio
                      --------------------                   -------
                      March 31, 2000                         no test
                      June 30, 2000                          no test
                      September 30, 2000                     no test
                      December 31, 2000                      no test
                      March 31, 2001                         no test
                      June 30, 2001                          no test
                      September 30, 2001                     no test
                      December 31, 2001                      no test
                      March 31, 2002                         no test
                      June 30, 2002                          no test
                      September 30, 2002                     no test
                      December 31, 2002                      no test
                      March 31, 2003                           1.00
                      June 30, 2003                            1.10
                      September 30, 2003                       1.20
                      December 31, 2003                        1.30
                      March 31, 2004                         no test
                      June 30, 2004                          no test
                      September 30, 2004                     no test

          6.     Section 7.1(d) of the Credit Agreement is hereby amended by
deleting the table appearing therein in its entirety and inserting the following
new table in lieu thereof:

                      Fiscal Quarter                        Amount
                      --------------------               -------------
                      March 31, 2000                     $ 190,000,000
                      June 30, 2000                      $ 190,000,000
                      September 30, 2000                 $ 190,000,000
                      December 31, 2000                  $ 190,000,000
                      March 31, 2001                     $ 185,000,000
                      June 30, 2001                      $ 175,000,000
                      September 30, 2001                 $ 170,000,000
                      December 31, 2001                  $ 124,000,000
                      March 31, 2002                     $ 107,000,000
                      June 30, 2002                      $ 101,000,000
                      September 30, 2002                 $ 101,000,000

                                       -3-

<PAGE>

                      Fiscal Quarter                        Amount
                      --------------------               -------------
                      December 31, 2002                  $ 101,000,000
                      March 31, 2003                     $ 180,000,000
                      June 30, 2003                      $ 185,000,000
                      September 30, 2003                 $ 185,000,000
                      December 31, 2003                  $ 190,000,000
                      March 31, 2004                     $ 250,000,000
                      June 30, 2004                      $ 250,000,000
                      September 30, 2004                 $ 250,000,000

          7.     Section 7.1 of the Credit Agreement is hereby further amended
by inserting the following new clause (f) immediately following clause (e)
thereof:

          "(f)   In determining whether the Borrower has complied with the
     financial covenants contained in Sections 7.1(a), (b), (c) and (d), any
     computation to determine compliance with such financial covenants shall
     exclude items listed as discontinued operations on a financial statement
     prepared in accordance with GAAP and delivered to the Administrative Agent
     pursuant to Section 6.1(a) or (b).

          8.     The Credit Agreement is hereby further by amended by inserting
Exhibit K attached hereto.

          9.     The Borrower hereby represents and warrants that (x) all
representations and warranties contained in Section 4 of the Credit Agreement
are true and correct in all material respects on and as of the Eighth Amendment
Effective Date (as defined below) after giving effect to this Amendment (unless
such representations and warranties relate to a specific earlier date, in which
case such representations and warranties shall be true and correct as of such
earlier date) and (y) there exists no Default or Event of Default on the Eighth
Amendment Effective Date, after giving effect to this Amendment.

          10.    This Amendment is limited as specified and shall not constitute
a modification, acceptance or waiver of any provision of the Credit Agreement or
any other Loan Document except as expressly set forth herein.

          11.    This Amendment may be executed in any number of counterparts
and by the different parties hereto on separate counterparts, each of which
counterparts when executed and delivered shall be an original, but all of which
shall together constitute one and the same instrument. A complete set of
counterparts shall be lodged with the Borrower and the Administrative Agent.

          12.    THIS AMENDMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES
HEREUNDER SHALL BE CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY THE LAW OF THE
STATE OF NEW YORK.

          13.    This Amendment shall become effective on the date (the "Eighth
Amendment Effective Date") when each of the Borrower and the Required Lenders
shall have

                                       -4-

<PAGE>

signed a counterpart hereof (whether the same or different counterparts) and
shall have delivered (including by way of facsimile transmission) the same to
the Administrative Agent at its notice office.

          14.    From and after the Eighth Amendment Effective Date, all
references in the Credit Agreement and each of the Loan Documents to the Credit
Agreement shall be deemed to be references to the Credit Agreement after giving
effect to this Amendment.

                                      * * *

                                       -5-

<PAGE>

          IN WITNESS WHEREOF, the parties hereto have caused a counterpart of
this Amendment to be duly executed and delivered as of the date first above
written.

                                        U.S.I. HOLDINGS CORPORATION

                                        By  /s/ ROBERT SCHNEIDER
                                           -------------------------------------
                                           Name:   Robert S. Schneider
                                           Title:  Executive Vice President of
                                                   Finance and Administration

                                        CREDIT LYONNAIS CAYMAN ISLAND BRANCH

                                        By  /s/ W. MICHAEL GEORGE
                                           -------------------------------------
                                           Name:   W. Michael George
                                           Title:  Authorized Signature

                                        JPMORGAN CHASE BANK

                                        By  /s/ MARYBETH MULLEN
                                           -------------------------------------
                                           Name:   Marybeth Mullen
                                           Title:  Vice President
                                                   JP Morgan Chase Bank

                                        FIRSTAR BANK, N.A.

