Document:

Execution Copy

                              EMPLOYMENT AGREEMENT

          EMPLOYMENT AGREEMENT ("Agreement") dated as of July 18, 2007 between
Scottish Re Group Limited (the "Company") and George R. Zippel (the "Employee")
(together, the "Parties").

          WHEREAS, the Parties wish to establish the terms of Employee's
employment with the Company upon the terms and conditions set forth herein, and
all other agreements with respect to the subject matter hereof;

          Accordingly, the Parties agree as follows:

          1.   Employment and Acceptance. The Company shall employ the Employee,
and Employee shall accept employment, subject to the terms of this Agreement, on
July 30, 2007 (the "Effective Date").

          2.   Term. Subject to earlier termination pursuant to Section 5 of
the Agreement, this Agreement and the employment relationship hereunder shall
continue from the Effective Date until the second (2nd) anniversary of the
Effective Date and shall automatically renew for successive one (1) year
intervals thereafter unless either party shall have given at least sixty (60)
days advance written notice to the other that it does not wish to extend the
Term. As used in this Agreement, the "Term" shall refer to the period beginning
on the Effective Date and ending on the date the Employee's employment
terminates in accordance with this Section 2 or Section 5. In the event of the
Employee's termination of employment during the Term, the Company's obligation
to continue to pay all base salary, as adjusted, bonus and other benefits then
accrued shall terminate except as may be provided for in Section 5 of this
Agreement, or as otherwise required by law.

          3.   Duties and Positions.

               3.1  Positions. During the Term, the Employee shall serve as
President and Global Chief Executive Officer of the Company and shall report
solely and directly to the Board of Directors of the Company (the "Board"). The
Employee shall also serve during the Term in executive positions for one or more
of the Company's subsidiaries and affiliates for no additional consideration. As
of the Effective Date, the Company shall use its best efforts to cause the
Employee to be nominated for election to the Board.

               3.2  Duties. The Employee will have such authority and
responsibilities and will perform such executive duties as are customarily
performed by a President and Global Chief Executive Officer of a public company
of similar size in similar lines of business as the Company and its subsidiaries
as may be assigned to Employee by the Board. The Employee will devote all his
full working-time and attention to the performance of such duties and to the
promotion of the business and interests of the Company and its subsidiaries.
Nothing in this Agreement shall prevent the Employee from (i) devoting
reasonable time to charitable, community, industry or professional activities,
or (ii) participating in, or serving on, the governing body of any civic,
community or charitable organization with which the Employee may currently be or
hereafter become involved, provided such activities (A) do not materially
interfere with and are not inconsistent with Employee's performance of his
duties and obligations under this Agreement, (B) cannot reasonably be expected
to cause injury or harm to the business

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or reputation of the Company or any of
its subsidiaries and affiliates and (C) do not violate any provision of this
Agreement.

               3.3  Location. The Employee shall perform his full-time services
to the Company and its subsidiaries in the Company's Bermuda office; provided
that the Employee shall be required to travel as reasonably necessary to perform
his duties hereunder. The Employee shall establish residence in Bermuda as soon
as practicable following the Effective Date.

          4.   Compensation and Benefits by the Company. As compensation for all
services rendered pursuant to this Agreement, the Company shall provide the
Employee the following during the Term and thereafter as applicable:

               4.1  Base Salary. During the Term, the Company will pay to the
Employee an annual base salary of $900,000, payable in accordance with the
customary payroll practices of the Company ("Base Salary"). The Employee's Base
Salary shall be subject to review and may be increased (but not decreased) to an
amount determined at the discretion of the Board, or the compensation committee
thereof (which, thereafter, shall be his "Base Salary") after taking into
consideration the Employee's performance, the Company's performance, increases
in the cost of living and such other factors as the Board or the compensation
committee thereof in good faith deems relevant. Such review shall be conducted
no less frequently than once during each calendar year at the same time the
Company conducts its review of the compensation of the Company's other senior
executive officers.

               4.2  Bonuses. During the Term, the Employee shall be eligible to
receive an annual cash bonus ("Bonus") under a plan established by the Company
in the amount determined by the Board (or the compensation committee thereof)
based upon achievement of performance measures established by the Company, after
reasonable consultation with the Employee, and approved by the Board in its sole
discretion. The Employee's target bonus shall be seventy five percent (75%) of
Base Salary (the "Target Bonus"). Notwithstanding the foregoing, the Company
shall pay to the Employee a cash bonus with respect to the 2007 calendar year in
an amount equal to no less than the product of (i) $675,000 and (ii) the ratio
of (A) the number of days the Employee is employed during calendar year 2007 to
(B) 365 (the "2007 Bonus"). The Employee's Bonus (including the 2007 Bonus)
shall be payable at such times and in the manner consistent with the Company's
policies regarding compensation of executive employees. The Bonus with respect
to any calendar year shall be paid no earlier than January 1 and no later than
June 30 of the following calendar year.

               4.3  Participation in Employee Benefit Plans. The Employee shall
be entitled during the Term, if and to the extent eligible, to participate in
all of the applicable pension and welfare benefit plans and fringe benefits of
the Company, which may be available to other senior executives of the Company.
These plans shall include, without limitation, medical, prescription drug,
dental, vision, disability, life and accidental death insurance plans and
programs and a 401(k) plan to the extent, and on terms at least as favorable as,
such plans and programs are available to other senior executives of the Company.
The Company may at any time or from time to time amend, modify, suspend or
terminate any employee benefit plan, program or arrangement for any reason
without the Employee's consent if such amendment, modification, suspension or
termination is consistent with the amendment, modification, suspension or
termination for other executives of the Company. In each calendar year prior to

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the date the Employee's employment terminates due to Disability (as defined
below), the Employee shall be entitled to receive up to ninety (90) days of full
salary continuation in the event he is unable to perform his duties hereunder
without reasonable accommodation due to a physical or mental illness or injury.

               4.4  Equity Compensation. During the Term, the Employee shall be
eligible to participate in the 2007 Scottish Re Group Limited Stock Option Plan,
an equity incentive compensation plan established by the Company (the "Equity
Incentive Plan"), pursuant to the terms of the Equity Incentive Plan and any
applicable agreements thereunder as determined from time to time by the Board.
The Employee shall receive an initial grant of the option to purchase 1,250,000
ordinary shares of the Company (the "Initial Grant") pursuant to the terms of
the Equity Incentive Plan and any applicable agreements thereunder.
Notwithstanding the foregoing or the terms of the equity Incentive Plan, the
Employee's award agreement with respect to the Initial Grant shall provide that
if the Employee's employment is terminated by the Company without "Cause" (as
defined below), the Employee terminates his employment with "Good Reason" (as
defined below) or the Employee's employment with the Company terminates in
connection with the Company's determination not to extend or renew the Term
pursuant to Section 2, to the extent not previously forfeited, the unvested
portion of the Initial Grant, if any, shall become vested and exercisable, and
shall remain exercisable for a period of ninety (90) days following the date of
such termination of employment.

               4.5  Relocation. The Company shall provide the Employee (on a
fully grossed up tax neutral basis), directly or through reimbursement (as
determined in the Company's reasonable discretion) the following relocation,
housing and transportation benefits: (a) a suitable apartment or comparable
residence in Bermuda and other reasonable costs associated with such residence,
including local ground transportation, during the Term; (b) through the end of
the 2008 calendar year, a suitable apartment or comparable residence for the
Employee in the Charlotte, NC area when the Employee is required to perform
services for the Company in its Charlotte, NC location; (c) through the end of
the 2008 calendar year, pursuant to the Company's normal travel expense policy,
weekly air travel between the Employee's home in Lynchburg, VA and the Company
locations, and (d) all reasonable costs associated with relocating Employee and
his family and transporting Employee's household goods to either Bermuda or
Charlotte, NC. Any such reimbursements and the tax gross-up payments for any
reimbursement or in-kind benefit shall be made no later than thirty (30)
business days following presentation to the Company of the bill or invoice for
any such benefit. In no event will any reimbursement or in-kind benefit in any
calendar year affect any reimbursement or in-kind benefit made in any subsequent
calendar year In no event will any tax gross-up payment be made later than the
Employee's taxable year next following the taxable year in which the Employee
remits the related taxes.

               4.6  Retention Bonus. Subject to the Employee's continued
employment with the Company through the date such payment is made, in the event
of a Change in Control (as defined below), the Company shall pay the Employee a
lump-sum payment equal to (x) the Employee's then current Base Salary plus (y)
the Employee's Target Bonus for the year in which the Change in Control occurs
(the "Retention Bonus"), payable within ten (10) days following the first
anniversary of the Change in Control.

               "Change of Control" shall mean (1) any person, other than
Cerberus Capital Management, L.P. ("Cerberus") or Mass Mutual Capital Partners
LLC ("Mass Mutual") or their

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respective affiliates, becomes the beneficial owner, directly or indirectly, of
fifty percent (50%) or more of the combined voting power of the then issued and
outstanding equity securities of the Company, or (2) the sale, transfer or other
disposition of all or substantially all of the business and assets of the
Company, whether by sale of assets, merger or otherwise (determined on a
consolidated basis) to another person other than a transaction in which the
survivor or transferee is a person controlled, directly or indirectly, by
Cerberus or Mass Mutual Capital or their affiliates.

               4.7  Expense Reimbursement. During the Term, the Employee shall
be entitled to receive reimbursement for all appropriate business expenses
incurred by him in connection with his duties under this Agreement in accordance
with the policies of the Company applicable to other executive employees as in
effect from time to time.

               4.8  Professional Fees. The Company shall pay or reimburse the
Employee (on a fully grossed up tax neutral basis) for the Employee's reasonable
attorneys' fees and costs (not to exceed $10,000) incurred during 2007 in
connection with advice pertaining to and negotiation of this Agreement upon
presentation to the Company of bills or invoices for such services and such
other supporting information as the Company may reasonably require. Such payment
or reimbursement and the corresponding gross-up payment shall be made no later
than fifteen (15) business days following presentation to the Company of the
bill or invoice for such services. In no event will the payment or reimbursement
affect any other reimbursement or in-kind benefit made in any subsequent
calendar year or be made later than December 31, 2007. In no event will the tax
gross-up payment be made later than the Employee's taxable year next following
the taxable year in which the Employee remits the related taxes.

