Document:

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                                                                    EXHIBIT 10.7

                              MAX RE CAPITAL LTD.
                            2000 STOCK INCENTIVE PLAN

     1.   Purpose.  The purpose of the Max Re Capita Ltd.  2000 Stock  Incentive
          -------
          Plan (the  "Plan") is to enhance  the  ability of Max Re Capital  Ltd.
          (the "Company") and its subsidiaries to attract employees, consultants
          and  directors  of  outstanding  ability  and  to  provide  employees,
          consultants and directors with an interest in the Company  parallel to
          that of the Company's shareholders.

     2.   Definitions.
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               (a)  "Award" shall mean an award  determined  in accordance  with
the terms of the Plan.

               (b)  "Board" shall mean the Board of Directors of the Company.

               (c)  "Cause"  shall  mean  (i) if a  Participant  is  party to an
employment  agreement or  consulting or similar  agreement  with the Company and
such agreement includes a definition of Cause, the definition  contained therein
with respect to that  Participant or (ii) if no such  employment,  consulting or
similar  agreement  exists,  it shall mean (A) a Participant's  habitual drug or
alcohol  use;  (ii)  a   Participant's   conviction  by  a  court  of  competent
jurisdiction,  or a  pleading  of "no  contest"  or  guilty  to a felony  or the
equivalent  if outside  the United  States or any other crime  involving  fraud,
dishonesty  or  moral  turpitude;  (iii)  a  Participant's  engaging  in  fraud,
embezzlement  or  any  other  misconduct  with  respect  to the  Company  or its
affiliates;  (iv) a Participant's  violation of any written Company  policies or
rules regarding  conduct;  or (v) a Participant's  failure or refusal to perform
his duties for the Company or a Subsidiary.

               (d)  "Change  in  Control"  shall  mean  (i) a sale,  assignment,
transfer or other disposition of securities in one or more related  transactions
where  the  shareholders   immediately   prior  to  such  transaction  cease  to
beneficially  own  more  than  50% of the  total  combined  voting  power of the
Company's outstanding securities; (ii) a merger,  consolidation,  reorganization
or similar  corporate event in which the shareholders  immediately prior to such
transaction cease to beneficially own more than 50% of the total combined voting
power of the  Company's  outstanding  securities or more than 50% or more of the
total  combined  voting  power of the  resultant  corporation  or  entity if the
Company  does not  survive  such  transaction;  or  (iii)  the  sale,  transfer,
assignment or other  disposition  of all or  substantially  all of the Company's
property,  assets or business to one or more unrelated parties.  Notwithstanding
the  foregoing,  no Change in Control shall be deemed to occur as a result of an
Initial  Public  Offering  of the Company or any  necessary  actions  taken,  as
determined by the Board, in order to effectuate such Initial Public Offering.

               (e)  "Code"  shall mean the  Internal  Revenue  Code of 1986,  as
amended.

               (f)  "Committee"  shall  mean  (i)  prior  to an  Initial  Public
Offering,  and subject to the  provisions of Section 4 hereof,  the entire Board
and (ii) subsequent to an Initial Public  Offering,  the Board or a committee of
at least two members of the Board  appointed by the Board to administer the Plan
and to  perform  the  functions  set  forth  herein  and who  are  "non-employee
directors"  within the meaning of Rule 16b-3 as promulgated  under Section 16 of
the Securities Exchange Act of 1934, as amended (the "Exchange Act") and who are
also "outside directors" within the meaning of Section 162(m) of the Code.
<PAGE>

               (g)  "Common Stock" shall mean the common stock, $ 1.00 par value
per share, of the Company.

               (h)  "Fair Market Value" per share as of a particular  date shall
mean the last reported sale price (on the day  immediately  preceding such date)
of the Common  Stock on the New York Stock  Exchange  (or any other  exchange or
national  market system upon which price  quotations  for the  Company's  Common
Stock is regularly available); provided, however, that prior -------- ------- to
an Initial  Public  Offering,  Fair Market Value per share shall mean, as of any
date,  the fair  market  value on such date as  determined  in good faith by the
Board, but shall be at least book value per share.

               (i)  "Immediate  Family  Member" shall mean,  except as otherwise
determined  by  the   Committee,   a   Participant's   children,   stepchildren,
grandchildren, parents, stepparents, grandparents, spouse, siblings, in-laws and
persons related by reason of legal adoption.

               (j)  "Initial Public Offering" shall mean the consummation of the
first public  offering of the Company's  Common Stock pursuant to a registration
statement  (other than on Form S-8 or successor  forms) filed with, and declared
effective by the Securities and Exchange Commission.

               (k)  "Incentive  Stock Option" shall mean a stock option which is
intended to meet the requirements of Section 422 of the Code.

               (l)  "Non-Employee  Director"  shall mean any member of the Board
who is not an  employee  of the  Company or any  Subsidiary  or is not  directly
nominated by a shareholder of the Company.

               (m)  "Nonqualified  Stock Option" shall mean a stock option which
is not intended to be an Incentive Stock Option.

               (n)  "Option"  shall mean either an  Incentive  Stock Option or a
Nonqualified Stock Option.

               (o)  "Participant"  shall mean an employee,  consultant,  service
provider,  or  director  of  the  Company  or its  Subsidiaries  and  any  other
individual  who,  will  become an  employee,  consultant,  service  provider  or
director of the Company or it  Subsidiaries  after the date of grant,  in either
case, who is selected to participate in the Plan in accordance with Section 5.

               (p)  "Subsidiary"  shall mean any  affiliate or subsidiary of the
Company;  provided,  that,  with respect to Incentive  Stock Options,  such term
          --------   ----
shall mean any subsidiary of the Company that is a corporation  and which at the
time  qualifies  as a  "subsidiary  corporation"  within the  meaning of Section
424(f) of the Code.
<PAGE>

     3.   Shares Subject to the Plan.  Subject to adjustment in accordance  with
          --------------------------
Section  17, the total of the number of shares of Common  Stock  which  shall be
available  for the grant of Awards  under the Plan  shall not  exceed  1,200,000
provided, that, for purposes of this limitation, any shares subject to an Option
which is canceled or expires without  exercise shall again become  available for
Award  under  the  Plan.  Upon  forfeiture  of  Awards  in  accordance  with the
provisions of the Plan and the terms and  conditions  of the Award,  such shares
shall no longer be counted  against  any  determination  of the number of shares
available  under the Plan and shall be available for subsequent  Awards.  Shares
tendered by a Participant to pay all or part of the option price of an Option or
to pay all or part of the taxes  associated  with the exercise of such Option or
shares of Common Stock which are withheld upon exercise of an Option which would
have otherwise been issued upon exercise of such Option shall be again available
for issuance pursuant to Nonqualified  Stock Options under the Plan.  Subject to
adjustment  in  accordance  with  Section 17, no  Participant  shall be granted,
during any  calendar  year,  Options to purchase  more than [ ] shares of Common
Stock.  Common Stock available for issue or distribution under the Plan shall be
authorized  and  unissued  shares or shares  reacquired  by the  Company  in any
manner.

     4.   Administration.
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               (a)  The Plan  shall be  administered  by the  Board,  unless and
until the Board shall appoint a Committee to administer the Plan. All references
to the Committee  hereinafter shall mean the Board if no such Committee has been
appointed.

               (b)  The   Committee   shall  (i)   approve  the   selection   of
Participants,  (ii)  determine  the type of Awards  to be made to  Participants,
(iii)  determine  the number of shares of Common Stock  subject to Awards,  (iv)
determine the terms and  conditions of any Award granted  hereunder  (including,
but not limited to, any restriction and forfeiture conditions on such Award) and
(v) have the authority to interpret the Plan, to establish,  amend,  and rescind
any rules and  regulations  relating  to the Plan,  to  determine  the terms and
provisions  of any  agreements  entered  into  hereunder,  and to make all other
determinations  necessary or advisable for the  administration  of the Plan. The
Committee  may  correct  any  defect,  supply  any  omission  or  reconcile  any
inconsistency  in the Plan or in any Award in the  manner  and to the  extent it
shall deem desirable to carry it into effect.

               (c)  Any action of the Committee  shall be final,  conclusive and
binding  on  all  persons,  including  the  Company  and  its  subsidiaries  and
shareholders,  Participants  and  persons  claiming  rights  from or  through  a
Participant.

               (d)  The  Committee  may delegate to officers or employees of the
Company or any subsidiary,  and to service providers, the authority,  subject to
such terms as the Committee shall determine, to perform administrative functions
with respect to the Plan and Award agreements.
<PAGE>

               (e)  Members of the  Committee and any officer or employee of the
Company  or any  subsidiary  acting at the  direction  of, or on behalf  of, the
Committee shall not be personally  liable for any action or determination  taken
or made in good  faith  with  respect  to the Plan,  and  shall,  to the  extent
permitted by law, be fully  indemnified  by the Company with respect to any such
action or determination.

     5.   Eligibility.  Individuals  eligible to receive  Awards  under the Plan
          -----------
shall be the  officers,  other  employees,  consultants,  service  providers and
directors of the Company and its  Subsidiaries  and such other  individuals  who
will become  employees,  consultants,  service  providers  or  directors  of the
Company  and its  Subsidiaries  after the date of  grant,  in  either  case,  as
selected by the Committee.  In addition,  all  Non-Employee  Directors  shall be
eligible to receive Options as provided in Section 11 hereof.

     6.   Awards.  Awards  under the Plan may  consist  of  Options,  restricted
          ------
Common Stock,  restricted Common Stock units,  purchases,  share awards or other
awards  based on the value of the Common  Stock.  Awards shall be subject to the
terms  and  conditions  of the  Plan  and  shall be  evidenced  by an  agreement
containing  such  additional  terms and conditions,  not  inconsistent  with the
provisions of the Plan, as the Committee shall deem desirable.

     7.   Options.  Options  may be  granted  under the Plan in such form as the
          -------
Committee may from time to time approve pursuant to terms set forth in an Option
agreement.  The Committee may alter or waive, at any time, any term or condition
of an Option that is not mandatory under the Plan.

