Document:

EXHIBIT 10.1

                  MILLERS AMERICAN GROUP, INC.

                     1999 STOCK OPTION PLAN

                         APRIL 19, 1999

<PAGE>

                       MILLERS AMERICAN GROUP, INC.
                          1999 STOCK OPTION PLAN

                                ARTICLE I.
                                 PURPOSES

     1.1  PURPOSE OF PLAN.  The purposes of the Millers American Group,
Inc. 1999 Stock Option Plan (the "Plan") are to advance the interests of
Millers American Group, Inc. (the "Company") and its shareholders by
providing significant incentives to selected officers, directors and
employees of the Company and its Subsidiaries (as defined herein) and to
enhance the interest of such officers, directors and employees in the
Company's success and progress by providing them with an opportunity to
become shareholders of the Company.  Further, the Plan is designed to
enhance the Company's ability to attract and retain qualified management
and other personnel necessary for the success and progress of the Company.

                                ARTICLE II.
                                DEFINITIONS

     2.1  DEFINITIONS.  Certain terms used herein shall have the meaning
below stated, subject to the provisions of Section 8.1 hereof.

          (a)  "Board" or "Board of Directors" means the Board of Directors
     of the Company.

          (b)  "Code" means the Internal Revenue Code of 1986, as amended.

          (c)  "Committee" means the committee of directors appointed by
     the Board to administer the Plan pursuant to Article VII hereof.

          (d)  "Common Stock" means the authorized common stock of the
     Company, par value $.01 per share, as constituted on the date the Plan
     becomes effective.

          (e)  "Company" means Millers American Group, Inc., a Texas
     corporation.

          (f)  "Director" means a member of the Board of Directors of the
     Company or a Subsidiary who is not an Employee.

          (g)  "Employee" means an officer or other employee of the Company
     or a Subsidiary, including a member of the Board who is also such an
     employee.

          (h)  "Fair Market Value" on any date for which fair market value
     is to be determined hereunder means the reported closing price on the
     principal national securities exchange on which the shares of Common
     Stock are listed or admitted to trading, or, if the shares of Common
     Stock are not listed or admitted to trading on any national securities
     exchange, on the National Association of Securities Dealers Automated
     Quotation National Market (the "NASDAQ National Market"), or, if the
     shares of Common Stock are not quoted on the NASDAQ National Market,
     the average of the highest reported bid and the lowest reported asked
     prices as furnished by the National Association of Securities Dealers,
     Inc. (the "NASD") through NASDAQ, or, if not so reported through
     NASDAQ as reported through the National Quotation Bureau, Incorporated
     ("NQBI") or a similar organization if NASDAQ or NQBI is no longer
     reporting such information.  For options approved at such times as the
     Common Stock is not reported or quoted by any such organization
     (including options approved prior to an initial public stock offering
     of the Company), the fair market value of the shares of Common Stock
     shall be the fair market value thereof determined in good faith by the
     Committee.  In addition to the above rules, Fair Market Value shall be
     determined without regard to any restriction other than a restriction
     which, by its terms, will never lapse.

          (i)  "Incentive Option" means an Option intended to qualify as an
     incentive option under Section 422 of the Code.

          (j)  "Nonqualified Option" means an Option that does not qualify
     as an Incentive Option.

          (k)  "Option" means an option to purchase Common Stock granted by
     the Company to an Employee or a Director pursuant to Section 5.1
     hereof.

          (l)  "Option Agreement" means an agreement between the Company
     and an Optionee evidencing the terms of an Option granted under the
     Plan.

          (m)  "Optionee" means an Employee or a Director to whom an Option
     has been granted under the Plan.

          (n)  "Plan" means the Millers American Group, Inc. 1999 Stock
     Option Plan, as set forth herein and as from time to time amended.

          (o)  "Subsidiary" means a subsidiary of the Company within the
     meaning of Section 424(f) of the Code.

