Document:

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                          REGISTRATION RIGHTS AGREEMENT

         REGISTRATION RIGHTS AGREEMENT dated as of August __, 2001 between Wire
One Technologies, Inc., a Delaware corporation (the "Company"), and the investor
listed on the signature page hereto ("Purchaser"). Capitalized terms used herein
but not otherwise defined shall have the meaning ascribed to them in the
Subscription Agreement (defined below).

                              W I T N E S S E T H:

         WHEREAS, the Company and Purchaser have entered into a Subscription
Agreement, dated as of the date hereof (the "Subscription Agreement"), pursuant
to which Purchaser subscribed to purchase, at the Closing, the number of shares
of Common Stock and Warrants set forth on the signature page to the Subscription
Agreement. As used herein, the term "Purchasers" shall refer to Purchaser
collectively with all other purchasers of shares of Common Stock or Warrants in
connection with the Offering, each of whom has or will execute a Subscription
Agreement. The shares of Common Stock purchased by the Purchasers in the
Offering are referred to collectively as "Common Shares", and the shares of
Common Stock issuable upon exercise of the Warrants issued to the Purchasers are
referred to as "Warrant Shares." The Common Shares and the Warrant Shares are
hereinafter referred to collectively as "Registrable Stock".

         NOW, THEREFORE, in consideration of the respective covenants and
conditions of the parties set forth herein and in the Subscription Agreement,
and for good and valuable consideration, the receipt and sufficiency of which
are hereby acknowledged, the parties hereto, intending to be legally bound,
agree as follows:

         1. Registration of Registrable Stock.

         (a) Filing of Registration Statement. The Company shall use its
reasonable best efforts to prepare and file within 30 days after the Closing
Date a registration statement on Form S-3 (the "Registration Statement") with
the Securities and Exchange Commission (the "SEC") under the Securities Act of
1933, as amended, and the rules and regulations promulgated thereunder
(collectively, the "Securities Act") covering the offering and sale of the
Registrable Stock by the Purchasers in privately negotiated transactions,
"brokers' transactions" or in transactions directly with a "market maker," as
such terms are defined in paragraphs (f) and (g) of Rule 144 under the
Securities Act ("Brokers' Transactions").

         (b) Effectiveness; Amendments. The Company shall use its reasonable
best efforts (including responding to SEC comments within 10 business days after
receipt of such comments) to file and cause to be declared effective within the
earlier of 90 days after the Closing Date or five business days after receiving
a no-review status from the SEC (the "Effective Date") and, except as set forth
below, to remain effective under the Securities Act, the Registration Statement
and will prepare and file with the SEC any amendments or post-effective
amendments as may be necessary to keep the Registration Statement effective
under the Securities Act. The Company will promptly notify the Purchasers in
writing of the date on which the Registration Statement is declared effective.
Notwithstanding the foregoing, (i) the Company shall not be required to keep the
Registration Statement effective for purposes of the sale of Registrable Stock
thereunder at any time after the earlier of (A) the date on which all shares of
Registrable Stock have been sold or are no longer outstanding, and (B) the date
which is two years following the acquisition from the Company of the Registrable
Stock, or such earlier date as of which the Purchasers shall be able to make use

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of the safe-harbor provisions of Rule 144(k) under the Securities Act (or any
successor rule) with respect to sales of Registrable Stock.

         If the Registration Statement has not been declared effective by the
SEC on or prior to the Effective Date or if after the Effective Date, a Blackout
Event (as defined in (paragraph (e) below)) has occurred and continues for more
than thirty (30) days in the aggregate during any twelve (12) month period (such
event, a "Registration Default"), the Company shall pay liquidated damages
("Liquidated Damages") to each holder of Registrable Securities equal to 1.5% of
the aggregate dollar amount originally invested by such holder as listed on the
signature page to the Subscription Agreement of such holder for each thirty (30)
day period or portion thereof that the Registration Default continues. The
Company shall not be responsible for any Liquidated Damages to any holder other
than the original investors that executed Subscription Agreements. Following the
cure of all Registration Defaults relating to any particular Registrable
Security, the accrual of Liquidated Damages with respect to such Registration
Default will cease.

         (c) Copies of Documents. During the period that the Company has agreed
to use its reasonable best efforts to cause the Registration Statement to remain
effective (the "Effectiveness Period"), the Company shall furnish to each
Purchaser such number of copies of the Registration Statement, the prospectus
included therein (the "Prospectus") and any amendments and supplements thereto
and any documents incorporated by reference in the Registration Statement as
such Purchaser shall reasonably request.

         (d) Blue Sky Compliance. The Company shall register or qualify or
cooperate with the Purchasers in connection with the notification, coordination,
registration or qualification (or obtain exemption from such registration or
qualification) of the Registrable Stock under such other securities or blue sky
laws of such jurisdictions in the United States as the Purchasers reasonably
shall request and do any and all other acts and things which may be reasonably
necessary to enable the Purchasers to consummate the disposition of the
Registrable Stock by them under the Registration Statement in such jurisdictions
during the Effectiveness Period; provided, however, that in no event shall the
Company be required to qualify to do business as a foreign corporation in any
jurisdiction where it is not so qualified, to subject itself to taxation in any
jurisdiction where it has not theretofore done so or to take any action which
would subject it to general service of process in any such jurisdiction where it
is not then so subject.

