Document:

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                                                                   Exhibit 10.28

                              RESTATED AND AMENDED
                              --------------------
                              EMPLOYMENT AGREEMENT
                              --------------------

     EMPLOYMENT AGREEMENT, originally effective as of September 14,1998, as
amended February l, 2000, as further amended January 1, 2001, and restated in
its entirety effective January 22, 2002, by and between USI INSURANCE SERVICES
CORP. a Delaware corporation ("Company") and ERNEST J. NEWBORN, II
("Executive"). Company and Executive are referred to hereinafter as the
"Parties".

                                R E C I T A L S :
                                - - - - - - - -

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

     WHEREAS, the Company entered into an Employment Agreement effective as of
September 14, 1998 (the "Original Employment Agreement"); and

     WHEREAS, the Company entered into an Amendment to the Original Employment
Agreement effective as of February 1, 2000 (the "First Amendment"); and

     WHEREAS, the Company entered into a Second Amendment to the Original
Employment Agreement effective as of January 1, 2001 (the "Second Amendment");
and

     WHEREAS, USI, the Company and Executive desire to amend and restate the
Original Employment Agreement, First Amendment and Second Amendment, as more
fully provided for herein; and

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

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

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

                               A G R E E M E N T :
                               - - - - - - - - -

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1.   DEFINITIONS

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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     "USI Companies" means USI, its subsidiaries (including the Company), its
"affiliates" and "associates" (as defined in Rule 12b-2 of the regulations
promulgated under the Exchange Act, without regard to whether any party is a
"registrant" under such Act), and any of their successors or assigns.

2.   POSITION, RESPONSIBILITIES AND TERM

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

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

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

     2.4. Term. Executive shall be employed for a five-year term commencing on
January 22, 2002, and ending on December 31, 2006, unless sooner terminated in
accordance with the provisions of Section 8 of this Agreement; provided however
that such employment shall be automatically extended on the same terms and
conditions as contained herein, unless the Company provides Executive written
notice, no later than 120 days prior to the then scheduled termination of
employment, of its intent not to extend such employment. The foregoing term of
employment shall be referred to hereinafter as the "Term".

3.   ACCEPTANCE

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

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4. COMPENSATION

     4.1. Base Salary. As compensation for the services to be rendered by
Executive hereunder, the Company agrees to pay Executive, and Executive agrees
to accept, a base salary ("Base Salary") during employment hereunder at the
annual rate of not less than $250,000; provided, however, that the USI CEO may
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determine to increase but not decrease the Executive's Base Salary in such
amount as the USI CEO may determine. The Base Salary shall be payable in equal
installments by the Company according to its normal payroll practices.

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

     [4.3. 2001 USI Plan Award. As additional compensation for the services
previously rendered hereunder, Executive shall be entitled to receive a bonus
under the USI Plan in an amount equal to Executive's "target" for the 2001
performance year.]

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

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

5.   EXPENSES

     5.1.  The Company shall reimburse Executive, in accordance with Company
policy, for all expenses reasonably and properly incurred by Executive in
connection with the performance of

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Executive's duties hereunder and the conduct of the business of the Company,
upon the submission to the Company (or its designee) of appropriate vouchers
therefor. Additionally, the Executive shall be provided with no less than $750 a
month for an automobile allowance during his employment with the Company. The
Company shall provide Executive with no less than $500 per month for club and
other organizational memberships. The Company will reimburse Executive for the
expenses associated with the business use of a cellular telephone.

6.   CONFIDENTIAL INFORMATION AND PROPERTY

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

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

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

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

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

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

     7.2. Non-Competition. Executive further agrees that, throughout the Term
hereof, Executive will refrain from carrying on a business, directly or
indirectly, which provides any USI Business, except in the normal course of
business on behalf of any USI Company. The term "carrying on a business" shall
mean to engage in any such business as a sole proprietor, partner, member of a
limited liability company, corporate officer, director, employee or stockholder.
It is expressly agreed that the foregoing is not intended to restrict or
prohibit the ownership by Executive of stock or other securities of a
publicly-held corporation in which Executive does not (a) possess beneficial
ownership of more than 5% of the voting capital stock of such corporation or (b)
participate in any management or advisory capacity. In addition, it is also
agreed that the foregoing shall not prohibit Executive from serving as a
director pursuant to terms of Section 2.3.

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

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

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

8.   TERMINATION

     8.1  Termination by the Company Without Cause; Failure to Extend. Company
shall have the right to terminate Executive's employment hereunder "without
cause" by giving Executive written notice to that effect. Any such termination
of employment shall be effective on the date specified in such notice. The
Company may also give notice of its election not to extend Executives
employment hereunder for an additional Term. In the event of such termination,
or in the event of a failure to extend Executive's employment hereunder for an
additional Term under the same terms and conditions, the Company shall (i) pay
Executive his unpaid Base Salary through the effective

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date of termination and any business expenses remaining unpaid on the effective
date of the termination for which Executive is entitled to be reimbursed under
Section 5 of this Agreement, (ii) pay Executive an amount per month equal to
one-twelfth the sum of (1) his then adjusted Base Salary plus (2) the higher of
target bonus set by the Board that he would have otherwise received (but for
such termination) for the year in which such termination occurred or his Bonus
for the immediately preceding year for the period commencing on the date
following the date of termination and ending on the date which is twenty-four
(24) months following the effective date of termination; and (iii) either
continue to provide Executive with healthcare coverage under the plan in which
Executive participates immediately prior to the effective date of such
termination (where Executive remains eligible to participate, and in accordance
with the terms thereof) or in the event Executive no longer remains eligible to
participate under such healthcare plan, to reimburse Executive for the amount of
the premium Company would have paid for Executive's healthcare coverage had
Executive remained employed hereunder, in each case until (A) the date which is
twenty-four (24) months following the effective date of termination or (B) the
commencement of Executive's coverage under another employer's healthcare plan;
provided, however, that without limiting any other remedy available hereunder,
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all payments described in the Section 8.1 shall immediately terminate upon an
arbitrator's or judge's determination that Executive has breached the
provisions of Section 6 or 7 hereof.

