Document:

PERSONAL LINES RETROCESSION AGREEMENT

     This Personal Lines  Retrocession  Agreement  ("Agreement")  is made by and
between Motors Insurance Corporation,  a corporation organized under the laws of
the State of Michigan ("MIC"), and Integon Re (Barbados), Limited, a corporation
organized under the laws of Barbados ("the Retrocessionaire").

                                   WITNESSETH:

     In consideration of the mutual covenants  contained in this Agreement,  MIC
and the Retrocessionaire agree as follows.

                                    ARTICLE I

                                  (Definitions)

     As used in this  Agreement,  the following  terms shall have the respective
meanings set forth below.

     A.   Annual  Report  -  The  Quarterly   Report  rendered  by  MIC  to  the
          Retrocessionaire  pursuant  to  Article  V of this  Agreement  for the
          fourth quarter of the calendar year,  which contains  cumulative  data
          for the calendar year.

     B.   Business  - The  Quota  Share  Retrocession  Percentage  specified  in
          Schedule II hereto of MIC's risk arising under the Policies.

     C.   Ceding Fee - An amount equal to the excess of 26.5% of the  Retroceded
          Premium  over the amount of Service Fees paid to MIC during the period
          the respective Retroceded Premium is written.

     D.   Claims - The Quota Share Retrocession Percentage specified in Schedule
          II hereto of claims paid under the Policies,  subject to the limits of
          liability and other conditions of the Policies.

     E.   Combined  Ratio  - The sum of  Losses  Incurred,  Commission  Expense,
          Ceding Fee and Excise Taxes divided by the Earned Premium.

                                        1

<PAGE>

     F.   Commission Expense - The underlying  agents' and brokers'  commissions
          and service or expense allowances that MIC has reimbursed, or that are
          due and payable by MIC, to MIC's ceding  companies with respect to the
          Business.

     G.   Deferred  Acquisition  Costs - The amount of  Commission  Expense  and
          Ceding Fee that the Retrocessionaire has not yet charged to expense as
          of the end of a calendar quarter.

     H.   Earned Premium - The portion of the  Retroceded  Premium earned by the
          Retrocessionaire during a specified time period, as calculated by MIC.

     I.   Excise Taxes - The amount of U.S.  federal  excise tax due and payable
          in respect of premiums MIC  retrocedes to the  Retrocessionaire  under
          this Agreement.

     J.   Final  Retained  Statement  -  As  defined  in  Article  XII  of  this
          Agreement.

     K.   Gross Written  Premium - The portion of gross premiums  written by MIC
          with respect to the Business for a specified period of time.

     L.   Integon  -  Integon  Corporation,   a  Delaware  corporation  and  its
          insurance  subsidiaries  and affiliates who contract with  independent
          insurance agents to write the Policies.

     M.   Integon Agency Account - The separate  business  record  maintained by
          Integon or any of its  affiliates  to track  volume,  experience,  and
          commissions with respect to the Policies.

     N.   Loss  Reserve - The amount  reserved  by MIC from time to time for the
          future payment of Claims which (a) arise from reported occurrences not
          yet paid by MIC;  or (b) arise from  occurrences  which  have  already
          taken  place  but  which  have not yet  been  reported  to MIC.  MIC's
          calculation  of  the  Loss  Reserve  shall  be  consistent   with  its
          calculation of this reserve for purposes of its annual statement filed
          with insurance regulatory authorities.

                                        2

<PAGE>

     O.   Losses  Incurred - Losses Paid on the Business during a specified time
          period,  plus any  increase or minus any  decrease in the Loss Reserve
          during such period.

     P.   Losses Paid - All Claims paid by MIC,  less salvage and other  amounts
          recovered,  with  respect  to  the  Business.  In  the  event  of  the
          insolvency of MIC, this definition shall be modified to the extent set
          forth in Article XIII of this Agreement.

     Q.   Policies - The  insurance  policies  reinsured  by MIC as described in
          Schedule I hereto.

     R.   Quarterly  Report  - The  quarterly  report  rendered  by  MIC  to the
          Retrocessionaire pursuant to Article V of this Agreement.

     S.   Recapture Premium - As defined in Article XII of this Agreement.

     T.   Reinsurance Balance - The amount identified in Item C of Article V.

     U.   Related SCA - As defined in Article XII of this Agreement.

     V.   Retained  Statement - The statement  required pursuant to Article V of
          this Agreement setting forth the Retained Underwriting Losses.

     W.   Retained  Underwriting  Losses - The portion of the Underwriting  Loss
          which is retained by MIC for its own account pursuant to Article II of
          this Agreement.

     X.   Retroceded  Business - Business which is retroceded by MIC and assumed
          by the Retrocessionaire pursuant to this Agreement.

