Document:

<PAGE>
                                                                   Exhibit 10.30

                                                           CARVILL AMERICA, INC.
                                                         The Pinnacle, Suite 375
                                                         3455 Peachtree Road, NE
                                                          Atlanta, Georgia 30326
                                                         Telephone: 404-475-0314
                                                         Facsimile: 404-475-0439

<TABLE>
<S>                    <C>
TITLE:                 EXCESS OF LOSS REINSURANCE CONTRACT

BETWEEN:               DARWIN NATIONAL ASSURANCE COMPANY, DARWIN SELECT
                       INSURANCE COMPANY, CAPITOL INDEMNITY CORPORATION, CAPITOL
                       SPECIALTY INSURANCE CORPORATION, PLATTE RIVER INSURANCE
                       COMPANY AND/OR ANY OTHER ASSOCIATED, AFFILIATED OR
                       SUBSIDIARY COMPANIES OF ALLEGHANY INSURANCE HOLDING LLC,
                       BUT ONLY IN RESPECT OF BUSINESS UNDERWRITTEN BY DARWIN
                       PROFESSIONAL UNDERWRITERS, INC.

                       AND

                       THE REINSURERS SIGNATORY HERETO

COMMENCING:            JANUARY 1, 2005

U.S. CLASSIFICATION:   U.S. REINSURANCE
</TABLE>

<PAGE>

                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
PREAMBLE   IDENTITY OF PARTIES
--------   -------------------
<S>                                                                           <C>
ARTICLE 1  BUSINESS REINSURED..............................................    1
ARTICLE 2  EXCLUSIONS......................................................    1
ARTICLE 3  COVER, LIMIT AND RETENTION......................................    3
ARTICLE 4  TERRITORIAL SCOPE...............................................    3
ARTICLE 5  PERIOD..........................................................    3
ARTICLE 6  SPECIAL TERMINATION.............................................    5
ARTICLE 7  ULTIMATE NET LOSS...............................................    6
ARTICLE 8  LOSS RATIO CAP..................................................    7
ARTICLE 9  EXCESS OF ORIGINAL POLICY LIMITS................................    7
ARTICLE 10 EXTRA-CONTRACTUAL OBLIGATIONS...................................    8
ARTICLE 11 NET RETAINED LINES..............................................    9
ARTICLE 12 PREMIUM.........................................................    9
ARTICLE 13 PREMIUM LIMITATION..............................................   10
ARTICLE 14 REPORTS.........................................................   11
ARTICLE 15 NOTICE OF LOSS AND LOSS SETTLEMENTS.............................   11
ARTICLE 16 INTEREST PENALTY................................................   12
ARTICLE 17 LOSS AND UNEARNED PREMIUM RESERVES..............................   13
ARTICLE 18 COMMUTATION.....................................................   15
ARTICLE 19 CURRENCY........................................................   15
ARTICLE 20 TAX PROVISIONS..................................................   16
ARTICLE 21 INSOLVENCY OF THE REASSURED.....................................   16
ARTICLE 22 OFFSET..........................................................   17
ARTICLE 23 DELAYS, ERRORS AND OMISSIONS....................................   17
</TABLE>

<PAGE>

<TABLE>
<S>                                                                           <C>
ARTICLE 24 AMENDMENTS AND ALTERATIONS......................................   17
ARTICLE 25 ACCESS TO RECORDS AND CLAIMS REVIEW.............................   18
ARTICLE 26 ARBITRATION.....................................................   18
ARTICLE 27 SERVICE OF SUIT.................................................   19
ARTICLE 28 CONFIDENTIALITY.................................................   20
ARTICLE 29 REGULATORY COMPLIANCE...........................................   20
ARTICLE 30 INTERMEDIARY....................................................   21
ARTICLE 31 GOVERNING LAW...................................................   21
ARTICLE 32 PARTICIPATION...................................................   21
ARTICLE 33 SEVERAL LIABILITY NOTICE........................................   21
</TABLE>

ATTACHMENTS

1.   NUCLEAR INCIDENT EXCLUSION CLAUSES - LIABILITY -REINSURANCE U.S.A./CANADA

2.   NUCLEAR ENERGY RISKS EXCLUSION CLAUSE - REINSURANCE - 1994 - (WORLDWIDE
     excluding U.S.A. and CANADA)

3.   APPENDIX A LOSS BODERAU FORMAT

<PAGE>

                       EXCESS OF LOSS REINSURANCE CONTRACT

PREAMBLE

This Contract is made and entered into between Darwin National Assurance
Company, Darwin Select Insurance Company, Capitol Indemnity Corporation, Capitol
Specialty Insurance Corporation, Platte River Insurance Company and/or any other
associated, affiliated or subsidiary companies of Alleghany Insurance Holding
LLC, but only in respect of business underwritten by Darwin Professional
Underwriters Inc. of 76 Batterson Park Road, Farmington, Connecticut 06032 (NAIC
Group Code 10472) (hereinafter referred to as "the Reassured") and the
Reinsurers signatory hereto (hereinafter referred to as "the Reinsurers"), on
the following terms and conditions:

                                   ARTICLE 1

                               BUSINESS REINSURED

This Contract applies to policies of insurance classified by the Reassured as
Directors' & Officers' Liability, Fiduciary Liability, Employment Practices
Liability, Managed Care Organizations Errors and Omissions Liability, Insurance
Agents Errors and Omissions Liability, Lawyers Professional Liability (subject
to Exclusion 8 herein) and Miscellaneous Professional Liability.

For the purposes of this Contract, the terms "policy", "policies" or "original
policies" as used herein shall be understood to mean all binders, policies,
contracts, endorsements or other evidence of insurance issued in the name of the
Reassured.

                                   ARTICLE 2

                                   EXCLUSIONS

This Contract does not apply to and absolutely excludes the following:

1.   Nuclear Incidents, in accordance with the Nuclear Incident Exclusion
     Clauses - Liability - Reinsurance - U.S.A./Canada - as attached.

2.   Nuclear Energy Risks, in accordance with the Nuclear Energy Risks Exclusion
     Clause (Reinsurance) (1994) (Worldwide excluding U.S.A. and Canada) - as
     attached.

3.   All liability of the Reassured arising by contract, operation of law, or
     otherwise, from its participation or membership, whether voluntary or
     involuntary, in any Insolvency Fund. "Insolvency Fund" includes any
     guarantee fund, insolvency fund, plan, pool, association, fund or other
     arrangement, howsoever denominated, established or governed, which provides
     for any assessment of or payment or assumption by the Reassured of part or
     all of any claim, debt, charge, fee or other obligation of an insurer, or
     its successors or assigns, which has been declared by

<PAGE>

     any competent authority to be insolvent, or which is otherwise deemed
     unable to meet any claim, debt, charge, fee or other obligation in whole or
     in part.

4.   Liability assumed by the Reassured as a Member or Reinsurer of any Pool,
     Association or Syndicate.

5.   Financial Guarantee and Insolvency Insurance.

6.   Surety Business.

7.   Reinsurance Assumed Business, other than policies "fronted" by another
     carrier and individually underwritten by Darwin Professional Underwriters,
     Inc, and Inter-Company Pooling Arrangements.

8.   Business classified by the Reassured as Accountants Errors & Omissions,
     Actuarial Errors & Omissions, Architects and Engineers Errors & Omissions,
     Engineering/Construction Risk Errors & Omissions, Lawyers Professional
     Liability but only in respect of law firms with 51 or more attorneys at the
     inception of the original policy/program attaching hereto, For Profit
     Outside Directors Liability when written as such under a Lawyers
     Professional Liability policy subject to this Contract, Financial
     Institutions Errors & Omissions (which is understood to mean business
     classified by the Reassured as Commercial Money Center Banks, Investment
     Banks, Mutual Funds, Security Dealers/Brokers, Investment Advisors and
     Insurance Companies), Media Professional Liability, Medical Malpractice,
     Hospital Professional Liability, Nursing Home Errors & Omissions, and
     Insurance Agents Errors & Omissions for the following: Marsh, Aon, Willis,
     Arthur J. Gallagher, Jardine Lloyd Thompson, Heath Lambert, Benfield and
     Brown & Brown.

9.   Directors' & Officers' Liability for business classified by the Reassured
     as Commercial Money Center Banks, Investment Banks, Mutual Funds, Security
     Dealers/Brokers, Investment Advisors and publicly traded Insurance
     Companies (which is understood to mean business classified by the Reassured
     as Property/Casualty and Life Insurance Companies but not to business
     classified by the Reassured as Managed Care Organizations) with market
     capitalizations greater than USD1 billion at the inception of the original
     policy/program attaching hereto. Such exclusion shall not apply to business
     classified by the Reassured as Side "A" Directors' & Officers' Liability.

10.  Reps and Warranties, Tax Opinion, and Loss Mitigation Units.

11.  Policies of "All Risks" insurance designed to address blanket liability
     exposures for companies, including "Cat Pro, Super-Cat, FIORI" or other
     Operational Risk policies. It being understood however that the intention
     is to exclude coverage where policies have been issued on a
     "nonconventional" basis by, for example, not including a definition of
     wrongful acts or amending the policy requirement for legal liability. This
     exclusion does not and will not apply to policies of insurance for
     Directors' and Officer's liability, including entity coverage, broad form
     'A'

                                        2

<PAGE>

     side policies, Fiduciary Liability, Employment Practices Liability or
     Managed Care Organizations Errors and Omissions Liability written either on
     a stand alone basis or separately underwritten as part of a blended
     program.

                                    ARTICLE 3

                           COVER, LIMIT AND RETENTION

The Reinsurers shall be liable under this Contract in respect of each and every
loss, each Insured, each policy/program, for the Reassured's Ultimate Net Loss
in excess of USD 2,000,000 each and every loss, each Insured, each
policy/program, subject to a limit of liability to the Reinsurers of up to USD
3,000,000 Ultimate Net Loss each and every loss, each Insured, each
policy/program.

The Reassured shall retain the aforementioned USD 2,000,000 net and unreinsured,
except for internal reinsurance and/or Catastrophe Excess of Loss Reinsurance.

It is understood and agreed that the limits and retentions hereon apply
separately to each original coverage and/or section thereof as applicable,
issued by the Reassured, unless written on a combined, shared limit basis, as
per the original policies.

The meaning of "each and every loss", "claim", "claim made" and "losses
discovered" shall follow the definitions in the policies covered hereunder, as
finally determined by the Reassured. The Reassured shall also be the determinant
of what constitutes "each Insured", "each coverage", "each section" and "each
policy".

Where the Reassured issues more than one policy to the same original insured
covering the same class of business, (such as on a layered basis), then the
combination of such policies shall be considered a program for the purposes
hereof, as reasonably determined by the Reassured.

                                    ARTICLE 4

                                TERRITORIAL SCOPE

This Contract shall cover wherever the original policies cover.

                                    ARTICLE 5

                                     PERIOD

This Contract covers all claims made or losses discovered, as original, on
original policies issued or renewed in respect of the following business
reinsured hereunder for the following periods:

                                        3

<PAGE>

Section I:

In respect of business classified by the Reassured as Directors' & Officers'
Liability, Fiduciary Liability, Employment Practices Liability and Managed Care
Organizations Errors and Omissions Liability, this Contract covers all claims
made or losses discovered, as original, on original policies issued or renewed
during the period January 2nd, 2005 12:01 a.m. Standard Time to April 1st, 2006
12:01 a.m. Standard Time at the place and location of risks insured.

Section II:

In respect of business classified by the Reassured as Insurance Agents Errors
and Omissions Liability, Lawyers Professional Liability and Miscellaneous
Professional Liability, this Contract covers all claims made or losses
discovered, as original, on original policies issued or renewed during the
period January 1st, 2005 12:01 a.m. Standard Time to April 1st, 2006 12:01 a.m.
Standard Time at the place and location of risks insured.

In Respect of Section I and II above:

Maximum original policy period 12 months plus odd time not to exceed 18 months
in all, plus extended reporting period coverage or endorsements, as original.
Such extended reporting period coverage or endorsements shall be limited to 36
months or so deemed, or such longer period as required by State Regulations.
Notwithstanding the foregoing, policies classified by the Reassured as "Run-Off'
may be issued for periods up to 72 months.

For the purposes of this Contract, any extension, discovery period or extended
reporting endorsement attaching to a policy covered hereunder shall be
considered as part of the period of the said policy, subject to the provision
that a separate limit of liability may apply in respect thereof.

Upon expiry of this Contract, policies in force at the effective time and date
of expiration hereof shall continue to be covered hereunder until their
individual natural expiration or termination dates, whichever sooner, including
extensions, discovery periods or other similar extended reporting endorsements
attaching to such policies. The Reassured may however, subject to agreement by
the Reinsurers hereon, terminate the liability of the Reinsurers for claims made
or losses discovered, as original, after the effective time and date of
expiration hereof and, in such event, the unearned premium at that date
applicable to in force policies, including extensions, discovery periods or
other similar extended reporting endorsements attached thereto, shall be
deducted from the Subject Gross Net Written Premium Income for the purpose of
the premium rating hereunder.

                                        4

<PAGE>

                                    ARTICLE 6

                               SPECIAL TERMINATION

A.   Either party may terminate this Contract upon 30 days notice in the event
     that the other party's surplus has been reduced by 30% or more of the
     amount of surplus at December 31st, 2004.

B.   The Reassured may terminate the Reinsurer's participation hereon at any
     time by giving 30 days' prior written notice to the Reinsurer in the event
     that:

     (1)  A State Insurance Department or other legal authority has ordered the
          subscribing Reinsurer to cease writing business; or

     (2)  The subscribing Reinsurer has become insolvent or has been placed into
          liquidation or receivership or proceedings have been instituted
          against the subscribing Reinsurer for the appointment of a receiver,
          liquidator, rehabilitator, conservator or trustee in bankruptcy, or
          other agents known by whatever name, to take possession of its assets
          or control of its operation; or

     (3)  The subscribing Reinsurer has reinsured its entire liability under
          this Contract without the Reassured's prior written consent. However,
          the Reinsurer shall be at liberty to effect catastrophe excess and/or
          aggregate stop loss excess reinsurance; or

     (4)  The subscribing Reinsurer has ceased assuming new and renewal treaty
          reinsurance business; or

     (5)  The subscribing Reinsurer experiences a downgrading in their financial
          strength rating from Standard and Poor's Group below BBB or a
          downgrading in rating from A.M. Best Company below A-.

In the event of such termination, the liability of the Reinsurer shall be
terminated as follows:

Policies in force at the effective time and date of termination of this Contract
shall continue to be covered hereunder until their individual expiration dates,
including extensions, discovery periods or other such similar reporting
endorsements or provisions attached thereto. For rating purposes, the applicable
Subject Gross Net Written Premium Income shall be calculated on policies issued
or renewed from the inception date of this Contract to the effective time and
date of termination of this Contract.

The Reassured may however terminate the liability of the Reinsurer for claims
made or losses discovered, as original, after the effective time and date of
termination of this Contract and, in such event, the unearned premium at the
termination date applicable to in force policies, including extensions,
discovery periods or other similar extended

                                        5

<PAGE>

reporting endorsements or provisions attached thereto, shall be deducted from
the Subject Gross Net Written Premium Income for the purpose of the premium
rating hereunder.

The Reassured shall have the right at the time of termination of this Contract
or at any time following the termination of the Reinsurer, provided the
developed rate at that time is strictly below the Maximum hereon, to commute
losses at their discretionary reserves (which they may deem to be zero for the
purposes hereof). The Reassured will then give Reinsurers a full and final
release of all future liabilities under this Contract. It is understood and
agreed that unearned premium at the termination date applicable to in force
policies, including extensions, discovery periods or other similar extended
reporting endorsements or provisions attached thereto, shall be deducted from
the Subject Gross Net Written Premium Income for the purpose of the premium
rating hereunder.

                                    ARTICLE 7

                                ULTIMATE NET LOSS

The term "Ultimate Net Loss" as used in this Contract shall mean the sum
actually paid or payable by the Reassured in settlement of any losses under its
original policies. In the event that the Reassured's original policies and/or
specific coverage parts of their original policies are issued with loss
adjustment expenses included within the original policy limit, such loss
adjustment expenses shall be included within the Reassured's Ultimate Net Loss
for the purposes of recovery hereunder.

Where the Reassured's original policies and/or specific coverage parts of their
original policies provide for loss adjustment expenses in addition to the
original policy limit, all loss adjustment expenses paid by the Reassured shall
be apportioned in proportion to the respective interests in the loss of the
parties hereto as such interests finally appear in addition to any Ultimate Net
Loss recoverable hereunder. In the event a verdict or judgment is reduced by an
appeal or a settlement, subsequent to the entry of the judgment, resulting in an
ultimate saving on such verdict or judgment, or a judgment is reversed outright,
the expense incurred in securing such final reduction or reversal shall be
pro-rated between the Reinsurers and the Reassured in the proportion that each
benefits from such reduction or reversal; and the expenses incurred up to the
time and date of the original verdict or judgment shall be pro-rated in
proportion to each party's interest in such verdict or judgment.

In the event of external legal or external adjustment expenses, including
outside monitoring counsel expenses, which are incurred by the Reassured in
connection with a claim or potential claim hereunder and which are not the
subject of the Reassured's original policy, then Reinsurers shall also be liable
for their proportion of such expenses as the respective interests in the loss of
the parties hereto finally appear in addition to their share of any Ultimate Net
Loss recoverable hereunder.

The Reinsurers shall also be liable for legal expenses incurred in respect of
coverage questions and legal actions in connection with a claim or potential
claim hereunder

                                        6

<PAGE>

(hereinafter referred to as "declaratory judgment and/or rescission expenses").
It being understood and agreed that:

     l.   When there is no contractual loss, other than declaratory judgment
          and/or rescission expenses, the declaratory judgment and/or rescission
          expenses shall be considered a contractual loss and included within
          the Reassured's Ultimate Net Loss for the purposes of recovery
          hereunder.

     2.   When a contractual loss, exclusive of declaratory judgment and/or
          rescission expenses, is incurred hereunder, the Reinsurers shall be
          liable for their proportionate share of such declaratory judgment
          and/or rescission expenses, as the respective interests in the
          contractual loss of the parties hereto finally appear, up to an
          additional limit of this Contract in addition to any contractual loss
          recoverable hereunder.

For the purposes of this Contract loss adjustment expenses shall include all
expenses of litigation, including post judgment interest, but shall exclude the
salaries of regular employees and all office expenses of the Reassured.

All salvages and recoveries shall first be deducted from such loss to arrive at
the amount of the Reassured's Ultimate Net Loss for the purposes of this
Contract. All salvages, recoveries or payments recovered or received subsequent
to a loss settlement under this Contract shall be applied as if recovered or
received prior to the aforesaid settlement and all necessary adjustments shall
be made by the parties hereto. However, nothing in the foregoing shall be
construed as meaning that losses are not recoverable hereunder until the
Reassured's Ultimate Net Loss has been ascertained.

                                    ARTICLE 8

                                 LOSS RATIO CAP

Notwithstanding any other provision of this Contract, the maximum recoverable
hereon shall not exceed 250% of the final reinsurance premium.

