Document:

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                                                                   Exhibit 10.31

                          INVESTMENT ADVISORY AGREEMENT
                       AND AMENDMENT TO SERVICE AGREEMENT

     This Agreement (this "Agreement") is made as of the 1st day of January,
2002 ("Effective Date"), by and between Allstate Insurance Company, an Illinois
insurance company ("Allstate"), Allstate Investments, LLC ("ALLSTATE
INVESTMENTS") and Allstate Life Insurance Company of ALNY, a ALNY insurance
company ("ALNY").

     WHEREAS, Allstate currently provides investment management services to ALNY
pursuant to a Service Agreement, dated as of July 1, 1989 (the "Service
Agreement");

     WHEREAS, it has been determined that such services in the future will be
more appropriately provided to ALNY by a separate entity performing only
investment management activities rather than by a department of Allstate,
resulting in benefits to ALNY. Therefore, subject to obtaining all required
regulatory approvals, effective January 1, 2002, Allstate's Investment
Department will cease providing investment management services pursuant to the
Service Agreement. All investment management services will instead be provided
to ALNY by ALLSTATE INVESTMENTS; and

     WHEREAS, to accomplish this change, ALNY desires to amend the Service
Agreement to terminate the provision of investment management services by
Allstate. ALNY also desires to contract with ALLSTATE INVESTMENTS for the
rendering of investment management services by ALLSTATE INVESTMENTS subject to
the terms and conditions hereinafter set forth.

          NOW, THEREFORE, in consideration of the premises and of the mutual
promises set forth herein, and intending to be legally bound hereby, Allstate,
ALLSTATE INVESTMENTS and ALNY agree as follows.

ARTICLE 1
                     AMENDMENT OF EXISTING SERVICE AGREEMENT

     1.1  AMENDMENT. Allstate and ALNY hereby agree to amend the Service
Agreement by deleting Section 4(g) and all references thereto such that Allstate
no longer provides investment management services to ALNY.

ARTICLE 2
                          INVESTMENT ADVISORY SERVICES

     2.1  APPOINTMENT. ALNY hereby appoints ALLSTATE INVESTMENTS as the
investment advisor and manager of its investment assets (the "Account") and
grants ALLSTATE INVESTMENTS the power and authority to advise, manage, and
direct the investment and reinvestment of the assets of the Account for the
period and on the terms and conditions set forth

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in this Agreement, subject to the supervision of the Board of Directors of ALNY
(the "Board"). Such activities shall be conducted subject to and in accordance
with the investment objectives, restrictions, and strategies set forth in
Exhibit A attached hereto, in investment objectives that are not inconsistent
with Exhibit A that are adopted by the Board, and in accordance with such other
limitations and guidelines that are not inconsistent with Exhibit A as may be
established from time to time for the Account by the Board (such investment
objectives, restrictions, strategies, limitations, and guidelines herein
referred to collectively as the "Investment Guidelines"). ALLSTATE INVESTMENTS
hereby accepts such responsibility and agrees during such period to render the
services and to assume the obligations herein set forth.

     2.2  ALLSTATE INVESTMENTS AS AGENT. ALNY shall retain responsibility,
authority and control with respect to the management and investment of the
Account and shall supervise the activities of ALLSTATE INVESTMENTS with respect
to the Account. Subject to the foregoing and to the Investment Guidelines,
ALLSTATE INVESTMENTS shall, for purposes of this Agreement, be granted and
exercise full investment discretion and authority in buying, selling or
otherwise disposing of or managing the investment of the assets held in the
Account and in the performance of the services rendered hereunder, and shall do
so as ALNY's agent only. ALNY hereby authorizes ALLSTATE INVESTMENTS to exercise
all such powers with respect to the assets of the Account as may be necessary or
appropriate for the performance by ALLSTATE INVESTMENTS of its obligations under
this Agreement, subject to the supervision of the Board and the limitations
contained herein. All investments made by ALLSTATE INVESTMENTS on behalf of ALNY
shall be in those classes of investments prescribed by Section 1405 of the ALNY
Insurance Law or as otherwise permitted ALNY by law; provided, however, that
nothing contained herein shall authorize ALLSTATE INVESTMENTS to purchase or
dispose of on ALNY's behalf without ALNY's prior written approval any mortgages
or any interest in real property.

     2.3  INVESTMENT ADVISORY SERVICES. In furtherance of the foregoing, and in
carrying out its obligations to manage the investment and reinvestment of the
assets in the Account, ALLSTATE INVESTMENTS shall, as appropriate and consistent
with the Investment Guidelines:

          (a)  perform research and obtain and evaluate such information
          relating to the economics, industries, businesses, markets and new
          investment structures, techniques, practices, and financial data as
          ALLSTATE INVESTMENTS deems appropriate in its discharge of its duties
          under this Agreement;

          (b)  consult with and furnish to the Board recommendations with
          respect to overall investment strategies for the Account;

          (c)  seek out and implement specific investment opportunities,
          consistent with such overall investment strategies approved by the
          Board, including making and carrying out day-to-day decisions to
          acquire or dispose of permissible investments, managing the investment
          of the assets of the Account, and providing or obtaining such services
          as may be necessary in managing, acquiring or disposing of
          investments;

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          (d)  regularly report to the Board with respect to the implementation
          of investment strategies and any other activities in connection with
          management of the Account's assets, including furnishing to the Board,
          within 15 days after the end of each quarter, a summary of investment
          activity during the quarter, and a schedule of investments and other
          assets of the Account as of the end of the quarter;

          (e)  maintain all required accounts, records, memoranda, instructions
          or authorizations relating to the acquisition or disposition of
          investments for the Account;

          (f)  determine the securities to be purchased or sold by the Account
          and place orders either directly with the issuer, with any
          broker-dealer or underwriter that specializes in the securities for
          which the order is made, or with any other broker or dealer that
          ALLSTATE INVESTMENTS selects; and

          (g)  perform the services hereunder in a manner consistent with
          investment objectives and policies of ALNY as detailed in the
          Investment Guidelines, as amended from time to time, and in compliance
          with the provisions of the ALNY Insurance Law, as amended.

     2.4  ALLOCATION OF BROKERAGE. ALLSTATE INVESTMENTS is authorized in its
sole discretion to select the brokers or dealers that will execute the purchases
and sales of securities for the Account. In making such selection, ALLSTATE
INVESTMENTS shall use its best efforts to obtain for the Account the most
favorable net price and execution available taking into account all appropriate
factors, including price, dealer spread or commission, if any, and size and
difficulty of the transaction.

          If, in the judgment of ALLSTATE INVESTMENTS, ALNY should be benefited
by supplemental investment research, ALLSTATE INVESTMENTS is authorized, but not
obligated, to select brokers or dealers on the basis of research information,
materials, or service furnished by them to ALLSTATE INVESTMENTS to use in
supplementing ALLSTATE INVESTMENTS' own information and in making investment
decisions for the Account. The expenses of ALLSTATE INVESTMENTS and the charges
to ALNY may not necessarily be reduced as a result of receipt of such
supplemental information. Subject to the above requirements, nothing shall
prohibit ALLSTATE INVESTMENTS from selecting brokers or dealers with which it or
ALNY are affiliated.