                               ARTICLE III.
                SHAREHOLDER APPROVAL; RESERVATION OF SHARES

     3.1  SHAREHOLDER APPROVAL.  The Plan shall become effective only if,
within 12 months from the date the Plan is adopted by the Board, the Plan
is approved by the affirmative vote of the holders of a majority of the
shares of Common Stock of the Company, or by the unanimous written consent
of such holders, in accordance with the applicable provisions of the
Articles of Incorporation and Bylaws of the Company and applicable state
law.

     3.2  SHARES RESERVED UNDER PLAN.  The aggregate number of shares of
Common Stock which may be issued upon the exercise of Options granted under
the Plan shall not exceed 3,000,000 shares, all or any part of which may be
issued pursuant to Options; provided, however, that the maximum number of
shares of Common Stock which may be issued to an Optionee under the Plan
during the term of the Plan shall not exceed 1,200,000 (as may be adjusted
pursuant to Section 9.4 of the Plan).  Shares of Common Stock issued upon
the exercise of Options granted under the Plan may consist of either
authorized but unissued shares or shares which have been issued and which
shall have been heretofore or shall be hereafter reacquired by the Company.
The total number of shares authorized under the Plan shall be subject to
increase or decrease in order to give effect to the provisions of Section
9.4 hereof and to give effect to any amendment adopted pursuant to Article
VIII.  If any Option granted under the Plan shall expire, terminate or be
cancelled for any reason without having been exercised in full, the number
of shares as to which such Option was not exercised shall again be
available for purposes of the Plan.  The Company shall at all times while
the Plan is in effect reserve such number of shares of Common Stock as will
be sufficient to satisfy the requirements of the Plan.

                                ARTICLE IV.
                           PARTICIPATION IN PLAN

     4.1  ELIGIBILITY.  Options under the Plan may be granted to any
Director or Employee of the Company or a Subsidiary.  The Committee shall
determine those Directors or Employees to whom Options shall be granted,
and, subject to Section 3.2 hereof, the number of shares of Common Stock
subject to each such Option.  Incentive Options or Nonqualified Options may
be granted to an Employee.  Only Nonqualified Options may be granted to a
nonemployee Director.

     4.2  PARTICIPATION NOT GUARANTEE OF EMPLOYMENT OR RETENTION.  Nothing
in this Plan or in any Option Agreement shall in any manner be construed
(i) to limit in any way the right of the Company or any Subsidiary to
terminate an Employee's employment at any time, without regard to the
effect of such termination on any rights such Employee would otherwise have
under this Plan, or give any right to an Employee to remain employed or
retained by the Company or a Subsidiary thereof in any particular position
or at any particular rate of compensation or (ii) limit in any way the
right of the shareholders of the Company or a Subsidiary or the Board to
remove any Director or fail to nominate any Director for re-election
without regard to the effect of such removal or non-election of a Director
on any rights such Director would have under this Plan, or give any right
to a Director to continue to serve as a Director of the Company or a
Subsidiary.

                                ARTICLE V.
                       GRANT AND EXERCISE OF OPTIONS

     5.1  GRANT OF OPTIONS.  The Committee may from time to time in its
discretion grant Options to Employees or Directors.  All Options under the
Plan shall be granted within ten years from the date the Plan is adopted by
the Board or the date the Plan is approved by holders of the Common Stock
of the Company, whichever is earlier.

     5.2  OPTION AGREEMENTS.  Each Option granted under the Plan shall be
evidenced by an Option Agreement between the Company and the Optionee in
such form as the Committee shall approve and containing such provisions and
conditions not inconsistent with the provisions of the Plan, including the
term during which the Option may be exercised and whether in installments
or otherwise, as the Committee shall determine.  Each Option Agreement
issued under the Plan shall contain an agreement of the Optionee with
respect to nondisclosure of information, noncompete provisions and
nonsolicitation of customers and employees as shall be required by the
Board from each Optionee as additional consideration for the issuance of
Options under the Plan.