                                    ARTICLE 9

                        EXCESS OF ORIGINAL POLICY LIMITS

This Contract shall protect the Reassured in respect of 90% of any additional
liability incurred by the Reassured as the result of an award in excess of the
original policy limit as more fully defined below. Such excess of original
policy limits coverage shall be up to an additional limit of this Contract and
in addition to any contractual loss recovered hereunder, it being understood the
maximum additional recoverable in respect of specific excess of original policy
limits and extra contractual obligations coverage shall be USD 3,000,000 any one
claim. The Reinsurers agree that the said 90% of the additional liability so
incurred, plus the Reassured's contractual loss, shall be considered as one
combined loss for the purposes of the Reassured's retention.

                                        7

<PAGE>

Awards in excess of the original policy limit are defined as contractual losses
which the Reassured may be legally liable to pay, but in excess of the original
policy limit, such losses in excess of the original policy limit having been
incurred because of, but not limited to, the following: failure by the Reassured
to settle within the original policy limit or by reason of alleged or actual
negligence, fraud or bad faith in rejecting an offer of settlement or in the
preparation of the defense or in the trial of any action against an insured or
in the preparation or prosecution of an appeal consequent upon such action.

The date on which any liability in excess of original policy limits is incurred
by the Reassured shall be deemed, in all circumstances, to be the date the
original claim was made or discovered.

However, this Article shall not apply where such awards in excess of original
policy limit have been incurred due to the fraud of a member of the Board of
Directors or a corporate officer of the Reassured acting individually or
collectively or in collusion with any individual or corporation or any other
organization or party involved in the presentation, defense or settlement of any
claim.

                                   ARTICLE 10

                          EXTRA-CONTRACTUAL OBLIGATIONS

This Contract shall protect the Reassured in respect of 90% of any additional
liability incurred by the Reassured as the result of an award in respect of any
extra-contractual obligation, as more fully defined below. Such extra
contractual obligations coverage shall be up to an additional limit of this
Contract and in addition to any contractual loss recovered hereunder, it being
understood the maximum additional recoverable in respect of specific extra
contractual obligations and excess of original policy limits coverage shall be
USD 3,000,000 any one claim. The Reinsurers agree that the said 90% of the
additional liability so incurred, plus the Reassured's contractual loss, shall
be considered as one combined loss for the purposes of the Reassured's
retention.

"Extra-contractual obligations" are defined as those liabilities not covered
under any other provision of this Contract and which arise from the handling of
any claim on business covered hereunder, such liabilities arising because of,
but not limited to, the following: failure by the Reassured to settle within the
policy limit, or by reason of alleged or actual negligence, fraud or bad faith
in rejecting an offer of settlement or in the preparation of the defense or in
the trial of any action against an insured or in the preparation or prosecution
of an appeal consequent upon such action.

The date on which any extra-contractual obligation is incurred by the Reassured
shall be deemed, in all circumstances, to be the date the original claim was
made or discovered.

Recoveries, collectibles or retentions from any other form of insurance or
reinsurance including deductibles or self-insured retentions that protect the
Company against Extra Contractual Obligations shall inure to the benefit of the
Reinsurers and shall be deducted

                                        8

<PAGE>

from the total amount of Extra Contractual Obligations for purposes of
determining the loss hereunder.

However, this Article shall not apply where such extra-contractual obligations
have been incurred due to the fraud of a member of the Board of Directors or a
corporate officer of the Reassured acting individually or collectively or in
collusion with any individual or corporation or any other organization or party
involved in the presentation, defense or settlement of any claim.

                                   ARTICLE 11

                               NET RETAINED LINES

This Contract applies only to that portion of any insurance covered by this
Contract which the Reassured retains net for its own account and in calculating
the amount of any loss hereunder and also in computing the amount in excess of
which this Contract attaches, only loss or losses in respect of that portion of
any insurance which the Reassured retains net for its own account shall be
included.

It is understood and agreed that the amount of the Reinsurers' liability
hereunder in respect of any loss or losses shall not be increased by reason of
the inability of the Reassured to collect from any other reinsurers, whether
specific or general, any amounts which may have become due from them, whether
such inability arises from the insolvency of such other reinsurers or otherwise.

                                   ARTICLE 12

                                     PREMIUM

In consideration of the liabilities undertaken by the Reinsurers in accordance
with the terms of this Contract, the Reassured shall pay to the Reinsurers their
share of the following premium:

A.   Provisional Premium of USD 29,000,000 payable in five quarterly
     installments in arrears as follows:

<TABLE>
<S>                    <C>
March 31st, 2005       USD 5,800,000
June 30th, 2005        USD 5,800,000
September 30th, 2005   USD 5,800,000
December 31st, 2005    USD 5,800,000
March 31st, 2006       USD 5,800,000
</TABLE>

B.   Within 60 days of expiry of this Contract, the Reassured shall render a
     statement of its Subject Gross Net Written Premium Income (as defined
     below) and the Reassured shall pay, or be paid by the Reinsurers, the
     difference between the Deposit Premium and a premium determined by applying
     a provisional rate of 28.0% to the Reassured's Subject Gross Net Written
     Premium Income.

                                        9

<PAGE>

C.   Twelve (12) months after the expiry of this Contract and annually
     thereafter until all losses are finally settled or commuted, the premium
     hereunder shall be adjusted at a rate equivalent to 107.5% of the Case
     Incurred Loss Cost plus a minimum rate of 9.5% applied to the Reassured's
     Subject Gross Net Written Premium Income. In no event, however, shall the
     premium developed exceed a maximum rate equal to 45.0% of the Reassured's
     Subject Gross Net Written Premium Income (hereinafter referred to as the
     "experience adjustment").

D.   Notwithstanding the foregoing, it is agreed that the first downward
     experience adjustment of premium shall not be made until 36 months after
     the expiry of this Contract.

E.   In the event that Reinsurers are placed in a negative cash position
     (Premiums paid by the Reassured less paid losses) prior to April 1st, 2007,
     the Reassured shall produce an experience adjustment account as set out in
     C. above and shall settle funds due within 60 days of such account.

F.   For the purposes of this Contract, the Reassured's Subject Gross Net
     Written Premium Income shall be defined as the written premium charged by
     the Reassured in respect of the first USD 5,000,000 of original per claim
     policy or program limits (or so deemed) for business covered hereunder,
     less cancellations, return premiums, and premiums paid for inuring
     reinsurance.

G.   For the purposes of this Contract, under LOSS AND UNEARNED PREMIUM RESERVES
     the Reassured's Subject Gross Net Earned Premium Income shall be defined as
     the expired portion of written premium charged by the Reassured in respect
     of the first USD 5,000,000 of original per claim policy or program limits
     (or so deemed) for business covered hereunder, less cancellations, return
     premiums, and premiums paid for inuring reinsurance as calculated by the
     Reassured.

H.   For the purpose of this Contract, Case Incurred Loss Cost means the
     Reassured's paid and outstanding indemnity, defense and allocated loss
     adjustment expenses recovered or recoverable hereunder on losses applicable
     to this Contract.

                                   ARTICLE 13

                               PREMIUM LIMITATION

The maximum Original Gross Net Written Premium Income accepted by the Reassured
for classes of business subject to this Contract (up to original limits of USD
10,000,000) shall not exceed USD 160,000,000 in all for the Contract Period with
Managed Care Errors and Omissions business not to contribute more than USD
40,000,000 of the total.

In the event the Reassured determines that the applicable Premium Limitation may
be exceeded, then the Reassured shall advise the Reinsurers and the Reinsurers
shall individually have the option to increase the Premium Limitation specific
to their participation in this Contract. Should any individual Reinsurer decline
the option to

                                       10

<PAGE>

increase the Premium Limitation, the Reassured shall retain net the declining
Reinsurer's share of all business exceeding the Premium Limitation specified at
the outset of this Contract.

For the purpose of this Contract, the term "Original Gross Net Written Premium
Income" shall mean the applicable gross written premium for policies/programs
the subject of this Contract less returns and cancellations and less premiums
paid for inuring reinsurance.

                                   ARTICLE 14

                                     REPORTS

A bordereaux of risks to be rendered by the Reassured within 45 days from end of
each calendar quarter. The bordereaux shall contain the following information:
policy number, insured name, premium, policy limit, policy term, SIR/attachment
point, class of business, and market capitalization for publicly traded D&O
accounts only at the time the risk is written as determined by the Reassured.

                                   ARTICLE 15

                       NOTICE OF LOSS AND LOSS SETTLEMENTS

A paid and outstanding loss bordereaux for all claims with incurred amounts
(indemnity, defense and expense combined), established by the Reassured of USD
1,000,000 or more shall be rendered by the Reassured within 45 days of the end
of each calendar quarter, being within 45 days of March 31st, 2005 and quarterly
thereafter.

It is understood and agreed, both by the Reassured and Reinsurers, that all paid
and outstanding losses shall be advised to Reinsurers solely by quarterly
bordereaux and that no individual loss reports are to be provided unless
specifically requested by Reinsurers.

The bordereaux shall solely comprise numerical details of the paid and
outstanding amounts of each loss together with other data to identify the claim,
all as shown on the example bordereaux format(s) attached hereto as Appendix A
to this Contract and which have been mutually agreed by the Reassured and
Reinsurers. It is clearly understood and agreed that such bordereaux shall not
provide any other details of the claim and that there shall be no requirement to
provide assessment of potential liability or other evaluations of each claim.

The Reinsurers agree to abide by all loss settlements of the Reassured which at
its sole discretion shall adjust, settle or compromise all losses and all such
adjustments, settlements or compromises shall be binding upon the Reinsurers
subject to the terms, conditions and limitations of the original policies and
this Contract.

The Reinsurers agree to settle their share of such loss payments within 45 days
of receipt of the quarterly bordereaux; the bordereaux being the sole billing
documentation necessary to effect settlements from Reinsurers.

                                       11

<PAGE>

It is understood and agreed that requests for individual loss reports by
Reinsurers hereon shall not delay their payment of a claim once billing of the
claim has been presented by the Reassured to Reinsurers. In addition, responses
to requests for individual loss reports shall not be delayed or withheld by the
Reassured.

Notwithstanding such quarterly bordereaux settlements, the Reassured may request
an immediate cash loss settlement from the Reinsurers in the event that the
amount due from the Reinsurers in respect of an individual claim is USD
1,000,000 or more. Such cash loss billings shall be made solely utilizing the
same format as the quarterly bordereaux collections.

                                   ARTICLE 16

                                INTEREST PENALTY

The interest amounts provided for in this Article will apply to the Reinsurer or
to the Reassured in the following circumstances:

1.   Loss payment owed by the Reinsurer to the Reassured shall have a due date
     to the Reassured of 45 calendar days following the date of tine Reinsurer's
     receipt of the billing, but no later than 90 days from the Reassured's date
     of the billing.

2.   Payment of any premium installments shall be due to the Reinsurer within 30
     calendar days of the date specified in this Contract. Any premium
     adjustments will be due by the debtor party within 60 calendar days of the
     date specified in this Contract.

3.   Payment of return premiums, commissions, profit sharing, or any other
     amounts not provided in paragraphs 1 or 2 above, shall be due by the debtor
     party within 60 calendar days of the due date specified in this Contract.
     If no due date is specified, the due date shall be 60 days following the
     date of the debtor party's receipt of the billing, but no later than 90
     days from the creditor party's date of the billing.

4.   Failure by the Reinsurer or Reassured to comply with their respective
     payment obligations within the time periods as herein provided will result
     in a compound interest penalty payable at a rate equal to the 90 day
     Treasury Bill rate as published in the Money Rate Section or any successor
     section of the Wall Street Journal on the first business day following the
     date a remittance becomes due, plus 2% per annum, to be compounded and
     adjusted quarterly. Any interest which occurs pursuant to this Article
     shall be calculated by the party to which it is owed. The accumulation of
     the number of days that any payment is past due will stop on the date the
     Intermediary, where applicable, receives payment.

5.   The validity of any claim or payment may be contested under the provisions
     of this Contract. If the debtor party prevails in such action, there shall
     be no interest penalty due. Otherwise, any interest will be calculated and
     due as outlined above.

                                       12

<PAGE>

6.   If a Reinsurer advances payment of any claim it is contesting, and prevails
     such action, the Reassured shall return such payment plus pay interest on
     same, calculated as per the provisions of this Article.

7.   Any interest which occurs pursuant to this Article may be waived by the
     party to which it is owed. Further, any interest which is calculated
     pursuant to this Article that is USD 100 or less shall be waived. Waiver of
     such interest, however, shall not affect the waiving party's right to
     similar interest for any other failure by the other party to make payment
     when due under this Article.

8.   Nothing in this Article shall diminish any legal remedies which either
     party may have against the other.

                                   ARTICLE 17

                       LOSS AND UNEARNED PREMIUM RESERVES

This Article applies only to those Reinsurers signatory hereto who do not
qualify for credit under the regulations of the State insurance authorities or
departments which have jurisdiction over the Reassured's reserves.

The Reassured agrees that when, for its Annual Convention Statement purposes, it
files with the authorities or departments mentioned above or sets tip in its
books statutory reserves for known outstanding losses and allocated loss
expenses reinsured by this Contract, for unearned premium in respect of business
coming within the scope of this Contract, or for incurred but not reported
losses (IBNR), hereinafter "The Stated Reserves", it shall forward to the
Reinsurers a clear statement of the Reinsurers' proportion of The Stated
Reserves detailing separately the amounts involved for known outstanding losses
and allocated loss expenses and for unearned premium and IBNR, and also how
those amounts are calculated.

The Reinsurers, promptly upon receipt of the Reassured's statement, shall apply
for, and secure delivery to the Reassured of, clean irrevocable and
unconditional Letters of Credit or such equivalent funding acceptable to the
Reassured, for the benefit of the Reassured in amounts equal to their proportion
of The Stated Reserves.

Reserves for IBNR shall be equal to the lesser of the actual amount of IBNR
carried on the books of the Reassured for statutory reporting purposes or 45% of
Subject Gross Net Earned Premium Income less known and reported losses hereon.
In the event that the Provisional Premium adjustment and/or experience
adjustment calculation hereon results in a reduced level of collateral funding
hereunder, the Reassured agrees to return such excess collateral to Reinsurers
within 90 days of the date the adjustment is made.

All Letters of Credit procured pursuant to this Contract shall be issued by a
Bank which is a Member of the Federal Reserve and acceptable to the authorities
or departments mentioned in the first paragraph of this Article current at the
date of the Reassured's statement. Such Letter of Credit shall be in full
conformity with the requirements of such authorities or departments.

                                       13

<PAGE>

Further, all such Letters of Credit shall be "Evergreen" in that they shall be
issued for an initial period of not less than one year and shall be
automatically extended for one year from their original expiration dates and
subsequently from their extended expiration dates unless and until, at least
thirty days before any expiration date, the issuing bank gives notice to the
Reassured by registered mail that the issuing bank elects not to extend the life
of the Letter of Credit in question beyond its forthcoming expiration date.

In consideration of the contract of the Reinsurers to furnish such Letters of
Credit to the Reassured to enable it to obtain credit for the reinsurance
provided under this Contract, the Reassured hereby undertakes to hold such
Letters of Credit and the proceeds of any drawings made upon them in trust for
the Reinsurers and to use and apply the proceeds of any such drawings for the
following purposes only:

a.   To pay the Reinsurers' share or to reimburse the Reassured for that share
     of any liability for loss or allocated loss expense reinsured by this
     Contract or for unearned premium in respect of business coming within the
     scope of this Contract;

b.   To refund to the Reinsurers any balance by which the amount of the Letter
     of Credit exceeds the Reinsurers' proportion of any liability for loss or
     allocated loss expense reinsured by this Contract, incurred but not
     reported losses (IBNR) or for unearned premium in respect of business
     coming within the scope of this Contract.

c.   In the event that one or more of the Reinsurers participating in the Letter
     of Credit gives timely notice of cancellation or non-renewal of their
     participation in the Letter of Credit and provided that the obligations
     secured by the Letter of Credit remain unliquidated and undischarged at the
     time of receipt by the Reassured of such notice, the Reassured shall create
     a cash deposit account, separate from its own assets, in an amount equal to
     the participation of the canceling or non-renewing Reinsurer(s) in the
     Letter of Credit. That cash deposit account may then be used as in
     subparagraphs a. and b. above. It is understood and agreed that this
     procedure may only be implemented before the expiry of the notice period in
     respect of cancellation or non-renewal and that if it is implemented, the
     Reassured will ensure that a rate of interest is obtained for the
     Reinsurers on such a deposit account that is at least equal to the rate
     which would be paid by Citibank N.A. in New York, and further that the
     Reassured will account to the Reinsurers on an annual basis for all
     interest accruing on the cash deposit account for the benefit of the
     Reinsurers.

The issuing bank shall have no responsibility whatsoever in connection with the
propriety of drawings made by the Reassured on the Letters of Credit issued
under this Contract or in connection with the disposition of any funds so
withdrawn, except to ensure that drawings are made only upon the order of
properly authorized representatives of the Reassured.

                                       14

<PAGE>

All Letters of Credit procured for the Reassured under this Contract shall be
adjusted at annual intervals, or more frequently as agreed (but never more
frequently than quarterly), to reflect the current balance of the Reinsurers'
proportion of the Reassured's known outstanding loss and allocated loss expense
reserves and unearned premium reserves, and the Reassured shall produce a
statement for this purpose detailed in the same way as the original statement on
the basis of which such Letters of Credit were first issued. If the statement
shows that the Reinsurers' proportion of such losses and allocated expenses,
IBNR or unearned premium reserves exceeds the current amount of the Letters of
Credit, the Reinsurers shall, within thirty days after receipt of the statement,
secure the amendment of the Letters of Credit increasing their amount to the
amount of the current balance of these items. If, however, the statement shows
that the Reinsurers' proportion of the current balance of those items is less
than the amount of the Letters of Credit the Reassured shall, within thirty days
of receipt of a written request from the Reinsurers to do so, facilitate the
release of the excessive security by authorizing the amendment of the Letters of
Credit so as to reduce their amount to the current balance required.

All expenses incurred in the establishment or maintenance of such Letters of
Credit shall be paid by the Reinsurers.

                                   ARTICLE 18

                                   COMMUTATION

One year after the expiry of this Contract, or at any time thereafter, the
Reassured may, at its option, commute all losses Outstanding under this
Contract.

The Reinsurers agree to accept the Reassured's discretionary reserves, (which
the Reassured may deem to be zero for the purpose of commutation), at the time
of commutation in consideration of which premiums shall be immediately adjusted,
and in consideration of which the Reinsurers shall be given a full and final
release of all future liability in respect of this Contract.

The option to commute may only be exercised by the Reassured provided that the
adjusted rate produced by using the Reassured's discretionary reserves at the
time of commutation in the experience adjustment calculation is less than the
maximum rate.

                                   ARTICLE 19

                                    CURRENCY

The currency to be used for all purposes of this Contract shall be United States
Dollars. All amounts paid or received by the Reassured in any other currency
shall be converted into United States Dollars at the rates of exchange at which
such transactions are converted in the books of the Reassured.

                                       15

<PAGE>

                                   ARTICLE 20

                                 TAX PROVISIONS

The Reassured shall be liable for all taxes (except Federal Excise Tax) levied
on it with respect to premiums payable to the Reinsurers hereunder. Federal
Excise Tax applies only to those Reinsurers, excepting Underwriters at Lloyd's,
London and other Reinsurers exempt from the Federal Excise Tax, who are
domiciled outside the United States of America.

To the extent that such premium is subject to Federal Excise Tax, the Reinsurers
hereby agree to allow as a deduction from the premium, for the purpose of paying
Federal Excise Tax, all applicable percentages of the premium payable hereon.