     2.5  SERVICE TO OTHER CLIENTS. ALNY acknowledges that ALLSTATE INVESTMENTS
may perform services for clients other than ALNY which are similar to the
services to be performed pursuant to this Agreement, and that ALLSTATE
INVESTMENTS is free to do so provided that its services pursuant to this
Agreement are not in any way impaired. ALNY agrees that ALLSTATE INVESTMENTS may
provide investment advice to any of its other clients that may differ from
advice given to ALNY, or take action with respect to assets owned by it or its
other clients that may differ from the action taken with respect to the Account
and/or assets held therein, so long as ALLSTATE INVESTMENTS, to the extent
reasonable and practicable, allocates investment opportunities to the Account on
a fair and equitable basis

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relative to ALLSTATE INVESTMENTS' other clients. It is understood that ALLSTATE
INVESTMENTS shall have no obligation to purchase or sell, or to recommend for
purchase or sale for the Account, any security, which ALLSTATE INVESTMENTS, its
affiliates, employees or agents may purchase or sell for its or their own
accounts or for the account of any other client, if, in the opinion of ALLSTATE
INVESTMENTS, such transaction or investment appears unsuitable, impractical or
undesirable for the Account. It is agreed that ALLSTATE INVESTMENTS may use any
supplemental investment research obtained for the benefit of ALNY in providing
investment advice to its other clients or its own accounts. Conversely, such
supplemental information obtained by the placement of business for ALLSTATE
INVESTMENTS or other entities advised by ALLSTATE INVESTMENTS will be considered
by and may be useful to ALLSTATE INVESTMENTS in carrying out its obligations to
ALNY.

     2.6  ALLOCATION OF TRADES. It is acknowledged that securities held by ALNY
may also be held by separate investment accounts or other funds for which
ALLSTATE INVESTMENTS may act as a manager or by ALLSTATE INVESTMENTS or its
other affiliates. If purchases or sales of securities for ALNY or other entities
for which ALLSTATE INVESTMENTS or its affiliates act as investment manager arise
for consideration at or about the same time, ALNY agrees that ALLSTATE
INVESTMENTS may make transactions in such securities, insofar as feasible, for
the respective entities in a manner deemed equitable to all. To the extent that
transactions on behalf of more than one client of ALLSTATE INVESTMENTS during
the same period may increase the demand for securities being purchased or the
supply of securities being sold, ALNY recognizes that there may be an adverse
effect on price.

          It is agreed that, on occasions when ALLSTATE INVESTMENTS deems the
purchase or sale of a security to be in the best interests of ALNY as well as
other accounts or companies, it may, to the extent permitted by applicable laws
and regulations, but will not be obligated to, aggregate the securities to be so
sold or purchased for ALNY with those to be sold or purchased for other accounts
or companies in order to obtain favorable execution and lower brokerage
commissions. In that event, allocation of the securities purchased or sold, as
well as the expenses incurred in the transaction, will be made by ALLSTATE
INVESTMENTS in the manner it considers to be most equitable and consistent with
its obligations to ALNY and to such other accounts or companies. ALNY recognizes
that in some cases this procedure may adversely affect the size of the position
obtainable for ALNY.

     2.7  CONTRACTS; AUTHORIZED SIGNATORIES. ALLSTATE INVESTMENTS shall have the
full power, right and authority, as ALNY's agent, in accordance with this
Agreement and the Investment Guidelines, to negotiate, apply for, enter into,
execute, deliver, amend, modify and/or terminate legal documents of every kind
and nature relating to or required by the investment of the assets of the
Account. All such documents may be entered into in ALNY's name or in ALLSTATE
INVESTMENTS' name (as agent for ALNY), as ALLSTATE INVESTMENTS shall determine,
and all such documents shall be legally binding on ALNY. Those certain employees
and officers of ALLSTATE INVESTMENTS who are authorized to execute transactions
and sign documentation pursuant to the Policies and Procedures and Investment
guidelines adopted by the Investment Committee of ALLSTATE INVESTMENTS, as they
may be amended from time to time, shall also be authorized to the same extent to
execute transactions and sign documentation on behalf of ALNY and/or ALLSTATE
INVESTMENTS

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in connection with transactions entered into on behalf of the assets of the
Account pursuant to this Agreement.

     2.8  COMPLIANCE WITH LEGAL REQUIREMENTS. ALLSTATE INVESTMENTS shall make
all reasonable efforts to comply with and cause to be complied with all
applicable laws, rules, and regulations of the State of ALNY, and any federal,
state or municipal authority governing this Agreement, the services rendered
hereunder, the Account and the assets held therein. Without limiting the
foregoing, ALLSTATE INVESTMENTS shall comply with all securities laws and other
laws applicable to the services provided under this Agreement.

     2.9  TRANSACTION PROCEDURES. The assets of the Account are or will be held
in custody in the State of ALNY by the bank custodian(s) appointed by ALNY from
time to time. ALLSTATE INVESTMENTS shall not act as custodian for the assets of
the Account and shall not under any circumstances have or be deemed to have
ownership, custody or physical control of any of the assets of the Account.
ALLSTATE INVESTMENTS may, however, issue instructions to, and communicate with,
the bank custodian for the Account as may be necessary and appropriate in
connection with provision of its services pursuant to this Agreement. At the
option of ALLSTATE INVESTMENTS, instructions by ALLSTATE INVESTMENTS to the bank
custodian may be made orally or by computer, electronic instruction systems or
telecommunications terminals. ALLSTATE INVESTMENTS will confirm that the bank
custodian has effected such instructions either by access to the bank's
computerized identification system or by telephonic confirmation. The bank
custodian will confirm with ALLSTATE INVESTMENTS receipt of trade instructions
orally or by computer for the Account. ALLSTATE INVESTMENTS will instruct all
brokers, dealers and counterparties executing orders on behalf of the assets of
the Account to forward to ALLSTATE INVESTMENTS and ALNY copies of all
confirmations. In the event ALLSTATE INVESTMENTS receives and collects monies
for the account of ALNY, ALLSTATE INVESTMENTS will not commingle such monies
with its own, but will deposit such monies in an appropriate ALNY account.

     2.10 STANDARD OF PERFORMANCE. ALLSTATE INVESTMENTS shall discharge its
duties hereunder at all times in good faith and with that degree of prudence,
diligence, care and skill which a prudent person rendering services as an
institutional investment manager and adviser would exercise under similar
circumstances. The provisions of this Agreement shall not be interpreted to
imply any obligation on the part of ALLSTATE INVESTMENTS to observe any standard
of care other than as set forth in this Section 2.10.

     2.11 RECORDKEEPING. ALLSTATE INVESTMENTS shall keep and maintain an
accurate and detailed accounting of each transaction concerning the assets of
the Account and of all receipts, disbursements, and other transactions relating
to the purchase and sale transactions arising hereunder. All such records shall
be kept in accordance with applicable laws and regulations, including, but not
limited to, ALNY Insurance Department Regulation 152. ALLSTATE INVESTMENTS
acknowledges that all such records shall be the property of ALNY and shall be
made available, within five (5) business days of a written request, to ALNY, its
accountants, auditors or other representatives of ALNY for inspection and/or
copying (at ALNY's expense) during regular business hours. In addition, ALLSTATE
INVESTMENTS

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will provide any materials, reasonably related to the investment advisory
services provided hereunder, as may be reasonably requested in writing by the
directors or officers of ALNY or as may be required by any governmental agency
with jurisdiction thereunder.

     ALLSTATE INVESTMENTS further agrees to prepare and furnish to ALNY and to
other persons designated by ALNY, at such regular intervals and other times as
may be specified by ALNY from time to time (a) such balance sheets, income and
expense statements and other financial statements and reports, and (b) such
other statements, reports and information, in each case regarding the assets of
the Account as ALNY shall from time to time reasonably direct.

     In the event of termination for any reason, all such records shall be
returned promptly to ALNY, free from any claim or retention of rights by
ALLSTATE INVESTMENTS.

