Document:

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                                                                    EXHIBIT 10.1

                              EMPLOYMENT AGREEMENT

     This Employment Agreement ("Agreement"), including the attached Exhibit
"A," is entered into between NORTHERN PLAINS NATURAL GAS ("Employer") and JERRY
L. PETERS ("Employee"), to be effective as of April 1, 2002 (the "Effective
Date"). Employer and Employee agree as follows:

ARTICLE 1: EMPLOYMENT, COMPENSATION AND BENEFITS

     1.1 Term and Position. Employer agrees to employ Employee, and Employee
agrees to be employed by Employer for the Term (the "Term") described in Exhibit
"A." Employer may assign Employee to a different position or modify Employee's
duties and responsibilities.

     1.2 Compensation. Employee shall be paid as set forth in Exhibit "A".

     1.3 Benefits. Employee shall be allowed to participate, on the same basis
generally as other employees employed in the same or similar positions, in all
general employee benefit plans and programs that Employer has made available to
Employer's employees on or after the Effective Date. Nothing in this Agreement
is to be construed to provide greater rights, participation, coverage, or
benefits than provided to similarly situated employees pursuant to the terms of
such benefit plans and programs. Employer is not obligated to institute,
maintain, or refrain from changing, amending, or discontinuing any such benefit
program or plan, so long as such actions are similarly applicable to covered
employees generally. Copies of benefit plans will be made available to Employee
upon request. Additionally, compensation and benefits payable under this
agreement shall be offset by any amounts, which Employee owes Employer,
including the value of Employer's property, upon the termination of Employee's
employment under this agreement.

ARTICLE 2: TERMINATION BEFORE THE TERM EXPIRES AND EFFECTS OF SUCH TERMINATION

     2.1. Termination By Employer. Employer may terminate Employee's employment
before the Term expires for the following reasons:

          a. Cause. For "cause" upon the determination by Employer that "cause"
     exists to terminate the Employee. "Cause" means (i) Employee's gross
     negligence, willful misconduct, or neglect in the performance of the duties
     and services as an employee; (ii) Employee's final conviction of a felony
     by a trial court; (iii) Employee's breach of any provision of this
     Agreement; (iv) Employee's violation of any material policy of Employer or
     Enron; or (v) Employee's violation of any federal, state, or local law or
     regulation in the performance of his or her duties for Employer. If
     Employer terminates Employee's employment for Cause, Employee shall be
     entitled only to his or her pro rata salary through the date of such
     termination, and all future compensation and benefits, other than benefits
     to which Employee is entitled under the terms of Employer or Enron
     compensation and/or benefit plans, shall cease.

          b. Involuntary Termination. Involuntary Termination at Employer's
     option may occur for any reason whatsoever, including termination without
     cause, in the sole discretion of Employer. Upon an Involuntary Termination
     before the Term expires, Employee is entitled to receive the amount of one
     year's annual base salary and performance bonus and any benefits to which
     Employee is entitled to under the terms of the Employer and/or Enron
     compensation and/or benefit plans. This amount will be calculated by taking
     the average of Employee's annual base salary and performance bonus for the
     last two years of Employee's employment with Employer or another Enron
     affiliate. Fifty percent of the amount shall be paid in six (6)
     installments each month during the first six (6) months following

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     the Involuntary Termination; the remaining fifty percent will be paid in a
     single lump-sum payment at the end of that six-month period. This amount
     supercedes any payments contemplated under the Employers' Severance Plan
     and Employee shall not be eligible to receive benefits under Employer's
     Severance Plan in the event of an Involuntary Termination during the Term
     of this Agreement.

          c. Death/Disability. Upon Employee's (i) death, or (ii) becoming
     incapacitated or disabled so as to entitle Employee to benefits under
     Employer's long-term disability plan, or (iii) becoming permanently and
     totally unable to perform Employee's duties for Employer as a result of any
     physical or mental impairment as confirmed by a written opinion by a
     physician selected by Employer, and upon termination of employment under
     this paragraph, Employee or Employee's heirs shall be entitled only to
     Employee's pro rata salary through the date of such termination, and all
     future compensation and benefits, other than benefits to which Employee is
     entitled under the terms of Employer or Enron compensation and/or benefit
     plans including the Stay Bonus on Exhibit A, shall cease.

     2.2 Termination By Employee. Employee may terminate the employment
relationship before the Term expires for the following reasons:

          a. Breach by Employer. A material breach by Employer of any material
     provision of this Agreement, which remains uncorrected for 30 days
     following Employee's written notice to Employer of such breach. Upon such a
     termination, Employee shall be entitled to receive the amount of one year's
     annual base salary and performance bonus ("Amount"). This Amount will be
     calculated by taking the average of Employee's annual base salary and
     performance bonus for the last two years of Employee's employment with
     Employer or another Enron affiliate. Fifty percent of the Amount shall be
     paid in six (6) equal installments each month during the first six (6)
     months following the Involuntary Termination; the remaining fifty percent
     will be paid in a single lump-sum payment at the end of that six-month
     period.

          b. Voluntary Termination. For any other reason whatsoever, in
     Employee's sole discretion. Upon a Voluntary Termination before the Term
     expires, all of Employee's future compensation and benefits, other than
     benefits to which Employee is entitled under the terms of Employer or Enron
     compensation and/or benefit plans, shall cease as of the date of
     termination, and Employee shall be entitled only to pro rata salary through
     the termination date.

     2.3 Offset. The compensation and benefits payable to Employee under this
Agreement upon termination of employment shall offset any amounts to which
Employee otherwise may be entitled under the Employer's Severance Pay Plan, or
amounts (including the value of Employer's property) that Employee owes to
Employer.

     2.4 Continuing Obligations. Neither termination of employment nor
expiration of the Term terminates the continuing obligations of this Agreement,
including obligations under Articles 3 and 4.1.

     2.5 Employment Beyond Term. Should Employee remain employed by Employer
after the Term expires, such employment shall convert to an employment-at-will
relationship, terminable at any time by either Employer or Employee for any
reason whatsoever, with or without cause.