In the event of any return premium becoming due hereunder the Reinsurers will
deduct all applicable percentages from the amount of the return, and the
Reassured or its agents shall take steps to recover the tax from the Government
of the United States of America.

In consideration of the terms under which this Contract is issued, the Reassured
undertakes not to claim any deduction in respect of premium payable hereon when
making tax returns, other than Income or Profits tax returns, to any fiscal
authority of the United States of America or any State or Territory thereof.

                                   ARTICLE 21

                           INSOLVENCY OF THE REASSURED

Amounts due to the Reassured under this Contract shall be payable by the
Reinsurers on the basis of the liability of the Reassured under the original
policies reinsured hereunder without diminution because of the insolvency of any
one or all of the Reassured Companies.

In the event of the insolvency of the Reassured, the Liquidator or Receiver or
Statutory Successor of the Reassured shall give written notice to the Reinsurers
of the pendency of any claim against the insolvent Reassured on the original
policies reinsured hereunder within a reasonable time after such claim is filed
in the insolvency proceedings. During the pendency of such claim the Reinsurers
may investigate such claim and intervene, at their own expense, in the
proceedings where such claim is to be adjudicated and interpose any defense or
defenses which they may deem available to the Reassured or its Liquidator or
Receiver or Statutory Successor. The expense thus incurred by the Reinsurers
shall be chargeable, subject to court approval, against the insolvent Reassured
as part of the expense of liquidation to the extent of a proportionate share of
the benefit which may accrue to the Reassured solely as a result of the defense
so undertaken by the Reinsurers.

When two or more Reinsurers are involved in the same claim and a majority in
interest elect to investigate the claim and/or to interpose defense to such
claim, the expense shall

                                       16

<PAGE>

be apportioned in accordance with the terms of the above paragraph as though
such expense had been incurred by the Reassured.

Should the Reassured go into liquidation or should a receiver be appointed, the
Reinsurers shall be entitled to deduct from any sums which may be or may become
due to the Reassured under this Contract any sums which are due to the
Reinsurers from the Reassured under this Contract and which are payable at a
fixed or stated date, as well as any other sums due to the Reinsurers which are
permitted to be offset tinder applicable law.

In the event of the insolvency of the Reassured, the amounts due to the
Reassured under this Contract shall be payable by the Reinsurers directly to the
Reassured or to its Liquidator, Receiver or Statutory Successor.

It is the mutual intent of the parties that, in the event of the insolvency of
the Reassured, this Article shall be read to conform with the state or
regulatory requirements of the jurisdiction in which the liquidation or
receivership is conducted. In the event that any provision of this Article is in
conflict with such state or regulatory requirements, then such provision shall
be reformed to be in compliance with such state or regulatory requirements.

                                   ARTICLE 22

                                     OFFSET

Each party hereto shall have, and may exercise in the event of insolvency of the
other or the non-payment by the other of obligations when due hereunder, the
right to offset any balance or balances whether on account of premiums,
commissions, claims or losses, adjustment expenses, salvage or any amount due
from that party to the other party hereto under this Contract only against any
balance or balances due or to become due to the offsetting party from the other
party tinder this Contract only. The terms of this Article shall apply
separately to this Contract and to each successive renewal of this Contract.

                                   ARTICLE 23

                          DELAYS, ERRORS AND OMISSIONS

No inadvertent delay, error or omission shall be held to relieve either party
hereto of any liability which would have attached to them under this Contract if
such delay, error or omission had not been made, provided that rectification is
made immediately upon discovery.

                                   ARTICLE 24

                           AMENDMENTS AND ALTERATIONS

The terms herein contained comprise the whole Contract between the Reassured and
the Reinsurers and may only be changed in writing, signed by or on behalf of
both parties.

                                       17

<PAGE>

                                   ARTICLE 25

                       ACCESS TO RECORDS AND CLAIMS REVIEW

All documents and records in the possession of the Reassured concerning this
Contract shall be made available upon reasonable notice at the request of the
Reinsurers for inspection at the Reassured's offices by the Reinsurers or their
nominated representatives for the purposes of obtaining information concerning
this Contract or the subject matter hereof.

Specifically, the Reinsurers shall be entitled to nominate a representative to
assess the Reassured's claims and claims procedures.

For the avoidance of doubt, it is hereby expressly agreed that the rights given
to the Reinsurers by this Article shall continue in effect notwithstanding the
expiration of this Contract and shall be exercised at the Reinsurers' own
expense.

                                   ARTICLE 26

                                   ARBITRATION

As a condition precedent to any right of action hereunder, all disputes or
differences arising out of or connected with this Contract (whether or not
arising before or after expiration) its interpretation or implementation, shall
be referred to arbitration in Farmington, Connecticut, U.S.A., the city in which
the Reassured's principal office is located.

Arbitration shall be initiated by the delivery of a written notice of demand for
arbitration by one party to the other within a reasonable time after the dispute
has arisen stating the nature of the dispute and the remedy sought. Those
Reinsurers involved in the dispute or other matter in controversy shall be
considered as one party for the purpose of allocating the cost of the
arbitration.

Each party shall appoint an individual as arbitrator and the two so appointed
shall then appoint a third arbitrator. If either party refuses or neglects to
appoint an arbitrator within sixty (60) days, the other party may appoint the
second arbitrator. If the two arbitrators do not agree on a third arbitrator
within sixty (60) days of their appointment, within ten (10) days thereafter the
two arbitrators will request the American Arbitration Association ("AAA") to
appoint a third arbitrator with the qualifications set forth below in this
Article without regard to the AAA's Commercial Arbitration Rules. If the AAA
fails to appoint a third arbitrator within thirty (30) days after its receipt of
the two arbitrators' request, either party may apply to a court of competent
jurisdiction to appoint a third arbitrator with the qualifications set forth
below in this Article. The third arbitrator will immediately notify each party
of his selection. In the event of the resignation or death of any member of the
arbitrator panel, a replacement will be appointed in the same manner as the
resigning or deceased member was appointed.

                                       18

<PAGE>

Each arbitrator shall be an active or retired officer of an insurance or
reinsurance company or Underwriter at Lloyd's London; no arbitrator shall have a
personal or financial interest in the result of the arbitration, and shall not
be a present or former officer, attorney, or consultant of the Reassured or the
Reinsurer or either's affiliates.

The arbitrators shall interpret this Contract as an honorable engagement and not
as merely a legal obligation; they are relieved of all judicial formalities and
may abstain from following the strict rules of law, and shall make any award
with a view to effecting the general purpose of this Contract in a reasonable
manner with due regard to the custom and usage of the insurance and reinsurance
business.

The arbitrators shall have full discretion to make such orders as they think fit
in connection with all procedural matters in the Arbitration, including but not
limited to the conduct of the reference by written or oral submissions, the
production of documents, the examination of witnesses, and the imposition of
time limits for the taking of necessary procedural steps. The arbitrators shall
also have full discretion to make such orders as they think fit with regard to
the payment of the costs of the Arbitration including attorneys' costs and fees.

If more than one Reinsurer is involved in the same dispute, all such Reinsurers
shall constitute and act as one party for purposes of this Article and
communications shall be made by the Reassured to each of the Reinsurers
constituting the one party, provided that nothing herein shall impair the rights
of such Reinsurers to assert several, rather than joint, defenses or claims, nor
be construed as changing the liability of the Reinsurers under the terms of this
Contract from several to joint.

Any Award or order of the arbitrators or a majority thereof shall be binding on
the parties and there shall be no right of appeal there from. For the purpose of
enforcement of any Award, an action may be brought in any Court of competent
jurisdiction.

Except as provided above, arbitration shall be based, insofar as applicable,
upon the procedures of the American Arbitration Association.

                                   ARTICLE 27

                                 SERVICE OF SUIT

This Article applies only to those Reinsurers signatory hereto who are domiciled
outside the United States of America or, should the Reassured be authorized to
do business in the State of New York, those Reinsurers who are unauthorized in
New York as respects suits instituted in New York.

It is agreed that in the event of the failure of the Reinsurer to pay any amount
awarded by the arbitration tribunal referred to in the Arbitration Clause
herein, the Reinsurers hereon, at the request of the Reassured, will submit to
the jurisdiction of a court of competent jurisdiction within the United States.
Nothing in this Article constitutes or should be understood to constitute a
waiver of Reinsurers' rights to commence an action in any court of competent
jurisdiction in the United States, to remove an action to a United

                                       19

<PAGE>

States District Court, or to seek a transfer of a case to another court as
permitted by the laws of the United States or of any state in the United States.
It is further agreed that service of process in such suit may be made upon
Mendes & Mount, 750 Seventh Avenue, New York, New York 10019, and that in any
suit instituted against any one of them upon this Contract, Reinsurers will
abide by the final decision of such court or of any appellate court in the event
of an appeal.

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

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

                                   ARTICLE 28

                                 CONFIDENTIALITY

The confidential nature of this Contract is acknowledged by all parties.
Moreover, the Reinsurers will only disclose to third patties, such as
regulators, auditors, rating agencies, shareholders, reinsurers and the like,
such details of this Contract as are necessary to comply with their obligations
to such third parties as part of their normal business practice.

It is a condition binding on Reinsurers hereon that they may not disclose any
details of this Contract at any time to any other third party without the
agreement of the Reassured.

                                   ARTICLE 29

                              REGULATORY COMPLIANCE

If any provision of this Contract shall be rendered illegal or unenforceable by
the laws, regulations or public policy of any State in the United States, such
provision shall be considered void in such State, but this shall not affect the
validity or enforceability of any other provision of this Contract, or the
validity or enforceability of such provision in any other jurisdiction.

                                       20

<PAGE>

                                   ARTICLE 30

                                  INTERMEDIARY

Carvill America Incorporated is hereby recognized as the Intermediary
negotiating this Contract for all business hereunder. All communications
including notices, premiums, return premiums, commissions, taxes, losses, loss
adjustment expenses, salvages and loss settlements relating thereto shall be
transmitted to the Reinsurer or the Reassured through Carvill America
Incorporated at The Pinnacle, 3455 Peachtree Road, N.E., Suite 375, Atlanta
Georgia 30326. Payments by the Reassured to the Intermediary will be deemed to
constitute payment to the Reinsurer. Payments by the Reinsurer to the
Intermediary will be deemed only to constitute payment to the Reassured to the
extent that such payments are actually received by the Reassured.

                                   ARTICLE 31

                                  GOVERNING LAW

This Contract shall be governed by and construed in accordance with the laws of
the State of Connecticut.

                                   ARTICLE 32

                                  PARTICIPATION

This Contract obligates each of the Reinsurers for their proportion of the
interests and liabilities set forth under this Contract, such proportions being
shown in the attached Schedule(s).

                                   ARTICLE 33

                            SEVERAL LIABILITY NOTICE

The subscribing Reinsurers' obligations under contracts of reinsurance to which
they subscribe are several and not joint and are limited solely to the extent of
their individual subscriptions. The subscribing Reinsurers are not responsible
for the subscription of any co-subscribing Reinsurer who for any reason does not
satisfy all or part of its obligations.

IN WITNESS WHEREOF the parties hereto have, by their duly authorized
representative, executed this Contract as follows:

Signed in Farmington, Connecticut, this 15th day of March 2005.

                                       21

<PAGE>

For and on behalf of the Reassured:

Signed by: /s/ Stephen J. Sills
           --------------------------
Officer title:
               ----------------------
Print Name: Stephen J. Sills
            -------------------------

And for the Reinsurer(s) by means of and in accordance with the attached
Schedule(s), which shall be considered to form an integral part of this
Contract.

                                       22

<PAGE>

        NUCLEAR INCIDENT EXCLUSION CLAUSE-LIABILITY-REINSURANCE (U.S.A.)

(1)  This reinsurance does not cover any loss or liability accruing to the
     Reassured as a member of, or subscriber to, any association of insurers or
     reinsurers formed for the purpose of covering nuclear energy risks or as a
     direct or indirect reinsurer of any such member, subscriber or association.

(2)  Without in any way restricting the operation of paragraph (1) of this
     Clause it is understood and agreed that for all purposes of this
     reinsurance all the original policies of the Reassured (new, renewal and
     replacement) of the classes specified in Clause II of this paragraph (2)
     from the time specified in Clause III in this paragraph (2) shall be deemed
     to include the following provision (specified as the Limited Exclusion
     Provision).

     LIMITED EXCLUSION PROVISION:

     I.   It is agreed that the policy does not apply under any liability
          coverage, to: injury, sickness, disease, death or destruction bodily
          injury or property damage

          with respect to which an insured under the policy is also an insured
          under a nuclear energy liability policy issued by Nuclear Energy
          Liability Insurance Association, Mutual Atomic Energy Liability
          Underwriters or Nuclear Insurance Association of Canada, or would be
          an insured under any such policy but for its termination upon
          exhaustion of its limit of liability.

     II.  Family Automobile Policies (liability only), Special Automobile
          Policies (private passenger automobiles, liability only), Farmers
          Comprehensive Personal Liability Policies (liability only),
          Comprehensive Personal Liability Policies (liability only) or policies
          of a similar nature; and the liability portion of combination forms
          related to the four classes of policies stated above, such as the
          Comprehensive Dwelling Policy and the applicable types of Homeowners
          Policies.

     III. The inception dates and thereafter of all original policies as
          described in II above, whether new, renewal or replacement, being
          policies which either

          (a)  become effective on or after 1st May, 1960, or

          (b)  become effective before that date and contain the Limited
               Exclusion Provision set out above;

               provided this paragraph (2) shall not be applicable to Family
               Automobile Policies, Special Automobile Policies, or policies or
               combination policies of a similar nature, issued by the Reassured
               on New York risks, until 90

                                       23

<PAGE>

               days following approval of the Limited Exclusion Provision by the
               Governmental Authority having jurisdiction thereof.

(3)  Except for those classes of policies specified in Clause II of paragraph
     (2) and without in any way restricting the operation of paragraph (1) of
     this Clause, it is understood and agreed that for all purposes of this
     reinsurance the original liability policies of the Reassured (new, renewal
     and replacement) affording the following coverages:

               Owners, Landlords and Tenants Liability, Contractual Liability,
               Elevator Liability, Owners or Contractors (including railroad)
               Protective Liability, Manufacturers and Contractors Liability,
               Product Liability, Professional and Malpractice Liability,
               Storekeepers Liability, Garage Liability, Automobile Liability
               (including Massachusetts Motor Vehicle or Garage Liability)

     shall be deemed to include, with respect to such coverages, from the time
     specified in Clause V of this paragraph (3), the following provision
     (specified as the Broad Exclusion Provision):

BROAD EXCLUSION PROVISION.*

It is agreed that the policy does not apply:

I.   Under any Liability Coverage, to injury, sickness, disease, death or
     destruction bodily injury or property damage

(a)  with respect to which an insured under the policy is also an insured under
     a nuclear energy liability policy issued by Nuclear Energy Liability
     Insurance Association, Mutual Atomic Energy Liability Underwriters or
     Nuclear Insurance Association of Canada, or would be an insured under any
     such policy but for its termination upon exhaustion of its limit of
     liability;

     or

(b)  resulting from the hazardous properties of nuclear material and with
     respect to which (1) any person or organization is required to maintain
     financial protection pursuant to the Atomic Energy Act of 1954, or any law
     amendatory thereof, or (2) the insured is, or had this policy not been
     issued would be, entitled to indemnity from the United States of America,
     or any agency thereof, under any agreement entered into by the United
     States of America, or any agency thereof, with any person or organization.

II.  Under any Medical Payments Coverage, or under any Supplementary Payments
     Provision relating to immediate medical or surgical relief first aid, to
     expenses incurred with respect to bodily injury, sickness, disease or death
     bodily injury

                                       24

<PAGE>

     resulting from the hazardous properties of nuclear material and arising out
     of the operation of a nuclear facility by any person or organization.

III. Under any Liability Coverage, to injury, sickness, disease, death or
     destruction bodily injury or property damage resulting from the hazardous
     properties of nuclear material, if

(a)  the nuclear material (1) is at any nuclear facility owned by, or operated
     by or on behalf of, an insured or (2) has been discharged or dispersed
     therefrom;

(b)  the nuclear material is contained in spent fuel or waste at any time
     possessed, handled, used, processed, stored, transported or disposed of by
     or on behalf of an insured; or

(c)  the injury, sickness, disease, death or destruction bodily injury or
     property damage arises out of the furnishing by an insured of services,
     materials, parts or equipment in connection with the planning,
     construction, maintenance, operation or use of any nuclear facility, but if
     such facility is located within the United States of America, its
     territories, or possessions or Canada, this exclusion (c) applies only to
     injury to or destruction of property at such nuclear facility, property
     damage to such nuclear facility and any property thereat.

IV.  As used in this endorsement:

"HAZARDOUS PROPERTIES" include, radioactive, toxic or explosive properties;
"NUCLEAR MATERIAL" means source material, special nuclear material or byproduct
material; "SOURCE MATERIAL", "SPECIAL NUCLEAR MATERIAL", and "BYPRODUCT
MATERIAL" have the meanings given them in the Atomic Energy Act of 1954 or in
any law amendatory thereof; "SPENT FUEL" means any fuel element or fuel
component, solid or liquid, which has been used or exposed to radiation in a
nuclear reactor; "WASTE" means any waste material (1) containing by product
material and (2) resulting from the operation by any person or organization of
any nuclear facility included within the definition of nuclear facility under
paragraph (a) or (b) thereof; "NUCLEAR FACILITY" means

(a)  any nuclear reactor,

(b)  any equipment or device designed or used for (1) separating the isotopes of
     uranium or plutonium, (2) processing or utilizing spent fuel, or (3)
     handling, processing or packaging waste,

(c)  any equipment or device used for the processing, fabricating or alloying of
     special nuclear material if at any time the total amount of such material
     in the custody of the insured at the premises where such equipment or
     device is located consists of or contains more than 25 grams of plutonium
     or uranium 233 or any combination thereof, or more than 250 grams of
     uranium 235,

                                       25

<PAGE>

(d)  any structure, basin, excavation, premises or place prepared or used for
     the storage or disposal of waste,

and includes the site on which any of the foregoing is located, all operations
conducted on such site and all premises used for such operations; "NUCLEAR
REACTOR" means any apparatus designed or used to sustain nuclear fission in a
self-supporting chain reaction or to contain a critical mass of fissionable
material;

     With respect to injury to or destruction of property, the word "injury" or
     "destruction", "property damage" includes all forms of radioactive
     contamination of property, includes all forms of radioactive contamination
     of property.

V.   The inception dates and thereafter of all original policies affording
     coverages specified in this paragraph (3), whether new, renewal or
     replacement, being policies which become effective on or after 1st May,
     1960, provided this paragraph (3) shall not be applicable to

     (i)  Garage and Automobile Policies issued by the Reassured on New York
          risks, or

     (ii) statutory liability insurance required under Chapter 90, General Laws
          of Massachusetts,

     until 90 days following approval of the Broad Exclusion Provision by the
     Governmental Authority having jurisdiction thereof

(4)  Without in any way restricting the operation of paragraph (1) of this
     Clause, it is understood and agreed that paragraphs (2) and (3) above are
     not applicable to original liability policies of the Reassured in Canada
     and that with respect to such policies this Clause shall be deemed to
     include the Nuclear Energy Liability Exclusion Provisions adopted by the
     Canadian Underwriters' Association or the Independent Insurance Conference
     of Canada.