     2.12 LIABILITY OF ALLSTATE INVESTMENTS. In the absence of ALLSTATE
INVESTMENTS' willful or negligent misconduct (or the willful or negligent
misconduct of its officers, directors, agents, employees, controlling persons,
shareholders, and any other person or entity affiliated with ALLSTATE
INVESTMENTS or retained by it to perform or assist in the performance of its
obligations under this Agreement), neither ALLSTATE INVESTMENTS nor any of its
officers, directors, employees or agents shall be subject to liability to ALNY
for any act or omission in the course of, or connected with, rendering services
hereunder.

     2.13 INDEPENDENT CONTRACTOR. ALLSTATE INVESTMENTS shall for all purposes be
deemed to be an independent contractor. ALLSTATE INVESTMENTS shall have no power
or authority to bind ALNY or to assume or create an obligation or
responsibility, express or implied, on behalf of ALNY, nor shall it represent to
anyone that it has such power or authority, except as expressly provided in this
Agreement. Nothing in this Agreement shall be deemed to create a partnership
between or among the parties, whether for purposes of taxation or otherwise.

     2.14 STATUS OF FACILITIES. No facility of ALLSTATE INVESTMENTS used in
performing services for ALNY shall be deemed to be transferred, assigned,
conveyed, or leased by performance or use pursuant to this Agreement.

     2.15 FEES. ALNY agrees to reimburse ALLSTATE INVESTMENTS for services
provided by ALLSTATE INVESTMENTS to ALNY pursuant to this Agreement. The charge
to ALNY for such services shall be at cost. Cost shall mean ALLSTATE
INVESTMENTS' actual costs and expenses fairly attributable to this Agreement.
     Subject to New York Insurance Department Regulation 33, the bases for
determining such charges to ALNY shall be those used by ALLSTATE INVESTMENTS for
internal cost distribution including, where appropriate, time records prepared
at least annually for this purpose.

     Cost analyses will be made at least annually by ALLSTATE INVESTMENTS to
determine, as closely as possible, the actual cost of services rendered to ALNY
hereunder. ALLSTATE INVESTMENTS shall forward to ALNY the information developed
by these analyses, and such information shall be used to develop bases for
distribution of expenses, which more currently reflect the actual incidence of
costs incurred by ALLSTATE INVESTMENTS on behalf of ALNY.

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     The fees provided for in this Section 2.15 are exclusive of any fees
charged or to be charged by any custodian under a separate custody agreement.
ALNY agrees that ALLSTATE INVESTMENTS may direct custodians of the Account to
make direct payment of fees due hereunder.

     2.16 PAYMENT. Within thirty (30) days after the end of each month, ALLSTATE
INVESTMENTS shall submit to ALNY, via an intercompany settlement process, a
statement of the amount owed by ALNY for services pursuant to this Agreement in
that month, and, unless such amount is disputed by ALNY, ALNY shall pay to
ALLSTATE INVESTMENTS within thirty (30) days following receipt of such statement
the amount set forth in the statement.

          If ALNY objects to any determination of the amount owed by ALNY, it
shall so advise ALLSTATE INVESTMENTS within thirty (30) days of receipt of
notice of said determination. Unless the parties can reconcile any such
objection, they shall agree to the selection of a firm of independent certified
public accountants, which shall determine the charges properly allocable to ALNY
and shall, within a reasonable time, submit such determination together with the
basis therefor, in writing to ALLSTATE INVESTMENTS and ALNY, whereupon such
determination shall be binding. The expenses of such a determination by a firm
of independent certified public accountants shall be borne equally by ALLSTATE
INVESTMENTS and ALNY.

     2.17 CONTACT PERSON(S). ALNY and ALLSTATE INVESTMENTS each shall appoint
one or more individuals who shall serve as contact person(s) for the purpose of
carrying out this Agreement. Such contact person(s) shall be authorized to act
on behalf of their respective parties as to the matters pertaining to this
Agreement. Effective upon execution of this Agreement, the initial contact
person(s) shall be those set forth in Appendix A. Each party shall notify the
other, in writing, as to the name, address, and telephone number of any
replacement for any such designated contact person.

     2.18 TERMINATION. This Agreement shall remain in effect until terminated by
either ALLSTATE INVESTMENTS or ALNY upon giving thirty (30) days or more advance
written notice. Upon termination, ALLSTATE INVESTMENTS shall promptly deliver to
ALNY all books and records that are, or are deemed by this Agreement to be, the
property of ALNY.

     2.19. SETTLEMENT ON TERMINATION. No later than thirty (30) days after the
effective date of termination of this Agreement, ALLSTATE INVESTMENTS shall
deliver to ALNY a detailed written statement for all fees due and not included
in any previous statement to the effective date of termination. The amount owed
shall be due and payable within thirty (30) days of receipt of such statement.

     2.20 CONFIDENTIALITY. ALNY agrees to give ALLSTATE INVESTMENTS any
information in its possession, which ALNY deems relevant to the suitability of
the investment strategy implemented by ALLSTATE INVESTMENTS, including
information on ALNY's liabilities, whether this information becomes known before
or after the adoption of the strategy. ALLSTATE INVESTMENTS shall keep any
information it obtains about ALNY's business or investment objectives and
results in confidence

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ARTICLE 3
                                  MISCELLANEOUS

     3.1  ASSIGNMENT. This Agreement and any rights pursuant hereto shall not be
assignable by either party hereto without the prior written consent of the other
party, except as set forth herein or by operation of law. Except as and to the
extent specifically provided in this Agreement, nothing in this Agreement,
expressed or implied, is intended to confer on any person other than the parties
hereto, or their respective legal successors, any rights, remedies, obligations,
or liabilities, or to relieve any person other than the parties hereto, or their
respective legal successors, from any obligations or liabilities that would
otherwise be applicable. The representations, warranties, covenants, and
agreements contained in this Agreement shall be binding upon, extend to and
inure to the benefit of the parties hereto, their, and each of their, successors
and assigns, respectively.

     3.2  GOVERNING LAW. This Agreement shall be governed by and construed and
enforced in accordance with the internal laws of the State of New York
applicable to contracts made and to be performed in that State without regard to
principles of conflict of laws.

     3.3  ARBITRATION. An unresolved dispute or difference between the parties
arising out of or relating to this Agreement, or the breach thereof, shall be
settled by arbitration in accordance with the Commercial Arbitration Rules of
the American Arbitration Association and the Expedited Procedures thereof. The
award rendered by the arbitrator shall be final and binding upon the parties,
and judgment upon the award may be entered in any court having jurisdiction
thereof. The arbitration shall take place in New York, New York.

     3.4  NOTICE. All notices, statements, or requests provided for hereunder
shall be deemed to have been duly given when delivered by hand to an officer of
the other party, or when deposited with the U.S. Postal Service, as first class
certified or registered mail, postage prepaid, overnight courier service, telex
or telecopier, addressed

          (a)  If to ALLSTATE INVESTMENTS, to:

                       Allstate Investments, LLC
                       3075 Sanders Road
                       Northbrook, IL 60062-7127
                       Attention: Investment Law (suite G5A)
                       Phone: (847) 402-6146
                       Facsimile: (847) 402-6649

          with concurrent copy to:

                       Allstate Investments, LLC
                       3075 Sanders Road
                       Northbrook, IL 60062-7127
                       Attention: Investment Department (Suite G3A)
                       Phone: (847) 402-7633
                       Facsimile: (847) 402-3902

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          (b)  If to ALNY, to:

                       Allstate Life Insurance Company of New York
                       One Allstate Drive
                       Farmingville, NY 11738
                       Attention: James Brazda
                       Phone: (847) 402-5686
                       Facsimile: (847) 326-5070

or to such other persons or places as each party may from time to time designate
by written notice sent as aforesaid.