          5.   Termination of Employment.

               5.1  By the Company for Cause or by the Employee Without Good
Reason. If: (i) the Company terminates the Employee's employment with the
Company for Cause (as defined below); or (ii) the Employee terminates his
employment without Good Reason (as defined below), provided that the Employee
shall be required to give the Company at least forty-five (45) days prior
written notice of such termination, the Employee or the Employee's legal
representatives (as appropriate), shall be entitled to receive the following
(the "Accrued Benefits"):

                    (a) the Employee's accrued but unpaid Base Salary and
benefits set forth in Sections 4.1 and 4.3, if any, to the date of termination;

                    (b) the unpaid portion of the Bonus, if any, relating to the
calendar year prior to the calendar year of the Employee's death, Disability,
termination by the Company for Cause or by the Employee without Good Reason,
payable in accordance with Section 4.2;

                    (c) in accordance with the Company's policies, any accrued
but unused vacation time or paid time off; and

                    (d) expenses reimbursable under Section 4.7 incurred but not
yet reimbursed to the Employee to the date of termination.

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          For the purposes of this Agreement, "Cause" means, as determined by a
majority of the Board, in the Board's reasonable business judgment acting in
good faith and engaging in fair dealing with the Employee, with respect to
conduct during the Employee's employment with the Company, whether or not
committed during the Term, (i) commission of a felony by Employee; (ii)
intentional acts of dishonesty by Employee resulting or intending to result in
personal gain or enrichment at the expense of the Company or its subsidiaries;
(iii) Employee's breach of his material obligations under this Agreement; (iv)
conduct by Employee in connection with his duties hereunder that is fraudulent
or grossly negligent or that the Employee knew or reasonably should have known
to be unlawful, provided that any action taken by the Employee on the advice of
the Company's General Counsel (or his designee) shall not be treated a unlawful
for purposes of this clause (iv); (v) engaging in personal conduct by Employee
(including but not limited to employee harassment or discrimination, the use or
possession at work of any illegal controlled substance) which seriously
discredits or damages the Company or its subsidiaries; (vi) contravention of
specific lawful direction of the Board or continuing inattention to or
continuing failure to attempt, in good faith, to perform the duties to be
performed by Employee under the terms of Section 3.2 of this Agreement or (vii)
breach of the Employee's covenants set forth in Section 6 below before
termination of employment; provided, that, the Employee shall have fifteen (15)
days after notice from the Company, which notice shall set forth in reasonable
detail a description of the deficiency determined by the Board to constitute
Cause, to cure the deficiency leading to the Cause determination (except with
respect to (i) above), if curable. A termination for "Cause" shall be effective
immediately (or on such other date set forth by the Company), following the
Employee's failure to timely cure such conduct, if curable.

          For the purposes of this Agreement, "Good Reason" means, without the
Employee's consent, (i) a material adverse reduction in Employee's authority,
responsibilities or duties; (ii) a reduction in the Employee's Base Salary or
bonus opportunity; provided that, the Company may at any time or from time to
time amend, modify, suspend or terminate any bonus, incentive compensation or
other benefit plan or program provided to the Employee for any reason and
without the Employee's consent if such modification, suspension or termination
(x) is a result of the underperformance of the Employee or the Company under its
business plan, and (y) is consistent with an "across the board" reduction for
all similar employees of the Company, and, in each case, is undertaken in the
Board's reasonable business judgment acting in good faith and engaging in fair
dealing with the Employee; or (iii) the Company's material breach of the
Agreement; provided that a suspension of the Employee and the requirement that
the Employee not report to work shall not constitute "Good Reason" if the
Employee continues to receive the compensation and benefits required by this
Agreement. The Company shall have thirty (30) days after receipt of notice from
the Employee in writing specifying the deficiency to cure the deficiency that
would result in Good Reason.

               5.2  By the Company Without Cause; by the Employee with Good
Reason; or Following the Company's Decision Not to Renew the Term. If, (1)
during the Term: (i) the Company terminates Employee's employment without Cause
(which may be done at any time without prior notice) or (ii) the Employee
terminates his employment for Good Reason (within ninety (90) days following the
initial condition giving rise to such Good Reason), upon at least thirty (30)
days prior written notice, or (2) the Employee's employment with the Company
terminates in connection with the Company's determination not to extend or renew
the Term pursuant to Section 2, upon execution without revocation of a valid
release agreement in a form

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reasonably acceptable to the Parties and not in violation of any applicable laws
(the "Release"), the Employee shall be entitled to receive:

                    (a) the Accrued Benefits;

                    (b) an amount equal to (x) the Employee's annual Base Salary
as of the date of termination plus (y) the Employee's Target Bonus for the year
of termination (the "Severance Amount"), payable in a lump sum, less standard
income and payroll tax withholding and other authorized deductions within
fifteen (15) days following the effective date of the Release;

                    (c) continued payment of the Employee's Base Salary for the
remainder of the Term, payable in accordance with the customary payroll
practices of the Company, provided that each payroll payment shall be treated as
a separate payment for purposes of Section 409A of the Internal Revenue Code of
1986, as amended, and the regulations promulgated thereunder (the "Code");

                    (d) if the Employee elects continuing group coverage
pursuant to the Consolidated Omnibus Budget Reconciliation Act of 1985, as
amended ("COBRA"), reimbursement of the cost of such continuation coverage(on a
fully grossed up tax neutral basis) for the earlier of (x) twelve (12) months or
(y) such earlier date that the Employee is covered under another group health
plan, subject to the terms of the plans and applicable law;

                    (e) if such termination of employment occurs prior to the
first (1st) anniversary of a Change in Control, an amount equal to the Retention
Bonus, payable pursuant to Section 4.6 above; and

                    (f) the Company shall pay or reimburse the Employee (in
either case, on a fully grossed up tax neutral basis in accordance with the
terms of Section 4.5) for the Employee's reasonable costs (not to exceed
$50,000) associated with relocating the Employee and his family and transporting
the Employee's household goods from Bermuda or Charlotte, NC to the Employee's
future principal residence.

               The Company shall have no obligation to provide the benefits set
forth above in the event that Employee breaches the provisions of Section 6.

               5.3  Due to Death or Disability. If: (i) the Employee's
employment terminates due to his death; or (ii) the Company terminates the
Employee's employment with the Company due to the Employee's Disability (as
defined below), in addition to Accrued Benefits, the Employee or the Employee's
spouse, dependents or legal representatives (as appropriate), shall be entitled
to receive (A) a lump-sum equal to the prorated portion of the Employee's Target
Bonus for the year of the Employee's death or termination of employment due to
Disability, less standard income and payroll tax withholding and other
authorized deductions, payable within thirty (30) days following the date the
Employee's employment terminates, and (B) if the Employee, or his spouse or
dependants (as appropriate) elects continuing group coverage pursuant to COBRA,
reimbursement of the cost of such continuation coverage (on a fully grossed up
tax neutral basis) for the earlier of (x) twelve (12) months or (y) such earlier

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date that the Employee, his spouse or dependents, as the case may be, is covered
under another group health plan, subject in all cases to the terms of the plans
and applicable law.

          For the purposes of this Agreement, "Disability" means a determination
by the Company in accordance with applicable law that as a result of a physical
or mental injury or illness, the Employee is unable to perform the essential
functions of his job with or without reasonable accommodation for a period of
(i) ninety (90) consecutive days; or (ii) one hundred eighty (180) days in any
one (1) year period.

               5.4  No Mitigation; No Offset. The Employee shall be under no
obligation to seek other employment after his termination of employment with the
Company and the obligations of the Company to the Employee which arise upon the
termination of his employment pursuant to this Section 5 shall not be subject to
mitigation or offset.

               5.5  Removal from any Boards and Position. If the Employee's
employment is terminated for any reason under this Agreement, he shall be deemed
to resign (i) if a member, from the Board or board of directors of any
subsidiary of the Company or any other board to which he has been appointed or
nominated by or on behalf of the Company and (ii) from any position with the
Company or any subsidiary of the Company, including, but not limited to, as an
officer of the Company and any of its subsidiaries.

               5.6  Nondisparagement. The Employee agrees that he will not at
any time (whether during or after the Term) publish or communicate to any person
or entity any Disparaging (as defined below) remarks, comments or statements
concerning the Company, Cerberus, Mass Mutual their parents, subsidiaries and
affiliates, and their respective present and former members, partners,
directors, officers, shareholders, employees, agents, attorneys, successors and
assigns. "Disparaging" remarks, comments or statements are those that impugn the
character, honesty, integrity or morality or business acumen or abilities in
connection with any aspect of the operation of business of the individual or
entity being disparaged.

               5.7  Certain Additional Payments by the Company.

                    (a) Anything in this Agreement to the contrary
notwithstanding and except as set forth below, in the event it shall be
determined that any payment or distribution by the Company to, or for the
benefit of the Employee (whether paid or payable or distributed or distributable
pursuant to the terms of this Agreement or otherwise, but determined without
regard to any additional payments required under this Section 5.7) (a "Payment")
would be subject to the excise tax imposed by Section 4999 of the Code, or any
interest or penalties are incurred by the Employee with respect to such excise
tax (such excise tax, together with any such interest and penalties, are
hereinafter collectively referred to as the "Excise Tax"), then the Employee
shall be entitled to receive an additional payment (a "Gross-Up Payment") in an
amount such that after payment by the Employee of all taxes (including any
interest or penalties imposed with respect to such taxes), including, without
limitation, any income taxes (and any interest and penalties imposed with
respect thereto) and Excise Tax imposed upon the Gross-Up Payment, the Employee
retains an amount of the Gross-Up Payment equal to the Excise Tax imposed upon
the Payments.

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                    (b) Notwithstanding the foregoing provisions of Section
5.7(a), if the Parachute Value (as defined below) of all Payments does not
exceed 110% of the Employee's Safe Harbor Amount (as defined below), then the
Company shall not pay the Employee a Gross-Up Payment, and the Payments due
under this Agreement shall be reduced so that the Parachute Value of all
Payments, in the aggregate, equals the Safe Harbor Amount; provided, that if
even after all Payments due under this Agreement are reduced to zero, the
Parachute Value of all Payments would still exceed the Safe Harbor Amount, then
no reduction of any Payments shall be made and the Gross -Up Payment shall be
made. The reduction of the Payments due hereunder, if applicable, shall be made
as designated by the Employee, and in any event shall be made in such a manner
as to maximize the economic present value of all Payments actually made to the
Employee, determined by the Accounting Firm (as defined in Section 5.7(c) below)
as of the date of the change of control for purposes of Section 280G of the Code
using the discount rate required by Section 280G(d)(4) of the Code. For purposes
of this Section 5.7, the "Parachute Value" of a Payment means the present value
as of the date of the change of control for purposes of Section 280G of the Code
of the portion of such Payment that constitutes a "parachute payment" under
Section 280G(b)(2) of the Code, as determined by the Accounting Firm for
purposes of determining whether and to what extent the Excise Tax will apply to
such Payment. For purposes of this Section 5.7, Executive's "Safe Harbor Amount"
means one dollar less than three times the Employee's "base amount" within the
meaning of Section 280G(b)(3) of the Code.