     Y.   Retroceded  Premium  - The  Gross  Written  Premium  less  the  Return
          Premium.  In the  event  that the  Return  Premium  exceeds  the Gross
          Written Premium, the Retroceded Premium shall be negative in amount.

     Z.   Return Premium - The amount of Gross Written  Premium  refunded by MIC
          to its ceding  companies  for a specified  period of time by reason of
          cancellation or other termination of Policies.

     AA.  Service Fees - The Quota Share  Retrocession  Percentage  specified in
          Schedule  II hereto of the  following  amounts:  fee income  including
          policy fees, endorsement fees,

                                        3

<PAGE>

          payment   processing  fees  and  all  other  fees  applicable  to  the
          acquisition or servicing of the Policies that are paid to MIC pursuant
          to MIC's  agreements  with its ceding  companies  with  respect to the
          Policies.

     AB.  Subsidiary  Capital  Account  -  The  subsidiary   bookkeeping  record
          established by the  Retrocessionaire  for a particular series or class
          of shares and  maintained  for the purpose of accounting  for items of
          income and  expense,  gains and  losses,  capital  contributions,  and
          shareholder distributions which are allocated to the particular series
          or class of shares.

     AC.  Termination   Date  -  The  effective  date  of  termination  of  this
          Agreement.

     AD.  Termination  Premium - The sum of the Unearned  Premium  Reserve as of
          the Termination  Date as shown in the  Termination  Statement plus the
          discounted  amount as  determined  under  section 846 of the  Internal
          Revenue  Code of  1986,  as  amended,  of the Loss  Reserve  as of the
          Termination Date as shown in the Termination Statement.

     AE.  Termination Statement - As defined in Article XII of this Agreement.

     AF.  Underwriting Loss - The excess of Losses Incurred, Commission Expense,
          Ceding Fee, and Excise Taxes over Earned Premium.

     AG.  Unearned  Premium Reserve - The reserve  generated from the cumulative
          net excess of Retroceded Premium over Earned Premium.

     AH.  Unrelated SCA - As defined in Article II of this Agreement.

                                   ARTICLE II

                             (Retroceding Agreement)

     A.   Retroceded Loss.

     Subject to all of the terms,  conditions,  definitions,  and limitations of
this Agreement,  MIC hereby retrocedes and the  Retrocessionaire  hereby assumes
the Quota Share Retrocession  Percentage  specified in Schedule II hereto of the
risks MIC reinsures under the Policies, less any recoveries MIC

                                        4

<PAGE>

realizes  through  reinsurance  (other than that effected by this  Agreement) or
through other means with respect to the Business;  provided, however, that in no
event  will the  portion of any risk  retroceded  hereunder  exceed the  maximum
amount allowed under  applicable  state law covering the  retrocession  of risks
located in the particular state.

     B.   Retained Underwriting Losses.

     Notwithstanding  anything in Paragraph A to the contrary,  MIC shall retain
an amount of Underwriting  Loss in respect of the Business for any calendar year
as determined  under this  Paragraph B. As of the end of each calendar year, the
Retrocessionaire shall determine the amount of Underwriting Loss attributable to
each Subsidiary  Capital  Account that would be allocable to another  Subsidiary
Capital Account (an "Unrelated  SCA") under the  Retrocessionaire's  Articles of
Incorporation in the absence of this Retained Underwriting Losses provision. MIC
shall  retain  Underwriting  Loss for a  calendar  year  otherwise  ceded to the
Retrocessionaire  under  Paragraph  A to the extent that the  Underwriting  Loss
otherwise  allocable to an Unrelated SCA would cause the Combined  Ratio of such
Unrelated SCA to be more than five (5) points higher than it would have been for
the  calendar  year  in the  absence  of the  Retrocessionaire's  allocation  of
Underwriting  Loss to Unrelated SCA's under the  Retrocessionaire's  Articles of
Incorporation.

     C.   Liability of Retrocessionaire.

     Except as expressly provided to the contrary in this Agreement:

     (i) the liability of the  Retrocessionaire  under this  Agreement  shall be
coextensive with MIC's liability in respect of the Business;

     (ii) the  liability of the  Retrocessionaire  in respect of the Business is
assumed by the Retrocessionaire as of the same effective date as MIC's liability
in  respect  of the  Business,  but  not  prior  to the  effective  date of this
Agreement; and

     (iii) it is the  intention of the parties that the  Retrocessionaire  shall
follow the fortunes of MIC in all respects.

                                        5

<PAGE>

                                   ARTICLE III

                                     (Term)

     This  Agreement  shall  take  effect  as of the  later of the date on which
participating   shares  in  the   Retrocessionaire   are  first  issued  or  the
Retrocessionaire  becomes licensed to transact reinsurance business in Barbados,
and it shall remain in effect until  coverage is terminated  in accordance  with
the terms of Article XII (Termination).