     3.5  ENTIRE AGREEMENT. This Agreement, together with the Service Agreement,
as amended herein, and together with such amendments to this Agreement as may
from time to time be executed in writing by the parties, constitutes the entire
agreement and understanding between the parties in respect of the transactions
contemplated hereby.

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     3.6  SECTION HEADINGS. Section headings contained herein are for reference
purposes only and shall not affect the meaning or interpretation of this
Agreement.

     3.7  COUNTERPARTS. This Agreement may be executed in separate counterparts,
each of which shall be deemed an original, but all of which together shall
constitute one and the same instrument.

          IN WITNESS WHEREOF, the parties have caused this Agreement to be
executed in duplicate by their respective officers duly authorized to do so, as
of the date and year first above written.

                                             ALLSTATE INSURANCE COMPANY

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

                                             ALLSTATE INVESTMENTS, LLC

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

                                             ALLSTATE LIFE INSURANCE COMPANY OF
                                             NEW YORK

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

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                                    EXHIBIT A

                 INVESTMENT OBJECTIVE, POLICIES AND RESTRICTIONS

ALLSTATE INVESTMENTS will have full discretion to invest and reinvest the funds
made available to it for that purpose by ALNY as follows:

INVESTMENT OBJECTIVES

ALNY's investment objective is to obtain as high a level of current interest
income as is consistent, in the view of ALLSTATE INVESTMENTS, with preservation
of investment capital. There are market risks inherent in all investments in
securities, and there can be no assurance that ALLSTATE INVESTMENTS will achieve
this objective. The primary objective of preserving capital will preclude
realization of the highest available income yields.

INVESTMENT POLICIES

ALLSTATE INVESTMENTS will seek to achieve the above-stated objective by
investing in a diversified portfolio of securities. In selecting securities for
this portfolio, ALLSTATE INVESTMENTS will seek the highest available yields
consistent with the rating standards and other policies stated herein.
Portfolio securities will be selected pursuant to the following fundamental
investment policies:
1.   CASH BALANCES. Cash balances occurring pending permanent investment will be
     invested in high grade, corporate commercial paper. The corporate paper
     must have the highest rating by one or more of the nationally recognized
     rating organizations. Other acceptable short-term investments include U.S.
     Treasury bills and notes, certificates of deposit, time deposits, bankers
     acceptances and money market funds.
2.   CORPORATE BONDS. The purchases of corporate bonds will include bonds,
     notes, debentures and other evidences of indebtedness issued, assumed or
     guaranteed by a corporation incorporated under the laws of the United
     States of America, of any state, district or territorial possession thereof
     or of the Dominion of Canada or any province thereof; provided that the
     bonds are rated class 1 or 2 by the Securities Valuation Office ("SVO") of
     the National Association of Insurance Commissioners ("NAIC").
3.   GOVERNMENT OBLIGATIONS. The purchase of government obligations will include
     bonds, notes, bills and other evidences of indebtedness issued, assumed or
     guaranteed by the U.S. Government, its agencies or instrumentalities or of
     any state or municipality thereof or of the Dominion of Canada or any
     province thereof; provided the bonds are rated class 1 or 2 by the SVO of
     the NAIC.
4.   MORTGAGE-BACKED SECURITIES. The purchase of mortgage-backed securities will
     include obligations issued by:
     A.   The Government National Mortgage Association (GNMA)
     B.   The Federal National Mortgage Association (FNMA)
     C.   The Federal Home Loan Mortgage Corporation (FHLMC)

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     D.   FHA and VA insured or guaranteed loans, or any other government
          guaranteed loans.

5.   EQUITY SECURITIES. Equity securities are defined to include preferred
     stocks, mutual funds shares or common stocks which are traded on a national
     stock exchange, provided that the preferred stocks are rated class 1 or 2
     by the SVO of the NAIC.

INVESTMENT RESTRICTIONS

In the course of its investment management activity for ALNY, ALLSTATE
INVESTMENTS MAY NOT engage in or execute transactions in any of the following:
1.   Borrow money for any purpose on behalf of ALNY.
2.   Pledge, mortgage or hypothecate the assets of ALNY.
3.   Purchase the securities of any non-government issuer if, as a result, more
     than 10% of the total assets of the portfolio would be invested in the
     securities of the issuer.
4.   Invest more than 25% of the portfolio, measured at the time of investment,
     in a single industry. For the purpose of this restriction, mortgage-backed
     securities do not constitute an industry.
5.   Enter into any investment which would violate the ALNY Insurance Law.
6.   Purchase or sell investments, other than portfolio investments listed in
     policies 1 through 5 under Investment Policies above, without the prior
     written approval of ALNY.

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                                   APPENDIX A

CONTACT PERSON(S) FOR ALLSTATE INVESTMENTS:

                       Allstate Investments, LLC
                       3075 Sanders Road
                       Northbrook, IL 60062-7127
                       Attention: Investment Law (suite G5A)
                       Phone: (847) 402-6146
                       Facsimile: (847) 402-6649

               with concurrent copy to:

                       Allstate Investments, LLC
                       3075 Sanders Road
                       Northbrook, IL 60062-7127
                       Attention: Investment Department (Suite G3A)
                       Phone: (847) 402-7633
                       Facsimile: (847) 402-3902

CONTACT PERSON(S) FOR ALNY:

                       Allstate Life Insurance Company of New York
                       One Allstate Drive
                       Farmingville, NY 11738
                       Attention: James Brazda
                       Phone: (847) 402-5686
                       Facsimile: (847) 326-5070<Page>

                                                                   Exhibit 10.32

                          ALLSTATE FEDERAL SAVINGS BANK
                    CASH MANAGEMENT SERVICES MASTER AGREEMENT

This AGREEMENT is made as of March 16, 1999 between ALLSTATE INSURANCE COMPANY
("Customer"), operating under tax identification number 36-0719665 and having
its principal place of business at 2775 Sanders Road, Northbrook, IL 60062, and
ALLSTATE FEDERAL SAVINGS BANK, a Federal savings association ("AFSB"), having
its principal place of business at 2775 Sanders Road, Northbrook, IL 60062.

     SECTION 1. DESCRIPTION OF CASH MANAGEMENT SERVICES. Subject to the
provisions of this Agreement, AFSB agrees to provide the products and services
(the "Services") described in Service Supplements (the "Supplements") which are
entered into by Customer and AFSB. All references to the term "Agreement" will
include all supplements unless otherwise stated. Each Service is subject to the
provisions of this Agreement and the Supplement applicable to such Service. When
provisions of a Supplement are inconsistent with the provisions of this
Agreement, the provisions of the Supplement will apply to the Service covered by
that Supplement.

     SECTION 2. FEES. The Customer agrees to pay AFSB fees for each Service
which will be calculated according to AFSB current fee schedule attached hereto
as then in effect. The Customer's payment of fees will be in accordance with the
terms of this Agreement. AFSB may amend all fees for Services from time to time
upon thirty (30) days' written notice to the Customer.

     SECTION 3. FUNDS TRANSFERS.

          a)  All credits to the Customer's accounts for funds transfers which
     AFSB receives are provisional until AFSB receives final settlement for the
     funds according to the rules of the funds transfer system by which such
     funds have been transmitted. The Customer acknowledges and agrees that AFSB
     is entitled to a refund of the amount credited to the Customer's account
     for a transfer if AFSB does not receive final settlement, or if such
     transfer has been credited in error to the Customer's account.

          (b)  The periodic statements provided to the Customer by AFSB will
     notify the Customer of funds transfer payments received by AFSB for credit
     to the Customer's accounts at AFSB, including wire transfers, ACH credit
     entries and internal AFSB transfers. The Customer is hereby notified and
     agrees that AFSB shall not be required to provide any other notice to the
     Customer of such receipt of payments.