                    (c) All determinations required to be made under this
Section 5.7, including whether and when a Gross-Up Payment is required and the
amount of such Gross-Up Payment and the assumptions to be used in arriving at
such determination, shall be made by the Company's independent auditing firm or
such other certified public accounting firm as may be designated by the Employee
(the "Accounting Firm") which shall provide detailed supporting calculations
both to the Company and the Employee within fifteen (15) business days after
the receipt of notice from the Employee that there has been a Payment, or such
earlier time as is requested by the Company. In the event that the Accounting
Firm is serving as accountant or auditor for the individual, entity or group
effecting the Change in Control, the Employee may appoint another nationally
recognized accounting firm to make the determinations required hereunder (which
accounting firm shall then be referred to as the Accounting Firm hereunder). All
fees and expenses of the Accounting Firm shall be borne solely by the Company.
Any Gross-Up Payment, as determined pursuant to this Section 5.7, shall-be paid
by the Company to the Employee or to the Internal Revenue Service on the
Employee's behalf within five (5) business days after the receipt of the
Accounting Firm's determination, but in no event later than December 31 of the
year after the year in which the Employee remits the Excise Tax to the relevant
taxing authorities. Any determination by the Accounting Firm shall be binding
upon the Company and the Employee. As a result of the uncertainty in the
application of Section 4999 of the Code at the time of the initial determination
by the Accounting Firm hereunder, it is possible that Gross-Up Payments which
will not have been made by the Company should have been made ("Underpayment"),
consistent with the calculations required to be made hereunder. In the event
that the Employee thereafter is required to make a payment of any Excise

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Tax, the Accounting Firm shall determine the amount of the Underpayment that has
occurred and any such Underpayment shall be promptly paid by the Company to or
for the benefit of the Employee, but no later than December 31 of the year after
the year in which the Employee remits the Excise Tax to the relevant taxing
authorities.

          6.   Restrictions and Obligations of the Employee.

               6.1  Confidentiality. (a) During the course of the Employee's
employment by the Company, the Employee has had and will have access to certain
trade secrets and confidential information relating to the Company and its
subsidiaries (the "Protected Parties") which is not readily available from
sources outside the Company. The confidential and proprietary information and,
in any material respect, trade secrets of the Protected Parties are among their
most valuable assets, including but not limited to, their customer, supplier and
vendor lists, databases, competitive strategies, computer programs, frameworks,
or models, their marketing programs, their sales, financial, marketing, training
and technical information, their product development (and proprietary product
data) and any other information, whether communicated orally, electronically, in
writing or in other tangible forms concerning how the Protected Parties create,
develop, acquire or maintain their products and marketing plans, target their
potential customers and operate their retail and other businesses. The Protected
Parties invested, and continue to invest, considerable amounts of time and money
in their process, technology, know-how, obtaining and developing the goodwill of
their customers, their other external relationships, their data systems and data
bases, and all the information described above (hereinafter collectively
referred to as "Confidential Information"), and any misappropriation or
unauthorized disclosure of Confidential Information in any form would
irreparably harm the Protected Parties. The Employee acknowledges that such
Confidential Information constitutes valuable, highly confidential, special and
unique property of the Protected Parties. The Employee shall hold in a fiduciary
capacity for the benefit of the Protected Parties all Confidential Information
relating to the Protected Parties and their businesses, which shall have been
obtained by the Employee during the Employee's employment by the Company or its
subsidiaries and which shall not be or become public knowledge (other than by
acts by the Employee or representatives of the Employee in violation of this
Agreement). Except as required by law (including, but not limited to, pursuant
to a lawful subpoena) or an order of a court or governmental agency with
jurisdiction, the Employee shall not, during the period the Employee is employed
by the Company or its subsidiaries or at any time thereafter, disclose any
Confidential Information, directly or indirectly, to any person or entity for
any reason or purpose whatsoever, nor shall the Employee use it in any way,
except in the course of the Employee's employment with, and for the benefit of,
the Protected Parties or to enforce any rights or defend any claims hereunder or
under any other agreement to which the Employee is a party, provided that such
disclosure is relevant to the enforcement of such rights or defense of such
claims and is only disclosed in the formal proceedings related thereto. The
Employee shall take all reasonable steps to safeguard the Confidential
Information and to protect it against disclosure, misuse, espionage, loss and
theft. The Employee understands and agrees that the Employee shall acquire no
rights to any such Confidential Information.

                    (b) All Company files, records, documents, drawings,
specifications, data, computer programs, evaluation mechanisms and analytics and
similar items relating thereto or to the Business (for the purposes of this
Agreement, "Business" shall be as defined in Section 6.3 hereof), as well as all
customer lists, specific customer information, compilations of product research
and marketing techniques of the Company and its subsidiaries, whether prepared
by the

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Employee or otherwise coming into the Employee's possession, shall remain the
exclusive property of the Company and its subsidiaries, and the Employee shall
not remove any such items from the premises of the Company and its subsidiaries,
except in furtherance of the Employee's duties under this Agreement.

                    (c) It is understood that while employed by the Company or
its subsidiaries, the Employee will promptly disclose to it, and assign to it
the Employee's interest in any invention, improvement or discovery made or
conceived by the Employee, either alone or jointly with others, which arises out
of the Employee's employment. At the Company's request and expense, the Employee
will assist the Company and its subsidiaries during the period of the Employee's
employment by the Company or its subsidiaries and thereafter in connection with
any controversy or legal proceeding relating to such invention, improvement or
discovery and in obtaining domestic and foreign patent or other protection
covering the same.

                    (d) As requested by the Company and at the Company's
expense, from time to time and upon the termination of the Employee's employment
with the Company for any reason, the Employee will promptly deliver to the
Company and its subsidiaries all copies and embodiments, in whatever form, of
all Confidential Information in the Employee's possession or within his control
(including, but not limited to, memoranda, records, notes, plans, photographs,
manuals, notebooks, documentation, program listings, flow charts, magnetic
media, disks, diskettes, tapes and all other materials containing any
Confidential Information) irrespective of the location or form of such material.
If requested by the Company, the Employee will provide the Company with written
confirmation that all such materials have been delivered to the Company as
provided herein.

               6.2  Non-Solicitation or Hire. During the Term and for a period
of eighteen months (18) months following the termination of the Employee's
employment for any reason, the Employee shall not directly or indirectly solicit
or attempt to solicit or induce, directly or indirectly, (a) any party who is a
customer of the Company or its subsidiaries, or who was a customer of the
Company or its subsidiaries at any time during the twelve (12) month period
immediately prior to the date the Employee's employment terminates, for the
purpose of marketing, selling or providing to any such party any services or
products offered by or available from the Company or its subsidiaries (provided
that if the Employee intends to solicit any such party for any other purpose, he
shall notify the Company of such intention and receive prior written approval
from the Company, which approval shall not unreasonably be withheld), (b) any
supplier to or customer or client of the Company or any subsidiary to terminate,
reduce or alter negatively its relationship with the Company or any subsidiary
or in any manner interfere with any agreement or contract between the Company or
any subsidiary and such supplier, customer or client or (c) any employee of the
Company or any of its subsidiaries or any person who was an employee of the
Company or any of its subsidiaries during the twelve (12) month period
immediately prior to the date the Employee's employment terminates to terminate
such employee's employment relationship with the Protected Parties in order, in
either case, to enter into a similar relationship with the Employee, or any
other person or any entity in competition with the Business of the Company or
any of its subsidiaries.

               6.3  Non-Competition. During the Term and for a period of
eighteen (18) months following the termination of Employee's employment for any
reason, the Employee shall not, whether individually, as a director, manager,
member, stockholder, partner, owner, employee, consultant or agent of any
business, or in any other capacity, other than on

                                       10
<PAGE>

behalf of the Company or a subsidiary, organize, establish, own, operate,
manage, control, engage in, participate in, invest in, permit his name to be
used by, act as a consultant or advisor to, render services for (alone or in
association with any person, firm, corporation or business organization), or
otherwise assist any person or entity that engages in or owns, invests in,
operates, manages or controls any venture or enterprise which engages or
proposes to engage in any business conducted by the Company or any of its
subsidiaries on the date of the Employee's termination of employment or within
twelve (12) months of the Employee's termination of employment in the geographic
locations where the Company and its subsidiaries engage or propose to engage in
such business (the "Business"). Notwithstanding the foregoing, nothing in this
Agreement shall prevent the Employee from owning for passive investment purposes
not intended to circumvent this Agreement, less than five percent (5%) of the
publicly traded common equity securities of any company engaged in the Business
(so long as the Employee has no power to manage, operate, advise, consult with
or control the competing enterprise and no power, alone or in conjunction with
other affiliated parties, to select a director, manager, general partner, or
similar governing official of the competing enterprise other than in connection
with the normal and customary voting powers afforded the Employee in connection
with any permissible equity ownership).

               6.4  Property. The Employee acknowledges that all originals and
copies of materials, records and documents generated by him or coming into his
possession during his employment by the Company or its subsidiaries are the sole
property of the Company and its subsidiaries ("Company Property"). During the
Term, and at all times thereafter, the Employee shall not remove, or cause to be
removed, from the premises of the Company or its subsidiaries, copies of any
record, file, memorandum, document, computer related information or equipment,
or any other item relating to the business of the Company or its subsidiaries,
except in furtherance of his duties under the Agreement. When the Employee's
employment with the Company terminates, or upon request of the Company at any
time, the Employee shall promptly deliver to the Company all copies of Company
Property in his possession or control.

          7.   Remedies; Specific Performance. The Parties acknowledge and agree
that the Employee's breach or threatened breach of any of the restrictions set
forth in Section 6 will result in irreparable and continuing damage to the
Protected Parties for which there may be no adequate remedy at law and that the
Protected Parties shall be entitled to equitable relief, including specific
performance and injunctive relief as remedies for any such breach or threatened
or attempted breach. The Employee hereby consents to the grant of an injunction
(temporary or otherwise) against the Employee or the entry of any other court
order against the Employee prohibiting and enjoining him from violating, or
directing him to comply with any provision of Section 6. The Employee also
agrees that such remedies shall be in addition to any and all remedies,
including damages, available to the Protected Parties against him for such
breaches or threatened or attempted breaches. In addition, without limiting the
Protected Parties' remedies for any breach of any restriction on the Employee
set forth in Section 6, except as required by law, the Employee shall not be
entitled to any payments set forth in Section 5.2 hereof if the Employee has
breached the covenants applicable to the Employee contained in Section 6, the
Employee will immediately return to the Protected Parties any such payments
previously received under Section 5.2 upon such a breach, and, in the event of
such breach, the Protected Parties will have no obligation to pay any of the
amounts that remain payable by the Company under Section 5.2.

