Document:

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                                                                   EXHIBIT 10.53

                         SYKES ENTERPRISES, INCORPORATED
                             STOCK OPTION AGREEMENT
                         FOR 2001 EQUITY INCENTIVE PLAN

                        (PERFORMANCE-ACCELERATED OPTION)

            This Stock Option Agreement ("Option Agreement") is entered into as
of the 6th day of March 2002 by and between Sykes Enterprises, Incorporated, a
Florida corporation (the "Corporation"), and HARRY A. JACKSON JR., an employee
of the Corporation or one of its subsidiaries (the "Optionee").

            WHEREAS, the board of directors of the Corporation (the "Board") has
duly adopted the 2001 Equity Incentive Plan (the "Plan"), which authorizes the
Corporation to grant to eligible individuals options for the purchase of shares
of voting common stock, par value $.01 per share, of the Corporation (the
"Stock"); and

            WHEREAS, the Corporation has determined that it is desirable and in
its best interests to grant to the Optionee, pursuant to the Plan, an option to
purchase a certain number of shares of Stock in order to provide the Optionee
with an incentive to advance the interests of the Corporation and its
subsidiaries, all according to the terms and conditions set forth herein.

            NOW, THEREFORE, in consideration of the mutual promises and
covenants contained herein, the parties hereto, intending to be legally bound
hereby, agree as follows:

            1. GRANT OF OPTION. Subject to the terms of the Plan (attached
hereto as Exhibit A, the terms of which are incorporated herein by this
reference), the Corporation hereby grants to the Optionee the right and option
(the "Option") to purchase from the Corporation, on the terms and subject to the
conditions set forth herein and in the Plan, 100,000 shares of Stock. The Option
shall constitute an incentive stock option within the meaning of Section 422 of
the Internal Revenue Code of 1986, as amended (the "Code"), to the fullest
extent permissible thereunder, taking into account such Option and any other
incentive stock options issued to the Optionee under the Plan and all other
plans of the Optionee's employer corporation and its parent and subsidiary
corporations within the meaning of Section 422(d) of the Code, in the order in
which the Option issued hereunder and any such other incentive stock options
were granted. Any portion of the Option issued hereunder which is not treated as
an incentive stock option shall be treated as a nonqualified stock option. The
date of grant of the Option is MARCH 6, 2002 (the "Grant Date"), the date on
which the grant of the Option was approved in accordance with the terms and
conditions of the Plan.

            2. PRICE. The purchase price (the "Option Price") for the shares of
Stock subject to the Option granted by this Option Agreement is $8.32 per share.

            3. EXERCISE OF OPTION. Except as otherwise provided herein and in
the Plan, the Option granted pursuant to this Option Agreement shall be subject
to exercise as follows:

            3(a). TIME OF EXERCISE OF OPTION. Subject to the limitation on
exercise set forth in Section 3(d) hereof, the Option shall vest and first
become exercisable by the Optionee on the fourth (4th) anniversary of the Grant
Date, provided that Optionee is then still employed on a full-time basis by the
Corporation or a Subsidiary. Notwithstanding the foregoing, the date upon which
the Option, or part thereof, will vest and first become exercisable will be
accelerated to the date or dates (each an "Accelerated Vesting Date") upon which
the performance objectives set forth on Exhibit B hereto (the "Performance
Objectives") are attained, but only if Optionee was employed with the
Corporation or a Subsidiary on a continuous, uninterrupted, and full-time basis
from the Grant Date up through and including the Accelerated Vesting Date. The
determination of whether the Optionee and/or Corporation have attained all of
the Performance Objectives, and the date on which the Accelerated Vesting Date
(if any) will occur, shall be made by the Administrator in its sole and absolute
discretion, and the Administrator's determination will be final and conclusive
and binding on the Optionee.

            3(b).RETIREMENT, DEATH OR DISABILITY. If an Optionee: (i) dies while
employed by the Corporation or a Subsidiary or within the period when an Option
could have otherwise been exercised by the Optionee; (ii) terminates employment
with the Corporation or a Subsidiary by reason of the "permanent and total
disability" (within the meaning of
<PAGE>
Section 22(e)(3) of the Code) of such Optionee; or (iii) terminates employment
with the Corporation or a Subsidiary as a result of such Optionee's retirement,
provided that the Corporation or such Subsidiary has consented in writing to
such Optionee's retirement, then, in each such case, the unvested portion of the
Option shall immediately terminate and such Optionee, or the duly authorized
representatives of such Optionee, shall have the right, at any time within three
(3) months after the death, disability or retirement of the Optionee, as the
case may be, and prior to the termination of the Option pursuant to Section 3(d)
below, to exercise any Option to the extent such Option was exercisable by the
Optionee immediately prior to such Optionee's death, disability or retirement.
In the discretion of the Administrator of the Plan, the three-month period
referenced in the immediately preceding sentence may be extended for a period of
up to one year. For the purposes of this Option Agreement, the terms
"Subsidiary" and "Administrator" shall have the respective meanings set forth in
the Plan.

            3(c). TERMINATION OF EMPLOYMENT. During the life of an Optionee, an
Option shall be exercisable only by such Optionee and only within ninety (90)
days after the termination of the optionee's employment with the Corporation or
a Subsidiary, other than by reason of the Optionee's death, permanent disability
or retirement with the consent of the Corporation or a Subsidiary as provided in
Section 3(b) above, but only if and to the extent the Option was exercisable
immediately prior to such termination, and subject to the provisions of Section
3(d) below. Notwithstanding the foregoing, if the Optionee's employment is
terminated for cause, or the Optionee terminates his own employment with the
Corporation, all Options theretofore granted and not yet exercised (whether or
not vested) shall terminate immediately on the date of termination of
employment. "Cause" shall have the meaning set forth in any employment agreement
then in effect between the Optionee and the Corporation or any of its
Subsidiaries, or if the Optionee does not have any employment agreement, "cause"
shall mean (i) if the Optionee engages in conduct which has caused, or is
reasonably likely to cause, demonstrable and serious injury to the Corporation,
(ii) the material negligence of, or failure to perform, the Optionee's duties to
the Corporation or (iii) if the Optionee is convicted of a felony or a
misdemeanor which substantially impairs the Optionee's ability to perform his or
her duties to the Corporation.

            3(d). LIMITATIONS ON EXERCISE OF OPTION. If the Optionee owned
capital stock of the Corporation possessing more than 10% of the total combined
voting power or value of all classes of capital stock of the Corporation as of
the Grant Date (a "10% Shareholder"), then in no event may the Option be
exercised, in whole or in part, after five (5) years following the Grant Date.
If the Optionee is not a 10% Shareholder, then in no event may the Option be
exercised, in whole or in part, after ten (10) years following the Grant Date.
In no event may the Option be exercised for a fractional share.

            3(e). ASSIGNMENT OF OPTION. Options shall not be assignable or
transferable by the Optionee other than by will or by the laws of descent and
distribution. Except as provided herein, no Option, and no right under any such
Option, may be pledged, alienated, attached, or otherwise encumbered, and any
purported pledge, alienation, attachment, or encumbrance thereof shall be void
and unenforceable against the Corporation.

            4. METHOD OF EXERCISE OF OPTION. Any payment for shares of Stock
purchased upon exercise of an Option granted hereunder shall be made in cash.
Notwithstanding the foregoing, if permitted by the Administrator, the payment
may be made by delivery of shares of Stock beneficially owned by the Optionee,
or attestation by the Optionee to the ownership of a sufficient number of shares
of Stock, or by a combination of cash and Stock, at the election of the Optionee
with the consent of the Administrator; provided, however, that any shares of
Stock so delivered or attested shall have been beneficially owned by the
Optionee for a period of not less than six (6) months prior to the date of
exercise. Any such shares of Stock so delivered or attested shall be valued at
their Fair Market Value (as defined in the Plan) on the date of such exercise.
The Administrator shall determine whether and if so the extent to which actual
delivery of share certificates to the Corporation shall be required. The
Administrator also may authorize payment in accordance with a cashless exercise
program under which, if so instructed by the Optionee, Stock may be issued
directly to the Optionee's broker upon receipt of the Option purchase price in
cash directly to the broker.

