Document:

<PAGE>
                                                                    EXHIBIT 10.2

EXECUTION

                                 AMENDMENT NO. 1
                             REINSURANCE AGREEMENT #
                          (MODIFIED COINSURANCE TREATY)

                  (hereinafter referred to as the "Agreement")

                                     between

                     LIFE REASSURANCE CORPORATION OF AMERICA
                             (STAMFORD, CONNECTICUT)
                     (hereinafter referred to as "Life Re")

                                       and

                      SAGE LIFE ASSURANCE OF AMERICA, INC.
                             (STAMFORD, CONNECTICUT)

                   (hereinafter referred to as the "Company")

                           EFFECTIVE: FEBRUARY 1, 1999
                      AMENDMENT EFFECTIVE: OCTOBER 1, 2001
<PAGE>
                                 AMENDMENT NO. 1

         This Amendment No. 1, effective as of October 1, 2001 (the
"Amendment"), amends the Reinsurance Agreement, dated effective as of February
1, 1999 (the "Agreement"), made and entered into by and between Sage Life
Assurance of America, Inc., a Delaware stock life insurance corporation, as
ceding insurer (the "Company") and Life Reassurance Corporation of America, a
Connecticut stock life insurance corporation, as reinsurer ("Life Re"). All
defined terms used herein that are not otherwise defined herein shall have the
meaning assigned to such terms in the Agreement. All references to the
Agreement, whether in this Amendment or in the Agreement, shall mean the
Agreement, as amended by this Amendment.

                                   WITNESSETH:

        WHEREAS, pursuant to the terms of the Agreement, the Company has agreed
to cede, and Life Re has agreed to assume and accept, a combination of
coinsurance and modified coinsurance coverage of certain variable annuity and
variable life insurance risks (the "Risks") with respect to the specified
original policy forms issued by the Company (each, a "Reinsured Contract" and,
taken together, the "Reinsured Contracts"); and

        WHEREAS, pursuant to the terms of the Agreement, the Company has
requested that the scope of the reinsurance provided thereby be expanded to
include certain new products to be issued by the Company effective October 1,
2001; and

         WHEREAS, Life Re is amenable to such expansion of the terms of
reinsurance provided by the Agreement;

         WHEREAS, accordingly, the Company and Life Re have agreed to amend the
Agreement as set forth herein.

         NOW, THEREFORE, in consideration of the mutual promises and covenants
herein contained, the parties to this Amendment No. 1 do hereby agree as
follows:

         1. New Products. Schedules A and B of the Agreement are deleted in
their entirety and replaced with the attached amended and restated Schedules A
and B.

         2. Enhancements. Article 1, Section 6 of the Agreement is amended and
modified by adding the following words to the end of such provision:

      "In no event shall Life Re participate in punitive, compensatory or bad
      faith damages as may be awarded against the Company or any agent or
      affiliate thereof as a result of any act, omission or course of conduct
      committed by or on behalf of the Company in connection with the marketing,
      placement, performance or administration of the policies reinsured
      hereunder."

         3. Compliance with Law. Article XI of the Agreement is amended and
modified by adding thereto a new Section 13 as set forth below:

      "13.     Compliance with Law

     The Company represents and warrants that it understands the requirements of
the
<PAGE>
insurance, securities/investment and taxation laws or regulations of the
jurisdictions in which it will operate with respect to the Reinsured Contracts
and further, acknowledges that it is responsible for compliance with all
applicable laws, rules and regulations, including but not limited to, any such
federal, state or local laws rules, rules or regulations of any jurisdiction
pertaining to (i) the design, marketing, issuance, management or administration
of the Reinsured Contracts, (ii) taxation (including, without limitation,
withholding obligations with respect thereto) by any jurisdiction of amounts
earned with respect to the Reinsured Contracts, (iii) currency restrictions or
limitations applicable with respect to the source of funds for, or the
disposition of proceeds from, the Reinsured Contracts, including, without
limitation, the U.S. Money Laundering Abatement and Financial Anti-Terrorism Act
of 2001; and further, that it now has and shall maintain during the term of this
Agreement the licenses, permits and authorizations necessary or appropriate to
the conduct of its business. The Company shall be solely responsible for any
damages, fines, penalties, loss, liability, cost or expense incurred thereby,
and shall fully indemnify and hold Swiss Re and its Affiliates harmless in
respect of, all damages, fines, penalties, loss, liability, cost or expense
incurred by Swiss Re or any affiliate thereof which Swiss Re or any such
affiliate may incur, arising out of or relating to the Company's failure to
comply with any applicable law, rule or regulation or failure to properly
maintain required licensure."

         4. Other Reinsurance. Article I, Section 4 of the Agreement is modified
and amended by adding the following words to the end of such provision:

            It is understood and agreed that the coinsurance and modified
            coinsurance provided hereby is net of such inuring other reinsurance
            (i) whether or not collected or collectible by the Company and (ii)
            whether or not maintained in force or continued by the Company. In
            the event that the Company shall fail to maintain in force such
            Other Reinsurance as currently in effect, or otherwise on terms
            acceptable to Life Re, Life Re's liability and obligation hereunder
            shall be modified to place Life Re fully in the same position as if
            such Other Reinsurance had been so maintained and performed.

         5. Exclusion of Certain Benefits.

        (a) Article I, Section 3 of the Agreement is deleted in its entirety and
replaced with the following:

        Life Re will reinsure a quota share of each Reinsured Contract as set
        out in Schedule A provided, however, that for purposes of Article II and
        Article IV, Sections 2, 4, 5 and 6 hereof, Life Re shall not reinsure,
        and shall have no liability or obligation in respect of, and Life Re's
        Share (as hereinafter defined) shall be zero in respect of (i) any and
        every Other Reinsured Rider (as hereinafter defined) and (ii) except to
        the extent that any such loss, liability or obligation has been fully
        reinsured by virtue of the Other Reinsurance (as hereinafter defined),
        any loss, liability or obligation under or in respect of any Reinsured
        Contract arising out of any feature or element thereof providing a
        guaranteed minimum benefit thereunder determined without reference to
        the value of the investments supporting such Reinsured Contract (a
        "Guaranteed Element"). For purposes of this Agreement, the term "Other
        Reinsured Rider" shall mean any rider, endorsement or addition to any of
        the Reinsured Contracts denoted as such on Schedule A hereto and
        including, without limitation, any such rider or endorsement to any of
        the Reinsured Contracts providing any guaranteed minimum benefits under
        the Reinsured

                                       3
<PAGE>
        Contracts in the event of any market decline, death, disability or other
        event.