         (e) Notification. During the Effectiveness Period, the Company shall
notify the Purchasers promptly, and (if requested by any Purchaser) confirm such
notice in writing, (i) of any request by the SEC or any other regulatory
authority for amendments or supplements to the Registration Statement or the
Prospectus or for additional information relating thereto, (ii) of the issuance
by the SEC of any stop order suspending the effectiveness of the Registration
Statement or the initiation of any proceedings for that purpose, (iii) of the
receipt by the Company of any notification or stop order with respect to the
suspension of the registration, qualification or exemption from registration or
qualification of any of the shares of Registrable Stock covered by the
Registration Statement for sale in any jurisdiction or the initiation or
threatening of any proceeding for such purpose and (iv) of the happening of any
event which makes any statement made in such Registration Statement or in the
Prospectus or any document incorporated or deemed to be incorporated therein by
reference untrue in any material respect or which requires the making of any
changes in such Registration Statement or Prospectus so that such documents will
not contain any untrue statement of a material fact or omit to state any
material fact required to be stated therein or necessary to make the statements
therein, in light of the circumstances under which they were made, not
misleading (each, a "Blackout Event").

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         (f) Supplements and Post-Effective Amendments. During the Effectiveness
Period, upon the occurrence of any event contemplated by clause (i) or (iv) of
paragraph (e) above, the Company will prepare a supplement or post-effective
amendment to the Registration Statement or a supplement to the Prospectus or any
document incorporated therein by reference or file any other required document
so that, as thereafter delivered to the purchasers of the Registrable Stock
being sold thereunder, the Prospectus will not contain any untrue statement of a
material fact or omit to state a material fact required to be stated therein or
necessary to make the statements therein, in light of the circumstances under
which they were made, not misleading; provided, however, that the Company, in
good faith, may delay the filing of any such amendment or supplement for a
reasonable period of time, but in no event more than 15 consecutive trading
days, in order to permit the Company (i) to effect disclosure or disposition or
consummation of any transaction requiring confidential treatment which is being
actively pursued at such time and which would require disclosure in the
Registration Statement or (ii) to negotiate, effect or complete any transaction
which the Company reasonably believes might be jeopardized, delayed or made more
costly to the Company by disclosure in the Registration Statement

         (g) Listing. The Company shall cause the Registrable Stock covered by
the Registration Statement to be listed on each securities exchange or
securities quotation system, if any, on which similar securities issued by the
Company are then listed.

         (h) Correspondence with the SEC. The Company shall, upon request from
any Purchaser, deliver promptly to such Purchaser copies of all correspondence
between the SEC and the Company, its counsel or auditors.

         (i) Stock Certificates. The Company will cooperate with the Purchasers
to facilitate the timely preparation and delivery of certificates representing
Registrable Stock sold under the Registration Statement.

         2. Piggyback Registration. If at any time prior to the second
anniversary of the date hereof the Company proposes to file a registration
statement under the Securities Act with respect to an underwritten offering of
Common Stock (except on Form S-4 or Form S-8 or any successor forms thereto),
for its own account and the Registration Statement contemplated in Section 1(a)
has not been filed or has not been declared effective by the SEC, then the
Company shall give written notice of such proposed filing to the holders of
Registrable Stock as far in advance of the anticipated filing date as is
practicable (the "Piggyback Notice"). The Piggyback Notice shall offer such
holders the opportunity to register such amount of Registrable Stock as each
such holder may request (a "Piggyback Registration"); subject in all events to
the agreement of the underwriter or underwriters of the offering contemplated by
such registration statement that such shares of Registrable Stock can be
included in such registration statement without adversely affecting such
offering. Any reduction in the number of securities to be so offered shall be
(i) first, pro-rata among all security holders who are exercising "piggyback"
registration rights, based on the number of registrable securities originally
proposed to be sold by each of them, and (ii) second, pro-rata among all
security holders who are exercising "demand" registration rights pursuant to a
registration rights agreement with the Company, based on the number of
registrable securities originally proposed to be sold by each of them.

         3. Obligations of Purchasers. Following the filing of the Registration
Statement and during any period that the Registration Statement is effective,
each Purchaser shall:

         (a) not effect any stabilization transactions or engage in any
stabilization activity in connection with the Company's Common Stock in
contravention of Regulation M under the Securities Exchange Act of 1934, as
amended (the "Exchange Act");

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         (b) furnish each broker through whom any Purchaser offers Registrable
Stock such number of copies of the Prospectus as the broker may require and
otherwise comply with prospectus delivery requirements under the Securities Act;

         (c) not (and shall not permit any "affiliated purchaser" (as defined in
Rule 100(b)(1) of Regulation M under the Exchange Act) to) bid for or purchase
for any account in which any Purchaser has a beneficial interest, or attempt to
induce any other person to purchase, any Company Common Stock in contravention
of Regulation M under the Exchange Act;

         (d) cooperate with the Company as the Company fulfills its obligations
under Section 1(d) hereof;

         (e) furnish such information concerning such Purchaser as the Company
may from time to time reasonably request;

         (f) sell Registrable Stock only in privately negotiated transactions or
Brokers' Transactions; and

         (g) not sell under the Registration Statement during any period after
the Company has provided notice to such Purchaser pursuant to Section 1(e)(iv)
above and until the Company provides to such Purchaser notice that the
Registration Statement no longer fails to state a material fact required to be
stated therein, misstates a material fact or omits to state a material fact
required to be stated therein or necessary to make the statements made not
misleading.

         4. Expenses. The Company shall be responsible for the payment of (x)
all registration and filing fees relating to registration of the offering by the
Purchasers of the Registrable Stock, including, without limitation, registration
and filing fees (A) with respect to filings required to be made with the SEC or
the National Association of Securities Dealers and (B) with respect to
registrations and filings made under state securities or blue sky laws and (y)
any expenses incurred by the Company in connection with the preparation of the
Registration Statement and the Prospectus. The Purchasers shall be responsible
for the payment of fees and disbursements of counsel to the Purchasers in
connection with the preparation of the Registration Statement and the Prospectus
and fees paid to brokers in connection with the sale of any of the Registrable
Stock.

