Document:

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                                                                    EXHIBIT 4(c)

                      LETTER TO SHAREHOLDERS OF RECORD
                              April _, 2002

               ~ Uroplasty, Inc. Subscription Rights Offering ~

                 Up to 3,071,535 Shares & 1,023,845 Warrants
             of Uroplasty, Inc. Common Stock Offered Pursuant to
             Rights Distributed to Shareholders of Uroplasty, Inc.

Dear Shareholder,

This letter is being sent to all holders of Common Stock of record as of April
_, 2002 in connection with a distribution of Subscription Rights to acquire
shares of the Company's Common Stock along with a Warrant to purchase additional
shares of Common Stock at a future date.

The terms of the Rights Offering are described in the Company's Prospectus dated
April _, 2002. For every two shares of Uroplasty, Inc. Common Stock owned by a
shareholder as of the record date of April _, 2002, the shareholder is being
given the opportunity to exercise a Subscription Right. Rights are not
transferable.

IN THIS OFFER, ONE SUBSCRIPTION RIGHT PERMITS THE PURCHASE OF:

-  Three shares of Uroplasty, Inc. Common Stock; and
-  One Warrant to purchase one share of Uroplasty, Inc. Common Stock

Please read the Prospectus for more information.

ENCLOSED DOCUMENTS:

- The Prospectus (Please read carefully and completely.)
- The Rights Subscription Certificate
- A return envelope addressed to Uroplasty, Inc., 2718 Summer Street NE,
Minneapolis, MN 55413-2820

EXPIRATION DATE:

Your prompt action is requested, as the Rights Offering will expire at 5:00
P.M., Minnesota Time on May _, 2002, unless extended by the Company.

TO EXERCISE THE SUBSCRIPTION RIGHTS:

To exercise the Rights, a properly completed and executed Rights Subscription
Certificate and payment in full of the Subscription Price for all of the Rights
exercised must be delivered to Uroplasty, Inc., 2718 Summer Street NE,
Minneapolis, MN 55413-2820, as indicated in the Prospectus prior to the
Expiration Date of 5:00 P.M. Minneapolis, Minnesota Time, May _, 2002.

OVERSUBSCRIPTION RIGHTS:

Only Shareholders who exercise all of their Rights can participate in an
Oversubscription Privilege for the over-allotment of Basic Subscription

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Rights, subject to availability.  This Oversubscription Privilege must be
exercised at the same time as the Basic Subscription Rights on the Rights
Subscription Certificate.  Oversubscription Rights can be exercised for
any number of Shares and Warrants to the extent available. If enough Shares and
Warrants are not available to meet Oversubscription requests, they will be
allocated pro rata and excess funds will be returned to Shareholders
accordingly.

If you need more information on this Rights Offering, or require additional
copies of the enclosed materials, please call me directly at (612) 378-1180,
extension 206, for my immediate attention.

Sincerely,
UROPLASTY, INC.

Daniel G. Holman
President and CEO

Enclosures:
Uroplasty, Inc. Subscription Rights Prospectus
Subscription Rights Certificate
Subscription Rights Certificate return envelope addressed to Uroplasty,
Inc.

PS: Please read the prospectus carefully before deciding whether to invest.<PAGE>
                                                                  EXHIBIT 10(a)

                              CONSULTING AGREEMENT

         THIS AGREEMENT, made as of this first day of January, 2002, by and
between Joel R. Pitlor, whose principal place of business is located at 19 Chalk
Street, Cambridge, MA 02139, hereinafter referred to as the "Consultant", and
Uroplasty, Inc., whose principal place of business is located at 2718 Summer
Street NE, Minneapolis, MN 55413, hereinafter referred to as "Company".

                                   WITNESSETH:

         WHEREAS, the Company desires to engage the services of the Consultant
to perform for the Company consulting services as an independent contractor and
not as an employee; and

         WHEREAS, Consultant desires to consult with the Board of Directors, the
officers of the Company, and the administrative staff, and to undertake for the
Company consultation as to the direction of certain functions in said management
of;

         NOW, THEREFORE, it is agreed as follows:

1.       Term. The respective duties and obligations of the contracting parties
         shall be for a period of one year, commencing on January 1, 2002. The
         agreement will automatically renew for successive one-year periods
         unless terminated. This agreement may be terminated by either party
         giving thirty (30) days written notice to the other party at the
         addresses stated above or at an address chosen subsequent to the
         execution of this agreement and duly communicated to the party giving
         notice.

2.       Consultations. Consultant shall be available to consult with Board of
         Directors, the officers of the Company, and the heads of the
         administrative staff, at reasonable times, concerning matters
         pertaining to the organization of the administrative staff, the fiscal
         policies of the Company, the relationship of the Company with its
         employees or with any organization representing its employees, and, in
         general, the important problems of concern in the business affairs of
         the Company. Consultant shall not represent the Company, its Board of
         Directors, its officers or any other members of the Company in any
         transactions or communications nor shall Consultant make claim to do
         so.

3.       Liability. With regard to the services to be performed by the
         Consultant pursuant to the terms of this agreement, the Consultant
         shall not be liable to the Company, or to anyone who may claim any
         right due to any relationship with the Company, for any acts or
         omissions in the performance of services on the part of the Consultant
         or on the part of the agents or employees of the Consultant, except
         when said acts or omissions of the Consultant are due to willful
         misconduct or gross negligence. The Company shall hold the Consultant
         free and harmless from any obligations, costs, claims, judgments,
         attorneys' fees, and attachments arising from or growing out of the
         services rendered to the Company pursuant to the terms of this
         agreement or in any way connected with the rendering of services,
         except when the same shall arise due to the willful misconduct or gross

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         negligence of the Consultant and the Consultant is adjudged to be
         guilty of willful misconduct or gross negligence by a court of
         competent jurisdiction.

4.       Compensation. The Consultant shall receive $2,000 per month from the
         Company for the performance of the services rendered to the Company
         pursuant to the terms of the agreement. In addition, the Company shall
         reimburse the Consultant per diem for any reasonable out of pocket
         expenses incurred by the Consultant pursuant to the terms of this
         agreement. The Consultant shall submit itemized statements of expenses
         incurred during any particular month for reimbursement.

5.       Arbitration. Any controversy or claim arising out of or relating to
         this contract, or the breach thereof, shall be settled by arbitration
         in accordance of the rules of the American Arbitration Association, and
         judgment upon the award rendered by the arbitration (s) shall be
         entered in any court having jurisdiction thereof.

        IN WITNESS WHEREOF, the parties have hereunto executed this Agreement as
of the 1st day of January 2002.