                                       11
<PAGE>

          8.   Indemnification. The Company shall indemnify the Employee from
and against any threatened, pending or completed action, suit or proceeding,
whether civil, criminal, administrative or investigative (other than an action
by, or in the right of the Company) brought to impose a liability or penalty on
the Employee in his capacity of director, officer, employee or agent of the
Company or of any other corporation or entity which he serves as such at the
request of the Company, against judgments, fines, amounts paid in settlement and
expenses, including attorneys' fees actually and reasonably incurred as a result
of such action, suit or proceeding, or any appeal thereof, and provide for the
coverage of the Employee under any applicable directors and officers liability
insurance policy maintained by the Company, to the same extent and on the same
terms that the Company provides such indemnification to officers and directors
of the Company with respect to occurrences while Employee is or was an officer
or director of the Company, to the maximum extent permitted by applicable law.

          9.  Other Provisions.

               9.1  Notices. Any notice or other communication required or which
may be given hereunder shall be in writing and shall be delivered personally,
telegraphed, telexed, sent by facsimile transmission or sent by certified,
registered or express mail, postage prepaid or overnight mail and shall be
deemed given when so delivered personally, telegraphed, telexed, or sent by
facsimile transmission or, if mailed, four (4) days after the date of mailing or
one (1) day after overnight mail, as follows:

                    (a) If the Company, to:

                        13840 Ballantyne Corporate Place,
                        Suite 500
                        Charlotte, NC 28277
                        Attention: General Counsel
                        Telephone:
                        Fax:

                    (b) If the Employee, to the Employee's home address
reflected in the Company's records.

               9.2  Entire Agreement. This Agreement contains the entire
agreement between the Parties with respect to the subject matter hereof and
supersedes all prior agreements, written or oral, with respect thereto.

               9.3  Representations and Warranties.

                    (a) The Employee represents and warrants that he is not a
party to or subject to any restrictive covenants, legal restrictions or other
agreements in favor of any entity or person which would in any way preclude,
inhibit, impair or limit the Employee's ability to perform his obligations under
this Agreement, including, but not limited to, non-competition agreements,
non-solicitation agreements or confidentiality agreements.

                    (b) The Company represents and warrants that this Agreement
has been authorized by all necessary corporate action and is a valid and binding
agreement of the Company enforceable against it in accordance with its terms.

                                       12
<PAGE>

               9.4  Waiver and Amendments. This Agreement may be amended,
modified, superseded, canceled, renewed or extended, and the terms and
conditions hereof may be waived, only by a written instrument signed by the
Parties or, in the case of a waiver, by the party waiving compliance. No delay
on the part of any party in exercising any right, power or privilege hereunder
shall operate as a waiver thereof, nor shall any waiver on the part of any
right, power or privilege hereunder, nor any single or partial exercise of any
right, power or privilege hereunder, preclude any other or further exercise
thereof or the exercise of any other right, power or privilege hereunder.

               9.5  Governing Law, Dispute Resolution and Venue.

                    (a) This Agreement shall be governed and construed in
accordance with the laws of the State of New York applicable to agreements made
and not to be performed entirely within such state, without regard to conflicts
of laws principles.

                    (b) The parties agree irrevocably to submit to the exclusive
jurisdiction of the federal courts or, if no federal jurisdiction exists, the
state courts, located in the City of New York, Borough of Manhattan, for the
purposes of any suit, action or other proceeding brought by any party arising
out of any breach of any of the provisions of this Agreement and hereby waive,
and agree not to assert by way of motion, as a defense or otherwise, in any such
suit, action, or proceeding, any claim that it is not personally subject to the
jurisdiction of the above-named courts, that the suit, action or proceeding is
brought in an inconvenient forum, that the venue of the suit, action or
proceeding is improper, or that the provisions of this Agreement may not be
enforced in or by such courts. In addition, the parties agree to waive trial by
jury.

               9.6  Assignability by the Company and the Employee. This
Agreement, and the rights and obligations hereunder, may not be assigned by the
Company or the Employee without written consent signed by the other party;
provided that this Agreement shall be binding upon any successor that continues
the business of the Company, and that the Company shall require any such
successor shall assume this agreement, whether expressly or by operation of law.

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

               9.8  Headings. The headings in this Agreement are for convenience
of reference only and shall not limit or otherwise affect the meaning of terms
contained herein.

               9.9  Severability. If any term, provision, covenant or
restriction of this Agreement, or any part thereof, is held by a court of
competent jurisdiction of any foreign, federal, state, county or local
government or any other governmental, regulatory or administrative agency or
authority to be invalid, void, unenforceable or against public policy for any
reason, the remainder of the terms, provisions, covenants and restrictions of
this Agreement shall remain in full force and effect and shall in no way be
affected or impaired or invalidated. The Employee acknowledges that the
restrictive covenants contained in Section 6 are a condition of this Agreement
and are reasonable and valid in temporal scope and in all other respects.

                                       13
<PAGE>

               9.10 Judicial Modification. If any court determines that any of
the covenants in Section 6, or any part of any of them, is invalid or
unenforceable, the remainder of such covenants and parts thereof shall not
thereby be affected and shall be given full effect, without regard to the
invalid portion. If any court determines that any of such covenants, or any part
thereof, is invalid or unenforceable because of the geographic or temporal scope
of such provision, such court shall reduce such scope to the minimum extent
necessary to make such covenants valid and enforceable.

               9.11 Tax Withholding. The Company or other payor is authorized to
withhold from any benefit provided or payment due hereunder, the amount of
withholding taxes due any federal, state or local authority in respect of such
benefit or payment and to take such other action as may be necessary in the
opinion of the Board to satisfy all obligations for the payment of such
withholding taxes.

               9.12 Compliance with Law.

                    (a) This Agreement is intended to comply with the
requirements of Section 409A of the Code. To the extent that any provision in
this Agreement is ambiguous as to its compliance with Section 409A, the
provision shall be read in such a manner so that all payments under Section 5
shall comply with Section 409A. The Company shall make reasonable best efforts
to make all payments hereunder in compliance with this Agreement and Section
409A of the Code and to minimize any adverse consequences of any such payments
to the Employee as a result of Section 409A of the Code.

                    (b) Notwithstanding anything in this Agreement to the
contrary, if any amount or benefit that would constitute non-exempt "deferred
compensation" for purposes of Section 409A of the "Code would otherwise be
payable or distributable under this Agreement by reason of the Employee's
separation from service during a period in which he is a Specified Employee (as
defined below), then, subject to any permissible acceleration of payment by the
Company under Treas. Reg. Section 1.409A-3(j)(4)(ii) (domestic relations order),
(j)(4)(iii) (conflicts of interest), or (j)(4)(vi) (payment of employment
taxes):

                        (i)   if the payment or distribution is payable in a
                              lump sum, the maximum amount that can be paid to
                              the Employee without becoming subject to or
                              violating Section 409A of the Code shall be paid
                              to the Employee and the Employee's right to
                              receive payment or distribution of any additional
                              non-exempt deferred compensation will be delayed
                              until the earlier of the Employee's death or the
                              first day of the seventh month following the
                              Employee's separation from service; and

                        (ii)  if the payment or distribution is payable over
                              time, the amount of such non-exempt deferred
                              compensation that would otherwise be payable
                              during the six-month period immediately following
                              the Employee's separation from service will be
                              accumulated and the Employee's right to receive
                              payment or distribution of such accumulated amount
                              will be delayed until the earlier of the
                              Employee's death or the first day of the seventh
                              month following the Employee's separation from
                              service, whereupon the accumulated amount will be
                              paid or distributed to the Employee and the normal
                              payment or distribution schedule for any remaining
                              payments or distributions will resume.

                                       14
<PAGE>

                        (iii) in the case of any such delayed payment, the
                              Company shall pay interest on the deferred amount
                              at 100% of the short-term applicable federal rate
                              as in effect for the month in which the
                              termination of employment occurred.

          For purposes of this Agreement, the term "Specified Employee" has the
meaning given such term in Section 409A of the Code, provided, however, that,
the Company's Specified Employees and its application of the six-month delay
rule shall be determined in accordance with rules adopted by the Board of
Directors, which shall be applied consistently with respect to all nonqualified
deferred compensation arrangements of the Company, including this Agreement.

                                       15
<PAGE>

          IN WITNESS WHEREOF, the Parties hereto, intending to be legally bound
hereby, have executed this Agreement as of the day and year first above
mentioned.

                                     EMPLOYEE

                                     /s/ Geroge R. Zippel
                                     -------------------------------------------
                                     George R. Zippel

                                     SCOTTISH RE GROUP LIMITED

                                     By: /s/ Paul Goldean
                                         ---------------------------------------
                                         Name:  Paul Goldean
                                         Title: President & CEO

                                       16Execution Copy

                              EMPLOYMENT AGREEMENT

          EMPLOYMENT AGREEMENT ("Agreement") dated as of July 25, 2007 between
Scottish Holdings, Inc. (the "Company") and Michael Baumstein (the "Employee")
(together, the "Parties").

          WHEREAS, the Employee and the Company are parties to an employment
agreement dated March 15, 2004 (the "2004 Employment Agreement");

          WHEREAS, the Parties wish to establish the terms of Employee's
continued employment with the Company upon the terms and conditions set forth
herein which supersede the terms of the 2004 Employment Agreement, and all other
agreements with respect to the subject matter hereof;

          Accordingly, the Parties agree as follows:

               1.   Employment and Acceptance. The Company shall employ the
Employee, and Employee shall accept employment, subject to the terms of this
Agreement, effective as of May 7, 2007 (the "Effective Date").