         5. Indemnification.

         (a) Indemnity by the Company. The Company shall (i) indemnify and hold
harmless each Purchaser and each person who controls such Purchaser, within the
meaning of Section 15 of the Securities Act, against any losses, claims, damages
or liabilities ("Losses"), to which each such indemnified party may become
subject, under the Securities Act or otherwise, insofar as such Losses (or
actions in respect thereof) arise out of or are based upon any untrue statement
or alleged untrue statement of any material fact contained in the Registration
Statement or Prospectus, as amended or supplemented if the Company has furnished
any supplements or amendments thereto (if used during the period the Company is
required to keep the Registration Statement and Prospectus current), or any
document filed under a state securities or blue sky law (collectively,
"Registration Documents") or insofar as any Losses (or actions in respect
thereof) arise out of or are based upon the omission or alleged omission to
state in any Registration Document a material fact required to be stated therein
or necessary to make the statements made therein (in the case of a prospectus,
in the light of the circumstances under which they were made), not misleading,
and (ii) reimburse each indemnified party for all legal or other expenses

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reasonably incurred by it in connection with investigating or defending any such
Losses or actions, including any amounts paid in settlement of any litigation,
commenced or threatened, if such settlement is effected with the prior written
consent of the Company; provided, however, that the Company shall not be liable
for any Losses arising out of or based upon any untrue statement or omission
made in any Registration Document in reliance upon and in conformity with
written information furnished to the Company by or on behalf of any Purchaser
expressly for use in the preparation of the Registration Document; and provided,
further, that the Company shall not be liable to a particular indemnified party
under the indemnity agreement in this Section 5(a) with respect to the
Prospectus, as amended or supplemented, to the extent that the Loss arises from
the sale of any shares of Registrable Stock by such indemnified party to the
person asserting Loss and to which there was not sent or given, within the time
required by the Securities Act, a copy of the Prospectus as then amended or
supplemented, if the Company has previously furnished copies thereof to such
indemnified party and such Prospectus as then amended or supplemented has
corrected the misstatement or omission at issue.

         (b) Indemnity by Purchasers. Each Purchaser shall, (i) indemnify and
hold harmless the Company, any officer, director, employee or agent of the
Company, and each other person, if any, who controls the Company within the
meaning of Section 15 of the Securities Act against any Losses to which each
such indemnified party may become subject under the Securities Act or otherwise,
insofar as such Losses (or actions in respect thereof) arise out of or are based
upon any untrue statement or alleged untrue statement of any material fact
contained in any Registration Document, or arise out of or are based upon the
omission or alleged omission to state in any Registration Document a material
fact required to be stated therein or necessary to make the statements made
therein (in the case of a prospectus, in the light of the circumstances under
which they were made), not misleading, and (ii) reimburse each indemnified party
for all legal or other expenses reasonably incurred by it in connection with
investigating or defending any such Losses or action, including any amounts paid
in settlement of any litigation, commenced or threatened, if such settlement is
effected with the prior written consent of such Purchaser; provided, however,
that such indemnification or reimbursement shall be payable only if, and to the
extent that, any Losses arise out of or are based upon an untrue statement or
omission made in any Registration Document in reliance upon and in conformity
with written information furnished to the Company by such Purchaser expressly
for use in the preparation thereof.

         (c) Procedure for Indemnification. Promptly after receipt by an
indemnified party, under Section 5(a) or 5(b), of notice of the commencement of
any action, the indemnified party shall notify the indemnifying party in writing
of the commencement thereof, if a claim in respect thereof is to be made against
an indemnifying party under any of these Sections; but the omission of such
notice shall not relieve the indemnifying party from liability which it may have
to the indemnified party under this Section 5, except to the extent that the
indemnifying party is actually prejudiced in any material respect by such
failure to give notice, and shall not relieve the indemnifying party from any
liability which it may have to any indemnified party otherwise than under this
Section 5. In case the event that an action is brought against the indemnified
party and such indemnified party notifies the indemnifying party of the
commencement thereof, the indemnifying party shall be entitled to participate
in, and to the extent that it chooses, to assume the defense thereof with
counsel reasonably satisfactory to the indemnified party, and after notice from
the indemnifying party to the indemnified party that it so chooses, the
indemnifying party shall not be liable for any legal or other expenses
subsequently incurred by the indemnified party in connection with the defense
thereof; provided however, that (i) if the indemnifying party fails to take
reasonable steps necessary to defend diligently the claim within 20 days after
receiving notice from the indemnified party that the indemnified party believes
it has failed to do so, or (ii) if the indemnified party who is a defendant in
any action or proceeding which is also brought against the indemnifying party
reasonably shall have concluded that there are legal defenses available to the

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indemnified party which are not available to the indemnifying party, or (iii) if
representation of both parties by the same counsel is otherwise inappropriate
under applicable standards of professional conduct, the indemnified party shall
have the right to assume or continue its own defense as set forth above. In no
event shall the indemnifying party be responsible for more than one firm of
counsel for all indemnified parties.

         (d) Non-Exclusive Indemnity. Any indemnity agreements contained herein
shall be in addition to any other rights to indemnification or contribution
which any indemnified party may have pursuant to law or contract and shall
remain operative and in full force and effect regardless of any investigation
made or omitted by or on behalf of any indemnified party.