UROPLASTY, INC.                                         CONSULTANT

/s/Daniel G. Holman                                     /s/Joel R. Pitlor
Daniel G. Holman                                        Joel R. Pitlor
C.E.O., President

                       Consulting Agreement - Page 2 of 2<PAGE>
                                                                    EXHIBIT 10.D

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                       HEALTHCARE LIABILITY EXCESS OF LOSS
                              REINSURANCE CONTRACT
                           EFFECTIVE: JANUARY 1, 2001

                                    issued to

                        Midwest Medical Insurance Company
                             Minneapolis, Minnesota

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                                TABLE OF CONTENTS

<Table>
<Caption>
    ARTICLE                                                           PAGE
<S>                                                                   <C>
           I      Classes of Business Reinsured                        1
          II      Commencement and Termination                         2
         III      Territory                                            3
          IV      Exclusions                                           3
           V      Retention and Limit                                  4
          VI      Definitions                                          6
         VII      Claims and Loss Adjustment Expense                   8
        VIII      Subrogation                                          9
          IX      Reinsurance Premium                                  9
           X      Commission Coverages B and C                        11
          XI      Profit Sharing Coverages A, D and E                 11
         XII      Offset                                              12
        XIII      Access to Records (BRMA 1D)                         12
         XIV      Net Retained Lines (BRMA 32B)                       12
          XV      Errors and Omissions (BRMA 14F)                     13
         XVI      Currency (BRMA 12A)                                 13
        XVII      Taxes (BRMA 50C)                                    13
       XVIII      Federal Excise Tax (BRMA 17A)                       13
         XIX      Loss and Contingent Liability Reserves              14
          XX      Insolvency                                          16
         XXI      Arbitration (BRMA 6M)                               16
        XXII      Service of Suit (BRMA 49C)                          17
       XXIII      Intermediary (BRMA 23A)                             18
                  Schedule A
</Table>

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                       HEALTHCARE LIABILITY EXCESS OF LOSS
                              REINSURANCE CONTRACT
                           EFFECTIVE: JANUARY 1, 2001

                                    issued to

                        Midwest Medical Insurance Company
                             Minneapolis, Minnesota
                   (hereinafter referred to as the "Company")

                                       by

                   The Subscribing Reinsurer(s) Executing the
                     Interests and Liabilities Agreement(s)
                                 Attached Hereto
                  (hereinafter referred to as the "Reinsurer")

ARTICLE I - CLASSES OF BUSINESS REINSURED

A.     By this Contract the Reinsurer agrees to reinsure the excess liability
       which may accrue to the Company under its policies, contracts and binders
       of insurance or reinsurance (hereinafter called "policies") issued or
       renewed on or after the effective date hereof, and classified by the
       Company as follows:

       1.     Professional Liability business as respects physicians, surgeons,
              dentists and ancillary health care professionals written on a
              claims made basis;

       2.     General Liability and Employee Benefits Liability business as
              respects physicians, surgeons, dentists and ancillary health care
              professional entities written on an occurrence basis; and

       3.     Primary and Umbrella Excess Health Care Systems Professional
              Liability, General Liability and Employee Benefits Liability
              business providing both claims made and occurrence basis coverages
              and issued to health care facilities, it being understood that the
              combination of the Company's primary and umbrella/excess policies
              issued to any one health care facility shall be considered one
              policy. It is further understood that the umbrella excess business
              covered hereunder shall be written in excess of the following
              primary coverages:

              a.     Professional and General Liability insurance with minimum
                     limits of liability of $1,000,000 as respects each claim or
                     each occurrence (as applicable) and in the aggregate;

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[E.W. BLANCH COMPANY LOGO]                                               Page 1

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              b.     Automobile Liability insurance with minimum limits of
                     liability of $500,000 as respects each accident, combined
                     single limit;

              c.     Employers Liability insurance written under Workers'
                     Compensation and Employers Liability policies with minimum
                     limits of liability of $100,000 as respects each accident
                     bodily injury by accident, $500,000 as respects policy
                     limit bodily injury by disease, and $100,000 as respects
                     each employee bodily injury by disease; and

       4.     Managed Care Liability insurance, including Directors and Officers
              Liability and Employment Practices Liability business written on a
              claims made basis;

       in accordance with the Company original policies and subject to the
       terms, conditions and limitations hereinafter set forth.

B.     The Company may issue prior acts and extended reporting coverage in
       accordance with its original policies. Any claim under extended reporting
       coverage shall be deemed to have been reported on the day the original
       policy expired or was canceled. Premium, if any, for such extended
       reporting coverage period shall be considered fully earned by the
       Reinsurer on the last full day the original policy was in force.

ARTICLE II - COMMENCEMENT AND TERMINATION

A.     This Contract shall become effective on January 1, 2001, with respect to
       losses occurring under policies allocated to underwriting years
       commencing on or after that date (or, as respects policies written on a
       claims made basis, claims made against and/or reported to the Company on
       or after that date), and shall continue in force thereafter until
       terminated.

B.     Either party may terminate this Contract on any December 31 by giving the
       other party not less than 90 days prior written notice.

C.     Unless the Company elects to reassume the ceded unearned premium in force
       on the effective date of termination, and so notifies the Reinsurer prior
       to or as promptly as possible after the effective date of termination,
       reinsurance hereunder on business in force on the effective date of
       termination shall remain in full force and effect until expiration,
       cancellation or next premium anniversary of such business, whichever
       first occurs, but in no event beyond 12 months following the effective
       date of termination.

D.     "Underwriting year" as used herein shall mean the period from January 1,
       2001 through December 31, 2001, and each subsequent 12-month period shall
       be a separate underwriting year. All premiums and losses from policies
       allocated to an underwriting year shall be credited or charged,
       respectively, to such underwriting year, regardless of the date said
       premiums earn or such losses occur. It is understood that a policy will
       be allocated to the underwriting year which is in effect as of:

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[E.W. BLANCH COMPANY LOGO]                                               Page 2

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       1.     As respects all new policies, the effective date of such policies;

       2.     As respects renewals of one year or less term policies, the
              renewal date of such policies;

       3.     As respects continuous or greater than one year term policies, the
              premium anniversary date of such policies.

       Such policies shall remain in the same underwriting year, as originally
       allocated, until the next renewal date or premium anniversary date, at
       which time such policies shall be reallocated to the underwriting year in
       effect as of such date as provided in subparagraphs 2 and 3 above.

ARTICLE III - TERRITORY

This Contract shall be worldwide in its geographical scope.

ARTICLE IV - EXCLUSIONS

A.     This Contract does not apply to and specifically excludes the following:

       1.     Reinsurance assumed by the Company under obligatory reinsurance
              agreements, except agency reinsurance where the policies involved
              are to be reunderwritten in accordance with the underwriting
              standards of the Company and reissued as Company policies at the
              next anniversary or expiration date or reinsurance of "fronting
              carriers," where the policies involved are underwritten, rated and
              administered by the Company.

       2.     Business written by the Company above self-insured retentions
              (SIRs).

       3.     Nuclear risks as defined in the "Nuclear Incident Exclusion Clause
              - Liability - Reinsurance (U.S.A.)," the "Nuclear Incident
              Exclusion Clause - Liability - Reinsurance (Canada)" and the
              "Nuclear Energy Risks Exclusion Clause - Reinsurance (Worldwide
              excluding U.S.A. and Canada)" attached to and forming part of this
              Contract. However, this exclusion shall not apply to nuclear
              exposures emanating from health care facilities.

       4.     Liability as a member, subscriber or reinsurer of any pool,
              syndicate or association.

       5.     All liability of the Company arising by contract, operation of
              law, or otherwise, from its participation or membership, whether
              voluntary or involuntary, in any insolvency fund. "Insolvency
              fund" includes any guaranty fund, insolvency fund, plan, pool,
              association, fund or other arrangement, however denominated,
              established or governed, which provides for any assessment of or
              payment or assumption by the Company of

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[E.W. BLANCH COMPANY LOGO]                                               Page 3

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              part or all of any claim, debt, charge, fee or other obligation of
              an insurer, or its successors or assigns, which has been declared
              by any competent authority to be insolvent, or which is otherwise
              deemed unable to meet any claims, debt, charge, fee or other
              obligation in whole or in part.