               2.   Term. Subject to earlier termination pursuant to Section 5
of this Agreement, this Agreement and the employment relationship hereunder
shall continue from the Effective Date until the second anniversary of the
Effective Date (the "Initial Term") and shall renew for one (1) year intervals
thereafter (each, a "Renewal Term") unless either party shall have given at
least sixty (60) days advanced written notice to the other that it does not wish
to extend the Term. As used in this Agreement, the "Term" shall refer to the
Initial Term and any Renewal Term and shall, in all cases, terminate on the date
the Employee's employment terminates in accordance with this Section 2 or
Section 5. In the event of the Employee's termination of employment during the
Term, the Company's obligation to continue to pay all base salary, as adjusted,
bonus and other benefits then accrued shall terminate except as may be provided
for in Section 5 of this Agreement.

               3.   Duties and Title.

               3.1  Title. The Company shall employ the Employee to render
exclusive and full-time services to the Company and its subsidiaries. The
Employee shall serve in the capacity of Executive Vice President, Head of
Capital Markets and Group Treasurer, and shall report to the Chief Financial
Officer of Scottish Re Group Limited. The Employee shall also serve during the
Term in executive positions for one or more of the Company's subsidiaries and
affiliates for no additional consideration.

               3.2  Duties. The Employee will have such authority and
responsibilities and will perform such executive duties as are customarily
performed by an Executive Vice President, Head of Capital Markets and Group
Treasurer of a company in similar lines of business as the Company and its
subsidiaries or as may be assigned to Employee by the Chief Financial Officer of
Scottish Re Group Limited. The Employee will devote all his full working-time
and attention to the performance of such duties and to the promotion of the
business and interests of the Company and its subsidiaries.

<PAGE>

               3.3  Location. The Employee shall perform his full-time services
to the Company and its subsidiaries in the Company's Charlotte, NC office (the
"Location"); provided that the Employee shall be required to travel as necessary
to perform his duties hereunder.

               4.   Compensation and Benefits by the Company. As compensation
for all services rendered pursuant to this Agreement, the Company shall provide
the Employee the following during the Term:

               4.1  Base Salary. During the Term, the Company will pay to the
Employee an annual base salary of $400,000, payable in accordance with the
customary payroll practices of the Company. The Employee's annual base salary
may be increased by the Company at its discretion and the Company agrees to
review such compensation not less frequently than annually during the Term. The
Base Salary as increased from time to time shall be referred to herein as "Base
Salary".

               4.2  Bonuses. During the Term, the Employee shall be eligible to
receive an annual bonus ("Bonus") under a plan established by the Company in the
amount determined by the Board of Directors of the Company (the "Board") based
upon achievement of performance measures established by the Company and approved
by the Board. The employee's target bonus shall be 75% of Base Salary.
Notwithstanding the foregoing, for the calendar years ending on December 31,
2007 and December 31, 2008, the Employee shall receive a Bonus of not less than
fifty percent (50%) of the Base Salary. The Employee's Bonus shall be payable at
such times and in the manner consistent with the Company's policies regarding
compensation of executive employees. In addition, the Company may pay such
additional bonuses as it may establish within its direction.

               4.3  Signing Bonus. As soon as practicable following the date
hereof, the Company will pay to the Employee a one-time, lump-sum payment in the
amount of $70,000 (the "Signing Bonus").

               4.4  Participation in Employee Benefit Plans. The Employee shall
be entitled during the Term, if and to the extent eligible, to participate in
all of the applicable benefit plans of the Company, which may be available to
other senior executives of the Company. The Company may at any time or from time
to time amend, modify, suspend or terminate any employee benefit plan, program
or arrangement for any reason without the Employee's consent if such amendment,
modification, suspension or termination is consistent with the amendment,
modification, suspension or termination for other executives of the Company.
Notwithstanding the foregoing, the Employee will continue to participate in
and/or receive benefits under (x) the Company's Exec-U-Care plan (the
"Exec-U-Care Plan") and (y) the Scottish Holdings, Inc. Deferred Compensation
Plan (the "Deferred Compensation Plan") (or other comparable benefit plans
sponsored by the Company or an affiliate of the Company) to the same extent that
the Employee participated in or received benefits under such plans prior to the
Effective Date through the Term, subject to the terms of such plans and
applicable law. In the event the Company modifies, amends or terminates the
Deferred Compensation Plan or the Exec-U-Care Plan prior to the expiration of
the Term in a way that adversely affects the Employee's benefits under either
plan, the Company will pay the Employee compensation or provide the Employee
with benefits (as determined in the Company's discretion) through the

                                     - 2 -
<PAGE>

expiration of the Term comparable to the Employee's benefits and compensation
under such plans as of the Effective Date.

               4.5  Equity Compensation. The Company will grant Employee stock
options to purchase 225,000 ordinary shares of an affiliate of the Company
pursuant to the 2007 Scottish Re Group Limited Stock Option Plan, an equity
incentive compensation plan established by an affiliate of the Company (the
"Equity Incentive Plan"), pursuant to the terms of the Equity Incentive Plan and
any applicable agreements thereunder as determined from time to time by the
Board.

               4.6  Expense Reimbursement. During the Term, the Employee shall
be entitled to receive reimbursement for all appropriate business expenses
incurred by him in connection with his duties under this Agreement in accordance
with the policies of the Company as in effect from time to time.

               4.7  Club Dues and Expenses. During the Term, the Company hereby
agrees to reimburse Employee for club dues and expenses not to exceed $5,000 per
calendar year in accordance with the Company's policy regarding substantiation
of expenses.

               4.8  Vacation and Holidays. Employee shall be entitled to four
(4) weeks of paid vacation per annum, in accordance with the Company's vacation
policy.

               4.9  Legal Fees.

               (a)  The Company shall pay or reimburse the Employee for all
reasonable attorneys' fees and costs (not to exceed $10,000) incurred by the
Employee in connection with advice pertaining to and negotiation of this
Agreement upon presentation to the Company of bills for such services and such
other supporting information as the Company may reasonably require.

               (b)  If it should appear to Employee that the Company has failed
to comply with any of its obligations under this Agreement or in the event that
the Company or any other person takes or threatens to take any action to declare
this Agreement void or unenforceable, or institutes any litigation or other
action or proceeding designed to deny, or to recover from, Employee the benefits
provided or intended to be provided to Employee hereunder, the Company
irrevocably authorizes Employee from time to time to retain counsel of
Employee's choice at the expense of the Company as hereafter provided, to advise
and represent Employee in connection with any such interpretation, enforcement
or defense, including without limitation the initiation or defense of any
litigation or other legal action, whether by or against the Company or any
Director, officer, stockholder or other person affiliated with the Company, in
any jurisdiction. Notwithstanding any existing or prior attorney-client
relationship between the Company and such counsel, the Company irrevocably
consents to Employee's entering into an attorney-client relationship with such
counsel, and in that connection the Company and Employee agree that a
confidential relationship shall exist between Employee and such counsel. Without
respect to whether Employee prevails, in whole or in part, in connection with
any of the foregoing, the Company will pay and be solely financially responsible
for any and all attorneys, and related fees and expenses incurred by Employee in
connection with any of the foregoing; provided that, in regard to such matters,
the Employee has not acted in bad faith or with no colorable claim of success.
Such payments shall be made within five (5) business days after

                                     - 3 -
<PAGE>

delivery of Employee's written requests for payment, accompanied by such
evidence of fees and expenses incurred as the Company may reasonably require.
Notwithstanding the foregoing provisions of this Section 4.9(b), the obligations
of the Company under this Section 4.9(b) shall not exceed, in the aggregate,
$50,000.

               4.10  Indemnification. The Holdings' Indemnification Agreement
(the "Indemnification Agreement") attached as Exhibit A to the 2004 Employment
Agreement will continue in full force and effect in accordance with the terms of
the Indemnification Agreement.

          5.   Termination of Employment.

               5.1  By the Company for Cause or by the Employee Without Good
Reason or Due to Death or Disability. If: (i) the Employee's employment
terminates due to his death; (ii) the Company terminates the Employee's
employment with the Company for Cause (as defined below); (iii) the Company
terminates the Employee's employment with the Company due to the Employee's
Disability (as defined below); or (iv) Employee terminates his employment
without Good Reason (as defined below), provided that the Employee shall be
required to give the Company at least thirty (30) days prior written notice of
such termination, the Employee or the Employee's legal representatives (as
appropriate), shall be entitled to receive the following (the "Accrued
Benefits"):

                    (a)  the Employee's accrued but unpaid Base Salary and
benefits set forth in Section 4.4, if any, to the date of termination;

                    (b)  the unpaid portion of the Bonus, if any, relating to
the calendar year prior to the calendar year of the Employee's death,
Disability, termination by the Company for Cause or by the Employee without Good
Reason, payable in accordance with Section 4.2;

                    (c)  expenses reimbursable under Section 4.6 incurred but
not yet reimbursed to the Employee to the date of termination; and

                    (d)  in accordance with the Company's policies, any accrued
but unused vacation time or paid time off.

          For the purposes of this Agreement, "Disability" means a determination
by the Company in accordance with applicable law that as a result of a physical
or mental injury or illness, the Employee is unable to perform the essential
functions of his job with or without reasonable accommodation for a period of
(i) ninety (90) consecutive days; or (ii) one hundred eighty (180) days in any
one (1) year period.

          For the purposes of this Agreement, "Cause" means, as determined by
the Board (or its designee), with respect to conduct during the Employee's
employment with the Company, whether or not committed during the Term, (i)
commission of a felony by Employee; (ii) acts of dishonesty by Employee
resulting or intending to result in personal gain or enrichment at the expense
of the Company or its subsidiaries; (iii) Employee's material breach of his
obligations under this Agreement; (iv) conduct by Employee in connection with
his duties hereunder that is fraudulent, unlawful or grossly negligent; (v)
engaging in personal conduct by

                                     - 4 -
<PAGE>

Employee (including but not limited to employee harassment or discrimination,
the use or possession at work of any illegal controlled substance) which
seriously discredits or damages the Company or its subsidiaries; (vi)
contravention of specific reasonable lawful material direction from the person
or entity to whom the Employee reports or continuing inattention to or
continuing failure to adequately perform the material duties to be performed by
Employee under the terms of Section 3.2 of this Agreement or (vii) breach of the
Employee's covenants set forth in Section 7 below before termination of
employment; provided, that, the Employee shall have fifteen (15) days after
notice from the Company to cure the deficiency leading to the Cause
determination (except with respect to (i) above), if curable. A termination for
"Cause" shall be effective immediately (or on such other date set forth by the
Company).