          (c)  AFSB is not responsible for detecting errors in any payment order
     issued by the Customer or any other person. The Customer is responsible for
     the contents of each funds transfer payment order which the Customer sends
     to AFSB. AFSB may rely on the information contained in any payment order,
     including the identifying number of any intermediary bank or beneficiary's
     bank, even if such number does not correspond to the bank identified by
     name. The beneficiary's bank and any intermediary bank may rely on the
     beneficiary's account number specified in any payment order originated by
     the Customer, even if such number does not correspond to the person or
     account identified by name.

     SECTION 4. ELECTRONIC COMMUNICATION AND RELATED SOFTWARE. Some Services
allow the Customer to electronically (a) receive information about the balance
of, or transactional activity in, the Customer's accounts at AFSB or its
affiliates, (b) issue payment orders or other instructions regarding Services or
its accounts at AFSB or its affiliates, and (c) initiate certain electronic
transactions. Account balances change on a frequent basis, and account
information provided electronically to the Customer is subject to updating,
verification, and correction. Accordingly, AFSB assumes no responsibility for
the

                                       -1-
<Page>

reliance by the Customer on such electronically communicated information which
is subsequently updated or corrected. If AFSB furnishes computer software to the
Customer in connection with any Services, AFSB warrants to the Customer that on
the day such software is delivered or installed by AFSB, it performs
substantially according to the detailed specifications that accompany such
software. If the Customer discovers that such software does not perform
properly, the Customer shall report it promptly and AFSB will repair or replace
the software as promptly as practicable. This is the customer's exclusive remedy
if such software fails to perform according to this limited warranty. AFSB may
recommend certain hardware for use by the Customer in connection with the
Services, but AFSB makes no representations or warranties with respect to that
hardware.

     SECTION 5. VENDORS. Any third party servicer or vendor hired by the
Customer in connection with any Service ("Vendor") shall be the Customer's agent
and the Customer will be liable for (a) any Vendor's failure to comply with any
security procedures or operating requirements relating to the applicable
Service, (b) all fees, costs and expenses owed to each Vendor for its services
on behalf of the Customer, and (c) any claims, damages, costs and expenses
incurred as a result of any Vendor's failure to perform, or delay or error in
performing its services on behalf of the Customer.

     SECTION 6. LIMITS AN LIABILITY AND FORCE MAJEURE. AFSB's liability to the
Customer for any loss or damage arising from or relating to this Agreement or
any of the Services, regardless of the form of action, shall be limited to
direct losses attributable to AFSB's gross negligence or willful misconduct, and
in no event shall AFSB be liable far any indirect consequential or special
damages. Neither the Customer nor AFSB shall incur any liability for any failure
or delay in carrying out any of its obligations under this Agreement if failure
or delay results from such party's acting in accordance with applicable laws,
regulations or rules or from acts of God, strike or stoppage of labor, power
failure, equipment failure, adverse weather conditions or any other cause beyond
such party's control. AFSB shall have no responsibility and shall incur no
liability for any act or failure to act by any other financial institution or
any other third party.

     SECTION 7. INDEMNITIES. The Customer agrees to indemnify and hold AFSB and
AFSB's agents harmless from and against any and all actions, claims, demands,
loss, liability or expenses whatsoever, including attorneys' fees and court
costs, resulting directly or indirectly from (i) the Customer's breach of any of
its representations, warranties or covenants under this Agreement, (ii) AFSB's
actions or omissions in connection with Services under this Agreement unless
such actions or omissions are determined to result from AFSB's gross negligence
or willful misconduct, and (iii) the failure, error, or delay by any Vendor (as
defined in Section 5) in performing its services for the Customer. The fees
payable by the Customer to AFSB for the Services are net of any sales, use,
value added excise or similar taxes, and the Customer shall be responsible for
the payment of any such taxes. This Section shall survive the termination of
this Agreement.

     SECTION 8. REPRESENTATIONS AND WARRANTIES.

     (a)  In addition to any representations and warranties in the Supplements,
     the Customer represents and warrants that (i) this Agreement and each
     Supplement have been authorized by all necessary corporate and governmental
     action and do not violate any provision of law or of the Customer's charter
     or by-laws or any other agreement binding upon the Customer, and (ii) the
     persons signing this Agreement and the Supplements on behalf of the
     Customer are authorized to do so.

          (b)  AFSB represents and warrants that (i) this Agreement and each
     Supplement have been authorized by all necessary corporate and governmental
     action and do not violate any provision of law or of AFSB's charter or
     by-laws or any other agreement binding upon AFSB, and (ii) the persons
     signing this Agreement and the Supplements on behalf of AFSB are authorized
     to do so. AFSB MAKES NO OTHER REPRESENTATIONS OR WARRANTIES, EITHER EXPRESS
     OR IMPLIED, OF ANY KIND WITH RESPECT TO ANY SERVICE OR AFSB's PERFORMANCE
     OF SERVICES UNDER THIS AGREEMENT, INCLUDING, WITHOUT

                                       -2-
<Page>

     LIMITATION, THOSE OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE,
     EXCEPT AS EXPRESSLY PROVIDED FOR IN A SUPPLEMENT. NO DESCRIPTIONS OR
     SPECIFICATIONS, WHETHER OR NOT INCORPORATED INTO ANY SUPPLEMENT, SHALL
     CONSTITUTE REPRESENTATIONS OR WARRANTIES OF ANY KIND.

     SECTION 9. CONFIDENTIALITY. The Customer agrees to safeguard all
information relating to the security procedures for the Services, including,
without limitation, personal identification numbers, codes and passwords used in
connection with the security procedures. The Customer agrees that such
information will not be disclosed to anyone other than the Customer's employees
who the Customer reasonably believes need to have such information, and the
Customer agrees to establish appropriate internal policies to ensure such
information will be treated as confidential among the Customer's employees and
between the Customer and third parties. This Section will survive termination of
this Agreement.

     SECTION 10. TERMINATION

          (a) This Agreement WILL continue in full force and effect until all
     Services have been terminated. Any Service may be terminated at any time by
     either party upon at least thirty (30) days' prior written notice to the
     other party. Only the Service(s) specified in such notice will be
     terminated, and no other Services will be affected.

          (b) AFSB may terminate this Agreement or any or all Services
     immediately in the event of (i) Customer's breach of a material obligation
     under this Agreement, (ii) Customer's insolvency, receivership or voluntary
     or involuntary bankruptcy, or the institution of any proceeding therefor,
     or any assignment for the benefit of the Customer's creditors, or if in the
     opinion of AFSB the financial condition of the Customer has become
     impaired, or (iii) the Customer's default under any agreement or instrument
     relating to indebtedness owed by the Customer to AFSB, and such default
     shall continue for a period of time sufficient to permit the acceleration
     of the maturity of such indebtedness. Even if this Agreement or any or all
     Services are terminated under this subsection, this Agreement shall
     continue in full force and effect as to all transactions that AFSB began
     processing before such termination.

          (c) Upon termination of any or all Services under this Agreement, all
     computer software licenses granted by AFSB to the Customer with respect to
     those terminated Services under the applicable Supplements shall
     automatically terminate. The Customer shall immediately return to AFSB the
     original and all copies made of all computer software programs licensed by
     AFSB to the Customer and all other documentation or materials provided to
     the Customer by AFSB in connection with the terminated Services, and the
     Customer shall promptly pay to AFSB all sums due or to become due under
     this Agreement relating to such Services which accrued prior to the date of
     termination.