     5.3  OPTION TERMS.  Options granted under the Plan shall be subject to
the following requirements:

          (a)  OPTION PRICE.  The exercise price of each Incentive Option
     granted under the Plan shall not be less than the higher of the par
     value or 100% of the Fair Market Value of the shares of Common Stock
     subject to the Option on the date the Option is granted.  The exercise
     price of any Nonqualified Options granted under the Plan shall be
     determined by the Committee.  The exercise price of an Option may be
     subject to adjustment pursuant to Section 9.4 hereof.

          (b)  TERM OF OPTION.  The term during which an Option is
     exercisable shall be that period determined by the Committee as set
     forth in the applicable Option Agreement, provided that no Option
     shall have a term that exceeds a period of ten years from the date of
     its grant.

          (c)  NONTRANSFERABILITY OF INCENTIVE OPTIONS.  No Incentive
     Option granted under the Plan shall be transferable by the Optionee
     otherwise than by will or the laws of descent and distribution, and
     each such Incentive Option shall be exercisable during the Optionee's
     lifetime only by him or her.  No transfer of an Incentive Option by an
     Optionee by will or by the laws of descent and distribution shall be
     effective to bind the Company unless the Company shall have been
     furnished with written notice thereof and a copy of the will and/or
     such other evidence as the Committee may determine necessary to
     establish the validity of the transfer.

          (d)  ASSIGNABILITY OF NONQUALIFIED OPTIONS.  Nonqualified Options
     granted hereunder may be transferred by the Optionee thereof to one or
     more permitted transferees; provided that (i) there may be no
     consideration for such transfer, (ii) the Optionee (or such Optionee's
     estate or representative) shall remain obligated to satisfy all
     employment tax and other withholding tax obligations associated with
     the exercise of the Options, (iii) the Optionee shall notify the
     Company in writing that such transfer has occurred, the identity and
     address of the permitted transferee and the relationship of the
     permitted transferee to the Optionee and (iv) such transfer shall be
     effected pursuant to transfer documents approved from time to time by
     the Committee.  To the extent a Nonqualified Option transferred
     pursuant to this Section 5.3(d) is not fully exercisable as of the
     date of transfer thereof, the Optionee shall specify in the transfer
     document whether and to what extent the transferred Options (if less
     than all of the Options subject to the applicable Nonqualified Stock
     Option Agreement) are exercisable, subject to the limitations on
     exercisability contained in the applicable Nonqualified Stock Option
     Agreement.  Furthermore, to the extent the Optionee transfers Options
     that are not exercisable as of the date of transfer and such Options
     are less than all of the Options subject to the applicable
     Nonqualified Stock Option Agreement, the Optionee shall specify in the
     transfer documents, subject to the limitations on exercisability
     contained in the applicable Nonqualified Stock Option Agreement, when
     the transferred Options become exercisable as Options under the
     applicable Nonqualified Stock Option Agreement subsequent to such
     transfer.  No permitted transferee may further assign or transfer the
     transferred Option otherwise than by will or the laws of descent and
     distribution.  Following any permitted transfer, any such Options
     shall continue to be subject to the same terms and conditions as were
     applicable immediately prior to transfer; provided that for purposes
     of Sections 5.4(a), 5.4(b), 5.5, 5.6, Article VII, and Article IX
     hereof the term "Optionee" shall be deemed to refer also to each
     permitted transferee.  The events of termination of relationship in
     Article VI hereof shall continue to be applied with respect to the
     original Optionee, following which the Options shall be exercisable by
     the transferee only to the extent, and for the periods specified in
     Article VI and the shares issued upon exercise of Options shall be
     subject to repurchase pursuant to Section 9.3.  The term "permitted
     transferees" shall mean one or more of the following: (i) any member
     of the optionee's immediate family; (ii) a trust established for the
     exclusive benefit of one or more members of such immediate family; or
     (iii) a partnership in which such immediate family members are the
     only partners.  The term "immediate family" is defined for such
     purpose as spouses, children, stepchildren and grandchildren,
     including relationships arising from adoption.