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

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     8.3 Termination by Executive for Good Reason. Executive shall have the
right to terminate this Agreement and his employment hereunder for "good
reason," if (i) there is a Change of Control, and, within one year following
such Change of Control, Executive terminates his employment hereunder due to the
material diminution of his duties and responsibilities, as set forth herein,
(ii) a material diminution by the Company of Executive's position as Senior Vice
President and General Counsel of the Company and the duties relating thereto,
(iii) imposition by USI or the Company of a requirement that the Executive
relocate his business office outside the area of San Francisco, California, or
the assignment to the Executive of duties that would reasonably require such
relocation or (iv) default by the Company in the payment of or otherwise failure
by the Company to pay in a timely fashion after demand therefor any material sum
or to provide any material benefit due to the Executive pursuant to this
Agreement or other material breach of this Agreement by the Company; provided
that Executive shall give the Company prior written notice of the reason
therefore and a period of 30 days following receipt by the Company of such
notice shall have lapsed and the matters which constitute or give rise to such
"good reason" shall not have been cured or eliminated by the Company. In the
event of such termination, Executive shall be entitled to receive the same
payments and benefits as would be provided under Section 8.1 in the event of a
termination without cause.

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

     8.5 Death, Incapacitation or Disability.

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

          b. Incapacitation or Disability. In the event that Executive is
incapacitated or disabled by reason of illness or physical or mental disability
from performing Executive's duties hereunder (which shall be deemed to have
occurred (i) when Executive has receive total disability benefits under the
Company's long-term group disability policy for a continuous period of six (6)
months or, if no policy is then in effect, (ii) when such incapacity or
disability shall have existed for either (A) one continuous period of six months
or (B) a total of seven months out of any twelve consecutive months), the
Company shall have the right to terminate Executive's employment

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hereunder by giving Executive 30 days prior written notice to that effect. In
the event of any such termination, the Company shall pay to Executive any unpaid
Base Salary through the effective date of termination and any business expenses
remaining unpaid on the effective date of the termination for which Executive is
entitled to be reimbursed under Section 5 of this Agreement.

9.   REMEDIES

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

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

10.  WITHHOLDING

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

11.  ENTIRE AGREEMENT; NO AMENDMENT

     11.1 No agreements or representations, oral or otherwise, express or
implied, have been made by either Party, with respect to Executive's employment
by any USI Company, that are not set forth expressly in this Employment
Agreement. Except as provided for hereinafter, this Agreement supersedes and
cancels any prior agreement entered into between Executive and the Company or
its

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predecessors relating to Executive's employment by any USI Company.
Notwithstanding the foregoing, the terms and conditions of the Original
Employment Agreement, First Amendment and Second Amendment shall remain
applicable with respect to Executive's employment with the Company during the
portion of the Term (as defined therein) ended January 21, 2002. No amendment or
modification of this Agreement shall be valid or binding unless made in writing
and signed by the Party against whom enforcement thereof is sought.

12.  NOTICES

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

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

(b)  If to Executive, at
     Ernest Newborn, II
     16032 Broadway Terrace
     Oakland, CA 94611

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

13.  WAIVERS

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

14.  GOVERNING LAW

                                       12

<PAGE>

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

15.  SEVERABILITY

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

16.  ASSIGNMENT

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

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

                                            USI INSURANCE SERVICES CORP.

                                        By: /s/ DAVID L. ESLICK
                                            ------------------------------------
                                            Name: DAVID L. ESLICK
                                            Title: CHAIRMAN & CEO

                                            /s/ ERNEST NEWBORN
                                            ------------------------------------
                                            ERNEST NEWBORN, II

                                       13<PAGE>

                                                                   Exhibit 10.29

                              SEPARATION AGREEMENT
                              --------------------

          AGREEMENT, dated as of January 23, 2002, between USI Insurance
Services Corp., a Delaware corporation (the "Company") and wholly owned
subsidiary of U.S.I. Holdings Corporation, a Delaware corporation ("Holdings"),
Holdings (the Company and Holdings, collectively the "Companies"), and Bernard
H. Mizel ("Mizel").

                              W I T N E S S E T H:
                              - - - - - - - - - -

          WHEREAS, Mizel has been employed by the Company and is a shareholder
of Holdings; and

          WHEREAS, Holdings and the Company, on the one hand, and Mizel, on the
other hand, mutually wish to terminate their employment relationship, and the
parties hereto wish to agree as to certain matters in connection with such
termination and to restate and redefine their obligations to each other; and

          NOW, THEREFORE, in consideration of the premises and of the mutual
agreements set forth herein, the parties agree as follows:

          1. Separation. Mizel's employment relationship with the Companies and
             ----------
service as Chairman and Chief Executive Officer of the Company and Holdings
shall terminate, without cause, by mutual agreement effective as of the close of
business on January 18, 2002 and, by this Agreement, except for restrictive
covenants contained therein, the Employment Agreement effective as of October 1,
1997, as amended, (the "Employment Agreement"), between the Companies and Mizel
shall terminate effective as of the close of business January 18, 2002. Mizel
also hereby resigns from the position of Director of Holdings and from the
positions of officer and director of each direct and indirect subsidiary of
Holdings in which capacity he has heretofore served. As consideration for such
termination and resignations, the Company and Holdings agree, to the following:

          (a) Holdings will name Mizel as honorary Chairman Emeritus of U.S.I.
     Holdings Corporation. Mizel will continue to hold this non-officer position
     at least until December 31, 2002, and thereafter until either party
     determines to terminate such designation. Holdings and Mizel shall not be
     unreasonable in any such decision to terminate the designation. Mizel shall
     provide project or other consulting services to Holdings as reasonably
     requested by Holdings' CEO and specifically agreed to by Mizel; provided,
     however, that Mizel may, in his sole and absolute discretion, decline to
     perform consulting services requested by Holdings. All project or other
     consulting services are limited to those expressly authorized and directed
     by Holdings CEO in writing.

<PAGE>

                                      -2-

          (b)(i) The Companies shall pay Mizel an amount equal to $295,000 (less
     applicable tax withholdings) payable on or before March 31, 2002.

          (ii) The Companies shall pay Mizel his base compensation accrued
     through January 18, 2002 (to the extent not previously paid), subject to
     applicable withholding, on or before January 31, 2002, and shall also
     reimburse Mizel for business expenses actually incurred by him in the
     ordinary course of business prior to January 19, 2002. Such reimbursement
     shall be made to Mizel promptly following his delivery to the Companies of
     customary documentation of the incurrence of such expenses.