     SECTION 11. NOTICES. Except as may be otherwise specified in a Supplement,
all notices and other communications by the Customer or AFSB relating to this
Agreement generally shall be in writing and, if to the Customer, addressed to
the Customer's primary mailing address as shown on AFSB's records, and if to
AFSB, addressed to 2775 Sanders Road, Northbrook, IL 60062, or at such other
address as AFSB may specify in writing. Any notice or communication to AFSB will
be effective when AFSB has actually received, and has had a reasonable time to
act on, any such notice. Any notice or communication to the Customer will be
effective either on the date it is actually received or 3 days after it was
mailed by first class certified or registered mail, return receipt requested and
addressed as provided in this Section (or to such other address the Customer may
specify in writing), whichever is earlier.

                                       -3-
<Page>

     SECTION 12. MISCELLANEOUS.

          (a) This Agreement (including the Supplements) constitutes the entire
     agreement of the Customer and AFSB and with respect to the Services (except
     as otherwise expressly provided in this Agreement or a Supplement), and
     supersedes and replaces any previously made proposals, representations,
     warranties or agreements, express or implied, either oral or in writing,
     between the parties. The Customer agrees that the mutual rights and duties
     of the parties under this Agreement shall also be governed by the terms and
     conditions applicable to the Customer's deposit accounts at AFSB, except
     that in the event of any conflict between this Agreement and such terms and
     conditions, the provisions of this Agreement will control.

          (b) AFSB may amend this Agreement by written notice to the Customer.
     Any amendment to this Agreement will be effective 30 days after notice of
     such amendment is sent to the Customer in accordance with Section 11,
     unless the Customer notifies AFSB in writing within that 30-day period of
     the Customer's unwillingness to be bound by the amendment. If the Customer
     is unwilling to be bound by the amendment, either party may terminate this
     Agreement for any or all Services as provided in Section 10. AFSB may amend
     the operating instructions for any Service by written notice to the
     Customer, which amendment will be effective at the time provided in
     Section 11 above, provided, however, that AFSB will endeavor to give the
     Customer prior written notice of amendments to operating policies or
     procedures when practicable.

          (c) The Customer may not assign this Agreement without AFSB's prior
     written consent. AFSB may not assign this Agreement without the Customer's
     prior written consent, except that AFSB may assign this Agreement, in whole
     or in part, without such consent to any subsidiary or affiliate of AFSB.

          (d) No party's failure or delay in exercising any right or remedy
     under this Agreement will operate as a waiver of such right or remedy, and
     no single or partial exercise by a party of any right or remedy under this
     Agreement will preclude any additional or further exercise of such right or
     remedy or the exercise of any other right.

          (e) Even if a provision of this Agreement is held to be invalid,
     illegal, or unenforceable, the validity, legality, or enforceability of the
     other provisions of this Agreement will not be affected or impaired by such
     holding.

          (f) This Agreement shall be binding upon and inure to the benefit of
     the parties to this Agreement and their respective legal representatives,
     successors and assigns. This Agreement is not for the benefit of any other
     person, and no other person shall have any right against the Customer or
     AFSB under this Agreement.

          (g) This Agreement shall be governed by and construed in accordance
     with the laws of the State of Illinois. The Customer hereby irrevocably
     consents and submits to the jurisdiction of any State Court of Illinois, or
     the United States District Court for the Northern District of Illinois and
     the Customer waives any and all objections which it may have to venue in
     such courts or the issuance of service of process in any such proceedings.
     The Customer agrees that any legal action or proceeding with respect to
     this Agreement, whether instituted by AFSB or the Customer

                                       -4-
<Page>

     will be commenced in such courts. AFSB and the Customer each irrevocably
     waives any right to trial by jury in any proceeding relating to this
     Agreement.

                                     NOTE:  If required by resolution, a second
                                     officer must sign below

ALLSTATE INSURANCE COMPANY

Signed:   /s/ James P. Zils        Signed:   /s/ Nancy M. Bufalino
          -----------------                  ---------------------

By:       James P. Zils            By:  Nancy M. Bufalino

Its:      Treasurer                Its: Assistant Treasurer

ALLSTATE FEDERAL SAVINGS BANK

Signed:   /s/ Thomas W. Buckley

By:       Thomas W. Buckley

Its:      President/CEO

Date:    3/25/99

                                       -5-
<Page>

                          ALLSTATE FEDERAL SAVINGS BANK
                            CORPORATE BILLING POLICY
                            (EFFECTIVE JULY 1, 1998)

Accounts are analyzed on a monthly basis to determine the net excess/deficit
allowance. The basis for the net excess/deficit allowance is the monthly Account
Analysis Statement. The net excess/deficit allowance is determined by taking the
earning allowance less total service charges. A net deficit position will result
in an amount owed to Allstate Federal Savings Bank. Payment of the deficit
amount will occur according to the following guidelines:

SETTLEMENT CYCLE OPTIONS

The standard settlement cycle is monthly and the standard payment method is a
direct debit against the client's account. Options exist for a quarterly billing
cycle and receipt of a bill versus a direct debit.

EXCESS COMPENSATION POSITION

An excess position on the Account Analysis Statement will result in no bill or
direct debit for the current settlement cycle. Carryover of an excess
compensation position is not permitted from one settlement cycle to another. If
the settlement cycle is quarterly, an excess compensation position in any month
can be used to offset a deficit compensation position for any other month within
that quarter. The billing year ends on December 31. Carryover of an excess is
not permitted from one calendar year to another.

PAYMENT TERMS FOR BILLED ACCOUNTS

The bill is PAYABLE UPON RECEIPT. If payment is not received within the number
of days specified on the bill, a debit for the bill amount will be charged
against the client's Key account as identified on the bill. If the Key account
is closed, another account within the relationship will be charged. This debit
will be clearly identified on the checking account statement as a BALANCE
DEFICIENCY CHARGE.

Any additional terms of non-payment are contained on the bill.

CLIENT RESPONSIBILITIES

It is the client's responsibility to review the monthly account analysis
statement for accuracy. If a discrepancy is identified, the client has 30 days
after generation of the analysis statement or the bill, to notify the bank of a
dispute. Failure to notify the bank within the above time frame means the client
agrees with the results shown on the Account Analysis Statement, including the
net excess/deficit allowance.

Inquiries regarding the Corporate Billing Policy, Account Analysis results, or
the billed amount should be referred to your Relationship Manger.

NOTE: No earnings allowance to pay for services occurs on Interest Bearing
Accounts since interest is paid on these accounts.

<Page>

                          ALLSTATE FEDERAL SAVINGS BANK
                        CASH MANAGER CONCENTRATION MODULE

                               SECURITY PROCEDURES

SERVICE DESCRIPTION

This Service enables the Customer to initiate Entries between its own Allstate
Federal Savings Bank ("AFSB") account and its own or third-party accounts at
other banks. AFSB is the "originating" Bank, and the other banks are "receiving"
banks. For "on-us" Entries, AFSB is both the originating and receiving bank. The
Entries can be ACH Credits (disbursements) to be paid from the Customer's AFSB
account, or ACH Debits (collections) for deposit to the Customer's AFSB account.
For a receiving bank not eligible to receive an ACH Debit, a paper depository
transfer check call be prepared for deposit to the Customer's AFSB account. All
bank accounts must be corporate business accounts and not consumer accounts.

