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                                                                   EXHIBIT 10.31

                              SURETY EXCESS OF LOSS
                              REINSURANCE CONTRACT
                     (HEREINAFTER REFERRED TO AS "CONTRACT")

                           EFFECTIVE: JANUARY 1, 2005

                           entered into by and between

                             WESTERN SURETY COMPANY
                           UNIVERSAL SURETY OF AMERICA
                        SURETY BONDING COMPANY OF AMERICA
               (hereinafter collectively referred to as "Company")

                                       and

                          CONTINENTAL CASUALTY COMPANY
                    (hereinafter referred to as "Reinsurer")

Witnesseth:

In consideration of the mutual covenants contained herein, and upon the terms
and conditions hereinafter set forth the Company and the Reinsurer hereby agree
as follows:

ARTICLE 1 - SCOPE OF THE CONTRACT

This Contract is solely between the Company and the Reinsurer. Performance of
respective obligations of each party under this Contract shall be rendered
solely to the other party, except as specifically and expressly provided for in
the Insolvency Article. The provisions of this Contract are intended solely for
the benefit of the parties to and executing this Contract, and nothing in this
Contract shall in any manner create, or be construed to create, any obligations
to or establish any rights against any party to this Contract in favor of any
third parties or other persons not parties to and executing this Contract.

ARTICLE 2 - BUSINESS COVERED

The Company shall reinsure with the Reinsurer and the Reinsurer shall accept as
reinsurance from the Company the Company's net excess liability under the surety
business written or renewed and surety reinsurance assumed (hereinafter referred
to as "Bonds") by the Company that is in force on January 1, 2005 and that is
written or renewed during the term of this Contract, on behalf of Each
Principal, in excess of $100,000,000. Notwithstanding the above, this

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Contract shall not provide, and specifically excludes, any coverage for the
principal Dick Corporation.

ARTICLE 3 - RETENTION OF COMPANY & LIABILITY OF THE REINSURER

The retention of the Company and the liability of the Reinsurer and all other
benefits accruing to the Company, as provided in this Contract or any amendments
thereof, shall apply to the parties comprising the Company as a group and not
separately to each of the parties. Any payment by the Reinsurer to any of the
parties comprising the Company shall discharge the Reinsurer's liability under
this Contract to the extent of such payment with respect to that loss.

Reinsurance hereunder shall be on an excess of loss basis and shall apply to
that portion of coverage which the Company retains net for its own account in
accordance with the provisions set forth under this Contract.

The Reinsurer shall pay to the Company the amount of loss in excess of the
Company's Retention as set forth in the Schedule of Reinsurance below as
respects any one Principal, but the Reinsurer's liability shall not exceed the
Limit of Liability of the Reinsurer for Each Principal as stated in the Schedule
of Reinsurance.

                             SCHEDULE OF REINSURANCE

<TABLE>
<S>                                                    <C>
Company Retention                                      $100,000,000
Limit of Liability of the Reinsurer for                $50,000,000
Each  Principal
</TABLE>

Under no circumstances, howsoever arising, shall the Reinsurer be liable under
this Contract for more than $50,000,000 of Net Loss, in the aggregate, inclusive
of all loss, allocated expense payments, extra contractual obligations or losses
in excess of original policy limits.

ARTICLE 4 - COMMENCEMENT AND EXPIRATION

The Contract shall take effect on January 1, 2005 and shall remain in full force
and effect through December 31, 2005, both days inclusive, and provides cover
for losses discovered during the term of this Contract on Bonds in force on
January 1, 2005 and Bonds written, renewed or assumed during the term of this
Contract all as respects business classified by the Company as Surety Business
as described in Article 2 - Business Covered.

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ARTICLE 5 - EXTENDED DISCOVERY

Prior to the expiration of this Contract, the Company shall have the option of
electing a 12-month extended discovery period subject to the following
conditions precedent:

      A.    The Company shall notify the Reinsurer of its election to exercise
            the extended discovery period option prior to the expiration of this
            Agreement.

      B.    The Company shall pay to the Reinsurer an additional premium for the
            extended discovery period equal to (i) 100% of the reinsurance
            premium in effect multiplied by (ii) the factor resulting from the
            unexhausted (based on incurred losses through the establishment of a
            reserve or payment of loss or allocated expenses) aggregate limit of
            liability as of the date of expiration of the Agreement divided by
            the aggregate limit of liability, subject to a minimum factor of
            75%.

      C.    Payment of the premium for the extended discovery period coverage
            shall be made to the Reinsurer by the Company within thirty (30)
            calendar days after the commencement of the 12-month extended
            discovery period. The Reinsurer's limit of liability as set forth in
            Article 3, Retention of Company & Liability of the Reinsurer, as
            respects losses discovered during the period consisting of the
            Contract term and the extended discovery period shall not exceed the
            original aggregate limit of liability as set forth in Article 3 -
            Retention of Company & Liability of the Reinsurer.

Such election is subject to any necessary prior approval or no objection from
any applicable regulatory authority.

ARTICLE 6 - DEFINITIONS

"Company Retention" shall mean that amount indicated as the Company Retention in
the Schedule of Reinsurance as set forth in the Retention of Company & Liability
of the Reinsurer Article. It is understood and agreed that any underlying
reinsurance maintained by the Company on the business reinsured hereunder shall
not be deducted in determining the Company's Retention, including amounts
retained by the Company or its affiliated companies under common management or
common ownership.

"Each Principal" shall mean one or more firms or corporations under the same
management or control, or one or more persons or entities for whom bonds were
executed in reliance upon the indemnity of the same person, firm or corporation,
or in reliance upon the indemnity of a related group of persons, firms or
corporations.

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"Net Written Premium" shall mean the Company's written premium on the business
covered hereunder net of applicable returns and cancellations and net of
premiums on inuring reinsurance.

"Loss(es)Discovered" shall mean that the Company shall have discovered a loss
when:

a)    a claim or a collection of claims on the Bond business for Each Principal
      exceeds $50,000,000, whether or not the Company has an incurred loss on
      such principal through the establishment of a reserve or payment of loss
      or allocated expenses; or

b)    when the Company has incurred a loss of $50,000,000 or more for Each
      Principal through the establishment of a reserve, payment of loss or
      allocated expenses, assumption of a liability to prevent a default or a
      combination thereof.

"Net Loss" shall mean all loss and allocated expense payments made by the
Company (1) in the investigation, defense, settlement, or mitigation of claims
or potential claims (including the prevention of defaults) on the Bond business
of Each Principal of the Company, and (2) in the recovery or attempted recovery
of such loss and expense payments, less salvage and subrogation. The Company's
office expenses and salaries of its employees are not allocated expenses and are
not included in Net Loss. "Net Loss" shall include extra contractual obligations
and losses in excess of original policy limits to the extent that any underlying
excess of loss reinsurance purchased by the Company covers such obligations and
losses. It is understood and agreed that any underlying reinsurance maintained
by the Company on the business reinsured hereunder, shall not be deducted in
determining the Company's Net Loss.

ARTICLE 7 - PREMIUM

Upon execution of this Contract by the Company and the Reinsurer, the Company
shall pay the Reinsurer premium of $3,000,000, which shall be considered fully
earned.

ARTICLE 8 - ADDITIONAL PREMIUM

If any Net Loss is ceded to this Contract, the Company shall immediately pay the
Reinsurer an additional premium of $7,000,000.

ARTICLE 9 - NOTICE OF LOSS & SETTLEMENTS

The Company shall investigate and settle or defend all claims and losses
including those involving the extension of credit or the advancement of money.
All payments of claims or losses

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by the Company within the sum or limits of its Bonds and within the amount of
reinsurance set forth in Article 3 - Retention of Company and Liability of the
Reinsurer, shall be binding on the Reinsurer, subject to the terms of this
Contract.