          (e)  TIME AND AMOUNT EXERCISABLE.  Each Option shall be
     exercisable in accordance with the provisions of the Option Agreement
     pursuant to which it is granted in whole, or from time to time in
     part, subject to any limitations with respect to the number of shares
     for which the Option may be exercised at a particular time and to such
     other conditions as the Committee in its discretion may specify in the
     Option Agreement.  Any portion of an Option which has become
     exercisable shall remain exercisable until it is exercised in full or
     it terminates or expires pursuant to the terms of the Plan or the
     applicable Option Agreement.

          (f)  OPTIONS GRANTED TO TEN PERCENT STOCKHOLDERS.  No Incentive
     Option shall be granted to any Employee who owns, directly or
     indirectly within the meaning of Section 424(d) of the Code, stock
     possessing more than 10% of the total combined voting power of all
     classes of stock of the Company or any Subsidiary, unless at the time
     the Option is granted, the exercise price of the Option is at least
     110% of the Fair Market Value of the Common Stock subject to such
     Option and such Option, by its terms, is not exercisable after the
     expiration of five years from the date such Option is granted.  The
     provisions of this Section 5.3(f) shall not apply to the grant of
     Nonqualified Options.

     5.4  PAYMENT OF EXERCISE PRICE AND DELIVERY OF SHARES.

          (a)  MANNER OF EXERCISE.  Shares of Common Stock purchased upon
     exercise of Options shall at the time of purchase be paid for in full.
     The Company shall satisfy its employment tax and other tax withholding
     obligations by requiring the Optionee (or such Optionee's estate or
     representative) to pay the amount of employment tax and withholding
     tax, if any, that must be paid under federal, state and local law due
     to the exercise of the Option.  To the extent that the right to
     purchase shares has accrued hereunder, Options may be exercised from
     time to time by written notice to the Company stating the full number
     of shares with respect to which the Option is being exercised and the
     time of delivery thereof, which shall be at least fifteen days after
     the giving of such notice unless an earlier date shall have been
     mutually agreed upon by the Optionee (or other person entitled to
     exercise the Option) and the Company, accompanied by payment to the
     Company of the purchase price in full and the amount of employment tax
     and withholding tax due, if any, upon the exercise of the Option.
     Such payment shall be effected (i) by certified or official bank
     check, (ii) if so permitted by the Company, by the delivery of a
     number of shares of Common Stock (plus cash if necessary) having a
     fair market value equal to the amount of such purchase price and
     employment or withholding tax or (iii) by delivery of the equivalent
     thereof acceptable to the Company.  The Company will, as soon as
     reasonably possible notify the Optionee (or such Optionee's
     representative) of the amount of employment tax and other withholding
     tax that must be paid under federal, state and local law due to the
     exercise of the Option.  At the time of delivery, the Company shall,
     without transfer or issue tax to the Optionee (or other person
     entitled to exercise the Option), deliver to the Optionee (or to such
     other person) at the principal office of the Company, or such other
     place as shall be mutually agreed upon, a certificate or certificates
     for the shares of Common Stock, provided, however, that the time of
     delivery may be postponed by the Company for such period as may be
     required for it with reasonable diligence to comply with any
     requirements of law.  The foregoing notwithstanding, the Committee may
     permit in an Option Agreement, at the time of the grant of an Option
     or by later amendment to an Option Agreement, an alternative exercise
     of an Option by a "cashless exercise" with a broker or by the
     surrender of the Option, if the Committee so permits, in exchange for
     an amount, payable in cash or shares of Common Stock (except for
     fractional shares which shall be paid in cash) valued at Fair Market
     Value as of the date of such surrender, that is equal to the
     difference between (i) the aggregate Fair Market Value of the shares
     subject to the portion of the Option being exercised, minus (ii) the
     total exercise price for the portion of the Option being exercised.
     In the applicable Option Agreement the Committee may require an
     Optionee to accept either cash or shares in settlement of any Option
     so surrendered or may permit the Optionee to request, subject to
     Committee approval, cash or shares to be received in settlement.
     Withholding upon such an alternative exercise shall be effected by any
     lawful means approved by the Committee and agreed to with Optionee.