                                   ARTICLE IV

                             (Premiums and Credits)

     The Retroceded Premium shall be remitted in accordance with Article V. MIC,
or its subsidiaries,  shall be liable for all premium taxes imposed by any state
or local  government  in the  United  States  on the  Retroceded  Business.  The
Retrocessionaire  shall be liable for all Excise Taxes imposed on the Retroceded
Business, and it shall be entitled to any refunds and credits of Excise Taxes in
respect of the Retroceded Business.

                                    ARTICLE V

                         (Quarterly and Annual Reports)

     MIC shall render to the Retrocessionaire, within thirty (30) days after the
close of each calendar quarter, a Quarterly Report concerning the Business.

     The Quarterly  Report shall include the  following  information.  Each item
shown in the report will  reflect  the  respective  dollar  amounts or number of
Policies for the calendar quarter covered by the report and cumulative  calendar
year-to-date figures..

Calculation of Reinsurance Balance

     A.   INCOME

          1.   Gross Written Premium

          2.   Return Premium

                                        6

<PAGE>

          3.   Retroceded Premium

               [Item A(1) less Item A(2)]

          4.   Unearned Premium Reserve

               i. Beginning of Quarter

               ii. End of Quarter

          5.   Earned Premium

               [Item A(3) plus Item A(4) (i) less Item A (4) (ii)]

     B.   EXPENSES AND LOSSES

          1.   Commission Expense

          2.   Excise Taxes

          3.   Ceding Fee

          4.   Losses Paid

          5.   Loss Reserve

               i.   Beginning of Quarter

               ii.  End of Quarter

          6.   Total Expense and Losses

               [Item B(1) plus Item B(2) plus Item B(3) plus Item B(4)]

     C.   REINSURANCE BALANCE

          [Item A(3) less Item B(6)]

For Information Only

     Number of Policies Written

     Number of Policies Flat Cancelled

     Number of Policies in Force

Calculation of Letter of Credit Requirement

     D.   LETTER OF CREDIT REQUIREMENT

          1.   100% of Unearned Premium Reserve

                                        7

<PAGE>

               [100% of Item A(4) (ii)]

          2.   100% of Loss Reserve

               [100%of Item B(5)(ii)]

          3.   Letter of Credit Requirement

               [Item D(1) plus Item D(2) less Deferred Acquisition Costs]

     Within  fifteen  (15) days  following  the  receipt of the  Annual  Report,
Retrocessionaire shall furnish to MIC a Retained Statement. This statement shall
include the following information with respect to such calendar year.

     E.   RETAINED UNDERWRITING LOSSES

          1.   Retained Underwriting Losses for the calendar year.

          2.   Cumulative Retained Underwriting Losses from prior years

     The  Retrocessionaire  shall  provide  MIC with such  supporting  documents
necessary for MIC to confirm that the Retrocessionaire  determined the amount of
Retained  Underwriting Losses in accordance with Article II, Paragraph B of this
Agreement.

                                   ARTICLE VI

                                  (Remittances)

     Any positive  Reinsurance Balance shall be remitted to the Retrocessionaire
by MIC with the  Quarterly  Report on which such balance  appears.  Any negative
Reinsurance  Balance  shall be  remitted to MIC by the  Retrocessionaire  within
fifteen  (15)  days   following   receipt  of  the   Quarterly   Report  by  the
Retrocessionaire.

     The  amount  of the  Retained  Underwriting  Losses  shown on any  Retained
Statement shall be remitted to the  Retrocessionaire  by MIC within fifteen (15)
days following receipt of the Retained Statement.

                                        8

<PAGE>

                                   ARTICLE VII

                               (Letter of Credit)

     Upon receipt of the Quarterly Report, the  Retrocessionaire  shall promptly
apply for and provide MIC with a "clean",  unconditional and irrevocable  letter
of credit,  in an amount equal to the lesser of the amount  specified in Article
V(D)(3) or the maximum letter of credit amount the  Retrocessionaire  is able to
provide MIC taking into account the  Retrocessionaire's  net assets. At the time
MIC furnishes  the  Retrocessionaire  an Annual  Report as required  pursuant to
Article  V of this  Agreement,  MIC shall  forward  to the  Retrocessionaire  an
actuarial report  certifying the  appropriateness  of the Loss Reserve set forth
pursuant   to   Article   V(B)(5)(ii)   hereto.   The   letter  of  credit   the
Retrocessionaire  provides MIC pursuant to this Article VII shall have terms and
an issuing bank acceptable to the regulatory  authority(ies) having jurisdiction
over MIC and in accordance with applicable regulatory requirements.