The Reinsurer shall pay to the Company the Reinsurer's portion of Net Loss
within thirty days after receipt of the proof of loss from the Company. Any
subsequent changes in the amount of Net Loss shall be reported by the Company to
the Reinsurer, and the amount due either party shall be remitted within thirty
days after receipt of such report.

ARTICLE 10 - CO-SURETY

It is understood and agreed by the parties to this Contract that Continental
Casualty Company and any one of its affiliated insurers shall act as co-surety
as respects business covered by this Contract, when so requested by the Company.

ARTICLE 11 - EXCESS OF ORIGINAL POLICY LIMITS

This Contract shall protect the Company as provided in Article 2 - Business
Covered, in connection with loss in excess of the limit of the original policy,
such loss in excess of the limit having been incurred because of failure by the
Company to settle within the policy limit or by reason of alleged or actual
negligence, fraud or bad faith in rejecting an offer of settlement or in the
preparation of the defense or in the, trial of any action against its insured or
reinsured or in the preparation or prosecution of an appeal consequent upon such
action.

However, this Article shall not apply where the loss has been incurred due to
fraud by a member of the Board of Directors or a corporate officer of the
Company acting individually or collectively or in collusion with any individual
or corporation or any other organization or party involved in the presentation,
defense or settlement of any claim covered hereunder.

For the purpose of this Article, the word "loss" shall mean any amounts for
which the Company would have been contractually liable to pay had it not been
for the limit of the original policy. The date on which any Excess of Original
Policy Limit loss is incurred by the Company shall be deemed, in all
circumstances, to be the date of the original loss.

ARTICLE 12 - EXTRA CONTRACTUAL OBLIGATIONS

This Contract shall protect the Company as provided in Article 2 - Business
Covered, where the loss includes any extra contractual obligations.

The term "Extra Contractual Obligations" is defined as those liabilities not
covered under any other provision of this Contract and which arise from the
handling of any claim on business covered hereunder, such liabilities arising
because of, but not limited to, the following: failure by

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the Company to settle within the policy limit, or by reason of alleged or actual
negligence, fraud or bad faith in rejecting an offer of settlement or in
preparation of the defense or in the trial of any action against its insured or
reinsured or in the preparation or prosecution of an appeal consequent upon such
action.

The date on which any Extra Contractual Obligation loss is incurred by the
Company shall be deemed, in all circumstances, to be the date of the original
loss.

However, this Article shall not apply where the loss has been incurred due to
fraud by a member of the Board of Directors or a corporate officer of the
Company acting individually or collectively or in collusion with any individual
or corporation or any other organization or party involved in the presentation,
defense or settlement of any loss covered hereunder.

ARTICLE 13 - SALVAGE & SUBROGATION

The Reinsurer shall be subrogated to the rights of the Company to the extent of
its loss payments to the Company. The Company agrees to enforce its rights of
salvage and subrogation by taking whatever action is necessary to recover its
loss from an obligee, principal, indemnitor, or any other party who caused or
contributed to its loss or part thereof, or to assign those rights to the
Reinsurer, unless enforcement is waived by the mutual consent of the Company and
the Reinsurer. Recoveries shall be distributed to the parties in an order
inverse to that in which their liabilities accrued.

ARTICLE 14 - OFFSET

For settlement purposes only, the Company or the Reinsurer shall have the right
to offset any balance or amounts due from one party to the other under the terms
of this Contract or under the Surety Quota Share Treaty between certain of the
parties hereto. The party asserting the right of offset may exercise such right
at any time whether the balances due are on account of premiums or losses. In
the instance of insolvency of one or more of the reinsured Companies, applicable
state law shall apply.

ARTICLE 15 - CURRENCY

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

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

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ARTICLE 16 - ACCESS TO RECORDS

The Company shall allow the Reinsurer to inspect, at reasonable times, the
records of the Company relevant to the business reinsured under this Contract,
including but not limited to Company files concerning premium, underwriting,
claims, losses or legal proceedings which involve or may involve the Reinsurer
and the Reinsurer may make copies of any records pertaining thereto. This right
of inspection, audit and information shall survive termination of this Contract
and shall run to the natural expiry of all liabilities under the Bonds
reinsured.

ARTICLE 17 - ERRORS AND OMISSIONS

Any inadvertent delay, omission or error shall not be held to relieve either
party hereto from any liability which would attach to it hereunder if such
delay, omission, or error had not been made, provided such omission or error is
rectified as soon as possible after discovery.

ARTICLE 18 - TAXES

The Reinsurer shall maintain the required reserves as to the Reinsurer's portion
of claims and losses. The Company shall be liable for all premium taxes on
business covered hereunder. If the Reinsurer is obligated to pay any premium
taxes on this business, the Company shall reimburse the Reinsurer, however, the
Company shall not be required to pay taxes twice of the same premium.

ARTICLE 19 - INSOLVENCY

This reinsurance shall be payable by the Reinsurer on the basis of the liability
of the reinsured Company(ies) under Bonds reinsured hereunder without
diminution, because of the insolvency of one or more than one of the Companies,
to the Company(ies) or its liquidator, receiver, or statutory successor.

In the event of insolvency of one or more than one of the Companies, the
liquidator or receiver or statutory successor of the Company(ies) shall give
written notice to the Reinsurer of the pendency of a claim filed against the
Company(ies) on the Bond or Bonds reinsured within a reasonable time after such
claim is filed in the insolvency proceeding. During the pendency of such claim
the Reinsurer may investigate such claim and interpose, at its own expense, in
the proceeding where such claim is to be adjudicated, any defense or defenses
which it may deem available to the Company(ies) or its liquidator or receiver or
statutory successor. The expenses thus incurred by the Reinsurer shall be
chargeable, subject to court approval, against the Company(ies) as part of the
expense of liquidation to the extent of a proportionate share of the benefits
which may accrue to the Company(ies) solely as a result of the defense so
undertaken by the Reinsurer.

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Should one or more than one of the Companies go into liquidation or should a
receiver be appointed, the Reinsurer shall be entitled to deduct from any sums
which may be or may become due to the Company(ies) any sums which are due to the
Reinsurer by the Company(ies) and which are payable at a fixed or stated date
under this Contract or under the Surety Quota Share Treaty or the Aggregate Stop
Loss Reinsurance Contract between certain of the parties hereto to the full
extent permitted by the laws of the insolvent party's state of domicile.

It is further understood and agreed that, in the event of the insolvency of one
or more than one of the Companies, the reinsurance under this Contract shall be
payable directly by the Reinsurer to the Company(ies) or to its liquidator,
receiver or statutory successor, except a) where this Contract specifically
provides another payee of such reinsurance in the event of the insolvency of the
Company(ies) or b) where the Reinsurer with the consent of the direct insured or
insureds has assumed such Bond obligations of the Company(ies) as direct
obligations of the Reinsurer to the payees under such Bonds and in substitution
for the obligations of the Company(ies) to such payees.

In no event shall anyone other than the parties to this Contract or, in the
event of one or more than one of the Company's insolvency, its liquidator,
receiver, or statutory successor, have any rights under this Contract.

ARTICLE 20 - AMENDMENTS

This Contract may be altered or amended in any of its terms and conditions by
mutual written consent of the Company and the Reinsurer. Such written mutual
consent shall then constitute a part of this Contract.