          (b)  RIGHTS OF OPTIONEE IN STOCK.  Neither any Optionee, any
     permitted transferee nor the legal representatives, heirs, legatees or
     distributees of any Optionee or permitted transferee shall be deemed
     to be the holder of, or to have any of the rights of a holder with
     respect to, any shares of Common Stock issuable upon exercise of an
     Option granted hereunder unless and until such shares are issued to
     him or her or them and such person or persons have received a
     certificate or certificates therefor.  Upon the issuance and receipt
     of such certificate or certificates, such Optionee or the legal
     representatives, heirs, legatees or distributees of such Optionee
     shall have absolute ownership of the shares of Common Stock evidenced
     thereby, including the right to vote such shares, to the same extent
     as any other owner of shares of Common Stock, and to receive dividends
     thereon, subject, however, to the terms, conditions and restrictions
     of the Plan.

     5.5  CHANGE OF CONTROL.

          (a)  A "Change of Control" for purposes of this Plan shall mean:
     (i) the acquisition, by a single entity (or group of affiliated
     entities) that is not directly or indirectly controlled by the
     existing shareholders, of more than 50% of the Common Stock issued and
     outstanding immediately prior to such acquisition; or (ii) the
     dissolution or liquidation of the Company or the consummation of any
     merger or consolidation of the Company or any sale or other
     disposition of all or substantially all of its assets, if the
     shareholders of the Company immediately before such transaction own
     directly or indirectly, immediately after consummation of such
     transaction, equity securities (other than options and other rights to
     acquire equity securities) possessing less than 50% of the voting
     power of the surviving or acquiring corporation.  All adjustments
     under this Section shall be made by the Committee, whose determination
     as to what adjustments shall be made and the extent thereof shall be
     final, binding and conclusive for all purposes of the Plan and of each
     Option Agreement.

          (b)  CHANGE OF CONTROL WITH PROVISION BEING MADE THEREFOR.  If in
     connection with a Change of Control a written provision is made for
     the assumption and continuance of any Option granted under the Plan,
     or the substitution for such option of a new Option covering the
     shares of the successor employer corporation, with appropriate
     adjustment as to the number and kind of shares and prices, the option
     granted under the Plan, or the new Option substituted therefor, as the
     case may be, shall continue in the manner and under the terms
     provided.

          (c)  CHANGE OF CONTROL WITHOUT PROVISION BEING MADE THEREFOR.  If
     no written provision is made in connection with a Change of Control
     for the continuance and assumption of any Option granted under the
     Plan or for the substitution of any Option covering the shares of the
     successor employer corporation, then, the holder of any such Option
     shall be entitled, prior to the effective date of any such Change of
     Control, to purchase the full number of shares not previously
     exercised under such Option, without regard to the periods and
     installments of exercisability made pursuant to Section 5.3 if (and
     only if) such Option has not at that time expired or been terminated,
     failing which purchase, any unexercised portion shall be deemed
     cancelled as of the effective date of such Change of Control.

     5.6  DISSOLUTION OR LIQUIDATION OF THE COMPANY.  In the event of the
proposed dissolution or liquidation of the Company, the Options granted
hereunder shall terminate as of a date to be fixed by the Committee,
provided that not less than 15 days' prior written notice of the date so
fixed shall be given to the Optionee, and the Optionee shall have the
right, during the 15-day period preceding such termination, to exercise his
or her Option.