     The  Retrocessionaire  hereby  agrees the letter of credit will provide for
automatic  extension of the letter of credit without amendment for one year from
the date of  expiration  of said  letter or any future  expiration  date  unless
thirty (30) days prior to an  expiration  the issuing  bank shall  notify MIC by
overnight mail that the issuing bank elects not to consider the letter of credit
renewed  for any  additional  period.  The  Retrocessionaire  and MIC  agree the
letters of credit  provided by  Retrocessionaire  pursuant to the  provisions of
this  Agreement  may be  drawn  upon  at any  time,  notwithstanding  any  other
provisions  in  this  Agreement  and be  utilized  by MIC  or any  successor  by
operation  of  law  of  MIC  including  without  reservation,   any  liquidator,
rehabilitator, receiver or conservator of MIC for the following purposes:

     A. To reimburse MIC for Retrocessionaire's share of Return Premiums;

     B. To reimburse MIC for the Retrocessionaire's  share of Losses Paid by MIC
under the terms and provisions of Policies retroceded under this Agreement.

     C.  To fund  an  account  with  MIC in an  amount  at  least  equal  to the
requirement specified under Article V (D)(3) of this Agreement.

     D. To pay any other amounts due MIC under this Agreement.

                                        9

<PAGE>

     The bank shall have no  responsibility  whatsoever in  connection  with the
propriety of  withdrawals  made by MIC or the  disposition  of funds  withdrawn,
except  to assure  that  withdrawals  are made  only upon the order of  properly
authorized representatives of MIC. MIC shall incur no obligations to the bank in
acting upon the credit, other than as appears in the express terms thereof.

     The rights and  obligations of MIC and  Retrocessionaire  participating  in
this Agreement shall not be diminished in any way by the insolvency of any party
to this Agreement.

                                  ARTICLE VIII

                                    (Claims)

         MIC, or its subsidiaries or affiliates, shall investigate and settle or
defend all Claims. When requested by the Retrocessionaire,  MIC shall permit the
Retrocessionaire,  at the expense of the Retrocessionaire, to be associated with
MIC in the  defense  of any  Claim  which  results  or is  likely  to  result in
liability on the part of the Retrocessionaire.

                                   ARTICLE IX

                            (Records and Information)

     Each party hereto shall  maintain books and records that fully disclose all
matters pertaining to the retrocession  hereunder in respect of the Business and
each shall have free access at any reasonable  time to such books and records of
the other  party  wherever  located  for the  purpose of  obtaining  information
concerning the subject matter of this Agreement. Such books and records shall be
maintained  during the term of this  Agreement and  thereafter  until all claims
arising under the Business have been closed.

                                    ARTICLE X

                               (Reporting Errors)

     The  Retrocessionaire  shall not be relieved of  liability by reason of any
error or  omission  by MIC in its  reporting  of Claims  and  other  information
regarding  the Business,  provided such error or omission is rectified  promptly
after its discovery by MIC.

                                       10

<PAGE>

                                   ARTICLE XI

                           (Parties to This Agreement)

     This Agreement is solely between MIC and the Retrocessionaire.  Performance
of the  respective  obligations  of each  party  under this  Agreement  shall be
rendered  solely to the other party.  In the event of the insolvency of MIC, the
liability of the  Retrocessionaire  shall be modified to the extent set forth in
Article XIII of this Agreement. In no event shall any policyholder,  insured, or
reinsured  of MIC or of any of MIC's  reinsurers  have  any  rights  under  this
Agreement.

                                   ARTICLE XII

                                  (Termination)

     A.   Termination of Agreement.

     Either  party may  terminate  this  Agreement by notice to the other party.
Termination shall be effective on the date specified in the notice,  which shall
be the first day of a  calendar  month and which  shall not be less than  thirty
(30) days after the date on which the notice is given.  Beginning  at 12:01 a.m.
Local Standard Time at the mailing  address of MIC on the  Termination  Date, no
further risks shall be retroceded  under this  Agreement  with respect to new or
renewal Policies which become effective on or after the Termination Date.

     Within thirty (30) days after the  Termination  Date, MIC shall provide the
Retrocessionaire with a statement (the "Termination Statement") identifying each
of the items set forth in Article V.A.  through  Article V.C. of this  Agreement
for the calendar quarter, or part thereof, ending on the Termination Date. After
receiving the Termination  Statement,  the Retrocessionaire  shall determine the
Retained  Underwriting Losses in accordance with Article II, Paragraph B hereof,
provided  that, for this purpose,  the period  between  January 1 of the year of
termination and the Termination Date shall be treated as a calendar year. Within
thirty (30) days after receiving the Termination Statement, the Retrocessionaire
shall provide MIC a statement (the "Final Retained Statement") setting forth the
Retained  Underwriting Losses for the portion of the calendar year ending on the
Termination Date.