        The share of each such Reinsured Contract so reinsured by Life Re is
        herein referred to as "Life Re's Share."

         6. Policyholder Charges for Other Reinsured Riders. Article IV, Section
4, Clause C of the Agreement is amended by adding to the end of the final
sentence thereof the words "and policyholder cost of the Other Reinsured
Riders."

         7. Effectiveness of this Amendment. This Amendment is to be effective
as of October 1, 2001. It is acknowledged that Life Re has subsequently been
renamed Swiss Re Life & Health America Inc.

         8. Counterparts. This Amendment may be executed simultaneously in any
number of counterparts, each of which will be deemed an original, but all of
which will constitute one and the same instrument.

IN WITNESS WHEREOF, the Company and Life Re have executed this Amendment No. 1
on the dates set forth below.

                                        SAGE LIFE ASSURANCE OF AMERICA, INC.

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

                                        LIFE REASSURANCE CORPORATION
                                        OF AMERICA

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

                                       4
<PAGE>
                                   SCHEDULE A
              AMENDED AND RESTATED EFFECTIVE AS OF OCTOBER 1, 2001

Quota Share Percentages:
Deferred Variable Annuity - With Surrender Charges ("DVA")                   73%
Deferred Variable Annuity - With No Surrender Charges ("DVA")                65%
Modified Single Premium Variable Life ("MSPVL")                              80%

EFFECTIVE AS OF OCTOBER 1, 2001
SageChoice                                                                   79%
SageFreedom                                                                  69%
SagePlus                                                                     81%
SageSelect                                                                   79%

                                       5
<PAGE>
RETENTION LIMITS

Deferred Variable Annuity (with and without Surrender Charges)

Basic Death Benefit (BDB): 0% of the excess of the Guaranteed Minimum Death
Benefit (GMDB) over the account value.

Accidental Death Benefit (ADB): 0% of the ADB

Earnings Enhancement Death Benefit (EEDB): 0% of the EEDB

Guaranteed Minimum Income Benefit (GMIB): 0% of the Commuted Benefit at
Annuitization

The items above are subject to the following limitations imposed by other
reinsurance referenced in Article III section 3:

         1.       The maximum BDB reinsured on any one life is $1,000,000.

         2.       The maximum annual aggregate BDB paid by the reinsurer during
                  any calendar year is capped at 2.00% of the average aggregate
                  account value.

         3.       The maximum ADB reinsured on any one life is $250,000.

         4.       The maximum EEDB reinsured on any one life is $2,000,000.

         5.       The GMIB is reinsured for premiums of $5,000,000 or less on
                  any one life.

         6.       The maximum GMIB annual election rate paid by the reinsurer is
                  20%.

         7.       The maximum GMIB paid by the reinsurer over 25 years is capped
                  at the lesser of 7.5% of premium or 0.60% of average benefit
                  base per year during the waiting period.

Deferred Variable Annuities introduced October 4, 2001 - SageChoice,
SageFreedom, SagePlus, and SageSelect

Basic Death Benefit (BDB): 0% of the excess of the Guaranteed Minimum Death

Benefit (GMDB) over the account value.

Accidental Death Benefit (ADB): 0% of the ADB

Earnings Enhancement Death Benefit (EEDB): 0% of the EEDB

Earnings Enhancement Life Rider (EELR): 0% of the EELR

Guaranteed Minimum Income Benefit (GMIB): 0% of the Commuted Benefit at
Annuitization

Enhanced Guaranteed Minimum Income Benefit (EGMIB): 0% of the Commuted Benefit
at Annuitization

Guaranteed Minimum Account Balance (GMAB): 0% of the GMAB Benefit

The items above are subject to the following limitations imposed by other
reinsurance referenced in Article III section 3:

                                       6
<PAGE>
         1.       The maximum BDB reinsured on any one life is $5,000,000.

         2.       Excluding contracts with 5 or 7 year GMAB benefits, BDB claims
                  paid by the reinsurer are limited to 4.5%, 5.0%, 5.5% of
                  aggregate premium for return of premium, ratchet deferred 7
                  years, and ratchet respectively.

         3.       For contracts with 5 or 7-year GMAB benefits, BDB claims paid
                  by the reinsurer are limited to 4.0% of aggregate premium for
                  all types combined.

         4.       ADB claims paid by the reinsurer are limited to 1% of
                  aggregate premium.

         5.       The maximum ADB reinsured on any one life is $250,000.

         6.       The maximum EEDB and EELR reinsured on any one life is
                  $5,000,000.

         7.       EEDB and EELR claims paid by the reinsurer are limited to
                  13.5% of aggregate premium.

         8.       The GMIB is reinsured for premiums of $5,000,000 or less on
                  any one life.

         9.       The maximum GMIB annual election rate paid by the reinsurer is
                  20%.

         10.      The GMIB is reinsured for ratios of current to guaranteed
                  annuity price of up to 80%.

         11.      The maximum GMIB paid by the reinsurer over 25 years is capped
                  at the lesser of 7.5% of premium or 0.60% of average benefit
                  base per year during the waiting period.

         12.      The maximum enhanced GMIB paid by the reinsurer over 25 years
                  is capped at the lesser of 20.00% of premium or 1.55% of
                  average benefit base per year during the waiting period.

         13.      The GMAB benefit is reinsured for premiums not to exceed
                  $5,000,000 on any one life.

         14.      Five year, 7 year, and 10 year GMAB claims paid by the
                  reinsurer are limited to 5.5%, 8.5%, and 12.5% of aggregate
                  premium respectively.