*NOTE. The words printed in italics in the Limited Exclusion Provision and in
       the Broad Exclusion Provision shall apply only in relation to original
       liability policies which include a Limited Exclusion Provision or a Broad
       Exclusion Provision containing those words.

21/9/67
N.M.A. 1590

                                       26

<PAGE>

         NUCLEAR INCIDENT EXCLUSION CLAUSE-LIABILITY-REINSURANCE-CANADA

l.   This Agreement does not cover any loss or liability accruing to the
     Reinsured as a member of, or subscriber to, any association of insurers or
     reinsurers formed for the purpose of covering nuclear energy risks or as a
     direct or indirect reinsurer of any such member, subscriber or association.

2.   Without in any way restricting the operation of paragraph I of this clause
     it is agreed that for all purposes of this Agreement all the original
     liability contracts of the Reinsured, whether new, renewal or replacement,
     of the following classes, namely,

     Personal Liability.
     Farmers' Liability.
     Storekeepers' Liability.

     which become effective on or after 31st December 1992, shall be deemed to
     include, from their inception dates and thereafter, the following
     provision:

     Limited Exclusion Provision.

     This Policy does not apply to bodily injury or property damage with respect
     to which the Insured is also insured under a contract of nuclear energy
     liability insurance (whether the Insured is unnamed in such contract and
     whether or not it is legally enforceable by the Insured) issued by the
     Nuclear Insurance Association of Canada or any other group or pool of
     insurers or would be an Insured under any such policy but for its
     termination upon exhaustion of its limits of liability.

     With respect to property, loss of such property shall be deemed to be
     property damage.

3.   Without in any way restricting the operation of paragraph I of this clause
     it is agreed that for all purposes of this Agreement all the original
     liability contracts of the Reinsured, whether new, renewal or replacement,
     of any class whatsoever (other than Personal Liability, Farmers' Liability,
     Storekeepers' Liability or Automobile Liability contracts), which become
     effective on or after 31st December 1992, shall be deemed to include from
     their inception dates and thereafter, the following provision:

     Broad Exclusion Provision.

     It is agreed that this Policy does not apply:

     (a)  to liability imposed by or arising from any nuclear liability act, law
          or statute or any law amendatory thereof; nor

                                       27

<PAGE>

     (b)  to bodily injury or property damage with respect to which an Insured
          under this policy is also insured under a contract of nuclear energy
          liability insurance (whether the Insured is unnamed in such contract
          and whether or not it is legally enforceable by the Insured) issued by
          the Nuclear Insurance Association of Canada or any other insurer or
          group or pool of insurers or would be an Insured under any such policy
          but for its termination upon exhaustion of its limit or liability; nor

     (c)  to bodily injury or property damage resulting directly or indirectly
          front the nuclear energy hazard arising from:

          (i)  the ownership, maintenance, operation or use of a nuclear
               facility by or on behalf of an Insured;

          (ii) the furnishing by an Insured of services, materials, parts or
               equipment in connection with the planning, construction,
               maintenance, operation or use of any nuclear facility; and

          (iii) the possession, consumption, use, handling, disposal or
               transportation of fissionable substances, or of other radioactive
               material (except radioactive isotopes, away from a nuclear
               facility, which have reached the final stage of fabrication so as
               to be usable for any scientific, medical, agricultural,
               commercial or industrial purpose) used, distributed, handled or
               sold by an Insured.

          As used in this Policy:

1.   The term "nuclear energy hazard" means the radioactive, toxic, explosive,
     or other hazardous properties of radioactive material;

2.   The term "radioactive material" means uranium, thorium, plutonium,
     neptunium, their respective derivatives and compounds, radioactive isotopes
     of other elements and any other substances which may be designated by or
     pursuant to any law, act or statute, or law amendatory thereof as being
     prescribed substances capable of releasing atomic energy, or as being
     requisite for the production, use of application of atomic energy;

3.   The term "nuclear facility" means:

     (a)  any apparatus designed or used to sustain nuclear fission in
          self-supporting chain reaction or to contain a critical mass of
          plutonium, thorium or uranium or any one or more of them;

     (b)  any equipment or device designed or used for (i) separating the
          isotopes of plutonium, thorium and uranium or any one or more of them,
          (ii) processing or utilizing spent fuel, or (iii) handling, processing
          or packaging waste;

                                       28

<PAGE>

     (c)  any equipment or device used for the processing, fabricating or
          alloying of plutonium, thorium or uranium enriched in the isotope
          uranium 233 or in the isotope uranium 235, or any one or more of them
          if at any time the total amount of such material in the custody of the
          Insured at the premises where such equipment or device is located
          consists of or contains more than 25 grams of plutonium or uranium 233
          or any combination thereof, or more than 250 grams of uranium 235;

     (d)  any structure, basin, excavation, premises or place prepared or used
          for the storage or disposal of waste radioactive material;

     and includes the site on which any of the foregoing is located, together
     with all operations conducted thereon and all premises used for such
     operations.

4.   The term "fissionable substance" means any prescribed substance that is, or
     from which can be obtained, a substance capable of releasing atomic energy
     by nuclear fission.

5.   With respect to property, loss of use of such property shall be deemed to
     be property damage.

NMA 1979a (01/04/96) Form approved by Lloyd's Underwriters' Non-Marine
Association Limited

                                       29

<PAGE>

           NUCLEAR ENERGY RISKS EXCLUSION CLAUSE (REINSURANCE) (1994)
                      (WORLDWIDE EXCLUDING U.S.A. & CANADA)

This agreement shall exclude Nuclear Energy Risks whether such risks are written
directly and/or by way of reinsurance and/or via Pools and/or Associations.

For all purposes of this agreement Nuclear Energy Risks shall mean all first
party and/or third party insurances or reinsurances (other than Workers'
Compensation and Employers' Liability) in respect of:

(I)  All Property on the site of a nuclear power station.

     Nuclear Reactors, reactor buildings and plant and equipment therein on any
     site other than a nuclear power station.

(II) All Property, on any site (including but not limited to the sites referred
     to in (1) above) used or having been used for: -

     a)   The generation of nuclear energy; or

     b)   The Production, Use or Storage of Nuclear Material.

(III) Any other Property eligible for insurance by the relevant local Nuclear
     Insurance Pool and/or Association but only to the extent of the
     requirements of that local Pool and/or Association.

(IV) The supply of goods and services to any of the sites, described in (I) to
     (III) above, unless such insurances or reinsurances shall exclude the
     perils of irradiation and contamination by Nuclear Material.

Except as undernoted, Nuclear Energy Risks shall not include: -

(i)  Any insurance or reinsurance in respect of the construction or erection or
     installation or replacement or repair or maintenance or decommissioning of
     Property as described in (I) to (III) above (including contractors' plant
     and equipment);

(ii) Any Machinery Breakdown or other Engineering insurance or reinsurance not
     corning within the scope of (l) above;

Provided always that such insurance or reinsurance shall exclude the perils of
irradiation and contamination by Nuclear Material.

However, the above exemption shall not extend to: -

(1)  The provision of any insurance or reinsurance whatsoever in respect of:

     (a)  Nuclear Material;

                                       30

<PAGE>

     (b)  Any Property in the High Radioactivity Zone or Area of any Nuclear
          Installation as from the introduction of Nuclear Material or - for
          reactor installations - as from fuel loading or first criticality
          where so agreed with the relevant local Nuclear Insurance Pool and/or
          Association.

(2)  The provision of any insurance or reinsurance for the undernoted perils: -

     -    Fire, lightning, explosion;

     -    Earthquake;

     -    Aircraft and other aerial devices or articles dropped therefrom;

     -    Irradiation and radioactive contamination;

     -    Any other peril insured by the relevant local Nuclear Insurance Pool
          and/or Association;

     in respect of any other Property not specified in (1) above which directly
     involves the Production, Use or Storage of Nuclear Material as from the
     introduction of Nuclear Material into such Property.

Definitions

"Nuclear Material" means: -

(i)  Nuclear fuel, other than natural uranium and depleted uranium, capable of
     producing energy by a self-sustaining chain process of nuclear fission
     outside a Nuclear Reactor, either alone or in combination with some other
     material; and

(ii) Radioactive Products or Waste.

"Radioactive Products or Waste" means any radioactive material produced in, or
any material made radioactive by exposure to the radiation incidental to the
production or utilization of nuclear fuel, but does not include radioisotopes
which have reached the final stage of fabrication so as to be usable for any
scientific, medical, agricultural, commercial or industrial purpose.

"Nuclear Installation" means: -

(i)  Any Nuclear Reactor;

(ii) Any factory using nuclear fuel for the production of Nuclear Material, or
     any factory for the processing of Nuclear Material, including any factory
     for the reprocessing of irradiated nuclear fuel; and

(iii) Any facility where Nuclear Material is stored, other than storage
     incidental to the carriage of such material.

"Nuclear Reactor" means any structure containing nuclear fuel in such an
arrangement that a self-sustaining chain process of nuclear fission can occur
therein without an additional source of neutrons.

                                       31

<PAGE>

"Production, Use or Storage of Nuclear Material" means the production,
manufacture, enrichment, conditioning, processing, reprocessing, use, storage,
handling and disposal of Nuclear Material.

"Property" shall mean all land, buildings, structures, plant, equipment,
vehicles, contents (including but not limited to liquids and gases) and all
materials of whatever description whether fixed or not.

"High Radioactivity Zone or Area" means: -

(i)  For nuclear power stations and Nuclear Reactors, the vessel or structure
     which immediately contains the core (including its supports and shrouding)
     and all the contents thereof, the fuel elements, the control rods and the
     irradiated fuel store; and

(ii) For non-reactor Nuclear Installations, any area where the level of
     radioactivity requires the provision of a biological shield.

                                       32

<PAGE>

                              ADDENDUM NUMBER 1 TO
                          PLACEMENT SLIP NO. 2005/1912

                                   RISK DETAIL

<TABLE>
<S>                       <C>
REASSURED AND LOCATION:   Darwin National Assurance Company, Darwin Select
                          Insurance Company, Capitol Indemnity Corporation,
                          Capitol Specialty Insurance Corporation, Platte River
                          Insurance Company and/or any other associated,
                          affiliated or subsidiary companies of Alleghany
                          Insurance Holding LLC, but only in respect of business
                          underwritten by:

                          Darwin Professional Underwriters, Inc.
                          76 Batterson Park Road
                          Farmington, Connecticut 06032

                          (Any amendments to the foregoing to be agreed by
                          Reinsurers).

PERIOD:                   (i) Contract covering claims made or losses
                          discovered, as original, on original policies issued
                          or renewed during the period January 2nd, 2005 12:01
                          a.m. Standard Time to April 1st, 2006 12:01 a.m.
                          Standard Time at the place and location of risks
                          insured in respect of business classified by the
                          Reassured as Directors' and Officers' Liability,
                          Fiduciary Liability, Employment Practices Liability
                          and Managed Care Organizations Errors and Omissions
                          Liability.

                          (ii) Contract covering claims made or losses
                          discovered, as original, on original policies issued
                          or renewed during the period January 1st, 2005 12:01
                          a.m. Standard Time to April 1st, 2006 12:01 a.m.
                          Standard Time at the place and location of
</TABLE>

                                       1

<PAGE>

<TABLE>
<S>                       <C>
                          risks insured in respect of business classified by the
                          Reassured as Insurance Agents Errors and Omissions
                          Liability, Lawyers Professional Liability and
                          Miscellaneous Professional Liability.

                          In respect of (i) and (ii) above:

                          Maximum original policy period 12 months plus odd time
                          not to exceed 18 months in all, plus extended
                          reporting period coverage or endorsements, as
                          original. Such extended reporting period coverage or
                          endorsements shall be limited to 36 months or so
                          deemed, or such longer period as required by State
                          Regulations. Notwithstanding the foregoing, policies
                          classified by the Reassured as "Run-Off" may be issued
                          for periods up to 72 months.

                          For tile purposes of this Contract, any extension,
                          discovery period or extended reporting endorsement
                          attaching to a policy covered hereunder shall be
                          considered as part of the period of the said policy,
                          subject to the provision that a separate limit of
                          liability may apply in respect thereof

                          Upon expiry of this Contract, policies in force at the
                          effective time and date of expiration hereof shall
                          continue to be covered hereunder until their
                          individual natural expiration or termination dates,
                          whichever sooner, including extensions, discovery
                          periods or other similar extended reporting
                          endorsements attaching to such policies. The Reassured
                          may however, subject to agreement by Reinsurers
                          hereon, terminate the liability of the Reinsurers for
                          claims made or losses discovered, as original, after
                          the effective time and date of expiration hereof and,
                          in such event, the unearned premium at that date
                          applicable to in force policies, including extensions,
                          discovery periods or other similar extended reporting
                          endorsements attached thereto, shall be deducted from
                          the Subject Gross Net Written Premium Income for the
                          purpose of the premium rating hereunder.

TYPE:                     EXCESS OF LOSS REINSURANCE
</TABLE>

                                       2

<PAGE>

                                   AMENDMENT

It is hereby noted and agreed that with effect from September 1, 2005 the
following amendments are made to this Contract:

1.   PERIOD is deleted in its entirety and replaced with the following:

<TABLE>
<S>                       <C>
PERIOD:                   (i) Contract covering claims made or losses
                          discovered, as original, on original policies issued
                          or renewed during the period January 2nd, 2005 12:01
                          a.m. Standard Time to April 1st, 2006 12:01 a.m.
                          Standard Time at the place and location of risks
                          insured in respect of business classified by the
                          Reassured as Directors' and Officers' Liability,
                          Fiduciary Liability, Employment Practices Liability
                          and Managed Care Organizations Errors and Omissions
                          Liability.

                          (ii) Contract covering claims made or losses
                          discovered, as original, on original policies issued
                          or renewed during the period January 1st, 2005 12:01
                          a.m. Standard Time to April 1st, 2006 12:01 a.m.
                          Standard Time at the place and location of risks
                          insured in respect of business classified by the
                          Reassured as Insurance Agents Errors and Omissions
                          Liability, Lawyers Professional Liability and
                          Miscellaneous Professional Liability.

                          (III) CONTRACT COVERING CLAIMS MADE OR LOSSES
                          DISCOVERED, AS ORIGINAL, ON ORIGINAL POLICIES ISSUED
                          OR RENEWED DURING THE PERIOD SEPTEMBER 1ST, 2005 12:01
                          A.M. STANDARD TIME TO APRIL 1ST; 2006 12:01 A.M.
                          STANDARD TIME AT THE PLACE AND LOCATION OF RISKS
                          INSURED IN RESPECT OF BUSINESS CLASSIFIED BY THE
                          REASSURED AS TECHNOLOGY ERRORS AND OMISSIONS
                          LIABILITY.

                          In respect of (i), (ii) AND (III) above:

                          Maximum original policy period 12 months plus odd time
                          not to exceed 18 months in all, plus extended
                          reporting period coverage or endorsements, as
                          original. Such extended reporting period coverage or
                          endorsements shall be limited to 36 months or so
                          deemed, or such longer period as required by State
                          Regulations. Notwithstanding the foregoing, policies
                          classified
</TABLE>

                                       3

<PAGE>

<TABLE>
<S>                       <C>
                          by the Reassured as "Run-Off" may be issued for
                          periods up to 72 months.

                          For the purposes of this Contract, any extension,
                          discovery period or extended reporting endorsement
                          attaching to a policy covered hereunder shall be
                          considered as part of the period of the said policy,
                          subject to the provision that a separate limit of
                          liability may apply in respect thereof.

                          Upon expiry of this Contract, policies in force at the
                          effective time and date of expiration hereof shall
                          continue to be covered hereunder until their
                          individual natural expiration or termination dates,
                          whichever sooner, including extensions, discovery
                          periods or other similar extended reporting
                          endorsements attaching to such policies. The Reassured
                          may however, subject to agreement by Reinsurers
                          hereon, terminate the liability of the Reinsurers for
                          claims made or losses discovered, as original, after
                          the effective time and date of expiration hereof and,
                          in such event, the unearned premium at that date
                          applicable to in force policies, including extensions,
                          discovery periods or other similar extended reporting
                          endorsements attached thereto, shall be deducted from
                          the Subject Gross Net Written Premium Income for the
                          purpose of the premium rating hereunder.
</TABLE>

2.   CLASS is deleted in its entirety and replaced with the following:

<TABLE>
<S>                       <C>
CLASS:                    Business classified by the Reassured as Directors' &
                          Officers' Liability, Fiduciary Liability, Employment
                          Practices Liability, Managed Care Organizations Errors
                          and Omissions Liability, Insurance Agents Errors and
                          Omissions Liability, Lawyers Professional Liability
                          (subject to Exclusion 8 attached hereto),

                          Miscellaneous Professional Liability AND TECHNOLOGY
                          ERRORS AND OMISSIONS LIABILITY.

                          Exclusions: As per the attached APPENDIX A
</TABLE>

                                       4

<PAGE>

3.   WARRANTY IS ADDED AS FOLLOWS:

<TABLE>
<S>                       <C>
WARRANTY:                 PATENT INFRINGEMENT COVERAGE APPLICABLE TO BUSINESS
                          CLASSIFIED BY THE REASSURED AS TECHNOLOGY ERRORS AND
                          OMISSIONS LIABILITY WILL BE SUB-LIMITED TO
                          USD1,000,000 OR SO DEEMED.
</TABLE>

4.   EXCLUSION 8 of APPENDIX A -- EXCLUSIONS is deleted in its entirety and
     replaced with the following:

     8.   Business classified by the Reassured as Accountants Errors &
          Omissions, Actuarial Errors & Omissions, Architects and Engineers
          Errors & Omissions, Engineering/Construction Risk Errors & Omissions,
          Lawyers Professional Liability but only in respect of law firms with
          51 or more attorneys at the inception of the original policy/program
          attaching hereto, For ProFit Outside Directors Liability when written
          as such under a Lawyers Professional Liability policy subject to this
          Contract, Financial Institutions Errors & Omissions (which is
          understood to mean business classified by the Reassured as Commercial
          Money Center Banks, Investment Banks, Mutual Funds, Security
          Dealers/Brokers, Investment Advisors and Insurance Companies), Media
          Professional Liability (EXCEPT WHEN CLASSIFIED BY THE REASSURED AS
          TECHNOLOGY ERRORS AND OMISSIONS LIABILITY), Medical Malpractice,
          Hospital Professional Liability, Nursing Home Errors & Omissions, and
          Insurance Agents Errors & Omissions for the following: Marsh, Aon,
          Willis, Arthur J. Gallagher, Jardine Lloyd Thompson, Heath Lambert,
          Benfield and Brown & Brown.

                 ALL OTHER TERMS AND CONDITIONS REMAIN UNALTERED

ACCEPTANCE:                             Company:
                                                 -------------------------------

                                        Approved By:
                                                     ---------------------------
                                        Title:
                                               ---------------------------------
                                        Date:
                                              ----------------------------------

                                       5

<PAGE>

                              ADDENDUM NUMBER 2 TO
                          PLACEMENT SLIP NO. 2005/1912

                                   RISK DETAIL

<TABLE>
<S>                       <C>
REASSURED AND LOCATION:   Darwin National Assurance Company, Darwin Select
                          Insurance Company, Capitol Indemnity Corporation,
                          Capitol Specialty Insurance Corporation, Platte River
                          Insurance Company and/or any other associated,
                          affiliated or subsidiary companies of Alleghany
                          Insurance Holding LLC, but only in respect of business
                          underwritten by:

                          Darwin Professional Underwriters, Inc.
                          76 Batterson Park Road
                          Farmington, Connecticut 06032

                          (Any amendments to the foregoing to be agreed by
                          Reinsurers).