The AFSB Cash Manager Concentration Module is used for repetitive Entries only,
using the location number which AFSB establishes for each receiving bank account
during setup. Each location will be set up to initiate a collection Entry only
or a disbursement Entry only. The Customer can access the system by one or more
of the following methods. Security procedures apply to each method, as described
in this Appendix.
Access methods are:
- PC or terminal input direct to the AFSB Cash Manager system.
- Telephone "touch tone" deposit reporting input.
- Telephone voice deposit reporting instructions.
To initiate an Entry, the Customer inputs or reports Entry Data comprised of a
location number and an associated dollar amount, which is processed by AFSB's
Computer systems to originate the collection or disbursement Entry. A PC or
terminal Customer can also use location numbers to produce various historical
transaction reports for its accounts.

The procedures described in this Appendix are a Security Procedure to be used by
AFSB to verify the authenticity of input to the Concentration Module in the name
of the Customer.

SERVICE SETUP SECURITY PROCEDURES

An Officer(s) authorized by the Customer's corporate resolution on file at AFSB
Bank to designate an individual(s) to originate or arrange funds transfers, will
specify a person to be the "Designated Contact" to receive all confidential
codes and passwords from AFSB. The Designated Contact will issue specific
instructions to AFSB for each location to be established, including receiving
bank routing number, account number at that bank, and collection or disbursement
function for Entries to be originated using that location. The Designated
contact will also issue instructions to AFSB for each location to be deleted.
Such instructions will be submitted in writing in a form acceptable to AFSB.

In addition to the Designated Contact, the officer(s) authorized by the
Customer's corporate resolution may authorize one or more other persons to
facilitate ongoing Service operation:

"OPERATIONS CONTACT" for ongoing Service administration, including:
- to send Entry Data to AFSB
- to call AFSB with any deletions to Entry Data reversals of Entries
- to be called by AFSB for Service-related problem resolution.

Such authorization of the Designated Contact and any other persons will be
submitted in writing to AFSB in a form acceptable to AFSB. Only the Designated
Contact will be authorized to issue new Service instructions to AFSB, or change
existing Service instructions. The Designated Contact will be authorized to
perform all functions, even if additional persons are specified to serve as the
Operations Contact.

                                       -1-
<Page>

AFSB personnel will set up the Service acting upon instructions received from
the Designated Contact. Instructions for Service usage, principally consisting
of a service guide, instruction cards, identification codes, passwords, company
numbers and location numbers, are sent to the Designated Contact for
distribution to the personnel who will use the Service. At each stage of setup,
AFSB will treat all Customer information as confidential and handle such
information in a secure manner. After delivery by the Bank, the Customer's
Designated Contact and other Customer personnel shall treat all service guides,
instruction cards, identification codes, passwords, company numbers and location
numbers in a confidential and secure manner.

SERVICE OPERATION SECURITY PROCEDURES

PC OR TERMINAL DIALUP - this access method employs a dual-level identification
code and password security procedure. A "Customer Identification Code" and a
password are issued for the Customer at the company-wide level. An additional
"Operator Identification Code" and password is issued for each Service user. The
number of such Operator Identification Codes is specified by the Customer, and
such Operator Identification Codes are assigned by AFSB for the convenience of
the Customer, and AFSB does not assign such Operator Identification Codes to
specific Customer employees or other individuals.

The Customer calls into the Bank's telecommunications network provider, and
enters the Customer Identification Code and password, followed by the Operator
Identification Code and password. If these codes are accepted by the Bank's
system, and if the Concentration Module is established for that Operator
Identification Code, the Customer gains access to the Service. The Customer is
prompted for location code and dollar amount Entry Data. The Customer can also
obtain historical transaction information reporting.

Any individual who gains access to the Service using the Customer's
Identification Codes and passwords, and using the Customer's location numbers,
can initiate Entries for any and all of the Customer's locations. AFSB cannot
restrict an Identification Code to usage of only part of the Service. THE
CUSTOMER MUST CONTROL INDIVIDUAL ACCESS TO IDENTIFICATION CODES, PASSWORDS AND
LOCATION NUMBERS. AFSB shall conclusively presume that all Entry Data input data
the Concentration Module, using such Identification Codes and passwords, as
having been made by a person authorized to initiate Entries, and AFSB will
regard Entry Data input by such a person as being a funds transfer instruction
authorized by the Customer.

TELEPHONE "TOUCH-TONE" - the Customer calls the Bank's service bureau and
follows an audio response script provided by AFSB. The Customer inputs Entry
Data comprised of a Company Number and Identification Number issued by AFSB, and
a dollar amount. This access method restricts the Customer to initiating an
Entry for the single location identified by the Company Number and
Identification Number. Each Customer location set up for this access method will
also be set up for the Telephone Voice access method. as described below, to
provide a back-up procedure if the audio response system should not be
available.

TELEPHONE VOICE REPORTING - the Customer calls AFSB's service bureau and follows
a conversation script provided by AFSB. The Customer reports Entry Data to the
operator, comprised of a Company Number and Identification Number issued by
AFSB, and a dollar amount. This access method restricts the Customer to
initiating an Entry for the single location identified by the Company Number and
Identification Number.

AFSB shall conclusively presume that any caller to the Bank's Concentration
Module service bureau, possessing the appropriate Company Number and
Identification Number for a location, is authorized to initiate Entries, and
AFSB will regard Entry Data from such a caller as being a funds transfer
instruction authorized by the Customer.

                                       -2-
<Page>

AMENDMENT OR CANCELLATION SECURITY PROCEDURES

Irrespective of the input method used, AFSB's standard procedure is to issue to
the Customer at least one set of Identification Codes and passwords enabling the
Customer to access the Service via PC or terminal. This permits the Customer to
review today's Entry Data, and change or cancel today's Entry Data for any of
the Customer's locations, at the Customer's discretion, up to a pre-established
deadline time. THE CUSTOMER MUST CONTROL INDIVIDUAL ACCESS TO IDENTIFICATION
CODES, PASSWORDS AND LOCATION NUMBERS.

                                       -3-
<Page>

                          ALLSTATE FEDERAL SAVINGS BANK

             APPENDIX TO ACH ORIGINATION PAYMENT SERVICE SUPPLEMENT

                             ACH SECURITY PROCEDURES

The security procedures are to verify the authenticity of Entry Data delivered
in the Customer's name to AFSB. The security procedures are not used to detect
an error in the transmission, delivery, or content of the Entry Data.

The security procedure which AFSB recommends as commercially reasonable for the
origination of ACH transactions is the Computer Transmission of Entry Data files
to AFSB, containing Customer Identification Codes and passwords assigned by
AFSB. AFSB also requires confirmation of each Entry Data entry file, and
recommends the electronic acknowledgment confirmation sent by AFSB to the
Customer.

These security procedures are more fully described in the remainder of this
document.

SERVICE DESCRIPTION

The Service is being provided to the Customer to facilitate the regular
collection or disbursement of payments, whereby the Customer initiates Entries
between its own AFSB account and its own or third party accounts at AFSB or at
other banks. The Customer delivers Entry Data to AFSB for processing, and based
on that Entry Data, AFSB will create electronic credits or debits (credit or
debit Entries) to be submitted for Settlement to the Automated Clearing House
(ACH) network.

The Customer must comply with all the requirements of the National Automated
Clearing House Association (NACHA), including the format specifications for
processing Entries through the ACH system. The Customer must deliver the Entry
Data to AFSB in the required format as specified by AFSB, including any
identification numbers and passwords required for a security procedure. If
payments represent consumer transactions, then prenotification my be required.
Corporate transactions do not require prenotification. It is the Customer's
responsibility to comply with any prenotification requirement.