ARTICLE 21 - ARBITRATION

As a condition precedent to any right of action hereunder, any dispute arising
out of the interpretation, performance or breach of this Contract, including the
formation or validity thereof, shall be submitted for decision to a panel of
three arbitrators. Notice requesting arbitration shall be in writing and sent
certified mail, return receipt requested.

One arbitrator shall be chosen by each party and the two arbitrators shall,
before instituting the hearing, choose an impartial third arbitrator who shall
preside at the hearing. If either party fails to appoint its arbitrator within
thirty (30) days after being requested to do so by the other party, the latter,
after ten (10) days notice by certified mail of its intention to do so, may
appoint the second arbitrator.

If the two arbitrators are unable to agree upon the third arbitrator within
thirty (30) days of their appointment, the third arbitrator shall be selected
from a list of six individuals (three named by each arbitrator) by a judge of
the federal district court having jurisdiction over the geographical

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area in which the arbitration is to take place, or if the federal court declines
to act, the state court having general jurisdiction in such area.

All arbitrators shall be disinterested active or former executive officers of
insurance or reinsurance companies or Underwriters at Lloyd's London.

Within thirty (30) days after notice of appointment of all arbitrators, the
panel shall meet and determine timely periods for briefs, discovery procedures
and schedules for hearings.

The panel shall be relieved of all judicial formality and shall not be bound by
the strict rules of procedure and evidence. Arbitration shall take place in
Sioux Falls, South Dakota, or a location mutually agreed to by the panel.
Insofar as the arbitration panel looks to substantive law, it shall consider the
law of the State of South Dakota. The decision of any two arbitrators when
rendered in writing shall be final and binding. The panel is empowered to grant
interim relief as it may deem appropriate.

The panel shall make its decision considering the custom and practice of the
applicable insurance and reinsurance business as promptly as possible following
the termination of the hearings. Judgment upon the award may be entered in any
court having jurisdiction thereof.

Each party shall bear the expense of its own arbitrator and shall jointly and
equally bear with the other party the cost of the third arbitrator. The
remaining costs of the arbitration shall be allocated by the panel. The panel
may, at its discretion, award such further costs and expenses as it considers
appropriate, including but not limited to attorneys fees, to the extent
permitted by law. The panel is prohibited from awarding punitive, exemplary or
treble damages, of whatever nature, in connection with any arbitration
proceeding concerning this Contact.

ARTICLE 22 - CHOICE OF LAW

This Contract, including all matters relating to formation, validity and
performance thereof, shall be interpreted in accordance with the law of the
State of South Dakota.

ARTICLE 23 - AGENCY

For purposes of sending and receiving notices and payments required by this
Contract, the reinsured Company that is set forth first in the Title section to
this Contract shall be deemed the agent for all other reinsured companies
referenced in the Title of this Contract. In no event however, shall any
reinsured Company be deemed the agent of the other with respect to the terms of
the Insolvency Article.

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ARTICLE 24 - ENTIRE CONTRACT

This Contract, and that certain Services and Indemnity Agreement between the
parties dated January 1, 2005, represent the entire agreement and understanding
among the parties. No other oral or written agreements or contracts relating to
the risks reinsured hereunder currently exist and/or are contemplated between
the parties.

ARTICLE 25 - FUNDING OF RESERVES

(This Article is only applicable if the Reinsurer cannot qualify for credit by
each governmental authority having jurisdiction over the Company's reserves.)

As regards Bonds issued by the Company coming within the scope of this Contract,
the Company agrees that, when it files with the Insurance Department or sets up
on its books reserves for losses (including Loss and Loss Expense paid by the
Company but not recovered from the Reinsurer, Loss and Loss Expense reported and
outstanding, and an allowance for Incurred But Not Reported Losses and Loss
Expenses as determined by the Company) covered hereunder and/or unearned
premium, which it is required by law to set up, it shall forward to the
Reinsurer a statement showing the proportion of such reserves applicable to it.
The Reinsurer hereby agrees that it shall apply for and secure delivery to the
Company of a clean, irrevocable, unconditional Letter of Credit, dated on or
before December 31 of the year in which the request is made, issued by a member
of the Federal Reserve System or any bank approved for use by the NAIC
Securities Valuation Office, and containing provisions acceptable to the
insurance regulatory authorities having jurisdiction over the Company's reserves
in an amount equal to the Reinsurer's proportion of reserves as shown in the
statement prepared by the Company.

The Letter of Credit shall be issued for a period of not less than one year, and
shall be automatically extended for one year from its date of expiration or any
future expiration date unless 30 days prior to any expiration date the issuing
bank notifies the Company by registered mail that the issuing bank elects not to
consider the Letter of Credit extended for any additional period. An issuing
bank, not a member of the Federal Reserve System or not chartered in the state
of domicile of the Company, shall provide 60 days notice to the Company prior to
any expiration in the event of nonextension.

Notwithstanding any other provisions of this Contract, the Company or its
court-appointed successor in interest may draw upon such credit at any time
without diminution because of the insolvency of the Company or of any Reinsurer
for one or more of the following purposes only:

A.    To reimburse the Company for the Reinsurer's share of unearned premium on
      Bonds reinsured hereunder on account of cancellations of such Bonds.

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B.    To pay the Reinsurer's share or to reimburse the Company for the
      Reinsurer's share of any Loss reinsured by this Contract, which has not
      been otherwise paid.

C.    To make refund of any sum in excess of the actual amount required to pay
      the Reinsurer's share of any liability reinsured by this Contract.

D.    In the event of nonextension of Letters of Credit as provided for above,
      to establish deposits of the Reinsurer's share of reserves for losses
      and/or unearned premium under this Contract.

E.    To pay any other amounts the Company claims are due under this Contract.

The issuing bank shall have no responsibility whatsoever in connection with the
propriety of withdrawals made by the Company or the disposition of funds
withdrawn, except to ensure that withdrawals are made only upon the order of
properly authorized representatives of the Company.

At annual intervals, or more frequently as agreed but never more frequently than
semi-annually, the Company shall prepare, for the sole purpose of amending the
Letter of Credit, a specific statement of the Reinsurer's share of loss and/or
unearned premium reserves. If the statement shows that the Reinsurer's share of
such reserves exceeds the balance of credit as of the statement date, then the
Reinsurer shall, within 30 days after receipt of notice of such excess, secure
delivery to the Company of an amendment of such difference. If, however, the
statement shows that the Reinsurer's share of such reserves is less than the
balance of credit as of the statement date, the Company shall, within 30 days
after receipt of written request from the Reinsurer, release such excess credit
by agreeing to secure an amendment to the Letter of Credit, reducing the amount
of credit available by the amount of such excess credit.

The Reinsurer shall be responsible for any and all costs, fees and charges as
respects establishing and maintaining a Letter of Credit under the provisions of
this Article.

ARTICLE 26 - SERVICE OF SUIT

(This Article applies only if the Reinsurer is domiciled outside the United
States of America and/or unauthorized in any state, territory, or district of
the United States of America that has jurisdiction over the Company and in which
a subject suit has been instituted. This Article is not intended to conflict
with or override the parties' obligation to arbitrate their disputes in
accordance with the Arbitration Article.)

In the event of the failure of any Reinsurer hereon to pay any amount claimed to
be due hereunder, such Reinsurer, at the request of the Company, shall submit to
the jurisdiction of a court of competent jurisdiction within the United States
and shall comply with all requirements

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necessary to give that court jurisdiction. Nothing in this Article constitutes
or should be understood to constitute a waiver of the Reinsurer's rights to
commence an action in any court of competent jurisdiction in the United States,
to remove an action to a United States District Court, or to seek a transfer of
a case to another court as permitted by the laws of the United States or of any
state in the United States. Service of process in such suit may be made upon
Mendes and Mount, 750 Seventh Avenue, New York, New York 10019-6829. In any suit
instituted against it upon this Contract, the Reinsurer shall abide by the final
decision of such court or of any appellate court in the event of any appeal.