                                     Page 2
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ARTICLE 3: CONFIDENTIAL INFORMATION; POST-EMPLOYMENT OBLIGATIONS

     3.1 This Agreement. The terms of this Agreement constitute confidential
information, which Employee shall not disclose to anyone other than Employee's
spouse, attorneys, tax advisors, or as required by law. Disclosure of these
terms is a material breach of this Agreement and could subject Employee to
disciplinary action, including without limitation, termination of employment for
cause.

     3.2 Confidential Information: Non-Disclosure. Employee acknowledges that
the business of Employer, Enron, and their affiliates is highly competitive and
that Employer has agreed to provide and immediately will provide Employee with
access to Confidential Information relating to the business of Employer, Enron,
and their affiliates. "Confidential Information" means and includes Employer's
confidential and/or proprietary information and/or trade secrets that have been
developed or used and/or will be developed and that cannot be obtained readily
by third parties from outside sources. Confidential Information includes, by way
of example and without limitation, the following: information regarding
customers, employees, contractors, and the industry not generally known to the
public; strategies, methods, books, records and documents; technical information
concerning products, equipment, services, and process; procurement procedures
and pricing techniques; the names of and other information concerning customers,
investors, and business affiliates (such as contact name, service provided,
pricing for that customer, type and amount of services used, credit and
financial data, and/or other information relating to Employer's relationship
with that customer); pricing strategies and price curves; positions; plans and
strategies for expansion, acquisitions or divestitures; budgets; customers
lists; research; financial and sales data; trading methodologies and terms;
evaluations, opinions, and interpretations of information and data; marketing
and merchandising techniques; prospective customers' names and marks; grids and
maps; electronic databases; models; specifications; computer programs; internal
business records; contracts benefiting or obligating Employer; bids or proposals
submitted to any third party; technologies and methods; training methods and
training processes; organizational structure; personnel information, including
salaries of personnel; payment amounts or rates paid to consultants or other
service providers; and other such confidential or proprietary information.
Employee acknowledges that this Confidential Information constitutes a valuable,
special, and unique asset used by Employer, Enron, or their affiliates in their
businesses to obtain a competitive advantage over their competitors. Employee
further acknowledges that protection of such Confidential Information against
unauthorized disclosure and use is of critical importance to Employer, Enron,
and their affiliates in maintaining their competitive position. Employee also
will have access to, or knowledge of, Confidential Information of third parties,
such as actual and potential customers, suppliers, partners, joint ventures,
investors, financing sources and the like, of Employer, Enron, and their
affiliates. Employer also agrees to provide Employee with immediate access to
Confidential Information and specialized training regarding Employer's
methodologies and business strategies, which will enable Employee to perform his
or her job at Employer

     Employee agrees that Employee will not, at any time during or after
Employee's employment with Employer make any unauthorized disclosure of any
Confidential Information or specialized training of Employer, Enron, or their
affiliates, or make any use thereof, except in the carrying out of his or her
employment responsibilities hereunder. Employee also agrees to preserve and
protect the confidentiality of third party Confidential Information to the same
extent, and on the same basis, as Employer's Confidential Information.

     3.3 Employer's Property. All written materials, records, data, and other
documents prepared or possessed by Employee during Employee's employment by
Employer are Employer's property. All information, ideas, concepts,
improvements, discoveries, and inventions that are conceived, made, developed,

                                     Page 3
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or acquired by Employee individually or in conjunction with others during
Employee's employment (whether during business hours and whether on Employer's
premises or otherwise) which relate to Employer's business, products, or
services are Employer's sole and exclusive property. All memoranda, notes,
records, files, correspondence, drawings, manuals, models, specifications,
computer programs, maps, and all other documents, data, or materials of any type
embodying such information, ideas, concepts, improvements, discoveries, and
inventions are Employer's property. At the termination of Employee's employment
with Employer for any reason, Employee shall return all of Employer's documents,
data, or other Employer property to Employer.

     3.4 Non-Competition Obligations. Employer agrees to and shall provide
Employee with immediate access to Confidential Information. Ancillary to the
rights provided to Employee following Involuntary Termination, Employer's
provision of Confidential Information to Employee, and Employee's agreement not
to disclose Confidential Information, and in order to protect the Confidential
Information described above, Employer and Employee agree to the following
non-competition provisions. Employee agrees that during the Period of
Post-Employment Non-Competition Obligations defined in Exhibit "A," Employee
will not, directly or indirectly, for Employee or for others, in the Geographic
Region of Responsibility described on Exhibit "A" (or, if Employee's Geographic
Region has changed, in any and all geographic regions in which Employee has
worked during the 12-month period immediately preceding Employee's termination
of Employment):

          a. engage in any business competitive with the business conducted by
     Employer;

          b. render advice or services to, or otherwise assist, any other
     person, association, or entity who is engaged, directly or indirectly, in
     any business competitive with the business conducted by Employer.

Employee understands that the foregoing restrictions may limit his or her
ability to engage in certain businesses in the geographic region and during the
period provided for above, but acknowledges that these restrictions are
necessary to protect the Confidential Information Employer has provided to
Employee.

     3.5 Non-Solicitation of Customers. For the Period of Non-Solicitation of
Customers described on Exhibit "A," Employee will not call on, service, or
solicit competing business from customers of Employer, Enron, or their
affiliates whom that Employee, within the previous twelve (12) months, (i) had
or made contact with, or (ii) had access to information and files about.

     3.6 Non-Solicitation of Employees. During Employee's employment, and for a
period of twelve (12) months following Employee's termination date, Employee
will not, either directly or indirectly, call on, solicit, or induce any other
employee or officer of Employer, Enron, or their affiliates with whom Employee
had contact, knowledge of, or association with in the course of employment with
Employer to terminate his or her employment, and will not assist any other
person or entity in such a solicitation.

     3.7 Statements About Employer. Employee shall refrain, both during and
after Employee's employment, from publishing any oral or written statements
about Employer, Enron or any of its subsidiaries or affiliates, or any of such
entities' officers, employees, agents, or representatives that are disparaging,
slanderous, libelous, or defamatory; or that disclose private or confidential
information about their business affairs; or that constitute an intrusion into
their seclusion or private lives; or that give rise to unreasonable publicity
about their private lives; or that place them in a false light before the
public; or that constitute a misappropriation of their names or likeness.