          (c) The Companies shall pay Mizel at an annual rate of $645,000 per
     year for the 36-month period commencing January 19, 2002 and ending January
     18, 2005 (the "Payment Period"). Such payments shall be made on a
     semimonthly basis in accordance with the Company's regular payment cycle in
     as equal amounts as practicable with the first such payment to be January
     31, 2002. Payments made shall be subject to applicable tax withholding.

          (d) During the Payment Period, the Companies shall (i) pay Mizel for
     the cost of an automobile at the rate provided for in his Employment
     Agreement, (ii) pay Mizel for the cost of his country club allowance at the
     rate provided for in his Employment Agreement, (iii) pay Mizel for the
     expenses associated with the maintenance of his current insurance licenses,
     and (iv) pay Mizel's medical, dental, vision and life insurance premiums,
     up to the same amount of premium that the Company is paying on behalf of
     Mizel under the Companies group plans in which he participates on January
     18, 2002. Such payments shall be made to Mizel by the Companies in a manner
     consistent with past practice.

          (e) The Companies shall allow Mizel continued use of his current
     office and administrative assistant, Donna Bowers, (so long as she remains
     employed) on a transitional basis, for 30 days commencing January 21, 2002.
     Thereafter, for a period ending on December 31, 2002, the Companies shall
     allow Mizel continued administrative support from Donna Bowers (so long as
     she remains employed) for no more than 5 hours per week. Additionally, on
     or before the first day of each month commencing March 2002 and ending
     December 2002, the Companies shall pay Mizel $1,000 as a non-accountable
     office allowance.

          (f) Within 15 days following their receipt of an invoice thereof, the
     Companies shall pay, up to a maximum of $7,500, Mizel's legal expenses
     associated with the negotiations and execution of this Agreement.

          (g) Mizel shall assist Holdings in the transition of his functions and
     responsibilities to his successors as reasonably requested by the
     Companies.

<PAGE>

                                      -3-

          (h) Mizel shall cooperate with Holdings with respect to (i) any
     lawsuit, arbitration or other proceeding between the Companies or their
     subsidiaries and any third party, and shall make himself available at
     reasonable times during normal business hours to provide information,
     including, without limitation, testimony, in any such proceedings. If in
     connection with Mizel's performance of his obligations pursuant to this
     Section 1(h), Mizel reasonably determines that it is necessary for him to
     be represented by separate counsel, Mizel shall select (subject to
     Holdings' approval, which approval shall not be unreasonably withheld),
     such counsel at Holdings' sole cost and expense, provided that the fees and
     other charges of such counsel are reasonable and customary. In addition,
     Holdings agrees promptly to reimburse Mizel for all other reasonable
     expenses incurred by Mizel in connection with the performance of his
     obligations pursuant to this Section 1(h).

          (i) If the Companies fail to pay any amount payable hereunder when
     due, and if such failure continues for more than ten days after Mizel gives
     the Companies notice of the delinquency, a late charge of 5% of the
     delinquent amount shall be imposed thereon and the delinquent amount shall
     bear interest from the date of the delinquency at an annual rate of 10%
     (but in no event to exceed the maximum lawful rate).

          2. Series A Preferred and Incentive Shares. The provisions in the
             ---------------------------------------
Stock Subscription Agreements between Mizel, United States Insurance Services
("USIS"), and Holdings shall continue in full force and effect, except that: (1)
each Purchaser shall suspend his or its Purchase Option in The Event of
Termination By Company Other than for Cause or by Purchaser for Good Reason
until December 31, 2002, it being recognized and acknowledged that, for purposes
of each such Stock Subscription Agreement, the termination of Mizel's employment
shall be treated as having occurred by the Company other than for cause or by
Mizel for good reason; (2) each Purchaser may exercise any purchase option by
written notice to Holdings, given at any time between December 31, 2002 and
January 30, 2003; (3) the closing of any purchase shall occur no later than
March 30, 2003; and (4) the determination of Fair Market Value of the Purchased
Shares shall be made as of the notice date. Holdings shall furnish Mizel,
subject to appropriate confidentiality agreements, with any and all information
a reasonable person would deem material to the exercise decision, including, but
not limited to, status of any negotiations concerning the sale of Holdings or an
IPO. Holdings hereby represents that Mizel's Incentive Shares are fully vested.
Capitalized terms used in this Section 2, not otherwise defined herein, are used
as defined Stock Subscription Agreements.

          3. Vesting of SARs. The provisions in the Share Appreciation Right
             ---------------
Award Agreement, dated November 16, 1999, between Mizel and Holdings shall
continue in full force and effect, except that: (1) all SARs shall be deemed
Qualified SARs on January 23, 2002 and shall be non-cancellable; and (2) the
definition of a Qualification Event shall be amended to delete section (iii) in
its entirety and replace such section as follows: (iii) the exer-

<PAGE>

                                      -4-

cise of SARs by any executive officer of the Companies who was a member of the
USI Executive Board; provided, however, that for the purposes of this subsection
(iii), James Pennington will not be deemed a member of the USI Executive Board.
Capitalized terms used in this Section 3, not otherwise defined herein, are used
as defined in the SAR Agreements.

          4. Restrictive Covenants. So long as the payments contemplated by this
             ---------------------
Agreement are being made as provided herein, Mizel acknowledges that the
provisions of Sections 6 and 7 of the Employment Agreement ("Restrictive
Covenants") shall remain in full force and effect in accordance with their
terms. Notwithstanding anything to the contrary and without limiting any other
remedy available hereunder, the payments described in Section 1(c) of this
Agreement shall terminate upon a breach by Mizel of the Restrictive Covenants
which shall not have been cured within 45 days after Holdings shall have advised
Mizel in writing of its intention to terminate the payments described in Section
1(c) of this Agreement in accordance with the provisions of this section, which
notice shall describe with reasonable specificity the nature of the alleged
breach.