PERIOD:                   (i) Contract covering claims made or losses
                          discovered, as original, on original policies issued
                          or renewed during the period January 2nd, 2005 12:01
                          a.m. Standard Time to April lst, 2006 12:01 a.m.
                          Standard Time at the place and location of risks
                          insured in respect of business classified by the
                          Reassured as Directors' and Officers' Liability,
                          Fiduciary Liability, Employment Practices Liability
                          and Managed Care Organizations Errors and Omissions
                          Liability.

                          (ii) Contract covering claims made or losses
                          discovered, as original, on original policies issued
                          or renewed during the period January 1st, 2005 12:01
                          a.m. Standard Time to April 1st, 2006 12:01 a.m.
                          Standard Time at the place and location of
</TABLE>

                                       1

<PAGE>

<TABLE>
<S>                       <C>
                          risks insured in respect of business classified by the
                          Reassured as Insurance Agents Errors and Omissions
                          Liability, Lawyers Professional Liability and
                          Miscellaneous Professional Liability.

                          In respect of (i) and (ii) above:

                          Maximum original policy period 12 months plus odd time
                          not to exceed 18 months in all, plus extended
                          reporting period coverage or endorsements, as
                          original. Such extended reporting period coverage or
                          endorsements shall be limited to 36 months or so
                          deemed, or such longer period as required by State
                          Regulations. Notwithstanding the foregoing, policies
                          classified by the Reassured as "Run-Off" may be issued
                          for periods up to 72 months.

                          For the purposes of this Contract, any extension,
                          discovery period or extended reporting endorsement
                          attaching to a policy covered hereunder shall be
                          considered as part of the period of the said policy,
                          subject to the provision that a separate limit of
                          liability may apply in respect thereof.

                          Upon expiry of this Contract, policies in force at the
                          effective time and date of expiration hereof shall
                          continue to be covered hereunder until their
                          individual natural expiration or termination dates,
                          whichever sooner, including extensions, discovery
                          periods or other similar extended reporting
                          endorsements attaching to such policies. The Reassured
                          may however, subject to agreement by Reinsurers
                          hereon, terminate the liability of the Reinsurers for
                          claims made or losses discovered, as original, after
                          the effective time and date of expiration hereof and,
                          in such event, the unearned premium at that date
                          applicable to in force policies, including extensions,
                          discovery periods or other similar extended reporting
                          endorsements attached thereto, shall be deducted from
                          the Subject Gross Net Written Premium Income for the
                          purpose of the premium rating hereunder.

TYPE:                     EXCESS OF LOSS REINSURANCE
</TABLE>

                                       2

<PAGE>

                                   AMENDMENT

It is hereby noted and agreed that effective September 1, 2005 the following
amendments are made to this Contract:

1.   LIMIT Section, the second paragraph, as noted below is deleted in its
     entirety. The Reassured shall retain the aforementioned USD 2,000,000 net
     and unreinsured, except for internal reinsurance and/or Catastrophe Excess
     of Loss Reinsurance.

2.   Appendix B, the Clauses ULTIMATE NET LOSS, NET RETAINED LINES, EXCESS OF
     ORIGINAL POLICY LIMITS and EXTRA-CONTRACTUAL OBLIGATIONS are deleted and
     replaced with the following:

ULTIMATE NET LOSS

The term "Ultimate Net Loss" as used in this Contract shall mean the sum
actually paid or payable by the Reassured in settlement of any losses under its
original policies. In the event that the Reassured's original policies and/or
specific coverage parts of their original policies are issued with loss
adjustment expenses included within the original policy limit, such loss
adjustment expenses shall be included within the Reassured's Ultimate Net Loss
for the purposes of recovery hereunder.

It is understood and agreed the Reassured may purchase quota share reinsurance
for policies produced, accepted or referred through the Reassured's "i-bind"
system, within the retention herein, recoveries under which shall be
disregarded, for the purposes of calculating the Ultimate Net Loss hereunder.

Where the Reassured's original policies and/or specific coverage parts of their
original policies provide for loss adjustment expenses in addition to the
original policy limit, all loss adjustment expenses paid by the Reassured shall
be apportioned in proportion to the respective interests in the loss of the
parties hereto as such interests finally appear in addition to any Ultimate Net
Loss recoverable hereunder. In the event a verdict or judgment is reduced by an
appeal or a settlement, subsequent to the entry of the judgment, resulting in an
ultimate saving on such verdict or judgment, or a judgment is reversed outright,
the expense incurred in securing such final reduction or reversal shall be
pro-rated between the Reinsurers and the Reassured in the proportion that each
benefits from such reduction or reversal; and the expenses incurred up to the
time and date of the original verdict or judgment shall be pro-rated in
proportion to each party's interest in such verdict or judgment.

In the event of external legal or external adjustment expenses, including
outside monitoring counsel expenses, which are incurred by the Reassured in
connection with a claim or potential claim hereunder and which are not the
subject of the Reassured's original policy, then Reinsurers shall also be liable
for their proportion of such expenses as the respective interests in the loss of
the parties hereto finally appear in addition to their share of any Ultimate Net
Loss recoverable hereunder.

                                       3

<PAGE>

The Reinsurers shall also be liable for legal expenses incurred in respect of
coverage questions and legal actions in connection with a claim or potential
claim hereunder (hereinafter referred to as "declaratory judgment and/or
rescission expenses"). It being understood and agreed that:

     1.   When there is no contractual loss, other than declaratory judgment
          and/or rescission expenses, the declaratory judgment and/or rescission
          expenses shall be considered a contractual loss and included within
          the Reassured's Ultimate Net Loss for the purposes of recovery
          hereunder.

     2.   When a contractual loss, exclusive of declaratory judgment and/or
          rescission expenses, is incurred hereunder, the Reinsurers shall be
          liable for their proportionate share of such declaratory judgment
          and/or rescission expenses, as the respective interests in the
          contractual loss of the parties hereto finally appear, up to an
          additional limit of this Contract in addition to any contractual loss
          recoverable hereunder.

For the purposes of this Contract loss adjustment expenses shall include all
expenses of litigation, including post judgment interest, but shall exclude the
salaries of regular employees and all office expenses of the Reassured.

All salvages and recoveries shall first be deducted from such loss to arrive at
the amount of the Reassured's Ultimate Net Loss for the purposes of this
Contract. All salvages, recoveries or payments recovered or received subsequent
to a loss settlement under this Contract shall be applied as if recovered or
received prior to the aforesaid settlement and all necessary adjustments shall
be made by the parties hereto. However, nothing in the foregoing shall be
construed as meaning that losses are not recoverable hereunder until the
Reassured's Ultimate Net Loss has been ascertained.

NET RETAINED LINES

This Contract applies only to that portion of any insurance covered by this
Contract which the Reassured retains net for its own account and in calculating
the amount of any loss hereunder and also in computing the amount in excess of
which this Contract attaches, only loss or losses in respect of that portion of
any insurance which the Reassured retains net for its own account shall be
included. It being understood and agreed the Reassured may purchase quota share
reinsurance, for policies produced, accepted or referred through the Reassured's
"i-bind" system, within the net retention herein, which shall be disregarded for
the purposes of this Article.

It is understood and agreed that the amount of the Reinsurers' liability
hereunder in respect of any loss or losses shall not be increased by reason of
the inability of the Reassured to collect from any other reinsurers, whether
specific or general, any amounts which may have become due from them, whether
such inability arises from the insolvency of such other reinsurers or otherwise.

                                       4

<PAGE>

EXCESS OF ORIGINAL POLICY LIMITS

This Contract shall protect the Reassured in respect of 90% of any additional
liability incurred by the Reassured as the result of an award in excess of the
original policy limit as more fully defined below. Such excess of original
policy limits coverage shall be up to an additional limit of this Contract and
in addition to any contractual loss recovered hereunder, it being understood the
maximum additional recoverable in respect of specific excess of original policy
limits and extra contractual obligations coverage shall be USD 3,000,000 any one
claim. However, specific Excess of Original Policy Limits coverage afforded
under the Reassured's "i-bind" Quota Share Reinsurance Contract shall inure to
the benefit of Reinsurers hereon. The Reinsurers agree that the said 90% of the
additional liability so incurred, plus the Reassured's contractual loss, shall
be considered as one combined loss for the purposes of the Reassured's
retention,

Awards in excess of the original policy limit are defined as contractual losses
which the Reassured may be legally liable to pay, but in excess of the original
policy limit, such losses in excess of the original policy limit having been
incurred because of, but not limited to, the following: failure by the Reassured
to settle within the original policy limit or by reason of alleged or actual
negligence, fraud or bad faith in rejecting an offer of settlement or in the
preparation of the defense or in the trial of any action against an insured or
in the preparation or prosecution of an appeal consequent upon such action.

The date on which any liability in excess of original policy limits is incurred
by the Reassured shall be deemed, in all circumstances, to be the date the
original claim was made or discovered,

However, this Article shall not apply where such awards in excess of original
policy limit have been incurred due to the fraud of a member of the Board of
Directors or a corporate officer of the Reassured acting individually or
collectively or in collusion with any individual or corporation or any other
organization or party involved in the presentation, defense or settlement of any
claim.

EXTRA-CONTRACTUAL OBLIGATIONS

This Contract shall protect the Reassured in respect of 90% of any additional
liability incurred by the Reassured as the result of an award in respect of any
extra-contractual obligation, as more fully defined below. Such extra
contractual obligations coverage shall be up to an additional limit of this
Contract and in addition to any contractual loss recovered hereunder, it being
understood the maximum additional recoverable in respect of specific extra
contractual obligations and excess of original policy limits coverage shall be
USD 3,000,000 any one claim. However, specific Extra Contractual Obligations
coverage afforded under the Reassured's "i-bind" Quota Share Reinsurance
Contract shall inure to the benefit of Reinsurers hereon. The Reinsurers agree
that the said 90% of the additional liability so incurred, plus the Reassured's
contractual loss, shall be considered as one combined loss for the purposes of
the Reassured's retention.

                                       5

<PAGE>

"Extra-contractual obligations" are defined as those liabilities not covered
under any other provision of this Contract and which arise from the handling of
any claim on business covered hereunder, such liabilities arising because of,
but not limited to, the following: failure by the Reassured to settle within the
policy limit, or by reason of alleged or actual negligence, fraud or bad faith
in rejecting an offer of settlement or in the preparation of the defense or in
the trial of any action against an insured or in the preparation or prosecution
of an appeal consequent upon such action,

The date on which any extra-contractual obligation is incurred by the Reassured
shall be deemed, in all circumstances, to be the date the original claim was
made or discovered.

Recoveries, collectibles or retentions from any other form of insurance or
reinsurance including deductibles or self-insured retentions that protect the
Company against Extra Contractual Obligations shall inure to the benefit of the
Reinsurers and shall be deducted from the total amount of Extra Contractual
Obligations for purposes of determining the loss hereunder.

However, this Article shall not apply where such extra-contractual obligations
have been incurred due to the fraud of a member of the Board of Directors or a
corporate officer of the Reassured acting individually or collectively or in
collusion with any individual or corporation or any other organization or party
involved in the presentation, defense or settlement of any claim.

                 ALL OTHER TERMS AND CONDITIONS REMAIN UNALTERED

ACCEPTANCE:                             Company:
                                                 -------------------------------

                                        Approved By:
                                                     ---------------------------
                                        Title:
                                               ---------------------------------
                                        Date:
                                              ----------------------------------

                                       6<PAGE>
                                                                   Exhibit 10.31

                                                           CARVILL AMERICA, INC.
                                                         The Pinnacle, Suite 375
                                                         3455 Peachtree Road, NE
                                                          Atlanta, Georgia 30326
                                                         Telephone: 404-475-0314
                                                         Facsimile: 404-475-0439

<TABLE>
<S>                    <C>
TITLE:                 EXCESS OF LOSS REINSURANCE CONTRACT

BETWEEN:               DARWIN NATIONAL ASSURANCE COMPANY, DARWIN SELECT
                       INSURANCE COMPANY, CAPITOL INDEMNITY CORPORATION, CAPITOL
                       SPECIALTY INSURANCE CORPORATION, PLATTE RIVER INSURANCE
                       COMPANY AND/OR ANY OTHER ASSOCIATED, AFFILIATED OR
                       SUBSIDIARY COMPANIES OF ALLEGHANY INSURANCE HOLDING LLC,
                       BUT ONLY IN RESPECT OF BUSINESS UNDERWRITTEN BY DARWIN
                       PROFESSIONAL UNDERWRITERS, INC.

                       AND

                       THE REINSURERS SIGNATORY HERETO

COMMENCING:            APRIL 1, 2005

U.S. CLASSIFICATION:   U.S. REINSURANCE
</TABLE>

                                  Page 1 of 34

<PAGE>

                                    CONTENTS

<TABLE>
<CAPTION>
PREAMBLE   IDENTITY OF PARTIES
---------- -------------------
<S>        <C>                                                                <C>
ARTICLE 1  BUSINESS REINSURED..............................................    4
ARTICLE 2  EXCLUSIONS......................................................    4
ARTICLE 3  COVER, LIMIT AND RETENTION......................................    5
ARTICLE 4  WARRANTY........................................................    6
ARTICLE 5  TERRITORIAL SCOPE...............................................    7
ARTICLE 6  PERIOD..........................................................    7
ARTICLE 7  SPECIAL TERMINATION.............................................    7
ARTICLE 8  ULTIMATE NET LOSS...............................................    9
ARTICLE 9  LOSS RATIO CAP..................................................   10
ARTICLE 10 EXCESS OF ORIGINAL POLICY LIMITS................................   10
ARTICLE 11 EXTRA-CONTRACTUAL OBLIGATIONS...................................   10
ARTICLE 12 NET RETAINED LINES..............................................   11
ARTICLE 13 PREMIUM.........................................................   12
ARTICLE 14 NOTICE OF LOSS AND LOSS SETTLEMENTS.............................   13
ARTICLE 15 UNEARNED PREMIUM AND OUTSTANDING LOSS RESERVES_.................   14
ARTICLE 16 INTEREST PENALTY................................................   16
ARTICLE 17 COMMUTATION.....................................................   17
ARTICLE 18 CURRENCY........................................................   18
ARTICLE 19 TAX, PROVISIONS.................................................   18
ARTICLE 20 INSOLVENCY OF THE REASSURED.....................................   19
ARTICLE 21 OFFSET..........................................................   20
ARTICLE 22 DELAYS, ERRORS AND OMISSIONS....................................   20
</TABLE>

                                  Page 2 of 34

<PAGE>

<TABLE>
<S>        <C>                                                                <C>
ARTICLE 23 AMENDMENTS AND ALTERATIONS......................................   20
ARTICLE 24 ACCESS TO RECORDS AND CLAIMS REVIEW.............................   20
ARTICLE 25 ARBITRATION.....................................................   21
ARTICLE 26 SERVICE OF SUIT.................................................   22
ARTICLE 27 CONFIDENTIALITY.................................................   23
ARTICLE 28 REGULATORY COMPLIANCE...........................................   23
ARTICLE 29 INTERMEDIARY....................................................   23
ARTICLE 30 GOVERNING LAW...................................................   24
ARTICLE 31 PARTICIPATION...................................................   24
ARTICLE 32 SEVERAL LIABILITY NOTICE........................................   24
</TABLE>

ATTACHMENTS:

1.   NUCLEAR INCIDENT EXCLUSION CLAUSES - LIABILITY - REINSURANCE -
     U.S.A./CANADA

2.   NUCLEAR ENERGY RISKS EXCLUSION CLAUSE - REINSURANCE - 1994 - (WORLDWIDE
     excluding U.S.A. and CANADA)

3.   APPENDIX A   LOSS BORDEREAU FORMAT

                                  Page 3 of 34

<PAGE>

                       EXCESS OF LOSS REINSURANCE CONTRACT

PREAMBLE

This Contract is made and entered into between Darwin National Assurance
Company, Darwin Select Insurance Company, Capitol Indemnity Corporation, Capitol
Specialty Insurance Corporation, Platte River Insurance Company and/or any other
associated, affiliated or subsidiary companies of Alleghany Insurance Holding
LLC, but only in respect of business underwritten by Darwin Professional
Underwriters Inc. of 76 Batterson Park Road, Farmington, Connecticut 06032 (NAIC
Group Code 10472) (hereinafter referred to as "the Reassured") and the
Reinsurers signatory hereto (hereinafter referred to as "the Reinsurers"), on
the following terms and conditions:

                                    ARTICLE 1

BUSINESS REINSURED

This Contract applies to policies of insurance classified by the Reassured as
Healthcare Facility Primary Professional Liability, Healthcare Facility Primary
General Liability, including Employee Benefits and other ancillary liability
coverages, Physician and Surgeon Primary Professional Liability, Physician Group
Primary Professional Liability, Physician Group Primary General Liability, and
other ancillary liability coverages, Follow Form Excess Liability and Umbrella
Liability as original.

For the purposes of this Contract, the terms "policy", "policies" or "original
policies" as used herein shall be understood to mean all binders, policies,
contracts, endorsements or other evidence of insurance issued in the name of the
Reassured.

Where the Reassured issues a group policy to multiple insureds providing
separate and distinct limits to each insured, then for the purposes of recovery
hereunder each separate and distinct limit shall be deemed to be a separate
policy.

Where the Reassured issues more than one policy to the same original insured
covering the same class of business, (such as on a layered basis), then the
combination of such policies shall be considered a program for the purposes
hereof, as reasonably determined by the Reassured.

                                   ARTICLE 2

EXCLUSIONS

This Contract does not apply to and absolutely excludes the Following:

1.   Nuclear Incidents, in accordance with the Nuclear Incident Exclusion
     Clauses - Liability - Reinsurance - U.S.A./Canada - as attached.

                                  Page 4 of 34

<PAGE>

2.   Nuclear Energy Risks, in accordance with the Nuclear Energy Risks Exclusion
     Clause (Reinsurance) (1994) (Worldwide excluding U.S.A. and Canada) - as
     attached

3.   All liability of the Reassured arising by contract, operation of law, or
     otherwise, from its participation or membership, whether voluntary or
     involuntary, in any Insolvency Fund. "Insolvency Fund" includes any
     guarantee fund, insolvency tend, plan, pool, association, fund or other
     arrangement, howsoever denominated, established or governed, which provides
     for any assessment of or payment or assumption by the Reassured of part or
     all of any claim, debt, charge, fee or other obligation of an insurer, or
     its successors or assigns, which has been declared by any competent
     authority to be insolvent, or which is otherwise deemed unable to niece any
     claim, debt, charge, fee or other obligation in whole or in part.

4.   Liability assumed by the Reassured as a Member or Reinsurer of any Pool,
     Association or Syndicate.

5.   Financial Guarantee and Insolvency Insurance.

6.   Surety business.

7.   Reinsurance Assumed Business, other than reinsurance of a captive insurance
     company, policies "fronted" by another carrier and individually
     underwritten by Darwin Professional Underwriters, Inc. and Inter-Company
     Pooling Arrangements.

                                    ARTICLE 3

COVER, LIMIT AND RETENTION

Section A:

In respect of business classified by the Reassured as Healthcare Facility
Primary Professional Liability, Healthcare Facility Primary General Liability,
including Employee Benefits and other ancillary liability coverages, Follow Form
Excess Liability and Umbrella Liability, the Reinsurers shall be liable under
this Contract for the Reassured's Ultimate Net Loss in excess of $500,000 each
and every loss, each Insured, each policy/program, subject to a limit of
liability to the Reinsurers of up to $1,500,000 Ultimate Net Loss each and every
loss, well insured, each policy/program.