         (e) Contribution. If for any reason the foregoing indemnity is
unavailable, or is insufficient to hold harmless an indemnified party, then the
indemnifying party shall contribute to the amount paid or payable by the
indemnified party as a result of such losses, claims, damages, liabilities or
expenses (i) in such proportion as is appropriate to reflect the relative fault
of the indemnifying party on the one hand and the indemnified party on the other
(determined by reference to, among other things, whether the untrue or alleged
untrue statement of a material fact or the omission or alleged omission to state
a material fact relates to information supplied by the indemnifying party or the
indemnified party and the parties' relative intent, knowledge, access to
information and opportunity to correct or prevent such untrue statement or
omission), or (ii) if the allocation provided by clause (i) above is not
permitted by applicable law or provides a lesser sum to the indemnified party
than the amount hereinafter calculated, in such proportion as is appropriate to
reflect not only the relative fault of the indemnifying party and the
indemnified party, but also the relative benefits received by the indemnifying
party on the one hand (taking into consideration the fact that the provision of
the registration rights hereunder served as an inducement to the Purchasers to
enter into their respective Subscription Agreements) and the indemnified party
on the other, as well as any other relevant equitable considerations. No person
guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of
the Securities Act) shall be entitled to contribution from any person who was
not guilty of such fraudulent misrepresentation.

         6. Miscellaneous.

         (a) Governing Law. This Agreement and the rights and obligations of the
parties hereunder shall be governed by, and construed and interpreted in
accordance with, the laws of the State of New York without giving effect to the
choice of law principles thereof.

         (b) Entire Agreement; Amendment; Waiver. This Agreement and the
Subscription Agreement: (i) contains the entire agreement among the parties
hereto with respect to the subject matter hereof, (ii) supersedes all prior
written agreements and negotiations and oral understandings, if any, with
respect thereto, and (iii) may not be amended or supplemented except by an
instrument or counterparts thereof in writing signed by the Company and each of
the Purchasers. No waiver of any term or provision of this Agreement shall be
effective unless in writing signed by the party to be charged. The waiver by any
party of a breach of any term or provision of this Agreement shall not be
construed as a waiver of any subsequent breach.

         (c) Binding Effect. This Agreement shall be binding on and inure to the
benefit of the parties hereto and their respective legal representatives,
successors and assigns; provided, however, that no party hereto may assign,
delegate or otherwise transfer any of its rights or obligations under this
Agreement without the prior written consent of the other parties hereto.

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         (d) Notices. All notices, requests, consents and other communications
to any party hereunder shall be in writing and shall be given either by personal
service, certified mail, return receipt requested, overnight courier or
telecopy, addressed as follows:

             if to the Company, to:

             Wire One Technologies, Inc.
             225 Long Avenue
             Hillside, NJ  07205
             Attn:  General Counsel
             Facsimile No.:  973-391-9776

             with a copy to:

             Fulbright & Jaworski L.L.P.
             666 Fifth Avenue
             New York, NY  10103
             Attn: Neil Gold, Esq.
             Facsimile No.: 212-318-3400

             if to any Purchaser, to the address set forth on the signature
             page of the Subscription Agreement executed by such Purchaser,

or to such other address as any party may hereafter specify to the other parties
hereto by notice sent in accordance with this Section 6(d). Each such notice,
request or other communication shall be effective when delivered at the address
specified in this Section 6(d).

         (e) Headings; Execution in Counterparts. The headings and captions
contained herein are for convenience of reference only and shall not control or
affect the meaning or construction of any provision hereof. This Agreement may
be executed in any number of counterparts, each of which shall be deemed to be
an original and all of which together shall constitute one and the same
instrument.

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         IN WITNESS WHEREOF, this Agreement has been executed by or on behalf of
each of the parties hereto as of the date first above written.

                               Wire One Technologies, Inc.

                               By:____________________________________
                                    Name:  Jonathan Birkhahn
                                    Title: Executive Vice President
                                           Business Affairs and General Counsel

                               PURCHASER

                               By:_____________________________________
                                    Name:
                                    Title:<PAGE>   1
                                                                    EXHIBIT 10.1

                COMMUTATION, PREPAYMENT AND REDEMPTION AGREEMENT

                  COMMUTATION, PREPAYMENT AND REDEMPTION AGREEMENT, dated as of
September 14, 2001 (this "Agreement"), by and among Delphi Financial Group,
Inc., a Delaware corporation ("DFG"), Safety National Casualty Corporation, a
Missouri corporation ("SNCC"), Reliance Standard Life Insurance Company, an
Illinois corporation ("RSL" and, together with DFG and SNCC, the "DFG
Companies"), Y.M. King Trust, a Liechtenstein trust (the "Trust"), Delphi
International Ltd., a Bermuda exempted company ("DI"), and Oracle Reinsurance
Company Ltd., a Bermuda exempted company ("Oracle" and, together with DI, the
"DI Companies").

                                   WITNESSETH:

                  WHEREAS, SNCC and RSL are indirect wholly-owned subsidiaries
of DFG and Oracle is a wholly-owned subsidiary of DI; and

                  WHEREAS, SNCC is party to a Casualty Excess of Loss
Reinsurance Agreement with Oracle (the "SNCC Reinsurance Agreement"), pursuant
to which SNCC has, effective January 23, 1998, ceded certain excess workers'
compensation and other insurance liabilities to Oracle on an indemnity
reinsurance basis; and

                  WHEREAS, pursuant to the provisions of Article XVII of the
SNCC Reinsurance Agreement, SNCC has requested that such agreement be commuted,
and SNCC and Oracle have reviewed the losses reinsured thereunder and have
reached a settlement by mutual agreement to commute such agreement effective as
of September 30, 2001 (the "Commutation Effective Date") for the consideration
set forth herein; and

                  WHEREAS, RSL is party to a Reinsurance Agreement with Oracle
(the "RSL Reinsurance Agreement"), pursuant to which RSL has, effective January
1, 1998, ceded certain long-term disability insurance liabilities to Oracle on
an indemnity reinsurance basis, which agreement has been the subject of previous
partial commutations effective March 31, 1999 and January 1, 2000; and