          5. Delivery of Property. The Companies shall allow Mizel to remove
             --------------------
from its offices any art work and office furniture that (1) the Companies and
Mizel agree belongs to Mizel, or (2) Mizel owns by reference to documentation of
ownership. A tentative and non-exhaustive list of the art work, office
furniture, and other personal property owned by Mizel and located at the offices
of the Company is attached hereto as Exhibit C. Mizel agrees to discuss in good
faith and agree to an amendment of Exhibit C if its is subsequently demonstrated
by the Company that the Company is the true and lawful owner of any item
referenced on Exhibit C. Mizel shall contemporaneous with the execution of this
Agreement, provide to Holdings all property of the Companies and their
subsidiaries, including any computerized data and computer software owned or
licensed by the Companies or their subsidiaries, as well as all documents of the
Companies or their subsidiaries, including all copies thereof, in his
possession.

          6. No Awareness of Claim and Releases. (a) Mizel represents and
             ----------------------------------
warrants to the Companies that as of the date hereof and giving effect to the
transactions contemplated by this Agreement, Mizel is not aware of any claims,
demands or causes of action which Mizel has against the Companies. Mizel hereby
agrees to indemnify the Companies for any breach of this representation and
warranty.

          (b) The Companies each represent and warrant to Mizel that as of the
date hereof and giving effect to the transactions contemplated by this
Agreement, the Companies are not aware of any claims, demands or causes of
action which the Companies have against Mizel. The Companies hereby agree to
indemnify Mizel for any breach of this representation and warranty.

<PAGE>

                                      -5-

          (c) Simultaneously with the execution of this Agreement, the Companies
and Mizel will exchange executed Releases in the forms attached hereto as
Exhibits A and B, respectively.

          (d) Each of the parties agrees and covenants that it will not file or
cause to be filed any lawsuit, arbitration or other proceeding asserting any
claim released by the release executed by it. In the event a party files any
such lawsuit, arbitration or other proceeding, the party so filing will
indemnify the other party for all costs incurred in defending against such
proceeding, including attorneys fees.

          (e) Holdings shall indemnify and hold harmless Mizel if he is made, or
threatened to be made a party to any action, proceeding or investigation,
whether civil, criminal, or administrative, and whether involving an actual or
alleged breach of duty, neglect or error by Mizel, or any other actual or
alleged act or omission of Mizel, by reason of or arising from the fact that
Mizel was an officer or employee of Holdings or any of its direct or indirect
subsidiaries. Mizel shall give prompt notice to Holdings of any such action,
proceeding or investigation. Such indemnification and hold harmless includes a
duty to provide Mizel with competent counsel at the sole expense of Holdings (or
if Mizel reasonably determines that it is necessary for him to be represented by
separate counsel, Mizel shall select (subject to Holdings' approval, which
approval shall not be unreasonably withheld), such counsel at Holdings' sole
cost and expense, provided that the fees and other charges of such counsel are
reasonable and customary) and to pay in full all judgments, fines, amounts paid
in settlement, costs, charges and expenses, including attorneys fees and
including appeals therefrom; provided, however, that no indemnification shall be
                             --------  -------
provided to Mizel if a judgment or other final adjudication adverse to Mizel
establishes that (i) his acts or omissions were committed in bad faith or were
the result of active and deliberate dishonesty and profit or other advantage to
which he was not legally entitled. If Holdings fails to provide competent
counsel for Mizel, Mizel shall be entitled to retain counsel of his own choosing
at Holding's expense. Mizel shall be entitled to the costs of any proceeding to
enforce this provision, including reasonably attorneys' fees and expenses.

          7. Notices and Payments.
             --------------------

          (a) All communications given under this Agreement shall be in writing
(including by telecopy) and shall be given by hand or Federal Express or similar
overnight courier, mailed by U.S. mail, postage prepaid, or sent by telecopy,
addressed to the party for whom intended, as follows:

<PAGE>

                                       -6-

          U.S.I. Holdings Corporation,
          and/or USI Insurance Services Corp.
          50 California Street, 24th Floor
          San Francisco, CA 94111
          Attention: General Counsel
          Telecopy: 415-315-2105
          Telephone: 415-263-2105

          Mr. Bernard H. Mizel
          410 East Strawberry Dr.
          Mill Valley, CA 94507

          With a copy to:

          Donald R. Share
          Greene Radovsky Maloney & Share LLP
          Four Embarcadero Center, Suite 4000
          San Francisco, CA 94111

          (b) Except for payments and benefits that are paid through the
Companies direct deposit payroll system, payments to Mizel pursuant to this
Agreement shall be delivered to him in accordance with this Section 7.

          (c) Notices and payments given by hand or by Federal Express or
similar overnight courier (and notices sent by telecopy) shall be deemed to have
been duly given when received. Notices and payments sent by U.S. mail shall be
deemed given as of the third business day following their deposit in the mail.

          (d) Each party hereto may change the address of such party for notices
hereunder by notice given in accordance with this Section 7.

          8. Statements. Holdings and Mizel agree that in any written or verbal
             ----------
public discussions or disclosure by them they shall characterize this Agreement
in a manner consistent with the contents of this Agreement and with the mutually
developed Holdings press release, a copy of which is attached hereto as Exhibit
D. The Holdings press release will be issued on January 23, 2002, unless
Holdings and Mizel mutually agree to a later release date.

          9. Non-disparagement. Subject to obligations under applicable laws and
             -----------------
regulations, neither Mizel nor either of the Companies or their senior officers
or directors, shall publicly make any statements or comments that disparage the
reputation of Mizel, or either of the Companies.

<PAGE>

                                      -7-

          10. Communications by Mizel. Mizel agrees that he will not at any time
              -----------------------
materially interfere with the Companies' affairs by discussing any matter
(including claims or potential claims against the Companies) concerning the
Companies, their officers or directors, or any of their subsidiaries, with any
of its employees, shareholders, insurance carriers, customers, vendors,
investment bankers, commercial bankers, lawyers, press or strategic partners.
Nothing contained herein, however, shall preclude Mizel from discussing any
matter concerning the Companies, their officers of directors, or any of their
subsidiaries with any governmental regulatory or self-regulatory agency. If
compelled to testify by a validly served subpoena in any legal proceeding or by
regulatory authority, Mizel will testify truthfully as to all matters concerning
his employment at the Companies. Mizel agrees to disclose to Holdings as soon as
reasonably practicable all requests for information, and his anticipated
responses thereto.