                                       11

<PAGE>

     If the amount of the Reinsurance Balance shown in the Termination Statement
minus  the  excess  of the  Termination  Premium  over  the sum of the  Deferred
Acquisition  Costs  as of the  Termination  Date and the  Retained  Underwriting
Losses  shown  in  the  Final  Retained  Statement  is a  negative  amount,  the
Retrocessionaire  shall  remit  that  amount  to MIC  with  the  Final  Retained
Statement,  and if such amount is positive, MIC shall remit that positive amount
to the  Retrocessionaire  within  fifteen  (15) days after  receiving  the Final
Retained  Statement.  The  Retrocessionaire  shall be  entitled to any refund or
credit of Excise Taxes relating to the amount of the Termination Premium.

     Termination of this  Agreement  shall relieve the  Retrocessionaire  of any
obligations  in respect of risks  retroceded to the  Retrocessionaire  hereunder
prior  to the date and  time of  termination,  and any and all such  obligations
shall be fully discharged.

     B.   Termination of Subsidiary Capital Account.

     In the event that the  Retrocessionaire  redeems or repurchases a series of
its shares in respect of which it maintains a  Subsidiary  Capital  Account,  no
further  risks with respect to new or renewal  Policies  which become  effective
after the effective date and time of such redemption or repurchase  attributable
to the Subsidiary  Capital  Account related to the redeemed shares (the "Related
SCA")  shall be  retroceded  under  this  Agreement.  MIC shall  include  in the
Quarterly  Report for the period in which such  redemption or repurchase  occurs
Business  attributable  to  the  Related  SCA  through  the  effective  date  of
redemption  or  repurchase.  Such report  shall  include for the Related SCA the
information described in Article V.A.4.ii.  and Article V.B.5.ii.  calculated as
of the effective date of redemption or repurchase.

     MIC shall recapture the Business that it has ceded to the  Retrocessionaire
through  the  effective  date of such a  redemption  or  repurchase  and that is
attributable to the Related SCA. In  consideration  of such Business  recapture,
the Retrocessionaire  shall pay MIC a premium ("Recapture Premium") equal to the
Unearned  Premium  Reserve  plus the  discounted  amount of the Loss  Reserve as
determined  under section 846 of the Internal  Revenue Code of 1986, as amended,
attributable  to the Related SCA as of the effective  date of the  redemption or
repurchase. The Retrocessionaire shall be entitled to offset the

                                       12

<PAGE>

Recapture Premium by the amount of Deferred  Acquisition  Costs  attributable to
the Related SCA as of the effective date of the  redemption or  repurchase.  The
Retrocessionaire  shall pay MIC the  Recapture  Premium  within thirty (30) days
after  the  Retrocessionaire  receives  the  Quarterly  Report  for  the  period
encompassing  the  effective  date of  redemption or repurchase of the shares to
which the  recapture  relates.  The  Retrocessionaire  shall be  entitled to any
refund or  credit  of  Excise  Taxes  relating  to the  amount of the  Recapture
Premium.  MIC's recapture of the Business  attributable to the Related SCA shall
extinguish  any and all of the  Retrocessionaire's  obligations to MIC under the
terms of this Agreement for such recaptured Business.

                                  ARTICLE XIII

                               (Insolvency of MIC)

     In the event of the insolvency of MIC, the retrocession afforded under this
Agreement  shall  be  payable  by  the  Retrocessionaire,  on the  basis  of the
liability of MIC under the contract or contracts retroceded,  without diminution
because  of  such  insolvency  or  because  MIC  or  its  liquidator,  receiver,
conservator,  or statutory successor has failed to pay all or any portion of any
claim.  Such  payment  shall  be  made  directly  to MIC  or to its  liquidator,
receiver, conservator, or statutory successor, unless the Retrocessionaire, with
the consent of the parties who are directly  insured or reinsured by MIC as part
of the Business,  has assumed the  obligations of MIC as the  Retrocessionaire's
direct  obligations to such parties,  in substitution for the obligations of MIC
to such parties. The  Retrocessionaire  shall be given notice of the pendency of
each Claim which may involve such  reinsurance  within a  reasonable  time after
such Claim is filed in the insolvency  proceedings.  The Retrocessionaire  shall
have the  right,  at its own  expense,  to  investigate  each such  Claim and to
interpose, in the proceedings where the Claim is to be adjudicated,  any defense
which it may deem available to MIC or its liquidator,  receiver, conservator, or
statutory successor.  The expense thus incurred by the Retrocessionaire shall be
chargeable,  subject to court  approval,  against MIC, as part of the expense of
conservation or liquidation,  but only to the extent of the benefit  realized by
MIC as a result of the defense undertaken by the Retrocessionaire.