               (a)  Types of  Options  and  Limitation  on Amount.  Each  Option
                    ---------------------------------------------
agreement  shall state whether or not the Option will be treated as an Incentive
Stock Option or a Nonqualified Stock Option.  Incentive Stock Options shall only
be granted to employees of the Company and its  Subsidiaries.  No employee shall
be granted  Incentive  Stock Options which,  when first  exercisable  during any
calendar  year  (combined  with all other  incentive  stock  option plans of the
Company and its Subsidiaries),  will permit such employee to purchase stock that
has an  aggregate  Fair Market  Value  (determined  as of the time the Option is
granted) of more than $100,000; provided, that, any Options granted in excess of
                                --------  ----
such amount shall automatically be deemed to be Nonqualified Stock Options.

               (b)  Option  Price.  The  purchase  price per share of the Common
                    -------------
Stock purchasable  under an Option shall be determined by the Committee,  but in
the case of Incentive Stock Options, the Option price will be not less than 100%
of the Fair  Market  Value of the  Common  Stock on the date of the grant of the
Option and in the case of Incentive  Stock Options granted to an employee owning
stock possessing more than 10% of the total combined voting power of all classes
of stock of the Company and its Subsidiaries (a "10% Shareholder") the price per
share specified in the agreement  relating to such Option shall not be less than
110% of the Fair  Market  Value  per  share of the  Common  Stock on the date of
grant.

               (c)  Option Period. The term of each Option shall be fixed by the
                    -------------
Committee,  but no Option shall be exercisable  after the expiration of 10 years
from the date the  Option is  granted;  provided,  however,  that in the case of
Incentive  Stock Options  granted to 10%  Shareholders,  the term of such Option
shall not exceed 5 years from the date of grant.
<PAGE>

               (d)  Exercisability.  Each Option shall vest at a rate determined
                    --------------
by the Committee at or subsequent to grant.

               (e)  Method of Exercise. Options may be exercised, in whole or in
                    ------------------
part, by giving written notice of exercise to the Company  specifying the number
shares of Common Stock to be purchased.  Such notice shall be accompanied by the
payment in full of the Option purchase price. Such payment shall be made: (a) in
cash, or (b) to the extent  authorized by the Committee,  by surrender of shares
of Common  Stock  owned by the  holder of the Option for at least six (6) months
prior to exercise of the Options,  or (c) following an Initial Public  Offering,
through  simultaneous  sale through a broker of shares acquired on exercise,  as
permitted  under  Regulation  T of the  Federal  Reserve  Board,  or (d) through
additional methods  prescribed by the Committee,  or (e) by a combination of any
such methods. A Participant's  subsequent  transfer or disposition on any shares
acquired upon exercised on an Option shall be subject to any applicable  U.S. or
non-U.S. laws, specifically securities law.

     8.   Restricted Stock. The Committee may from time to time award restricted
          ----------------
Common Stock under the Plan to eligible  Participants.  Restricted  Common Stock
may not be sold,  assigned,  transferred or otherwise disposed of, or pledged or
hypothecated  as collateral for a loan or as security for the performance of any
obligation or for any other purpose,  for such period (the "Restricted  Period")
as the Committee shall determine. The Committee may define the Restricted Period
in terms of the passage of time or in any other manner it deems appropriate. The
Committee  may alter or waive at any time any term or  condition  of  restricted
Common Stock that is not mandatory under the Plan.

     Unless  otherwise  determined  by  the  Committee,  upon  termination  of a
Participant's  service  relationship  with the Company or any Subsidiary for any
reason prior to the end of the Restricted  Period,  the restricted  Common Stock
shall be forfeited and the  Participant  shall have no right with respect to the
Award.

     Except as restricted  under the terms of the Plan and any Award  agreement,
any Participant  awarded  restricted Common Stock shall have all the rights of a
shareholder.

     If a share certificate is issued in respect of restricted Common Stock, the
certificate  shall be  registered in the name of the  Participant,  but shall be
held by the  Company  for the  account of the  Participant  until the end of the
Restricted Period.

     The  Committee  may  also  award  restricted  Common  Stock  in the form of
restricted  Common Stock units  having a value equal to an  identical  number of
shares of Common Stock.  Payment of restricted  Common Stock units shall be made
in shares of Common Stock or in cash or in a combination thereof (based upon the
Fair Market Value of the Common Stock on the day the Restricted Period expires),
all as determined by the Committee in its sole discretion.

     9.   Stock Purchases.  The Committee may authorize eligible  individuals to
          ---------------
purchase  Common  Stock in the Company at a price  above,  equal to or below the
Fair  Market  Value of the  shares at the time of grant.  Any such  offer may be
subject to the  conditions  and terms the Committee may impose.  The Company may
make loans available to eligible Participants in connection with the purchase of
shares of Common Stock, as the Committee, in its discretion,  may determine. The
terms and conditions of any such loans shall be determined by the Committee,  in
its sole discretion.
<PAGE>

     10.  Stock Awards. Subject to such performance and employment conditions as
          ------------
the Committee may determine, awards of shares of Common Stock or awards based on
the value of the  shares  of Common  Stock  may be  granted  either  alone or in
addition to other Awards  granted under the Plan.  Any Awards under this Section
10 and any shares  covered by any such Award may be  forfeited  to the extent so
provided in the Award  agreement,  as  determined by the  Committee.  Payment of
shares of Common  Stock awards made under this Section 10 which are based on the
value  of  shares  of  Common  Stock  may be made in  shares  or in cash or in a
combination  thereof (based upon the Fair Market Value of the shares on the date
of payment), all as determined by the Committee in its sole discretion.

     11.  Non-Employee Director Stock Options.
          -----------------------------------

               (a)  Options.  Nonqualified  Stock  Options  to  purchase  10,000
                    -------
shares of Common  Stock  shall be  granted  automatically  to each  Non-Employee
Director who is a Non-Employee  Director on the day the shareholders approve the
adoption of the Plan.  With  respect to each  person who becomes a  Non-Employee
Director after such date,  Nonqualified  Stock Options to purchase 10,000 shares
of  Common  Stock  shall be  granted  automatically  to each  such  Non-Employee
Director  on  the  day he or she  first  becomes  a  Non-Employee  Director.  In
addition,   on  the  day  after  each  annual  meeting  of  shareholders,   each
Non-Employee Director serving at such time shall be granted a Nonqualified Stock
Option to purchase 2,000 shares of Common Stock.

               (b)  Option  Price.  The purchase  price for each Option  granted
                    -------------
under this Section 11 to a Non-Employee  Director shall be the Fair Market Value
of the Common Stock on the date of grant of the Option.

               (c)  Exercisability.  Each Option  granted  under  Section  11(a)
                    --------------
shall  become  exercisable  and vest at a rate of  33-1/3% on each of the first,
second and third anniversaries of the date of grant of such Option.

               (d)  Method of Exercise.  Each Option  granted under this Section
                    ------------------
11 may be exercised in the same manner as provided in Section 7(e).

               (e)  Option  Period.  Each Option  granted  under this Section 11
                    --------------
shall  terminate 10 years from the date of grant  unless  sooner  terminated  by
reason  of  termination  of  service  as a  director  of  the  Company  and  its
Subsidiaries.

               (f)  Termination of Director Status.  In the event of termination
                    ------------------------------
of service as a director of the Company for any reason, any portion of an Option
granted  under this  Section 11 that would have  become  vested  following  such
termination of service shall automatically  become vested and the Option (to the
extent  exercisable as of the date of termination),  shall be exercisable by the
director or any prior  transferee or by the Non-Employee  Director's  designated
beneficiary,  or if none,  the  person(s) to whom such  Non-Employee  Director's
rights  under the Option  are  transferred  by will or the laws of  descent  and
distribution,  for one (1)  year  following  such  termination  (but in no event
beyond the term of the Option), and shall thereafter terminate.
<PAGE>

               (g)  Except as expressly  provided in this Section 11, any option
granted to a Non-Employee  Director  hereunder shall be subject to the terms and
conditions of the Plan.

     12.  Change in Control.  Upon the  occurrence  of a Change in Control,  all
          -----------------
Options  shall  automatically  become  vested  and  exercisable  in full and all
restrictions,  if any, on any Common Stock awards,  restricted  Common Stock, or
restricted Common Stock units granted hereunder shall  automatically  lapse. The
Committee  may,  in  its  discretion,   include  such  further   provisions  and
limitations  in any agreement  documenting  such Awards as it may deem equitable
and in the best interests of the Company.

     13.  Withholding.  The  Company  shall  have the right to  deduct  from any
          -----------
payment to be made pursuant to the Plan the amount of any taxes  required by law
to be withheld  therefrom,  or to require a Participant to pay to the Company in
cash such amount  required to be withheld  prior to the  issuance or delivery of
any  shares of  Common  Stock or the  payment  of cash  under  the Plan.  At the
discretion of the Committee, such taxes may be paid by (a) delivering previously
owned shares of Common Stock or (b) having the Company retain shares which would
otherwise be delivered upon exercise or payment of Awards or (c) any combination
of a cash payment or the methods set forth in (a) and (b) above. For purposes of
(a) and (b) above,  shares of Common  Stock shall be valued at their Fair Market
Value. If and to the extent  authorized by the Committee,  the Company may, upon
election by a Participant,  withhold from any distribution of shares  hereunder,
shares of Common Stock with a Fair Market  Value in excess of the  Participant's
required minimum withholding obligation.

     14.  Nontransferability,  Beneficiaries. Unless otherwise determined by the
          ----------------------------------
Committee with respect to the transferability of Nonqualified Stock Options by a
Participant  to his Immediate  Family Members (or to trusts or  partnerships  or
limited liability companies established for such family members), no Award shall
be assignable or transferable by the Participant,  otherwise than by will or the
laws of descent and distribution or pursuant to a beneficiary  designation,  and
Options shall be exercisable,  during the  Participant's  lifetime,  only by the
Participant (or by the Participant's  legal  representatives in the event of the
Participant's  incapacity).  Each  Participant  may designate a  beneficiary  to
exercise  any Option held by the  Participant  at the time of the  Participant's
death  or to be  assigned  any  other  Award  outstanding  at  the  time  of the
Participant's death. If no beneficiary has been named by a deceased Participant,
any Award held by the  Participant  at the time of death shall be transferred as
provided in his will or by the laws of descent and distribution.