          For the purposes of this Agreement, "Good Reason" means, without the
Employee's consent, (i) a material adverse reduction in Employee's
responsibilities or duties; (ii) a reduction in the Employee's Base Salary or
bonus opportunity; provided that, the Company may at any time or from time to
time amend, modify, suspend or terminate any bonus, incentive compensation or
other benefit plan or program provided to the Employee for any reason and
without the Employee's consent if such modification, suspension or termination
(x) is a result of the underperformance of the Employee or the Company under its
business plan, or (y) is consistent with an "across the board" reduction for all
similar level executive employees of the Company, and, in each case, is
undertaken in the Board's reasonable business judgment acting in good faith and
engaging in fair dealing with the Employee; (iii) without the Employee's prior
written consent, relocation of the Employee's Location of work to any location
that is in excess of 50 miles from the Location thereof on the Effective Date;
or (iv) the Company's material breach of the Agreement; provided that a
suspension of the Employee and the requirement that the Employee not report to
work shall not constitute "Good Reason" if the Employee continues to receive the
compensation and benefits required by this Agreement. The Employee shall provide
the Company written notice specifying such event or deficiency constituting Good
Reason within sixty (60) days following the Employee's knowledge of the
occurrence of such event and the Company shall have thirty (30) days after
receipt of such notice to cure the event or deficiency that would result in Good
Reason.

               5.2  By the Company Without Cause or By the Employee for Good
Reason. If during the Term the Company terminates Employee's employment without
Cause (which may be done at any time without prior notice) or Employee
terminates his employment for Good Reason, upon at least thirty (30) days prior
written notice, upon execution without revocation of a valid release agreement
in a form reasonably acceptable to the Company and the Employee and not in
violation of any applicable laws (the "Release"), the Employee shall be entitled
to receive:

                    (a)  the Accrued Benefits;

                    (b)  the pro-rata portion of the Bonus up to the date of
termination relating to the calendar year of the Employee's termination, payable
in accordance with Section 4.2;

                    (c)  (i) if prior to the expiration of the Initial Term, an
amount equal to two (2) times the sum of (x) the highest Base Salary received by
the Employee with respect to any calendar year during the previous two (2)
calendar years of the Term, and (y) the highest Bonus amount received by the
Employee with respect to any calendar year during the

                                     - 5 -
<PAGE>

previous two (2) calendar years of the Term and (ii) if during any Renewal Term,
an amount equal to the sum of (x) the highest Base Salary received by the
Employee with respect to any calendar year during the previous two (2) calendar
years of the Term, and (y) the highest Bonus amount received by the Employee
with respect to any calendar year during the previous two (2) calendar years of
the Term, in each case payable in twelve (12) equal monthly installments, less
standard income and payroll tax withholding and other authorized deductions; and

                    (d)  if the Employee elects continuing group coverage
pursuant to the Consolidated Omnibus Budget Reconciliation Act of 1985, as
amended ("COBRA"), reimbursement of the cost of such continuation coverage for
the earlier of (x) nine (9) months or (y) such earlier date that the Employee is
covered under another group health plan, subject to the terms of the plans and
applicable law.

          The Company shall have no obligation to provide the benefits set forth
above in the event that Employee breaches the provisions of Section 6. For
purposes of clarity, the Company's failure to renew the Term pursuant to Section
2 hereof, shall not constitute a termination of the Employee's employment
without Cause.

               5.3  Following the Company's Determination Not to Renew the Term.
Should the Employee's employment with the Company terminate following the
Company's determination not to renew the Term pursuant to Section 2, upon
execution without revocation of the Release, the Employee shall be entitled to
receive:

                    (a)  Accrued Benefits; and

                    (b)  an amount equal to the sum of (x) the Employee's Base
Salary, and (y) the highest Bonus amount received by the Employee with respect
to any calendar year during the previous two (2) calendar years of the Term,
payable in a lump sum within thirty (30) days following the effective date of
the Release, less standard income and payroll tax withholding and other
authorized deductions.

          The Company shall have no obligation to provide the benefits set forth
above in the event that Employee breaches the provisions of Section 6.

               5.4  No Mitigation; No Offset. The Employee shall be under no
obligation to seek other employment after his termination of employment with the
Company and the obligations of the Company to the Employee which arise upon the
termination of his employment pursuant to this Section 5 shall not be subject to
mitigation or offset.

               5.5  Removal from any Boards and Position. If the Employee's
employment is terminated for any reason under this Agreement, he shall be deemed
to resign (i) if a member, from the Board or board of directors of any
subsidiary of the Company or any other board to which he has been appointed or
nominated by or on behalf of the Company and (ii) from any position with the
Company or any subsidiary of the Company, including, but not limited to, as an
officer of the Company and any of its subsidiaries.

               5.6  Continued Employment Beyond the Expiration of the Term.
Unless the parties otherwise agree in writing, continuation of the Employee's
employment with the Company beyond the expiration of the Term or following
non-renewal of this Agreement by

                                     - 6 -
<PAGE>

either party shall be deemed an employment at-will and shall not be deemed to
extend any of the provisions of this Agreement, and the Employee's employment
may thereafter be terminated at will by either the Employee or the Company;
provided that the provisions of Sections 5.3, 6, 7, 8.5 and 8.10 of this
Agreement shall survive any termination of this Agreement or the termination of
the Employee's employment hereunder.

          6.   Certain Additional Payments by the Company.

               6.1  Anything in this Agreement to the contrary notwithstanding,
in the event that it shall be determined (as hereafter provided) that any
payment (other than the Gross-Up payments provided for in this Section 6) or
distribution by the Company or its affiliates to or for the benefit of the
Employee, whether paid or payable or distributed or distributable pursuant to
the terms of this Agreement or otherwise pursuant to or by reason of any other
agreement, policy, plan, program or arrangement, including without limitation
any stock option, performance share, performance unit, stock appreciation right
or similar right, or the lapse or termination of any restriction on or the
vesting or exercisability of any of the foregoing (a "Payment"), would be
subject to the excise tax imposed by Section 4999 of the Internal Revenue Code
of 1986, as amended, and the regulations thereunder (the "Code") by reason of
being considered "contingent on a change in ownership or control" of the Company
within the meaning of Section 280G of the Code, or any similar tax imposed by
state or local law, or any interest or penalties with respect to such tax (such
tax or taxes, together with any such interest and penalties, being hereafter
collectively referred to as the "Excise Tax"), then the Employee shall be
entitled to receive an additional payment or payments (collectively, a "Gross-Up
Payment"). The Gross-Up Payment shall be in an amount such that, after payment
by the Employee of all taxes (including any interest or penalties imposed with
respect to such taxes), including any Excise Tax imposed upon the Gross-Up
Payment, the Employee retains an amount of the Gross-Up Payment equal to the
Excise Tax imposed upon the Payment. For purposes of determining the amount of
the Gross-Up Payment, the Employee will be considered to pay (x) federal income
taxes at the highest rate in effect in the year in which the Gross-Up Payment
will be made and (y) state and local income taxes at the highest rate in effect
in the state or locality in which the Gross-Up Payment would be subject to state
or local tax, net of the maximum reduction in federal income tax that could be
obtained from deduction of such state and local taxes.

               6.2  Subject to the provisions of Section 6.6, all determinations
required to be made under this Section 6, including whether an Excise Tax is
payable by the Employee and the amount of such Excise Tax and whether a Gross-Up
Payment is required to be paid by the Company to the Employee and the amount of
such Gross-Up Payment, if any, shall be made by a nationally recognized
accounting firm (the "Accounting Firm") selected by the Employee in his sole
discretion. The Employee shall direct the Accounting Firm to submit its
determination and detailed supporting calculations to both the Company and the
Employee within thirty (30) calendar days after the Date of Termination, if
applicable, and any such other time or times as may be requested by the Company
or the Employee. If the Accounting Firm determines that any Excise Tax is
payable by the Employee, the Company shall pay the required Gross-Up Payment to
the Employee within five (5) business days after receipt of such determination
and calculations with respect to any Payment to the Employee or to the Internal
Revenue Service on the Employee's behalf. If the Accounting Firm determines that
no Excise Tax is payable by the Employee with respect to any material benefit or
amount (or portion thereof), it shall, at the same time as it makes such
determination, furnish the Company and the

                                     - 7 -
<PAGE>

Employee an opinion that the Employee has substantial authority not to report
any Excise Tax on his federal, state or local income or other tax return. As a
result of the uncertainty in the application of Section 4999 of the Code and the
possibility of similar uncertainty regarding applicable state or local tax law
at the time of any determination by the Accounting Firm hereunder, it is
possible that Gross-Up Payments which will not have been made by the Company
should have been made (an "Underpayment"), consistent with the calculations
required to be made hereunder. In the event that the Company exhausts or fails
to pursue its remedies pursuant to Section 6.6 and the Employee thereafter is
required to make a payment of any Excise Tax, the Employee shall direct the
Accounting Firm to determine the amount of the Underpayment that has occurred
and to submit its determination and detailed supporting calculations to both the
Company and the Employee as promptly as possible. Any such Underpayment shall be
promptly paid by the Company to, or for the benefit of, the Employee within five
(5) business days after receipt of such determination and calculations.

               6.3  The Company and the Employee shall each provide the
Accounting Firm access to and copies of any books, record and documents in the
possession of the Company or the Employee, as the case may be, reasonably
requested by the Accounting Firm, and-otherwise cooperate with the Accounting
Firm in connection with the preparation and issuance of the determinations and
calculations contemplated by Section 6.2. Any determination by the Accounting
Firm as to the amount of the Gross-Up Payment shall be binding upon the Company
and the Employee.

               6.4  The federal, state and local income or other tax returns
filed by the Employee shall be prepared and filed on a consistent basis with the
determination of the Accounting Firm with respect to the Excise Tax payable by
the Employee. The Employee shall report and make proper payment of the amount of
any Excise Tax, and at the request of the Company, provide to the Company true
and correct copies (with any amendments) of his federal income tax return as
filed with the Internal Revenue Service and corresponding state and local tax
returns, if relevant, as filed with the applicable taxing authority, and such
other documents reasonably requested by the Company, evidencing such payment. If
prior to the filing of the Employee's federal income tax return, or
corresponding state or local tax return, if relevant, the Accounting Firm
determines that the amount of the Gross-Up Payment should be reduced, the
Employee shall within five (5) business days pay to the Company the amount of
such reduction.

               6.5  The fees and expenses of Accounting Firm for its services in
connection with the determinations and calculations contemplated by Section 6.2
shall be borne by the Company. If such fees and expenses are initially paid by
the Employee, the Company shall reimburse the Employee the full amount of such
fees and expenses within five (5) business days after receipt from the Employee
of a statement therefor and reasonable evidence of his payment thereof.