                                     Page 4
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     3.8 Early Resolution Conference/Arbitration. The parties are entering into
this Agreement with the express understanding that this Agreement is clear and
fully enforceable as written. If Employee ever decides to contend that any
restriction on activities imposed by this Agreement are no longer enforceable as
written or do not apply to an activity Employee intends to engage, Employee
first will notify Employer's Chief Executive Officer in writing and meet with a
company representative at least fourteen (14) days before engaging in any
activity that foreseeably could fall within the questioned restriction to
discuss resolution of such claims (an "Early Resolution Conference"). Should the
parties not be able to resolve disputes at the Early Resolution Conference, the
parties agree to use confidential, binding arbitration to resolve the disputes.
The arbitration shall be conducted in accordance with the Commercial Arbitration
Rules of the American Arbitration Association before an arbitrator licensed to
practice law in Texas. Either party may seek a temporary restraining order,
injunction, specific performance, or other equitable relief regarding the
provisions of this Section if the other party fails to comply with obligations
stated herein. The parties' agreement to arbitrate applies only to the matters
subject to an Early Resolution Conference.

     3.9 Warranty and Indemnification. Employee warrants that Employee is not a
party to any restrictive agreement limiting Employee's activities in his/her
employment by Employer. Employee further warrants that at the time of the
signing of this Agreement, Employee knows of no written or oral contract or of
any other impediment that would inhibit or prohibit employment with Employer,
and that Employee will not knowingly use any trade secret, confidential
information, or other intellectual property right of any other party in the
performance of Employee's duties hereunder. Employee shall hold Employer
harmless from any and all suits and claims arising out of any breach of such
restrictive agreement or contracts.

ARTICLE 4: MISCELLANEOUS

     4.1 Notices. Notices and all other communications shall be in writing and
shall be deemed to have been duly given when personally delivered or when mailed
by United States registered or certified mail. Notices to Employer shall be sent
to NORTHERN PLAINS NATURAL GAS, 1400 Smith Street, Houston, Texas 77002,
Attention: Corporate Secretary. Notices and communications to Employee shall be
sent to the address Employee most recently provided to Employer in writing.

     4.2 No Waiver. Other than as described in Section 2.2 a, no failure by
either party at any time to give notice of any breach by the other party of, or
to require compliance with, any condition or provision of this Agreement shall
be deemed a waiver of any provisions or conditions of this Agreement.

     4.3 Mediation. If a dispute arises out of or related to Employee's
employment with Employer, other than a dispute regarding Employee's obligations
under Articles 3 and 4.1 of this Agreement, and if the dispute cannot be settled
through direct discussions, then Employer and Employee agree to try to settle
the dispute in an amicable manner by confidential mediation before having
recourse to any other proceeding or forum.

     4.4 Venue/Jurisdictions. This Agreement shall be governed by Texas law. No
conflict of laws analysis will be used to make any other law apply for any
reason. Any litigation that may be brought by either party involving the
enforcement of this Agreement or the rights, duties, or obligations of this
Agreement, shall be brought exclusively in the State or federal courts sitting
in Houston, Harris County, Texas.

     4.5 Assignment. This Agreement shall be binding upon and inure to the
benefit of Employer and any other person, association, or entity that may
acquire or succeed to all or substantially all of the business or assets of
Employer. Employer may assign this Agreement to any affiliate or other entity.
Employee's rights

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and obligations under this Agreement are personal, and they shall not be
assigned or transferred without Employer's prior written consent.

     4.6 Other Agreements. Other agreements exist between Employer and Employee
relating to the employment relationship (e.g., obligations contained in Enron's
Code of Ethics booklet and benefit plans). Company incorporates by reference all
of the terms of "Type B" Agreement and/or the Confidentiality and Intellectual
Property Rights Agreement dated February 18, 1985 between Employee and Employer.
This Agreement replaces and merges other, previous agreements, and constitutes
the entire agreement of the parties with respect to such subject matters. No
representation, inducement, promise, or agreement has been made by either party
with respect to such subject matters, and no agreement, statement, or promise
relating to the employment of Employee by Employer is not contained in this
Agreement shall be valid or binding. Any modification of this Agreement will be
effective only if it is in writing and signed by each party.

     4.7 Invalidity. Should any provision(s) in this Agreement be held by a
court of competent jurisdiction to be invalid, void, or unenforceable, the
remaining provisions shall be unaffected and shall continue in full force and
effect, and the invalid, void or unenforceable provision(s) shall be deemed not
to be part of this Agreement.

     IN WITNESS WHEREOF, Employer and Employee have executed this Agreement in
multiple originals to be effective on the first date of the Term.

NORTHERN PLAINS NATURAL GAS            JERRY L. PETERS

By: /s/ Stanley C. Horton              /s/ Jerry L. Peters
    -------------------------------    -----------------------------------------
    Name: Stanley Horton               This 22nd day of April, 2002
          -------------------------         ----        -----
    Title: Chairman of the Board
           ------------------------
    This 23rd day of April, 2002
         ----        -----------

                                     Page 6
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                                 EXHIBIT "A" TO
                          EMPLOYMENT AGREEMENT BETWEEN
                 NORTHERN PLAINS NATURAL GAS AND JERRY L. PETERS

Employee Name:        Jerry L. Peters

Term:                 April 1, 2002 through March 31, 2003

Position:             Vice President Finance

Location:             Omaha, Nebraska

Monthly Base Salary:  Employee's Monthly Base Salary shall be $13,306.00.
                      Payment is to be made in semi-monthly installments subject
                      to applicable withholding of taxes as required by law.

Performance Bonus:    Employee may be eligible to participate in the annual
                      incentive plan ("Plan") of Employer. All Performance
                      Bonuses are discretionary and shall be paid in accordance
                      with the terms and provisions of the Plan and other
                      criteria established by Employer.

Stay Bonus:           Employee shall receive a Stay Bonus in the amount of
                      $95,803.00. The Stay Bonus Amount shall be paid to
                      Employee as follows:

                      o  25% of the Stay Bonus Amount will be paid to Employee
                         on or about 6 months following implementation of the
                         Employment Agreement;

                      o  The remaining 75% of the Stay Bonus Amount will be paid
                         to the Employee upon completion of the Term of this
                         Agreement.