     15.  No Right to Employment.  Nothing contained in the Plan or in any Award
          ----------------------
under the Plan shall  confer  upon any  employee  any right with  respect to the
continuation  of  employment  with the  Company or any of its  Subsidiaries,  or
interfere  in any way with the  right of the  Company  to  terminate  his or her
employment  at any time.  Nothing  contained  in the Plan shall  confer upon any
employee or other person any claim or right to any Award under the Plan.

     16.  Governmental Compliance. Each Award under the Plan shall be subject to
          -----------------------
the  requirement  that if at any time the  Committee  shall  determine  that the
listing,  registration  or  qualification  of any shares issuable or deliverable
thereunder  upon any securities  exchange or under any U.S. or non-U.S.  law, or
the consent or approval of any  governmental  regulatory  body,  is necessary or
desirable as a condition thereof, or in connection  therewith,  no such grant or
award may be  exercised  or shares  issued or  delivered  unless  such  listing,
registration,  qualification,  consent or approval  shall have been  effected or
obtained free of any conditions not acceptable to the Committee.
<PAGE>

     17.  Adjustments.   In  the   event  of  any  share   dividend   or  split,
          -----------
recapitalization,  merger,  consolidation,  spinoff,  combination or exchange of
shares or other corporate change or event, or any distribution to holders of the
shares of Common  Stock other than  regular  cash  dividends,  that results in a
change in the outstanding  shares of Common Stock,  the number or kind of shares
of Common  Stock  available  for  Options  and  Awards  under the Plan  shall be
adjusted by the Committee as it shall in its sole  discretion deem equitable and
the number and kind of shares of Common Stock subject to any outstanding  Awards
granted  under the Plan and the purchase  price thereof shall be adjusted by the
Committee  as it shall in its sole  discretion  deem  equitable  to preserve the
value of such Awards.

     18.  Award  Agreement.  Each Award under the Plan shall be  evidenced by an
          ----------------
agreement  setting  forth  the  terms  and  conditions,  as  determined  by  the
Committee,  which  shall  apply to such  Award,  in  addition  to the  terms and
conditions specified in the Plan.

     19.  Amendment.  The Board may amend,  suspend or terminate the Plan or any
          ---------
portion  thereof  at any  time,  provided  that (a) no  amendment  shall be made
without  shareholder  approval if such  approval is necessary to comply with any
applicable law,  regulation or stock exchange rule and (b) except as provided in
Section 17, no amendment shall be made that would adversely affect the rights of
a Participant under an Award  theretofore  granted,  without such  Participant's
written consent.

     20.  General Provisions.
          ------------------

               (a)  The  Committee  may require each  Participant  purchasing or
acquiring  shares  pursuant to an Award under the Plan to represent to and agree
with the Company in writing that such  Participant  is acquiring  the shares for
investment and without a view to distribution thereof.

               (b)  All  certificates for shares of Common Stock delivered under
the Plan  pursuant to any Award shall be subject to such  stock-transfer  orders
and other  restrictions  as the  Committee may deem  advisable  under the rules,
regulations,  and other requirements of the Securities and Exchange  Commission,
any stock  exchange  upon which the shares of Common Stock are then listed,  and
any applicable  U.S. or non-U.S.  securities  law, and the Committee may cause a
legend  or  legends  to be put on any  such  certificates  to  make  appropriate
reference to such restrictions. If the Committee determines that the issuance of
shares of Common Stock  hereunder is not in  compliance  with,  or subject to an
exemption  from, any applicable  U.S. or non-U.S.  securities  laws, such shares
shall  not be  issued  until  such  time as the  Committee  determines  that the
issuance is permissible.

               (c)  Following an Initial  Public  Offering,  it is the intent of
the  Company  that  the  Plan  satisfy,  and be  interpreted  in a  manner  that
satisfies,  the  applicable  requirements  of Rule  16b-3 as  promulgated  under
Section 16 of the  Exchange  Act so that  Participants  will be  entitled to the
benefit of Rule 16b-3,  or any other rule  promulgated  under  Section 16 of the
Exchange Act, and will not be subject to short-swing liability under Section 16.
Accordingly,  if the operation of any provision of the Plan would  conflict with
the  intent  expressed  in this  Section  20(c),  such  provision  to the extent
possible  shall  be  interpreted  and/or  deemed  amended  so as to  avoid  such
conflict.
<PAGE>

               (d)  Except  as  otherwise  provided  by  the  Committee  in  the
applicable  grant or Award  agreement,  a Participant  shall have no rights as a
shareholder  with respect to any shares  subject to an Award until a certificate
or certificates evidencing shares shall have been issued to the Participant and,
subject  to  Section  17,  no   adjustment   shall  be  made  for  dividends  or
distributions  or other rights in respect of any share for which the record date
is prior to the date on which  Participant  shall  become  the  holder of record
thereof.

               (e)  The law of the State of New York  shall  apply to all Awards
and  interpretations  under the Plan  regardless  of the effect of such  state's
conflict of laws principles.

               (f)  Where  the  context  requires,  words  in any  gender  shall
include any other gender.

               (g)  Headings  of  Sections  are  inserted  for  convenience  and
reference, they do not constitute any part of this plan.

     21.  Term of Plan. Subject to earlier  termination  pursuant to Section 19,
          ------------
          the Plan shall have a term of 10 years from its Effective Date.

     22.  Effective Date;  Approval of Shareholders.  The Plan is effective upon
          -----------------------------------------
          shareholder   approval  at  the  Company's  first  annual  meeting  of
          shareholders ("Effective Date").

     23.  Reloads.  The Committee  may provide,  at or subsequent to the date of
          -------
          grant of any Option (including without  limitation  Nonqualified Stock
          Options under Section 11 hereof), that in the event a Participant pays
          the option  price of such  option  (in whole or in part) or  satisfies
          his/her  tax  withholding   obligations  (in  whole  or  in  part)  by
          tendering,  Common  Stock  owned by the  Optionee  or having  withheld
          Common Stock otherwise issuable upon exercise,  such Participant shall
          automatically  be granted a reload  option for the number of shares of
          Common Stock used to pay the exercise price or otherwise withheld. The
          reload  option shall be subject to the terms and  conditions  that the
          Committee will in its discretion provide, consistent with the terms of
          the Plan.  The Committee may provide in any award  agreement that if a
          reload  option is granted as set forth above,  one or more  successive
          reload options will be  automatically  granted to an Optionee who pays
          all or part of the exercise price or satisfies his/her tax withholding
          obligations  (in  whole  or in  part) of any  such  reload  option  by
          tendering  Common Stock owned by the  Participant  or having  withheld
          Common Stock otherwise issuable upon exercise of such reload option.

     24.  Shareholders  Agreement.  Prior to an Initial Public Offering, it is a
          -----------------------
          condition to the exercise of any Option granted hereunder or any other
          Award granted  hereunder  that the  Participant  and any of his or her
          permitted transferees agree to be bound by the terms and conditions of
          the Company's shareholders agreement as it may be amended from time to
          time (the  "Shareholders  Agreement").  In any  event,  any  shares of
          Common Stock acquired with respect to any Award made  hereunder  shall
          be subject to the provisions of the Shareholders  Agreement  regarding
          restrictions  on  transfer  and the right of certain  shareholders  to
          compel  sale of  shares of Common  Stock.  A copy of the  Shareholders
          Agreement will be made available upon request.<PAGE>

                                                                    EXHIBIT 10.8

                          SECURITIES PURCHASE AGREEMENT
                          -----------------------------

          This  SECURITIES  PURCHASE  AGREEMENT,  dated as of December  22, 1999
(this  "Agreement"),  is made by and among  Maximus  Capital  Holdings,  Ltd., a
corporation organized under the laws of Bermuda (the "Company"),  Max Re Ltd., a
corporation  organized under the laws of Bermuda ("Max Re"), and Moore Holdings,
L.L.C., a Delaware limited liability company (the "Purchaser").

                              W I T N E S S E T H:
                              - - - - - - - - - -

          WHEREAS, the Company and Max Re desire to issue to the Purchaser,  and
the  Purchaser  agrees to accept  securities  of the  Company and Max Re, on the
terms specified herein; and

          WHEREAS,   the  Company  has  commenced  a  private   placement   (the
"Offering")  of its common  shares,  par value  US$1.00 per share (the  "Company
Common Shares"); and

          WHEREAS,  it is contemplated  that the Offering will be consummated in
two or more closings,  and the purchases of Company Common Shares and non-voting
common shares, par value US$1.00 per share, of Max Re ("Max Re Non-Voting Common
Shares") pursuant to this Agreement will be consummated  contemporaneously  with
the initial closing of the Offering; and

          WHEREAS,  Capital Z Investments,  L.P., a Bermuda limited  partnership
(the "Other  Purchaser"),  will purchase securities of the Company and Max Re on
the date hereof substantially on the same terms and conditions contained herein.