                                ARTICLE VI.
                 TERMINATION OF EMPLOYMENT OR DIRECTORSHIP

     6.1  TERMINATION OF EMPLOYMENT FOR CAUSE.  In the event that an
Optionee is an Employee and such Optionee's employment by the Company or a
Subsidiary shall terminate for Cause (as hereinafter defined), the Options
granted to the Optionee pursuant to this Plan shall terminate immediately
upon termination of employment.  For the purposes of this Plan, the term
"Cause" shall mean "Cause" as defined in any written employment agreement
in effect between the applicable Optionee and the Company or a Subsidiary,
or if such Optionee is not a party to a written employment agreement in
which Cause is defined, then Cause shall mean (i) the failure by such
Optionee to substantially perform his or her duties with the Company or a
Subsidiary in a manner reasonably deemed satisfactory by the Board of
Directors, (ii) the abuse of illegal drugs or other controlled substances
or the intoxication of Optionee during working hours, (iii) the arrest for,
or conviction of, a felony, (iv) the unexcused absence by such Optionee
from Optionee's regular job location for more than five consecutive days or
for more than the aggregate number of days permitted to Optionee under
Company vacation and sick leave policies applicable to Optionee or (v) any
conduct or activity of such Optionee deemed injurious to the Company in the
reasonable discretion of the Board of Directors.

     6.2  TERMINATION OF DIRECTORSHIP.  In the event that an Optionee is a
Director and such Optionee fails to be reelected as a Director, resigns as
a Director or is removed as a Director (other than due to Optionee's
disability as defined in Section 6.3 hereof), the Options granted to such
Optionee pursuant to this Plan shall terminate on the date such Optionee
ceases to be a Director.

     6.3  DEATH OR DISABILITY.

          (a)  In the event that an Optionee shall die while employed by,
     or serving as a Director of, the Company or a Subsidiary or if
     Optionee's employment by, or service as a Director of, the Company or
     a Subsidiary is terminated because Optionee has become disabled,
     Optionee, his or her estate, or beneficiary shall have the right to
     exercise his or her Option at any time within 60 days from the date of
     death of Optionee or termination of Optionee's employment by, or
     service as a Director of, the Company or a Subsidiary due to
     disability, as the case may be, only to the extent the Optionee was
     entitled to exercise his or her Option immediately prior to such
     occurrence.  To the extent that the Option is not so exercised, it
     shall expire at the end of such 60 day period.  For purposes of this
     Plan, disability shall be as defined in any written employment
     agreement in effect between the applicable Optionee and the Company or
     a Subsidiary, or if such Optionee is not a party to a written
     employment agreement in which disability is defined, an Optionee shall
     be considered disabled if he or she is unable to engage in any
     substantial gainful activity by reason of any medically determinable
     physical or mental impairment that can be expected to result in death
     or that has lasted or can be expected to last for a continuous period
     of not less than 6 months.

          (b)  If an Optionee dies during the 60-day period after the
     termination of his or her position as an Employee or Director of the
     Company or a Subsidiary and at the time of his or her death the
     Optionee was entitled to exercise an Option theretofore granted to him
     or her, the Option shall, unless the applicable Option Agreement
     provides otherwise, expire 60 days after the date on which his or her
     position as an Employee or Director of the Company or a Subsidiary
     terminated, but in no event, later than the date on which the Option
     would have expired if the Optionee had lived.  Until the expiration of
     such 60-day period, the Option may be exercised by the Optionee's
     executor or administrator or by any person or persons who shall have
     acquired the Option directly from the Optionee by bequest or
     inheritance, but only to the extent that the Optionee was entitled to
     exercise the Option at the date of his or her death and, to the extent
     the Option is not so exercised, it shall expire at the end of such 60-
     day period.

     6.4  OTHER TERMINATIONS.  In the event that termination of employment
with the Company occurs other than for Cause or for death or disability
pursuant to Sections 6.1 or 6.3 above, or in the event that the
directorship of an Optionee who is a Director is terminated for reasons
other than the removal, resignation, death or disability of such Director,
the applicable Optionee shall have the right to exercise his or her Option
at any time within 60 days after such termination to the extent he or she
was entitled to exercise the same immediately prior to such termination.
To the extent that the Option is not so exercised, it shall expire at the
end of such 60 day period.

     6.5  SUBJECT TO REPURCHASE.  All shares of Common Stock purchased by
an Optionee or his or her estate or beneficiary shall be subject to
repurchase by the Company pursuant to Section 9.3 of this Plan.

     6.6  ALTERNATIVE PROVISIONS.  The provisions of this Article VI shall
apply to all Options granted under the Plan except to the extent expressly
provided otherwise in any Option Agreement.