Modified Single Premium Variable Life

The retained basic death benefit and accidental death benefit is 20% of the
combined risk up to a maximum retention of $50,000 per life.

The items above are subject to the following limitations imposed by other
reinsurance referred in Article III section 3:

         1.       The maximum basic death benefit reinsured on any one life is
                  $5,000,000.

         2.       The ADB cannot exceed $250,000 and expires at attained age 81.

DVA Group Policy Forms

NOTE: * DENOTES AN OTHER REINSURED RIDER

                                       7
<PAGE>
1a. Generic Group Certificates:

DVA-C-9712 (Basic Certificate)
DVA-C-2001C (Core Basic Certificate)
DVA-C-2001SS (Short Surrender Charge Basic Certificate)
DVA-C-2001B (Bonus Basic Certificate)
DVA-C-2001Z (No Surrender Charge Basic Certificate)

1b. Generic Optional Riders:

DVA-C-ADB-9712 (Accidental Death Benefit Rider)*
DVA-C-ADB-2001 (Accidental Death Benefit Rider)*
DVA-C-WSC-9712 (Waiver Surrender Charge Rider)*
DVA-C-IRA-9901 (IRA Rider)*
DVA-C-IRA-2002 (IRA Rider)*
DVA-C-(S)IRA-9712 (IRA Rider)*
DVA-C-(R)IRA-9712 (IRA Rider)*
DVA-C-(S)IRA-9907 (IRA Rider)*
DVA-C-(R)IRA-9907 (IRA Rider)*
DVA-C-GMIB-9712 (Guaranteed Minimum Income Benefit Rider)*
DVA-C-EDB-9712 (Earnings Enhancement Death Benefit Rider)*
DVA-C-EGMDB-2001 (Enhanced Guaranteed Minimum Death Benefit Rider)*
DVA-C-EGMIB-2001 (Enhanced Guaranteed Minimum Income Benefit Rider)*
DVA-C-GMIB-2001 (Guaranteed Minimum Income Benefit Rider)*
DVA-C-EEDB-2001 (Earnings Enhancement Death Benefit Rider)*
DVA-C-EGMDB-2002 (Enhanced Guaranteed Minimum Death Benefit Rider)*
DVA-C-EGMIB-2002 (Enhanced Guaranteed Minimum Income Benefit Rider)*
DVA-C-GMIB-2002 (Guaranteed Minimum Income Benefit Rider)*
DVA-C-EEDB-2002 (Earnings Enhancement Death Benefit Rider)*
DVA-C-EELR-2002 (Earnings Enhancement Life Insurance Rider)*
DVA-C-GMAV-2001 (Guaranteed Minimum Account Value Benefit Rider)*

1c. Generic Applications:

AP-DVA-C-9805 (Application)
AP-DVA-C-2001 (Application)
AP-DVA-C-2001C (Core Application)
AP-DVA-C-2001SS (Short Surrender Charge Application)
AP-DVA-C-2001B (Bonus Application)
AP-DVA-C-2001Z (No Surrender Charge Application)

1d. Generic Master Group Contracts:

MGC-C-9712 (Master Group Contract)
DVA-(MGC)-2001C (Core Master Group Contract)
DVA-(MGC)-2001SS (Short Surrender Master Group Contract)
DVA-(MGC)-2001B (Bonus Master Group Contract)
DVA-(MGC)-2001Z (No Surrender Charge Master Group Contract)

2. State Variations as applicable by State

                                       8
<PAGE>
                           DVA Individual Policy Forms

NOTE: * DENOTES AN OTHER REINSURED RIDER

1a. Generic Group Certificates:

DVA-9712 (Basic Contract)
DVA1-9712 (Basic Contract)
DVAZ-9712 (Basic Contract)
DVA-2001C (Core Basic Contract)
DVA-2001SS (Short Surrender Charge Basic Contract)
DVA-2001B (Bonus Basic Contract)
DVA-2001Z (No Surrender Charge Basic Contract)

1b. Generic Optional Riders:

DVA-ADB-9712 (Accidental Death Benefit Rider)*
DVA-WSC-9712 (Waiver Surrender Charge Rider)*
DVA-IRA-9901 (IRA Rider)*
DVA-(S)IRA-9712 (Simple IRA Rider)*
DVA-(R)IRA-9712 (Roth IRA Rider)*
DVA-(S)IRA-9907 (Simple IRA Rider)*
DVA-(R)IRA-9907 (Roth IRA Rider)*
DVA-GMIB-9712 (Guaranteed Minimum Income Benefit Rider)*
DVA-EDB-9712 (Earnings Enhancement Death Benefit Rider)*
DVA-EGMDB-2001 (Enhanced Guaranteed Minimum Death Benefit Rider)*
DVA-EGMIB-2001 (Enhanced Guaranteed Minimum Income Benefit Rider)*
DVA-GMIB-2001 (Guaranteed Minimum Income Benefit Rider)*
DVA-EEDB-2001 (Earnings Enhancement Death Benefit Rider)*
DVA-EGMDB-2002 (Enhanced Guaranteed Minimum Death Benefit Rider)*
DVA-EGMIB-2002 (Enhanced Guaranteed Minimum Income Benefit Rider)*
DVA-GMIB-2002 (Guaranteed Minimum Income Benefit Rider)*
DVA-EEDB-2002 (Earnings Enhancement Death Benefit Rider)*
DVA-ADB-2002 (Accidental Death Benefit Rider)*
DVA-ADB-2001 (Accidental Death Benefit Rider)*
DVA-EELR-2002 (Earnings Enhancement Life Insurance Rider)*
DVA-GMAV-2001 (Guaranteed Minimum Account Value Benefit Rider)*

1c. Generic Applications:

AP-DVA-9805 (Application)
AP-DVA-2001 (Application)
AP-DVA-2001C (Core Application)
AP-DVA-2001SS (Short Surrender Charge Application)
AP-DVA-2001B (Bonus Application)
AP-DVA-2001Z (No Surrender Charge Application)