          NOW, THEREFORE, in consideration of the promises, mutual covenants and
agreements  hereinafter  contained  and  the  transactions  contemplated  by the
Offering, the parties hereto hereby agree as follows:

     1.   Sale and Purchase of Shares and Issuance of Warrants.
          ----------------------------------------------------

          1.1  Sale and Purchase of the Company Shares.
               ---------------------------------------

               Subject to the terms and  conditions  of this  Agreement,  on the
Closing  Date (as  defined  below),  the  Company  shall  sell and  issue to the
Purchaser,  and the Purchaser  shall  purchase and accept from the Company,  ONE
MILLION  FOUR HUNDRED  FORTY  THOUSAND  THREE  HUNDRED  THIRTY FOUR  (1,440,334)
Company  Common  Shares  at  US$15.00  per  share  (collectively,  the  "Company
Shares").  Upon the consummation of the transactions  contemplated  hereby,  the
Company shall  register the Company  Shares in the name of the Purchaser or such
other person in such number as the Purchaser may designate in writing.
<PAGE>

          1.2  Sale and Purchase of Max Re Non-Voting Common Shares.
               ----------------------------------------------------

               Subject to the terms and  conditions  of this  Agreement,  on the
Closing Date,  Max Re shall sell and issue to the  Purchaser,  and the Purchaser
shall  purchase  and accept  from Max Re, FIVE  MILLION  TWO HUNDRED  TWENTY SIX
THOUSAND THREE HUNDRED THIRTY THREE  (5,226,333) Max Re Non-Voting Common Shares
(including any Max Re Non-Voting  Common Shares acquired upon exercise of any of
the warrants issued  hereunder,  the "Max Re Shares").  Upon the consummation of
the transactions contemplated hereby, Max Re shall register the Max Re Shares in
the name of the  Purchaser or such other person in such number as the  Purchaser
may designate in writing.

          1.3  Issuance of the Initial Warrants.
               --------------------------------

               Subject to the terms and  conditions  of this  Agreement,  Max Re
shall issue and deliver to the  Purchaser a warrant,  substantially  in the form
attached  hereto as Exhibit A (the "Initial  Warrant"),  to purchase ONE MILLION
NINE  HUNDRED  FIFTY  THOUSAND  ONE  HUNDRED  THIRTY  FOUR  (1,950,134)  Max  Re
Non-Voting Common Shares at an exercise price of US$15.00 per share on the terms
and  conditions  set  forth  therein.  Max Re shall  issue  and  deliver  to the
Purchaser an  additional  warrant on each  subsequent  closing of the  Offering,
substantially  in the form  attached  hereto as  Exhibit A (each an  "Additional
Initial  Warrant"  and,   together  with  the  Initial  Warrant,   the  "Initial
Warrants"),  to purchase that number of Max Re Non-Voting Common Shares equal to
nine percent (9%) of the  aggregate  number of Company  Common Shares and Max Re
Non-Voting Common Shares issued at such subsequent closing of the Offering at an
exercise  price of  US$15.00  per share on the terms  and  conditions  set forth
herein.

          1.4  Issuance of Additional Warrant.
               ------------------------------

               In the event  Company  Common  Shares are issued  after the final
closing  of the  Offering,  but  prior to the  second  anniversary  of the final
closing of the Offering,  Max Re shall,  subject to any required approval of the
Bermuda Monetary Authority,  issue to the Purchaser a warrant,  substantially in
the  same  form  as  the  Initial   Warrants  (each  an  "Additional   Warrant,"
collectively with the Initial Warrants, the "Warrants"), to purchase that amount
of Max Re  Non-Voting  Common  Shares  that would be  exchangeable  pursuant  to
Section 7 herein for nine percent (9%) of the newly issued Company Common Shares
in the case of the first US$600  million of newly issued  Company Common Shares,
and ten per cent (10%)  thereafter,  at an exercise price equal to the per share
Fair Market Value (as defined herein) of the Company Common Shares that are then
issued;  provided,  however, that the Additional Warrants will be issued only if
         --------   -------
the Fair Market Value of the newly issued  Company  Common Shares is equal to or
greater than US$15.00 per share.  To the extent that the  obligations  of Max Re
under this Section 1.4 may infringe the  provisions of Section 39 of the Bermuda
Companies Act 1981, as amended, such obligations are subject to and therefore do
not arise until the  satisfaction  of, and  compliance  with,  the exclusions or
exemptions  applicable to the provisions of Section 39 of the Bermuda  Companies
Act 1981, as amended. At appropriate times, Max Re shall use its best efforts to
satisfy and comply with the provisions of such Section 39 in order to effect the
provisions of this Section 1.4.
<PAGE>

               For purposes of this Section 1.4,  "Fair Market Value" shall mean
with  respect to any Company  Common  Shares:  (a) if such shares are issued for
cash, the net purchase price of such shares, or (b) if such shares are issued in
exchange  for  consideration  other than cash,  the fair value of such shares as
determined by one independent,  nationally  recognized U.S.  investment  banking
firm  chosen  by the  Company  and  reasonably  satisfactory  to the  Purchaser;
provided  that the  calculation  of the Fair Market Value of such shares made by
the appointed U.S.  investment banking firm mutually selected by the Company and
the  Purchaser  (i) shall not include any discount  relating to the absence of a
public trading market for, or any transfer restrictions on, such shares and (ii)
such  calculation  shall be final and the fees and expenses  stemming  from such
calculation shall be borne by the Company.

     2.   Purchase Price.
          --------------

          2.1  Amount of Purchase Price.
               ------------------------

               (a)  The aggregate purchase price for the Company Shares shall be
US$21,605,010   (the   "Company   Purchase   Price"),   which  amount   includes
US$4,748,718.00  previously  paid to the Company in connection  with the initial
capitalization  of the Company.  The Company  Purchase Price shall be payable as
provided in Section 2.2 hereof.

               (b)  The aggregate  purchase price for the Max Re Shares shall be
US$78,394,995 (the "Max Re Purchase Price").  The Max Re Purchase Price shall be
payable as provided in Section 2.2 hereof.

          2.2  Payment of the Purchase Price.
               -----------------------------

               At the Closing (as defined below) (i) the Purchaser  shall pay to
the Company the Company Purchase Price in United States dollars by wire transfer
of  immediately  available  funds,  or by such other method as may be reasonably
acceptable  to the  Company and the  Purchaser,  to the  account  designated  in
Exhibit B attached  hereto and (ii) the Purchaser shall pay to Max Re the Max Re
---------
Purchase  Price  in  United  States  dollars  by wire  transfer  of  immediately
available funds, or by such other method as may be reasonably  acceptable to Max
Re and the Purchaser, to the account designated in Exhibit B attached hereto. As
                                                   ---------
soon after the Closing as practicable the Company shall deliver to the Purchaser
a certificate representing the Company Common Shares and Max Re shall deliver to
the  Purchaser a  certificate  representing  the Max Re Shares and an instrument
representing the Initial Warrant.

     3.   Closing.
          -------

          3.1  Closing Date.
               ------------

               The closing of the sale and purchase of the  securities  provided
for in Sections 1.1 and 1.2 (the "Closing") shall take place simultaneously with
the execution of this  Agreement and upon the  satisfaction  or waiver of all of
the conditions set forth in Section 9 hereof and shall occur at 9:00 a.m. at the
offices of Akin, Gump,  Strauss,  Hauer & Feld,  L.L.P., 590 Madison Avenue, New
York, New York (or at such other place as the parties hereto may mutually agree)
on December 22, 1999,  or on such other date as the parties  hereto may mutually
agree. The date on which the Closing is held is referred to in this Agreement as
the "Closing Date."
<PAGE>

     4.   Representations and Warranties of the Company.
          ---------------------------------------------

          The Company hereby represents and warrants to the Purchaser that:

          4.1  Corporate Existence and Power; Capitalization.
               ---------------------------------------------

               (a)  The Company is duly organized,  validly existing and in good
standing  under the laws of Bermuda  (meaning that it has not failed to make any
filing with any Bermuda governmental authority or pay any Bermuda government fee
or tax which  would  make it liable to be struck  off the  Bermuda  Register  of
Companies and therefore cease to exist),  and has all corporate  powers required
to carry on its  business as now being,  and as proposed to be,  conducted.  The
Company is authorized or duly qualified to do business as a foreign  corporation
and in good  standing in each  jurisdiction  where the character of the property
owned or leased by it or the nature of its  activities  make such  qualification
necessary.

               (b)  The  authorized  share capital of the Company as of the date
hereof  will be as set forth on Schedule  4.1  attached  hereto.  The issued and
outstanding  shares of the Company  immediately prior to the commencement of the
Closing  will be as set forth in Schedule  4.1.  Upon the  consummation  of this
Agreement,  the  final  closing  of the  Offering  and the  consummation  of the
securities  purchase  agreement with the Other Purchaser and assuming  issuances
hereby and thereby of an aggregate of US$600  million of Company  Common  Shares
and Max Re Non-Voting Common Shares, the pro forma issued and outstanding shares
of the Company and  warrants to purchase  Company  Common  Shares will be as set
forth on  Schedule  4.1  attached  hereto.  There  are no  outstanding  options,
warrants,  rights to  subscribe  to, or  securities  or  rights  convertible  or
exercisable into or exchangeable for any shares of capital stock of the Company,
or arrangements by which the Company is or may become bound to issue  additional
shares of its capital stock.

          4.2  Corporate Authorization.
               -----------------------

               The  execution,  delivery and  performance  by the Company of its
obligations under this Agreement and the shareholders's agreement dated the date
hereof  among the  Company,  Max Re and the  shareholders  of the  Company  (the
"Shareholders'   Agreement")  and  the   consummation  by  the  Company  of  the
transactions contemplated hereby and thereby, are within the Company's corporate
power and have been duly  authorized  by all necessary  corporate  action on the
part of the Company. Each of this Agreement and the Shareholders'  Agreement has
been duly and validly  executed by the  Company  and  constitutes  the valid and
binding agreement of the Company,  enforceable against the Company in accordance
with its terms,  subject to  applicable  bankruptcy,  insolvency,  amalgamation,
reorganization,  moratorium  and similar laws  affecting  creditors'  rights and
remedies generally and subject,  as to enforceability,  to general principles of
equity (regardless of whether enforcement is sought in a proceeding of law or in
equity).
<PAGE>

          4.3  Governmental and Court Authorization.
               ------------------------------------

               The  execution,  delivery and  performance by the Company of this
Agreement and the  Shareholders'  Agreement do not require consent,  approval or
authorization   of,  or  filing,   registration  or   qualification   with,  any
governmental body, agency,  official, court or other authority that has not been
obtained or made.