       6.     Loss or damage caused by or resulting from war, invasion,
              hostilities, acts of foreign enemies, civil war, rebellion,
              insurrection, military or usurped power, or martial law or
              confiscation by order of any government or public authority, but
              this exclusion shall not apply to loss or damage covered under a
              standard policy with a standard War Exclusion Clause.

       7.     Pollution under any General Liability policy written by the
              Company which does not contain the pollution exclusion set forth
              in ISO Commercial General Liability Coverage Form CG 00 01 (Ed.
              11/88) or as subsequently amended; however, this exclusion does
              not apply to any risk located in a jurisdiction which has not
              approved the Insurance Services Office exclusion or where other
              regulatory constraints prohibit the Company from implementing such
              exclusion nor to coverage provided under the Company's Limited
              Pollution Coverage endorsement. If the Company elects to implement
              an exclusion different from that of ISO, such exclusion will be
              deemed a suitable substitute provided the Company has submitted
              the wording to the Reinsurers and received the Reinsurers' prior
              approval.

       8.     Business written on a co-indemnity basis.

       9.     Any business obtained through Company merger or acquisition.

B.     Business falling within the scope of one or more of the exclusions set
       forth in paragraph A may be submitted to the Reinsurer for special
       acceptance and, if accepted by the Reinsurer, shall be subject to all the
       terms of this Contract except as modified by the special acceptance.

ARTICLE V - RETENTION AND LIMIT

A.     COVERAGE A: As respects all business covered hereunder, except the
       business set forth in subparagraph 4 of paragraph A of Article I, the
       Company shall retain and be liable for the first $1,000,000 of ultimate
       net loss as respects each insured, each occurrence. The Reinsurer shall
       then be liable for the amount by which such ultimate net loss exceeds the
       Company's retention, but the liability of the Reinsurer shall not exceed
       $1,000,000 as respects each insured, each occurrence.

B.     COVERAGE B: As respects all business covered hereunder, except the
       business set forth in subparagraph 4 of paragraph A of Article I, the
       Company shall retain and be liable for the first amount of ultimate net
       loss as follows:

       1.     As respects policies with primary limits of $2,000,000 each
              occurrence and $4,000,000 in the annual aggregate, $2,000,000 each
              insured, each occurrence and $4,000,000 each insured, in the
              annual aggregate;

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[E.W. BLANCH COMPANY LOGO]                                               Page 4

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       2.     As respects policies with primary limits of $2,000,000 each
              occurrence and in the annual aggregate, $2,000,000 each insured,
              each occurrence and in the annual aggregate.

       The Reinsurer shall then be liable for the amount by which such ultimate
       net loss exceeds the Company's retention, but the liability of the
       Reinsurer shall not exceed $10,000,000 as respects each insured, each
       occurrence and in the annual aggregate, where applicable.

C.     COVERAGE C: As respects the business set forth in subparagraph 4 of
       paragraph A of Article I, the Company shall retain and be liable for the
       first $100,000 of ultimate net loss as respects each insured, each
       occurrence. The Reinsurer shall then be liable for the amount by which
       such ultimate net loss exceeds the Company's retention, but the liability
       of the Reinsurer shall not exceed $1,900,000 as respects each insured,
       each occurrence.

D.     COVERAGE D: As respects all business covered hereunder, the Company shall
       retain and be liable for the first $1,500,000 of ultimate net loss
       arising out of each loss event. The Reinsurer shall then be liable for
       the amount by which such ultimate net loss exceeds the Company's
       retention, but the liability of the Reinsurer shall not exceed $5,000,000
       as respects any one loss event.

       It is understood that recoveries under individual facultative reinsurance
       and under Coverages A, B and C of this Article shall inure to the benefit
       of Coverage D.

E.     COVERAGE E: The Company shall retain and be liable for the first
       $1,000,000 of the following as respects any one loss event:

       1.     The Company's initial retention of ultimate net loss under
              Coverages A and/or C above; and then

       2.     Any loss in excess of policy limits and/or extra contractual
              obligations (as defined in Article VI).

       The Reinsurer shall then be liable for the amount of loss in excess of
       policy limits and/or extra contractual obligations which exceeds the
       Company's retention, but the liability of the Reinsurer shall not exceed
       $5,000,000 as respects loss in excess of policy limits and/or extra
       contractual obligations arising out of any one loss event.

F.     As respects Coverages D and E hereunder, the maximum amount recoverable
       from the Reinsurer hereunder on a combined basis shall be $5,000,000 as
       respects any one loss event.

G.     In the event the Company suffers losses arising out of the same loss
       event under two or more underwriting years as defined under this
       Contract, the Company's prior contracts or any renewals of this Contract,
       the Company's retention with respect to each underwriting year shall be
       reduced to that percentage of the Company's retention which the Company's
       losses under policies allocated to that underwriting year bear to the
       Company's total losses arising

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[E.W. BLANCH COMPANY LOGO]                                               Page 5

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       out of that loss event. The limit of the Reinsurer's liability shall be
       prorated in the same manner.

ARTICLE VI - DEFINITIONS

A.     "Ultimate net loss" as used herein is defined as the sum or sums
       (including deductibles of $250,000 or less paid by the Company or the
       insured and any loss adjustment expense, as hereinafter defined, which
       reduces the Company's limit of liability under the policy involved) paid
       or payable by the Company in settlement of claims and in satisfaction of
       judgments rendered on account of such claims, after deduction of all
       salvage, all recoveries and all claims on inuring insurance or
       reinsurance, whether collectible or not. Nothing herein shall be
       construed to mean that losses under this Contract are not recoverable
       until the Company's ultimate net loss has been ascertained.

B.     "Loss in excess of policy limits" and "extra contractual obligations" as
       used herein shall be defined as follows:

       1.     "Loss in excess of policy limits" shall mean 90.0% of any amount
              paid or payable by the Company in excess of its policy limits, but
              otherwise within the terms of its policy, such loss in excess of
              its policy limits having been incurred because of, but not limited
              to, failure by the Company to settle within the policy limits or
              by reason of the Company's alleged or actual negligence or bad
              faith in rejecting an offer of settlement or in the preparation of
              the defense or in the trial of an action against its insured or
              reinsured or in the preparation or prosecution of an appeal
              consequent upon such an action.

       2.     "Extra contractual obligations" shall mean 90.0% of any punitive,
              exemplary, compensatory or consequential damages paid or payable
              by the Company, not covered by any other provision of this
              Contract and which arise from the handling of any claim on
              business subject to the Contract, such liabilities arising because
              of, but not limited to, failure by the Company to settle within
              the policy limits or by reason of the Company's alleged or actual
              negligence, fraud or bad faith in rejecting an offer of settlement
              or in the preparation of the defense or in the trial of an action
              against its insured or reinsured or in the preparation or
              prosecution of an appeal consequent upon such an action. An extra
              contractual obligation shall be deemed, in all circumstances, to
              have occurred on the same date as the loss covered or alleged to
              be covered or alleged to be covered under the policy.

       Notwithstanding anything stated herein, this Contract shall not apply to
       any loss in excess of policy limits or any extra contractual obligation
       incurred by the Company as a result of any fraudulent and/or criminal act
       by any officer or director or employee of the Company acting individually
       or collectively or in collusion with any individual or corporation or any
       other organization or party involved in the presentation, defense or
       settlement of any claim covered hereunder.