                      In the event Employee's termination is due to Employee's
                      death or disability prior to the expiration term of this
                      Agreement, Employee or Employee's heirs shall be eligible
                      to receive 100% of any Stay Bonus Amount outstanding. The
                      outstanding Stay Bonus Amount is payable in a lump sum to
                      Employee within thirty (30) days of Employee's termination
                      date due to Employee's death or disability.

                      In the event Employee is Involuntarily Terminated by
                      Employer, for reasons other than "cause", Employee shall
                      be eligible to receive 100% of any Stay Bonus amount
                      outstanding. However, this accelerated Stay Bonus payment
                      shall represent an offset against any payments made under
                      Section 2.1(b).

                      Any unpaid Stay Bonus payments are forfeited upon
                      voluntary termination or termination for "cause", or if
                      Employee retires or voluntarily ceases to report to active
                      employment (unless the law otherwise requires payment).

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Geographic Region of          United States of America
Responsibility:

Period of Post-Employment     Employee's obligations in paragraph 3.4,
Non-Compete Obligations       Non-Competition Obligations and paragraph 3.5,
and Non-Solicitation of       Non-Solicitation of Customers, shall extend for
Customers                     six (6) months following Employee's Voluntary
                              Termination, Involuntary Termination due to
                              failure to meet performance obligations or
                              termination for Cause, if such termination occurs
                              during the Agreement Term, but shall not extend
                              beyond the Agreement Term. In the event of an
                              Involuntary Termination due to business
                              reorganization during the Agreement Term, employee
                              has no non-compete or non-solicitation of
                              customers' requirement that needs to be fulfilled.

NORTHERN PLAINS NATURAL GAS            JERRY L. PETERS

By: /s/Stanley C. Horton               /s/ Jerry L. Peters
    -------------------------------    ------------------------------------
    Name: Stanley Horton               This 22nd day of April, 2002
          -------------------------         ----        -----
    Title: Chairman of the Board
           ------------------------
    This 23rd day of April, 2002
         ----        -----

                                     Page 8<PAGE>

                                                                Exhibit 10.4

                    STEWART INFORMATION SERVICES CORPORATION

                   2002 STOCK OPTION PLAN FOR REGION MANAGERS

<PAGE>

                               TABLE OF CONTENTS

                                                                     SECTION
                                                                     -------

ARTICLE I         PLAN
                  Purpose ...............................................1.1
                  Term of Plan ..........................................1.2
ARTICLE II        DEFINITIONS
                  Affiliate .............................................2.1
                  Board .................................................2.2
                  Code ..................................................2.3
                  Committee .............................................2.4
                  Company ...............................................2.5
                  Employee ..............................................2.6
                  Fair Market Value .....................................2.7
                  Holder ................................................2.8
                  Incentive Option ......................................2.9
                  Mature Shares ........................................2.10
                  Nonqualified Option ..................................2.11
                  Option ...............................................2.12
                  Option Agreement .....................................2.13
                  Plan .................................................2.14
                  Region Manager .......................................2.15
                  Stock ................................................2.16
ARTICLE III       ELIGIBILITY
ARTICLE IV        GENERAL PROVISIONS RELATING TO OPTIONS
                  Authority to Grant Options ............................4.1
                  Dedicated Shares; Maximum Options .....................4.2
                  Non-Transferability ...................................4.3
                  Requirements of Law ...................................4.4
                  Changes in the Company's Capital Structure ............4.5
ARTICLE V         OPTIONS
                  Type of Option ........................................5.1
                  Exercise Price ........................................5.2
                  Duration of Options ...................................5.3
                  Amount Exercisable ....................................5.4
                  Exercise of Options ...................................5.5
                  Substitution Options ..................................5.6
                  No Rights as Stockholder ..............................5.7
ARTICLE VI        ADMINISTRATION
ARTICLE VII       AMENDMENT OR TERMINATION OF PLAN
ARTICLE VIII      MISCELLANEOUS
                  No Establishment of a Trust Fund ......................8.1
                  No Employment Obligation ..............................8.2
                  Forfeiture ............................................8.3
                  Tax Withholding .......................................8.4

                                       ii
<PAGE>

                  Written Agreement .....................................8.5
                  Indemnification of the Committee ......................8.6
                  Gender ................................................8.7
                  Headings ..............................................8.8
                  Other Compensation Plans ..............................8.9
                  Other  Options .......................................8.10
                  Governing Law ........................................8.11

<PAGE>

PLAN

PURPOSE. The Plan is intended to advance the best interests of the Company and
its stockholders by providing those persons who have substantial responsibility
for the management and growth of the Company and its Affiliates with additional
incentives and an opportunity to obtain or increase their proprietary interest
in the Company, thereby encouraging them to continue in their employment with
the Company or any of its Affiliates.

TERM OF PLAN. No Option shall be granted under the Plan after March 18, 2012.
The Plan shall remain in effect until all Options under the Plan have been
satisfied or expired.
<PAGE>

DEFINITIONS

The words and phrases defined in this Article shall have the meaning set out in
these definitions throughout the Plan, unless the context in which any such word
or phrase appears reasonably requires a broader, narrower or different meaning.

"AFFILIATE" means any parent corporation and any subsidiary corporation. The
term "parent corporation" means any corporation (other than the Company) in an
unbroken chain of corporations ending with the Company if, at the time of the
action or transaction, each of the corporations other than the Company owns
stock possessing 50 percent or more of the total combined voting power of all
classes of stock in one of the other corporations in the chain. The term
"subsidiary corporation" means any corporation (other than the Company) in an
unbroken chain of corporations beginning with the Company if, at the time of the
action or transaction, each of the corporations other than the last corporation
in the unbroken chain owns stock possessing 50 percent or more of the total
combined voting power of all classes of stock in one of the other corporations
in the chain.

"BOARD" means the board of directors of the Company.

"CODE" means the Internal Revenue Code of 1986, as amended.

"COMMITTEE" means the Salary Committee of the Company.

"COMPANY" means Stewart Information Services Corporation, a Delaware
corporation.

"EMPLOYEE" means a person employed by the Company or any Affiliate as a common
law employee.