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

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

ARTICLE 27 - SEVERABILITY

If any law or regulation of any Federal, State, or Local Government of the
United States of America, or the ruling of officials having supervision over
insurance companies, should render illegal this Contract, or any portion
thereof, as to risks or properties located in the jurisdiction of such
authority, either the Company or the Reinsurer may upon written notice to the
other suspend, abrogate, or amend this Contract insofar as it relates to risks
or properties located within such jurisdiction to such extent as may be
necessary to comply with such law, regulations, or ruling.

Such illegality, suspension, abrogation, or amendment of a portion of this
Contract shall in no way affect any other portion thereof.

ARTICLE 28 - HONORABLE UNDERTAKING

The purposes of this Contract are not to be defeated by narrow or technical
legal interpretations of its provisions. The Contract shall be construed as an
honorable undertaking and should be interpreted for the purpose of giving effect
to the real intentions of the parties hereto.

ARTICLE 29- NOTICES

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Any notice relating to this Contract shall be in writing and shall be
sufficiently given if delivered by certified mail to the Reinsurer at the
following address:

      Continental Casualty Company
      CNA Plaza
      Attn.: Chief Financial Officer
             Chicago, IL 60685

and to the Company at the following address:

      Western Surety Company
      Attn.: Chief Executive Officer
             Sioux Falls, South Dakota 57117-5077

ARTICLE 30 - SPECIAL PROVISION

At any time subsequent to the inception of this Contract:

A.    should the ownership, control or management of the Company or the
      Reinsurer be altered or changed, in whole or in part, in such a way that
      receipt or payment of funds or any other contemplated transaction under
      this Contract would be prohibited by United States of America statute,
      regulation and/or other applicable law, or

B.    should the Company or the Reinsurer become subject to restrictions imposed
      by the United States government, so that receipt or payment of funds or
      any other contemplated transaction under this Contract would be prohibited
      by United States of America statute, regulation and/or other applicable
      law,

the Company or the Reinsurer must immediately notify the other party of same in
writing via certified, registered, or internationally recognized overnight
courier service, and the obligation to pay or receive funds or otherwise perform
under this Contract shall be suspended until such time as the Company or the
Reinsurer are authorized by applicable law, regulation, or license to perform
under this Contract.

ARTICLE 31 - CONFIDENTIALITY

The Reinsurer hereby acknowledges that the documents, information and data
provided to it by the Company, whether directly or through an authorized agent,
in connection with the placement, execution, or performance of this Contract
(hereinafter called the "Confidential Information") are proprietary and
confidential to the Company. Confidential Information shall not include

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documents, information or data that the Reinsurer can show: (i) is publicly
known or has become publicly known through no unauthorized act of the Reinsurer,
(ii) has been rightfully received from a third person without obligation of
confidentiality, or (iii) was known by the Reinsurer prior to the placement of
this Contract without an obligation of confidentiality.

The Reinsurer agrees not to disclose any Confidential Information; however, this
provision shall not apply to disclosures made by the Reinsurer, in the ordinary
course of business, to its retrocessionaires, auditors, accountants, or
regulatory agencies, arbitration panels or courts of law.

IN WITNESS WHEREOF the parties acknowledge that no intermediary is involved in
or brought about this transaction, and the parties hereto, by their authorized
representatives, have executed this Contract:

on this                 day of

WESTERN SURETY COMPANY

By:___________________________________________________________

Title:________________________________________________________

Attested by:__________________________________________________

and on this             day of

UNIVERSAL SURETY OF AMERICA

By:___________________________________________________________

Title:________________________________________________________

Attested by:__________________________________________________

and on this             day of

SURETY BONDING COMPANY OF AMERICA

By:___________________________________________________________

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Title:________________________________________________________

Attested by:__________________________________________________

and on this             day of

CONTINENTAL CASUALTY COMPANY

By:___________________________________________________________

Title:________________________________________________________

Attested by:__________________________________________________

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                                                                   EXHIBIT 10.32

                            SURETY QUOTA SHARE TREATY
                    (hereinafter referred to as "Agreement")

                           EFFECTIVE: JANUARY, 1, 2005

                           entered into by and between

                          CONTINENTAL CASUALTY COMPANY
                     (hereinafter referred to as "Company")

                                       and

                             WESTERN SURETY COMPANY
                    (hereinafter referred to as "Reinsurer")

Witnesseth:

In consideration of the mutual covenants contained herein, and upon the terms
and conditions hereinafter set forth the Company and the Reinsurer hereby agree
as follows:

ARTICLE 1 - BUSINESS COVERED

This Agreement shall cover the Company's net retained liability on Surety
Business written or renewed, by or on behalf of the Company, during the term of
this Agreement, and ceded hereunder. However, if mutually agreed between the
Company and the Reinsurer, the Company may retain a Policy and not be required
to cede such Policy associated with its Surety Business to the Reinsurer under
this Agreement. In the event a Policy is not ceded hereunder, the Policy shall
be identified and the exception documented, in writing, in the underwriting
file.

The liability of the Reinsurer shall commence simultaneously with that of the
Company. In the event that a loss covered hereunder involves more than one of
the Company's policies, this Agreement shall provide coverage for each and every
Policy in such loss.

ARTICLE 2 - TERM AND CANCELLATION

This Agreement is effective January 1, 2005 and shall continue in full force and
effect through December 31, 2005, both days inclusive. Upon expiration of this
Agreement, the Reinsurer shall continue to cover all Policies coming within the
terms and conditions of this Agreement, until the natural expiration or
anniversary of such Policies.

Notwithstanding the expiration of this Agreement as hereinabove provided, the
provisions of this Agreement shall continue to apply to all unfinished business
hereunder and that all obligations and liabilities incurred by each party
hereafter, prior to such expiration, shall be fully performed and discharged.

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ARTICLE 3 - TERRITORY

This agreement applies to the territory as in the Company's original Policies
reinsured hereunder.

ARTICLE 4 - ORIGINAL CONDITIONS

All amounts ceded hereunder shall be subject to the same gross rating and to the
same clauses, conditions, exclusions and modifications of the Company's
Policies, subject to the limits, terms and conditions of this Agreement.

Except as specifically and expressly provided for in the Insolvency Article, the
provisions of this Agreement are intended solely for the benefit of the parties
to and executing this Agreement, and nothing in this Agreement shall in any
manner create, or be construed to create, any obligations to or establish any
rights against any party to this Agreement in favor of any third parties or
other persons not parties to and executing this Agreement.

ARTICLE 5 - DEFINITIONS

A.    As respects the use of "Company" within this Agreement, it is understood
      and agreed that Company shall mean the insurance companies owned directly
      or indirectly by CNA Financial Corporation which are affiliated with,
      controlled by or under common management of CNA, with the exception of the
      life insurance companies and RVI Guarantee Company Limited and their
      respective subsidiaries.

B.    The term "Extra Contractual Obligations" as used in this Agreement shall
      mean those liabilities not covered under any other provision of this
      Agreement and which arise from the handling of any claim on business
      covered hereunder, such liabilities arising because of, but not limited
      to, the following: failure by the Company to settle within the Policy
      limit, or by reason of alleged or actual negligence, fraud or bad faith in
      rejecting an offer of settlement or in preparation of the defense or in
      the trial of any action against its insured or reinsured or in the
      preparation or prosecution of an appeal consequent upon such action.