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[E.W. BLANCH COMPANY LOGO]                                               Page 6

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C.     "Insured" as used herein shall mean any party or parties provided with a
       separate policy limit by the Company.

D.     "Occurrence" shall have the same meaning as the term occurrence, claim,
       medical incident, wrongful act or such similar term, as applicable, under
       the Company's policy forms.

E.     "Loss event" as used herein shall mean each accident, occurrence, medical
       incident, wrongful act or series of accidents, occurrences, medical
       incidents or wrongful acts arising out of one event, whether involving
       one or several of the Company's policies or insureds. All bodily injury
       or property damage arising out of continuous or repeated exposure to
       substantially the same general conditions shall be considered as arising
       out of one event, whether involving one or several of the Company's
       policies or insureds. The date of the loss event shall be deemed to be
       the following:

       1.     As respects a loss involving one or more coverages written on an
              occurrence basis, the date on which bodily injury or property
              damage occurs;

       2.     As respects a loss involving one or more coverages written on a
              claims-made basis, the date when the claim is first made in
              accordance with the policy terms, and any related claims reported
              subsequent to such date shall be included in such loss. However,
              if the claim is first made during an extended reporting period,
              the date of the loss event shall be deemed to be the last day of
              the policy period;

       3.     As respects a loss involving one or more coverages written on an
              occurrence basis and one or more coverages written on a
              claims-made basis, the date on which bodily injury or property
              damage occurs, and any related claims reported subsequent to such
              date shall be included in such loss whether they are covered under
              occurrence or claims-made policies.

F.     "Loss adjustment expense" as used herein shall mean expenses assignable
       to the appraisal, adjustment, settlement, litigation, investigation,
       defense and/or appeal of specific claims, regardless of how such expenses
       are classified for statutory reporting purposes. Loss adjustment expense
       shall include, but not be limited to interest on judgments, legal
       expenses, costs incurred in connection with coverage questions and legal
       actions connected thereto and declaratory judgment expense, as outlined
       below, but shall not include other salaries and expenses of the Company's
       employees or office and normal overhead expenses.

G.     "Declaratory judgment expense" as used herein shall mean all court costs,
       attorney's fees and expense incurred by the Company during the
       underwriting year in contesting insurance coverage on policies reinsured
       hereunder and shall be further limited as follows:

       1.     Expenses associated with unsuccessful actions shall constitute
              loss adjustment expense;

       2.     Expenses associated with successful or compromised actions shall
              be recoverable at 80.0%, and shall be subject to a $75,000
              deductible per action, which shall be retained by the Company.

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[E.W. BLANCH COMPANY LOGO]                                               Page 7

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       Declaratory judgment expenses shall be deemed to have occurred on the
       same date as the loss covered or alleged to be covered under the policy.

       It is understood and agreed the maximum reinsurance recovery, as respects
       all declaratory judgment expense arising out of all business reinsured
       hereunder, shall be limited to $1,000,000 for each underwriting year.

ARTICLE VII - CLAIMS AND LOSS ADJUSTMENT EXPENSE

A.     Whenever a claim is reserved by the Company for an amount greater than
       $500,000 and/or whenever a claim appears likely to result in a claim
       under this Contract, the Company shall notify the Reinsurer. All cases of
       serious injury which, regardless of considerations of liability or
       coverage, which, in the opinion of the Company, might result in a claim
       under this Contract, shall be reported to the Reinsurer, including but
       not limited to the following:

       1.     Brain injury with significant cognitive, behavioral or physical
              residual damages;

       2.     Quadriplegia or paraplegia including Cauda Equina Syndrome;

       3.     Fatalities or significantly diminished life expectancy of wage
              earners or women with minor children;

       4.     Any claim emanating from a Managed Care Errors and Omissions,
              Directors and Officers and/or Employment Practices Liability
              Insurance Policy;

       5.     Any action alleging extra contractual obligations against the
              Company;

       6.     Any declaratory judgment action brought by or against the Company.

       The Company will provide individual claim reports on reported claims to
       the Reinsurer and will provide updates as needed. The Reinsurer shall
       have the right to participate, at its own expense, in the defense of any
       claim or suit or proceeding involving this reinsurance.

B.     All claim settlements made by the Company, provided they are within the
       terms of this Contract, shall be binding upon the Reinsurer, and the
       Reinsurer agrees to pay all amounts for which it may be liable
       immediately upon receipt of reasonable evidence of the amount paid by the
       Company.

C.     In the event of loss hereunder, loss adjustment expense incurred by the
       Company in connection therewith which does not reduce the Company's limit
       of liability under the policy involved shall be shared by the Company and
       the Reinsurer in the proportion the ultimate net loss paid or payable by
       the Reinsurer bears to the total loss paid or payable by the Company,
       prior to any reinsurance recoveries, but after deduction of all salvage,
       subrogation and other recoveries. However, if a verdict or judgment is
       reduced by any

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[E.W. BLANCH COMPANY LOGO]                                               Page 8

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       process other than by the trial court, resulting in an ultimate saving to
       the Reinsurer, or a judgment is reversed outright, the expenses incurred
       in securing such reduction or reversal shall be shared by the Company and
       the Reinsurer in the proportion that each benefits from such reduction or
       reversal, and the expenses incurred up to the time of the original
       verdict or judgment shall be shared in proportion to each party's
       interest in such original verdict or judgment. The Reinsurer's liability
       for such loss adjustment expense shall be in addition to its liability
       for ultimate net loss.

ARTICLE VIII - SUBROGATION

The Reinsurer shall be credited with recoveries from subrogation (i.e.,
reimbursement obtained or recovery made by the Company, less the actual cost,
excluding salaries of officials and employees of the Company and sums paid to
attorneys as retainer, of obtaining such reimbursement or making such recovery)
on account of claims and settlements involving reinsurance hereunder. Recoveries
therefrom shall always be used to reimburse the excess carriers in the reverse
order of their priority according to their participation before being used in
any way to reimburse the Company for its primary loss. The Company hereby agrees
to enforce its rights to subrogation relating to any loss, a part of which loss
was sustained by the Reinsurer, and to prosecute all claims arising out of such
rights.

ARTICLE IX - REINSURANCE PREMIUM

A.     COVERAGES A, D AND E

       1.     As premium for the reinsurance provided hereunder during each
              underwriting year, the Company shall pay the Reinsurer 8.75% of
              its net written premium applicable to all subject business for the
              underwriting year.

       2.     The Company shall pay the Reinsurer an annual deposit premium of
              $3,400,000 in four equal installments of $850,000 on March 31,
              June 30, September 30 and December 31 of each underwriting year.

       3.     Within 45 days after the end of each underwriting year, the
              Company shall provide a report to the Reinsurer setting forth the
              premium due hereunder for the underwriting year, computed in
              accordance with subparagraph 1 above, and any additional premium
              due the Reinsurer or return premium due the Company shall be
              remitted promptly.

       4.     "Net written premium" as used herein is defined as gross written
              premium of the Company for primary policy limits of $2,000,000 or
              less for the classes of business reinsured hereunder, less
              cancellations and return premiums, and less premiums ceded by the
              Company for inuring facultative reinsurance, if any.