            5. EFFECT OF CHANGES IN CAPITALIZATION. Section 10 of the Plan shall
apply to the Option.

            6. WITHHOLDING OF TAXES. The parties hereto recognize that the
Corporation or any subsidiary thereof may be obligated to withhold federal and
local income taxes and Social Security taxes to the extent that the Optionee
realizes ordinary income in connection with the exercise of the Option or in
connection with certain dispositions of any shares of Stock acquired by exercise
of the Option. The Optionee agrees that the Corporation or any subsidiary
thereof may withhold amounts needed to cover such taxes from payments otherwise
due and owing to the Optionee, and also agrees that upon demand the Optionee
will promptly pay to the Corporation or any subsidiary thereof having such
obligation any additional amounts as may

                                      -2-
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be necessary to satisfy such withholding tax obligation. Such payment shall be
made in cash or by certified check payable to the order of the Corporation or a
subsidiary thereof. With the prior approval of the Corporation, however, which
may be withheld by the Corporation in its sole discretion, the Optionee may
elect to satisfy such obligations, in whole or in part, (a) by causing the
Corporation to withhold shares of Stock otherwise issuable pursuant to the
exercise of the Option or (b) by delivering to the Corporation shares of Stock
already owned by the Optionee. The shares so delivered or withheld shall have a
fair market value equal to such withholding obligations. The fair market value
of the shares used to satisfy such withholding obligation shall be determined by
the Corporation in accordance with the Plan as of the date that the amount of
tax to be withheld is to be determined.

            7. DELIVERY OF SHARES. Shares of Stock purchased by the Optionee
upon the partial or complete exercise of the Option shall be delivered to the
Optionee upon notice of issuance given by the Corporation to its transfer agent.

            8. INTERPRETATION OF THIS OPTION AGREEMENT. In the event that there
is any inconsistency between the provisions of this Option Agreement and of the
Plan, the provisions of the Plan shall govern.

            9. GOVERNING LAW. This Option Agreement is executed pursuant to and
shall be governed by the internal laws of the State of Florida without reference
to the conflict of law principles thereof.

            10. NOTICE. Any notice hereunder by the Optionee to the Corporation
shall be in writing and shall be deemed duly given: (i) when mailed or delivered
to the Corporation at its principal office, addressed to the attention of the
Board, or if so mailed or delivered to such other address as the Corporation may
hereafter designate by notice to the Optionee; or (ii) when sent by facsimile,
telecopy, telex or other form of written electronic transmission, upon
confirmation of receipt thereof by the Corporation. Any notice or delivery
hereunder by the Corporation or its transfer agent to the Optionee shall be in
writing and shall be deemed duly given: (i) when mailed or delivered to the
Optionee at the address specified below by the Optionee for such purpose, or if
so mailed or delivered to such other address as the Optionee may hereafter
designate by written notice given to the Corporation; or (ii) when sent by
facsimile, telecopy, telex or other form of written electronic transmission,
upon confirmation of receipt thereof by the Optionee.

            11. ENTIRE AGREEMENT. This Option Agreement (including Exhibit A and
Exhibit B hereto) constitutes the entire agreement and supersedes all prior
understandings and agreements, written or oral, of the parties hereto with
respect to the subject matter hereof. Neither this Option Agreement nor any term
hereof may be amended, waived, discharged or terminated except by a written
instrument signed by the Corporation and the Optionee; provided, however, that
the Corporation unilaterally may waive any provision hereof in writing to the
extent that such waiver does not adversely affect the interests of the Optionee
hereunder or otherwise cause the Option granted hereunder not to qualify as an
"incentive stock option" within the meaning of Section 422 of the Code (if
applicable), but no such waiver shall operate as or be construed to be a
subsequent waiver of the same provision or a waiver of any other provision
hereof.

            12. SUCCESSORS AND ASSIGNS. This Option Agreement shall be binding
upon, inure to the benefit of, and be enforceable by, the respective successors,
personal representatives and permitted assigns of the parties hereto.

            13. COUNTERPARTS. This Option Agreement may be executed in one or
more counterparts, each of which shall constitute an original, but all of which
together shall be one and the same instrument.

            14. FACSIMILE SIGNATURE. This Option Agreement may be executed by
either of the parties (the "Originating Party") and transmitted to the other
party (the "Receiving Party") by facsimile, telecopy, telex or other form of
written electronic transmission, and, upon confirmation of receipt thereof by
the Receiving Party, this Option Agreement shall be deemed to have been duly
executed by the Originating Party. Upon the request of the Receiving Party, the
Originating Party shall provide the Receiving Party with an executed duplicate
original of this Option Agreement.

            15. TAX CONSEQUENCES. The Optionee should consult his or her tax
advisor regarding the tax consequences relating to the Option, including the
exercise of the Option and the sale of the stock purchased upon such exercise,
and the Corporation makes no representations regarding such tax consequences nor
the ability for the Option or any part thereof to constitute an incentive stock
option within the meaning of Section 422 of the Code.

                  [remainder of page intentionally left blank]

                                      -3-
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            IN WITNESS WHEREOF, the parties hereto have duly executed this Stock
Option Agreement, or caused this Stock Option Agreement to be duly executed on
their behalf, as of the day and year first above written.

                                    SYKES ENTERPRISES, INCORPORATED

                                    By:  /s/ Jenna R. Nelson
                                        ----------------------------------------

                                    Name:  Jenna R. Nelson
                                          --------------------------------------

                                    Title:  Sr. VP, Human Resources
                                            ------------------------------------

                                    OPTIONEE:

                                      / s /     Harry A. Jackson, Jr.
                                    --------------------------------------------
                                                Harry A. Jackson Jr.

                                    ADDRESS FOR NOTICE TO OPTIONEE:

                                       -4-
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                                    EXHIBIT B

                 PERFORMANCE OBJECTIVES FOR ACCELERATED VESTING

<TABLE>
<CAPTION>
                                                                         NUMBER OF SHARES
PERFORMANCE OBJECTIVE                                              SUBJECT TO ACCELERATED VESTING
---------------------                                              ------------------------------
<S>                                                                <C>
Execution by both parties of the Amended and Restated                         15,000
Employment Agreement between the Corporation and
Harry A. Jackson Jr.

Corporation meets or exceeds expectations at street level,                    25,000
as such expectations may be adjusted from time to time,
for earnings per share in Fiscal Year 2002.

The successful completion by Harry A. Jackson Jr.                             60,000
of the EMEA assignment through August 30, 2003.

-------------------------------------------------------------------------------------------------

TOTAL                                                                        100,000
</TABLE><PAGE>
                                                                    EXHIBIT 10.1
                  INSURANCE ADMINISTRATION SERVICES AGREEMENT

         THIS INSURANCE ADMINISTRATION SERVICES AGREEMENT ("Agreement") is
effective as of the 1st day of March, 2002 ("Effective Date"), by and between
INSURANCE MANAGEMENT SOLUTIONS, INC. ("IMS"), a corporation organized and
existing under the laws of the State of Florida with its principal place of
business located at 360 Central Avenue, St. Petersburg, Florida 33701, and
ISLAND INSURANCE COMPANIES, LTD. (herein referred to as "Customer") having
their principal place of business at 1022 Bethel Street, Honolulu, HI
96806-1520.