          4.4  Non-Contravention.
               -----------------

               The  execution,  delivery and  performance  by the Company of its
obligations under this Agreement and the Shareholders' Agreement do not and will
not (A)  contravene or conflict with the Company's  organizational  documents or
(B) (i)  contravene  or conflict with or constitute a violation of any provision
of any law, regulation,  judgment,  injunction,  order or decree binding upon or
applicable to the Company, (ii) require any consent, approval or other action by
any  person  or  constitute  a  default  under  or  give  rise to any  right  of
termination,  cancellation  or  acceleration  of any right or  obligation of the
Company to a loss of any  benefit to which the  Company  is  entitled  under any
provision  of any  agreement,  contract,  indenture,  lease or other  instrument
binding  upon the Company or any  license,  franchise,  permit or other  similar
authorization  held by the Company or (iii) result in the creation or imposition
of any encumbrances.

          4.5  Authorization of the Company Shares.
               -----------------------------------

               When  issued,   sold,  and  delivered  in  accordance  with  this
Agreement, the Company Shares will be validly issued and outstanding, fully paid
and non-assessable  (meaning that no further sums are required to be paid by the
holders thereof in connection with the issue thereof) with no personal liability
attaching  to the  ownership  thereof and not subject to  preemptive  or similar
rights of the  shareholders of the Company or others,  except as provided in the
Shareholders'  Agreement.  Upon  proper  exchange  of the Max Re Shares  and the
obtaining  of any  required  approvals of the Bermuda  Monetary  Authority,  the
Company  Common Shares  received by the Purchaser or any  Subsequent  Holder (as
defined  below)  will  be  validly  issued  and  outstanding,  fully  paid,  and
non-assessable  (meaning  that no further  sums are  required  to be paid by the
holders thereof in connection with the issue thereof) with no personal liability
attaching to the  ownership  thereof and not subject to  preemptive or any other
similar rights of the shareholders of the Company or others,  except as provided
in the Shareholders' Agreement.

          4.6  Proceeds of Offering.
               --------------------

               The Company has  consummated  the initial closing of the Offering
on the Closing Date and has received  gross proceeds from the  subscription  for
Company Common Shares in the Offering of US$[ ].

          4.7  Litigation.
               ----------

               There is no action,  suit,  investigation  or proceeding  pending
against,  or to  the  best  knowledge  of  the  Company  threatened  against  or
affecting,  the Company or any of its properties  before any court or arbitrator
or  any  governmental  body,  agency,  official  or  authority  that  (i)  could
reasonably be expected to have a material  adverse  effect or (ii) in any manner
would  enjoin,  alter,  call into  question,  affect  or delay the  transactions
contemplated by this Agreement or the Shareholders' Agreement.
<PAGE>

          4.8  Disclosure.
               ----------

               No  representation,  warranty or statement made by the Company in
this Agreement or any agreement, certificate, statement or document furnished by
or on behalf of the Company in connection  herewith or therewith,  including the
Offering  Memorandum  (as defined  below)  contains  any untrue  statement  of a
material fact or omits to state a material  fact  necessary in order to make the
statements  contained  herein or therein,  in light of the  circumstances  under
which they were made, misleading.

          4.9  No Prior Activities.
               -------------------

               Except  for   obligations   incurred  in   connection   with  its
incorporation  or  organization  or the  negotiation  and  consummation  of this
Agreement,  the Offering,  and the transactions  contemplated hereby and thereby
and except as set forth in Schedule  4.9 hereto or as  disclosed  in the private
placement  memorandum delivered to investors in connection with the Offering (as
amended  or  supplemented  on  or  prior  to  the  date  hereof,  the  "Offering
Memorandum"),  the Company has neither  incurred any obligation or liability nor
engaged in any  business or activity of any type or kind  whatsoever  or entered
into any agreement or arrangement with any person or entity.

          4.10 Consummation of Direct Sale to Other Purchaser.
               ----------------------------------------------

               The Company has  consummated  the securities  purchase  agreement
with the Other Purchaser on the date hereof.

     5.   Representations and Warranties of Max Re.
          ----------------------------------------

          Max Re hereby represents and warrants to the Purchaser that:

          5.1  Corporate Existence and Power; Capitalization.
               ---------------------------------------------

               (a)  Max Re is  duly  organized,  validly  existing  and in  good
standing  under the laws of Bermuda  (meaning that it has not failed to make any
filings with any Bermuda  governmental  authority or pay any Bermuda  government
fee or tax which would make it liable to be struck off the  Bermuda  Register of
Companies and therefore cease to exist),  and has all corporate  powers required
to carry on its business as now being, and as proposed to be, conducted,  except
as set forth in Schedule 5.1 hereto.  Max Re is authorized or duly  qualified to
do  business  as  a  foreign  corporation  and  is  in  good  standing  in  each
jurisdiction  where the  character of the property  owned or leased by it or the
nature of its activities make such qualification necessary.

               (b)  The authorized share capital of Max Re as of the date hereof
is set forth on Schedule 5.1 attached hereto.  The issued and outstanding shares
of Max Re immediately  prior to the  commencement  of the Closing will be as set
forth in  Schedule  5.1.  Upon the  consummation  of this  Agreement,  the final
closing  of  the  Offering  and  the  consummation  of the  securities  purchase
agreement  with the Other  Purchaser  and  issuances  hereby  and  thereby of an
aggregate  of US$600  million of  Company  Common  Shares and Max Re  Non-Voting
Common Shares,  the issued and outstanding shares of the Company and warrants to
purchase  shares of the Company  will be as set forth on Schedule  5.1  attached
hereto. There are no outstanding options,  warrants,  rights to subscribe to, or
securities or rights  convertible or exercisable  into or  exchangeable  for any
shares of  capital  stock of Max Re, or  arrangements  by which Max Re is or may
become bound to issue additional shares of its capital stock.
<PAGE>

          5.2  Corporate Authorization.
               -----------------------

               The  execution,  delivery  and  performance  by  Max  Re  of  its
obligations under this Agreement,  the Warrants and the Shareholders'  Agreement
and the  consummation  by Max Re of the  transactions  contemplated  hereby  and
thereby,  are within the corporate power of Max Re and have been duly authorized
by all necessary corporate action on the part of Max Re. Each of this Agreement,
the Warrants and the Shareholders'  Agreement has been duly and validly executed
by Max Re and constitute the valid and binding agreements of Max Re, enforceable
against Max Re in accordance with their respective terms,  subject to applicable
bankruptcy,  insolvency,  amalgamation,  reorganization,  moratorium and similar
laws  affecting  creditors'  rights and remedies  generally  and subject,  as to
enforceability,   to  general   principles  of  equity  (regardless  of  whether
enforcement is sought in a proceeding of law or in equity).

          5.3  Governmental and Court Authorization.
               ------------------------------------

               The  execution,  delivery  and  performance  by  Max  Re of  this
Agreement and the Warrants do not require consent, approval or authorization of,
or filing,  registration or qualification  with, any governmental  body, agency,
official, court or other authority that has not been obtained or made.

          5.4  Non-Contravention.
               -----------------

               The  execution,  delivery  and  performance  by  Max  Re  of  its
obligations under this Agreement,  the Warrants and the Shareholders'  Agreement
do not and will not (A)  contravene  or  conflict  with Max Re's  organizational
documents or (B) (i)  contravene  or conflict  with or constitute a violation of
any  provision of any law,  regulation,  judgment,  injunction,  order or decree
binding upon or applicable to Max Re or its properties,  (ii) require, except as
specified  herein,  in the  Warrants  or in  the  Shareholders'  Agreement,  any
consent, approval or other action by any person or constitute a default under or
give rise to any right of termination, cancellation or acceleration of any right
or  obligation of Max Re or to a loss of any benefit to which Max Re is entitled
under  any  provision  of any  agreement,  contract,  indenture,  lease or other
instrument  binding  upon  Max Re or any  license,  franchise,  permit  or other
similar  authorization  held  by Max Re or  (iii)  result  in  the  creation  or
imposition of any encumbrances.

          5.5  Authorization of Max Re Shares and the Warrants.
               -----------------------------------------------

               When  issued,   sold,  and  delivered  in  accordance  with  this
Agreement, the Max Re Shares will be validly issued and outstanding,  fully paid
and non-assessable  (meaning that no further sums are required to be paid by the
holders thereof in connection with the issue thereof) with no personal liability
attaching  to the  ownership  thereof and not subject to  preemptive  or similar
rights  of the  shareholders  of Max Re or  others,  except as  provided  in the
Shareholders' Agreement.  Upon proper exercise of the Warrants and the obtaining
of any required  approvals of the Bermuda  Monetary  Authority,  the  non-voting
common  shares of Max Re received by the  Purchaser  will be validly  issued and
outstanding,  fully paid, and  non-assessable  (meaning that no further sums are
required to be paid by the holders thereof in connection with the issue thereof)
with no personal liability attaching to the ownership thereof and not subject to
preemptive or any other similar rights of the  shareholders of Max Re or others,
except as provided in the Shareholders' Agreement.
<PAGE>

          5.6  Litigation.
               ----------

               There is no action,  suit,  investigation  or proceeding  pending
against,  or to the best knowledge of Max Re threatened against or affecting Max
Re or any of its properties  before any court or arbitrator or any  governmental
body,  agency,  official or authority  that (i) could  reasonably be expected to
have a material adverse effect or (ii) in any manner would enjoin,  alter,  call
into question, affect or delay the transactions contemplated by this Agreement.

          5.7  No Brokers.
               ----------

               Max Re has not taken any action that would give rise to any claim
by any person  for  brokerage  commissions,  finders'  fees or similar  payments
relating to this Agreement or the transactions contemplated thereby.

          5.8  Disclosure.
               ----------

               No  representation,  warranty or statement made by Max Re in this
Agreement or any agreement,  certificate,  statement or document furnished by or
on behalf of Max Re in connection herewith or therewith,  including the Offering
Memorandum, contains any untrue statement of a material fact or omits to state a
material  fact  necessary in order to make the  statements  contained  herein or
therein, in light of the circumstances under which they were made, misleading.