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

<PAGE>

                                        LASALLE BANK NATIONAL
                                           ASSOCIATION

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

                                        PILGRIM PRIME RATE TRUST
                                           By: Pilgrim Investments, Inc.
                                               as its investment manager

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

                                        PILGRIM AMERICA HIGH INCOME
                                           INVESTMENTS, LTD.
                                           By: Pilgrim Investments, Inc.
                                               as its investment manager

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

<PAGE>

                                                                       EXHIBIT K

                            SUBORDINATION PROVISIONS

          Section 1.01.  Subordination of Liabilities. U.S.I. Holdings
Corporation (the "Company"), for itself, and its successors and assigns,
covenants and agrees, and each holder of the Note to which this Annex A is
attached (the "Note") by its acceptance thereof likewise covenants and agrees,
that the payment of the principal of, interest on, and all other amounts owing
in respect of, the Note (the "Subordinated Indebtedness") is hereby expressly
subordinated, to the extent and in the manner hereinafter set forth, to the
prior payment in full in cash of all Senior Indebtedness (as defined in Section
1.07 of this Annex A). The provisions of this Annex A shall constitute a
continuing offer to all persons who, in reliance upon such provisions, become
holders of, or continue to hold, Senior Indebtedness, and such provisions are
made for the benefit of the holders of Senior Indebtedness, and such holders are
hereby made obligees hereunder the same as if their names were written herein as
such, and they and/or each of them may proceed to enforce such provisions.

          Section 1.02.  Company Not to Make Payments with Respect to
Subordinated Indebtedness in Certain Circumstances. (a) Upon the maturity of any
Senior Indebtedness (including interest thereon or fees or any other amounts
owing in respect thereof), whether at stated maturity, by acceleration or
otherwise, all Obligations (as defined in Section 1.07 of this Annex A) owing in
respect thereof shall first be paid in full in cash, before any payment (whether
in cash, property, securities or otherwise) is made on account of the
Subordinated Indebtedness.

          (b)    The Company may not, directly or indirectly, make any payment
of any Subordinated Indebtedness and may not acquire any Subordinated
Indebtedness for cash or property until all Senior Indebtedness has been paid in
full in cash if any Event of Default under (and as defined in) the Credit
Agreement referred to below or any other issue of Senior Indebtedness is then in
existence or would result therefrom.

          (c)    In the event that, notwithstanding the provisions of the
preceding subsections (a) and (b) of this Section 1.02, the Company shall make
any payment on account of the Subordinated Indebtedness at a time when payment
is not permitted by said subsection (a) or (b), such payment shall be held by
the holder of the Note, in trust for the benefit of, and shall be paid forthwith
over and delivered to, the holders of Senior Indebtedness or their
representative or the trustee under the indenture or other agreement pursuant to
which any instruments evidencing any Senior Indebtedness may have been issued,
as their respective interests may appear, for application pro rata to the
payment of all Senior Indebtedness (after giving effect to the relative
priorities of such Senior Indebtedness) remaining unpaid to the extent necessary
to pay all Senior Indebtedness in full in cash in accordance with the terms of
such Senior Indebtedness, after giving effect to any concurrent payment or
distribution to or for the holders of Senior Indebtedness. Without in any way
modifying the provisions of this Annex A or affecting the subordination effected
hereby if the hereafter referenced notice is not given, the Company shall give
the holder of the Note prompt written notice of any event which would prevent
payments under Section 1.02(a) or (b) hereof.

          Section 1.03.  Subordination to Prior Payment of All Senior
Indebtedness on Dissolution, Liquidation or Reorganization of Company. Upon any
distribution of assets of the

<PAGE>

                                                                       Exhibit K
                                                                          Page 2

Company upon dissolution, winding up, liquidation or reorganization of the
Company (whether in bankruptcy, insolvency or receivership proceedings or upon
an assignment for the benefit of creditors or otherwise):

          (a)    the holders of all Senior Indebtedness shall first be entitled
to receive payment in full in cash of all Senior Indebtedness (including,
without limitation, post-petition interest at the rate provided in the
documentation with respect to the Senior Indebtedness, whether or not such
post-petition interest is an allowed claim against the debtor in any bankruptcy
or similar proceeding) before the holder of the Note is entitled to receive any
payment of any kind or character on account of the Subordinated Indebtedness;

          (b)    any payment or distributions of assets of the Company of any
kind or character, whether in cash, property or securities to which the holder
of the Note would be entitled except for the provisions of this Annex A, shall
be paid by the liquidating trustee or agent or other person making such payment
or distribution, whether a trustee in bankruptcy, a receiver or liquidating
trustee or other trustee or agent, directly to the holders of Senior
Indebtedness or their representative or representatives, or to the trustee or
trustees under any indenture under which any instruments evidencing any such
Senior Indebtedness may have been issued, to the extent necessary to make
payment in full in cash of all Senior Indebtedness remaining unpaid, after
giving effect to any concurrent payment or distribution to the holders of such
Senior Indebtedness; and

          (c)    in the event that, notwithstanding the foregoing provisions of
this Section 1.03, any payment or distribution of assets of the Company of any
kind or character, whether in cash, property or securities, shall be received by
the holder of the Note on account of Subordinated Indebtedness before all Senior
Indebtedness is paid in full in cash, such payment or distribution shall be
received and held in trust for and shall be paid over to the holders of the
Senior Indebtedness (after giving effect to the relative priorities of such
Senior Indebtedness) remaining unpaid or unprovided for or their representative
or representatives, or to the trustee or trustees under any indenture under
which any instruments evidencing any of such Senior Indebtedness may have been
issued, for application to the payment of such Senior Indebtedness until all
such Senior Indebtedness shall have been paid in full in cash, after giving
effect to any concurrent payment or distribution to the holders of such Senior
Indebtedness.