         WHEREAS, Customer wishes to engage the services of IMS to administer
certain of the Customer's obligations for the lines of business ("Authorized
Lines of Business") in the state(s) ("Authorized States") set forth in SCHEDULE
A;

         WHEREAS, IMS wishes to provide such insurance administration services
as set forth herein.

         NOW THEREFORE, IN CONSIDERATION OF the mutual covenants and agreements
hereinafter set forth, the parties hereto do covenant and agree as follows:

ARTICLE I.        DEFINITIONS

Unless the context clearly requires otherwise, the following terms when used in
this Agreement shall have the meanings set forth below:

A.       "Affiliate" is any company which controls, is controlled by, or under
         common control with, a party, and "control" is defined as owning 50%
         or more of such entity.

B.       "Authorized Lines of Business" means the lines of business expressly
         set forth in SCHEDULE A of this Agreement.

C.       "Authorized States" means the states expressly set forth in SCHEDULE A
         of this Agreement.

D.       "Business Day" means any day other than a Saturday, Sunday or other
         day which is a bank holiday for Florida State banks or an IMS paid
         holiday (New Year's Day, Memorial Day, Independence Day, Thanksgiving
         Day, day after Thanksgiving, Christmas Eve (after 12 P.M. Eastern
         Standard Time) and Christmas Day).

E.       "Change of Control" means (a) a sale, transfer or pledge, or the
         issuance of fifty (50%) percent or more of the voting stock of a party
         hereto to any third party that is not an Affiliate of such party; or
         (b) a sale, transfer or pledge of a substantial portion of the
         material assets of a party, or any merger or consolidation of a party
         with another entity or entities.

F.       "Insurance Administration Services" means the services set forth in
         this Agreement and EXHIBIT I hereto in the Authorized States in
         accordance with the terms of the Agreement, and all applicable laws
         and regulations.

G.       "Insurance Program" means the Customer's insurance products within the
         Authorized Line(s) of Business to be offered within the Authorized
         States.

H.       "Technical Information" means and shall include (without limitation)
         computer programs, databases, designs, algorithms, processes,
         structures, data formats, business methods, know how, and research and
         development information.

                                       1
<PAGE>

ARTICLE II.       TERM

The term of the Agreement shall commence on the Effective Date and shall have a
minimum operating term ("Minimum Operating Term") of Thirty-six (36) full
calendar months following the Effective Date. However, the term of this
Agreement shall automatically extend for an additional operating term
("Extended Operating Term") of twelve (12) calendar months at the end of the
Minimum Operating Term, or at the end of any Extended Operating Term, unless
terminated earlier pursuant to the termination provisions within Article VIII.

ARTICLE III.      RESPONSIBILITIES OF IMS

A.       IMS shall dedicate the human, equipment and computer resources
         commercially reasonably required to provide Customer with the
         Insurance Administration Services, during the term of this Agreement,
         for the Insurance Program within Authorized States specified in
         SCHEDULE A.

B.       IMS shall designate an employee ("Account Manager") of sufficient
         status and authority to act as liaison with Customer to facilitate
         IMS' performance of the Insurance Administration Services under this
         Agreement. The Account Manager shall provide written and/or oral
         communication of the status of administration of the Insurance
         Administration Services as agreed to by and between Account Manager
         and Customer.

C.       IMS shall, based on accepted industry standards and in accordance with
         generally accepted insurance and accounting practices as designated by
         the applicable regulatory bodies and the National Flood Insurance
         Program ("NFIP"), maintain complete and orderly records and policy
         and/or claims files as may be required as a result of IMS performing
         the Insurance Administration Services on behalf of Customer. These
         files shall be retained by IMS, in a format or media defined by IMS
         which shall be in compliance with applicable laws and regulations, for
         a minimum of four (4) years or the period specified by the applicable
         statutes regulating the preservation of records. Customer may request
         that its records be returned to it at its expense at the expiration of
         the minimum four (4) year period; provided, however, IMS shall be
         entitled to retain copies thereof.

ARTICLE IV.       RESPONSIBILITIES OF CUSTOMER

A.       During the term of this Agreement, Customer shall provide to IMS, in a
         timely manner, any and all data, information and other items
         reasonably required to enable IMS to perform the Insurance
         Administration Services specified in EXHIBIT I of this Agreement.
         Customer represents and warrants to IMS that it owns and possesses all
         property rights to its corporate and subsidiary logos and hereby
         grants and warrants to IMS a limited, non-transferable,
         non-assignable, license to use Customer's corporate and subsidiary
         logos (and any other copyrighted or trademarked property of Customer
         that may be provided to IMS under this Agreement) while performing the
         Insurance Administration Services. Customer acknowledges and agrees
         that delays in delivery of required documentation, data and/or
         information by Customer will result in a similar delay in fulfilling
         Insurance Administration Services, and that such a delay in performing
         the Insurance Administration Services shall not be deemed a breach of
         the Agreement.

B.       CUSTOMER ACKNOWLEDGES AND AGREES THAT IMS ASSUMES NO INSURANCE RISK
         FOR THE BUSINESS PROCESSED UNDER THIS AGREEMENT.

C.       Customer shall designate manager level employee(s) of sufficient
         status and binding decision making authority to act as liaisons with
         IMS and to facilitate Customer's role as IMS performs the Insurance
         Administration Services specified in EXHIBIT I of this Agreement.

                                       2
<PAGE>

ARTICLE V.        CUSTOMER ACCESS TO RECORDS / CONFIDENTIAL INFORMATION

A.       At Customer's expense, Customer will be permitted reasonable access
         (as set forth herein) to all records and information maintained by IMS
         on behalf of Customer (excluding, specifically, proprietary Technical
         Information) reasonably necessary to: (i) audit the completeness and
         accuracy of the Insurance Administration Services provided under this
         Agreement and reports produced for Customer pursuant to this
         Agreement; (ii) verify the accuracy and validity of all billings and
         charges to Customer under this Agreement; and (iii) verify IMS'
         overall compliance with the material terms of this Agreement and
         applicable laws and regulations.

         Access to IMS' records, for the foregoing purposes, will be provided
         during normal business hours upon ten (10) Business Days prior written
         notice to IMS by Customer for so long as IMS is required to maintain
         such records under this Agreement; except in the case of regulatory
         inquiry, in which case access will be granted on any Business Day with
         twenty four (24) hours of prior written notice to IMS.

         At Customer's expense, Customer will be permitted to copy those IMS
         records subject to audit in accordance with this Article. Upon
         reasonable written request by Customer, and at Customer's expense, IMS
         will promptly mail or fax to Customer supporting documentation
         concerning any specific transaction processed by IMS under the terms
         of this Agreement.

         IMS will provide reasonably adequate workspace for Customer to conduct
         audits in accordance with this Article. Further, Customer or its
         representatives shall take precautions, when conducting audits under
         this Article, not to disrupt IMS' ongoing business activities.