"FAIR MARKET VALUE" of the Stock as of any date means the closing price of the
Stock on such date, or, if the Stock was not traded on such date, on the
immediately preceding day that the Stock was so traded. However, if the Stock is
not listed on a securities exchange or quotation system, the Fair Market Value
will be an amount determined by the Committee.

"HOLDER" means a person who has been granted an Option or any person who is
entitled to receive stock under an Option.

"INCENTIVE OPTION" means an Option granted under the Plan which is designated as
an "Incentive Option" and satisfies the requirements of section 422 of the Code.

"MATURE SHARES" means shares of Stock that the Holder has held for at least six
months.

"NONQUALIFIED OPTION" means an Option granted under the Plan other than an
Incentive Option.

"OPTION" means either an Incentive Option or a Nonqualified Option granted under
the Plan to purchase shares of Stock.

"OPTION AGREEMENT" means the written agreement which sets out the terms of an
Option.

"PLAN" means the Stewart Information Services Corporation 2002 Stock Option Plan
for Region Managers, as set forth in this document and as it may be amended from
time to time.

"REGION MANAGER" means an Employee who holds the title "Region Manager" or an
Employee who the Committee, in its sole discretion, determines has a position
equivalent to the position of a Region Manager.

"STOCK" means the common stock of the Company, $1.00 par value, or, in the event
that the outstanding shares of common stock are later changed into or exchanged
for a different class of stock or securities of the Company or another
corporation, that other stock or security.
<PAGE>

ELIGIBILITY

The individuals who shall be eligible to receive Options shall be those
full-time key Employees, including officers and directors, who are employed on
the date an Option is granted as a Region Manager and who have substantial
responsibility for the management and growth of the Company or any of its
Affiliates as the Committee shall determine from time to time.
<PAGE>

GENERAL PROVISIONS RELATING TO OPTIONS

AUTHORITY TO GRANT OPTIONS. The Committee may grant Options to those eligible
Region Managers as it shall from time to time determine, under the terms and
conditions of the Plan. Factors the Committee may consider include, without
limitation:

Region rank of consolidated STG/STC pretax profit (dollars) in the Region
Manager's territory as reported on the Region Manager's consolidated profit
center statement;

Region rank of profit percentage in the Region Manager's territory as reported
on the Region Manager's STG/STC profit center statement; Region rank of
percentage of policy losses to premiums generated YTD as reported on the Region
Performance Summary Report;

Market share increase in the Region Manger's territory over the prior year as
reported on the quarterly ALTA statistics on market share. Market share weight
will be increased with market share growth in key states and percentage of state
responsibility of Region Manager;

Region rank of percentage increase in Cash to Houston remittances as reported on
the Region Performance Summary Report;

Region rank of percentage of delinquent premium YTD; Net expansion of territory
via acquisitions, branch offices, increased number of agents;

Region Manager incorporation and pursuit of SISCO Strategies (Service,
Technology, Growth, Communication) and Ten Standards in region's goals;

Other contributions towards overall company performance or failure to comply
with company requests. Items considered may include Region Manager rollout of
technology, new products or other programs sponsored by the company, completion
of agency visits, follow-up on audits and training and benefit participation.

The Committee shall evaluate the relative importance of these factors, and the
Region Manager's standing among the recipient group, in its sole and absolute
discretion and shall have full power and authority to determine according to the
above criteria the amount of shares subject to any option, subject only to any
applicable limitations set out in the Plan.

DEDICATED SHARES; MAXIMUM OPTIONS. The aggregate number of shares of Stock with
respect to which Options may be granted under the Plan is 300,000. Such shares
of Stock may be treasury shares or authorized but unissued shares. The number of
shares stated in this Section 4.2 shall be subject to adjustment in accordance
with the provisions of Section 4.5. If any outstanding Option expires or
terminates for any reason or any Option is surrendered, the shares of Stock
allocable to the unexercised portion of that Option may again be subject to an
Option granted under the Plan.

NON-TRANSFERABILITY. Incentive Options shall not be transferable by the Holder
other than by will or under the laws of descent and distribution, and shall be
exercisable, during the Holder's lifetime, only by him or her. Except as
specified in domestic relations court orders, Nonqualified Options shall not be
transferable by the Holder other than by will or under the laws of descent and
distribution, and shall be exercisable, during the Holder's lifetime, only by
him or her. In the discretion of the Committee, any attempt to transfer an
Option other than under the terms of the Plan and the applicable Option
agreement may terminate the Option.

REQUIREMENTS OF LAW. The Company shall not be required to sell or issue any
Stock under any Option if issuing that Stock would constitute or result in a
violation by the Holder or the Company of any provision of any law, statute or
regulation of any governmental authority. Specifically, in connection with any
applicable statute or regulation relating to the registration of securities,
upon exercise of any Option, the Company shall not be required to issue any
Stock unless the Committee has received evidence satisfactory to it to the
effect that the Holder will not transfer the Stock except in accordance with
applicable law, including receipt of an opinion of counsel satisfactory to the
Company to the effect that any proposed transfer complies with applicable law.
The determination by the Committee on this matter shall be final, binding and
conclusive. The Company may, but shall in no event be obligated to, register any
Stock covered by the Plan pursuant to applicable securities laws of any country
or any political subdivision. In the event the Stock issuable on exercise of an
Option is not registered, the Company may imprint on the certificate evidencing
the Stock any legend that counsel for the Company considers necessary or
advisable to comply with applicable law. The Company shall not be obligated to
take any other affirmative action in order to cause the exercise of an Option,
or the issuance of shares pursuant thereto, to comply with any law or regulation
of any governmental authority.