2. State Variations as applicable by State

                                       9
<PAGE>
                            MSPVL Group Policy Forms

NOTE: * DENOTES AN OTHER REINSURED RIDER

1. Generic forms that apply:

MSPVL-C-9801 (Basic Certificate)
MSPVL-C-9906 (Basic Certificate)
MSPVL-C-ACCDB-9801 (Accidental Death Benefit Rider)*
MSPVL-C-ADB-9801 (Accidental Death Benefit Rider)*
MSPVL-C-COI-9801 (Change of Insured Rider)
MSPVL-C-WSC-9801 (Waiver of Surrender Charge Rider)*
AP-MSPVL-C-9806 (Application)
TIA-MSPVL-C-9806 (Temporary Insuring Agreement)
APII-MSPVL-C-9806 (Part II of Application)
MSPVL-C-NLE-9906 (No Lapse Endorsement)
MSPVL-C-VSO-2001 (Variable Settlement Options Endorsement)

2. State Variations as applicable by State

                          MSPVL Individual Policy Forms

NOTE: * DENOTES AN OTHER REINSURED RIDER

1. Generic forms that apply:

MSPVL-9801 (Basic Contract)
MSPVL1-9801 (Basic Contract)
MSPVL-ACCDB-9801 (Accidental Death Benefit Rider)*
MSPVL-ADB-9801 (Accidental Death Benefit Rider)*
MSPVL-COI-9801 (Change of Insured Rider)
MSPVL-WSC-9801 (Waiver of Surrender Charge Rider)*
AP-MSPVL-9806 (Application)
TIA-MSPVL-9806 (Temporary Insuring Agreement)
APII-MSPVL-9806 (Part II of Application)
MSPVL-NLE-9906 (No Lapse Endorsement)
MSPVL-VSO-2001 (Variable Settlement Options Endorsement)

2. State Variations as applicable by State

                                       10
<PAGE>
                                   SCHEDULE B
              AMENDED AND RESTATED EFFECTIVE AS OF OCTOBER 1, 2001

                            DEFERRED VARIABLE ANNUITY
                             WITH SURRENDER CHARGES

<TABLE>
<CAPTION>
                  EXPENSE                                              ALLOWANCE
                  -------                     ---------------------------------------------------------
                                                 ISSUE AGES            ISSUE AGES          ISSUE AGES
COMMISSIONS                                         0-80                 81- 85              86 - 90
-----------                                   -------------            ----------          ------------
<S>                                           <C>                   <C>                   <C>
 Year 1                                       8.22% of              4.45% of              3.08% of
                                              Reinsurance Premium   Reinsurance Premium   Reinsurance
                                              less charge backs     less charge backs     Premium less
                                                                                          charge backs
 Year 2                                       8.22% of              4.45% of              3.08% of
                                              Reinsurance Premium   Reinsurance Premium   Reinsurance
                                              less charge backs     less charge backs     Premium less
                                                                                          charge backs
 Year 3                                       6.84% of              3.42% of              1.71% of
                                              Reinsurance Premium   Reinsurance Premium   Reinsurance
                                              less charge backs     less charge backs     Premium less
                                                                                          charge backs
 Year 4                                       5.48% of              2.74% of              1.37% of
                                              Reinsurance Premium   Reinsurance Premium   Reinsurance
                                              less charge backs     less charge backs     Premium less
                                                                                          charge backs
 Year 5                                       4.11% of              2.05% of              1.03% of
                                              Reinsurance Premium   Reinsurance Premium   Reinsurance
                                              less charge backs     less charge backs     Premium less
                                                                                          charge backs
 Year 6+                                      2.74% of              1.37% of                      N/A
                                              Reinsurance Premium   Reinsurance premium
                                              less charge backs     less charge backs
DISTRIBUTION ALLOWANCE
 Year 1                                       1.03% of Reinsurance Premium
 Year 2+                                      1.03% of Reinsurance Premium

PREMIUM TAXES                                 0.0% of Reinsurance Premium
FEES TO TPAS
 Issue                                        $28.00 per policy issued x Life Re's Share
 Maintenance                                  $48.00 annually per policy, payable quarterly x Life Re's Share

DAC TAX REIMBURSEMENT ("DTR") ON              (Capitalization Rate x Statutory Tax Rate x NQ
NON-QUALIFIED PREMIUM ONLY                    Reinsurance Premium) / (1-Statutory Tax Rate); less
                                              Life Re's Share of DAC Tax Amortization
</TABLE>

                                       11
<PAGE>
                            DEFERRED VARIABLE ANNUITY
                            WITH NO SURRENDER CHARGES
<TABLE>
<CAPTION>
                  EXPENSE                                              ALLOWANCE
                  -------                     ---------------------------------------------------------
                                                 ISSUE AGES            ISSUE AGES          ISSUE AGES
COMMISSIONS                                         0-80                 81- 85              86 - 90
-----------                                   -------------            ----------          ------------
<S>                                           <C>                   <C>                  <C>
 Year 1                                       5.77% of              3.08% of             0.77% of
                                              Reinsurance Premium   Reinsurance          Reinsurance
                                              less charge backs     Premium less         Premium less
                                                                    charge backs         charge backs
 Year 2 - 5                                   5.38% of additional   2.69% of             0.38% of
                                              Reinsurance           additional           additional
                                              Premiums less         Reinsurance          Reinsurance
                                              charge backs, plus    Premiums less        Premiums less
                                              0.25% of Account      charge backs, plus   charge backs, plus
                                              Value annually x      0.25% of Account     0.25% of Account
                                              Life Re's Share,      Value annually x     Value annually x
                                              payable quarterly     Life Re's Share,     Life Re's Share,
                                                                    payable quarterly    payable quarterly
 Year 6+                                      2.31% of additional   0.38% of                     N/A
                                              Reinsurance           additional
                                              Premiums less         Reinsurance
                                              charge backs, plus    Premiums less
                                              0.25% of Account      charge backs, plus
                                              Value annually x      0.25% of Account
                                              Life Re's Share,      Value annually x
                                              payable quarterly     Life Re's Share,
                                                                    payable quarterly