          5.9  No Prior Activities.
               -------------------

               Except  for   obligations   incurred  in   connection   with  its
incorporation  or  organization  or the  negotiation  and  consummation  of this
Agreement,  the Offering, and the transactions  contemplated hereby and thereby,
Max Re has neither  incurred  any  obligation  or  liability  nor engaged in any
business or activity of any type or kind whatsoever or entered into any material
agreement  or  arrangement  with any  person or  entity,  except as set forth in
Schedule 5.9 hereto or as disclosed in the Offering Memorandum.

          5.10 Consummation of Direct Sale to Other Purchaser.
               ----------------------------------------------

               Max Re has consummated, or will contemporaneously consummate, the
securities purchase agreement with the Other Purchaser on the date hereof.
<PAGE>

     6.   Representations and Warranties of the Purchaser.
          -----------------------------------------------

                  The Purchaser hereby represents and warrants to the Company
and Max Re that:

          6.1  Organization; Existence; Residence Outside Bermuda.
               --------------------------------------------------

               The  Purchaser is duly  organized,  validly  existing and in good
standing  under  the  laws of the  jurisdiction  of its  incorporation,  and the
Purchaser  has all  necessary  corporate  powers and all  material  governmental
licenses,  authorizations,  consents  and  approvals  required  to  carry on its
business  as now being  conducted.  The  Purchaser  is not a person  resident in
Bermuda for exchange control purposes.

          6.2  Corporate Authorization.
               -----------------------

               The execution,  delivery and  performance by the Purchaser of its
obligations  under this Agreement and the  consummation  by the Purchaser of the
transactions contemplated hereby are within the Purchaser's corporate powers and
have been duly authorized by all necessary corporate or other action on the part
of the Purchaser.

          6.3  Governmental and Court Authorization.
               ------------------------------------

               The execution,  delivery and performance by the Purchaser of this
Agreement do not require the consent,  approval or authorization  of, or filing,
registration or qualification  with, any governmental  body,  agency,  official,
court or authority that has not been obtained or made.

          6.4  Non-Contravention.
               -----------------

               The execution,  delivery and performance by the Purchaser of this
Agreement do not and will not (A) contravene or conflict with its organizational
documents or (B)  contravene  or conflict  with or constitute a violation of any
provision of any law, regulation,  judgment, injunction, order or decree binding
upon or applicable to the Purchaser or its properties.

          6.5  Purchase for Investment; Legend.
               -------------------------------

               (a)  The  Company  Shares,  the Max Re  Shares  and  the  Initial
Warrant are being acquired for its own account,  and not with a view to making a
public distribution thereof in violation of the Securities Act.

               (b)  The Purchaser is an "accredited investor" as defined in Rule
501 under the Securities Act.

               Upon original issuance  thereof,  and until such time as the same
is no longer  required under the applicable  requirements of the Securities Act,
the Company  Shares,  the Max Re Shares,  the Initial  Warrant,  the  Additional
Warrant,  the Max Re Shares issued upon exercise of the Initial  Warrant and the
Additional  Warrant, if any, and the Company Common Shares exchangeable for such
Max Re Shares shall bear a legend substantially in the following form
<PAGE>

          "THE SECURITIES  EVIDENCED BY THIS CERTIFICATE HAVE NOT BEEN
          REGISTERED  UNDER THE UNITED STATES  SECURITIES ACT OF 1933,
          AS AMENDED,  AND MAY NOT BE SOLD,  TRANSFERRED,  ASSIGNED OR
          HYPOTHECATED  UNLESS  THERE  IS  AN  EFFECTIVE  REGISTRATION
          STATEMENT UNDER SUCH ACT COVERING SUCH SECURITIES,  THE SALE
          IS MADE IN ACCORDANCE WITH RULE 144 UNDER THE SECURITIES ACT
          OF 1933, AS AMENDED,  OR THE COMPANY AT ITS OPTION  RECEIVES
          AN OPINION  OF  COUNSEL  TO THE  HOLDER OF THESE  SECURITIES
          REASONABLY  SATISFACTORY  TO THE COMPANY,  STATING THAT SUCH
          SALE,  TRANSFER,  ASSIGNMENT OR HYPOTHECATION IS EXEMPT FROM
          THE  REGISTRATION  AND PROSPECTUS  DELIVERY  REQUIREMENTS OF
          SUCH ACT AND UNLESS,  WHERE  APPLICABLE,  HAS  RECEIVED  THE
          PRIOR APPROVAL OF THE BERMUDA MONETARY AUTHORITY.

          IN ADDITION,  THE SECURITIES  EVIDENCED BY THIS  CERTIFICATE
          ARE  SUBJECT  TO  CERTAIN   TRANSFER   RESTRICTIONS  IN  THE
          COMPANY'S BYE-LAWS AND PURSUANT TO A SHAREHOLDERS' AGREEMENT
          DATED AS OF DECEMBER 22, 1999 AMONG THE COMPANY, MAX RE LTD.
          AND CERTAIN OF THE  COMPANY'S  SHAREHOLDERS.  A COPY OF SUCH
          BYE-LAWS  AND  SHAREHOLDERS'  AGREEMENT  WILL  BE  FURNISHED
          WITHOUT  CHARGE BY THE  COMPANY  TO THE HOLDER  HEREOF  UPON
          WRITTEN REQUEST."

          6.6  Access to Information.
               ---------------------

               The Purchaser has been afforded an opportunity to investigate the
properties,  businesses and operations of the Company and Max Re and examine the
books,  records and  financial  condition  of the Company and Max Re and to make
extracts and copies of such books and records. No investigation by the Purchaser
prior to or after the date of this  Agreement  shall  diminish or obviate any of
the representations,  warranties,  covenants or agreements of the Company or Max
Re contained in this Agreement or the documents related thereto.

     7.   Exchange Rights.
          ---------------

          7.1  Grant of Exchange Right.
               -----------------------

               The  Company  and Max Re hereby  grant to the  Purchaser  and any
subsequent holder (a "Subsequent Holder") of the Max Re Non-Voting Common Shares
acquired  hereunder or hereafter acquired by the Purchaser the right to exchange
one (1) such Max Re  Non-Voting  Common  Share for one (1) Company  Common Share
without  the  payment of any  additional  consideration,  subject to  adjustment
pursuant to Section 7.4 herein,  all in accordance  with the  provisions of this
Section 7 (the  "Common  Share  Exchange  Right") and subject to  obtaining  any
required  approval from the Bermuda Monetary  Authority and the approval of such
exchange by the Board of Directors of Max Re.
<PAGE>

          7.2  Exercise of Exchange Right.
               --------------------------

               Any  Subsequent  Holder  shall,  at its  option,  be  entitled to
exercise the Common Share Exchange Right if such  Subsequent  Holder is not then
an affiliate of the  Purchaser.  In addition,  at any time and from time to time
after the Company has  consummated  the initial  registered  public  offering of
Common Shares in the United States,  the Purchaser may exercise the Common Share
Exchange  Right  only in order to  effect  the  delivery  of  Common  Shares  in
connection with sales into the public market,  and such exchange shall be deemed
to have been made upon delivery of the certificate or certificates  representing
such  Common   Shares   together   with  an  executed   share   transfer   form.
Notwithstanding  the foregoing  provisions of this Section 7.2, the Common Share
Exchange  Right may be  exercised  only to the extent that the person  receiving
Company  Common  Shares upon the exercise of such Common Share  Exchange  Rights
would not, after such  exchange,  own more than 9.9% of the total Company Common
Shares issued and outstanding (after application of the U.S. tax attribution and
constructive  ownership  rules),  unless  such  restriction  is  waived  by  the
unanimous consent of the Board of Directors of the Company.  Notwithstanding the
foregoing,  to the extent that after an exchange the Purchaser or any Subsequent
Holder would own more than 9.9% of the total  Company  Common  Shares issued and
outstanding,  the number of Company  Common Shares that will be entitled to vote
will be limited to that  number  that would equal no more than 9.9% of the total
Company Common Shares issued and outstanding,  unless such voting restriction is
waived by the  unanimous  consent of the Board of Directors of the Company.  The
Purchaser or any  Subsequent  Holder shall  exercise this Common Share  Exchange
Right by surrendering to the Company at the principal  offices of the Company or
the Company's  registrar and transfer  agent, or the Secretary of the Company in
the event that the Company does not then have a registrar and transfer agent, at
any  time  during  normal  business  hours,   the  certificate  or  certificates
representing the Max Re Non-Voting  Common Shares to be exchanged  together with
an executed  share  transfer form and written  notice (the  "Exchange  Request")
stating (a) that such exchanging  holder desires to exchange all or a portion of
the Max Re Non-Voting  Common  Shares held by such  exchanging  holder,  (b) the
number of Max Re Non-Voting  Common  Shares  desired to be exchanged and (c) the
names and addresses in which each  certificate  for Company Common Shares issued
upon such exchange is to be issued.  As soon as is  practicable  but in no event
more than three (3) business  days after  receipt of the Exchange  Request,  the
Company  shall  acquire  from the  Purchaser  or its  assignee all of the Max Re
Non-Voting  Common  Shares  requested  to be  exchanged.  An  exchange of Max Re
Non-Voting  Common Shares for Company Common Shares pursuant to this Section 7.2
shall be deemed to have been effected on the latter of (i) the close of business
on the date on which certificates evidencing Max Re Non-Voting Common Shares and
the Exchange Request have been received; provided that each of the provisions of
                                         --------
this Section 7.2 have been  completed  in a timely  manner and (ii) the date the
transfer has been  registered in the Register of Members of Max Re. Max Re shall
register  the  transfer to the Company of the Max Re  Non-Voting  Common  Shares
being  exchanged in the  Register of Members of Max Re subject to obtaining  any
required approval from the Bermuda Monetary Authority.  At such time, the rights
of Max Re  Non-Voting  Common Shares of the Purchaser or its assignee will cease
and the person or persons in whose name or names the certificate or certificates
for Company  Common Shares are to be issued upon such exchange will be deemed to
have  become  the  holder or  holders  of record of the  Company  Common  Shares
represented thereby.
<PAGE>

          7.3  Nature of Exchange Rights.
               -------------------------

               The  Common  Share   Exchange   Rights   granted   hereunder  are
contractual  obligations of the Company, Max Re and their respective successors,
and such Common Share Exchange  Rights shall be enforceable by the holder of the
Max Re Non-Voting Common Shares purchased hereunder or hereafter acquired by the
Purchaser and shall be  transferred  with the transfer of such Max Re Non-Voting
Common Shares.  Upon written  request,  the Company and Max Re shall execute and
deliver to any such Subsequent Holder  agreements  granting the rights conferred
under this Section 7.