Section B:

In respect of business classified by the Reassured as Physician and Surgeon
Primary Professional Liability, Physician Group Primary Professional Liability,
Physician Group Primary General Liability, other ancillary liability coverages
and Follow Form Excess Liability, the Reinsurers shall be liable under this
Contract for the Reassured's Ultimate Net Loss in excess of $250,000 each and
every loss, each Insured, each policy/program, subject to a limit of liability
to the Reinsurers of up to $1,750,000 Ultimate Net Loss each and every loss,
each insured, each policy/program.

                                  Page 5 of 34

<PAGE>

Section C:

hr the event of business covered under Sections A or B being involved in the
same loss occurrence, the Reinsurers shall be liable under this Contract for the
Reassured's Ultimate Net Loss in excess of $500,000 each and every loss
occurrence subject to a limit of liability to the Reinsurers of up to $2,000,000
Ultimate Net Loss each and every loss occurrence.

In the event of business covered under Sections A and B being involved in the
same loss occurrence, the Reinsurers shall be liable under this Contract for the
Reassured's Ultimate Net Loss in excess of $750,000 each and every loss
occurrence subject to a limit of liability to the Reinsurers of up to $2,000,000
Ultimate Net Loss each and every loss occurrence.

Recoveries under Sections A and B inure to the benefit of Section C.

It is understood and agreed that for the purposes of Section C, the maximum
contribution to the Ultimate Net Loss is $500,000 per policy/program for Section
A and $250,000 per policy/program for Section B.

Sections A, B and C

The Reassured shall retain the aforementioned retention(s) net and unreinsured,
except for internal reinsurance and/or Catastrophe Excess of Loss Reinsurance.

Reinsurers hereon agree to bear their proportional share of all loss adjustment
and defense cost expenses, as per the original policy. Original policies may
provide for costs inclusive or costs in addition coverage. Where coverage is
issued on a cost inclusive basis, costs shall be included within the Ultimate
Net Loss hereon. Where coverage is issued on a cost in addition basis, pro rata
costs shall be payable in addition to the limits hereon, Sections A and/or B
and/or C combined.

It is understood and agreed that the limits hereon apply separately to each
original coverage and/or section thereof as applicable, issued by the Reassured,
unless written on a combined, shared limit basis, as per the original policies.

The meaning of "each and every loss", "claim", "claim made" and "losses
occurring" shall follow the definitions in the policies covered hereunder, as
finally determined by the Reassured. The Reassured shall also be the determinant
of what constitutes "loss occurrence", "each Insured", "each coverage", "each
section" and "each policy".

                                    ARTICLE 4

WARRANTY

It is understood and agreed the maximum original policy limit subject to (his
Contract shall be $1,000,000 per claim or so deemed.

                                  Page 6 of 34

<PAGE>

                                    ARTICLE 5

TERRITORIAL SCOPE

This Contract shall cover wherever the original policies cover.

                                   ARTICLE 6

PERIOD

This Contract covers all claims made or losses occurring, as original, on
original policies written or renewed with effective dates during the period
April 1st, 2005 12:01 a.m. Standard Time to April 1st, 2006 12:01 a.m. Standard
Time at the place and location of risks insured.

The maximum original policy period shall be twelve (12) months plus odd time not
to exceed eighteen (18) months in all, plus extended reporting period coverage
or endorsements, as original. For the purposes of this Contract, any extension,
discovery period or extended reporting endorsement attaching to a policy covered
hereunder shall be considered as part of the period of the said policy, subject
to the provision that a separate limit of liability will not apply in respect
thereof unless required by statute.

Upon expiry of this Contract, policies in force at the effective time and date
of expiration hereof shall continue to be covered hereunder until their
individual natural expiration or termination dates, whichever sooner, including
extensions, discovery periods, DDR, or other similar extended reporting
endorsements attaching to such policies. The Reassured may however, subject to
agreement by Reinsurers hereon, terminate the liability of the Reinsurers for
claims made or losses occurring, as original, after the effective tinge and date
of expiration hereof and, in such event, the unearned premium at that date
applicable to in force policies, including extensions, discovery periods, DDR,
or other similar extended reporting endorsements attached thereto, shall be
deducted from the Subject Gross Net Written Premium Income for the purpose of
the premium rating hereunder.

                                    ARTICLE 7

SPECIAL TERMINATION

A.   Either party may terminate this Contract upon thirty (30) days notice in
     the event that the other party's surplus has been reduced by 30% or more of
     the amount of surplus at March 31st, 2005.

B.   The Reassured may terminate the Reinsurer's participation hereon at any
     time by giving thirty (30) days' prior written notice to the Reinsurer in
     the event that:

     1.   A State Insurance Department or other legal authority has ordered the
          subscribing Reinsurer to cease writing business; or

                                  Page 7 of 34

<PAGE>

     2.   The subscribing Reinsurer has become insolvent or has been placed into
          liquidation or receivership or proceedings have been instituted
          against the subscribing Reinsurer for the appointment of a receiver,
          liquidator, rehabilitator, conservator or trustee in bankruptcy, or
          other agents known by whatever name, to take possession of its assets
          or control of its operation; or

     3.   The subscribing Reinsurer has reinsured its entire liability under
          this Contract without the Reassured's prior written consent. However,
          the Reinsurer shall be at liberty to effect catastrophe excess and/or
          aggregate stop loss excess reinsurance; or

     4.   The subscribing Reinsurer has ceased assuming new and renewal treaty
          reinsurance business; or

     5.   The subscribing Reinsurer experiences a downgrading in their financial
          strength rating from Standard and Poor's Group below BBB or a
          downgrading in rating from A.M. Best Company below A-.

In the event of such termination, the liability of the Reinsurer shall be
terminated as follows:

Policies in force at the effective time and date of termination of this Contract
shall continue to be covered hereunder until their individual expiration dates,
including extensions, discovery periods or other such similar reporting
endorsements or provisions attached thereto. For rating purposes, the applicable
Subject Gross Net Written Premium Income shall be calculated on policies issued
or renewed from the inception date of this Contract to the effective time and
date of termination of this Contract.

The Reassured may however terminate the liability of the Reinsurer for claims
made or losses occurring, as original, after the effective time and date of
termination of this Contract and, in such event, the unearned premium at the
termination date applicable to in force policies, including extensions,
discovery periods or other similar extended reporting endorsements or provisions
attached thereto, shall be deducted from the Subject Gross Net Written Premium
Income for the purpose of the premium rating hereunder.

The Reassured shall have the right at the time of termination of this Contract
or at any time following the termination of the Reinsurer, provided the
developed rate at that time is strictly below the Maximum hereon, to commute
losses at their discretionary reserves (which they may deem to be zero for the
purposes hereof). The Reassured will then give Reinsurers a full and final
release of all future liabilities under this Contract. It is understood and
agreed that unearned premium at the termination date applicable to in force
policies, including extensions, discovery periods or other similar extended
reporting endorsements or provisions attached thereto, shall be deducted from
the Subject Gross Net Written Premium Income for the purpose of the premium
rating hereunder.

                                  Page 8 of 34

<PAGE>

                                    ARTICLE 8

ULTIMATE NET LOSS

The term "Ultimate Net Loss" as used in this Contract shall mean the sum
actually paid or payable by the Reassured in settlement of any losses under its
original policies and/or 90% of any additional liability incurred by the
Reassured as a result of an award in excess of policy limits, and/or 90% of any
liability incurred by the Reassured from any extra-contractual obligation, both
as more fully defined in EXCESS OF ORIGINAL POLICY LIMITS and EXTRA-CONTRACTUAL
OBLIGATIONS. In the event that the Reassured's original policies and/or specific
coverage parts of their original policies are issued on a cost inclusive basis,
such loss adjustment expenses shall be included within the Reassured's Ultimate
Net loss for the purposes of recovery hereunder.

Where the Reassured's original policies and/or specific coverage parts of their
original policies provide for loss adjustment expenses in addition to limit, all
loss adjustment expenses paid by the Reassured shall be apportioned in
proportion to the respective interests in the loss of the parties hereto as such
interests finally appear, provided that in the event a verdict or judgment is
reduced by an appeal or a settlement, subsequent to the entry of the judgment,
resulting in an ultimate saving on such verdict or judgment, or a judgment is
reversed outright, the expense incurred in securing such final reduction or
reversal shall be pro rata between the Reinsurers and the Reassured in the
proportion that each benefits from such reduction or reversal; and the expenses
incurred up to the time and date of the original verdict or judgment shall be
pro-rated in proportion to each party's interest in such verdict or judgment.

In the event of external legal or external adjustment expenses, including
outside monitoring counsel expenses, rescission expenses and declaratory
judgment expenses, which are incurred by the Reassured in connection with a
claim or potential claim hereunder and which are not the subject of the
Reassured's original policy, then Reinsurers shall also be liable for their
proportion of such expenses in addition to their share of the loss recoverable
hereunder.

For the purposes of this Contract loss adjustment expenses shall include all
expenses of litigation, including post judgment interest, but shall exclude the
salaries of regular employees and all office expenses of the Reassured.

All salvages and recoveries shall first be deducted from such loss to arrive at
the amount of the Reassured's Ultimate Net Loss for the purposes of this
Contract, All salvages, recoveries or payments recovered or received subsequent
to a loss settlement under this Contract shall be applied as if recovered or
received prior to the aforesaid settlement and all necessary adjustments shall
be made by the parties hereto. However, nothing in the foregoing shall be
construed as meaning that losses are not recoverable hereunder until the
Reassured's Ultimate Net Loss has been ascertained.

                                  Page 9 of 34

<PAGE>

                                    ARTICLE 9

LOSS RATIO CAP

Notwithstanding any other provision of this Contract, the maximum recoverable
hereon shall not exceed 300% of the final adjusted reinsurance premium.

                                   ARTICLE 10

EXCESS OF ORIGINAL POLICY LIMITS

Sections A and B, as applicable

As provided in ULTIMATE NET LOSS, this Contract shall protect the Reassured
within the limits of this Contract in respect of 90% of any additional liability
incurred by the Reassured as the result of an award in excess of the original
policy limit as more fully defined below. The Reinsurers agree that the said 90%
of the additional liability so incurred, plus the Reassured's contractual loss,
shall be considered as one combined loss for the purpose of the Reassured's
retention and of the recovery under this Contract subject always, however, to
the amount recoverable hereunder not exceeding the limit of recovery under this
Contact as provided in COVER, LIMIT, AND RETENTION, Sections A and B, as
applicable.

Awards in excess of the original policy limit are defined as contractual losses
which the Reassured may be legally liable to pay, but in excess of the original
policy limit, such losses in excess of the original policy limit having been
incurred because of, but not limited to, the following: failure by the Reassured
to settle within the original policy limit or by reason of alleged or actual
negligence, fraud or bad faith in rejecting an offer of settlement or in the
preparation of the defense or in the trial of any action against an insured or
in the preparation or prosecution of an appeal consequent upon such action,

The date on which any liability in excess of original policy limits is incurred
by the Reassured shall be deemed, in all circumstances, to be the date the
original claim was made or occurred.

However, this Article shall not apply where such awards in excess of original
policy limit have been incurred due to the fraud of a member of the Board of
Directors or a corporate officer of the Reassured acting individually or
collectively or in collusion with any individual or corporation or any other
organization or party involved in the presentation, defense or settlement of any
claim.

                                   ARTICLE 11

EXTRA-CONTRACTUAL OBLIGATIONS

Sections A and B, as applicable

                                  Page 10 of 34

<PAGE>

As provided in ULTIMATE NET LOSS, this Contract shall protect the Reassured
within the limits of this Contract in respect of 90% of any additional liability
incurred by the Reassured as the result of any extra-contractual obligation, as
more fully defined below. The Reinsurers agree that the said 90% of the
additional liability so incurred, plus the Reassured's contractual loss, shall
be considered as one combined loss for the purposes of the Reassured's retention
and of the recovery under this Contract subject always, however, to the amount
recoverable hereunder not exceeding the limit of recovery under this Contract as
provided in COVER, LIMIT, AND RETENTION, Sections A and B, as applicable.

"Extra-contractual obligations" are defined as those liabilities not covered
under any otter provision of this Contract and which arise from the handling of
any claim on business covered hereunder, such liabilities arising because of,
but not limited to, the following: failure by the Reassured to settle within the
policy limit, or by reason of alleged or actual negligence, fraud or had faith
in rejecting an offer of settlement or in the preparation of the defense or in
the trial of any action against an insured or in the preparation or prosecution
of an appeal consequent upon such action.

The date on which any extra-contractual obligation is incurred by the Reassured
shall be deemed, in all circumstances, to be the date the original claim was
made or occurred.

However, this Article shall not apply where such extra-contractual obligations
have been incurred due to the fraud of a member of the Board of Directors or a
corporate officer of the Reassured acting individually or collectively or in
collusion with any individual or corporation or any other organization or party
involved in the presentation, defense or settlement of any claim.

                                   ARTICLE 12

NET RETAINED LINES

This Contract applies only to that portion of any insurance covered by this
Contract which the Reassured retains net for its own account and in calculating
the amount of any loss hereunder and also in computing the amount in excess of
which this Contract attaches, only loss or losses in respect of that portion of
any insurance which the Reassured retains net for its own account shall be
included.

It is understood and agreed that the amount of the Reinsurers' liability
hereunder in respect of any loss or losses shall not be increased by reason of
the inability of the Reassured to collect from any other reinsurers, whether
specific or general, any amounts which may have become due from them, whether
such inability arises front the insolvency of such other reinsurers or
otherwise.

                                  Page 11 of 34

<PAGE>

                                   ARTICLE 13

PREMIUM

In consideration of the liabilities undertaken by the Reinsurers in accordance
with the terms of this Contract, the Reassured shall pay to the Reinsurers their
share of the following premium:

A.   Deposit Premium of $10,000,000 payable in four (4) equal installments of
     $2,500,000 in arrears due on June 30, 2005, September 30, 2005, December
     31, 2005, and March 31, 2006.

B.   Within 60 days of expiry of this Contract, the Reassured shall render a
     statement of its Subject Gross Net Written Premium Income (as defined
     below) and the Reassured shall pay, or be paid by Reinsurers, the
     difference between the Deposit Premium and a premium determined by applying
     a provisional rate of 24.0% to the said Subject Gross Net Written Premium
     Income.

C.   Twelve (12) months after the expiry of this Contract and annually
     thereafter until all losses are finally settled or commuted, the premium
     hereunder shall be adjusted at a rate equivalent to 107.5% of the Case
     Incurred Loss Cost plus a minimum rate of 10.5% applied to the Subject
     Gross Net Written Premium Income. In no event, however, shall the premium
     developed exceed a maximum rate equal to 40.0% of the Subject Gross Net
     Written Premium Income (hereinafter "experience adjustment").

D.   Notwithstanding the foregoing, it is agreed that the first downward
     experience adjustment of premium shall not he made until thirty-six (36)
     months after the expiry of this Contract.

E.   In the event that Reinsurers are placed in a negative cash position
     (Premiums paid by the Reassured less paid losses) prior to April 1, 2008,
     the Reassured shall produce an experience adjustment account as set out in
     C above and shall settle funds due within sixty (60) days of such account.

F.   For the purposes of this Contract, the Reassured's Subject Gross Net
     Written Premium Income shall be defined as the written premium charged by
     the Reassured in respect of the first $1,000,000 of original per claim
     policy or program limits (or so deemed) for business covered hereunder,
     less cancellations, return premiums, and premiums paid for inuring
     reinsurance.

G.   For the purpose of this Contract, Case Incurred Loss Cost means the paid
     and outstanding indemnity, defense and allocated loss adjustment expenses
     recovered or recoverable hereunder on losses applicable to this Contract.

                                  Page 12 of 34

<PAGE>

                                   ARTICLE 14

NOTICE OF LOSS AND LOSS SETTLEMENTS

A paid and outstanding loss bordereaux for all claims with incurred amounts
(indemnity, defense and expense combined), established by the Reassured of
$250,000 or more for Section A and $125,000 or more for Section B to be rendered
by the Reassured within forty-five (45) days of the end of each calendar
quarter, being within forty-five (45) days of June 30th, 2005 and quarterly
thereafter.

Notwithstanding the foregoing in the event that the Reassured's original policy
attaches at $10,000,000 or lower, the Reassured will report on the loss
bordereaux, irrespective of reserves, the following:

A.   Any claim which involves the following circumstances or injuries;

     i.   Unanticipated neurological, sensory and/or systemic deficits such as
          brain damage, permanent paralysis, partial or complete loss of sight
          or hearing;

     ii.  Birth related injuries where mother or infant suffer permanent damage;

     iii. Anesthesia related injuries resulting in permanent damage;

     iv.  Injuries which limit activities of daily living such as amputation or
          loss of sight;

     v.   Unanticipated death, i.e. not foreseen as an expected natural
          consequence of the medical situation;

     vi.  Cardiac/respiratory arrest requiring cardiopulmonary resuscitation;

     vii. Radiology claims;

     viii. Formal accreditation / standards review.

B.   Any class action alleging damages in respect of policies attaching
     hereunder.

C.   Any claim by a governmental or regulatory body which seeks direct monetary
     relief or Sanction.

It is understood and agreed, both by the Reassured and Reinsurers, that all paid
and outstanding losses shall be advised to Reinsurers solely by quarterly
bordereaux and that no individual loss reports arc to be provided unless
specifically requested by Reinsurers.

The bordereaux shall comprise numerical details of the paid and outstanding
amounts of each loss together with other data to identify the claim, all as
shown on the example bordereaux format(s) attached hereto as Appendix A to this
Contract and which have been mutually agreed by the Reassured and Reinsurers. It
is clearly understood and

                                  Page 13 of 34

<PAGE>

agreed that such bordereaux shall not provide any other details of the claim and
that there shall be no requirement to provide assessment of potential liability
or other evaluations of each claim.

Reinsurers agree to abide by all loss settlements of the Reassured which at its
sole discretion shall adjust, settle or compromise all losses and all such
adjustments, settlements or compromises shall be binding upon Reinsurers subject
to the terms, conditions and limitations of the original policies and this
Contract.

Reinsurers agree to settle their share of such loss payments within forty-five
(45) days of receipt of the quarterly bordereaux; the bordereaux being the sole
billing documentation necessary to effect settlements from Reinsurers.

Requests for individual loss reports by Reinsurers hereon shall not delay their
payment of a claim once billing of the claim has been presented by the Reassured
to Reinsurers. In addition, responses to requests for individual loss reports
shall not be delayed or withheld by the Reassured.

Notwithstanding such quarterly bordereaux settlements, the Reassured may request
an immediate cash loss settlement from Reinsurers in the event that the amount
due from Reinsurers in respect of an individual claim is $500,000 or more. Such
cash loss billings shall be made solely utilizing the same format as the
quarterly bordereaux collections.

                                   ARTICLE 15

UNEARNED PREMIUM AND OUTSTANDING LOSS RESERVES

This Article applies only to those Reinsurers signatory hereto who do not
qualify for credit under the regulations of the State insurance authorities or
departments which have jurisdiction over the Reassured's reserves.