                  WHEREAS, pursuant to the provisions of the RSL Reinsurance
Agreement, RSL and Oracle have mutually agreed to commute such agreement in its
entirety effective as of the
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Commutation Effective Date for the consideration set forth herein;

                  WHEREAS, SNCC's and RSL's agreements to the foregoing matters
are contingent on the prepayment by DI of its obligations to SNCC and RSL,
respectively, pursuant to those certain Promissory Notes issued by DI to the DFG
Companies, each due January 26, 2028, in the aggregate outstanding principal
amount of $33,275,558 (such notes, collectively, the "DI Notes"), and DFG wishes
that DI's obligations to DFG under the DI Notes (such obligations, together with
the obligations to SNCC and RSL under such notes, the "DI Note Obligations") be
prepaid;

                  WHEREAS, the Trust is the owner of 118,855 Series A Redeemable
Preference Shares of DI (the "Preference Shares"), which shares are redeemable
at the option of DI, and the Trust wishes that such shares be redeemed;

                  WHEREAS, in consideration for DI's making payment of the DI
Note Obligations prior to their maturity date, DFG has agreed to waive a portion
of the DI Note Obligations owing to it to the extent set forth herein;

                  WHEREAS, in consideration for DI's redeeming the Preference
Shares, the Trust has agreed to waive a portion of the amount payable pursuant
to the terms of such shares in connection with their redemption to the extent
set forth herein; and

                  WHEREAS, in addition to the note prepayment and share
redemption described above, DI has agreed to make contingent payments to DFG and
the Trust, as set forth herein; and

                  WHEREAS, it is anticipated that DI's prepayment of the DI Note
Obligations, redemption of the Preference Shares and contingent payment, if any,
will be effected in connection with and pursuant to the voluntary winding up and
liquidation of the DI Companies and each of their subsidiaries (collectively,
the "Liquidating Companies") pursuant to the Bermuda Companies Act of 1981 and
the other applicable statues, rules and regulations (collectively, the "Act");

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

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                                    ARTICLE I

          REINSURANCE COMMUTATIONS, PREPAYMENT OF NOTES, REDEMPTION OF
                    PREFERENCE SHARES AND CONTINGENT PAYMENT

                  1.1 SNCC Commutation Payment and Retention. On the Commutation
Closing Date (as defined in Section 5.1(b)), Oracle, either singly or together
with DI, shall pay to SNCC the amount of $74,253,770. SNCC and Oracle
acknowledge that such amount is net of an Advance Underwriting Cash Flow Profit
Commission in the amount of $11,483,411 presently held by SNCC, which amount
shall be retained by SNCC in its entirety and as to which Oracle shall,
effective as of the Commutation Closing Date, waive all rights and claims.

                  1.2 RSL Commutation Payment. On the Commutation Closing Date,
Oracle, either singly or together with DI, shall pay to RSL the amount of
$9,711,876.

                  1.3 Termination. On the Commutation Closing Date, all
obligations of the parties contained in, arising from or resulting under the
SNCC Reinsurance Agreement and the RSL Reinsurance Agreement, respectively
(whether due or to become due), shall, effective as of the Commutation Effective
Date, be deemed to have terminated and expired and the respective parties
thereto shall have no further obligation to or rights against each other
thereunder.

                  1.4 Letters of Credit Termination Notices. On the Commutation
Closing Date, SNCC and RSL shall provide certifications to Bank of America,
N.A., as letter of credit agent (the "Agent"), with respect to the terminations
of the SNCC Reinsurance Agreement and the RSL Reinsurance Agreement,
respectively, in the forms contemplated by Annex 1 to the respective letters of
credit, each dated January 27, 1998, issued in their favor by the Agent and
return such letters of credit to the Agent.

                  1.5 DI Note Prepayments. On the Winding Up Completion Date (as
defined in Section 5.1(b) hereof), DFG will waive its right to receive a portion
(such portion, the "Note Waiver Amount") of the total principal amounts owing to
it under the DI Notes, the Note Waiver Amount to be determined as set forth in
Section 1.7 hereof and to be allocated among the DI Notes pro rata in accordance
with the respective principal amounts owing to DFG under such notes, and DI will
prepay all principal and interest then owing under the DI Notes other than

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the Note Waiver Amount. The DFG Companies shall deliver to DI each of the DI
Notes, marked "paid and cancelled".

                  1.6 Redemption of Preference Shares. On the Winding Up
Completion Date, the Trust will waive its right to receive a portion (such
portion, the "Preference Share Waiver Amount" and, taken together with the Note
Waiver Amount, the "Aggregate Waiver Amount") of the aggregate price payable on
redemption of the Preference Shares pursuant to the provisions of the
Certificate of Designation thereof, the Preference Share Waiver Amount to be
determined pursuant to Section 1.7 hereof, and DI will redeem the Preference
Shares at their stated redemption price plus accrued dividends, less the
Preference Share Waiver Amount. The Trust shall deliver to DI each of the
certificates representing the Preferred Shares.

                  1.7 Waiver Amounts; DI Contingent Payment.

                  (a) The Aggregate Waiver Amount shall be equal to such amount
as, when subtracted from the total outstanding principal amount of the DI Notes
and the total price payable on redemption of the Preference Shares, will cause
the sum of (i) the amounts payable in respect of the DI Notes (inclusive of
accrued interest) and pursuant to the redemption of the Preference Shares
(inclusive of accrued dividends), (ii) the total amount of all costs, charges
and expenses of the winding up of the Liquidating Companies payable pursuant to
the Act and (iii) the total amount of all other liabilities of the Liquidating
Companies remaining to be satisfied in accordance with the Act, all as
determined as of the Winding Up Completion Date (such sum, the "Aggregate
Winding Up Amount"), to be such as, after payment and satisfaction of the
Aggregate Winding Up Amount, will result in an amount being distributable to the
members of DI (other than the Trust and any other holders of preference shares
of DI) pursuant to the Act (the "Distributable Amount") that is equal to
US$12,237,042 (the "Stated Distribution Amount"). If the Distributable Amount
equals or exceeds the Stated Distribution Amount as of the Winding Up Completion
Date, without taking into account the waivers contemplated by Sections 1.5 and
1.6 hereof, the Aggregate Waiver Amount shall be zero.