          7.4  Exchange Right Adjustment.
               -------------------------

               If the Company at any time subdivides (by any share split,  stock
or bonus share dividend,  recapitalization  or otherwise) one or more classes of
its  issued and  outstanding  Company  Common  Shares  into a greater  number of
shares,  the number of Company Common Shares for which the Common Share Exchange
Right may be exercised shall be adjusted upward proportionately.  If the Company
at any time combines (by reverse  share split or otherwise)  one or more classes
of its issued and  outstanding  Company  Common Shares into a smaller  number of
shares,  the number of Company Common Shares for which the Common Share Exchange
Right may be exercised shall be adjusted downward proportionately.  In the event
that the  Company  effects a  reorganization,  reclassification,  consolidation,
amalgamation,  sale of all or substantially all of the Company's assets or other
transactions,  in each case which is  effected in such a manner that the holders
of Common  Shares are entitled to receive  (either  directly or upon  subsequent
liquidation)  shares,  securities  or assets with  respect to or in exchange for
Company Common Shares, each Common Share Exchange Right shall be exercisable for
such  shares,  securities  or assets  that the  holder  thereof  would have been
entitled to receive had such holder  exercised such right  immediately  prior to
the consummation of such transaction.

               If Max Re at any time  subdivides  (by any share split,  stock or
bonus share dividend,  recapitalization or otherwise) one or more classes of its
issued and outstanding Max Re Non-Voting  Common Shares into a greater number of
shares,  the number of Company Common Shares for which the Common Share Exchange
Right may be exercised shall be adjusted downward proportionately.  If Max Re at
any time combines (by reverse  share split or otherwise)  one or more classes of
its issued and outstanding Max Re Common Shares into a smaller number of shares,
the number of Company  Common Shares for which the Common Share  Exchange  Right
may be exercised shall be adjusted upward proportionately.
<PAGE>

     8.   Further Agreements of the Parties.
          ---------------------------------

          8.1  Covenants.
               ---------

               For so long as the Warrants are exercisable, Max Re shall reserve
that  number of its Max Re  Non-Voting  Shares  issuable  upon  exercise  of the
Initial Warrant and the Additional  Warrant and such shares shall not be subject
to any  preemptive or other similar rights (the "Max Re Reserved  Shares").  The
Company  agrees to reserve,  for so long as the Warrants are  exercisable or the
Max Re  Non-Voting  Shares  issued  hereunder  are  outstanding,  that number of
Company  Common  Shares  for which  such Max Re  Non-Voting  Common  Shares  are
exchangeable  and  such  Company  Common  Shares  shall  not be  subject  to any
preemptive or other similar rights (the "Company Reserved Shares," together with
the Max Re Reserved  Shares,  the  "Reserved  Shares").  The  provisions of this
Section 8.1 shall  survive the  consummation  of the  transactions  contemplated
hereby.

          8.2  Other Actions.
               -------------

               Each of the Company,  Max Re and the Purchaser  agrees to execute
and deliver such other documents and take such other actions,  as a party hereto
may  reasonably  request  for the  purpose  of  carrying  out the intent of this
Agreement and the documents relating thereto. The provisions of this Section 8.2
shall survive the consummation of the transactions contemplated hereby.

          8.3  Acknowledgement of Voting Restrictions.
               --------------------------------------

               (a)  The  Purchaser  acknowledges  and  agrees to be bound by the
voting  restrictions  with respect to the Company  Common Shares as described in
the bye-laws of the Company attached hereto as Exhibit C. The Purchaser  further
                                               ---------
agrees that prior to the  consummation of any assignment of the rights hereunder
pursuant to Section 10.7 the  Purchaser  shall  deliver to the Company a written
acknowledgement of such voting restrictions executed by the proposed assignee.

               (b)  The  Purchaser  acknowledges  and  agrees to be bound by the
voting restrictions with respect to Max Re Non-Voting Common Shares as described
in the bye-laws of Max Re attached  hereto as Exhibit D. The  Purchaser  further
                                              ---------
agrees that prior to the consummation of any assignment of the rights hereunder,
the Purchaser shall deliver to Max Re a written  acknowledgement  of such voting
restrictions executed by the proposed assignee.
<PAGE>

          8.4  Restriction on Transfers.
               ------------------------

               The Purchaser  shall not, during the period ending one year after
the date hereof (the "Lock-up Period") offer,  pledge,  sell,  contract to sell,
sell any contract to purchase, grant any option, right or warrant to purchase or
otherwise  transfer or dispose of,  directly or  indirectly,  any Company Common
Shares,  Max Re Non-Voting  Common Shares or Warrants  acquired pursuant to this
Agreement without the prior written consent of the Company.  Notwithstanding the
foregoing,  the Purchaser shall not be restricted from transferring such Company
Common  Shares,  Max Re Non-Voting  Common Shares or Additional  Warrants to any
Affiliate  (as  defined  in the  Shareholders'  Agreement);  provided  that  any
                                                             --------
transfer of such securities shall be conditioned upon such Affiliate agreeing to
being bound by the terms of this Section 8.4. The provisions of this Section 8.4
shall survive the consummation of the transactions contemplated hereby.

     9.   Conditions to and Documents to be Delivered at the Closing.
          ----------------------------------------------------------

          The  obligation  of  the  parties  to  consummate   the   transactions
contemplated by this Agreement is subject to the satisfaction on or prior to the
Closing Date of each of the conditions  set forth below.  Any such condition may
be waived by the other parties hereto by proceeding with the Closing.

          9.1  Documents to be Delivered by the Company.
               ----------------------------------------

               At the Closing,  the Company  shall  deliver to the Purchaser the
following:

               (a)  A certificate  of good standing or compliance of the Company
issued by the appropriate official from the jurisdiction of its formation issued
not more than fifteen calendar days prior to the Closing Date;

               (b)  A copy of the memorandum of association  and bye-laws of the
Company  certified by the  secretary or assistant  secretary of the Company,  as
being true and complete as of the Closing Date;

               (c)  (i) A copy of  resolutions  of the board of directors of the
Company,  authorizing the execution,  delivery and performance of this Agreement
and the documents  related  thereto,  the issuance of the Company Shares and the
reservation  of the  Company  Reserved  Shares  and  (ii) a  certificate  of the
secretary  or assistant  secretary of the Company,  dated as of the Closing Date
certifying  that such  resolutions  were duly  adopted and are in full force and
effect  and  attesting  to the  true  signatures  and to the  incumbency  of the
officers of the Company  executing  this  Agreement and the  documents  relating
thereto;

               (d)  The opinion of Conyers  Dill & Pearman,  Bermuda  counsel to
the Company and Max Re, dated as of the Closing Date, to the effect set forth on
Exhibit E; and

               (e)  Such  other  documents  as the  Purchaser  shall  reasonably
request.
<PAGE>

          9.2  Documents to be Delivered by Max Re.
               -----------------------------------

               At the  Closing,  Max Re  shall  deliver  to  the  Purchaser  the
following:

               (a)  A certificate of good standing or compliance with respect to
Max Re issued by the appropriate official from the jurisdiction of its formation
issued not more than fifteen calendar days prior to the Closing Date;

               (b)  A copy of the memorandum of association  and bye-laws of Max
Re certified by the secretary or assistant secretary of Max Re as being true and
complete as of the Closing Date;

               (c)  (i) A copy of  resolutions  of the board of directors of Max
Re,  authorizing  the execution,  delivery and performance of this Agreement and
the Warrants and the documents related thereto, the issuance of the Warrants and
the  reservation  of the Max Re Reserved  Shares and (ii) a  certificate  of the
secretary  or assistant  secretary of Max Re, dated the Closing Date  certifying
that such  resolutions  were duly  adopted  and are in full force and effect and
attesting to the true signatures and to the incumbency of the officers of Max Re
executing this Agreement and the documents relating thereto;

               (d)  The opinion of Conyers  Dill & Pearman,  Bermuda  counsel to
the Company and Max Re, dated as of the Closing Date, to the effect set forth on
Exhibit E; and

               (e)  Such  other  documents  as the  Purchaser  shall  reasonably
request.

          9.3  Documents to be Delivered by the Purchaser.
               ------------------------------------------

               At the Closing, the Purchaser shall deliver:

               (a)  to the Company  the  Company  Purchase  Price  specified  in
Section 2.1(a).

               (b)  At the Closing, the Purchase shall deliver to Max Re the Max
Re Purchase Price specified in Section 2.1(b).