The Reassured agrees that when, for its Annual Convention Statement purposes, it
files with the authorities or departments mentioned above or sets up in its
books statutory reserves for known outstanding losses and allocated loss
expenses reinsured by this Contract, for unearned premium in respect of business
coming within the scope of this Contract, or for incurred but not reported
losses (IBNR), hereinafter "The Stated Reserves", it shall forward to the
Reinsurers a clear statement of the Reinsurers' proportion of The Stated
Reserves detailing separately the amounts involved for known outstanding losses
and allocated loss expenses, unearned premium and IBNR, and also how those
amounts are calculated. Reserves for IBNR shall not exceed the actual amount of
IBNR carried on the books of the Reassured for statutory reporting purposes.

The Reinsurers, promptly upon receipt of the Reassured's statement, shall apply
for, and secure delivery to the Reassured of, clean irrevocable and
unconditional Letters of Credit or such equivalent funding acceptable to the
Reassured, for the benefit of the Reassured in amounts equal to their proportion
of The Stated Reserves.

                                  Page 14 of 34

<PAGE>

In the event that the Provisional Premium adjustment and/or experience
adjustment calculation hereon results in a reduced level of collateral funding
hereunder, the Reassured agrees to return such excess collateral to Reinsurers
within ninety (90) days of the date the adjustment is made.

All Letters of Credit procured pursuant to this Contract shall be issued by a
Bank which is a Member of the Federal Reserve and acceptable to the authorities
or departments mentioned in the first paragraph of this Article current at the
date of the Reassured's statement. Such Letter of Credit shall be in full
conformity with the requirements of such authorities or departments.

Further, all such Letters of Credit shall be "Evergreen" in that they shall be
issued for an initial period of not less than one year and shall be
automatically extended for one year from their original expiration dates and
subsequently from their extended expiration dates unless and until, at least
thirty days before any expiration date, the issuing bank gives notice to the
Reassured by registered mail that the issuing bank elects not to extend the life
of the Letter of Credit in question beyond its forthcoming expiration date.

In consideration of the contract of the Reinsurers to furnish such Letters of
Credit to the Reassured to enable it to obtain credit for the reinsurance
provided under this Contract, the Reassured hereby undertakes to hold such
Letters of Credit and the proceeds of any drawings made upon thorn in trust for
the Reinsurers and to use and apply the proceeds of any such drawings for the
following purposes only:

a.   To pay the Reinsurers' share or to reimburse the Reassured for that share
     of any liability for loss or allocated loss expense reinsured by this
     Contract or for unearned premium in respect of business coming within the
     scope of this Contract;

b.   To refund to the Reinsurers any balance by which the amount of the Letter
     of Credit exceeds the Reinsurers' proportion of any liability for loss or
     allocated loss expense reinsured by this Contract, incurred but not
     reported losses (IBNR) or for unearned premium in respect of business
     coming within the scope of this Contract.

c.   In the event that one or more of the Reinsurers participating in the Letter
     of Credit gives timely notice of cancellation or non-renewal of their
     participation in the Letter of Credit and provided that the obligations
     secured by the Letter of Credit remain unliquidated and undischarged at the
     time of receipt by the Reassured of such notice, the Reassured shall create
     a cash deposit account, separate from its own assets, in an amount equal to
     the participation of the canceling or non-renewing Reinsurer(s) in the
     Letter of Credit. That cash deposit account tray then be used as in
     subparagraphs a. and b. above. It is understood and agreed that this
     procedure may only be implemented before the expiry of the notice period in
     respect of cancellation or non-renewal and that if it is implemented, the
     Reassured will ensure that a rate of interest is obtained for the
     Reinsurers on such a deposit account that is at least equal to the rate
     which would be paid by Citibank N.A. in

                                  Page 15 of 34

<PAGE>

     New York, and further that the Reassured will account to the Reinsurers on
     an annual basis for all interest accruing on the cash deposit account for
     the benefit of the Reinsurers.

The issuing bank shall have no responsibility whatsoever in connection with the
propriety of drawings made by the Reassured on the Letters of Credit issued
under this Contract or in connection with the disposition of any funds so
withdrawn, except to ensure that drawings are made only upon the order of
properly authorized representatives of the Reassured.

All Letters of Credit procured for the Reassured under this Contract shall be
adjusted at annual intervals, or more frequently as agreed (but never more
frequently than quarterly), to reflect the current balance of the Reinsurers'
proportion of the Reassured's known outstanding loss and allocated loss expense
reserves and unearned premium reserves, and the Reassured shall produce a
statement for this purpose detailed in the same way as the original statement on
the basis of which such Letters of Credit were first issued. If the statement
shows that the Reinsurers' proportion of such losses and allocated expenses,
IBNR or unearned premium reserves exceeds the current amount of the Letters of
Credit, the Reinsurers shall, within thirty days after receipt of the statement,
secure the amendment of the Letters of Credit increasing their amount to the
amount of the current balance of these items. If, however, the statement shows
that the Reinsurers' proportion of the current balance of those items is less
than the amount of the Letters of Credit the Reassured shall, within thirty days
of receipt of a written request from the Reinsurers to do so, facilitate the
release of the excessive security by authorizing the amendment of the Letters of
Credit so as to reduce their amount to the current balance required.

All expenses incurred in the establishment or maintenance of such Letters of
Credit shall be paid by the Reinsurers.

                                   ARTICLE 16

INTEREST PENALTY

The provisions of this Article shall not be implemented unless specifically
invoked, in writing, by the Reassured or Reinsurer. The interest amounts
provided for in this Article will apply to the Reinsurer or to the Reassured in
the following circumstances:

     1.   Loss payment owed by the Reinsurer to the Reassured shall have a due
          date to the Reassured of forty-five (45) calendar days following the
          date of the Reinsurer's receipt of the billing, but no later than
          ninety (90) days from the Reassured's date of the billing.

     2.   Payment of any premium installments shall be due to the Reinsurer
          within thirty (30) calendar days of the date specified in this
          Contract. Any

                                  Page 16 of 34

<PAGE>

          premium adjustments will be due by the debtor party within sixty (60)
          calendar days of the date specified in this Contract.

     3.   Payment of return premiums, commissions, profit sharing, or any other
          amounts not provided in paragraphs l or 2 above, shall he due by the
          debtor party within sixty (60) calendar days of the due date specified
          in this Contract. If no due date is specified, the due date shall be
          sixty (60) days following the date of the debtor party's receipt of
          the billing, but no later than ninety (90) days from the creditor
          party's date of the billing.

     4.   Failure by the Reinsurer or Reassured to comply with their respective
          payment obligations within the time periods as herein provided will
          result in a compound interest penalty payable at a rate equal to the
          ninety (90) day Treasury Bill rate as published is the Money Rate
          Section or any successor section of the Wall Street Journal on the
          first business day following the date a remittance becomes due, plus
          2% per annum, to be compounded and adjusted quarterly. Any interest
          which occurs pursuant to this Article shall be calculated by the pasty
          to which it is owed. The accumulation of the number of days that any
          payment is past due will stop on the date the Intermediary, where
          applicable, receives payment.

     5.   The validity of any claim or payment may be contested under the
          provisions of this Contract. If the debtor party prevails in such
          action, there shall be no interest penalty due. Otherwise, any
          interest will be calculated and due as outlined above.

     6.   If a Reinsurer advances payment of any claim it is contesting, and
          prevails such action, the Reassured shall return such payment plus pay
          interest on same, calculated as per the provisions of this Article.

     7.   Any interest which occurs pursuant to this Article may be waived by
          the party to which it is owed. Further, any interest which is
          calculated pursuant to this Article that is $100 or less shall be
          waived. Waiver of such interest, however, shall not affect the waiving
          party's right to similar interest for any other failure by the other
          party to make payment when due under this Article.

     8.   Nothing in this Article shall diminish any legal remedies which either
          party may have against the other.

                                   ARTICLE 17

COMMUTATION

The Reassured shall have the right one year after the expiry of this Contract,
but within six (6) years Following the expiry of the contract, provided the
developed rate at that time is strictly below the Maximum hereon, to commute
losses at their discretionary reserves

                                  Page 17 of 34

<PAGE>

(which they may deem to be zero For the purposes hereof). The Reassured will
then give Reinsurers a full and final release of all future liabilities under
this Contract.

Notwithstanding the foregoing, the Reassured shall have the right six (6) years
after the expiry of the Contract, or at anytime thereafter, provided the
developed rate at that time is strictly below the Maximum hereon, to continue
losses at reserves to be mutually agreed by the Reassured and Reinsurers. The
Reassured will then give Reinsurers a full and final release of all future
liabilities under this Contract.

                                   ARTICLE 18

CURRENCY

The currency to be used for all purposes of this Contract shall be United States
Dollars. All amounts paid or received by the Reassured in any other currency
shall be converted into United States Dollars at the rates of exchange at which
such transactions are converted in the books of the Reassured.

                                   ARTICLE 19

TAX PROVISIONS

The Reassured shall be liable for all taxes (except Federal Excise Tax) levied
on it with respect to premiums payable to the Reinsurers hereunder. Federal
Excise Tax applies only to those Reinsurers, excepting Underwriters at Lloyd's,
London and other Reinsurers exempt from the Federal Excise Tax, who are
domiciled outside the United States of America.

To the extent that such premium is subject to Federal Excise Tax, the Reinsurers
hereby agree to allow as a deduction from the premium, for the purpose of paying
Federal Excise Tax, all applicable percentages of the premium payable hereon.

In the event of any return premium becoming due hereunder the Reinsurers will
deduct all applicable Percentages from the amount of the return, and the
Reassured or its agents shall take steps to recover the tax from the Government
of the United States of America

In consideration of the terms under which this Contract is issued, the Reassured
undertakes not to claim any deduction in respect of premium payable hereon when
making tax returns, other than Income or Profits tax returns, to any fiscal
authority of the United States of America or any State or Territory thereof.

                                  Page 18 of 34

<PAGE>

                                   ARTICLE 20

INSOLVENCY OF THE REASSURED

Amounts due to the Reassured under this Contract shall be payable by the
Reinsurers on the basis of the liability of the Reassured under the original
policies reinsured hereunder without diminution because of the insolvency of any
one or all of the Reassured Companies.

In the event of the insolvency of the Reassured and the appointment of a
Liquidator, Receiver, Conservator or Statutory Successor, the Liquidator or
Receiver or Conservator or Statutory Successor of the Reassured shall give
written notice to the Reinsurers of the pendency of any claim against the
insolvent Reassured on the original policies reinsured hereunder within a
reasonable time after such claim is filed in the insolvency proceedings. During
the pendency of such claim the Reinsurers may investigate such claim and
intervene, at their own expense, in the proceedings where such claim is to be
adjudicated and interpose any defense or defenses which they may deem available
to the Reassured or its Liquidator or Receiver or Conservator or Statutory
Successor. The expense thus incurred by the Reinsurers shall he chargeable,
subject to court approval, against the insolvent Reassured as part of the
expense of liquidation to the extent of a proportionate share of the benefit
which may accrue to the Reassured solely as a result of the defense so
undertaken by the Reinsurers.

When two or more Reinsurers are involved in the same claim and a majority in
interest elect to investigate the claim and/or to interpose defense to such
claim, the expense shall be apportioned in accordance with the terms of the
above paragraph as though such expense had been incurred by the Reassured.

Should the Reassured go into liquidation or should a receiver be appointed, the
Reinsurers shall be entitled to deduct from any sums which may be or may become
due to the Reassured under this Contract any sums which are due to the
Reinsurers from the Reassured under this Contract and which are payable at a
fixed or stated date, as well as any other sums due to the Reinsurers which are
permitted to be offset under applicable law.

In the event of the insolvency of the Reassured, the amounts due to the
Reassured under this Contract shall be payable by the Reinsurers directly to the
Reassured or to its Liquidator, Receiver or Conservator or Statutory Successor.

It is the mutual intent of the parties that, in the event of the insolvency of
the Reassured, this Article shall he read to conform with the state or
regulatory requirements of the jurisdiction in which the liquidation or
receivership is conducted In the event that any provision of this Article is in
conflict with such state or regulatory requirements, then such provision shall
be reformed to be in compliance with such state or regulatory requirements.

                                  Page 19 of 34

<PAGE>

                                   ARTICLE 21

OFFSET

Each party hereto shall lave, and may exercise in the event of insolvency of the
Other or the non-payment by the other of obligations when due hereunder, the
right to offset any balance or balances whether on account of premiums,
commissions, claims or losses, adjustment expenses, salvage or any amount due
from that party to the other party hereto under this Contract only against any
balance or balances due or to become due to the offsetting party from the other
party under this Contract only. The terms of this Article shall apply separately
to this Contract and to each successive renewal of this Contract.

                                   ARTICLE 22

DELAYS, ERRORS AND OMISSIONS

No inadvertent delay, error or omission shall be held to relieve either party
hereto of any liability which would have attached to them under this Contract if
such delay, error or omission had not been made, provided that rectification is
made immediately upon discovery.

                                   ARTICLE 23

AMENDMENTS AND ALTERATIONS

The terms herein contained comprise the whole Contract between the Reassured and
the Reinsurers and may only be changed in writing, signed by or on behalf of
both parties.

                                   ARTICLE 24

ACCESS TO RECORDS AND CLAIMS REVIEW

All documents and records in the possession of the Reassured concerning this
Contract shall be made available upon reasonable notice at the request of the
Reinsurers for inspection at the Reassured's offices by the Reinsurers or their
nominated representatives for the purposes of obtaining information concerning
this Contract or the subject matter hereof.

Specifically, the Reinsurers shall be entitled to nominate a representative to
assess the Reassured's claims and claims procedures.

For the avoidance of doubt, it is hereby expressly agreed that the rights given
to the Reinsurers by this Article shall continue in effect notwithstanding the
expiration of this Contract and shall be exercised at the Reinsurers' own
expense.

                                  Page 20 of 34

<PAGE>

                                   ARTICLE 25

ARBITRATION

As a condition precedent to any right of action hereunder, all disputes or
differences arising out of or connected with this Contract (whether or not
arising before or after expiration) its interpretation or implementation, shall
be referred to arbitration in Farmington, Connecticut, U.S.A., the city in which
the Reassured's principal office is located.

Arbitration shall he initiated by the delivery of a written notice of demand for
arbitration by one party to the other within a reasonable time after the dispute
has arisen stating the nature of the dispute and the remedy sought. Those
Reinsurers involved in the dispute or other matter in controversy shall be
considered as one party for the purpose of allocating the cost of the
arbitration.

Each party shall appoint an individual as arbitrator and the two so appointed
shall then appoint a third arbitrator. If either party refuses or neglects to
appoint an arbitrator within sixty (60) days, the other party may appoint the
second arbitrator. If the two arbitrators do not agree on a third arbitrator
within sixty (60) days of their appointment, within ten (10) days thereafter the
two arbitrators will request the American Arbitration Association ("AAA") to
appoint a third arbitrator with the qualifications set forth below in this
Article without regard to the AAA's Commercial Arbitration Rules. If the AAA
fails to appoint a third arbitrator within thirty (30) days after its receipt of
the two arbitrators' request, either party may apply to a court of competent
jurisdiction to appoint a third arbitrator with the qualifications set forth
below in this Article. The third arbitrator will immediately notify each party
of his selection. In the event of the resignation or death of any member of the
arbitrator panel, a replacement will be appointed in the same manner as the
resigning or deceased member was appointed.

Each arbitrator shall be an active or retired officer of an insurance or
reinsurance, company or Underwriter at Lloyd's London; no arbitrator shall have
a personal or financial interest in the result of the arbitration, and shall not
be a present or former officer, attorney, or consultant of the Reassured or the
Reinsurer or either's affiliates.

The arbitrators shall interpret this Contract as an honorable engagement and not
as merely a legal obligation; they are relieved of all judicial formalities and
may abstain from following the strict rules of law, and shall make any award
with a view to effecting the general purpose of this Contract in a reasonable
manner with due regard to the custom and usage of the insurance and reinsurance
business.

The arbitrators shall have full discretion to make such orders as they think fit
in connection with all procedural matters in the Arbitration, including but not
limited to the conduct of the reference by written or oral submissions, the
production of documents, the examination of witnesses, and the imposition of
time limits for the taking of necessary procedural steps. The arbitrators shall
also have full discretion to make such orders as

                                  Page 21 of 34

<PAGE>

they think fit with regard to the payment of the costs of the Arbitration
including attorneys' costs and fees.

If more than one Reinsurer is involved in the same dispute, all such Reinsurers
shall constitute and act as one party for purposes of this Article and
communications shall be made by the Reassured to each of the Reinsurers
constituting the one party, provided that nothing herein shall impair the rights
of such Reinsurers to assert several, rather than joint, defenses or claims, nor
be construed as changing the liability of the Reinsurers udder the terms of this
Contract from several to joint.

Any Award or order of the arbitrators or a majority thereof shall be binding on
the parties and there shall be no right of appeal there from.

Except as provided above, arbitration shall be based, insofar as applicable,
upon the procedures of the American Arbitration Association.

                                   ARTICLE 26

SERVICE OF SUIT

This Article applies only to those Reinsurers signatory hereto who are domiciled
outside the United States of America or, should the Reassured be authorized to
do business in the State of New York, those Reinsurers who are unauthorized in
New York as respects suits instituted in New York.

It is agreed that in the event of the failure of the Reinsurers hereon to pay
any amount claimed to be due hereunder, the Reinsurers hereon, at the request of
the Reassured, will submit to the jurisdiction of a Court of competent
jurisdiction within the United States. Nothing in this Clause constitutes or
should be understood to constitute a waiver of Reinsurers' rights to commence an
action in any Court of competent jurisdiction in the United States, to remove an
action to a United States District Court, or to seek a transfer of a case to
another Court as permitted by the laws of the United States or of any State in
the United States.

It is further agreed that service of process in such suit may be made upon
Mendes & Mount, 750 Seventh Avenue, New York, New York 10019, and that in any
suit instituted against any one of them upon this contract, Reinsurers will
abide by the final decision of such Court or of any Appellate Court in the event
of an appeal.

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

Further, pursuant to any statute of any state, territory or district of the
United States which makes provision therefor, Reinsurers hereon hereby designate
the Superintendent,

                                  Page 22 of 34

<PAGE>

Commissioner or Director of Insurance or other officer specified for that
purpose in the statute, or his successor or successors in office, as their true
and lawful attorney upon whom may be served any lawful process in any action,
suit or proceeding instituted by or on behalf of the Reassured or any
beneficiary hereunder arising out of this contract of reinsurance, and hereby
designate the above-named as the person to whom the said officer is authorized
to mail such process or a true copy thereof.

NMA 1998

                                   ARTICLE 27

CONFIDENTIALITY

The confidential nature of this Contract is acknowledged by all parties.
Moreover, the Reinsurers will only disclose to third parties, such as
regulators, auditors, rating agencies, shareholders, reinsurers and the like,
such details of this Contract as are necessary to comply with their obligations
to such third parties as part of their normal business practice.

It is a condition binding on Reinsurers hereon that they may not disclose any
details of this Contract at any time to any other third party without the
agreement of the Reassured.

                                   ARTICLE 28

REGULATORY COMPLIANCE

If any provision of this Contract shall be rendered illegal or unenforceable by
the laws, regulations or public policy of any State in the United States, such
provision shall be considered void in such State, but this shall not affect the
validity or enforceability of any other provision of this Contract, or the
validity or enforceability of such provision in any other jurisdiction.