                               ARTICLE VII.
                          ADMINISTRATION OF PLAN

     7.1  ADMINISTRATION.  The Plan shall be administered by the Board of
Directors or a Committee of the Board of Directors consisting of not less
than three directors who qualify as Non-Employee Directors (as defined in
Rule 16b-3 promulgated under the Securities Exchange Act of 1934, as
amended) and "outside directors" for purposes of Section 162(m) of the Code
as may be appointed by the Board of the Company, all of whom are members of
the Board.  Any such committee appointed by the Board, or the Board itself
during such periods as no such properly constituted and appointed committee
exists, is herein referred to as the "Committee."  A majority of the
Committee shall constitute a quorum thereof and the actions of a majority
of the Committee approved at a meeting at which a quorum is present, or
actions unanimously approved in writing by all members of the Committee,
shall be the actions of the Committee.  Vacancies occurring on the
Committee shall be filled by the Board.  The Committee shall have full and
final authority (i) to interpret the Plan and each of the Option
Agreements, (ii) to prescribe, amend and rescind rules and regulations, if
any, relating to the Plan, (iii) to make all determinations necessary or
advisable for the administration of the Plan and (iv) to correct any
defect, supply any omission and reconcile any inconsistency in the Plan and
any Option Agreement.  The determination by the Committee in all matters
referred to herein shall be conclusive and binding for all purposes and
upon all persons, including, without limitation, the Company, the
shareholders of the Company, the Committee, and each of the members thereof
and the Optionees and their respective successors in interest.

     7.2  LIABILITY.  No member of the Board or any Committee shall be
liable for anything done or omitted to be done by him or her or by any
other member of the Board or any Committee in connection with the Plan,
except for his or her own willful misconduct or gross negligence (unless
the Company's Articles of Incorporation or Bylaws, or any indemnification
agreement between the Company and such person, in each case in accordance
with applicable law, provides otherwise).  The Board and any Committee
shall have power to engage outside consultants, auditors or other
professional help to assist in the fulfillment of the duties or the Board
or any Committee under the Plan at the Company's expense.

     7.3  DETERMINATIONS.  In making its determinations concerning the
Optionees who shall receive Options as well as the number of shares to be
covered thereby and the time or times at which they shall be granted, the
Committee shall take into account the nature of the services rendered by
the respective Optionees, their past, present and potential contribution to
the Company's success and such other factors as the Committee may deem
relevant.  The Committee shall determine the form of Option Agreements
under the Plan and the terms and conditions to be included therein,
provided such terms and conditions are not inconsistent with the terms of
the Plan, the Company's Articles of Incorporation or Bylaws.  The Committee
may waive any provisions of any Option Agreement, provided such waiver is
not inconsistent with the terms of the Plan, the Company's Articles of
Incorporation or Bylaws.  The determinations of the Committee under the
Plan need not be uniform and may be made by it selectively among persons
who receive, or are eligible to receive, Options under the Plan, whether or
not such persons are similarly situated.

                               ARTICLE VIII.
                     AMENDMENT AND TERMINATION OF PLAN

     8.1  AMENDMENT OF PLAN.  The Plan may be amended at any time and from
time to time by the Board, but no amendment which (i) increases the
aggregate number of shares of Common Stock which may be issued pursuant to
Options granted under the Plan, (ii) decreases the minimum Option exercise
price provided in the Plan, (iii) extends the period during which Options
may be granted pursuant to the Plan, (iv) changes the class of individuals
eligible to be granted Options, or (v) has the effect of any of the above
shall be effective unless and until the same is approved by the affirmative
vote of the holders of a majority of the shares of Common Stock of the
Company, or the unanimous written consent of such holders, in accordance
with the applicable provisions of the Articles of Incorporation and Bylaws
of the Company and applicable state law.  No amendment to the Plan shall,
without the consent of an Optionee, affect such Optionee's rights under an
Option previously granted.

     8.2  TERMINATION.  The Board may, at any time, terminate the Plan as
of any date specified in a resolution adopted by the Board.  If not earlier
terminated, the Plan shall terminate on April 19, 2009.  No Options may be
granted after the Plan has terminated but the Committee shall continue to
supervise the administration of Options previously granted.