                  (b) The Aggregate Waiver Amount, if any, shall be allocated on
a modified pro rata basis as between the Note Waiver Amount and the Preference
Share Waiver Amount based on the total principal amount owing under the DI Notes
(the "Note Amount"), on one hand, and the total stated redemption price of

                                       4
<PAGE>   5
the Preference Shares, without regard to accrued dividends (the "Preference
Share Amount"), on the other hand, all as determined of the Winding Up
Completion Date, such that the ratio of the Note Waiver Amount to the Note
Amount is one-half of the ratio of the Preference Share Waiver Amount to the
Preference Share Amount.

                  (c) In further consideration of the agreements of DFG and the
Trust set forth in Sections 1.05 and 1.06 hereof, respectively, DI agrees that
if, as of the Winding Up Completion Date, the Distributable Amount is in excess
of the Stated Distribution Amount, without taking into account the waivers
contemplated by Sections 1.5 and 1.6 hereof, DI shall pay to DFG and the Trust
the amount of such excess, such payment to be allocated between DFG and the
Trust pro rata in the same manner as set forth in Section 1.7(b).

                                   ARTICLE II

         REPRESENTATIONS, WARRANTIES AND COVENANTS OF THE DFG COMPANIES

                  Each of the DFG Companies severally represents and warrants as
follows:

                  2.1 Authority Relative to this Agreement. Such company has
full power and authority to enter into this Agreement and the transactions
contemplated hereby and to perform its obligations hereunder. This Agreement has
been duly executed and delivered by such company, and this Agreement
constitutes, assuming the due authorization, execution and delivery thereof by
each of the other parties to this Agreement, the legal, valid and binding
obligation of such company, enforceable against such company in accordance with
its terms, except (i) as enforcement thereof may be limited by bankruptcy,
insolvency, reorganization, moratorium, fraudulent conveyance, or other similar
laws affecting the enforcement of creditors' rights generally, and (ii) as
enforcement thereof is subject to general principles of equity (regardless of
whether enforcement is considered in a proceeding at law or in equity). The
execution and delivery of this Agreement by such company and performance of its
obligations hereunder will not conflict with or result in a breach, default (or
an event which, with notice or lapse of time or both, would constitute a
default) or violation of any of the terms, provisions or conditions of any
agreement, document or instrument, or any judgment, decree, court order,
statute, regulation, ordinance or law to which such company is subject. No
permit, authorization, consent or

                                       5
<PAGE>   6
approval of, or filing with or notification to, any court or public body or
authority or expiration of any governmentally imposed waiting period, and no
authorization, consent, or approval of, or release by, any other third party, is
necessary for the execution and delivery of this Agreement by such company and
the consummation by such company of the actions contemplated by this Agreement
and the performance of its obligations hereunder (except for any approvals,
filings or notifications which may be required under state insurance regulatory
laws).

                  2.2 No Transfers of DI Notes. Such company has not sold,
assigned or transferred, or otherwise granted any interest to any person
(collectively, "Transfers") with respect to, its interest in the DI Notes other
than to another DFG other than another DFG Company. Such company will not make
any Transfer of its interest in any of the DI Notes prior to the prepayment of
the DI Notes as contemplated hereby.

                                   ARTICLE III

             REPRESENTATIONS, WARRANTIES AND COVENANTS OF THE TRUST

               3.1 Authority Relative to this Agreement. The Trust represents
and warrants that (a) it has full power and authority to enter into this
Agreement and the transactions contemplated hereby and to perform its
obligations hereunder; (b) this Agreement has been duly executed and delivered
by it, and this Agreement constitutes, assuming the due authorization, execution
and delivery thereof by each of the other parties to this Agreement, its legal,
valid and binding obligation, enforceable against it in accordance with its
terms, except (i) as enforcement thereof may be limited by bankruptcy,
insolvency, reorganization, moratorium, fraudulent conveyance, or other similar
laws affecting the enforcement of creditors' rights generally, and (ii) as
enforcement thereof is subject to general principles of equity (regardless of
whether enforcement is considered in a proceeding at law or in equity); (c) the
execution and delivery of this Agreement by it and performance of its
obligations hereunder will not conflict with or result in a breach, default (or
an event which, with notice or lapse of time or both, would constitute a
default) or violation of any of the terms, provisions or conditions of any
agreement, document or instrument, or any judgment, decree, court order,
statute, regulation, ordinance or law to which it is subject and (d) no permit,
authorization, consent or approval of, or filing with or notification to, any
court or public body or au-

                                       6
<PAGE>   7
thority or expiration of any governmentally imposed waiting period, and no
authorization, consent, or approval of, or release by, any other third party, is
necessary for the execution and delivery of this Agreement and the consummation
by it of the actions contemplated by this Agreement and the performance of its
obligations hereunder.

                  3.2 No Transfers of Preference Shares. The Trust has not
effected any Transfers with respect to its interest in the preference shares
other than such Transfers as have previously been disclosed to DI. The Trust
shall not effect any further Transfers of its interest in any of the preference
shares prior to the redemption thereof as contemplated hereby.