B.       The recipient ("Recipient") of confidential data and/or information
         pursuant to this Agreement shall maintain the confidentiality of all
         data and/or information which is the property of the other party
         ("Disclosing Party"), whether originally supplied by the Disclosing
         Party, or whether generated by the Disclosing Party in the course of
         performing or facilitating the Insurance Administration Services under
         this Agreement and which is directly accessible to the Recipient or is
         in the possession of Recipient in the implementation, facilitation
         and/or performance of the Insurance Administration Services. During
         any term of this Agreement, Recipient may acquire, know, or have
         within its possession, information (including, but not limited to,
         Technical Information) and/or data of the Disclosing Party concerning
         commercial and trade affairs, rating and underwriting rules and
         guidelines, the identity of clients, the identity of insureds and
         beneficiaries, claims, benefits, rates and Agents, financial
         information, the Proprietary System (as defined at Article VII (A)
         herein), the Third Party Proprietary System (as defined in Article VII
         (B) herein) and business practices of the Disclosing Party
         ("Confidential Information"). Confidential Information which is
         provided in tangible form must be clearly marked "Confidential",
         "Proprietary" or the substantial equivalent thereof, or if orally
         disclosed must be clearly identified as "Confidential" or
         "Proprietary" at the time of the disclosure (except for IMS' Technical
         Information, the identity of Customer's clients, the identity of
         Customer's insureds and beneficiaries, claims, benefits, and Agents,
         which will be deemed "Confidential Information" under this Agreement,
         regardless of whether marked as such). Except as required by law,
         Recipient shall keep Disclosing Party's Confidential Information
         confidential and shall only use the Confidential Information in
         performing or facilitating the Insurance Administration Services under
         this Agreement. Recipient shall not disclose the Confidential
         Information without Disclosing Party's prior written permission except
         to Recipient's employees who require the information to perform or
         facilitate the Insurance Administration Services under this Agreement.
         Each party hereto, as a Recipient, warrants to the other that
         appropriate measures shall be taken by Recipient to safeguard the
         confidentiality of the Confidential Information, with a level of care
         at least equal to the level of care with which Recipient safeguards
         its own confidential or proprietary information. All employees, agents
         or representatives of Recipient and any third parties who are given
         access to the Confidential Information shall be under written
         obligation to Recipient to maintain such information in confidence.

                                       3
<PAGE>

         IMS and Customer agree that any Recipient shall have no obligation
         with respect to any information or data which:

         a)       is already rightfully known to Recipient through means other
                  than Disclosing Party; or
         b)       is or becomes publicly known through no wrongful act of
                  Recipient; or
         c)       is rightfully obtained by Recipient from a third-party
                  without similar restriction and without breach of this
                  Agreement; or
         d)       is independently developed by Recipient without breach of
                  this Agreement.

         Disclosing Party shall retain title to all Confidential Information
         (whether tangible or intangible) delivered thereby pursuant to this
         Agreement. Recipient shall not copy, reproduce or use any Confidential
         Information without written authorization of Disclosing Party, except
         as may be reasonably required to accomplish the Insurance
         Administration Services under this Agreement. Upon written request of
         Disclosing Party Recipient shall promptly return, or destroy with
         specific written permission of the Disclosing Party, all tangible
         copies containing Confidential Information, except those copies kept
         in the regular course of business, or that are required to be kept
         pursuant to any state or federal administrative, regulatory or
         statutory mandates. The obligations under this Paragraph (B) shall
         survive the termination of this Agreement. Notwithstanding the
         foregoing, this Article shall not prevent the disclosure of
         Confidential Information to the extent legally required by any court
         or regulatory entity having jurisdiction over the parties.

         For purposes of Article V (B), Recipient and Disclosing Party shall
         include within their meaning all respective subsidiaries, agents, or
         Affiliates of the Recipient and Disclosing Party.

ARTICLE VI.       EXPENSES AND FEES

A.       In consideration of IMS providing Insurance Administration Services
         described herein, Customer shall pay IMS, as applicable, miscellaneous
         fee ("Miscellaneous Fee"), servicing fee ("Service Fee") and claim
         administration fee ("Claim Administration Fee") for each Authorized
         Line of Business, as specified in SCHEDULE B. The performance by IMS
         of any service or function that is outside of the scope of the
         Insurance Administration Services shall require the payment by
         Customer of additional consideration (in addition to the Service Fees)
         as mutually agreed between IMS and Customer.

B.       Except for the Service Fee, which is based upon a percentage of the
         adjusted net written premium and the Claim Administration Fee, the
         Miscellaneous Fees specified in Section IV of SCHEDULE B hereto may be
         increased (up to a maximum of five percent (5%) per year from the
         prior year) effective as of each anniversary of the Effective Date by
         the percentage increase in the United States Consumer Price Index for
         all Urban Users (CPI-U) as reported by the United States Bureau of
         Labor Statistics for the most recently completed calendar year that
         IMS is performing services on behalf of the Customer. In the event
         that a vendor supplying a service or product to IMS, which service or
         product is used by IMS to provide the Insurance Administration
         Services to Customer, increases its rates charged to IMS, IMS may
         increase the Service Fees, Claim Administration Fees, and
         Miscellaneous Fees set forth in Schedule B to incorporate such
         increased costs and will provide Customer with documentation verifying
         the increase.

C.       Customer shall reimburse IMS for travel, living and out-of-pocket
         expenses incurred by IMS personnel in the performance of training
         relative to the Insurance Administration Services to be performed
         under this Agreement.

D.       Customer agrees to pay any and all tariffs and taxes that are now or
         may become applicable to the Insurance Administration Services
         rendered hereunder, including, but not limited to, sales, use, and
         personal property taxes, or any other form of tax based on Insurance
         Administration Services performed, equipment used by IMS solely for
         Customer, and the communicating or storage of data used by IMS solely
         for Customer, but excluding taxes on the net income of IMS.

                                       4
<PAGE>

E.       Subject to the terms of this Agreement, all fees and expenses to be
         payable by Customer to IMS or any third party under this Agreement
         shall be paid within thirty (30) calendar days after Customer's
         receipt of IMS' monthly statement for all services provided to
         Customer under this Agreement. IMS will calculate the fees owed to IMS
         by Customer and will send a statement to Customer within two (2) weeks
         of the last day of the month for which fees are owed. Customer's
         failure to pay all fees and expenses when due shall be considered a
         material breach of this Agreement. Further, if Customer fails to pay
         any fees and expenses due IMS as herein provided, Customer shall pay
         to IMS in addition to all sums otherwise due, interest which shall
         accrue at 1.5% per month on such delinquency from the date the fees or
         expenses became past due. Failure or forbearance to exercise any of
         its rights and privileges hereunder shall not constitute the
         forfeiture or waiver of such rights and privileges on the part of IMS.

F.       Prior to renewal of this Agreement for any Extended Operating Term,
         IMS may modify SCHEDULE B in its discretion to reflect any increase in
         the cost of providing the Insurance Administration Services
         (including, but not limited to statutory, regulatory, or judicial
         changes that require IMS to incur additional cost or expenses in
         performing the Insurance Administration Services) or to remain
         competitive with the rates currently being charged within the industry
         for like services. Any modification of SCHEDULE B shall be proposed to
         Customer at least twelve (12) months prior to the expiration of any
         term of this Agreement.

ARTICLE VII.      LICENSE, TRADE SECRET AND PROPRIETARY RIGHTS

A.       IMS from time to time may use its own proprietary computer software
         products and account servicing methods and procedures ("Proprietary
         System"), which are identified, described or referenced in EXHIBIT I
         hereto, in the performance of the Insurance Administration Services.
         During any term of this Agreement, IMS grants a personal,
         non-transferable, non-assignable, non-exclusive license to Customer to
         use portions of the Proprietary System as necessary for IMS to perform
         the Insurance Administration Services under this Agreement. Further,
         no provision within this Agreement shall be interpreted as prohibiting
         IMS from selling or licensing its Proprietary System to any other
         customer or prospective customer of IMS.

B.       IMS, from time to time, may also use proprietary third party computer
         software products and third party account servicing methods and
         procedures ("Third Party Proprietary System"), which are identified,
         described or referenced in EXHIBIT I hereto in the performance of the
         Insurance Administration Services. No provision within this Agreement
         shall be interpreted as prohibiting IMS or the Third Party Proprietary
         System vendor from selling or licensing the Third Party Proprietary
         System, or modifications and enhancements to the Third Party
         Proprietary System, to any other customer or prospective customer of
         IMS, so long as Customer's Confidential Information is not disclosed.