               6.6  The Employee shall notify the Company in writing of any
claim by the Internal Revenue Service or any other taxing authority that, if
successful, would require the payment by the Company of a Gross-Up Payment. Such
notification shall be given as promptly as practicable but no later than ten
(10) business days after the Employee actually receives notice of such claim and
the Employee shall further apprise the Company of the nature of such claim and
the date on which such claim is requested to be paid (in each case, to the
extent known by the Employee). The Employee shall not pay such claim prior to
the earlier of (i) the expiration of the 30-calendar-day period following the
date on which he gives such notice

                                     - 8 -
<PAGE>

to the Company and (ii) the date that any payment of amount with respect to such
claim is due. If the Company notified the Employee in writing prior to the
expiration of such period that it desires to contest such claim, the Employee
shall:

                    (a)  provide the Company with any written records or
documents in his possession relating to such claim reasonably requested by the
Company;

                    (b)  take such action in connection with contesting such
claim as the Company shall reasonably request in writing from time to time,
including without limitation accepting legal representation with respect to such
claim by an attorney competent in respect of the subject matter and reasonably
selected by the Company;

                    (c)  cooperate with the Company in good faith in order
effectively to contest such claim; and

                    (d)  permit the Company to participate in any proceedings
relating to such claim; provided, however, that the Company shall bear and pay
directly all costs and expenses (including interest and penalties) incurred in
connection with such contest and shall indemnify and hold harmless the Employee,
on an after-tax basis, for and against any Excise Tax or income or other tax,
including interest and penalties with respect thereto, imposed as a result of
such representation and payment of costs and expenses. Without limiting the
foregoing provisions of this Section 6.6, the Company shall control all
proceedings taken in connection with the contest of any claim contemplated by
this Section 6.6 and, at its sole option, may pursue or forego any and all
administrative appeals, proceedings, hearings and conferences with the taxing
authority in respect of such claim (provided, however, that the Employee may
participate therein at his own cost and expense) and may, at its option, either
direct the Employee to pay the tax claimed and sue for a refund or contest the
claim in any permissible manner, and the Employee agrees to prosecute such
contest to a determination before any administrative tribunal, in a court of
initial jurisdiction and in one or more appellate courts, as the Company shall
determine; provided, however, that if the Company directs the Employee to pay
the tax claimed and sue for a refund, the Company shall advance the amount of
such payment to the Employee on an interest-free basis and shall indemnify and
hold the Employee harmless, on an after-tax basis, from any Excise Tax or income
or other tax, including interest or penalties with respect thereto, imposed with
respect to such advance; and provided further, however, that any extension of
the statute of limitations relating to payment of taxes for the taxable year of
the Employee with respect to which the contested amount is claimed to be due is
limited solely to such contested amount. Furthermore, the Company's control of
any such contested claim shall be limited to issues with respect to which a
Gross-Up Payment would be payable hereunder and the Employee shall be entitled
to settle or contest as the case may be, any other issue raised by the Internal
Revenue Service or any other taxing authority.

               6.7  If, after the receipt by the Employee of an amount advanced
by the Company pursuant to Section 6.6, the Employee receives any refund with
respect to such claim, the Employee shall (subject to the Company's complying
with the requirements of Section 6.6) promptly pay to the Company the amount of
such refund (together with any interest paid or credited thereon after any taxes
applicable thereto). If, after the receipt by the Employee of an amount advanced
by the Company pursuant to Section 6.6, a determination is made that the
Employee shall not be entitled to any refund with respect to such claim and the
Company does not notify the Employee in writing of its intent to contest such
denial or refund prior to the

                                     - 9 -
<PAGE>

expiration of ten (10) calendar days after such determination, then such advance
shall be forgiven and shall not be required to be repaid and the amount of any
such advance shall offset, to the extent thereof, the amount of Gross-Up Payment
required to be paid by the Company to the Employee pursuant to this Section 6.

               6.8  Notwithstanding any provision of this Agreement to the
contrary, but giving effect to any redetermination of the amount of Gross-Up
payments otherwise required by this Section 6, if (i) but for this sentence, the
Company would be obligated to make a Gross-Up Payment to the Employee and (ii)
the aggregate "present value" of the "parachute payments" to be paid or provided
to the Employee under this Agreement or otherwise does not exceed three times
the Employee's "base amount" by more than $50,000, then the payments and
benefits to be paid or provided under this Agreement will be reduced (or repaid
to the Company, if previously paid or provided) to the minimum extent necessary
so that no portion of any payment or benefit to the Employee, as so reduced or
repaid, constitutes an "excess parachute payment." For purposes of this Section
6.8, the terms "excess parachute payment," "present value," "parachute payment,"
and "base amount" will have the meanings assigned to them by Section 280G of the
Code. The determination of whether any reduction in or repayment of such
payments or benefits to be provided under this Agreement is required pursuant to
this Section 6.8 will be made at the expense of the Company, if requested by the
Employee or the Company, by the Accounting Firm. Appropriate adjustments shall
be made to amounts previously paid to Employee, or to amounts not paid pursuant
to this Section 6.8, as the case may be, to reflect properly a subsequent
determination that the Employee owes more or less Excise Tax than the amount
previously determined to be due. In the event that any payment or benefit
intended to be provided under this Agreement or otherwise is required to be
reduced or repaid pursuant to this Section 6.8, the Employee shall be entitled
to designate the payments and/or benefits to be so reduced or repaid in order to
give effect to this Section 6.8. The Company shall provide the Employee with all
information reasonably requested by the Employee to permit the Employee to make
such designation. In the event that the Employee fails to make such designation
within 10 business days prior to the Date of Termination or other due date, the
Company may effect such reduction or repayment in any manner it deems
appropriate.

          7.   Restrictions and Obligations of the Employee.

               7.1  Confidentiality. (a) During the course of the Employee's
employment by the Company (prior to and during the Term), the Employee has had
and will have access to certain trade secrets and confidential information
relating to the Company and its subsidiaries (the "Protected Parties") which is
not readily available from sources outside the Company. The confidential and
proprietary information and, in any material respect, trade secrets of the
Protected Parties are among their most valuable assets, including but not
limited to, their customer, supplier and vendor lists, databases, competitive
strategies, computer programs, frameworks, or models, their marketing programs,
their sales, financial, marketing, training and technical information, their
product development (and proprietary product data) and any other information,
whether communicated orally, electronically, in writing or in other tangible
forms concerning how the Protected Parties create, develop, acquire or maintain
their products and marketing plans, target their potential customers and operate
their retail and other businesses. The Protected Parties invested, and continue
to invest, considerable amounts of time and money in their process, technology,
know-how, obtaining and developing the goodwill of their customers, their other
external relationships, their data systems and data bases, and all the
information described above (hereinafter collectively referred to as
"Confidential Information"),

                                     - 10 -
<PAGE>

and any misappropriation or unauthorized disclosure of Confidential Information
in any form would irreparably harm the Protected Parties. The Employee
acknowledges that such Confidential Information constitutes valuable, highly
confidential, special and unique property of the Protected Parties. The Employee
shall hold in a fiduciary capacity for the benefit of the Protected Parties all
Confidential Information relating to the Protected Parties and their businesses,
which shall have been obtained by the Employee during the Employee's employment
by the Company or its subsidiaries and which shall not be or become public
knowledge (other than by acts by the Employee or representatives of the Employee
in violation of this Agreement). Except as required by law or an order of a
court or governmental agency with jurisdiction, the Employee shall not, during
the period the Employee is employed by the Company or its subsidiaries or at any
time thereafter, disclose any Confidential Information, directly or indirectly,
to any person or entity for any reason or purpose whatsoever, nor shall the
Employee use it in any way, except in the course of the Employee's employment
with, and for the benefit of, the Protected Parties or to enforce any rights or
defend any claims hereunder or under any other agreement to which the Employee
is a party, provided that such disclosure is relevant to the enforcement of such
rights or defense of such claims and is only disclosed in the formal proceedings
related thereto. The Employee shall take all reasonable steps to safeguard the
Confidential Information and to protect it against disclosure, misuse,
espionage, loss and theft. The Employee understands and agrees that the Employee
shall acquire no rights to any such Confidential Information.

                    (b)  All files, records, documents, drawings,
specifications, data, computer programs, evaluation mechanisms and analytics and
similar items relating thereto or to the Business (for the purposes of this
Agreement, "Business" shall be as defined in Section 6.3 hereof), as well as all
customer lists, specific customer information, compilations of product research
and marketing techniques of the Company and its subsidiaries, whether prepared
by the Employee or otherwise coming into the Employee's possession in connection
with or relating to his employment with the Company, shall remain the exclusive
property of the Company and its subsidiaries, and the Employee shall not remove
any such items from the premises of the Company and its subsidiaries, except in
furtherance of the Employee's duties under any employment agreement.

                    (c)  It is understood that while employed by the Company or
its subsidiaries, the Employee will promptly disclose to it, and assign to it
the Employee's interest in any invention, improvement or discovery made or
conceived by the Employee, either alone or jointly with others, which arises out
of the Employee's employment. At the Company's request and expense, the Employee
will assist the Company and its subsidiaries during the period of the Employee's
employment by the Company or its subsidiaries and thereafter in connection with
any controversy or legal proceeding relating to such invention, improvement or
discovery and in obtaining domestic and foreign patent or other protection
covering the same.

                    (d)  As requested by the Company and at the Company's
expense, from time to time and upon the termination of the Employee's employment
with the Company for any reason, the Employee will promptly deliver to the
Company and its subsidiaries all copies and embodiments, in whatever form, of
all Confidential Information in the Employee's possession or within his control
(including, but not limited to, memoranda, records, notes, plans, photographs,
manuals, notebooks, documentation, program listings, flow charts, magnetic
media, disks, diskettes, tapes and all other materials containing any
Confidential Information) irrespective of the location or form of such material.
If requested by the Company,

                                     - 11 -
<PAGE>

the Employee will provide the Company with written confirmation that all such
materials have been delivered to the Company as provided herein.