                                       13

<PAGE>

                                   ARTICLE XIV

                      (Insolvency of the Retrocessionaire)

     In the event of the insolvency, bankruptcy,  receivership,  rehabilitation,
or liquidation of the Retrocessionaire, MIC may retain all or any portion of any
amount  then due or which may  become  due to the  Retrocessionaire  under  this
Agreement,  and may use such amounts for the purpose of discharging  any and all
liabilities  of  the  Retrocessionaire  under  this  Agreement.  When  all  such
liabilities have been discharged,  MIC shall pay to the  Retrocessionaire or its
liquidator,  receiver,  or statutory  successor  any  remaining  balance of such
amounts.

                                   ARTICLE XV

                                  (Arbitration)

     It is the  intention of MIC and the  Retrocessionaire  that the customs and
practices of the insurance  industry shall be given full effect in the operation
and  interpretation  of this  Agreement.  The parties agree to act in all things
with the highest  good faith.  If MIC or the  Retrocessionaire  cannot  mutually
resolve any dispute  that  arises out of or relates to this  Agreement,  whether
such dispute arises before or after  termination of this Agreement,  the dispute
shall be decided through arbitration.

     This  Agreement  and the  performance  of the  parties  hereunder  shall be
interpreted,  construed and enforced in accordance with the laws of the state of
Michigan.  The  arbitrators  shall  consider  this  Agreement  as  an  honorable
engagement  rather  than as a mere legal  obligation  and they shall reach their
decision  from the  standpoint  of equity and the customs and  practices  of the
insurance   industry  rather  than  solely  from  the  standpoint  of  a  strict
interpretation of the applicable substantive and procedural law.

     To initiate  arbitration,  either MIC or the Retrocessionaire  shall notify
the other party in writing of its desire to arbitrate, stating the nature of its
dispute  and the  remedy  sought.  The party to which the  notice is sent  shall
respond to the  notification  in writing within ten (10) days of it receipt.  At
that time,  the party also shall  assert any dispute it may have that arises out
of or relates to this Agreement.

                                       14

<PAGE>

     The arbitration hearing shall be before a panel of three arbitrators,  each
of whom must be a present or former  officer of a property,  casualty  insurance
company  authorized  to do business in the United  States other than MIC and the
Retrocessionaire or either's affiliates. MIC and the Retrocessionaire shall each
appoint  one  arbitrator  by  written  notification  to the other  party  within
twenty-five (25) days of the date of the mailing of the notification  initiating
the  arbitration.  These two arbitrators  shall then select the third arbitrator
within  fourteen  (14) days  after  their  selection.  Should  either MIC or the
Retrocessionaire fail to appoint an arbitrator, or should the two arbitrators be
unable to agree upon the choice of a third arbitrator, such appointment shall be
left to the President, for the time being, of the Barbados Bar Association. Once
selected, the arbitrators are empowered to decide all substantive and procedural
issues involved by a majority of votes.

     The  arbitration  hearing  shall be held on the date and the place fixed by
the arbitrators and agreed to by MIC and the Retrocessionaire. In no event shall
this  date be later  than six (6)  months  after  the  appointment  of the third
arbitrator.   The  arbitrators  shall  establish  prearbitration  procedures  as
warranted by the facts and issues of the  particular  case.  Within  twenty (20)
days after the end of the arbitration  hearing,  the  arbitrators  shall issue a
written  award,  from which there shall be no appeal and which any court  having
jurisdiction of the subject matter and the parties may reduce to judgment.

     In their award,  the arbitrators  shall apportion the costs of arbitration,
including,  but not be limited  to,  their own fees and  expenses,  as they deem
appropriate.

                                   ARTICLE XVI

                                    (Notice)

     Any notice,  report,  statement,  or other  communication  provided  for or
referred to in this Agreement  shall be in writing in English and shall be given
by personal delivery or sent by overnight mail,  addressed to the party for whom
it is intended  as  follows,  or to such other  address as may be  specified  in
writing by such party:

                                       15

<PAGE>

         To MIC:                           Vice President and Treasurer
                                           MOTORS INSURANCE CORPORATION
                                           3044 West Grand Boulevard
                                           MC 482-304-432
                                           Detroit, Michigan  48202

         To the Retrocessionaire:          President
                                           Integon Re (Barbados), Limited
                                           Aon Insurance Managers
                                           One Financial Place
                                           Collymore Rock
                                           St. Michael, Barbados

Notice by mail shall be deemed given when mailed.

                                  ARTICLE XVII
                                 (Choice of Law)

     This  Agreement  shall be  governed by the laws of the State of Michigan in
all respects, including matters of construction, validity, and performance.