           DISTRIBUTION ALLOWANCE
 Year 1                                       1.15% of Reinsurance Premium
 Year 2+                                      1.15% of Reinsurance Premium

               PREMIUM TAXES                  0.0% of Reinsurance Premium

FEES TO TPAS
 Issue                                        $28.00 per policy issued x Life Re's Share
 Maintenance                                  $48.00 annually per policy, payable quarterly x Life Re's
                                              Share
DAC TAX REIMBURSEMENT ("DTR") ON              (Capitalization Rate x Statutory Tax Rate x NQ
NON-QUALIFIED PREMIUM ONLY                    Reinsurance Premium) / (1-Statutory Tax Rate) less
                                              Life Re's Share of DAC Tax Amortization
</TABLE>

                                       12
<PAGE>
                      MODIFIED SINGLE PREMIUM VARIABLE LIFE

<TABLE>
<CAPTION>
                  EXPENSE                                               ALLOWANCE
                                                                        ---------
COMMISSIONS                                         ISSUE AGES 0 - 80                 ISSUE AGES 81+
-----------                                         -----------------                 --------------
<S>                                           <C>                             <C>
 Year 1                                       9.38% of Reinsurance Premium    5.00% of Reinsurance Premium
                                              less charge backs               less charge backs
 Year 2                                       9.38% of additional             5.00% of additional
                                              Reinsurance Premium less        Reinsurance Premium less
                                              charge backs                    charge backs
 Year 3                                       7.50% of additional             3.75% of additional
                                              Reinsurance Premium less        Reinsurance Premium less
                                              charge backs                    charge backs
 Year 4                                       6.25% of additional             2.50% of additional
                                              Reinsurance Premium less        Reinsurance Premium less
                                              charge backs                    charge backs
 Year 5                                       5.00% of additional             1.25% of additional
                                              Reinsurance Premium less        Reinsurance Premium less
                                              charge backs                    charge backs
 Year 6                                       3.75% of additional             1.25% of additional
                                              Reinsurance Premium less        Reinsurance Premium less
                                              charge backs                    charge backs
 Year 7+                                      2.50% of additional             1.25% of additional
                                              Reinsurance Premium less        Reinsurance Premium less
                                              charge backs                    charge backs

           DISTRIBUTION ALLOWANCE
 Year 1                                       1.43% of Reinsurance Premium
 Year 2+                                      1.43% of Reinsurance Premium

               PREMIUM TAXES                  2.25% of Reinsurance premium
FEES TO TPAS
 UNDERWRITING & ISSUE
      Simplified                              $84.00 per policy issued x Life Re's Share
      Medical                                 $280.00 per policy issued x Life Re's Share
      Maintenance                             $52.00 annually per policy, payable quarterly x Life Re's
                                              Share
DAC TAX REIMBURSEMENT ("DTR")                 (Capitalization Rate x Statutory Tax Rate x Reinsurance
                                              Premium) / (1-Statutory Tax Rate) less Life Re's Share of DAC
                                              Tax Amortization
</TABLE>

                                       13
<PAGE>
                     SAGECHOICE (EFFECTIVE OCTOBER 4, 2001)

<TABLE>
<CAPTION>
                  EXPENSE                                                ALLOWANCE
                                                        ISSUE AGES                       ISSUE AGES
COMMISSIONS                                                0-80                            81- 90
-----------                                                ----                            ------
<S>                                            <C>                             <C>
 Year 1 - 2                                    8.86% of Reinsurance Premium,   4.43% of Reinsurance Premium,
                                                     less charge backs               less charge backs
 Year 3                                        7.59% of Reinsurance Premium,   3.80% of Reinsurance Premium,
                                                     less charge backs               less charge backs
 Year 4                                        6.33% of Reinsurance Premium,   3.16% of Reinsurance Premium,
                                                     less charge backs               less charge backs
 Year 5                                        5.06% of Reinsurance Premium,   2.53% of Reinsurance Premium,
                                                     less charge backs               less charge backs
 Year 6                                        3.80% of Reinsurance Premium,   2.53% of Reinsurance Premium,
                                                     less charge backs               less charge backs
 Year 7+                                       2.53% of Reinsurance Premium,   2.53% of Reinsurance Premium,
                                                     less charge backs               less charge backs

DISTRIBUTION ALLOWANCE
 Year 1                                       0.76% of Reinsurance Premium
 Year 2+                                      0.76% of Reinsurance Premium

PREMIUM TAXES                                 0.0% of Reinsurance Premium

FEES TO TPAS
 Issue                                        $28.00 per policy issued x Life Re's Share
 Maintenance                                  $48.00 annually per policy, payable quarterly x Life Re's Share

DAC TAX REIMBURSEMENT ("DTR") ON              (Capitalization Rate x Statutory Tax Rate x NQ
NON-QUALIFIED PREMIUM ONLY                    Reinsurance Premium) / (1-Statutory Tax Rate); less
                                              Life Re's Share of DAC Tax Amortization
</TABLE>

                                       14
<PAGE>
                      SAGEPLUS (EFFECTIVE OCTOBER 4, 2001)

<TABLE>
<CAPTION>
                  EXPENSE                                                ALLOWANCE
                                                        ISSUE AGES                       ISSUE AGES
COMMISSIONS                                                0-80                            81- 90
-----------                                                ----                            ------
<S>                                            <C>                             <C>
 Year 1 - 2                                    7.41% of Reinsurance Premium,   1.85% of Reinsurance Premium,
                                                     less charge backs               less charge backs
 Year 3                                        6.17% of Reinsurance Premium,   1.23% of Reinsurance Premium,
                                                     less charge backs               less charge backs
 Year 4                                        4.94% of Reinsurance Premium,   1.23% of Reinsurance Premium,
                                                     less charge backs               less charge backs
 Year 5                                        3.70% of Reinsurance Premium,   1.23% of Reinsurance Premium,
                                                     less charge backs               less charge backs
 Year 6                                        2.47% of Reinsurance Premium,   1.23% of Reinsurance Premium,
                                                     less charge backs               less charge backs
 Year 7+                                       1.23% of Reinsurance Premium,   1.23% of Reinsurance Premium,
                                                     less charge backs               less charge backs