          11. Entire Agreement. This Agreement sets forth the entire
              ----------------
understanding of the parties with respect to its subject matter, merges and
supersedes all prior and contemporaneous understandings with respect to its
subject matter and may not be waived or modified, in whole or in part, except by
a writing signed by each of the parties. No waiver of any provision of this
Agreement in any instance shall be deemed to be a waiver of the same or any
other provision in any other instance. Failure of any party to enforce any
provision of this Agreement shall not be construed as a waiver of its rights
under such provision. It is specifically recognized and acknowledged that there
is no intent, by this Agreement, to alter or prejudice the rights of either
party to that certain "Management Retention Agreement" made February 13, 2001 by
and between Holdings and Mizel.

          12. Full Settlement; Legal Fees. The Companies' obligation to make the
              ---------------------------
payments provided for in this Agreement and otherwise to perform its obligations
hereunder shall not be affected by any set-off, counterclaim, recoupment,
defense or other claim, right or action which the Companies may have against
Mizel or others. In any action or proceeding brought to enforce any provision of
this Agreement, and where any provision hereof or thereof is validly asserted as
a defense, the successful party shall be entitled to recover reasonable
attorney's fees and costs, including without limitation costs of arbitration, in
addition to any other available remedy.

          13. Successors and Assigns. This Agreement shall be binding on,
              ----------------------
enforceable against and inure to the benefit of, the parties and their
respective heirs, personal representatives, successors and assigns, and nothing
herein is intended to confer any right, remedy or benefit on any other person;
provided, however, that Mizel's rights hereunder are personal to him and shall
--------  -------
not be voluntarily or involuntarily assigned or transferred except by will or
operation of law and any attempt to do so shall be void.

          14. Governing Law. This Agreement shall in all respects be governed by
              -------------
and construed in accordance with the laws of the State of California applicable
to agreements

<PAGE>

                                       -8-

made and fully to be performed in such state, without giving effect to conflicts
of law principles.

          15. Construction. Headings contained in this Agreement are for
              ------------
convenience only and shall not be used in the interpretation of this Agreement.
References to Sections are to the sections of this Agreement.

          16. Severability. If any provision of this Agreement is held to be
              ------------
invalid or unenforceable by a court of competent jurisdiction, this Agreement
shall be interpreted and enforceable as if such provision were severed or
limited, but only to the extent necessary to render such provision and this
Agreement enforceable. This Agreement has been jointly drafted by the parties,
neither of whom shall be deemed to be its drafter for purpose of any rule of law
which construes a document against the person who drafted it.

          17. Arbitration. All controversies which may arise between the parties
              -----------
hereto including, but not limited to, those arising out of or relating to this
Agreement shall be determined by binding arbitration applying the laws of the
State of California as set forth in Section 14 above. Any arbitration pursuant
to this Agreement shall be conducted in San Francisco, CA by JAMS Endispute
before a single arbitrator in accordance with the Commercial Arbitration Rules
of the American Arbitration Association as they may be in effect from time to
time. The arbitration shall be final and binding upon all the parties and the
arbitrator's award shall not be required to include factual findings or legal
reasoning. Nothing in this Section 17 will prevent either party from resorting
to judicial proceedings if interim injunctive relief under the laws of the State
of California from a court is necessary to prevent serious and irreparable
injury to one of the parties pending arbitration of the controversy in question,
even if the dispute underlying such request for injunctive relief is arbitrable
under the terms of this Agreement. Each of the parties hereto agrees to submit
to the jurisdiction and venue of the courts of the State of California,
including the federal courts in the State of California, in any action or
proceeding arising out of or related to this Agreement, and hereby agrees to
accept service of any and all writs, processes of summons in connection with any
such action or proceeding. Each party waives any right it may have to transfer
or change the venue of any arbitration or litigation brought in accordance
herewith.

          18. Voluntary Execution and Representation by Counsel. Mizel
              -------------------------------------------------
acknowledges that he has carefully read this Agreement and understands all of
its terms including the full and final release of claims set forth above. Mizel
further acknowledges that he has voluntarily entered into this Agreement; that
he has not relied upon any representation or statements, written or oral, not
set forth in this Agreement; that the only consideration for signing this
Agreement is as set forth herein; and that he has had this Agreement reviewed by
his attorneys and has received advice from those attorneys with which he is
satisfied.

<PAGE>

                                      -9-

          19. Effective Date. (a) Although this Agreement is dated as of January
              --------------
23, 2002 and has been executed on that day, the parties acknowledge that Mizel
shall have a period of twenty-one (21) days from January 18, 2002 in which he
may consider and revoke this Agreement. Accordingly, the parties acknowledge
that this Agreement shall not become effective unless and until, after the
expiration of twenty-one (21) days after January 18, 2002 Mizel has not revoked
the Agreement. Mizel Acknowledges that this provisions provides him with more
than seven (7) days in which to revoke the Agreement after its execution.

          (b) In the event Mizel revokes this Agreement pursuant to Section
19(a) or asserts the release executed by him as contemplated by this Agreement
is invalid on the grounds that his entry into this Agreement was not knowing or
voluntary within the meaning of the older Workers Benefit Protection Act of
1990, Mizel and Holdings agree that this Agreement is void and of no effect.

          20. Counterparts. This Agreement may be executed by the parties in
              ------------
counterparts, all of which shall be deemed to constitute one and the same
instrument.

IN WITNESS WHEREOF, each of the parties has executed this Agreement as of the
date first set forth above.

                                         U.S.I. HOLDINGS CORPORATION

                                         By: /s/ David L. Eslick
                                             ------------------------------
                                                 Name: David L. Eslick
                                                 Title: Chief Executive Officer

                                         USI INSURANCE SERVICES CORP.

                                         By: /s/ David L. Eslick
                                             ------------------------------
                                                 Name: David L. Eslick
                                                 Title: Chief Executive Officer

                                             /s/ Bernard H.Mizel
                                             ------------------------------
                                                 Bernard H.Mizel

<PAGE>

STATE OF California, COUNTY OF San Francisco ss.:

          On January 23, 2002, before me personally came David L. Eslick to me
known, who, by me duly sworn, did depose and say that deponent is the Chief
Executive Officer of U.S.I. Holdings Corporation and USI Insurance Services
Corp., the corporations described in, and which executed the foregoing
Agreement, and that deponent signed deponent's name by order of the boards of
directors of the corporations.