                                  ARTICLE XVIII

                         (Integration and Modification)

     This  Agreement,  together  with  any  other  written  agreements  executed
contemporaneously  with this Agreement,  constitutes the entire contract between
the  parties  relating to the subject  matter of the  Agreement.  It cancels and
supersedes all prior agreements between the parties on the same subject.  It may
be altered only by the mutual written consent of the parties.

                                   ARTICLE XIX

                                   (Currency)

     Any and all payments to be made  hereunder by either party shall be made in
the currency of the United States.

                                       16

<PAGE>

     IN WITNESS  WHEREOF the parties have caused this  instrument to be executed
by their duly authorized  officers,  in a number of counterparts,  each of which
may be taken as an original on the 31st day of March, 2000.

                                               MOTORS INSURANCE CORPORATION

                                      By:   Thomas D.  Callahan
                                            ----------------------------------
                                            Officer Name

                                            s/Thomas D.  Callahan
                                            ----------------------------------
                                            Signature

                                            Senior Vice President
                                            ----------------------------------
                                            Title

                                            INTEGON RE (BARBADOS), LIMITED

                                      By:   Ronald W. Jones
                                            ----------------------------------
                                            Officer or Director Name

                                            s/Ronald W.  Jones
                                            ----------------------------------
                                            Signature

                                            Vice President, Finance
                                            ----------------------------------
                                            Title

                                       17

<PAGE>

                                   Schedule I

                                  THE POLICIES

     The Policies  encompasses the risks arising under an insurance  policy that
covers  liability and physical damage exposures and that is reinsured by MIC but
only to the extent that those risks relate to a policy that is issued or renewed
at a time  when  there  is a series  of the  Retrocessionaire's  shares  issued,
outstanding,  and in good standing in respect of the Integon  Agency  Account to
which the policy is attributable.  For these purposes, a series of shares of the
Retrocessionaire  will be considered "issued and outstanding" as of the later of
(i) the first day of the month following the date on which the  Retrocessionaire
has received and accepted one or more executed stock purchase agreements for all
shares of the  particular  series,  provided  that such  shares  are  ultimately
issued, or (ii) the first day of the month following the date on which Agreement
takes  effect.  A series of shares of the  Retrocessionaire  that is issued  and
outstanding  will be considered in "good standing" unless and until the Board of
Directors of the Retrocessionaire  determines to terminate further retrocessions
in respect of the particular series.

                                       18

<PAGE>

                                   Schedule II

                                  THE BUSINESS

     The Business shall  encompass the quota share portion  specified below (the
"Quota Share Retrocession Percentage") of the Policies attributed to the Integon
Agency  Accounts  identified  below.  This  Schedule II shall relate to Policies
issued or renewed on or after the Effective Date hereof and before the Effective
Date of any schedule that  replaces  this schedule in accordance  with the terms
hereof. The Effective Date of this Schedule II shall coincide with the Effective
Date of this Agreement.

     This  Schedule  II  may  be  replaced  by  the  Retrocessionaire  as of the
beginning of any calendar  month  through  execution of a new Schedule II in the
form attached  hereto (a "Replacement  Schedule II"). A Replacement  Schedule II
shall be effective as of the beginning of the calendar month specified  therein,
provided that MIC receives an executed  counterpart of the Replacement  Schedule
II  within  fifteen  days  after  the  calendar  month in which it is to  become
effective;  otherwise,  the Effective Date of a Replacement Schedule II shall be
deferred  until the  beginning  of the  calendar  month  after MIC  receives  an
executed   counterpart  of  the   Replacement   Schedule  II.  The  Quota  Share
Retrocession  Percentage  with respect to any Integon  Agency Account may not be
changed any more often than once in any calendar  year,  and, once set, may only
be changed as of the beginning of a calendar year.

     The Quota Share Retrocession  Percentage with respect to any Integon Agency
Account shall be either 20%,  30%, 40%, or 50%. If the Quota Share  Retrocession
Percentage listed in this Schedule II or in any Replacement  Schedule II for any
Integon  Agency  Account  is less  than  20%,  it shall be  deemed to be 20% for
purposes of this Agreement. If the Quota Share Retrocession Percentage listed in
this  Schedule  II or in any  Replacement  Schedule  II for any  Integon  Agency
Account  is more than 50%,  it shall be  deemed to be 50% for  purposes  of this
Agreement.

     The Quota Share Retrocession Percentages shall be as follows.

Integon Agency Account                      Quota Share Retrocession Percentage
----------------------                      -----------------------------------

Number            Name
------            ----

                                       19

<PAGE>

                             Replacement Schedule II

                                  THE BUSINESS

Effective Date ________________________________

     The Quota Share Retrocession Percentages beginning as of the Effective Date
hereof shall be as follows.