                                   ARTICLE IV

         REPRESENTATIONS, WARRANTIES AND COVENANTS OF THE DI COMPANIES

                  4.1 Authority Relative to this Agreement. Each of the DI
Companies severally represents and warrants that (a) it has full power and
authority to enter into this Agreement and the transactions contemplated hereby
and to perform its obligations hereunder; (b) this Agreement has been duly
executed and delivered by it, and this Agreement constitutes, assuming the due
authorization, execution and delivery thereof by each of the other parties to
this Agreement, the legal, valid and binding obligation of such company,
enforceable against it in accordance with its terms, except (i) as enforcement
thereof may be limited by bankruptcy, insolvency, reorganization, moratorium,
fraudulent conveyance, or other similar laws affecting the enforcement of
creditors' rights generally, and (ii) as enforcement thereof is subject to
general principles of equity (regardless of whether enforcement is considered in
a proceeding at law or in equity); (c) the execution and delivery of this
Agreement by it and performance of its obligations hereunder will not conflict
with or result in a breach, default (or an event which, with notice or lapse of
time or both, would constitute a default) or violation of any of the terms,
provisions or conditions of any agreement, document or instrument, or any
judgment, decree, court order, statute, regulation, ordinance or law to which it
is subject; provided, however, that the winding up and liquidation of the
Liquidating Companies will be subject to shareholder approval in accordance with
the Act, and (d) no permit, authorization, consent or approval of, or filing
with or notification to, any court or public body or authority or expiration of
any governmentally imposed waiting period, and no authorization,

                                       7
<PAGE>   8
consent, or approval of, or release by, any other third party, is necessary for
the execution and delivery of this Agreement and the consummation by it or any
of the other Liquidating Companies of the actions contemplated by this Agreement
and the performance of its obligations hereunder.

                  4.2 Interim Period Covenants. With respect to the period
commencing on the Commutation Closing Date and ending on the date that the
transactions described in Sections 1.5 through 1.7 hereof are consummated, it is
hereby agreed as follows:

                  (a) All capitalized terms used but not defined in this Section
4.2 shall have the respective meanings given to them in the Letter of Credit
Agreement (the "LOC Agreement") dated as of January 27, 1998, as amended, among
Oracle, the financial institutions signatory thereto and the Agent, as
Administrative Agent.

                  (b) DI and Oracle shall, notwithstanding the termination of
the LOC Agreement on the Commutation Closing Date, be bound by and observe the
covenants contained in Sections 6.4 through 6.11, Section 7.1, Sections 7.3
through 7.5, Sections 7.7 through 7.10, and Sections 7.17 through 7.24 of the
LOC Agreement (as to DI, in each case, as if such covenants by their terms
applied directly to DI, except that nothing therein shall be in any way
construed to limit or restrict the performance by DI of its obligations
hereunder), each of which covenants, inclusive of the applicable definitions and
other provisions of the LOC Agreement utilized or referenced therein, is
incorporated herein by reference.

                   4.3 Winding Up and Liquidation. DI shall take or cause to be
taken all actions within its control that may be necessary or appropriate to
facilitate the winding up and liquidation of the Liquidating Companies in an
expeditious manner, including but not limited to the seeking of all requisite
shareholder approvals.

                                    ARTICLE V

                              CONDITIONS TO CLOSING

                   5.1 Closings. (a) A closing with respect to the transactions
contemplated by Sections 1.1 through 1.4 hereof (the "Commutation Closing" and
the date and time thereof being the "Commutation Closing Date") will be held as
soon as

                                       8
<PAGE>   9
reasonably practicable after the conditions set forth in Sections 5.2 through
5.5 hereof shall have been satisfied or waived with respect to such
transactions.

                  (b) A closing (the "Final Closing" and the date and time
thereof being the "Closing Date") with respect to the transactions contemplated
by Sections 1.5 through 1.7 hereof will be held on the later of the Winding Up
Completion Date or the date upon which the conditions set forth in Sections 5.2
through 5.5 hereof shall have been satisfied or waived with respect to such
transactions. For purposes hereof, the "Winding Up Completion Date" shall be the
date on which all necessary actions have been taken so as to permit liquidating
distributions to be made to the members of DI pursuant to the Act.

                  5.2 Conditions to Each Party's Obligations. The obligation of
each party hereto to consummate the transactions contemplated by this Agreement
on the Commutation Closing Date and the Final Closing Date (collectively, the
"Closing Dates"), as applicable, is subject to the satisfaction or waiver on or
prior to such date of the following condition:

                  (a) No Injunctions or Restraints. No material judgment, order,
decree, statute, law, ordinance, rule or regulation entered, enacted,
promulgated, enforced or issued by any court or other governmental entity of
competent jurisdiction (collectively, "Governmental Authorities") or other legal
restraint or prohibition shall be in effect preventing the consummation of the
transactions contemplated hereby, and any approvals of shareholders and of
Governmental Authorities required to be obtained by such party in connection
with such transactions shall have been obtained.

                  5.3 Conditions to Obligations of the DFG Companies. The
obligations of the DFG Companies to consummate the transactions contemplated by
this Agreement are further subject to satisfaction or waiver of the following
conditions:

                  (a) Representations and Warranties. The representations and
warranties of the Trust and the DI Companies set forth herein shall be true and
correct in all respects as of the date of this Agreement and at and as of each
Closing Date as if made at and as of such time.

                  (b) Performance of Other Parties' Obligations. Each of the
Trust and the DI Companies shall have performed all

                                       9
<PAGE>   10
obligations required to be performed by them under this Agreement at or prior to
such Closing Date.

                  5.4 Conditions to Obligations of the Trust. The obligation of
the Trust to consummate the transactions contemplated by this Agreement is
further subject to satisfaction or waiver of the following conditions:

                  (c) Representations and Warranties. The representations and
warranties of the DFG Companies and the DI Companies set forth herein shall be
true and correct in all respects as of the date of this Agreement and at and as
of the Final Closing Date as if made at and as of such time.