CHANGES IN THE COMPANY'S CAPITAL STRUCTURE.
The existence of outstanding Options shall not affect in any way the right or
power of the Company or its stockholders to make or authorize any or all
adjustments, recapitalizations, reorganizations or other changes in the
Company's capital structure or its business, any merger or consolidation of the
Company, any issue of bonds, debentures, preferred or prior preference stock
ahead of or affecting the Stock or its rights, the dissolution or liquidation of
the Company, any sale or transfer of all or any part of its assets or business
or any other corporate act or proceeding, whether of a similar character or
otherwise. If the Company shall effect a subdivision or consolidation of shares
or other capital readjustment, the payment of a stock dividend, or other
increase or reduction of the number of shares of Stock outstanding, without
receiving compensation for money, services or property, then (i) the number,
class or series and per share price of shares of Stock subject to outstanding
Options under this Plan shall be appropriately adjusted in such a manner as to
entitle a Holder to receive upon exercise of an Option, for the same aggregate
cash consideration, the equivalent total number and class or series of shares
the Holder would have received had the Holder exercised his or her Option in
full immediately prior to the event requiring the adjustment, and (ii) the
number and class or series of shares of Stock then

<PAGE>

reserved to be issued under the Plan shall be adjusted by substituting for the
total number and class or series of shares of Stock then reserved, that number
and class or series of shares of Stock that would have been received by the
owner of an equal number of outstanding shares of each class or series of Stock
as the result of the event requiring the adjustment.

If while unexercised Options remain outstanding under the Plan (i) the Company
shall not be the surviving entity in any merger, consolidation or other
reorganization (or survives only as a subsidiary of an entity other than an
entity that was wholly-owned by the Company immediately prior to such merger,
consolidation or other reorganization), (ii) the Company sells, leases or
exchanges or agrees to sell, lease or exchange all or substantially all of its
assets to any other person or entity (other than an entity wholly-owned by the
Company), (iii) the Company is to be dissolved or (iv) the Company is a party to
any other corporate transaction (as defined under section 424(a) of the Code and
applicable Department of Treasury Regulations) that is not described in clauses
(i), (ii) or (iii) of this sentence (each such event is referred to herein as a
"Corporate Change"), then, except as otherwise provided in an Option Agreement
or as a result of the Board's effectuation of one or more of the alternatives
described below, there shall be no acceleration of the time at which any Option
then outstanding may be exercised, and no later than ten days after the approval
by the stockholders of the Company of such Corporate Change, the Board, acting
in its sole and absolute discretion without the consent or approval of any
Holder, shall act to effect one or more of the following alternatives, which may
vary among individual Holders and which may vary among Options held by any
individual Holder:

accelerate the time at which some or all of the Options then outstanding may be
exercised so that such Options may be exercised in full for a limited period of
time on or before a specified date (before or after such Corporate Change) fixed
by the Board, after which specified date all such Options that remain
unexercised and all rights of Holders thereunder shall terminate;

require the mandatory surrender to the Company by all or selected Holders of
some or all of the then outstanding Options held by such Holders (irrespective
of whether such Options are then exercisable under the provisions of this Plan
or the Option Agreements evidencing such Options) as of a date, before or after
such Corporate Change, specified by the Board, in which event the Board shall
thereupon cancel such Options and the Company shall pay to each such Holder an
amount of cash per share equal to the excess, if any, of the per share price
offered to stockholders of the Company in connection with such Corporate Change
over the exercise prices under such Options for such shares;

with respect to all or selected Holders, have some or all of their then
outstanding Options (whether vested or unvested) assumed or have a new Option
substituted for some or all of their then outstanding Options (whether vested or
unvested) by an entity which is a party to the transaction resulting in such
Corporate Change and which is then employing such Holder or which is affiliated
or associated with such Holder in the same or a substantially similar manner as
the Company prior to the Corporate Change, or a parent or subsidiary of such
entity, provided that (A) such assumption or substitution is on a basis where
the excess of the aggregate fair market value of the shares subject to the
Option immediately after the assumption or substitution over the aggregate
exercise price of such shares is equal to the excess of the aggregate fair
market value of all shares subject to the Option immediately before such
assumption or substitution over the aggregate exercise price of such shares, and
(B) the assumed rights under such existing Option or the substituted rights
under such new Option as the case may be will have the same terms and conditions
as the rights under the existing Option assumed or substituted for, as the case
may be;

provide that the number and class or series of shares of Stock covered by an
Option (whether vested or unvested) theretofore granted shall be adjusted so
that such Option when exercised shall thereafter cover the number and class or
series of shares of stock or other securities or property (including, without
limitation, cash) to which the Holder would have been entitled pursuant to the
terms of the agreement or plan relating to such Corporate Change if, immediately
prior to such Corporate Change, the Holder had been the holder of record of the
number of shares of Stock then covered by such Option; or

make such adjustments to Options then outstanding as the Board deems appropriate
to reflect such Corporate Change (provided, however, that the Board may
determine in its sole and absolute discretion that no such adjustment is
necessary).

In effecting one or more of alternatives (3), (4) or (5) above, and except as
otherwise may be provided in an Option Agreement, the Board, in its sole and
absolute discretion and without the consent or approval of any Holder, may
accelerate the time at which some or all Options then outstanding may be
exercised. In the event of changes in the outstanding Stock by reason of
recapitalizations, reorganizations, mergers, consolidations, combinations,
exchanges or other relevant changes in capitalization occurring after the date
of the grant of any Option and not otherwise provided for by this Section 4.5,
any outstanding Options and any agreements evidencing such Options shall be
subject to adjustment by the Board in its sole and absolute discretion as to the
number and price of shares of stock or other consideration subject to such
Options.

In the event of any such change in the outstanding Stock, the aggregate number
of shares available under this Plan may be appropriately adjusted by the Board,
whose determination shall be conclusive. The issuance by the Company of shares
of stock of any class or series, or securities convertible into shares of stock
of any class or series, for cash or property, or for labor or services either
upon direct sale or upon the exercise of rights or warrants to subscribe for
them, or upon conversion or exchange of shares or obligations of the Company
convertible into, or exchangeable for, shares or other securities, shall not
affect, and no adjustment by reason of such issuance shall be made with respect
to, the number, class or series, or price of shares of Stock then subject to
outstanding Options.

<PAGE>

OPTIONS
TYPE OF OPTION. The Committee shall specify in an Option Agreement whether a
given Option is an Incentive Option or a Nonqualified Option. Notwithstanding
such designation, however, to the extent that the aggregate Fair Market Value
(determined as of the time an Incentive Option is granted) of the Stock with
respect to which incentive stock options first become exercisable by an Employee
during any calendar year (under the Plan and any other incentive stock option
plan(s) of the Company or any Affiliate) exceeds $100,000, the Incentive Option
shall be treated as a Nonqualified Option. In making this determination,
incentive stock options shall be taken into account in the order in which they
were granted.