Integon Agency Account                      Quota Share Retrocession Percentage
----------------------                      -----------------------------------

Number            Name
------            ----

By:
      ---------------------------
      Officer Name

      ---------------------------
      Signature

      ---------------------------
      Title

      ---------------------------
      Date

                                       20STOCK PURCHASE AGREEMENT
                                     Between
                               INTEGON CORPORATION
                                       and
                         INTEGON RE (BARBADOS), LIMITED

     THIS STOCK PURCHASE AGREEMENT (the "Agreement") is made and entered into as
of this 16th day of March,  2000 by and between  INTEGON RE (BARBADOS),  LIMITED
(hereinafter  referred to as the  "Company"),  a Barbados  corporation  with its
principal place of business in St. Micheal,  Barbados,  and INTEGON  CORPORATION
(hereinafter  referred to as the "Purchaser"),  a Delaware  corporation with its
administrative offices in Winston-Salem, North Carolina.

     WHEREAS,  the Company  desires to sell and issue to the Purchaser,  and the
Purchaser  desires to purchase from the Company,  1,000,000 shares of the common
stock of the Company.

     NOW,  THEREFORE,  in  consideration  of the  purchase  price and the mutual
covenants and promises  stated  herein,  the Company and the Purchaser  agree as
follows:

1.   PURCHASE AND SALE OF SHARES

     The  Company  hereby  agrees  to sell and issue to the  Purchaser,  and the
Purchaser  agrees  to  purchase,  1,000,000  shares of the  common  stock of the
Company,  without  nominal  or par value  per share  (the  "Common  Stock"),  in
consideration of which the Purchaser shall pay to the Company  $1,000,000 (U.S.)
(the  "Purchase  Price").  The Purchase  Price shall be payable on or before the
date specified for this purpose by the Company's directors.

2.   EXPENSE REIMBURSEMENT

     The Purchaser  agrees that it shall bear,  without  reimbursement  from the
Company, the following expenses:

     a. all reasonable expenses and liabilities attributable to the organization
and incorporation of the Company;

     b.  all  expenses   attributable   to  the  initial   registration  of  the
participating  shares of the  Company  with the  United  States  Securities  and
Exchange   Commission,   and  initial  compliance  with  United  States  federal
securities  laws and the securities and insurance laws of the various states and
other jurisdictions of the United States; and

     c. all  operational  expenses  and  liabilities  attributable  to  ordinary
day-to-day Company operations, excluding any United States Federal income taxes,
incurred during the period commencing on the date that any participating  shares
of the Company are first issued (the "Issue Date") and ending on the last day of
the Company's fiscal quarter that immediately precedes the

<PAGE>

twelve month  anniversary  of the Issue Date. In the event that the Company pays
any such expenses directly, the Purchaser shall reimburse the Company on demand.

3.   RESTRICTIVE LEGEND

     The  Purchaser  represents  that it is  purchasing  the  Common  Stock  for
investment  and not with a view to  distribution.  It is agreed that the Company
may place on the certificate for the Common Stock a legend stating in substance:

         The  shares  evidenced  by this  certificate  have  been  acquired  for
         investment  and have not been  registered  under the  Securities Act of
         1933. The shares may not be sold,  transferred or otherwise disposed of
         in  the  absence  of  such   registration  or  an  opinion  of  counsel
         satisfactory  to Integon Re (Barbados),  Limited (the  "Company")  that
         such registration is not required.

4.   RELATIONSHIP TO ARTICLES AND BY-LAWS

     The Purchaser  agrees to be bound by and shall be subject to all provisions
in the Articles of Incorporation and By-Laws of the Company  (collectively,  the
"Articles and By-Laws")  that are in effect as of the date of this Agreement and
any  amendments  to  such  provisions  that  may be  added  in the  future.  The
provisions of the Articles and By-Laws are  incorporated  herein by reference to
the extent relevant to this Agreement.

6.   ENTIRE AGREEMENT

     This  Agreement  represents  the entire  agreement  between the parties and
supersedes any prior  agreement  between the parties with respect to the matters
covered herein.  Any amendment or  modification  hereof shall be made in writing
signed by authorized representatives of both parties.

                      [THE NEXT PAGE IS THE SIGNATURE PAGE]

<PAGE>

     IN WITNESS  WHEREOF,  the parties hereunto have caused this Agreement to be
executed  by their duly  authorized  representatives  as of the date first above
written.

                                            INTEGON RE (BARBADOS), LIMITED

                                            By  /s/ Ronald W. Jones
                                               ______________________________
                                                  Name: Ronald W. Jones
                                                  Title: Vice-President, Finance

                                            INTEGON CORPORATION

                                            By: /s/ Pamela H. Gowwin
                                               ______________________________
                                                  Name: Pamela H. Godwin
                                                  Title: President and Chief
                                                         Operating Officer

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00015-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00015-of-00352.parquet"}]]