C.       Other than the limited rights to use the Proprietary System and the
         Third Party Proprietary System, as provided in Article VII (A) and (B)
         above, this Agreement grants to Customer no right to possess or
         reproduce, download, reverse engineer, or obtain any other interest
         in, the Proprietary System or the Third Party Proprietary System, or
         their specifications in any tangible or intangible medium. Customer
         may not mortgage, hypothecate, sell, assign, pledge, lease, transfer,
         license, or sublicense the Proprietary System or the Third Party
         Proprietary System, nor allow any person, firm, entity or corporation
         to transmit, copy, reproduce, download, reverse engineer, or obtain
         any other interest in the Proprietary System or the Third Party
         Proprietary System, or their specifications in whole or in part. In
         the event Customer shall come into possession of any source or object
         code associated with the Proprietary System or the Third Party
         Proprietary System, Customer shall immediately notify IMS and return
         the source or object code associated with Proprietary System or the
         Third Party Proprietary System in its possession and all copies of any
         kind thereof to IMS.

                                       5
<PAGE>

D.       Customer covenants and agrees not to disclose or otherwise make the
         Proprietary System or the Third Party Proprietary System available to
         any person other than employees, insurance sales agents ("Agents") or
         representatives of the Customer required to have access or use of the
         Proprietary System or the Third Party Proprietary System to facilitate
         IMS' or Customer's performance under this Agreement. Customer agrees
         to obligate each such employee, Agents, or representative to a level
         of care sufficient to protect the Proprietary System and the Third
         Party Proprietary System from unauthorized disclosure.

E.       The obligations of Customer under this Article shall survive
         termination of this Agreement, regardless of the reason for
         termination.

ARTICLE VIII.     TERMINATION

A.       Either party may terminate this Agreement at the end of the Minimum
         Operating Term or at the end of any Extended Operating Term, provided
         the terminating party gives the other party at least three (3) months
         prior written notice of such termination.

B.       This Agreement shall also terminate:

         a)       at the election of the Customer, upon written notice to IMS,
         if IMS becomes insolvent, if it makes an assignment for the benefit of
         its creditors, if a petition for relief under the United States
         Bankruptcy Code is filed by or against it and it is not dismissed
         within thirty (30) days of being filed, or if a trustee, receiver or
         other custodian of its assets is appointed;

         b)       at the election of IMS, upon written notice to Customer, if
         Customer becomes insolvent, if it makes an assignment for the benefit
         of its creditors, if a petition for relief under the United States
         Bankruptcy Code is filed by or against it and it is not dismissed
         within thirty (30) days of being filed, or if a trustee, receiver or
         other custodian of its assets is appointed (including, but not limited
         to, any proceeding pursuant to any state or federal action governing
         insurer insolvency);

         c)       at the election of the Customer, if IMS materially breaches
         any provision of this Agreement and fails to cure such breach within
         sixty (60) days after written notice thereof is given to IMS by the
         Customer;

         d)       at the election of IMS, if Customer materially breaches any
         provision of this Agreement and fails to cure such breach within sixty
         (60) days after written notice thereof is given to Customer by IMS
         (except for Customer's failure to pay any and all fees and expenses
         due under Article VI of this Agreement, in which case Customer must
         cure such breach within thirty (30) days after written notice thereof
         is given to Customer by IMS);

         e)       at the election of IMS, upon written notice to Customer, in
         the event of a Change of Control of Customer unless (i) Customer has
         provided IMS not less than sixty (60) days advance written notice of
         the proposed Change of Control and (ii) IMS has agreed in writing to
         such Change of Control.

The initiation under this Agreement of any dispute resolution procedure shall
not prevent a party from terminating this Agreement in accordance with this
Article VIII.

C.       On expiration or termination of this Agreement, IMS shall return to
         Customer all of Customer's Confidential Information, either in
         electronic or hard copy form, in IMS' possession and delete any
         electronic copies thereof related to the Insurance Administration
         Services provided by IMS during the term of this Agreement; Customer
         shall do the same and cause Customer's agents and representatives
         (including, but not limited to, any third party given access to the
         Confidential Information) to do the same relative to IMS' Confidential
         Information. Customer shall pay IMS (in accordance with SCHEDULE B
         then in effect) any and all Service Fees, Claim Administration

                                       6
<PAGE>

         Fees, Miscellaneous Fees and third party fees due IMS for Insurance
         Administration Services performed pursuant to this Agreement. If
         Customer requires assistance in converting Customer's data to a new
         format, or requires assistance from IMS relative to Customer's
         transition to an alternative claim administration arrangement, then
         IMS shall provide such services at the then current rates charged by
         IMS for the services specified in Section IV of SCHEDULE B. These
         obligations under this Paragraph (C) shall survive any termination of
         this Agreement.

ARTICLE IX.       WARRANTIES AND COVENANTS

IMS covenants that IMS will comply in all material respects with the law of the
state or states covered by this Agreement and with the rules and regulations of
all regulatory authorities having jurisdiction over IMS' activities, and shall,
whenever necessary, maintain at its own expense all required licenses to
transact business in such states. IMS warrants to Customer that (a) IMS owns or
otherwise has the right to use the Proprietary System used to perform the
Insurance Administration Services, and the rights to such Proprietary System
granted hereunder will not knowingly infringe upon a third party's copyright or
patent rights; (b) IMS is duly authorized to transact the business of servicing
insurance companies; and (c) the express warranties provided here and elsewhere
in this Agreement are IMS' only warranties and no other warranty, express or
implied, including any warranty of merchantability, fitness or fitness for a
particular purpose, will apply to the provision of Insurance Administration
Services under this Agreement.

ARTICLE X         LIABILITY, LIMIT OF LIABILITY, INDEMNITIES AND REMEDIES

A.       The parties shall assume the following obligations and liabilities as
         specified below and subject to the limitations on liability set forth
         in Article X, (B) below:

         a)       IMS shall indemnify, defend and hold harmless Customer, its
                  officers, directors, employees and controlling persons from
                  any liability, cost, loss, fine, penalty, claim, demand,
                  damage or expense, including reasonable attorney's fees,
                  incurred directly as a result of any act, error or omission
                  by the IMS, or incurred directly as a result of any material
                  breach of IMS' obligations under this Agreement, or the
                  material breach of any representation or warranty made by IMS
                  to Customer pursuant hereto;

         b)       Customer shall indemnify, defend and hold harmless IMS, its
                  officers, directors, employees and controlling persons from
                  any liability, cost, loss, fine, penalty, claim, demand,
                  damage or expense, including reasonable attorney's fees,
                  incurred directly as a result of any act, error or omission
                  by the Customer, or directly as a result of any material
                  breach of Customer's obligations under this Agreement, or the
                  material breach of any representation or warranty made by
                  Customer to IMS pursuant hereto;

         c)       Customer agrees that in the event IMS is in violation of any
                  code, statute or law(s) due to the acts or omissions of
                  Customer, or the servants, employees, representatives,
                  adjusters, or Agents of Customer, then Customer shall assume
                  the responsibility and liability for such acts or omissions
                  and shall indemnify and hold IMS harmless for any such
                  liability;

B.       Except for: (i) fees and expenses payable to IMS under Article VI of
         this Agreement; (ii) acts of fraud, or willful misconduct; and (iii)
         violations of Article VII of this Agreement, each party's maximum
         liability ("Maximum Liability") to the other party for any cause
         whatsoever, during any one calendar year shall be limited to direct
         damages incurred by that party and shall not exceed the amount of
         compensation paid by the Customer under SCHEDULE B of this Agreement
         for the six (6) months immediately preceding the breach or cause of
         liability. Further, IMS shall not be liable for any lost profits,
         business goodwill, or other consequential, punitive, special or
         incidental damages incurred by Customer.

                                       7
<PAGE>

C.       If data is processed in error due directly to an error or defect in
         the Insurance Administration Services provided by IMS, then upon IMS
         receiving notice of such error or defect, IMS shall reprocess such
         data without charge to Customer.