               7.2  Non-Solicitation or Hire. During the Term and for a period
of twelve (12) months following the termination of the Employee's employment for
any reason, the Employee shall not directly or indirectly solicit or attempt to
solicit or induce, directly or indirectly, (a) any party who is a customer of
the Company or its subsidiaries, or who was a customer of the Company or its
subsidiaries at any time during the twelve (12) month period immediately prior
to the date the Employee's employment terminates, for the purpose of marketing,
selling or providing to any such party any services or products offered by or
available from the Company or its subsidiaries, (b) any supplier to or customer
or client of the Company or any subsidiary to terminate, reduce or alter
negatively its relationship with the Company or any subsidiary or in any manner
interfere with any agreement or contract between the Company or any subsidiary
and such supplier, customer or client or (c) any employee of the Company or any
of its subsidiaries or any person who was an employee of the Company or any of
its subsidiaries during the twelve (12) month period immediately prior to the
date the Employee's employment terminates to terminate such employee's
employment relationship with the Protected Parties in order, in either case, to
enter into a similar relationship with the Employee, or any other person or any
entity in competition with the Business of the Company or any of its
subsidiaries, provided that if the Employee intends to solicit any such party
referenced in this Section 7.2 (a), (b) or (c) for any other purpose, he shall
notify the Company of such intention and receive prior written approval from the
Company, which shall not be unreasonably withheld.

               7.3  Non-Competition. During the Term and for a period of twelve
(12) months following the termination of Employee's employment by the Company
(for any reason) the Employee shall not, whether individually, as a director,
manager, member, stockholder, partner, owner, employee, consultant or agent of
any business, or in any other capacity, other than on behalf of the Company or a
subsidiary, organize, establish, own, operate, manage, control, engage in,
participate in, invest in, permit his name to be used by, act as a consultant or
advisor to, render services for (alone or in association with any person, firm,
corporation or business organization), or otherwise assist any person or entity
that engages in or owns, invests in, operates, manages or controls any venture
or enterprise which engages or proposes to engage in the reinsurance business or
any other business conducted by the Company or any of its subsidiaries on the
date of the Employee's termination of employment or within twelve (12) months of
the Employee's termination of employment for which the Employee has performed
services, in each case, in the geographic locations where the Company and its
subsidiaries engage or propose to engage in such business(es) (the "Business").
Notwithstanding the foregoing, nothing in this Agreement shall prevent the
Employee from (a) owning for passive investment purposes not intended to
circumvent this Agreement, less than five percent (5%) of the publicly traded
common equity securities of any company engaged in the Business (so long as the
Employee has no power to manage, operate, advise, consult with or control the
competing enterprise and no power, alone or in conjunction with other affiliated
parties, to select a director, manager, general partner, or similar governing
official of the competing enterprise other than in connection with the normal
and customary voting powers afforded the Employee in connection with any
permissible equity ownership), and (b) serving as an employee, consultant or
advisor (or other similar capacity) to an entity engaged in the Business for a
unit, division, affiliate or department of such entity that does not engage in
the Business in any material respect, so long as

                                     - 12 -
<PAGE>

the Employee is not directly or indirectly involved in the Business activities
performed by such entity.

               7.4  Property. The Employee acknowledges that all originals and
copies of materials, records and documents generated by him or coming into his
possession during his employment by the Company or its subsidiaries are the sole
property of the Company and its subsidiaries ("Company Property"). During the
Term, and at all times thereafter, the Employee shall not remove, or cause to be
removed, from the premises of the Company or its subsidiaries, copies of any
record, file, memorandum, document, computer related information or equipment,
or any other item relating to the business of the Company or its subsidiaries,
except in furtherance of his duties under the Agreement. When the Employee's
employment with the Company terminates, or upon request of the Company at any
time, the Employee shall promptly deliver to the Company all copies of Company
Property in his possession or control.

          8.   Remedies; Specific Performance. The Parties acknowledge and agree
that the Employee's breach or threatened breach of any of the restrictions set
forth in Section 7 will result in irreparable and continuing damage to the
Protected Parties for which there may be no adequate remedy at law and that the
Protected Parties shall be entitled to equitable relief, including specific
performance and injunctive relief as remedies for any such breach or threatened
or attempted breach. The Employee hereby consents to the grant of an injunction
(temporary or otherwise) against the Employee or the entry of any other court
order against the Employee prohibiting and enjoining him from violating, or
directing him to comply with any provision of Section 7. The Employee also
agrees that such remedies shall be in addition to any and all remedies,
including damages, available to the Protected Parties against him for such
breaches or threatened or attempted breaches. In addition, without limiting the
Protected Parties' remedies for any breach of any restriction on the Employee
set forth in Section 7, except as required by law, the Employee shall not be
entitled to any payments set forth in Section 5.2 hereof if the Employee has
breached the covenants applicable to the Employee contained in Section 7, the
Employee will immediately return to the Protected Parties any such payments
previously received under Section 5.2 upon such a breach, and, in the event of
such breach, the Protected Parties will have no obligation to pay any of the
amounts that remain payable by the Company under Section 5.2.

          9.   Other Provisions.

               9.1  Notices. Any notice or other communication required or which
may be given hereunder shall be in writing and shall be delivered personally,
telegraphed, telexed, sent by facsimile transmission or sent by certified,
registered or express mail, postage prepaid or overnight mail and shall be
deemed given when so delivered personally, telegraphed, telexed, or sent by
facsimile transmission or, if mailed, four (4) days after the date of mailing or
one (1) day after overnight mail, as follows:

                    (a)  If the Company, to:

                         13840 Ballantyne Corporate Place,
                         Suite 500
                         Charlotte, NC 28277

                                     - 13 -
<PAGE>

                         Attention: General Counsel
                         Telephone:
                         Fax:

                    (b)  If the Employee, to the Employee's home address
reflected in the Company's records.

               9.2  Entire Agreement. This Agreement contains the entire
agreement between the Parties with respect to the subject matter hereof and
supersedes all prior agreements, written or oral, with respect thereto,
including, without limitation, the 2004 Employment Agreement, except as
specifically referenced herein.

               9.3  Representations and Warranties by Employee. The Employee
represents and warrants that he is not a party to or subject to any restrictive
covenants, legal restrictions or other agreements in favor of any entity or
person which would in any way preclude, inhibit, impair or limit the Employee's
ability to perform his obligations under this Agreement, including, but not
limited to, non-competition agreements, non-solicitation agreements or
confidentiality agreements.

               9.4  Waiver and Amendments. This Agreement may be amended,
modified, superseded, canceled, renewed or extended, and the terms and
conditions hereof may be waived, only by a written instrument signed by the
Parties or, in the case of a waiver, by the party waiving compliance. No delay
on the part of any party in exercising any right, power or privilege hereunder
shall operate as a waiver thereof, nor shall any waiver on the part of any
right, power or privilege hereunder, nor any single or partial exercise of any
right, power or privilege hereunder, preclude any other or further exercise
thereof or the exercise of any other right, power or privilege hereunder.

               9.5  Governing Law, Dispute Resolution and Venue.

                    (a)  This Agreement shall be governed and construed in
accordance with the laws of the State of New York applicable to agreements made
and not to be performed entirely within such state, without regard to conflicts
of laws principles.

                    (b)  The parties agree irrevocably to submit to the
exclusive jurisdiction of the federal courts or, if no federal jurisdiction
exists, the state courts, located in Charlotte, North Carolina, for the purposes
of any suit, action or other proceeding brought by any party arising out of any
breach of any of the provisions of this Agreement and hereby waive, and agree
not to assert by way of motion, as a defense or otherwise, in any such suit,
action, or proceeding, any claim that it is not personally subject to the
jurisdiction of the above-named courts, that the suit, action or proceeding is
brought in an inconvenient forum, that the venue of the suit, action or
proceeding is improper, or that the provisions of this Agreement may not be
enforced in or by such courts. IN ADDITION, THE PARTIES AGREE TO WAIVE TRIAL BY
JURY.

               9.6  Assignability by the Company and the Employee. This
Agreement, and the rights and obligations hereunder, may not be assigned by the
Company or the Employee without written consent signed by the other party;
provided that the Company may assign the Agreement to any successor that
continues the business of the Company.

                                     - 14 -
<PAGE>

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

               9.8  Headings. The headings in this Agreement are for convenience
of reference only and shall not limit or otherwise affect the meaning of terms
contained herein.

               9.9  Severability. If any term, provision, covenant or
restriction of this Agreement, or any part thereof, is held by a court of
competent jurisdiction of any foreign, federal, state, county or local
government or any other governmental, regulatory or administrative agency or
authority to be invalid, void, unenforceable or against public policy for any
reason, the remainder of the terms, provisions, covenants and restrictions of
this Agreement shall remain in full force and effect and shall in no way be
affected or impaired or invalidated. The Employee acknowledges that the
restrictive covenants contained in Section 7 are a condition of this Agreement
and are reasonable and valid in temporal scope and in all other respects.

               9.10 Judicial Modification. If any court determines that any of
the covenants in Section 7, or any part of any of them, is invalid or
unenforceable, the remainder of such covenants and parts thereof shall not
thereby be affected and shall be given full effect, without regard to the
invalid portion. If any court determines that any of such covenants, or any part
thereof, is invalid or unenforceable because of the geographic or temporal scope
of such provision, such court shall reduce such scope to the minimum extent
necessary to make such covenants valid and enforceable.

               9.11 Tax Withholding. The Company or other payor is authorized to
withhold from any benefit provided or payment due hereunder, the amount of
withholding taxes due any federal, state or local authority in respect of such
benefit or payment and to take such other action as may be necessary in the
opinion of the Board to satisfy all obligations for the payment of such
withholding taxes.

               9.12 Compliance with Law. This Agreement is intended to comply
with the requirements of Section 409A of the Code. To the extent that any
provision in this Agreement is ambiguous as to its compliance with Section 409A,
the provision shall be read in such a manner so that all payments under Section
5 shall comply with Section 409A. Notwithstanding the foregoing, in the event
that the Employee becomes subject to the additional 20% income tax as a result
any payment or benefit becoming subject to and/or violating Section 409A of the
Code due to any provision of this Agreement, the Company shall make a 409A tax
gross-up payment to the Employee so that the Employee's net after tax benefit or
payment with respect to such payment is not less than the net after tax benefit
or payment the Employee would have received if the 20% additional tax under 409A
had not been imposed. The 409A tax gross-up payment shall be made as soon as
practicable following the determination of the liability for such 409A
additional tax but in no event will the 409A tax gross-up payment be made later
than the Employee's taxable year next following the taxable year in which the
Employee remits the related taxes.

                                     - 15 -
<PAGE>

IN WITNESS WHEREOF, the Parties hereto, intending to be legally bound hereby,
have executed this Agreement as of the day and year first above mentioned.

                                        EMPLOYEE

                                         /s/ Michael Baumstein
                                        ---------------------------------------
                                        Michael Baumstein

                                        SCOTTISH HOLDINGS, INC.

                                        By:   /s/ Paul Goldean
                                             -----------------------------------
                                             Name: Paul Goldean
                                             Title: Director

                                     - 16 -

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