                  (d) Performance of Other Parties' Obligations. Each of the DFG
Companies and the DI Companies shall have performed all obligations required to
be performed by them under this Agreement at or prior to the Final Closing Date.

                  5.5 Conditions to Other Parties' Obligations. The obligations
of the DI Companies to consummate the transactions contemplated by this
Agreement are further subject to satisfaction or waiver of the following
conditions:

                  (a) Representations and Warranties. The representations and
warranties of the DFG Companies and the Trust, respectively, set forth herein
shall be true and correct in all respects as of the date of this Agreement and
at and as of each Closing Date as if made at and as of such time.

                  (b) Performance of Other Parties' Obligations. Each of the DFG
Companies and the Trust, respectively, shall have performed all obligations
required to be performed by them under this Agreement at or prior to the
applicable Closing Date.

                                   ARTICLE VI

                                  MISCELLANEOUS

                  6.1  Notices.

                  (a) Any notice or communication to any party hereto shall be
duly given if in writing and delivered in person or mailed by first class mail
(registered or certified, return receipt requested), facsimile or overnight air
courier guaranteeing next day delivery, to such other party's address, as
follows: (a) if to DFG, 1105 North Market Street, Suite

                                       10
<PAGE>   11
1230, Wilmington, Delaware 19801, facsimile number (302) 427-7663, attention:
Vice President and Treasurer, with a copy to Delphi Capital Management, Inc.,
153 East 53rd Street, Suite 4900, New York, New York 10022, facsimile number
(212) 838-7598, attention: Chad W. Coulter, Vice President and General Counsel;
(b) if to SNCC, 2043 Woodland Parkway, Suite 200, St. Louis, Missouri 63146,
facsimile number: (314) 995-6817, attention: Duane Hercules, Executive Vice
President; (c) if to RSL, 2001 Market Street, Suite 1500, Philadelphia,
Pennsylvania 19103, facsimile number: (267) 256-3556, attention: Thomas
Burghart, Vice President and Treasurer; (d) if to the Trust, c/o Interfiducia
Trust Reg., Aeulestrasse 74, Post FL9490, Vaduz, Liechtenstein, facsimile number
011 41 75 232 4343, attention: Trustee; (e) if to DI, 3rd Floor, Chevron House,
11 Church Street, Hamilton HM 11, Bermuda, facsimile number: (441) 292-3877,
attention: Colin O'Connor, President; and (f) if to Oracle, 3rd Floor, Chevron
House, 11 Church Street, Hamilton HM 11, Bermuda, facsimile number: (441)
292-3877, attention: Colin O'Connor, President.

                   (b) All notices and communications will be deemed to have
been duly given: at the time delivered by hand, if personally delivered; three
business days after being deposited in the mail, if mailed; when sent, if sent
by facsimile (with receipt confirmed); and the next business day after timely
delivery to the courier, if sent by overnight air courier guaranteeing next day
delivery postage pre-paid or billed to sender.

                  6.1 Counterparts. This Agreement may be executed in two or
more counterparts, each of which shall be deemed an original, but all of which
together shall constitute one and the same instrument.

                  6.2 Interpretation. The headings of articles and sections
herein are for convenience of reference, do not constitute a part of this
Agreement, and shall not be deemed to limit or affect any of the provisions
hereof.

                  6.3 Amendment. This Agreement may not be amended except by an
instrument in writing signed on behalf of each of the parties affected thereby.

                  6.4 Assignment. This Agreement may not be assigned by any
party hereto except with the prior written consent of the non-assigning parties.

                                       11
<PAGE>   12
                  6.5 No Third Party Beneficiaries. Nothing in this Agreement
shall confer any rights upon any person or entity which is not a party or
permitted assignee of a party to this Agreement.

                  6.6 Governing Law. This Agreement shall be governed by, and
construed in accordance with, the laws of the State of New York without regard
to principles of conflicts of laws.

                  6.7 Entire Agreement. This Agreement constitutes the entire
agreement between the parties pertaining to the subject matter hereof and
thereof, and supersedes all prior agreements or understandings as to such
subject matter. No party hereto has made any representation or warranty or given
any covenant to the other except as set forth in this Agreement.

                  6.8 Severability. The invalidity or unenforceability of any
provision of this Agreement shall not affect the validity or enforceability of
any other provisions of this Agreement, which shall remain in full force and
effect. In case any provision of this Agreement shall be invalid, illegal or
unenforceable, it shall, to the extent possible, be modified in such manner as
to be valid, legal and enforceable but so as to most nearly retain the intent of
the parties. If such modification is not possible, such provision shall be
severed from this Agreement. In either case the validity, legality and
enforceability of the remaining provisions of this Agreement shall not in any
way be affected or impaired thereby

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

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK. SIGNATURE PAGE FOLLOWS.]

                                       12
<PAGE>   13
                                    DELPHI FINANCIAL GROUP, INC.

                                    By:     _________________________
                                            Name:
                                            Title:

                                    SAFETY NATIONAL CASUALTY CORPORATION

                                    By:     _________________________
                                            Name:
                                            Title:

                                    RELIANCE STANDARD LIFE INSURANCE COMPANY

                                    By:     _________________________
                                            Name:
                                            Title:

                                    Y.M. KING TRUST

                                    By:  Interfiducia Trust Reg.,
                                           as Trustee

                                    By:     _________________________
                                            Name:
                                            Title:

                                    DELPHI INTERNATIONAL LTD.

                                    By:     _________________________
                                            Name:
                                            Title:

                                    ORACLE REINSURANCE COMPANY LTD.

                                    By:     _________________________
                                            Name:
                                            Title:

                                       13

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