          Without in any way modifying the provisions of this Annex A or
affecting the subordination effected hereby if the hereafter referenced notice
is not given, the Company shall give prompt written notice to the holder of the
Note of any dissolution, winding up, liquidation or reorganization of the
Company (whether in bankruptcy, insolvency or receivership proceedings or upon
assignment for the benefit of creditors or otherwise).

          Section 1.04.  Subrogation. Subject to the prior payment in full in
cash of all Senior Indebtedness, the holder of the Note shall be subrogated to
the rights of the holders of Senior Indebtedness to receive payments or
distributions of assets of the Company applicable to the Senior Indebtedness
until all amounts owing on the Note shall be paid in full, and for the purpose
of such subrogation no payments or distributions to the holders of the Senior
Indebtedness by or on behalf of the Company or by or on behalf of the holder of
the Note by virtue of this Annex A which otherwise would have been made to the
holder of the Note shall, as

<PAGE>

                                                                       Exhibit K
                                                                          Page 3

between the Company, its creditors other than the holders of Senior
Indebtedness, and the holder of the Note, be deemed to be payment by the Company
to or on account of the Senior Indebtedness, it being understood that the
provisions of this Annex A are and are intended solely or the purpose of
defining the relative rights of the holder of the Note, on the one hand, and the
holders of the Senior Indebtedness, on the other hand.

          Section 1.05.  Obligation of the Company Unconditional. Nothing
contained in this Annex A is intended to or shall impair, as between the Company
and the holder of the Note, the obligation of the Company, to pay to the holder
of the Note the principal of and interest on the Note as and when the same shall
become due and payable in accordance with their terms, or is intended to or
shall affect the relative rights of the holder of the Note and other creditors
of the Company other than the holders of the Senior Indebtedness, nor shall
anything herein or therein prevent the holder of the Note from exercising all
remedies otherwise permitted by applicable law, subject to the rights, if any,
under this Annex A of the holders of Senior Indebtedness in respect of cash,
property, or securities of the Company received upon the exercise of any such
remedy.

          Section 1.06.  Subordination Rights Not Impaired by Acts or Omissions
of Company or Holders of Senior Indebtedness. No right of any present or future
holders of any Senior Indebtedness to enforce subordination as herein provided
shall at any time in any way be prejudiced or impaired by any act or failure to
act on the part of the Company or by any act or failure to act in good faith by
any such holder, or by any noncompliance by the Company with the terms and
provisions of the Note, regardless of any knowledge thereof which any such
holder may have or be otherwise charged with. The holders of the Senior
Indebtedness may, without in any way affecting the obligations of the holder of
the Note with respect hereto, at any time or from time to time and in their
absolute discretion, change the manner, place or terms of payment of, change or
extend the time of payment of, or renew or alter, any Senior Indebtedness or
amend, modify or supplement any agreement or instrument governing or evidencing
such Senior Indebtedness or any other document referred to therein, or exercise
or refrain from exercising any other of their rights under the Senior
Indebtedness including, without limitation, the waiver of default thereunder and
the release of any collateral securing such Senior Indebtedness, all without
notice to or assent from the holder of the Note.

          Section 1.07.  Senior Indebtedness. The term "Senior Indebtedness"
shall mean all Obligations (i) of the Company under, or in respect of, the
Credit Agreement (as amended, modified, supplemented, extended, restated,
refinanced, replaced or refunded from time to time, the "Credit Agreement"),
dated as of September 17, 1999, among the Company, the lenders from time to time
party thereto, and Credit Lyonnais Cayman Island Branch, as Administrative
Agent, and each other Loan Document (as defined in the Credit Agreement) to
which the Company is a party and any renewal, extension, restatement,
refinancing or refunding of any thereof and (ii) of the Company under, or in
respect of, any Interest Rate Protection Agreements (as defined in the Credit
Agreement), including any guaranty thereof. As used herein, the term
"Obligation" shall mean all principal, interest, premium, reimbursement
obligations, penalties, fees, expenses, indemnities and other liabilities and
obligations (including any guaranties of the foregoing liabilities and
obligations) payable under the documentation governing any Senior Indebtedness
(including interest after the commencement of any bankruptcy, insolvency,
receivership or

<PAGE>

                                                                       Exhibit K
                                                                          Page 4

similar proceeding at the rate provided in the documentation with respect
thereto, whether or not such interest is an allowed claim against the debtor in
any such proceeding).

*

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