EXERCISE PRICE. The price for which Stock may be purchased under an Option shall
not be less than 100 percent of the Fair Market Value of the shares of Stock on
the date the Option is granted.

DURATION OF OPTIONS. Unless the Option Agreement specifies a shorter general
term, an Option shall expire on the earliest of the date that is (a) the tenth
anniversary of the date the Option is granted or (b) one day less than three
months after the date of the Holder's termination of employment with the Company
and all Affiliates (other than by reason of the Holder's death) or (c) the date
that is one year after the date of the Holder's death. Unless the Holder's
Option Agreement specifies otherwise, an Option shall not continue to vest after
the severance of the employment relationship between the Company and all
Affiliates.

After the death of the Holder, the Holder's executors, administrators or any
person or persons to whom the Holder's Option may be transferred by will or by
the laws of descent and distribution, shall have the right, at any time prior to
the expiration of the Option to exercise the Option, in respect to the number of
shares that the Holder would have been entitled to exercise if the Holder
exercised the Option prior to the Holder's death.

AMOUNT EXERCISABLE. Each Option may be exercised at the time, in the manner and
subject to the conditions the Committee specifies in the Option Agreement in its
sole discretion.

EXERCISE OF OPTIONS. Each Option shall be exercised by the delivery of written
notice to the Committee setting forth the number of shares of Stock with respect
to which the Option is to be exercised, together with: (a) cash, certified
check, bank draft or postal or express money order payable to the order of the
Company for an amount equal to the exercise price under the Option, (b) Mature
Shares with a Fair Market Value on the date of exercise equal to the exercise
price under the Option, (c) an election to make a cashless exercise through a
registered broker-dealer (if approved in advance by the Committee or by an
executive officer of the Company) or (d) except as specified below, any other
form of payment which is acceptable to the Committee, and specifying the address
to which the certificates for the shares are to be mailed. As promptly as
practicable after receipt of written notification and payment, the Company shall
deliver to the Holder certificates for the number of shares with respect to
which the Option has been exercised, issued in the Holder's name. If Mature
Shares are used for payment by the Holder, the aggregate Fair Market Value of
the shares of Stock tendered must be equal to or less than the aggregate
exercise price of the shares being purchased upon exercise of the Option, and
any difference must be paid by cash, certified check, bank draft or postal or
express money order payable to the order of the Company. Delivery of the shares
shall be deemed effected for all purposes when a stock transfer agent of the
Company shall have deposited the certificates in the United States mail,
addressed to the Holder, at the address specified by the Holder.

Whenever an Option is exercised by exchanging Mature Shares owned by the Holder,
the Holder shall deliver to the Company certificates registered in the name of
the Holder representing a number of shares of Stock legally and beneficially
owned by the Holder, free of all liens, claims and encumbrances of every kind,
accompanied by stock powers duly endorsed in blank by the record holder of the
shares represented by the certificates (with signature guaranteed by a
commercial bank or trust company or by a brokerage firm having a membership on a
registered national stock exchange). The delivery of certificates upon the
exercise of Options is subject to the condition that the person exercising the
Option provide the Company with the information the Company might reasonably
request pertaining to exercise, sale or other disposition.

The Committee may permit a Holder to elect to pay the exercise price upon
exercise of an Option by authorizing a third-party broker to sell all or a
portion of the shares of Stock acquired upon exercise of the Option and remit to
the Company a sufficient portion of the sale proceeds to pay the exercise price
and any applicable tax withholding resulting from such exercise.

The Committee shall not permit a Holder to pay such Holder's exercise price upon
the exercise of an Option by having the Company reduce the number of shares of
Stock that will be delivered to the Holder pursuant to the exercise of the
Option. In addition, the Committee shall not permit a Holder to pay such
Holder's exercise price upon the exercise of an Option by using shares of Stock
other than Mature Shares.

An Option may not be exercised for a fraction of a share of Stock.

SUBSTITUTION OPTIONS. Options may be granted under the Plan from time to time in
substitution for stock options held by employees of other corporations who are
about to become employees of or affiliated with the Company or any Affiliate as
the result of a merger or consolidation of the employing corporation with the
Company or any Affiliate, or the acquisition by the Company or any Affiliate of
the assets of the employing corporation, or the acquisition by the Company or
any Affiliate of stock of the employing corporation as the result of which it
becomes an Affiliate of the Company. The terms and conditions of the substitute
Options granted may vary from the terms and conditions set out in the Plan to
the extent the Committee, at the time of grant, may deem appropriate to conform,
in whole or in part, to the provisions of the stock options in substitution for
which they are granted.

NO RIGHTS AS STOCKHOLDER. No Holder shall have any rights as a stockholder with
respect to Stock covered by such Holder's Option until the date a stock
certificate is issued for the Stock.
<PAGE>

ADMINISTRATION

The Plan shall be administered by the Committee. All questions of interpretation
and application of the Plan and Options shall be subject to the determination of
the Committee. A majority of the members of the Committee shall constitute a
quorum. All determinations of the Committee shall be made by a majority of its
members. Any decision or determination reduced to writing and signed by a
majority of the members shall be as effective as if it had been made by a
majority vote at a meeting properly called and held. The Plan shall be
administered in such a manner as to permit the Options which are designated to
be Incentive Options to qualify as Incentive Options. In carrying out its
authority under the Plan, the Committee shall have full and final authority and
discretion, including but not limited to the following rights, powers and
authorities, to:

determine the persons to whom and the time or times at which Options will be
made;

determine the number of shares and the exercise price of Stock covered in each
Option, subject to the terms of the Plan;

determine the terms, provisions and conditions of each Option, which need not be
identical;

accelerate the time at which any outstanding Option may be exercised;

define the effect, if any, on an Option of the death, disability, retirement or
other termination of employment relationship between the Holder and the Company
and Affiliates;

prescribe, amend and rescind rules and regulations relating to administration of
the Plan; and make all other determinations and take all other actions deemed
necessary, appropriate or advisable for the proper administration of the Plan.