                                   ARTICLE 29

INTERMEDIARY

Carvill America Incorporated is hereby recognized as the Intermediary
negotiating this Contract for all business hereunder. All communications
including notices, premiums, return premiums, commissions, taxes, losses, loss
adjustment expenses, salvages and loss settlements relating thereto shall he
transmitted to the Reinsurer or the Reassured through Carvill America
Incorporated at The Pinnacle, 3455 Peachtree Road, N.E., Suite 375, Atlanta
Georgia 30326. Payments by the Reassured to the Intermediary will be deemed to
constitute payment to the Reinsurer. Payments by the Reinsurer to the
Intermediary

                                  Page 23 of 34

<PAGE>

will be deemed only to constitute payment to the Reassured to the extent that
such payments arc actually received by the Reassured.

                                   ARTICLE 30

GOVERNING LAW

This Contract shall be governed by and construed in accordance with the laws of
the State of Connecticut.

                                   ARTICLE 31

PARTICIPATION

This Contract obligates each of their Reinsurers for their proportion of the
interests and liabilities set forth under this Contract, such proportions being
shown in the attached Schedules.

                                   ARTICLE 32

SEVERAL LIABILITY NOTICE

The subscribing Reinsurers' obligations under contracts of reinsurance to which
they subscribe are several and not joint and are limited solely to the extent of
their individual subscriptions. The subscribing Reinsurers are not responsible
for the subscription of any co-subscribing Reinsurer who for any reason does not
satisfy all or part of its obligations.

IN WITNESS WHEREOF the parties hereto have, by their duly authorized
representative, executed this Contract as follows:

For and on behalf of the Reassured:

Signed by /s/ Stephen J. Sills
          ---------------------------

And for the Reinsurers by means of and in accordance with the attached
Schedules, which shall be considered to form an integral part of this Contract.

                                  Page 24 of 34

<PAGE>

NUCLEAR INCIDENT EXCLUSION CLAUSE - LIABILITY - REINSURANCE (U.S.A.)

(1)  This reinsurance does not cover any loss or liability accruing to the
     Reassured as a member of, or subscriber to, any association of insurers or
     reinsurers formed for the purpose of covering nuclear energy risks or as a
     direct or indirect reinsurer of any such member, subscriber or association.

(2)  Without in any way restricting the operation of paragraph (1) of this
     Clause it is understood and agreed that for all purposes of this
     reinsurance all the original policies of the Reassured (new, renewal and
     replacement) of the classes specified in Clause II of this paragraph (2)
     from the tithe specified in Clause III in this paragraph (2) shall be
     deemed to include the following provision (specified as the Limited
     Exclusion Provision).

     LIMITED EXCLUSION PROVISION:

     I.   It is agreed that the policy does not apply under any liability
          coverage, to: injury, sickness, disease, death or destruction
                        bodily injury or property damage

          with respect to which an insured under the policy is also an insured
          under a nuclear energy liability policy issued by Nuclear Energy
          Liability Insurance Association, Mutual Atomic Energy Liability
          Underwriters or Nuclear Insurance Association of Canada, or would be
          an insured under any such policy but for its termination upon
          exhaustion of its limit of liability.

     II.  Family Automobile Policies (liability only), Special Automobile
          Policies (private passenger automobiles, liability only), Farmers
          Comprehensive Personal Liability Policies (liability only),
          Comprehensive Personal Liability Policies (liability only) or policies
          of a similar nature; and the liability portion of combination forms
          related to the four classes of policies stated above, such as the
          Comprehensive Dwelling Policy and the applicable types of Homeowners
          Policies.

     III. The inception dates and thereafter of all original policies as
          described in II above, whether new, renewal or replacement, being
          policies which either

          (a)  become effective on or after 1st May, 1960, or

          (b)  become effective before that date and contain the Limited
               Exclusion Provision set out above;

          provided this paragraph (2) shall not be applicable to Family
          Automobile Policies, Special Automobile Policies, or policies or
          combination policies of a similar nature, issued by the Reassure on
          New York risks, until 90

                                  Page 25 of 34

<PAGE>

          days following approval of the Limited Exclusion Provision by the
          Governmental Authority having jurisdiction thereof.

(3)  Except for those classes of policies specified in Clause II of paragraph
     (2) and without in any way restricting the operation of paragraph (1) of
     this Clause, it is understood and agreed that for all purposes of this
     reinsurance the original liability policies of the Reassured (new, renewal
     and replacement) affording the following coverages:

          Owners, Landlords and Tenants Liability, Contractual Liability,
          Elevator Liability, Owners or Contractors (including railroad)
          Protective Liability, Manufacturers and Contractors Liability, Product
          Liability, Professional and Malpractice Liability, Storekeepers
          Liability, Garage Liability, Automobile Liability (including
          Massachusetts Motor Vehicle or Garage Liability)

     shall be deemed to include, with respect to such coverages, from the time
     specified in Clause V of this paragraph (3), the following provision
     (specified as the Broad Exclusion Provision):

BROAD EXCLUSION PROVISION.*

It is agreed that the policy does not apply:

I.   Under any Liability Coverage, to injury, sickness, disease, death or
     destruction bodily injury or property damage

     (a)  with respect to which an insured under the policy is also an insured
          under a nuclear energy liability policy issued by Nuclear Energy
          Liability Insurance Association, Mutual Atomic Energy Liability
          Underwriters or Nuclear Insurance Association of Canada, or would be
          an insured under any such policy but for its termination upon
          exhaustion of its limit of liability;

          or

     (b)  resulting from, the hazardous properties of nuclear material and with
          respect to which (1) any person or organization is required to
          maintain financial protection pursuant to the Atomic Energy Act of
          1954, or any law amendatory thereof, or (2) the insured is, or had
          this policy not been issued would be, entitled to indemnity from the
          United States of America, or any agency thereof, under any agreement
          entered into by the United States of America, or any agency thereof,
          with any person or organization.

II.  Under any Medical Payments Coverage, or under any Supplementary Payments
     Provision relating to immediate medical or surgical relief first aid,
     to expenses incurred with respect to bodily injury, sickness, disease or
     death

                                  Page 26 of 34

<PAGE>

     bodily injury resulting from the hazardous properties of nuclear material
     and arising out of the operation of a nuclear facility by any person or
     organization.

III. Under any Liability Coverage, to injury, sickness, disease, death or
     destruction bodily injury or property damage resulting from the hazardous
     properties of nuclear material, if

     (a)  the nuclear material (1) is at any nuclear facility owned by, or
          operated by or on behalf of, an insured or (2) has been discharged or
          dispersed therefrom;

     (b)  the nuclear material is contained in spent fuel or waste at any time
          possessed, handled, used, processed, stored, transported or disposed
          of by or on behalf of an insured; or

     (c)  the injury, sickness, disease, death or destruction bodily injury or
          property damage arises out of the furnishing by an insured of
          services, materials, parts or equipment in connection with the
          planning, construction, maintenance, operation or use of any nuclear
          facility, but if such facility is located within the United States of
          America, its territories, or possessions or Canada, this exclusion (c)
          applies only to injury to or destruction of property at such nuclear
          facility, property damage to such nuclear facility and any property
          thereat.

IV.  As used in this endorsement:

     "HAZARDOUS PROPERTIES" include, radioactive, toxic or explosive properties;
     "NUCLEAR MATERIAL" means source material, special nuclear material or
     byproduct material; "SOURCE MATERIAL", "SPECIAL NUCLEAR MATERIAL", and
     "BYPRODUCT MATERIAL" have the meanings given them in the Atomic Energy Act
     of 1954 or in any law amendatory thereof; "SPENT FUEL" means any fuel
     element or fuel component, solid or liquid, which has been used or exposed
     to radiation in a nuclear reactor; "WASTE" means any waste material (1)
     containing by product material and (2) resulting from the operation by any
     person or organization of any nuclear facility included within the
     definition of nuclear facility under paragraph (a) or (b) thereof; "NUCLEAR
     FACILITY" means

     (a)  any nuclear reactor,

     (b)  any equipment or device designed or used for (1) separating the
          isotopes of uranium or plutonium, (2) processing or utilizing spent
          fuel, or (3) handling, processing or packaging waste,

     (c)  any equipment or device used for the processing, fabricating or
          alloying of special nuclear material if at any tinge the total amount

                                  Page 27 of 34

<PAGE>

          of such material in the custody of the insured at the premises where
          such equipment or device is located consists of or contains more than
          25 grams of plutonium or uranium 233 or airy combination thereof, or
          more than 250 grains of uranium 235,

     (d)  any structure, basin, excavation, premises or place prepared or used
          for the storage or disposal of waste,

and includes the site on which any of the foregoing is located, all operations
conducted on such site and all premises used for such operations; "NUCLEAR
REACTOR" means any apparatus designed or used to sustain nuclear fission in a
self-supporting chain reaction or to contain a critical mass of fissionable
material;

     With respect to injury to or destruction of property, the word "injury" or
     "destruction",

     "property damage" includes all forms of radioactive contamination of
     property,

     includes all farms of radioactive contamination of property.

V.   The inception dates and thereafter of all original policies affording
     coverages; specified in this paragraph (3), whether new, renewal or
     replacement, being policies which become effective on or after 1st May,
     1960, provided this paragraph (3) shall not be applicable to

          (i)  Garage and Automobile Policies issued by the Reassured on New
               York risks.

               or

          (ii) statutory liability insurance required under Chapter 90, General
               Laws of Massachusetts,

     until 90 days following approval of the Broad Exclusion Provision by the
     Governmental Authority having jurisdiction thereof.

(4)  Without in any way restricting the operation of paragraph (l) of this
     Clause, it is understood and agreed that paragraphs (2) and (3) above are
     not applicable to original liability policies of the Reassured in Canada
     and that with respect to such policies this Clause shall be deemed to
     include the Nuclear Energy Liability Exclusion Provisions adopted by the
     Canadian Underwriters' Association or the Independent Insurance Conference
     of Canada.

*NOTE. The words printed in italics in the Limited Exclusion Provision and in
       the Broad Exclusion Provision shall apply only in relation to original
       liability policies which include a Limited Exclusion Provision or a Broad
       Exclusion Provision containing those words.

                                  Page 28 of 34

<PAGE>

NUCLEAR INCIDENT EXCLUSION CLAUSE - LIABILITY - REINSURANCE - CANADA

1.   This Agreement does not cover any loss or liability accruing to the
     Reinsured as a member of, or subscriber to, any association of insurers or
     reinsurers formed for the purpose of covering nuclear energy risks or as a
     direct or indirect reinsurers' of any such member, subscriber or
     association.

2.   Without in any way restricting the operation of paragraph I of this clause
     it is agreed that for all purposes of this Agreement all the original
     liability contracts of the Reinsured, whether new, renewal or replacement,
     of the following classes, namely,

     Personal Liability.
     Farmers' Liability.
     Storekeepers' Liability.

     which become effective on or alter 31st December 1992, shall be deemed to
     include, from their inception dates and thereafter, the following
     provision:

     Limited Exclusion Provision.

     This Policy does not apply to bodily injury or property damage with respect
     to which the Insured is also insured under a contract of nuclear energy
     liability insurance (whether the Insured is unnamed in such contract and
     whether or not it is legally enforceable by the Insured) issued by the
     Nuclear Insurance Association of Canada or any other group or pool of
     insurers or would be an Insured under any such policy but for its
     termination upon exhaustion of its limits of liability.

     With respect to property, loss of such property shall be deemed to be
     property damage.

3.   Without in any way restricting the operation of paragraph I of this clause
     it is agreed that for all purposes of this Agreement all the original
     liability contracts of the Reinsured, whether new, renewal or replacement,
     of any class whatsoever (other than Personal Liability, Farmers' Liability,
     Storekeepers' Liability or Automobile Liability contracts), which become
     effective on or after 31st December 1992, shall be deemed to include from
     their inception dates and thereafter, the following provision:

     Broad Exclusion Provision.

     It is agreed that this Policy does not apply:

     (a)  to liability imposed by or arising from any nuclear liability act, law
          or statute or any law amendatory thereof; nor

                                  Page 29 of 34

<PAGE>

     (b)  to bodily injury or property damage with respect to which an Insured
          under this policy is also insured under a contract of nuclear energy
          liability insurance (whether the Insured is unnamed in such contract
          and whether or not it is legally enforceable by the Insured) issued by
          the Nuclear Insurance Association of Canada or any other insurer or
          group or pool of insurers or would be an Insured under any such policy
          but for its termination upon exhaustion of its limit or liability; nor

     (c)  to bodily injury or property damage resulting directly or indirectly
          from the nuclear energy hazard arising from:

          (i)  the ownership, maintenance, operation or use of a nuclear
               facility by or on behalf of an Insured;

          (ii) the furnishing by an Insured of services, materials, parts or
               equipment in connection with the planning, construction,
               maintenance, operation or use of any nuclear facility; and

          (iii) the possession, consumption, use, handling, disposal or
               transportation of fissionable substances, or of other radioactive
               material (except radioactive isotopes, away from a nuclear
               facility, which have reached the final stage of fabrication so as
               to be usable for any scientific, medical, agricultural,
               commercial or industrial purpose) used, distributed, handled or
               sold by an Insured.

     As used in this policy:

1.   The term "nuclear energy hazard" means the radioactive, toxic, explosive,
     or other hazardous properties of radioactive material;

2.   The term "radioactive material" means uranium, thorium, plutonium,
     neptunium, their respective derivatives and compounds, radioactive isotopes
     of other elements and any other substances which may be designated by or
     pursuant to any law, act or statute, or law amendatory thereof as being
     prescribed substances capable of releasing atomic energy, or as being
     requisite for the production, use of application of atomic energy;

3.   The term "nuclear facility" means:

     (a)  any apparatus designed or used to sustain nuclear fission in
          self-supporting chain reaction or to contain a critical mass of
          plutonium, thorium or uranium or any one or more of them;

     (b)  any equipment or device designed or used for (i) separating the
          isotopes of plutonium, thorium and uranium or any one or more of
          them,, (ii) processing or utilizing spent fuel, or (iii) handling,
          processing or packaging waste;

                                  Page 30 of 34

<PAGE>

     (c)  any equipment or device used fir the processing, fabricating or
          alloying of plutonium, thorium or uranium enriched in the isotope
          uranium 233 or in the isotope uranium 235, or any one or more of them
          if at any time the total amount oh such material in the custody of the
          Insured at the premises where such equipment or device is located
          consists of or contains more than 25 grams of plutonium or uranium 233
          or any combination thereof; or more than 250 grams of uranium 235;

     (d)  any structure, basin, excavation, premises or place prepared or used
          for the storage or disposal of waste radioactive material;

     and includes the site on which any of the foregoing is located, together
     with all operations conducted thereon and all premises used for such
     operations.

4.   The term "fissionable substance" means any prescribed substance that is, or
     from which can be obtained, a substance capable of releasing atomic energy
     by nuclear fission.

5.   With respect to property, loss of use of such property shall be deemed to
     be property damage.

NMA 1979a (01/04190) Form approved by Lloyd's Underwriters' Non-Marine
Association Limited

                                  Page 31 of 34

<PAGE>

           NUCLEAR ENERGY RISKS EXCLUSION CLAUSE (REINSURANCE) (1994)

                      (WORLDWIDE EXCLUDING U.S.A. & CANADA)

This agreement shall exclude Nuclear Energy Risks whether such risks are written
directly and/or by way of reinsurance and/or via Pools and/or Associations.

For all purposes of this agreement Nuclear Energy Risks shall mean all first
party and/or third party insurances or reinsurances (other than Workers'
Compensation and Employers' Liability) in respect of:-

(I)  All Property on the site of a nuclear power station.
     Nuclear Reactors, reactor buildings and plant and equipment therein on any
     site other than a nuclear power station.

(II) All Property, on any site (including but not limited to the sites referred
     to in (I) above) used or having been used for:

     a)   The generation of nuclear energy; or
     b)   The Production, Use or Storage of Nuclear Material.

(III) Any other Property eligible for insurance by the relevant local Nuclear
     Insurance Pool and/or Association but only to the extent of the
     requirements of that local Pool and/or Association.

(IV) The supply of goods and services to any of the sites, described in (I) to
     (III) above, unless such insurances or reinsurances shall exclude the
     perils of irradiation and contamination by Nuclear Material.

Except as undernoted, Nuclear Energy Risks shall not include: -

(i)  Any insurance or reinsurance in respect of the construction or erection or
     installation or replacement or repair or maintenance or decommissioning of
     Property as described in (I) to (III) above (including contractors' plant
     and equipment);

(ii) Any Machinery Breakdown or other Engineering insurance or reinsurance not
     coming within the scope of (I) above;

Provided always that such insurance or reinsurance shall exclude the perils of
irradiation and contamination by Nuclear Material.

However, the above exemption shall not extend to: -

(1)  The provision of any insurance or reinsurance whatsoever in respect of:

     (a)  Nuclear Material;

                                  Page 32 of 34

<PAGE>

     (b)  Any Property in the High Radioactivity Zone or Area of any Nuclear
          Installation as from the introduction of Nuclear Material or - for
          reactor installations - as from fuel loading or first criticality
          where so agreed with the relevant local Nuclear Insurance Pool and/or
          Association.

(2)  The provision of any insurance or reinsurance for the undernoted perils: -

     -    Fire, lightning, explosion;

     -    Earthquake;

     -    Aircraft and other aerial devices or articles dropped therefrom;

     -    Irradiation and radioactive contamination;

     -    Any other peril insured by the relevant local Nuclear Insurance Pool
          and/or Association;

in respect of any other Property not specified in (1) above which directly
involves the Production, Use or Storage of Nuclear Material as from the
introduction of Nuclear Material into such Property.

Definitions

"Nuclear Material" means:-

(i)  Nuclear fuel, other than natural uranium and depleted uranium, capable of
     producing energy by a self-sustaining chain process of nuclear fission
     outside a Nuclear Reactor, either alone or in combination with some other
     material; and

(ii) Radioactive Products or Waste.

"Radioactive Products or Waste" means any radioactive material produced in, or
any material made radioactive by exposure to the radiation incidental to the
production or utilization of nuclear fuel, but does not include radioisotopes
which have reached the final stage of fabrication so as to be usable for any
scientific, medical, agricultural, commercial or industrial purposes.

"Nuclear Installation" means:-

(i)  Any Nuclear Reactor;

(ii) Any factory using nuclear fuel for the production of Nuclear Material, or
     any factory for the processing of Nuclear Material, including any factory
     for the reprocessing of irradiated nuclear fuel; and

(iii) Any facility where Nuclear Material is stored, other than storage
     incidental to the carriage of such material.

"Nuclear Reactor" means any structure containing nuclear fuel in such an
arrangement that a self-sustaining chain process of nuclear fission can occur
therein without an additional source of neutrons.

                                  Page 33 of 34

<PAGE>

"Production, Use or Storage of Nuclear Material" means the production,
manufacture, enrichment, conditioning, processing, reprocessing, use, storage,
handling and disposal of Nuclear Material.

"Property" shall mean all land, buildings, structures, plant, equipment,
vehicles, contents (including but not limited to liquids and gases) and all
materials of whatever description whether fixed or not.

"High Radioactivity Zone or Area" means:-

(i)  For nuclear power stations and Nuclear Reactors, the vessel or structure
     which immediately contains the core (including its supports and shrouding)
     and all the contents thereof, the fuel elements, the control rods and the
     irradiated fuel store; and

(ii) For non-reactor Nuclear Installations, any area where the level of
     radioactivity requires the provision of a biological shield.

                                  Page 34 of 34

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