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[E.W. BLANCH COMPANY LOGO]                                               Page 9

<PAGE>

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B. COVERAGE B

       1.     As premium for the reinsurance provided hereunder during each
              underwriting year, the Company shall pay the Reinsurer the
              percentage of its excess limits net written premium set forth in
              Schedule A, subject to the minimum premiums, gross of ceding
              commission, for health care facilities set forth below:

              a.     As respects hospitals with at least 200 occupied beds,
                     $3,000 per $1,000,000 of policy limit;

              b.     As respects hospitals with 100 to 199 occupied beds, $2,500
                     per $1,000,000 of policy limit;

              c.     As respects hospitals with less than 100 occupied beds
                     which provide obstetrical services, $2,500 per $1,000,000
                     of policy limit;

              d.     As respects hospitals with 50 to 99 occupied beds, $1,750
                     per $1,000,000 of policy limit;

              e.     As respects hospitals with less than 50 occupied beds,
                     $1,000 per $1,000,000 of policy limit;

              f.     As respects non-hospital health care exposures, $1,500 per
                     $1,000,000 of policy limit;

              g.     As respects nursing homes or long-term care facilities,
                     $1,000 per $1,000,000 of policy limit.

       2.     The Company shall pay the Reinsurer an annual deposit premium of
              $960,000 for the underwriting year in four equal installments of
              $240,000 on March 31, June 30, September 30 and December 31 of
              each underwriting year.

       3.     Within 45 days after the end of each underwriting year, the
              Company shall report its excess limits net written premium for the
              underwriting year. Any additional premium due the Reinsurer, at
              the rate set forth in Schedule A, shall be paid by the Company
              with its report, and any return premium due the Company shall be
              remitted promptly.

C.    COVERAGE C

       1.     As premium for the reinsurance provided hereunder during each
              underwriting year, the Company shall pay the Reinsurer 100% of its
              excess limits net written premium applicable to that portion of
              the policy limit exceeding the Company's retention under Coverage
              C of Article V.

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[E.W. BLANCH COMPANY LOGO]                                               Page 10

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       2.     Within 45 days after the end of each calendar quarter, the Company
              shall report its excess limits net written premium for the
              calendar quarter. The premium due the Reinsurer shall be paid by
              the Company with its report.

ARTICLE X - COMMISSION - COVERAGES B AND C

A.     As respects Coverages B and C of Article V business only, the Reinsurer
       shall allow the Company a 25.0% commission on all premiums ceded to the
       Reinsurer hereunder. The Company shall allow the Reinsurer return
       commission on return premiums at the same rate.

B.     It is expressly agreed that the ceding commission allowed the Company
       includes provision for all dividends, commissions, taxes, assessments,
       and all other expenses of whatever nature, except loss adjustment
       expense.

ARTICLE XI - PROFIT SHARING - COVERAGES A, D AND E

A.     The Reinsurer shall pay the Company profit sharing equal to 35.0% of the
       net profit, if any, accruing to the Reinsurer for each accounting period
       defined herein. The first accounting period shall be from the effective
       date of this Contract through December 31, 2003, and each subsequent
       36-month period shall be a separate accounting period. However, if this
       Contract is terminated, the final accounting period shall be from the
       beginning of the then current accounting period through the date of
       termination if this Contract is terminated on a "cutoff" basis, or the
       end of the runoff period if this Contract is terminated on a "runoff"
       basis.

B.     The Reinsurer's net profit for each accounting period shall be calculated
       in accordance with the following formula, it being understood that a
       positive balance equals net profit and a negative balance equals net
       loss:

       1.     Premiums earned for policies allocated to the accounting period;
              less

       2.     Expenses incurred by the Reinsurer at 25.0% of premiums earned for
              policies allocated to the accounting period; less

       3.     Losses incurred for policies allocated to the accounting period;
              less

       4.     The Reinsurer's net loss, if any, from the immediately preceding
              accounting period.

C.     The Company shall calculate and report the Reinsurer's net profit within
       45 days after 24 months following the end of each accounting period, and
       within 45 days after the end of each 12-month period thereafter until all
       losses subject hereto have been finally settled. Each such calculation
       shall be based on cumulative transactions hereunder from the beginning of
       the accounting period through the effective date of calculation. As
       respects the initial calculation referred to above, any profit sharing
       shown to be due the Company shall

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[E.W. BLANCH COMPANY LOGO]                                               Page 11

<PAGE>

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       be paid by the Reinsurer as promptly as possible after receipt and
       verification of the Company's report. As respects each recalculation, any
       additional profit sharing shown to be due the Company shall be paid by
       the Reinsurer as promptly as possible after receipt and verification of
       the Company's report. Any return profit sharing shown to be due the
       Reinsurer shall be paid by the Company with its report.

D.     "Losses incurred" as used herein shall mean ceded losses and loss
       adjustment expense paid as of the effective date of calculation, plus the
       Company's ceded reserves for losses and loss adjustment expense
       outstanding as of the same date, it being understood and agreed that all
       losses and related loss adjustment expense under policies allocated to an
       accounting period shall be charged to that accounting period, regardless
       of the date said losses actually occur, unless this Contract is
       terminated on a "cutoff" basis, in which event the Reinsurer shall have
       no liability for claims made or occurrences commencing after the
       effective date of termination.

E.     "Premiums earned" as used herein shall mean the ceded written premiums
       for policies (or endorsements) allocated to the accounting period, less
       the unearned portion thereof as of the effective date of calculation, it
       being understood that all premium from policies (or endorsements)
       allocated to an accounting period shall be credited to that accounting
       period, unless this Contract is terminated on a "cutoff" basis and the
       Company reassumes the unearned premium as of the effective date of
       termination.

ARTICLE XII - OFFSET

The Company and the Reinsurer shall have the right to offset any balance or
amounts due from one party to the other under the terms of this Contract or any
other contract heretofore or hereafter entered into between the Company, whether
acting as assuming reinsurer or ceding company. The party asserting the right of
offset may exercise such right any time whether the balances due are on account
of premiums or losses or otherwise.

ARTICLE XIII - ACCESS TO RECORDS (BRMA 1D)

The Reinsurer or its designated representatives shall have access at any
reasonable time to all records of the Company which pertain in any way to this
reinsurance.

ARTICLE XIV - NET RETAINED LINES (BRMA 32B)

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

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[E.W. BLANCH COMPANY LOGO]                                               Page 12

<PAGE>

B.     The amount of the Reinsurer's liability hereunder in respect of any loss
       or losses shall not be increased by reason of the inability of the
       Company to collect from any other reinsurer(s), whether specific or
       general, any amounts which may have become due from such reinsurer(s),
       whether such inability arises from the insolvency of such other
       reinsurer(s) or otherwise.

ARTICLE XV - ERRORS AND OMISSIONS (BRMA 14F)

Inadvertent delays, errors or omissions made in connection with this Contract or
any transaction hereunder shall not relieve either party from any liability
which would have attached had such delay, error or omission not occurred,
provided always that such error or omission is rectified as soon as possible
after discovery.

ARTICLE XVI - CURRENCY (BRMA 12A)

A.     Whenever the word "Dollars" or the "$" sign appears in this Contract,
       they shall be construed to mean United States Dollars and all
       transactions under this Contract shall be in United States Dollars.

B.     Amounts paid or received by the Company in any other currency shall be
       converted to United States Dollars at the rate of exchange at the date
       such transaction is entered on the books of the Company.

ARTICLE XVII - TAXES (BRMA 50C)

In consideration of the terms under which this Contract is issued, the Company
will not claim a deduction in respect of the premium hereon when making tax
returns, other than income or profits tax returns, to any state or territory of
the United States of America or the District of Columbia.