D.       All parties agree to promptly give the others notice upon being
         notified or becoming aware of any and all allegations or claims, which
         could give rise to a claim under this Article.

ARTICLE XI.       GENERAL AGREEMENTS

A.       This Agreement and all matters arising hereunder shall be governed by
         and determined in accordance with the laws of the State of Florida
         without giving effect to any choice of law provisions.

B.       The parties shall not be liable or deemed to be in default hereunder
         for any delay or failure in performance under this Agreement or
         interruption of the Insurance Administration Services resulting,
         directly or indirectly, from acts of God (including but not limited to
         weather catastrophes such as floods, hurricanes, tornadoes,
         windstorms, ice storms, blizzards and hail storms), civil or military
         authority, labor disputes, shortages of suitable parts, materials,
         labor or transportation or any similar cause beyond the reasonable
         control of the parties.

C.       Any and all notices, designations, consents, offers, acceptances, or
         any other communication provided for herein shall be given in writing
         by hand delivery, by overnight carrier, by registered or certified
         mail or by facsimile transmission and shall be addressed as follows:

         As to Customer:            Island Insurance Companies, Ltd.
                                    1022 Bethel Street
                                    Honolulu, HI 96806-1520
                                    Fax Number: (808) 564-8177
                                    Attention: Harvey Y.F. Lee,
                                               Assistant Vice President

         As to IMS:                 Insurance Management Solutions, Inc.
                                    801 94th Avenue North
                                    St. Petersburg, Florida
                                    Fax Number: (727) 803-2076
                                    Attention: David Howard, President

         Notices sent by hand delivery shall be deemed effective on the date of
         actual hand delivery. Notices sent by overnight carrier shall be
         deemed effective on the next Business Day after being placed into the
         hands of the overnight carrier. Notices sent by registered or
         certified mail shall be deemed effective on the fifth Business Day
         after being deposited into the post office. Notices sent by facsimile
         transmission shall be deemed to be effective on the day when sent if
         sent prior to 4:30 p.m. (the time being determined by the time zone of
         the recipient), otherwise they shall be deemed effective on the next
         Business Day.

D.       This Agreement, and the exhibits, schedules and appendices attached
         hereto, contain all of the prior oral and/or previously written
         agreements, representations, and arrangements between the parties
         hereto. There are no representations or warranties other than those
         set forth herein. No change or modification of this Agreement,
         including the exhibits, schedules and appendices hereto, shall be
         valid unless the same shall be in writing and signed by all of the
         parties hereto. All exhibits, schedules, appendices, addendum of any
         kind, or attachments to this Agreement shall be made a part of this
         Agreement and shall be subject to all terms and conditions of this
         Agreement. Articles V (B), VII, and VIII (C) shall survive any
         termination of this Agreement.

                                       8
<PAGE>

E.       Words of a gender used in this Agreement shall be held to include any
         other gender, the words in a singular number held to include the
         plural, when the sentence so requires. Article headings are intended
         for purposes of description only and shall not be used for purposes of
         interpretation of this Agreement.

F.       Should any part of this Agreement for any reason be declared invalid,
         such decision shall not effect the validity of any remaining portion,
         which remaining portion shall remain in full force and effect as if
         the Agreement had been executed with the invalid portion thereof
         eliminated. It is, therefore, declared the intention of the parties
         hereto that each of them will have executed the remaining portion of
         this Agreement without including therein any such part, parts or
         portion which may, for any reason, be hereafter declared void.

G.       If either party should bring a Court action alleging breach of this
         Agreement or seeking to enforce, rescind, renounce, declare, void or
         terminate this Agreement or any provisions thereof, the prevailing
         party shall be entitled to recover all of its legal expenses,
         including reasonable attorneys' fees and costs (including legal
         expenses for any appeals taken), and to have the same awarded as part
         of the judgment in the proceeding in which such legal expenses and
         attorneys' fees were incurred.

H.       Customer shall not assign this Agreement or any of its rights
         hereunder without the prior written consent of IMS.

I.       The parties agree not to disclose the terms and conditions of this
         Agreement to any third party, except (i) as required in the normal
         conduct of Customer's business, or (ii) as required by law or
         regulation including, without limitation, any Federal securities law,
         or regulation.

ARTICLE XII.      DISPUTE RESOLUTION PROCEDURES

A.       The parties will attempt in good faith to promptly resolve any
         material dispute regarding this Agreement by negotiations between
         senior management ("Senior Management") of the parties. Senior
         Management of each party will meet within ten (10) calendar days of
         notice ("Notice of Dispute") by a party of the existence of a material
         dispute, at a mutually agreed time and place, to resolve the material
         dispute. Senior Management, who shall have the authority to settle the
         dispute, shall prepare and exchange memoranda stating the issues in
         the material dispute and their positions. If the material dispute is
         not resolved to the mutual satisfaction of the parties within seven
         (7) calendar days of the meeting of Senior Management, then the
         parties may attempt to resolve the controversy using mediation.

B.       If the matter has not been resolved pursuant to the aforesaid
         mediation procedure within thirty (30) calendar days of the issuance
         of a party of a Notice of Dispute, or if either party will not
         participate in mediation, then either party may initiate arbitration
         upon fifteen (15) calendar days written notice to the other party.
         Notwithstanding the foregoing, all deadlines specified above may be
         extended upon mutual written agreement of the parties.

C.       Except for the right of either party to apply to a court of competent
         jurisdiction for review of the award of arbitration, for a temporary
         restraining order, preliminary injunction or other equitable relief to
         preserve the status quo, or disputes relating to breach of the
         confidentiality, non-disclosure or trade secret provisions of this
         Agreement, all claims, disputes, controversies and other matters
         relating to breach of this Agreement, and which cannot be resolved by
         the parties shall be settled by arbitration in accordance with this
         Agreement.

                                       9
<PAGE>

D.       Notice requesting arbitration ("Arbitration Notice"), or any other
         notice made in connection therewith, shall be made in writing by one
         party and sent by certified mail, return receipt requested, to the
         other party. The Arbitration Notice shall state in particular all
         issues to be resolved in the view of the complaining party, shall
         appoint the arbitrator selected by the complaining party and shall set
         a tentative date for the arbitration hearing, which date shall be no
         sooner than forty-five (45) calendar days and no later than ninety
         (90) calendar days from the date that the Arbitration Notice is
         mailed. Within twenty (20) calendar days of receipt of the complaining
         party's Arbitration Notice, the respondent shall notify the
         complaining party of the location for conducting arbitration and the
         name of its appointed arbitrator. When the two arbitrators have been
         appointed, they shall agree on a third independent arbitrator and
         shall appoint such person by written notice to the parties signed by
         both arbitrators within thirty (30) calendar days from the date of the
         appointment of the second arbitrator. If the two arbitrators fail to
         agree upon the appointment of an independent arbitrator at the end of
         thirty (30) calendar days following the appointment of the second
         arbitrator, then the independent arbitrator shall be appointed by the
         American Arbitration Association ("AAA"), or its successor, in
         accordance with its then prevailing commercial arbitration rules then
         in effect. The three (3) arbitrators shall constitute the arbitration
         board ("Board").

E.       The members of the Board shall be active or retired (i) lawyers or
         professionals familiar with insurance and/or (ii) active or former
         officers or management employees of insurance and/or data processing
         firms and/or software development companies. The person selected by
         the two respective arbitrators appointed by the parties shall be the
         umpire or chief arbitrator and must be a licensed attorney.

F.       Arbitration shall be conducted in accordance with the Commercial Rules
         of the American Arbitration Association ("AAA") then in effect except
         as modified herein.

G.       The parties agree that all then current employees of each with
         material relevant information will be voluntarily produced, at the
         employer's expense, for all proper discovery and arbitration hearings.