C.    The term(s) "Loss" and "Losses" as used in this Agreement shall mean that
      amount incurred by the Company in respect of any settlements, awards, or
      judgments (including interest where classified as loss) incurred in
      connection with any Policy reinsured hereunder after deduction for all
      recoveries, salvages, subrogations and other reinsurances, whether said
      reinsurances are recovered or not. The Reinsurer and Company agree that
      the convention to be followed when determining when a loss is incurred is
      that the date of notice of the actual event of loss or default shall be
      the date the loss is incurred, except that when the date of notice of the
      actual event of loss or default occurs after the expiration of a Policy
      then the date immediately preceding the date the Policy expires shall be
      deemed to be the date the loss is incurred.

D.    The term "Loss Expenses" as used in this Agreement shall mean all expenses
      incurred by the Company in the investigation, appraisal, adjustment,
      litigation and/or defense of claims under the business reinsured
      hereunder, including court costs, interest accrued prior to final judgment
      if included as expense on reinsured Policies, interest accrued after final
      judgment, but excluding internal office expenses, salaries, per diem, and

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      other remuneration of regular Company employees unless diverted from their
      normal duties to handle such Loss.

E.    The term "Net Premiums Written" as used in this Agreement shall mean the
      gross written premiums on Policies written, renewed or assumed during the
      term of this Agreement on business the subject of this Agreement, less
      cancellation and return premiums and less premiums ceded on all other
      reinsurance which inures to the benefit of this Agreement on business the
      subject of this Agreement.

F.    The term "Net Liability" as used in this Agreement shall mean the
      remaining portion of the Company's gross liability on each Policy
      reinsured under this Agreement after deduction of all reinsurance which
      inures to the benefit of this Agreement.

G.    The term(s) "Policy" and "Policies" as used in this Agreement shall mean
      the Company's binders, riders, policies, endorsements, bonds and contracts
      providing insurance and reinsurance on the Surety Business covered under
      this Agreement.

H.    The term "Surety Business" as used in this Agreement means the issuance,
      writing or underwriting of policies or licenses with respect to the
      following: (i) bonds required by statutes or ordinances guaranteeing the
      payment of certain taxes and fees and providing consumer protection as a
      condition to granting licenses to engage in various trades or professions,
      (ii) bonds required by statutes, courts or legal documents for the
      protection of those on whose behalf a fiduciary acts, (iii) bonds required
      by statutes or ordinances to guarantee the lawful and faithful performance
      of the duties of office by public officials, (iv) bonds required by
      statutes to protect against improper actions by notaries public, and (v)
      bonds which secure the payment and/or performance of an obligation under a
      written contract; but it shall not include, without limitation, financial
      guaranty bonds and the issuance, writing or underwriting of bonds and
      licenses which cover Losses arising from employee dishonesty.

ARTICLE 6 - PREMIUM

As outlined in the Reports and Remittances Article the Company shall pay to the
Reinsurer 100% of the Company's Net Premiums Written on its Net Liability on the
business covered hereunder, less the ceding commission.

ARTICLE 7 - CEDING COMMISSION

The Reinsurer agrees to allow the Company a commission allowance per calendar
quarter of (a) $50,000 plus (b) 25% of Net Premiums Written ceded under this
Agreement. Return commission shall be allowed on return premiums at the same
rate.

Such commission allowance shall be the sole provision for all commissions,
brokerages, taxes, board, exchange or bureau assessments, and for all other
expenses of whatever nature, excepting loss expenses.

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ARTICLE 8 - LOSS SETTLEMENTS & NOTICES

The Company or its designated representative shall adjust, settle, or compromise
all losses hereunder. All such adjustments, settlements, and compromises,
including ex-gratia payments, shall be paid by the Company or its designated
representative, and the Reinsurer shall benefit from all salvage and
subrogation. All salvages, recoveries or payments recovered or received
subsequent to loss settlement hereunder shall be applied as if recovered or
received prior to the aforesaid settlement and all necessary adjustments shall
be made by the parties hereto.

When so requested, the Company or its designated representative shall afford the
Reinsurer an opportunity to be associated with the Company or its designated
representatives, at the expense of the Reinsurer, in the defense or control of
any claim or suit or proceeding involving this reinsurance and the Company or
its designated representative and the Reinsurer shall cooperate in every respect
in the defense of such suit or claim or proceeding.

The Reinsurer shall be liable for its proportionate share of all Losses covered
under this Agreement. The Company or its designated representative shall advise
the Reinsurer of all Losses that may result in a claim under this Agreement and
of all subsequent developments which may materially affect the position of the
Reinsurer. Any Loss settlement made by the Company, whether under strict Policy
conditions or by way of compromise, shall be unconditionally binding upon the
Reinsurer in proportion to its participation.

In addition, the Reinsurer shall also be liable for its proportionate share of
all Loss Expenses as respects Losses covered under this Agreement. However, in
the event a verdict or judgment is reduced by an appeal or a settlement,
subsequent to the entry of the judgment, resulting in an ultimate saving on such
verdict or judgment, or a judgment is reversed outright, the expense incurred in
securing such final reduction or reversal shall be prorated between the
Reinsurer and the Company in the proportion that each benefits from such
reduction or reversal, and the expenses incurred up to the time of the original
verdict or judgment shall be pro rated in proportion to each party's interest in
such verdict.

In addition, the Reinsurer shall also be liable for its proportionate share of
all legal expenses and other costs incurred in connection with coverage
questions and legal actions connected thereto arising under the business covered
by this Agreement. The Reinsurer's proportionate share of these costs and
expenses shall be the same as the Reinsurer's percentage of participation in
this Agreement.

Nothing in this Agreement shall be construed as meaning that Losses are not
recoverable hereunder until the actual Loss of the Company has been ascertained.

ARTICLE 9 - EXCESS OF ORIGINAL POLICY LIMITS

This Agreement shall protect the Company as provided in Article 1 - Business
Covered in connection with Loss in excess of the limit of the original Policy,
such Loss in excess of the limit having been incurred because of failure by the
Company to settle within the Policy limit or by reason of alleged or actual
negligence, fraud or bad faith in rejecting an offer of settlement or in the
preparation of the defense or in the, trial of any action against its insured or
reinsured or in the preparation of prosecution of an appeal consequent upon such
action.

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However, this Article shall not apply where the Loss has been incurred due to
fraud by a member of the Board of Directors or a corporate officer of the
Company acting individually or collectively or in collusion with any individual
or corporation or any other organization or party involved in the presentation,
defense or settlement of any claim covered hereunder.

For the purpose of this Article, the word "Loss" shall mean any amounts for
which the Company would have been contractually liable to pay had it not been
for the limit of the original Policy. The date on which any Excess of Original
Policy Limit Loss is incurred by the Company shall be deemed, in all
circumstances, to be the date of the original Loss.

ARTICLE 10 - EXTRA CONTRACTUAL OBLIGATIONS

This Agreement shall protect the Company as provided in Article 1 - Business
Covered where the Loss includes any Extra Contractual Obligations.

The date on which any Extra Contractual Obligation Loss is incurred by the
Company shall be deemed, in all circumstances, to be the date of the original
Loss.

However, this Article shall not apply where the Loss has been incurred due to
fraud by a member of the Board of Directors or a corporate officer of the
Company acting individually or collectively or in collusion with any individual
or corporation or any other organization or party involved in the presentation,
defense or settlement of any Loss covered hereunder.