ARTICLE XVIII - FEDERAL EXCISE TAX (BRMA 17A)

(Applicable to those reinsurers, excepting Underwriters at Lloyd's London and
other reinsurers exempt from Federal Excise Tax, who are domiciled outside the
United States of America.)

A.     The Reinsurer has agreed to allow for the purpose of paying the Federal
       Excise Tax the applicable percentage of the premium payable hereon as
       imposed under Section 4371 of the Internal Revenue Code to the extent
       such premium is subject to the Federal Excise Tax.

B.     In the event of any return of premium becoming due hereunder the
       Reinsurer will deduct the applicable percentage from the return premium
       payable hereon and the Company or its agent should take steps to recover
       the tax from the United States Government.

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[E.W. BLANCH COMPANY LOGO]                                               Page 13

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ARTICLE XIX - LOSS AND CONTINGENT LIABILITY RESERVES

(Applicable only if the Reinsurer cannot qualify for credit by the state having
jurisdiction over the Company's loss reserves and contingent liability
reserves.)

A.     As regards policies or bonds issued by the Company coming within the
       scope of this Contract, the Company agrees that, when it shall file with
       the Insurance Department or set up on its books reserves for losses and
       contingent liability reserves covered hereunder which it shall be
       required by law to set up, it will forward to the Reinsurer a statement
       showing the proportion of such reserves which is applicable to the
       Reinsurer. The Reinsurer hereby agrees that it will apply for and secure
       delivery to the Company of a clean, irrevocable and unconditional Letter
       of Credit issued and confirmed, if confirmation is required by the
       regulatory authority(ies) having jurisdiction over the Company's loss
       reserves, by a bank or banks meeting the NAIC Securities Valuation Office
       credit standards for issuers of Letters of Credit and which is (are)
       acceptable to said regulatory authority(ies), in an amount equal to the
       Reinsurer's proportion of reserves in respect of known outstanding losses
       that have been reported to the Reinsurer, allocated loss expenses and
       contingent liability reserves relating thereto as shown in the statement
       prepared by the Company.

B.     The Letter of Credit shall be in a form acceptable to insurance
       regulatory authority(ies) having jurisdiction over the Company's loss
       reserves and contingent liability reserves, shall be issued for a period
       of not less than one year, and shall be automatically extended for one
       year from its date of expiration or any future expiration date unless
       thirty (30) days prior to any expiration date the issuing bank shall
       notify the Company by registered mail that the issuing bank elects not to
       consider the Letter of Credit extended for any additional period. An
       issuing bank, not a member of the federal reserve system or not chartered
       in New York State, shall provide sixty (60) days notice to the Company
       prior to any expiration in the event of non-extension.

C.     Notwithstanding any other provision of this Contract, the Company or its
       successors in interest may draw upon such credit at any time, without
       diminution because of the insolvency of the Company or of the Reinsurer,
       for one or more of the following purposes only:

       1.     To pay the Reinsurer's share or to reimburse the Company for the
              Reinsurer's share of any loss reinsured by this Contract, the
              payment of which has been agreed by the Reinsurer and which has
              not been otherwise paid;

       2.     To make refund of any sum which is in excess of the actual amount
              required to pay the Reinsurer's share of any liability reinsured
              by this Contract;

       3.     In the event of expiration of the Letter of Credit as provided for
              above, to establish deposit of the Reinsurer's share of any known
              and reported outstanding losses, allocated expenses and contingent
              liability reserves relating thereto under this Contract.

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[E.W. BLANCH COMPANY LOGO]                                               Page 14

<PAGE>

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              Such cash deposit shall be held in an interest bearing account
              separate from the Company's other assets, and interest thereon
              shall accrue to the benefit of the Reinsurer.

       The issuing bank shall have no responsibility whatsoever in connection
       with the propriety of withdrawals made by the Company or the disposition
       of funds withdrawn, except to ensure that withdrawals are made only upon
       the order of properly authorized representatives of the Company.

D.     At annual intervals, or more frequently as agreed but never more
       frequently than quarterly, the Company shall prepare a specific
       statement, for the sole purpose of amending the Letter of Credit, of the
       Reinsurer's share of known and reported outstanding losses and allocated
       expenses and contingent liability reserves relating thereto. If the
       statement shows that the Reinsurer's share of such losses, allocated loss
       expenses and contingent liability reserves exceeds the balance of credit
       as of the statement date, the Reinsurer shall, within thirty (30) days
       after receipt of notice of such excess, secure delivery to the Company of
       an amendment of the Letter of Credit increasing the amount of credit by
       the amount of such difference. If, however, the statement shows that the
       Reinsurer's share of known and reported outstanding losses plus allocated
       loss expenses, plus contingent liability reserves relating thereto is
       less than the balance of credit as of the statement date, the Company
       shall, within thirty (30) days after receipt of written request from the
       Reinsurer, release such excess credit by agreeing to secure an amendment
       to the Letter of Credit reducing the amount of credit available by the
       amount of such excess credit.

E.     "Ceded contingent liability reserves" (as respects unauthorized
       reinsurers), for each underwriting year, shall be an amount equal to the
       following percentage of ceded earned premium:

       1.     As respects the first calculation, 80.0%;

       2.     As respects the second calculation, 80.0%;

       3.     As respects the third calculation, 60.0%;

       4.     As respects the fourth calculation, 40.0%;

       5.     As respects the fifth calculation, 20.0%;

       6.     As respects the final calculation, 0%.

       Such amount shall be calculated as of December 31 of each underwriting
       year and shall be recalculated at 12-month intervals until 60 months
       following the initial calculation, at which time the Company agrees to
       return the ceded contingent liability reserve portion of the Letter of
       Credit for that underwriting year to the Reinsurer.

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[E.W. BLANCH COMPANY LOGO]                                               Page 15

<PAGE>

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       Notwithstanding the above, the amount of contingent liability reserves
       may be increased upon mutual agreement.

       "Ceded earned premiums" as used herein for each underwriting year shall
       mean ceded net written premium for policies allocated to the underwriting
       year, less the unearned portion thereof as of the effective date of
       calculation.

ARTICLE XX - INSOLVENCY

A.     In the event of the insolvency of the Company, this reinsurance shall be
       payable directly to the Company or to its liquidator, receiver,
       conservator or statutory successor on the basis of the liability of the
       Company without diminution because of the insolvency of the Company or
       because the liquidator, receiver, conservator or statutory successor of
       the Company has failed to pay all or a portion of any claim. It is
       agreed, however, that the liquidator, receiver, conservator or statutory
       successor of the Company shall give written notice to the Reinsurer of
       the pendency of a claim against the Company indicating the policy or bond
       reinsured which claim would involve a possible liability on the part of
       the Reinsurer within a reasonable time after such claim is filed in the
       conservation or liquidation proceeding or in the receivership, and that
       during the pendency of such claim, the Reinsurer may investigate such
       claim and interpose, at its own expense, in the proceeding where such
       claim is to be adjudicated, any defense or defenses that it may deem
       available to the Company or its liquidator, receiver, conservator or
       statutory successor. The expense thus incurred by the Reinsurer shall be
       chargeable, subject to the approval of the Court, against the Company as
       part of the expense of conservation or liquidation to the extent of a pro
       rata share of the benefit which may accrue to the Company solely as a
       result of the defense undertaken by the Reinsurer.