H.       The cost of the arbitration relative to the arbitrators and the AAA
         ("Costs") shall be borne equally pending the arbitrators' award. Each
         party shall bear its own expenses for attorneys' fees. The prevailing
         party in any arbitration proceeding hereunder shall be entitled, in
         addition to such other relief as may be granted, to recover the
         portion of the Costs incurred by that party in connection with
         arbitration under the Agreement prior to the award.

I.       The parties agree that the Board shall be required to render its
         decision in writing within thirty (30) calendar days of the conclusion
         of the arbitration proceedings, unless such time shall be extended by
         mutual written agreement of the parties.

J.       With respect to any matter brought before the Board, the Board shall
         make a decision having regard to the intentions of the parties, the
         terms of this Agreement, and custom and usage of the insurance and
         data processing industry. Such decisions shall be in writing and shall
         state the findings of fact and conclusions of law upon which the
         decision is based, provided that such decision may not (i) award
         consequential, punitive, special, incidental or exemplary damages, or
         (ii) include a suspension of this Agreement or any provisions hereof.
         The decision shall be based exclusively upon the evidence presented by
         the parties at a hearing in which evidence shall be allowed. Said
         decisions may be reviewable and vacated, modified or corrected, in
         whole or in part, by appropriate courts of competent jurisdiction for
         clear abuses of discretion or errors at law by the Board. If the
         decision is not vacated, modified, or corrected in whole or in part
         upon an appeal, such decision shall be final and binding upon all
         parties to the proceeding and may be entered by either party in any
         court having competent jurisdiction.

                                      10
<PAGE>

IN WITNESS WHEREOF, the parties hereto by their respective duly authorized
representatives have executed this Agreement to be effective as of the 1st day
of March, 2002.

"IMS"

INSURANCE MANAGEMENT SOLUTIONS, INC.

By:  /s/ D.M. Howard
   -----------------------------------
As its:  President/CEO
       -------------------------------
Date:  04/10/02
     ---------------------------------

"CUSTOMER"

ISLAND INSURANCE COMPANIES, LTD.

By:   /s/ Raymond M.  (unreadable)
   -----------------------------------
As its:  Vice President
       -------------------------------
Date:  03/22/02
     ---------------------------------

                                      11
<PAGE>

SCHEDULES:

SCHEDULE "A" -    AUTHORIZED STATES AND INSURANCE PROGRAM
SCHEDULE "B" -    FEE SCHEDULE

EXHIBITS:

EXHIBIT 1 -       WYO FLOOD INSURANCE SERVICES

                                      12
<PAGE>

                                   SCHEDULE A

                    AUTHORIZED STATES AND INSURANCE PROGRAM

IMS shall provide Insurance Administration Services as described in EXHIBIT I
for the following authorized line(s) of business ("Authorized Line of
Business") in the following authorized state(s) ("Authorized States"):

1.       AUTHORIZED LINE OF BUSINESS:

         WYO Flood Insurance

2.       AUTHORIZED STATES:

         The States of Hawaii and such other states as may be mutually agreed
         upon in writing by Customer and IMS.

                                      13
<PAGE>

                                   SCHEDULE B

                                  FEE SCHEDULE

* Indicates that material has been omitted and confidential treatment has been
requested therefor. All such omitted material has been filed separately with the
SEC pursuant to Rule 24b-2.

                                      14
<PAGE>

                                   EXHIBIT I

                 INSURANCE ADMINISTRATION SERVICES (WYO FLOOD)

         WHEREAS, The Federal Emergency Management Agency ("FEMA") and the
Federal Insurance Administration ("FIA") administer the National Flood
Insurance Program ("NFIP") and Customer is an insurance company duly licensed
to write flood insurance in the state or states to which this Agreement
pertains and is approved by FIA to act as a Write Your Own Company ("WYO
Company") under the Write Your Own Flood Insurance Program ("WYO Flood
Program"), a program offered under the NFIP; and

         WHEREAS, Customer wishes to engage the services of IMS to administer
certain of the Customer's obligations as a WYO Company in the state(s)
("Authorized States") set forth in SCHEDULE A.

1)       DEFINITIONS. Capitalized terms not otherwise defined in the Agreement
         or in this Exhibit shall be construed as otherwise generally
         understood in the insurance and data processing industry.

2)       POLICY ADMINISTRATION. IMS shall administer Customer's WYO Flood
         Program policies ("WYO Policies") performing the services listed
         hereunder in accordance with the NFIP, as amended, and all
         implementing regulations as well as Customer's Write Your-Own
         Arrangement ("Arrangement") with FEMA. The same standards by which
         Customer is bound shall be those by which IMS is bound to Customer.

a)       Underwriting.
         -        Review WYO Policy application for completeness/contact Agent
                  as applicable;
         -        Create WYO Policy file;
         -        Underwriting based on NFIP guidelines.

b)       Data Entry. (subject to the 120 Day Internet Access Milestones
         specified in Schedule B)
         -        New WYO Policy business;
         -        WYO Policy changes;
         -        Mortgagee changes;
         -        WYO Flood insurance Agent changes;
         -        Endorsements;
         -        Cancellations.

c)       WYO Policy Issuance.
         -        WYO Policy for new business, renewals and endorsements where
                  declaration page issuance is required;
         -        WYO Policy Renewal processing;
         -        WYO Policy automated rating;
         -        WYO Policy print declarations and related WYO Policy forms.

d)       Billing & Collection.
         -        Print invoices, reminders, cancellation notification, return
                  WYO Policy premium disbursements;
         -        Mortgage activity processing;
         -        EFT processing;
         -        Process cancellations for non-payment.

e)       Customer Service.
         -        Provide a dedicated customer service support call center;
         -        Respond to Customer's WYO Policyholder and WYO flood
                  insurance sales Agent telephone inquires;

                                      16
<PAGE>

         -        Process requests for WYO Policy changes;
         -        Respond to correspondence related to WYO Policy and WYO
                  Policy claim administration services;
         -        Track and respond to complaints related to WYO Policy and/or
                  WYO Policy claim administration services; IMS customer
                  service hours of operation 8:00 a.m. to 8:00 p.m. Eastern
                  Standard Time ("EST").

f)       Bureau Reporting.
         -        Process and balance WYO Policy premium and WYO Policy loss
                  data;
         -        Edit and correct invalid data;
         -        Prepare and mail Bureau transmittals;
         -        To the best of IMS knowledge, provide on-going regulatory
                  changes;
         -        Maintain WYO Policy history files.

g)       Accounting Administration/Premium.
         -        Posting, balancing, and control of WYO Policy premium
                  receivable;
         -        Accounting and payment of Customer's WYO flood insurance
                  Agents WYO Policy commissions;
         -        Issuance, control and accounting for disbursements for WYO
                  Policy premium refunds, WYO Policy commissions.

h)       Financial Accounting.
         -        Issuance, control and accounting for disbursements for
                  general expenses;
         -        Day-to-day management of short term cash;
         -        Provide reasonable and customary financial management
                  reports.

i)       Treasury.
         -        Receive and post WYO Policy payments;
         -        Issuance, control and accounting for disbursements of WYO
                  Policy premium related expenses;
         -        Bank reconciliation of WYO Policy premium disbursements;
         -        OCR WYO Policy payment processing;
         -        Mortgagee billing.

j)       Agency Administration.
         -        Agent of record assignment and control;
         -        1099 reporting;
         -        Maintain WYO flood insurance Agent files.

k)       Print & Distribution Services.
         -        Automated document library;
         -        Electronic document assembly;
         -        Electronic document archival/retrieval;
         -        Automated finishing/insertion facility;
         -        Mail pre-sort facility;
         -        Mailing WYO Policy, WYO Policy billings and WYO Policy
                  renewals (including postage and supplies);
         -        Document Imaging.

l)       System Administration.
         -        Availability of Proprietary System to Customer and Customer's
                  WYO Policy claim vendor;
         -        Process daily, weekly, monthly, and annual cycles;
         -        Internet processing capabilities subject to Internet use
                  limitations specified in Schedule B.