                                              /s/ Donna J. Doxey-Bowers
[GRAPHIC]                                     ----------------------------------
                                              Notary Public

Dated: January 23, 2002

STATE OF California COUNTY OF San Francisco ss.:

          On January 23, 2002, before me personally came Bernard H. Mizel to me
known, and known to me to be the individual described in, and who executed the
foregoing Agreement, and duly acknowledged to me that he executed the same.

                                              /s/ Donna J. Doxey-Bowers
[GRAPHIC]                                     ----------------------------------
                                              Notary Public

Dated: January 23, 2002

<PAGE>

                                    EXHIBIT A
                                    ---------

                                     RELEASE
                                     -------

          U.S.I. Holdings Corporation, a corporation organized under the laws of
Delaware, and USI Insurance Services Corp., a corporation organized under the
laws of Delaware, for itself, and for each of its officers and directors,
parents, divisions, subsidiaries, affiliates, insurers, attorneys, and each of
their successors and assigns (all, collectively, "RELEASOR"), for good and
valuable consideration, the receipt of which is hereby acknowledged, releases
and discharges Bernard H. Mizel and his attorneys, heirs, executors,
administrators, successors and assigns (all, collectively, "RELEASEE"), from all
actions, causes of action, suits, debts, dues, sums of money, accounts,
reckonings, bonds, bills, specialties, covenants, contracts, controversies,
agreements, promises, variances, trespasses, damages, judgments, extents,
executions, claims and demands whatsoever, in law, admiralty or equity, which
against the RELEASEE, the RELEASOR, and the RELEASOR'S successors and assigns
ever had, now have or hereafter can, shall or may have, for, upon, or by reason
of any matter, cause or thing whatsoever from the beginning of the world to the
day of the date of this release; provided, however, that excepted from this
                                 --------  -------
Release are all claims relating to or arising from the Separation Agreement
dated as of January 23, 2002 (the "Separation Agreement") executed herewith.

          The RELEASE contained herein is a full and final release applying to
all obligations, liabilities, actions, and losses, including but not limited to
damages, costs, expenses, and attorneys' fees, that may be incurred by RELEASOR
and arising out of or in any way connected with the employment relationship
between the parties, or the termination thereof. It is the intention of the
RELEASOR in executing this Agreement that the same shall be effective as a bar
to each and every claim, demand, and cause of action by the RELEASOR hereto
based on the parties' employment relationship and separation, and the RELEASOR
knowingly, voluntarily, and expressly waives any and all rights and benefits
otherwise conferred by the provisions of section 1542 of the California Civil
Code which states as follows:

          A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES
NOT KNOW OR SUSPECT TO EXIST IN HIS FAVOR AT THE TIME OF EXECUTING THE RELEASE
WHICH, IF KNOWN BY HIM, MUST HAVE MATERIALLY AFFECTED HIS SETTLEMENT WITH THE
DEBTOR.

          RELEASOR understands the foregoing statutory language of section 1542
of the California Civil Code and nevertheless elects to and hereby does release
and waive all claims it may have against RELEASEE, whether known or unknown,
contingent or non-contingent, arising from the parties' employment relationship
and separation therefrom. RELEASOR fully understands that if the facts with
respect to this Agreement are hereafter found to be other than or different from
the facts now believed to be true, from whatever cause or for whatever reason,
RELEASOR expressly accepts and assumes the risk of such possible difference in
fact and agrees that this Agreement shall be and remain unaffected,
notwithstanding any such differences.

          The words "RELEASOR" and "RELEASEE" include all releasors and all
releasees under this RELEASE.

          This RELEASE may not be changed orally.

<PAGE>

          IN WITNESS HEREOF, the RELEASOR has caused this RELEASE to be executed
by its duly authorized officer on the 23rd day of January 2002.

                                         U.S.I. HOLDINGS CORPORATION

                                         By:
                                             -----------------------------------
                                               Name: David Eslick
                                               Title: Chief Executive Officer

                                         USI INSURANCE SERVICES CORP.

                                         By:
                                             -----------------------------------
                                               Name: David Eslick
                                               Title: Chief Executive Officer

STATE OF California, COUNTY OF San Francisco ss.:

     On January 23, 2002, before me personally came David L. Eslick, to me
known, who, by me duly sworn, did depose and say that deponent is the Chief
Executive Officer of U.S.I. Holdings Corporation and USI Insurance Services
Corp., the corporations described in, and which executed the foregoing RELEASE,
and that deponent signed deponent's name by order of the boards of directors of
the corporations.

                                         ---------------------------------------
                                         Notary Public

<PAGE>

                                    EXHIBIT B
                                    ---------

                                     RELEASE
                                     -------

          Bernard H. Mizel ("Mizel"), as RELEASOR, for good and valuable
consideration, the receipt of which is hereby acknowledged, releases and
discharges U.S.I. Holdings Corporation, its officers and directors, parents,
divisions, subsidiaries, affiliates, insurers, attorneys, and each of their
successors and assignees (all, collectively, "RELEASEE"), from all actions,
causes of action, suits, debts, dues, sums of money, accounts, reckonings,
bonds, bills, specialties, covenants, contracts, controversies, agreements,
promises, variances, trespasses, damages, judgments, extents, executions, claims
and demands whatsoever, in law, admiralty or equity, which against the RELEASEE,
the RELEASOR, and RELEASOR'S heirs, executors, administrators, successors and
assigns ever had, now has or hereafter can, shall or may have, for, upon, or by
reason of any matter, cause or thing whatsoever from the beginning of the world
to the day of the date of this release; provided, however, that excepted from
                                        --------  -------
this Release are all claims relating to or arising from the Separation Agreement
dated as of January 23, 2002 (the "Separation Agreement") executed herewith.