ARTICLE 11 - REPORTS AND REMITTANCES

A.    Within 30 calendar days following the end of each calendar quarter, the
      Company or its representatives shall report to the Reinsurer:

      1.    Net Premium Written accounted for during the quarter;

      2.    The ceding commission applicable to the above as provided for in
            this Agreement;

      3.    Losses and Loss Expenses paid during the quarter, less inuring
            reinsurance;

      4.    Subrogation, salvage, or other recoveries credited during the
            quarter;

      5.    Outstanding loss reserves.

      The positive balance of (1) less (2) less (3) plus (4) shall be remitted
      by the Company to the Reinsurer within 15 calendar days after the date of
      such report. Any balance shown to be due the Company shall be remitted by
      the Reinsurer within 15 calendar days after receipt of such report.

B.    Annually the Company or its representatives shall furnish the Reinsurer
      with such information as the Reinsurer may require to complete its Annual
      Convention Statement.

C.    The Reinsurer shall maintain the required reserves as to the Reinsurer's
      portion of claims and Losses hereunder. In the event the Company is
      required to provide collateral for Losses that the Reinsurer is liable for
      hereunder, upon mutual consent, the Reinsurer shall provide funding for
      such collateral i in a manner acceptable to both parties. All interest
      earned on such funding provided by the Reinsurer shall first be credited
      to the Company up to the actual cost of establishing the collateral
      mechanism, after which all interest shall be credited to the Reinsurer on
      a quarterly basis. Upon final payment of all claims or balances associated
      with such Loss or at such time as all claims associated

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      with such Loss are closed by the Company, any funding balance shall be
      returned promptly to the Reinsurer.

ARTICLE 12 - OFFSET

For settlement purposes only, the Company or the Reinsurer shall have the right
to offset any balance or amounts due from one party to the other under the terms
of this Agreement. The party asserting the right of offset may exercise such
right any time whether the balances due are on account of premiums or Losses. In
the instance of insolvency of the Company, applicable state law shall apply.

ARTICLE 13 - CURRENCY

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

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

ARTICLE 14 - ACCESS TO RECORDS

The Company shall allow the Reinsurer to inspect, at reasonable times, the
records of the Company relevant to the business reinsured under this Agreement,
including but not limited to Company files concerning premium, underwriting,
claims, Losses or legal proceedings which involve or may involve the Reinsurer
and the Reinsurer may make copies of any records pertaining thereto, at its own
cost. This right of inspection, audit and information shall survive termination
of this Agreement and shall run to the natural expiry of all liabilities under
the Policies reinsured.

ARTICLE 15 - ERRORS AND OMISSIONS

Any inadvertent delay, omission or error shall not be held to relieve either
party hereto from any liability which would attach to it hereunder if such
delay, omission, or error had not been made, provided such omission or error is
rectified as soon as possible after discovery.

ARTICLE 16 - TAXES

The Company shall be liable for all premium taxes on business covered hereunder.
If the Reinsurer is obligated to pay any premium taxes on this business, then
the Company shall reimburse the Reinsurer, however, the Company shall not be
required to pay taxes twice on the same premium.

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ARTICLE 17 - INSOLVENCY

This reinsurance shall be payable by the Reinsurer and the basis of the
liability of the Company under Policy or Policies reinsured without diminution,
because of the insolvency of the Company, to the Company or its liquidator,
receiver, or statutory successor.

In the event of insolvency of the Company, the liquidator or receiver or
statutory successor of the Company shall give written notice to the Reinsurer of
the pendency of a claim filed against the Company on the Policy or Policies
reinsured within a reasonable time after such claim is filed in the insolvency
proceeding. During the pendency of such claim the Reinsurer may investigate such
claim and interpose, at its own expense, in the proceeding where such claim is
to be adjudicated, any defense or defenses which it may deem available to the
Company or its liquidator or receiver or statutory successor. The expenses thus
incurred by the Reinsurer shall be chargeable, subject to court approval,
against the Company as part of the expense of liquidation to the extent of a
proportionate share of the benefits, which may accrue to the Company solely as a
result of the defense so undertaken by the Reinsurer.

Should the Company go into liquidation or should a receiver be appointed, the
Reinsurer shall be entitled to deduct from any sums which may be or may become
due to the Company any sums which are due to the Reinsurer by the Company and
which are payable at a fixed or stated date under this Agreement, to the full
extent permitted under the laws of the insolvent party's state of domicile.

It is further understood and agreed that, in the event of the insolvency of the
Company, the reinsurance under this Agreement shall be payable directly by the
Reinsurer to the Company or to its liquidator, receiver or statutory successor
except a) where this Agreement specifically provides another payee or such
reinsurance in the event of the insolvency of the Company or b) where the
Reinsurer with the consent of the direct insured or insureds has assumed such
Policy obligations of the Company as direct obligations of the Reinsurer to the
payees under such Policies and in substitution for the obligations of the
Company to such payees.

In no event shall anyone other than the parties to this Agreement or, in the
event of the Company's insolvency, its liquidator, receiver, or statutory
successor, have any rights under this Agreement.

ARTICLE 18 - AMENDMENTS

This Agreement may be altered or amended in any of its terms and conditions by
written mutual consent of the Company and the Reinsurer. Such written mutual
consent shall then constitute a part of this Agreement.

ARTICLE 19 - ARBITRATION

As a condition precedent to any right of action hereunder, any dispute arising
out of the interpretation, performance or breach of this Agreement, including
the formation or validity thereof, shall be submitted for decision to a panel of
three arbitrators. Notice requesting arbitration shall be in writing and sent
certified mail, return receipt requested.

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One arbitrator shall be chosen by each party and the two arbitrators shall,
before instituting the hearing, choose an impartial third arbitrator who shall
preside at the hearing. If either party fails to appoint its arbitrator with
thirty (30) days after being requested to do so by the other party, the latter,
after ten (10) days notice by certified mail of its intention to do so, may
appoint the second arbitrator.

If the two arbitrators are unable to agree upon the third arbitrator within
thirty (30) days of their appointment each of them shall name two, of whom the
other shall decline one and the decision shall be made by drawing lots. All
arbitrators shall be disinterested active or former executive officers of
insurance or reinsurance companies or Underwriters at Lloyd's London, not under
the control of either party to this Agreement.

Within thirty (30) days after notice of appointment of all arbitrators, the
panel shall meet and determine timely periods for briefs, discovery procedures
and schedules for hearings. The panel shall be relieved of all judicial
formality and shall not be bound by the strict rules of procedure and evidence.
Arbitration shall take place in Chicago, Illinois. Insofar as the arbitration
panel looks to substantive law, it shall consider the law of the State of
Illinois. The decision of any two arbitrators when rendered in writing shall be
final and binding. The panel is empowered to grant interim relief as it may deem
appropriate.

The panel shall make its decision considering the custom and practice of the
applicable insurance and reinsurance business as promptly as possible following
the termination of the hearings. Judgment upon the award may be entered in any
court having jurisdiction thereof.

Each party shall bear the expense of its own arbitrator and shall jointly and
equally bear with the other party the expense of the third arbitrator and of the
arbitration. The panel is prohibited from awarding punitive, exemplary or treble
damages, of whatever nature, in connection with any arbitration proceeding
concerning this Agreement.

ARTICLE 20 - CHOICE OF LAW

This Agreement, including all matters relating to formation, validity and
performance thereof, shall be interpreted in accordance with the law of the
State of Illinois.

ARTICLE 21 - NOTICES

Any notice relating to this Agreement shall be in writing and shall be
sufficiently given if delivered by certified mail to the Company at the
following address:

         Continental Casualty Company
         CNA Plaza
         Attn:  The Chief Financial Officer
         Chicago, IL  60685

and to the Reinsurer at the following address:

         Western Surety Company
         Attn:  Chief Executive Officer
         Sioux Falls, South Dakota  57117-5077

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ARTICLE 22 - ENTIRE AGREEMENT

This Agreement, and that certain Services and Indemnity Agreement between the
parties dated January 1, 2005, represent the entire agreement and understanding
among the parties. No other oral or written agreements or contracts relating to
the risks reinsured hereunder currently exist and/or are contemplated between
the parties.