The actions of the Committee in exercising all of the rights, powers, and
authorities set out in this Article and all other Articles of the Plan, when
performed in good faith and in its sole judgment, shall be final, conclusive and
binding on all parties.

<PAGE>

AMENDMENT OR TERMINATION OF PLAN

The Board may amend, terminate or suspend the Plan at any time, in its sole and
absolute discretion; provided, however, that to the extent required to maintain
the status of any Incentive Option under the Code, no amendment that would
change the aggregate number of shares of Stock which may be issued under
Incentive Options, or change the class of Employees eligible to receive
Incentive Options shall be made without the approval of the Company's
stockholders. Subject to the preceding sentence, the Board shall have the power
to make any changes in the Plan and in the regulations and administrative
provisions under it or in any outstanding Incentive Option as in the opinion of
counsel for the Company may be necessary or appropriate from time to time to
enable any Incentive Option granted under the Plan to continue to qualify as an
incentive stock option or such other stock option as may be defined under the
Code so as to receive preferential federal income tax treatment.
<PAGE>

MISCELLANEOUS

NO ESTABLISHMENT OF A TRUST FUND. No property shall be set aside nor shall a
trust fund of any kind be established to secure the rights of any Holder under
the Plan. All Holders shall at all times rely solely upon the general credit of
the Company for the payment of any benefit which becomes payable under the Plan.

NO EMPLOYMENT OBLIGATION. The granting of any Option shall not constitute an
employment contract, express or implied, nor impose upon the Company or any
Affiliate any obligation to employ or continue to employ, or utilize the
services of, any Holder. The right of the Company or any Affiliate to terminate
the employment of any person shall not be diminished or affected by reason of
the fact that an Option has been granted to him.

FORFEITURE. Notwithstanding any other provisions of the Plan, if the Committee
finds by a majority vote after full consideration of the facts that the Holder,
before or after termination of such Holder's employment relationship with the
Company or an Affiliate for any reason committed or engaged in willful
misconduct, gross negligence, a breach of fiduciary duty, fraud, embezzlement,
theft, a felony, a crime involving moral turpitude or proven dishonesty in the
course of such Holder's employment by the Company or an Affiliate, the Holder
shall forfeit all outstanding Options, and all exercised Options if the Company
has not yet delivered a stock certificate to the Holder with respect thereto.
The decision of the Committee shall be final. No decision of the Committee,
however, shall affect the finality of the discharge of the Holder by the Company
or an Affiliate in any manner.

TAX WITHHOLDING. The Company or any Affiliate shall be entitled to deduct from
other compensation payable to each Holder any sums required by federal, state or
local tax law to be withheld with respect to the grant or exercise of an Option.
In the alternative, the Company may require the Holder of an Option to pay such
sums for taxes directly to the Company or any Affiliate in cash or by check
within ten days after the date of exercise or lapse of restrictions. In the
discretion of the Committee, and with the consent of the Holder, the Company may
reduce the number of shares of Stock issued to the Holder upon such Holder's
exercise of an Option to satisfy the tax withholding obligations of the Company
or an Affiliate; provided that the Fair Market Value of the shares held back
shall not exceed the Company's or the Affiliate's minimum statutory withholding
tax obligations. The Company shall have no obligation upon exercise of any
Option until the Company or an Affiliate has received payment sufficient to
cover all tax withholding amounts due with respect to that exercise. Neither the
Company nor any Affiliate shall be obligated to advise a Holder of the existence
of the tax or the amount which it will be required to withhold.

WRITTEN AGREEMENT. Each Option shall be embodied in a written agreement which
shall be subject to the terms and conditions of the Plan and shall be signed by
the Holder and by a member of the Committee on behalf of the Committee and the
Company or an executive officer of the Company, other than the Holder, on behalf
of the Company. The agreement may contain any other provisions that the
Committee in its discretion shall deem advisable which are not inconsistent with
the terms of the Plan.

INDEMNIFICATION OF THE COMMITTEE. The Company shall indemnify each present and
future member of the Committee against, and each member of the Committee shall
be entitled without further action his or her part to indemnity from the Company
for, all expenses (including attorney's fees, the amount of judgments and the
amount of approved settlements made with a view to the curtailment of costs of
litigation, other than amounts paid to the Company itself) reasonably incurred
by such member in connection with or arising out of any action, suit or
proceeding in which such member may be involved by reason of such member being
or having been a member of the Committee, whether or not he or she continues to
be a member of the Committee at the time of incurring the expenses, including,
without limitation, matters as to which such member shall be finally adjudged in
any action, suit or proceeding to have been negligent in the performance of such
member's duty as a member of the Committee. However, this indemnity shall not
include any expenses incurred by any member of the Committee in respect of
matters as to which such member shall be finally adjudged in any action, suit or
proceeding to have been guilty of gross negligence or willful misconduct in the
performance of his duty as a member of the Committee. In addition, no right of
indemnification under the Plan shall be available to or enforceable by any
member of the Committee unless, within 60 days after institution of any action,
suit or proceeding, such member shall have offered the Company, in writing, the
opportunity to handle and defend same at its own expense. This right of
indemnification shall inure to the benefit of the heirs, executors or
administrators of each member of the Committee and shall be in addition to all
other rights to which a member of the Committee may be entitled as a matter of
law, contract or otherwise.

GENDER. If the context requires, words of one gender when used in the Plan shall
include the other and words used in the singular or plural shall include the
other.

HEADINGS. Headings of Articles and Sections are included for convenience of
reference only and do not constitute part of the Plan and shall not be used in
construing the terms of the Plan.

OTHER COMPENSATION PLANS. The adoption of the Plan shall not affect any other
stock option, incentive or other compensation or benefit plans in effect for the
Company or any Affiliate, nor shall the Plan preclude the Company from
establishing any other forms of incentive compensation arrangements for
Employees.

OTHER OPTIONS. The grant of an Option shall not confer upon the Holder the right
to receive any future or other Options under the Plan, whether or not Options
may be granted to similarly situated Holders, or the right to receive future
Options upon the same terms or conditions as previously granted.

GOVERNING LAW. The provisions of the Plan shall be construed, administered and
governed under the laws of the State of Delaware.

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