           DISTRIBUTION ALLOWANCE
 Year 1                                       0.74% of Reinsurance Premium
 Year 2+                                      0.74% of Reinsurance Premium

             INVESTMENT CREDIT                3% of First Year Reinsurance Premium if Reinsurance Premium is
                                              below $40,500;
                                              4% of First Year Reinsurance Premium if Reinsurance Premium is
                                              $40,500 - $405,000; and
                                              5% of First Year Reinsurance Premium if Reinsurance Premium is
                                              greater than $405,000.

               PREMIUM TAXES                  0.0% of Reinsurance Premium
                FEES TO TPAS
 Issue                                        $28.00 per policy issued x Life Re's Share
 Maintenance                                  $48.00 annually per policy, payable quarterly x Life Re's Share

DAC TAX REIMBURSEMENT ("DTR") ON              (Capitalization Rate x Statutory Tax Rate x NQ
NON-QUALIFIED PREMIUM ONLY                    Reinsurance Premium) / (1-Statutory Tax Rate); less
                                              Life Re's Share of DAC Tax Amortization
</TABLE>

                                       15
<PAGE>
                     SAGESELECT (EFFECTIVE OCTOBER 4, 2001)

<TABLE>
<CAPTION>
                  EXPENSE                                                ALLOWANCE
                                                        ISSUE AGES                       ISSUE AGES
COMMISSIONS                                                0-80                            81- 90
-----------                                                ----                            ------
<S>                                            <C>                             <C>
 Year 1                                        5.70% of Reinsurance Premium,   3.16% of Reinsurance Premium,
                                                     less charge backs               less charge backs
 Year 2                                        4.11% of Reinsurance Premium,   1.90% of Reinsurance Premium,
                                                     less charge backs               less charge backs
 Year 3                                        2.53% of Reinsurance Premium,   0.63% of Reinsurance Premium,
                                                     less charge backs               less charge backs
 Year 4+                                       1.90% of Reinsurance Premium,   0.00% of Reinsurance Premium,
                                               less charge backs, plus 1.0%     less charge backs, plus 1.0%
                                                of Account Value annually x     of Account Value annually x
                                                 Life Re's Share, payable         Life Re's Share, payable
                                                         quarterly                       quarterly

           DISTRIBUTION ALLOWANCE
 Year 1                                       0.76% of Reinsurance Premium
 Year 2+                                      0.76% of Reinsurance Premium
               PREMIUM TAXES                  0.0% of Reinsurance Premium
FEES TO TPAS
 Issue                                        $28.00 per policy issued x Life Re's Share
 Maintenance                                  $48.00 annually per policy, payable quarterly x Life Re's Share

DAC TAX REIMBURSEMENT ("DTR") ON              (Capitalization Rate x Statutory Tax Rate x NQ
NON-QUALIFIED PREMIUM ONLY                    Reinsurance Premium) / (1-Statutory Tax Rate); less
                                              Life Re's Share of DAC Tax Amortization
</TABLE>

                                       16
<PAGE>
                     SAGEFREEDOM (EFFECTIVE OCTOBER 4, 2001)

<TABLE>
<CAPTION>
                  EXPENSE                                                ALLOWANCE
                                                        ISSUE AGES                       ISSUE AGES
COMMISSIONS                                                0-80                            81- 90
-----------                                                ----                            ------
<S>                                           <C>                              <C>
 Year 1                                        3.26% of Reinsurance Premium,   1.81% of Reinsurance Premium,
                                                     less charge backs               less charge backs
 Year 2+                                      1.0% of Account Value annually       .75% of Account Value
                                                x Life Re's Share, payable      annually x Life Re's Share,
                                                         quarterly                   payable quarterly

           DISTRIBUTION ALLOWANCE
 Year 1                                       0.87% of Reinsurance Premium
 Year 2+                                      0.87% of Reinsurance Premium

               PREMIUM TAXES                  0.0% of Reinsurance Premium

FEES TO TPAS
 Issue                                        $28.00 per policy issued x Life Re's Share
 Maintenance                                  $48.00 annually per policy, payable quarterly x Life Re's Share

DAC TAX REIMBURSEMENT ("DTR") ON              (Capitalization Rate x Statutory Tax Rate x NQ
NON-QUALIFIED PREMIUM ONLY                    Reinsurance Premium) / (1-Statutory Tax Rate); less
                                              Life Re's Share of DAC Tax Amortization
</TABLE>

                                       17EXHIBIT 10.40.3

                                WAIVER AGREEMENT

     WAIVER AGREEMENT,  dated as of May 9, 2002 (this "Waiver"), is entered into
by and among HORIZON  PERSONAL  COMMUNICATIONS,  INC., an Ohio  corporation (the
"Company"),  BRIGHT  PERSONAL  COMMUNICATIONS  SERVICES,  LLC,  an Ohio  limited
liability  company  ("Bright")  (each of the Company and Bright,  individually a
"Borrower" and  collectively,  the  "Borrowers"),  HORIZON PCS, INC., a Delaware
corporation  (the  "Parent"),  those  Subsidiaries  of the Parent  listed on the
signature pages hereto (together with the Parent, individually a "Guarantor" and
collectively  the  "Guarantors";  the  Guarantors,  together with the Borrowers,
individually  a "Credit  Party" and  collectively  the  "Credit  Parties"),  the
lenders  party  hereto  (the   "Lenders"),   FIRST  UNION   NATIONAL   BANK,  as
Administrative  Agent  (the  "Administrative  Agent"),  WESTDEUTSCHE  LANDESBANK
GIROZENTRALE,  as Syndication Agent and Arranger (the "Syndication  Agent"), and
FORTIS CAPITAL CORP., as Documentation Agent (the "Documentation Agent").