     10.  Miscellaneous
          -------------

          10.1 Specific Performance.
               --------------------

               Each of the parties hereto  acknowledge and agree that the breach
of this Agreement would cause irreparable damage to the other parties hereto and
that  the  other  parties  hereto  will  not  have an  adequate  remedy  at law.
Therefore,  the  obligations  of each of the parties hereto under this Agreement
shall be enforceable by a decree of specific  performance issued by any court of
competent jurisdiction, and appropriate injunctive relief may be applied for and
granted in connection therewith. Such remedies shall, however, be cumulative and
not exclusive and shall be in addition to any other remedies which any party may
have under this Agreement or otherwise.
<PAGE>

          10.2 Notices.
               -------

               All notices and other  communications  provided  for or permitted
hereunder shall be made in writing by  hand-delivery,  first-class  mail, telex,
telecopier, or air courier guaranteeing overnight delivery as set forth below:

                  To the Company:       Maximus Capital Holdings, Ltd.
                                        P.O. Box HM 2565
                                        Hamilton, HM KX
                                        Bermuda
                                        Attention:  Robert J. Cooney
                                        Facsimile Number:  (441) 232-2228

                  To Max Re:            Max Re Ltd.
                                        c/o Maximus Capital Holdings, Ltd.
                                        P.O. Box HM 2565
                                        Hamilton, HM KX
                                        Bermuda
                                        Attention:  Robert J. Cooney
                                        Facsimile Number: (441) 232-2228

                  In each case
                  with a copy to:       Conyers Dill & Pearman
                                        Clarendon House
                                        2 Church Street
                                        Hamilton, Bermuda
                                        Attention:  Lisa J. Marshall
                                        Facsimile Number:  (441) 292-4720

                  and a copy to:        Akin, Gump, Strauss, Hauer & Feld,L.L.P.
                                        590 Madison Avenue
                                        New York, New York 10022
                                        Attn:  James E. Kaye, Esq.
                                        Facsimile Number:  (212) 872-1002

                  To the Purchaser:     Moore Holdings, L.L.C
                                        c/o Moore Capital Management, Inc.
                                        1251 Avenue of the Americas, 53rd Floor
                                        New York, New York  10020
                                        Attention:  Stephen R. Nelson
                                        Facsimile Number:  (212) 782-7194

                  with a copy to:       Akin, Gump, Strauss, Hauer & Feld,L.L.P.
                                        590 Madison Avenue
                                        New York, New York 10022
                                        Attn:  James E. Kaye, Esq.
                                        Facsimile Number:  (212) 872-1002
<PAGE>

               All such notices and communications  shall be deemed to have been
duly given when delivered by hand, if personally delivered;  three business days
after being  delivered to a next-day air courier;  five  business days after the
date of deposit in the United States air mail, if mailed; when answered back, if
faxed; and when receipt is acknowledged by the recipient  telecopier machine, if
telecopied.

          10.3 Entire Agreement; Amendments and Waivers.
               ----------------------------------------

               This  Agreement  (including  the schedules  and exhibits  hereto)
represents  the entire  understanding  and agreement  between the parties hereto
with respect to the subject  matter hereof and can be amended,  supplemented  or
changed,  and any  provision  hereof can be waived,  only by written  instrument
making specific  reference to this Agreement  signed by the parties  hereto.  No
action taken  pursuant to this  Agreement,  including  without  limitation,  any
investigation  by or on behalf of any  party,  shall be deemed to  constitute  a
waiver by the party taking such action of  compliance  with any  representation,
warranty, covenant or agreement contained herein. The waiver by any party hereto
of a breach of any provision of this Agreement shall not operate or be construed
as a further or continuing  waiver of such breach or as a waiver of any other or
subsequent breach. No failure on the part of any party to exercise, and no delay
in exercising,  any right,  power or remedy  hereunder shall operate as a waiver
thereof, nor shall any single or partial exercise of such right, power or remedy
by such party preclude any other or further  exercise thereof or the exercise of
any other right,  power or remedy. All remedies hereunder are cumulative and are
not exclusive of any other remedies provided by law.

          10.4 Governing Law and Submission to Jurisdiction.
               --------------------------------------------

               This Agreement will be governed by, and construed and enforced in
accordance  with,  the laws of Bermuda  without  regard to its  conflict  of law
rules. To the maximum extent permitted by law, the parties hereto agree that all
actions or proceedings  arising in connection with this Agreement shall be tried
and  determined  only in the courts of  Bermuda.  TO THE EXTENT  APPLICABLE  AND
PERMITTED,  EACH OF THE PARTIES HERETO WAIVES ANY RIGHT IT MAY HAVE TO REQUEST A
JURY TRIAL, TO ASSERT THE DOCTRINE OF FORUM NON CONVENIENS OR TO OBJECT TO VENUE
IN SUCH COURTS TO THE EXTENT ANY  PROCEEDING IS BROUGHT IN ACCORDANCE  WITH THIS
SECTION 10.4.

          10.5 Section Headings.
               ----------------

               The headings in this  Agreement are for  convenience of reference
only and shall not limit or otherwise effect the meaning hereof.
<PAGE>

          10.6 Severability.
               ------------

               If any term, provision, covenant or restriction of this Agreement
is held by a court of competent  jurisdiction  to be invalid,  illegal,  void or
unenforceable,   the   remainder  of  the  terms,   provisions,   covenants  and
restrictions set forth herein shall remain in full force and effect and shall in
no way be affected,  impaired or  invalidated,  and the parties hereto shall use
their reasonable  efforts to find and employ an alternative means to achieve the
same or  substantially  the  same  result  as that  contemplated  by such  term,
provision,  covenant or restriction.  It is hereby stipulated and declared to be
the intention of the parties that they would have executed the remaining  terms,
provisions, covenants and restrictions without including any of such that may be
hereafter declared invalid, illegal, void or unenforceable.

          10.7 Successors and Assigns.
               ----------------------

               This Agreement  shall be binding upon and inure to the benefit of
and be  enforceable  by the parties  hereto and their  respective  successor and
assigns.

          10.8 Counterparts.
               ------------

               This  Agreement  may be  executed  simultaneously  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.

                                    * * * * *

                          (The Signature Page Follows)
<PAGE>

               IN WITNESS WHEREOF, the parties hereto have caused this Agreement
to be executed and delivered by their respective duly authorized  signatories on
the date first written above.

                      MAXIMUS CAPITAL HOLDINGS, LTD.

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

                      MAX RE LTD.

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

                      MOORE HOLDINGS, L.L.C.

                      By:
                         ------------------------------------------------------
                          Name:
                          Title:
<PAGE>

                                  SCHEDULE 4.1

                Capitalization of Maximus Capital Holdings, Ltd.
                ------------------------------------------------

          A.   Actual Capitalization.

               At the date  hereof,  the  Company has the  following  authorized
capital, issued and outstanding shares and shares reserved for issuance:

     The authorized share capital of the Company is US$220,000,000  divided into
     200,000,000  Company  Common Shares and  20,000,000  Preferred  Shares each
     having a par value of US$1.00.  Of the  200,000,000  Company  Common Shares
     authorized,  12,000  Company Common Shares are issued and  outstanding  and
     held by Codan Trust  Company  Limited.  No shares are reserved for issuance
     and no Preferred Shares are issued and outstanding.

          B.   Pro Forma Capitalization.

               Assuming  that US$600  million is raised in the  Offering and the
direct  sales as more fully  described  in Section 4.1 herein,  the Company will
have the following authorized capital,  issued and outstanding shares and shares
reserved for issuance:

     The authorized share capital of the Company will be US$220,000,000  divided
     into 200,000,000 Common Shares and 20,000,000  Preferred Shares each having
     a par  value of  US$1.00.  Of the  200,000,000  Common  Shares  authorized,
     36,995,930  Common  Shares  will be issued and  outstanding  and  7,800,000
     Common  Shares will be reserved for issuance  upon the exercise of warrants
     and the  exchange  of  5,400,000  Non-Voting  Common  Shares of Max Re into
     Common Shares,  including  680,000 Common Shares reserved for issuance upon
     the exercise of the warrants  issued to Western  General  Insurance,  Ltd.,
     720,000  Common  Shares  reserved for issuance  upon the exercise of Common
     Share purchase  warrants to be issued to Mr. Robert J. Cooney and 1,000,000
     Common  Shares  reserved  for  issuance  upon the  exercise of Common Share
     purchase  warrants issued to managers of the Company.  No Preferred  Shares
     will be issued and outstanding or reserved for issuance and 3,004,070 Comon
     Shares will be reserved for issuance  upon  conversion of Max Re Non-Voting
     Common Shares.
<PAGE>

                                  SCHEDULE 4.9

               Prior Activities of Maximus Capital Holdings, Ltd.
               -------------------------------------------------

                                      None.
<PAGE>

                                  SCHEDULE 5.1

              Corporate Activity and Capitalization of Max Re Ltd.
              ---------------------------------------------------

          A.   Actual Capitalization.

               At the date hereof, Max Re has the following  authorized capital,
issued and outstanding shares and shares reserved for issuance:

               The authorized share capital of Max Re is  US$30,000,000  divided
into 1,250,000  Voting Common Shares,  27,000,000  Non-Voting  Common Shares and
1,750,000 Preferred Shares each having a par value of US$1.00. Of the 30,000,000
authorized  shares,  1,250,000 Voting Common Shares are held by the Company.  No
shares are reserved for issuance.

          B.   Pro Forma Capitalization.

               Assuming  that US$600  million is raise in the  Offering  and the
direct sales as more fully described in Section 5.1 herein, Max Re will have the
following authorized capital,  issued and outstanding shares and shares reserved
for issuance:

               The  authorized  share  capital  of Max Re will be  US$50,000,000
divided  into  shares  each  having a par value of  US$1.00.  Of the  50,000,000
authorized   shares,   36,995,930  Voting  Common  Shares  will  be  issued  and
outstanding and held by the Company,  3,004,070 Non-Voting Common Shares will be
issued and outstanding and held by Moore Holdings,  LLC and 5,400,000 Non-Voting
Common Shares will be reserved for issuance upon the exercise of warrants issued
to the founding investors.
<PAGE>

                                  SCHEDULE 5.9

                         Prior Activities of Max Re Ltd.
                         ------------------------------

                                      None
<PAGE>

                                                                       Exhibit A

                             FORM OF INITIAL WARRANT
<PAGE>

                                                                       Exhibit B

                               WIRING INSTRUCTIONS

                  Transfer Funds to:

                  The Chase Manhattan Bank

                  New York, NY 10081

                  Fed ABA 021000021

                  Or

                  CHIPS ABA 0002

                  SWIFT CHASUS33

                  Beneficiary Account:

                  Maximus Capital Holdings, Ltd.

                  Account No. 323892973
<PAGE>

                                                                       Exhibit C

                             BYE-LAWS OF THE COMPANY
<PAGE>

                                                                       Exhibit D

                               BYE-LAWS OF MAX RE

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