ARTICLE 23 - FUNDING OF RESERVES

(This Article applies to the Reinsurer who does not qualify for credit by any
state or any other governmental authority having jurisdiction over the Company's
loss reserves and/or to the Reinsurer to which the provisions of the Contingent
Collateral Article apply.)

A.    As regards policies issued by the Company coming within the scope of this
      Agreement, the Company agrees that when it shall file with the insurance
      regulatory authority or set up on its books reserves for unearned premium
      and losses covered hereunder which it shall be required by law to set up,
      it shall forward to the Reinsurer a statement showing the proportion of
      such reserves which is applicable to the Reinsurer. The Reinsurer hereby
      agrees to fund such reserves in respect of unearned premium, known
      outstanding losses that have been reported to the Reinsurer and loss
      expense relating thereto, losses and loss expenses paid by the Company but
      not recovered from the Reinsurer, plus reserves for losses and loss
      expenses incurred but not reported, as shown in the statement prepared by
      the Company (hereinafter referred to as "Reinsurer's Obligations") by cash
      advances, Trust Agreement or a Letter of Credit. The Reinsurer shall have
      the option of determining the method of funding provided it is acceptable
      to the insurance regulatory authorities having jurisdiction over the
      Company's reserves and provided that the issuing bank is approved by the
      NAIC Securities Valuation Office.

B.    When funding by a Letter of Credit, the Reinsurer agrees to apply for and
      secure timely delivery to the Company of a clean, irrevocable and
      unconditional Letter of Credit issued by a bank consented to by the
      Company with such consent not being unreasonably withheld, and containing
      provisions acceptable to the insurance regulatory authorities having
      jurisdiction over the Company's reserves in an amount equal to the
      Reinsurer's Obligations. Such Letter of Credit shall be issued for a
      period of not less than one year, and shall be automatically extended for
      one year from its date of expiration or any future expiration date unless
      60 calendar days (90 calendar days where required by insurance regulatory
      authorities) prior to any expiration date the issuing bank shall notify
      the Company by certified or registered mail that the issuing bank elects
      not to consider the Letter of Credit extended for any additional period.

C.    The Reinsurer and Company agree that the Letters of Credit, or other
      method of funding, provided by the Reinsurer pursuant to the provisions of
      this Article may be drawn upon at any time, notwithstanding any other
      provision of this Agreement, and be utilized by the Company or any
      successor, by operation of law, of the Company including, without
      limitation, any liquidator, rehabilitator, receiver or conservator of the
      Company for the following purposes:

      1.    to reimburse the Company for the Reinsurer's Obligations, the
            payment of which is due under the terms of this Agreement and which
            has not been otherwise paid;

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      2.    to make refund of any sum which is in excess of the actual amount
            required to pay the Reinsurer's Obligations under this Agreement;

      3.    to fund an account with the Company for the Reinsurer's Obligations.
            Such cash deposit shall be held in an interest bearing account
            separate from the Company's other assets, and interest thereon not
            in excess of the prime rate shall accrue to the benefit of the
            Reinsurer;

      4.    to pay the Reinsurer's share of any other amounts the Company claims
            are due under this Agreement.

D.    In the event the amount drawn by the Company on any Letter of Credit, or
      other method of funding, is in excess of the actual amount required for in
      Paragraphs C.1. or C.3. above, or in the case of Paragraph C.4. above, the
      actual amount determined to be due, the Company shall promptly return to
      the Reinsurer the excess amount so drawn. All of the foregoing shall be
      applied without diminution because of insolvency on the part of the
      Company or the Reinsurer.

E.    The issuing bank shall have no responsibility whatsoever in connection
      with the propriety of withdrawals made by the Company or the disposition
      of funds withdrawn, except to ensure that withdrawals are made only upon
      the order of properly authorized representatives of the Company.

F.    At quarterly intervals, or less frequently as agreed but never less
      frequently than annually, the Company shall prepare a specific statement
      of the Reinsurer's Obligations, for the sole purpose of amending the
      Letter of Credit or other method of funding, in the following manner:

      1.    If the statement shows that the Reinsurer's Obligations exceed the
            balance of the Letter of Credit as of the statement date, the
            Reinsurer shall, within 15 calendar days after receipt of notice of
            such excess, secure delivery to the Company of an amendment to the
            Letter of Credit increasing the amount of credit by the amount of
            such difference. Should another method of funding be used, the
            Reinsurer shall, within the time period outlined above, increase
            such funding by the amount of such difference.

      2.    If, however, the statement shows that the Reinsurer's Obligations
            are less than the balance of the Letter of Credit as of the
            statement date, the Company shall, within 15 calendar days after
            receipt of written request from the Reinsurer, release such excess
            credit by agreeing to secure an amendment to the Letter of Credit
            reducing the amount of credit available by the amount of such excess
            credit. Should another method of funding be used, the Company shall,
            within the time period outlined above, decrease such funding by the
            amount of such excess.

      3.    If the Reinsurer does not agree with the statement of the
            Reinsurer's Obligations as furnished by the Company, a mutually
            agreed upon independent national actuarial firm shall be engaged to
            evaluate the Reinsurer's Obligations covered under this Agreement
            and such evaluation shall be binding upon the parties hereof. Such
            cost shall be shared equally between the Company and the Reinsurer.
            If the parties fail to agree on the selection of an independent
            national actuarial firm, each of the parties shall name two, of whom
            the other shall decline one, and the final decision shall be made by
            drawing lots.

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            As respects the terms of this paragraph, any actuarial firm selected
            by drawing lots shall be disinterested in the outcome of the
            calculation and the employee of same engaged to evaluate the
            Reinsurer's Obligations hereunder shall not be under the influence
            of either party hereto and shall be a Fellow of the Casualty
            Actuarial Society. It is agreed by the parties hereto that the
            Arbitration Article of this Agreement shall not apply to the
            resolution of disputes arising under the terms of this paragraph.
            The evaluation by the independent national actuarial firm shall be
            binding on the Company and the Reinsurer.

G.    The Reinsurer shall be responsible for all costs and fees associated with
      the establishment and maintenance of any cash advance, Letter of Credit
      and/or Trust Agreement mandated by the provisions of this Article.

ARTICLE 24 - CONTINGENT COLLATERAL

(This Article shall apply only to a Reinsurer with an A.M. Best insurance
financial strength rating of "A" or below or a Standard & Poor's insurer
financial strength rating of "A" or below at the effective date of this
Agreement.)

(This Article shall not apply to Lloyd's Syndicates who have satisfied their
funding obligations to the Credit for Reinsurance Trust Fund (CRTF); however, in
the instance where such funding requirements are reduced below 100%, then the
provisions of this Article shall apply to any Lloyd's Syndicate and funding
shall be required for the difference between 100% of the Reinsurer's Collateral
funded to the CRTF.)

(This Article shall not apply to the Reinsurer who has already fully funded
reserves, under this Agreement, per the provisions of the Funding of Reserves
Article or Article 11.)