SERVICE SETUP

The Customer contracts with AFSB to originate or arrange funds transfers on its
behalf. AFSB acts upon the instructions from the persons who are authorized to
act for the Customer (by resolution, agreement or course of dealing) to set-up
and utilize this Service, including all testing, operations, implementation and
support not limited to the following:

- Submit test Entry Data and receive and verify test results.
- Send Entry Data to AFSB
- Confirm with AFSB Entry Data Control Totals
- Call AFSB with any deletions to Entry Data or reversals of Entries
- Resolve service-related problems.

AFSB will treat all Customer information as confidential and handle such
information in a secure manner. AFSB personnel set up the Service acting upon
instructions from the Customer. AFSB delivers to the Customer the Identification
Code, passwords, instructions, reports, and any information related to the
Service for distribution to the Customer personnel involved in using the
Service. This Information is under the control of the Customer and must be
treated by Customer personnel in a confidential and secure manner. In
particular, identification codes required for a security procedure must be
restricted to persons using the Service.

                                       -1-
<Page>

SERVICE OPERATION

AFSB presumes that the Customer will restrict access to the Identification Codes
and passwords to only those individuals using the Service, and that those
individuals in possession of the Identification Codes and passwords are
authorized to act on the Customer's behalf to submit Entry Data and give other
instructions. If at any time the Customer determines that its Identification
Codes or passwords have been compromised, AFSB should be contacted immediately
to assist in changing the affected Identification Codes or passwords.

SUBMISSION OF ENTRY DATA

1.   COMPUTER TRANSMISSION: AFSB's communication system identifies the Customer
by verifying the Identification Codes and passwords which have been previously
established for the Customer. The ACH processing system further interrogates the
File/Batch Header Identification Codes to verify that the Customer's file is
authorized for processing. AFSB shall conclusively presume that all Entry Data
using such Identification Codes have been submitted by a person authorized to
initiate Entries, and AFSB will regard that Entry Data as being a funds transfer
instruction authorized by the Customer.

2.   TAPE DELIVERY: AFSB does not regard the delivery of Entry Data on tape as a
commercially reasonable security procedure. If the Customer uses Tape Delivery,
then AFSB will inform the Customer of limited security procedures used by some
other customers for tape delivery and Customer may choose to use such a
procedure. If AFSB accepts such Entry Data or funds transfer instruction in good
faith, then the Customer agrees to be bound by such Entry Data or funds transfer
instruction, whether or not authorized, and the Customer will be deemed to have
refused the security procedures that AFSB offers and recommends as commercially
reasonable.

CONFIRMATION PROCEDURES

Following submission of Entry Data, AFSB requires that each Entry Data file be
confirmed by the Customer. AFSB recommends the Automated Acknowledgment
Confirmation procedure.

If a Customer currently using the Manual Confirmation procedure desires to
convert to the recommended Automated Acknowledgment Confirmation procedure, the
Customer should request setup information and assistance by calling its assigned
AFSB Product Marketing Representative or Implementation Coordinator.

1.   AUTOMATED ACKNOWLEDGMENT CONFIRMATION PROCEDURE: AFSB calls the Customer at
a telephone number specified in advance by the Customer during service setup.
AFSB then transmits control total information from the Customer Entry Data which
AFSB has received. The information may be delivered to the Customer as either a
data transmission or a telecopy, or both. If the Customer elects to receive a
telecopy to their designated number, it is the Customer's responsibiliry to
ensure that the receiving telecopy ("fax") machine is maintained in good working
order and in a secure location. The Bank recommends that the Customer protect
the confidentiality of the information delivered by either data transmission or
fax.

-  For both data transmission and telecopy, the Customer will verify the control
   total information received from AFSB. The Customer is responsible for
   reviewing the confirmation to authenticate the funds transfer instruction
   submitted to AFSB in the Customer's name:

-  If the acknowledgment confirmation does not contain funds transfer
   instructions subrnitted by the Customer, or if the Customer detects an error
   in the funds transfer instructions, the Customer is responsible for notifying
   AFSB.

-  If the Customer has submitted an Entry Data file to AFSB and has not received
   an acknowledgment confirmation within the usual and expected time frame, the
   Customer is responsible for notifying AFSB of non-receipt.

-  If the Customer receives an acknowledgment confirmation and has not submitted
   an Entry Data file to AFSB, the Customer is responsible for notifying AFSB.

                                       -2-
<Page>

IN EACH CIRCUMSTANCE, AFSB RECOMMENDS AND URGES THE CUSTOMER TO NOTIFY AFSB
IMMEDIATELY OF THE EXCEPTION CONDITION DETECTED BY THE CUSTOMER.

A correct acknowledgment confirmation does not require any response from the
Customer. AFSB will presume that by NOT receiving a response from the Customer,
that the Customer has verified the correctness of the control total information,
and AFSB will proceed with normal ACH processing.

2.   MANUAL CONFIRMATION PROCEDURE: If the Customer declines the recommended
Automated Acknowledgment Confirmation security procedure, then the Customer WILL
use the Manual Confirmation procedure:

     - The Customer will call AFSB at the time of transmission of the Entry Data
       file, or promptly following transmission of the Entry Data file.

     - The Customer will provide file control total information from the Entry
       Data file submitted to AFSB. This information consists of the dollar
       value of the payments, intended settlement date(s) and the number of
       payment transactions. This information will be captured by the Bank, on a
       recorded telephone line.

     - AFSB compares the Entry Data File totals with the information received
       from the Customer. If the Customer information matches, AFSB will perform
       normal ACH processing. If the Customer information does not match, AFSB
       will notify the Customer and suspend file processing until the Customer
       resolves the inconsistency between the Entry Data File AFSB received and
       the control total information provided by the Customer.

CANCELLATION OR REVERSAL OF ENTRY DATA

The following Security Procedure applies to Customer instructions to Entry Data
not yet released to the ACH, or to REVERSE Entries already completed and
released to the ACH:

If the Customer wishes to perform a deletion or reversal, the Customer contacts
AFSB ACH operations, at the telephone number specified during the service setup,
to initiate the transaction request. The Customer provides AFSB with the
appropriate information to complete the request. AFSB will verify, by comparison
to the Entry Data File, the deletion or reversal request received from the
Customer. If the information does not match the original Customer Entry Data,
AFSB will contact the Customer to resolve the problem prior to processing the
request. This information is captured on recorded telephone line. NOTE: THIS;
PROCEDURE DOES NOR ALLOW FOR THE ADDITION OF NEW TRANSACTIONS, IT ONLY ALLOWS
FOR THE DELETION OR REVERSAL OF TRANSACTIONS PREVIOUSLY RECEIVED.

                                       -3-
<Page>

                                   ACH PRICING

                          Allstate Federal Savings Bank

<Table>
<Caption>
                                                                             Price per
Pricing Categories                                                              Unit
<S>                                                                      <C>
DEBIT/CREDIT MEMO:                                                               $    .75

ACH Return Item                                                                  $    .25

ACH Receiver File                                                                $  15.00

ACH Collections/Credits Originated:  Less than 1,000,000 items per month         $  0.034

ACH Collections/Credits Originated:  Over 1,000,000 items per month              $ 0.0325

Regular Billing Deadline or Premium Surcharge (late delivery)                    $   0.01

ACH CCD/PPD Addenda Origination                                                  $   0.02

ACH Pre-Authorized Check Surcharge                                               $   0.25

Monthly Account Maintenance                                                      $  17.50

ACH Deletes-Reversals                                                            $   7.50

Auto Wire-Outgoing Repetitive                                                    $   7.00

Auto Wire-Book Repetitive                                                        $   2.50

Manual Outgoing Wire                                                             $  15.00

Manual Wire-Book Non-Repetitive                                                  $   5.00

Domestic Wire Incoming                                                           $   6.00

                                                                         January 13, 1999
</Table>

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00038-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00038-of-00352.parquet"}]]