B.     Where two or more reinsurers are involved in the same claim and a
       majority in interest elect to interpose defense to such claim, the
       expense shall be apportioned in accordance with the terms of this
       Contract as though such expense had been incurred by the Company.

C.     It is further understood and agreed that, in the event of the insolvency
       of the Company, the reinsurance under this Contract shall be payable
       directly by the Reinsurer to the Company or to its liquidator, receiver
       or statutory successor, except as provided by Section 4118(a) of the New
       York Insurance Law or except (1) where this Contract specifically
       provides another payee of such reinsurance in the event of the insolvency
       of the Company or (2) where the Reinsurer with the consent of the direct
       insured or insureds has assumed such policy obligations of the Company as
       direct obligations of the Reinsurer to the payees under such policies and
       in substitution for the obligations of the Company to such payees.

ARTICLE XXI - ARBITRATION (BRMA 6M)

A.     As a condition precedent to any right of action hereunder, any dispute
       arising out of the interpretation, performance or breach of this
       Contract, including the formation or validity

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[E.W. BLANCH COMPANY LOGO]                                               Page 16

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       thereof, shall be submitted for decision to a panel of three arbitrators.
       Notice requesting arbitration will be in writing and sent certified or
       registered mail, return receipt requested.

B.     One arbitrator shall be chosen by each party and the two arbitrators
       shall, before instituting the hearing, choose an impartial third
       arbitrator who shall preside at the hearing. If either party fails to
       appoint its arbitrator within 30 days after being requested to do so by
       the other party, the latter, after 30 days notice by certified or
       registered mail of its intention to do so, may appoint the second
       arbitrator.

C.     If the two arbitrators are unable to agree upon the third arbitrator
       within 30 days of their appointment, the third arbitrator shall be
       selected from a list of six individuals (three named by each arbitrator)
       by a judge of the federal district court having jurisdiction over the
       geographical area in which the arbitration is to take place, or if the
       federal court declines to act, the state court having general
       jurisdiction in such area.

D.     All arbitrators shall be disinterested active or former executive
       officers of insurance or reinsurance companies or Underwriters at
       Lloyd's, London.

E.     Within 30 days after notice of appointment of all arbitrators, the panel
       shall meet and determine timely periods for briefs, discovery procedures
       and schedules for hearings.

F.     The panel shall be relieved of all judicial formality and shall not be
       bound by the strict rules of procedure and evidence. Unless the panel
       agrees otherwise, arbitration shall take place in Minneapolis, Minnesota,
       but the venue may be changed when deemed by the panel to be in the best
       interest of the arbitration proceeding. Insofar as the arbitration panel
       looks to substantive law, it shall consider the law of the State of
       Minnesota. The decision of any two arbitrators when rendered in writing
       shall be final and binding. The panel is empowered to grant interim
       relief as it may deem appropriate.

G.     The panel shall make its decision considering the custom and practice of
       the applicable insurance and reinsurance business as promptly as possible
       following the termination of the hearings. Judgment upon the award may be
       entered in any court having jurisdiction thereof.

H.     Each party shall bear the expense of its own arbitrator and shall jointly
       and equally bear with the other party the cost of the third arbitrator.
       The remaining costs of the arbitration shall be allocated by the panel.
       The panel may, at its discretion, award such further costs and expenses
       as it considers appropriate, including but not limited to attorneys fees,
       to the extent permitted by law.

ARTICLE XXII - SERVICE OF SUIT (BRMA 49C)

(Applicable if the Reinsurer is not domiciled in the United States of America,
and/or is not authorized in any State, Territory or District of the United
States where authorization is required by insurance regulatory authorities)

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[E.W. BLANCH COMPANY LOGO]                                               Page 17

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A.     It is agreed that in the event the Reinsurer fails to pay any amount
       claimed to be due hereunder, the Reinsurer, at the request of the
       Company, will submit to the jurisdiction of a court of competent
       jurisdiction within the United States. Nothing in this Article
       constitutes or should be understood to constitute a waiver of the
       Reinsurer's rights to commence an action in any court of competent
       jurisdiction in the United States, to remove an action to a United States
       District Court, or to seek a transfer of a case to another court as
       permitted by the laws of the United States or of any state in the United
       States.

B.     Further, pursuant to any statute of any state, territory or district of
       the United States which makes provision therefor, the Reinsurer hereby
       designates the party named in its Interests and Liabilities Agreement, or
       if no party is named therein, the Superintendent, Commissioner or
       Director of Insurance or other officer specified for that purpose in the
       statute, or his successor or successors in office, as its true and lawful
       attorney upon whom may be served any lawful process in any action, suit
       or proceeding instituted by or on behalf of the Company or any
       beneficiary hereunder arising out of this Contract.

ARTICLE XXIII - INTERMEDIARY (BRMA 23A)

E. W. Blanch Co., Inc. is hereby recognized as the Intermediary negotiating this
Contract for all business hereunder. All communications (including but not
limited to notices, statements, premium, return premium, commissions, taxes,
losses, loss adjustment expense, salvages and loss settlements) relating thereto
shall be transmitted to the Company or the Reinsurer through E. W. Blanch Co.,
Inc., 3600 West 80th Street, Minneapolis, Minnesota 55431. Payments by the
Company to the Intermediary shall be deemed to constitute payment to the
Reinsurer. Payments by the Reinsurer to the Intermediary shall be deemed to
constitute payment to the Company only to the extent that such payments are
actually received by the Company.

IN WITNESS WHEREOF, the Company by its duly authorized representative has
executed this Contract as of the date undermentioned at:

Minneapolis, Minnesota, this _______ day of _______________________ in the year
________.

                                     -------------------------------------------
                                     Midwest Medical Insurance Company

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[E.W. BLANCH COMPANY LOGO]                                               Page 18

<PAGE>

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                                   SCHEDULE A

                       HEALTHCARE LIABILITY EXCESS OF LOSS
                              REINSURANCE CONTRACT
                           EFFECTIVE: JANUARY 1, 2001

                                    issued to

                        Midwest Medical Insurance Company
                             Minneapolis, Minnesota

<Table>
<Caption>
                    COVERAGE                     PERCENTAGE OF PRECEDING
                    BY LAYER                       $1,000,000 PREMIUM
<S>                                              <C>

               $1,000,000 excess of                      50.0%
               $2,000,000

               $1,000,000 excess of                      55.0%
               $3,000,000

               $1,000,000 excess of                      60.0%
               $4,000,000

               $1,000,000 excess of                      65.0%
               $5,000,000

               $1,000,000 excess of                      70.0%
               $6,000,000

               $1,000,000 excess of                      70.0%
               $7,000,000

               $1,000,000 excess of                      70.0%
               $8,000,000

               $1,000,000 excess of                      70.0%
               $9,000,000

               $1,000,000 excess of                      70.0%
               $10,000,000

               $1,000,000 excess of                      70.0%
               $11,000,000
</Table>

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[E.W. BLANCH COMPANY LOGO]

<PAGE>

U.S.A.

           NUCLEAR INCIDENT EXCLUSION CLAUSE - LIABILITY - REINSURANCE
      (Approved by Lloyd's Underwriters' Fire and Non-Marine Association)

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

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

       LIMITED EXCLUSION PROVISION.*

              I.     It is agreed that the policy does not apply under any
                     liability coverage,
                     (injury, sickness, disease, death or destruction
                     to
                     (bodily injury or property damage
                     with respect to which an insured under the policy is also
                     an insured under a nuclear energy liability policy issued
                     by Nuclear Energy Liability Insurance Association, Mutual
                     Atomic Energy Liability Underwriters or Nuclear Insurance
                     Association of Canada, or would be an insured under any
                     such policy but for its termination upon exhaustion of its
                     limit of liability.