At any time subsequent to the inception of this Agreement, in the event that the
Reinsurer:

1.    has been assigned an A.M. Best's insurer financial strength rating below
      "A-" or a Standard & Poor's insurer financial strength rating below "A-"
      (a Standard & Poor's Insurance Solvency International rating of less than
      "BBB" shall apply as respects alien Reinsurers other than Underwriting
      Members of Lloyd's, London, and a Lloyd's Syndicate Assessment (LSA)
      rating of less than three shall apply as respects Underwriting Members of
      Lloyd's London); or

2.    has suffered a surplus as regards policyholders loss of more than 25%
      (twenty-five percent) from either the inception of this Agreement or the
      date of the filing of the Reinsurer's most recent financial statement with
      the authorities having jurisdiction over the Reinsurer,

3.    ceases writing new or renewal assumed reinsurance business,

the Company may require that the Reinsurer provide Letters of Credit and/or
establish a Trust Agreement, at the Reinsurer's own expense, to collateralize
the sum of the following under this Agreement, as reported by the Company
(hereinafter the "Reinsurer's Collateral"):

a.    the amount of loss and loss expense paid by the Company but not recovered
      from the Reinsurer;

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b.    reserves for loss and loss expense reported and outstanding;

c.    reserves for loss and loss expense incurred but not reported; and

d.    if applicable, unearned premium.

Such Reinsurer's Collateral shall be established by the Reinsurer within ten
business days of receipt by the Reinsurer of the Company's written notice
requesting the establishment of such Reinsurer's Collateral, and the notice
shall be sent by the Company, to the Reinsurer, via certified mail or
internationally recognized overnight courier service. The Reinsurer's Collateral
shall be established and maintained in accordance with the provisions of the
Funding of Reserves Article stated in this Agreement. If a Trust Agreement is
established, the Reinsurer shall select the trustee bank with the consent of the
Company, with such consent not to be unreasonably withheld.

If the Reinsurer does not agree with the statement of the Reinsurer's Collateral
as furnished by the Company, a mutually agreed upon independent national
actuarial firm shall be engaged to evaluate the Reinsurer's Collateral and such
evaluation shall be binding upon the parties hereof. Such cost shall be shared
equally between the Company and the Reinsurer. If the parties fail to agree on
the selection of an independent national actuarial firm, each of the parties
shall name two, of whom the other shall decline one, and the final decision
shall be made by drawing lots. As respects the terms of this paragraph, any
actuarial firm selected by drawing lots shall be disinterested in the outcome of
the calculation and the employee of same engaged to evaluate the Reinsurer's
Collateral hereunder shall not be under the influence of either party hereto and
shall be a Fellow of the Casualty Actuarial Society. It is agreed by the parties
hereto that the Arbitration Article of this Agreement shall not apply to the
resolution of disputes arising under the terms of this paragraph. The evaluation
by the independent national actuarial firm shall be binding on the Company and
the Reinsurer.

The Reinsurer shall bear all costs associated with establishing and maintaining
the Letters of Credit and/or Trust Agreements as described in this Article

The failure of the Company to enforce any provision of this Article shall not
constitute a waiver by the Company of any such provision, irrespective of how
long such failure continues. The past waiver of any provision of this Article,
by the Company, shall not constitute a course of conduct or a waiver of the
Company's rights in the future with respect to that same provision.

ARTICLE 25 - SERVICE OF SUIT

(This Article applies only if the Reinsurer is domiciled outside the United
States of America and/or unauthorized in any state, territory, or district of
the United States of America that has jurisdiction over the Company and in which
a subject suit has been instituted. This Article is not intended to conflict
with or override the parties' obligation to arbitrate their disputes in
accordance with the Arbitration Article.)

In the event of the failure of any Reinsurer hereon to pay any amount claimed to
be due hereunder, such Reinsurer, at the request of the Company, shall submit to
the jurisdiction of a court of competent jurisdiction within the United States
and shall comply with all requirements necessary to give that court
jurisdiction. Nothing in this Article constitutes or should be understood to
constitute a waiver of the Reinsurer's rights to commence an action in any court
of competent jurisdiction in the United States, to remove an action to a United
States District Court, or to seek a transfer of a case to another court as
permitted by the laws of the United

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States or of any state in the United States. Service of process in such suit may
be made upon Mendes and Mount, 750 Seventh Avenue, New York, New York
10019-6829. In any suit instituted against it upon this Agreement, the Reinsurer
shall abide by the final decision of such court or of any appellate court in the
event of any appeal.

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

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

ARTICLE 26 - SEVERABILITY

If any law or regulation of any Federal, State or Local Government of the United
States of America, or the ruling officials having supervision over insurance
companies, should render illegal this Agreement, or any portion thereof, as to
risks or properties located in the jurisdiction of such authority, either the
Company or the Reinsurer may upon written notice to the other suspend, abrogate,
or amend this Agreement insofar as it relates to risks or properties located
within such jurisdiction to such extent as may be necessary to comply with such
law, regulations, or ruling.

Such illegality, suspension, abrogation, or amendment of a portion of this
Agreement shall in no way affect any other portion thereof.

ARTICLE 27 - HONORABLE UNDERTAKING

The purposes of this Agreement are not to be defeated by narrow or technical
legal interpretations of its provisions. The Agreement shall be construed as an
honorable undertaking and should be interpreted for the purpose of giving effect
to the real intentions of the parties hereto.

ARTICLE 28 - SPECIAL PROVISION

At any time subsequent to the inception of this Agreement:

A.    should the ownership, control or management of the Company or the
      Reinsurer be altered or changed, in whole or in part, in such a way that
      receipt or payment of funds or any other contemplated transaction under
      this Agreement would be prohibited by United States of America statute,
      regulation and/or other applicable law, or

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B.    should the Company or the Reinsurer become subject to restrictions imposed
      by the United States government, so that receipt or payment of funds or
      any other contemplated transaction under this Agreement would be
      prohibited by United States of America statute, regulation and/or other
      applicable law,

the Company or the Reinsurer must immediately notify the other party of same in
writing via certified, registered, or internationally recognized overnight
courier service, and the obligation to pay or receive funds or otherwise perform
under this Agreement shall be suspended until such time as the Company or the
Reinsurer are authorized by applicable law, regulation, or license to perform
under this Agreement.

ARTICLE 29 - CONFIDENTIALITY

The Reinsurer hereby acknowledges that the documents, information and data
provided to it by the Company, whether directly or through an authorized agent,
in connection with the placement, execution, or performance of this Agreement
(hereinafter called the "Confidential Information") are proprietary and
confidential to the Company. Confidential Information shall not include
documents, information or data that the Reinsurer can show: (i) is publicly
known or has become publicly known through no unauthorized act of the Reinsurer,
(ii) has been rightfully received from a third person without obligation of
confidentiality, or (iii) was known by the Reinsurer prior to the placement of
this Agreement without an obligation of confidentiality.

The Reinsurer agrees not to disclose any Confidential Information; however, the
Reinsurer may disclose such Confidential Information, in the ordinary course of
business, to its employees, attorneys, intermediaries used for purchase of any
retrocessional covers that protect the Reinsurer's liability under this
Agreement, retrocessionaires, auditors or accountants, as the Reinsurer deems
necessary and the Reinsurer shall verbally advise such entities of the
obligations contained in this Article and shall be bound by the provisions of
this Article, or regulatory agencies, arbitration panels or courts of law. This
Article shall not preclude the disclosure of information which is required to be
disclosed in financial statements and reports filed by either the Company or
Reinsurer

IN WITNESS WHEREOF the parties acknowledge that no intermediary is involved in
or brought about this transaction and the parties hereto, by their authorized
representatives, have executed this Agreement:

on this                             day of                               2005

CONTINENTAL CASUALTY COMPANY

By:_______________________________________________________

Title:____________________________________________________

Attested:_________________________________________________

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and on this                         day of                               2005

WESTERN SURETY COMPANY

By:_______________________________________________________

Title:____________________________________________________

Attested by:______________________________________________

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