                               W I T N E S S E T H

     WHEREAS,  the Borrowers,  the Guarantors,  the  Administrative  Agent,  the
Syndication  Agent, the Documentation  Agent and the Lenders are parties to that
certain Credit  Agreement dated as of September 26, 2000 (as previously  amended
and as  amended,  modified,  supplemented  or  restated  from time to time,  the
"Credit  Agreement";  capitalized  terms used  herein  shall  have the  meanings
ascribed thereto in the Credit Agreement unless otherwise defined herein);

     WHEREAS,  the Credit Parties have notified the Administrative Agent that an
Event of Default exists under the Credit  Agreement as a result of the violation
by the Credit Parties of the  Consolidated  EBITDA covenant set forth in Section
8.1(d) of the  Credit  Agreement  for the  quarter  ending  March 31,  2002 (the
"Acknowledged Event of Default");

     WHEREAS,  in connection with the  Acknowledged  Event of Default the Credit
Parties have requested a waiver to the Credit Agreement; and

     WHEREAS,  the Required  Lenders  have agreed to such waiver  subject to the
terms and conditions set forth herein.

     NOW,  THEREFORE,  IN  CONSIDERATION  of the  premises  and  other  good and
valuable  consideration,   the  receipt  and  sufficiency  of  which  is  hereby
acknowledged, the parties hereto agree as follows:

                                    SECTION 1

                                     WAIVER

     1.1  WAIVER.  From and after the date  hereof  until the earlier of (i) the
occurrence  of any other Event of Default or (ii) June 15, 2002 (such date,  the
"Waiver  Termination  Date"),  the  Required  Lenders  hereby waive the Event of
Default resulting from the Acknowledged Event of Default. It is acknowledged and

<PAGE>

agreed by the  parties  hereto  that from and  after the date  hereof  until the
Waiver  Termination  Date,  the Borrowers  (i) shall not request,  nor shall the
Lenders be obligated to provide,  Revolving Loans pursuant to Section 2.1 of the
Credit Agreement as long as the Borrower's cash and cash equivalents  (excluding
restricted cash) exceed  $10,000,000 and (ii) shall have at all times on deposit
not less than $105,000,000 in Term Loan A proceeds in account number CP-36484-16
with UBS PaineWebber,  Inc. and shall provide the Administrative Agent with such
reports,  documentation  and other  information  requested thereby to the extent
deemed  necessary  by the  Administrative  Agent to verify  and/or  monitor such
account.  Failure by the Credit Parties to abide by the provisions hereof and to
execute  an  amendment  to the Credit  Agreement  satisfactory  to the  Required
Lenders on or before the Waiver  Termination  Date shall  result in an immediate
Event of Default under the Credit  Agreement and the Lenders  hereby reserve the
right to  declare  an Event of  Default  based  upon the  Acknowledged  Event of
Default  at such time to the extent  deemed  necessary  thereby.  Except for the
specific,  one-time limited waiver set forth above,  nothing set forth herein or
contemplated  hereby is  intended  to  constitute  a waiver of (i) any rights or
remedies available to the Lenders or the  Administrative  Agent under the Credit
Agreement or any other  Credit  Document or under  applicable  law (all of which
rights and  remedies  are  hereby  expressly  reserved  by the  Lenders  and the
Administrative  Agent) or (ii) the Credit  Parties'  obligation  to comply fully
with any duty, term,  condition,  obligation or covenant contained in the Credit
Agreement and the other Credit Documents.

                                    SECTION 2

                               CLOSING CONDITIONS

     2.1 CLOSING CONDITIONS.

     This Waiver shall be effective (the "Waiver  Effective  Date") at such time
as the  following  conditions  shall have been  satisfied (in form and substance
reasonably acceptable to the Administrative Agent):

          (a)  Waiver.  Receipt  by the  Administrative  Agent of a copy of this
     Waiver  duly  executed  by  each of the  Credit  Parties  and the  Required
     Lenders.

          (b)  Resolutions.  Receipt  by the  Administrative  Agent of copies of
     resolutions  of the  Board  of  Directors  of  each of the  Credit  Parties
     approving and adopting this Waiver,  the transactions  contemplated  herein
     and authorizing execution and delivery hereof,  certified by a secretary or
     assistant  secretary  of such  Credit  Party to be true and  correct and in
     force and effect as of the date hereof.

          (c) Fees and  Expenses.  The  Borrowers  shall  have  paid in full all
     reasonable fees and expenses of the Administrative Agent in connection with
     the preparation,  execution and delivery of this Waiver, including, without
     limitation, the fees and expenses of Moore & Van Allen, PLLC.

                                       2
<PAGE>

                                    SECTION 3

                                  MISCELLANEOUS

     3.1  TERMS.  The  term  "Credit  Agreement"  as used in each of the  Credit
Documents shall hereafter mean the Credit  Agreement as modified by this Waiver.
Except as specifically modified hereby or otherwise agreed, the Credit Agreement
is hereby  ratified  and  confirmed  and shall  remain in full  force and effect
according to its terms.

     3.2  REPRESENTATIONS  AND WARRANTIES OF CREDIT PARTIES.  Each of the Credit
Parties represents and warrants as follows:

          (a) It has taken all  necessary  action to  authorize  the  execution,
     delivery and performance of this Waiver.

          (b) This Waiver has been duly  executed  and  delivered by such Person
     and  constitutes  such  Person's  legal,  valid  and  binding   obligation,
     enforceable in accordance with its terms, except as such enforceability may
     be  subject  to  (i)  bankruptcy,  insolvency,  reorganization,  fraudulent
     conveyance  or transfer,  moratorium or similar laws  affecting  creditors'
     rights  generally  and (ii) general  principles  of equity  (regardless  of
     whether such  enforceability  is  considered  in a proceeding  at law or in
     equity).