          Without in any way limiting the foregoing, RELEASOR specifically
releases and discharges RELEASEE from any claims arising out of or related to
RELEASOR's employment or separation from employment, including, but not limited
to, any claims for salary, bonuses, severance pay, vacation pay, or any benefits
under the Employee Retirement Income Security Act, sexual harassment, or
discrimination based on race, color, national origin, ancestry, religion,
marital status, sex, sexual orientation, citizenship status, pregnancy, leave of
absence, medical condition or disability (as defined by the Americans with
Disabilities Act, or any other state or local law), or any other unlawful
discrimination (including, without limitation, claims under the Age
Discrimination in Employment Act, as amended by the Older Workers Benefit
Protection Act of 1990, Title VII of the Civil Rights Act, as amended, or any
other federal, state, or local law), breach of implied or express contract,
breach of promise, misrepresentation, negligence, fraud, estoppel, defamation,
infliction of emotional distress, loss of consortium, violation of public policy
or wrongful or constructive discharge, and for attorneys fees; provided,
                                                                --------
however, that excepted from this Release are all claims relating to or arising
-------
from the Separation Agreement.

          RELEASOR agrees that this Release includes a full and final release by
RELEASOR of all unknown claims or damages, as well as a release by RELEASOR of
any and all claims now known or disclosed that arise as a result of any act or
omission occurring before RELEASOR signs this Release. Therefore, RELEASOR
waives any and all rights or benefits under the terms of Section 1542 of the
California Civil Code, which provides as follows: "A general release does not
extend to claims which the creditor does not know or suspect to exist in his

<PAGE>

favor at the time of executing the release, which if known by him must have
materially affected his settlement with the debtor."

          IN WITNESS HEREOF, the RELEASOR has hereunto set RELEASOR'S hand on
the 23rd day of January 2002.

                                              ----------------------------------
                                              Bernard H. Mizel

State of                  County of                  ss.:
         ----------------           ----------------

     On January 23, 2002, before me personally came Bernard H. Mizel, to me
known, and known to me to be the individual described in, and who executed the
foregoing RELEASE, and duly acknowledged to me that he executed the same.

                                              ----------------------------------
                                              Notary Public

<PAGE>

                                    EXHIBIT C

                            MIZEL PERSONAL PROPERTY

                                   [Excluded]

<PAGE>

                                    EXHIBIT D

                                  PRESS RELEASE

Confidential Draft (2:400pm) - For Discussion Purposes Only

                                                                  Press Contact:
                                                               Ernest Newborn II
                                                           Senior Vice President
                                                     U.S.I. Holdings Corporation
                                                50 California Street, 24th Floor
                                                         San Francisco, CA 94111
                                                                  (415) 263-2105

               U.S.I. Holdings Corporation Transitions Leadership
          David L. Eslick, President and COO is Named Chairman and CEO

San Francisco, January 23, 2002 - U.S.I. Holdings Corporation, the sixth largest
insurance brokerage firm in the United States, today announced that its Chairman
and Chief Executive Officer since its founding in 1994, Bernard H. Mizel, is
retiring from USI and will be succeeded by David L. Eslick, who has been
President and Chief Operating Officer since July 1998. Mr. Mizel will become
Chairman Emeritus.

     In announcing his retirement from USI Mr. Mizel said, "I am very proud of
what we've accomplished since the founding of USI. Beginning with the vision of
providing a single distribution point for middle market customer's
insurance-related financial services needs, we have built the sixth largest
brokerage firm in the country in just over seven years. We attribute our success
to our focus on our middle market customers and the acquisition of over 100 of
the finest brokerage and insurance services firms in the business. With our
unwavering focus on the initial vision, USI has established the foundation to
take it to the next level."

     "I have known David Eslick since 1988, and he has been positioned to
succeed me since early in his tenure with the firm. David will be supported by a
talented management team that has significant depth and years of industry
experience. In transitioning senior leader-

<PAGE>

ship responsibility to him, I am confident in his ability to shape and execute
the company's operating and business strategy. I will continue as a shareholder
in the company and will be available to David and his team."

     Mr. Eslick said, "I have valued Barney's leadership and his friendship for
many years and share his pride in all that USI has accomplished under his
leadership. He has delivered on the company's initial goals and objectives.
Barney has also built a great organization full of talented people through his
education, training and communication.

     "Our leadership team is committed to continue building on what has been
achieved and will continue the vision and strategy Barney instilled in the
company. We are also grateful that, as Chairman Emeritus, we will be able to
call on his expertise as needed."

     Warren H. May, a senior executive at Travelers Life and Annuity Company and
a member of the USI Board of Directors since August 1998, said, "The Board of
Directors joins with company management in thanking Barney for his leadership
since the founding of the company. We are confident that thanks to his
development of a strong management team and relationship with Dave Eslick this
will be a smooth transition and the company will continue building its dominant
position in the middle market for insurance-related services."

     About U.S.I. Holdings Corporation

USI is a diversified insurance services firm focused on a technology enabled,
fully integrated delivery of general and specialty property and casualty
insurance, financial services such as employee benefits outsourcing, third party
administration, and related consulting. USI was founded in 1994 and according to
Business Insurance, is the sixth largest insurance and financial services broker
in the U.S. USI is headquartered in San Francisco and operates out of 77 offices
in 21 states. For more information about USI, visit www.usi-insurance.com.

See attached biographies

<PAGE>

                                     RELEASE
                                     -------

          Bernard H. Mizel ("Mizel"), as RELEASOR, for good and valuable
consideration, the receipt of which is hereby acknowledged, releases and
discharges U.S.I. Holdings Corporation, its officers and directors, parents,
divisions, subsidiaries, affiliates, insurers, attorneys, and each of their
successors and assignees (all, collectively, "RELEASEE"), from all actions,
causes of action, suits, debts, dues, sums of money, accounts, reckonings,
bonds, bills, specialties, covenants, contracts, controversies, agreements,
promises, variances, trespasses, damages, judgments, extents, executions, claims
and demands whatsoever, in law, admiralty or equity, which against the RELEASEE,
the RELEASOR, and RELEASOR'S heirs, executors, administrators, successors and
assigns ever had, now has or hereafter can, shall or may have, for, upon, or by
reason of any matter, cause or thing whatsoever from the beginning of the world
to the day of the date of this release; provided, however, that excepted from
                                        --------  -------
this Release are all claims relating to or arising from the Separation Agreement
dated as of January 23, 2002 (the "Separation Agreement") executed herewith.