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

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

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

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

                     provided this paragraph (2) shall not be applicable to
                     Family Automobile Policies, Special Automobile Policies, or
                     policies or combination policies of a similar nature,
                     issued by the Reassured on New York risks, until 90 days
                     following approval of the Limited Exclusion Provision by
                     the Governmental Authority having jurisdiction thereof.

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

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

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

       BROAD EXCLUSION PROVISION.*

It is agreed that the policy does not apply:

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

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

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

                                                                     Page 1 of 2
<PAGE>

              II.    Under any Medical Payments Coverage, or under any
                     Supplementary Payments Provision relating to
                     (immediate medical or surgical relief
                     (first aid,
                     to expenses incurred with respect to
                     (bodily injury, sickness, disease or death
                     resulting from the hazardous properties of (bodily injury
                     nuclear material and arising out of the operation of a
                     nuclear facility by any person or organization.

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

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

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

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

              IV.    As used in this endorsement:

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

                     (a)    any nuclear reactor,

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

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

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

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

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

                     ( "property damage" includes all forms of radioactive
                     contamination of property.

                     ( includes all forms of radioactive contamination of
                     property.

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

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

                            (ii) statutory liability insurance required under
                     Chapter 90, General Laws of Massachusetts, until 90 days
                     following approval of the Broad Exclusion Provision by the
                     Governmental Authority having jurisdiction thereof.

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

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

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

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

                                                                     Page 2 of 2

<PAGE>

           NUCLEAR INCIDENT EXCLUSION CLAUSE - LIABILITY - REINSURANCE
                                     CANADA

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

2. Without in any way restricting the operation of paragraph 1 of this clause it
is agreed that for all purposes of this Agreement all the original liability
contracts of the Reinsured, whether new, renewal or replacement, of the
following classes, namely,

               Personal Liability,
               Farmers Liability,
               Storekeepers Liability,

which become effective on or after 31st December 1984, shall be deemed to
include, from their inception dates and thereafter, the following provision: --

       LIMITED EXCLUSION PROVISION

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

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

3. Without in any way restricting the operation of paragraph 1 of this clause it
is agreed that for all purposes of this Agreement all the original liability
contracts of the Reinsured, whether new, renewal or replacement, of any class
whatsoever (other than Personal Liability, Farmers Liability, Storekeepers
Liability or Automobile Liability contracts), which become effective on or after
31st December 1984, shall be deemed to include, from their inception dates and
thereafter, the following provision: --

       BROAD EXCLUSION PROVISION

       It is agreed that this Policy does not apply:

       (a)    to liability imposed by or arising under the Nuclear Liability
              Act; or

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

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

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

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

                                                                     Page 1 of 2
<PAGE>

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

As used in this Policy:

              (I)    The term "nuclear energy hazard" means the radioactive,
                     toxic, explosive or other hazardous properties of
                     radioactive material;

              (II)   The term "radioactive material" means uranium, thorium,
                     plutonium, neptunium, their respective derivatives and
                     compounds, radioactive isotopes of other elements and any
                     other substances that the Atomic Energy Control Board may,
                     by regulation, designate as being prescribed substances
                     capable of releasing atomic energy, or as being requisite
                     for the production, use or application of atomic energy;

              (III)  The term "nuclear facility" means:

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

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

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

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

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

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

              (V)    With respect to property, loss of use of such property
                     shall be deemed to be property damage.

N.M.A. 1979

                                                                     Page 2 of 2

<PAGE>

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

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

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

       (I)    All PROPERTY on the site of a nuclear power station. NUCLEAR
              REACTORS, reactor buildings and plant and equipment therein on any
              site other than a nuclear power station.

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

              (a)    The generation of nuclear energy; or

              (b)    The PRODUCTION, USE OR STORAGE OF NUCLEAR MATERIAL.

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

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

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

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

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

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

However, the above exemption shall not extend to:-

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

              (a)    NUCLEAR MATERIAL;

              (b)    Any PROPERTY in the HIGH RADIOACTIVITY ZONE OR AREA of any
                     NUCLEAR INSTALLATION as from the introduction of NUCLEAR
                     MATERIAL or - for reactor installations - as from fuel
                     loading or first criticality where so agreed with the
                     relevant local Nuclear Insurance Pool and/or Association.

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

              -      Fire, lightning, explosion;

              -      Earthquake;

              -      Aircraft and other aerial devices or articles dropped
                     therefrom;

              -      Irradiation and radioactive contamination;

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

              in respect of any other PROPERTY not specified in (1) above which
              directly involves the PRODUCTION, USE OR STORAGE OF NUCLEAR
              MATERIAL as from the introduction of NUCLEAR MATERIAL into such
              PROPERTY.

                                                                     Page 1 of 2
<PAGE>

DEFINITIONS:

     "NUCLEAR MATERIAL" means:-

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

       (ii)   RADIOACTIVE PRODUCTS OR WASTE.

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

     "NUCLEAR INSTALLATION" means:-

       (i)    Any NUCLEAR REACTOR;

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

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

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

     "PRODUCTION, USE OR STORAGE OF NUCLEAR MATERIAL" means the production,
     manufacture, enrichment, conditioning, processing, reprocessing, use,
     storage, handling and disposal of NUCLEAR MATERIAL.

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

     "HIGH RADIOACTIVITY ZONE OR AREA" means:-

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

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

N.M.A. 1975(a)

                                                                     Page 2 of 2

<PAGE>

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

                 GENERAL LIABILITY POLLUTION EXCLUSION APPENDIX

In accordance with the provisions of Article IV - Exclusions, this exclusion
applies:

1.    To bodily injury or property damage arising out of the actual, alleged or
      threatened discharge, dispersal, release or escape of pollutants:

              a. at or from premises owned, rented or occupied by a named
              insured;

              b. at or from any site or location used by or for a named insured
              or others for the handling, storage, disposal, processing or
              treatment of waste;

              c. which are at any time transported, handled, stored, treated,
              disposed of, or processed as waste by or for a named insured or
              any person or organization for whom a named insured may be legally
              responsible; or

              d. at or from any site or location on which a named insured or any
              contractors or subcontractors working directly or indirectly on
              behalf of a named insured are performing operations;

              i.     if the pollutants are brought on or to the site or location
                     in connection with such operations; or

              ii.    if the operations are to test for, monitor, clean up,
                     remove, contain, treat, detoxify, or neutralize the
                     pollutants.

2.     To any loss, cost or expense arising out of any governmental direction or
       request that a named insured test for, monitor, clean up, remove,
       contain, treat, detoxify or neutralize pollutants.

Pollutants means any solid, liquid, gaseous or thermal irritant or contaminant,
including smoke, vapor, soot, fumes, acids, alkalis, chemicals and waste. Waste
includes materials to be recycled, reconditioned or reclaimed.

Subparagraphs (a) and (d)(i) of paragraph (1) do not apply to bodily injury or
property damage caused by heat, smoke or fumes from a hostile fire. As used in
this exclusion, a hostile fire means one which becomes uncontrollable or breaks
out from where it was intended to be.

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[E.W. BLANCH COMPANY LOGO]

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