          (c) No  consent,  approval,  authorization  or order  of,  or  filing,
     registration or qualification with, any court or governmental  authority or
     third party is  required  in  connection  with the  execution,  delivery or
     performance by such Person of this Waiver.

          (d) The  representations  and warranties set forth in Article V of the
     Credit  Agreement are,  subject to the limitations set forth therein,  true
     and correct in all  material  respects  as of the date  hereof  (except for
     those which expressly relate to an earlier date).

     3.3 ACKNOWLEDGMENT OF GUARANTORS. The Guarantors acknowledge and consent to
all of the terms and  conditions  of this  Waiver and agree that this Waiver and
all  documents  executed  in  connection  herewith  do not  operate to reduce or
discharge the Guarantors' obligations under the Credit Documents.

     3.4 CREDIT  DOCUMENT.  This Waiver shall constitute a Credit Document under
the terms of the Credit Agreement.

     3.5 ENTIRETY.  This Waiver and the other Credit Documents embody the entire
agreement  between the parties  hereto and  supersede all prior  agreements  and
understandings, oral or written, if any, relating to the subject matter hereof.

     3.6  COUNTERPARTS;  TELECOPY.  This Waiver may be executed in any number of
counterparts, each of which when so executed and delivered shall be an original,
but all of which shall  constitute one and the same  instrument.  Delivery of an
executed  counterpart  to this  Waiver  by  telecopy  shall be  effective  as an

                                       3
<PAGE>

original  and  shall  constitute  a  representation  that  an  original  will be
delivered.

     3.7 GENERAL RELEASE. In consideration of the Required Lenders entering into
this Waiver,  the Credit Parties hereby release the  Administrative  Agent,  the
Lenders,  and the Administrative  Agent's and the Lenders' respective  officers,
employees,  representatives,  agents,  counsel  and  directors  from any and all
actions, causes of action, claims, demands,  damages and liabilities of whatever
kind or  nature,  in law or in  equity,  now  known  or  unknown,  suspected  or
unsuspected  to the extent that any of the  foregoing  arises from any action or
failure to act under the Credit  Agreement or the other  Credit  Documents on or
prior to the date hereof.

     3.8  GOVERNING  LAW.  THIS  WAIVER AND THE RIGHTS  AND  OBLIGATIONS  OF THE
PARTIES UNDER THIS WAIVER SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED IN
ACCORDANCE WITH, THE LAW OF THE STATE OF NORTH CAROLINA.

     3.9  CONSENT  TO  JURISDICTION;   SERVICE  OF  PROCESS;   ARBITRATION.  The
jurisdiction,  services  of  process  and  arbitration  provisions  set forth in
Sections  12.5 and 12.6 of the  Credit  Agreement  are  hereby  incorporated  by
reference, mutatis mutandis.

                           [Signature Pages to Follow]

                                       4
<PAGE>

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

BORROWERS:                      HORIZON PERSONAL COMMUNICATIONS, INC.

                                By: /s/ Pete Holland
                                    ----------------------------------
                                      Name:  Pete Holland
                                             -------------------------
                                      Title: CFO
                                             -------------------------

                                BRIGHT PERSONAL COMMUNICATIONS SERVICES, LLC

                                By: /s/ Pete Holland
                                    ----------------------------------
                                      Name:  Pete Holland
                                             -------------------------
                                      Title: CFO
                                             -------------------------

GUARANTORS:                     HORIZON PCS, INC.

                                By: /s/ Pete Holland
                                    ----------------------------------
                                      Name:  Pete Holland
                                             -------------------------
                                      Title: CFO
                                             -------------------------

<PAGE>

ADMINISTRATIVE AGENT/
LENDERS:                        FIRST UNION NATIONAL BANK,
                                as Administrative Agent and as a Lender

                                By: /s/ Todd E. Kiziah
                                    ----------------------------------
                                      Name:  Todd E. Kiziah
                                             -------------------------
                                      Title: Vice President
                                             -------------------------

<PAGE>

LENDERS (CONTINUED):            WESTDEUTSCHE LANDESBANK GIROZENTRALE,
                                NEW YORK BRANCH, as Syndication Agent and
                                Arranger and as a Lender

                                By: __________________________________
                                      Name: __________________________
                                      Title: _________________________

                                By: __________________________________
                                      Name: __________________________
                                      Title: _________________________

<PAGE>

LENDERS (CONTINUED):            FORTIS CAPITAL CORP.,
                                as Documentation Agent and as a Lender

                                By: __________________________________
                                      Name: __________________________
                                      Title: _________________________

<PAGE>

LENDERS (CONTINUED):            COBANK, ACB

                                By: /s/ Christopher J. Mott
                                    ----------------------------------
                                      Name:  Christopher J. Mott
                                             -------------------------
                                      Title: V.P.
                                             -------------------------

<PAGE>

LENDERS (CONTINUED):            MOTOROLA CREDIT CORPORATION

                                By: /s/ David Kliefoth
                                    ----------------------------------
                                      Name:  David Kliefoth
                                             -------------------------
                                      Title: Vice President
                                             -------------------------

<PAGE>

LENDERS (CONTINUED):            NATIONAL CITY BANK

                                By: /s/ Christian M. Kalmbach
                                    ----------------------------------
                                      Name:  Christian M. Kalmbach
                                             -------------------------
                                      Title: Senior Vice President
                                             -------------------------

<PAGE>

LENDERS (CONTINUED):            BANK OF TOKYO-MITSUBISHI TRUST COMPANY

                                By: __________________________________
                                      Name: __________________________
                                      Title: _________________________

<PAGE>

LENDERS (CONTINUED):            CIT LENDING SERVICES CORPORATION

                                By: /s/ Steven Reedy
                                    ----------------------------------
                                      Name:  Steven Reedy
                                             -------------------------
                                      Title: Vice President
                                             -------------------------

<PAGE>

LENDERS (CONTINUED):            IBM CREDIT CORPORATION

                                By: __________________________________
                                      Name: __________________________
                                      Title: _________________________

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00039-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00039-of-00352.parquet"}]]