                                      17
<PAGE>

3)       CASH MANAGEMENT.

a)       Banking Arrangement. IMS and Customer shall establish a banking
         arrangement that complies with the Arrangement and other WYO Flood
         program requirements, and which will provide for the establishment of
         an NFIP restricted account ("Restricted Account") with Customer as
         custodian, and a FEMA letter of credit ("Letter of Credit"), with
         additional accounts as needed to facilitate WYO Flood Program
         operations, all in conformity with FEMA/FIA guidelines. Customer shall
         grant specific IMS' employees check-signing authority on any
         Restricted Account and the authority to initiate appropriate drawdowns
         against Customer's Letter of Credit, in order for IMS to act on
         Customer's behalf in making disbursements for Customer liabilities
         established by the Arrangement, the WYO Flood Program, and this
         Agreement. All such authorizations shall be in writing and may be
         revoked, amended or modified at any time by Customer upon thirty (30)
         days advanced written notice to IMS. Notwithstanding the foregoing,
         IMS shall not draw down on Letter of Credit for an amount that exceeds
         $50,000.00 without prior approval from the Chief Financial Officer of
         Customer, which approval shall not be unreasonably withheld and shall
         be given within 24 hours of the request being made by IMS.

b)       Premium Remittance -IMS shall establish procedures, as determined by
         FIA, for a timely deposit and remittance of funds to the U.S. Treasury
         via authorized automatic clearinghouse mechanism. Gross premium
         collected by IMS, for WYO Flood program business written under this
         Agreement, shall be remitted to the FIA by IMS net of the established
         NFIP Expense Allowance. ("Allowance") , which Allowance expenses to be
         paid under the Allowance include Carrier's operating and
         administrative expenses.

c)       Financial Data - IMS shall maintain supporting documentation for all
         bank accounts over which it has authority. On a monthly basis, IMS
         shall prepare financial data, reflecting all debits and credits with
         respect to WYO Flood Program business administered under this
         Agreement, including agents' commissions and IMS' Service Fees paid.

d)       WYO Flood Program Reimbursements - Any WYO Flood Program
         reimbursements made pursuant to the Arrangement, including, but not
         limited to, those for the unallocated loss adjustments expenses, the
         allocated loss adjustments, and for approved special allocated loss
         adjustments expenses, shall be payable to IMS upon receipt by
         Customer.

e)       Marketing Goals - Customer shall maintain responsibility for any risk,
         or shall be entitled to any reward, that may be associated with
         achieving or failing to achieve any marketing goal set by the FIA or
         FEMA.

4)       CLAIM ADMINISTRATION. IMS shall provide Claims administration in
         accordance with the Arrangement, the Financial Control Plan and the
         Agreement, which claim administration processing services are outlined
         below. Any litigation costs not reimbursed by FEMA would be the
         responsibility of the Customer. IMS may also rely on the information
         and direction contained in the WYO Flood Program Claims Manual, the
         FEMA Adjuster Manual, the Flood Insurance Agent's Manual, the Standard
         Flood Insurance Policy, the WYO Operational Overview, and/or other WYO
         Flood Program instructional material.

a)       Claim Management Facilitation.
         -        Twenty-four (24) hour reporting capability, first notice of
                  loss, coverage for verification and WYO Policy claim;
         -        Investigation of WYO Policy claim;
         -        Fast track unit;
         -        Reinspection and audit;
         -        Claims handling standards/best practices;
         -        Claim check issuance;
         -        Management reports;

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         -        WYO Policyholder satisfaction surveys;
         -        Special Investigation Unit ("SIU") services;
         -        Salvage & subrogation claim processing;
         -        Litigation support.

b)       Catastrophe Preparation and Response.

         -        Preparedness by developing media reference guides and
                  notices, adjuster workshops, and training manuals; provide
                  storm tracking; reserve equipment and supplies; establish
                  procedures;

         -        Response in case of a catastrophic event by establishing and
                  staffing satellite service centers; automating the
                  distribution of claims to adjusters; internal
                  examinations/external reinspections;

         -        Recovery by providing management reports, audit/reinspection
                  program, SIU and oversight operations.

5)       ADJUSTING FIRM. IMS' Colonial Catastrophe Claims Service will be the
         authorized adjusting firm ("Adjusting Firm") for all claims adjusting
         work on behalf of Customer. However, Customer may designate a
         different Adjusting Firm with thirty (30) days written notice to IMS.

6)       DISASTER RECOVERY PLAN. IMS shall perform its' full range Disaster
         Recovery Plan on an annual basis. Customer has the right to observe
         the Disaster Recovery Plan at its own expense, provided that it has
         requested in writing to participate within thirty (30) days of planned
         execution.

7)       STATISTICAL REPORTING. IMS shall maintain Customer's data within IMS'
         policy, claims and general ledger systems. IMS shall prepare and
         submit to FIA, monthly financial and statistical reports,
         reconciliation reports, certifications, and statistical tapes on
         Customer's behalf, in accordance with WYO Flood Program Accounting
         Procedures and the Transaction Record Reporting and Processing Plan
         ("TRRP Plan").

8)       SPECIAL SERVICES.

         a)       Audit - At Customer's expense and at IMS' premises, IMS shall
                  conduct a biennial audit of any and all WYO Flood Program
                  business written by Customer pursuant to this Agreement. IMS
                  shall select an independent auditor and IMS shall present the
                  expense estimate for the biennial audit to Customer. Within
                  fifteen (15) days of receiving the estimate, Customer shall
                  have the option of selecting their own independent auditor to
                  conduct the audit or proceed with the independent auditor
                  selected by IMS.

         b)       Zone Determination Services - IMS shall provide flood zone
                  determinations to the Customer (or Customer's agents) to
                  assist in writing a WYO Policy to be placed with the Customer
                  and administered by IMS.

         c)       Rating Software - From the Effective Date of this Agreement
                  up to the one (1) year anniversary of the date that IMS
                  provides internet access (which shall include deployment of
                  the internet access into live production) to any of
                  Customer's insurance sales agents for the Authorized Line of
                  Business within the Authorized States, IMS will make
                  available to Customer and/or Customer's insurance sales
                  agents, rating software (which by definition is a Proprietary
                  System) for the ability to provide quotations, prepare new
                  business applications, endorsements and cancellation of the
                  WYO Policy.

         d)       Training - Upon Customer's request and excluding travel
                  expenses, IMS will provide four (4) training sessions per
                  calendar year to Customer and/or Customer's Agents. Customer
                  will provide the training facility. Additional requests for
                  training will be charged at One Hundred and Twenty Five
                  Dollars ($125) per day plus reasonable per diem and travel
                  expenses incurred.

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         e)       Marketing Material. IMS will make available to Customer its
                  marketing or promotional materials, which IMS may customize
                  and produce for Customer at Customer's expense.

         f)       Agency Rollover Services. Within a reasonable time of
                  Customer's request, IMS will provide rollover services to
                  those Customer agents that wish to roll over 500 or more WYO
                  Policies in their book of business to Customer. In the event
                  that there are several Agents within a concentrated
                  geographical area wishing to roll over 500 or more WYO
                  Policies to Customer, IMS will provide rollover service to
                  all Agents within that area at the same time. Due to the
                  potential size of the project, IMS will need Customer to
                  provide a full listing of Agents, location and size of
                  business. IMS will create a schedule to perform this service.

         g)       Additional Fees & Services. Additional services not specified
                  in this Agreement may be provided by as mutually agreed upon
                  in writing between the Customer and IMS in writing.

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