          Without in any way limiting the foregoing, RELEASOR specifically
releases and discharges RELEASEE from any claims arising out of or related to
RELEASOR's employment or separation from employment, including, but not limited
to, any claims for salary, bonuses, severance pay, vacation pay, or any benefits
under the Employee Retirement Income Security Act, sexual harassment, or
discrimination based on race, color, national origin, ancestry, religion,
marital status, sex, sexual orientation, citizenship status, pregnancy, leave of
absence, medical condition or disability (as defined by the Americans with
Disabilities Act, or any other state or local law), or any other unlawful
discrimination (including, without limitation, claims under the Age
Discrimination in Employment Act, as amended by the Older Workers Benefit
Protection Act of 1990, Title VII of the Civil Rights Act, as amended, or any
other federal, state, or local law), breach of implied or express contract,
breach of promise, misrepresentation, negligence, fraud, estoppel, defamation,
infliction of emotional distress, loss of consortium, violation of public policy
or wrongful or constructive discharge, and for attorneys' fees; provided,
                                                                --------
however, that excepted from this Release are all claims relating to or arising
-------
from the Separation Agreement.

          RELEASOR agrees that this Release includes a full and final release by
RELEASOR of all unknown claims or damages, as well as a release by RELEASOR of
any and all claims now known or disclosed that arise as a result of any act or
omission occurring before RELEASOR signs this Release. Therefore, RELEASOR
waives any and all rights or benefits under the terms of Section 1542 of the
California Civil Code, which provides as follows: "A general release does not
extend to claims which the creditor does not know or suspect to exist in his
favor at the time of executing the release, which if known by him must have
materially affected his settlement with the debtor."

<PAGE>

          IN WITNESS HEREOF, the RELEASOR has hereunto set RELEASOR'S hand on
the 23rd day of January 2002.

                                                       /s/ Bernard H. Mizel
                                                       -------------------------
                                                           Bernard H. Mizel

State of California County of San Franciseo ss.:

     On January 23, 2002, before me personally came Bernard H. Mizel, to me
known, and known to me to be the individual described in, and who executed the
foregoing RELEASE, and duly acknowledged to me that he executed the same.

                                                       /s/ Donna J. Doxey-Bowers
                                                       -------------------------
                                                       Notary Public
[GRAPHIC]

<PAGE>

                                     RELEASE
                                     -------

          U.S.I. Holdings Corporation, a corporation organized under the laws of
Delaware, and USI Insurance Services Corp., a corporation organized under the
laws of Delaware, for itself, and for each of its officers and directors,
parents, divisions, subsidiaries, affiliates, insurers, attorneys, and each of
their successors and assigns (all, collectively, "RELEASOR"), for good and
valuable consideration, the receipt of which is hereby acknowledged, releases
and discharges Bernard H. Mizel and his attorneys, heirs, executors,
administrators, successors and assigns (all, collectively, "RELEASEE"), from all
actions, causes of action, suits, debts, dues, sums of money, accounts,
reckonings, bonds, bills, specialties, covenants, contracts, controversies,
agreements, promises, variances, trespasses, damages, judgments, extents,
executions, claims and demands whatsoever, in law, admiralty or equity, which
against the RELESEE, the RELEASOR, and the RELEASOR'S successors and assigns
ever had, now have or hereafter can, shall or may have, for, upon, or by reason
of any matter, cause or thing whatsoever from the beginning of the world to the
day of the date of this release; provided, however, that excepted from this
                                 --------  -------
Release are all claims relating to or arising from the Separation Agreement
dated as of January 23, 2002 (the "Separation Agreement") executed herewith.

          The RELEASE contained herein is a full and final release applying to
all obligations, liabilities, actions, and losses, including but not limited to
damages, costs, expenses, and attorneys' fees, that may be incurred by RELEASOR
and arising out of or in any way connected with the employment relationship
between the parties, or the termination thereof. It is the intention of the
RELEASOR in executing this Agreement that the same shall be effective as a bar
to each and every claim, demand, and cause of action by the RELEASOR hereto
based on the parties' employment relationship and separation, and the RELEASOR
knowingly, voluntarily, and expressly waives any and all rights and benefits
otherwise conferred by the provisions of section 1542 of the California Civil
Code which states as follows:

          A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES
NOT KNOW OR SUSPECT TO EXIST IN HIS FAVOR AT THE TIME OF EXECUTING THE RELEASE
WHICH, IF KNOWN BY HIM, MUST HAVE MATERIALLY AFFECTED HIS SETTLEMENT WITH THE
DEBTOR.

          RELEASOR understands the foregoing statutory language of section 1542
of the California Civil Code and nevertheless elects to and hereby does release
and waive all claims it may have against RELEASEE, whether known or unknown,
contingent or non-contingent, arising from the parties' employment relationship
and separation therefrom. RELEASOR fully understands that if the facts with
respect to this Agreement are hereafter found to be other than or different from
the facts now believed to be true, from whatever cause or for whatever reason,
RELEASOR expressly accepts and assumes the risk of such possible difference in
fact and agrees that this Agreement shall be and remain unaffected,
notwithstanding any such differences.

          The words "RELEASOR" and "RELEASEE" include all releasors and all
releasees under this RELEASE.

          This RELEASE may not be changed orally.

<PAGE>

          IN WITNESS HEREOF, the RELEASOR has caused this RELEASE to be executed
by its duly authorized officer on the 23rd day of January 2002.

                                            U.S.I HOLDING CORPORATION

                                            By: /s/David Eslick
                                                --------------------------------
                                                  Name: David Eslick
                                                  Title: Chief Executive Officer

                                            USI INSURANCE SERVICES CORP.

                                            By: /s/David Eslick
                                                --------------------------------
                                                  Name: David L. Eslick
                                                  Title: Chief Executive Officer

STATE OF California, COUNTY OF San Francisco ss.:

     On January 23, 2002, before me personally came David L. Eslick, to me
known, who, by me duly sworn, did depose and say that deponent is the Chief
Executive Officer of U.S.I. Holdings Corporation and USI Insurance Services
Corp., the corporations described in, and which executed the foregoing RELEASE,
and that deponent signed deponent's name by order of the boards of directors of
the corporations.

                                                        Donna J. Doxey-Bowers
                                                        ---------------------
                                                        Notary Public
[GRAPHIC]

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