     8.3  TAX STATUS OF OPTIONS.  To the extent applicable, the Plan is
intended to permit the issuance of Options to Employees in accordance with
the provisions of Section 422 of the Code.  Subject to the provision of
Section 8.1 of the Plan, the Plan and Option Agreements may be modified or
amended at any time, both prospectively and retroactively, and in a manner
that may affect Options previously granted, if such amendment or
modification is necessary for the Plan and Options granted hereunder to
qualify under said provision of the Code.  All Options granted under the
Plan to Employees shall be intended to qualify as incentive stock options
under Section 422 of the Code to the extent that any portion of the Options
granted meet the requirements of Section 422 of the Code.  To the extent
that any portion of the Options granted under the Plan do not meet the
requirements of Section 422 of the Code, such Options shall be deemed to be
Nonqualified Options.  Nothing in the Plan shall be deemed to prohibit the
issuance of Nonqualified Options to Employees under the Plan.  Any Options
issued to Directors shall be Nonqualified Options.

                                ARTICLE IX.
                         MISCELLANEOUS PROVISIONS

     9.1  RESTRICTIONS UPON GRANT OF OPTIONS.  If the listing upon any
stock exchange or the registration or qualification under any federal or
state law of any shares of Common Stock to be issued on the exercise of
Options granted under the Plan (whether to permit the grant of Options the
issuance of shares of Common Stock to any permitted transferee or the
resale or other disposition of any such shares of Common Stock by or on
behalf of the Optionees receiving such shares) should be or become
necessary or desirable, the Board in its sole discretion may determine that
delivery of the certificates for such shares of Common Stock shall not be
made until such listing, registration or qualification shall have been
completed.  The Company agrees that it will use its reasonable best efforts
to effect any such listing, registration or qualification; provided,
however, that the Company shall not be required to use its reasonable best
efforts to effect such registration under the Securities Act of 1933 other
than on Form S-8 or such other forms as may be in effect from time to time
calling for information comparable to that presently required to be
furnished under Form S-8.  In no event shall the Company be required to
register shares of Common Stock for issuance to a permitted transferee and
any requested exercise of Options by a permitted transferee shall be
subject to any applicable prior registration of the shares of Common Stock
issuable upon such exercise.

     9.2  RESTRICTIONS UPON RESALE OF UNREGISTERED STOCK.  Each Optionee
shall, if the Company deems it advisable, represent and agree in writing
(i) that any shares of Common Stock acquired by such Optionee pursuant to
this Plan will not be sold except pursuant to an effective registration
statement under the Securities Act of 1933 or pursuant to an exemption from
registration under said Act, (ii) that such Optionee is acquiring such
shares of Common Stock for his or her own account and not with a view to
the distribution thereof and (iii) to such other customary matters as the
Company may request.  In such case, no shares of Common Stock shall be
issued to such Optionee unless such Optionee provides such representations
and agreements and the Company is reasonably satisfied that such
representations and agreements are correct.

     9.3  REPURCHASE BY THE COMPANY.

          (a)  The Company shall have the right, exercisable within 60 days
     after the later of (i) the date of Optionee's termination of
     employment with the Company or a Subsidiary or termination of service
     as a Director or (ii) the date of the exercise by any person other
     than Optionee of the Option pursuant to any provision of this Plan, to
     purchase any shares of Common Stock (or securities into which any
     Common Stock has been converted) that were acquired pursuant to the
     exercise of an Option under this Plan ("Option Shares").  To the
     extent that an Optionee holds exercisable Options at the time of
     termination of employment or termination of service as a Director, the
     Company may elect to purchase such exercisable Options in the same
     manner as the Option Shares at a price equal to the Repurchase Price
     (as hereinafter defined) less the exercise price of such exercisable
     Options.

          (b)  The Repurchase Price for the purchase of the Option Shares
     shall be determined as follows:

               (i)  if the Common Stock has been registered pursuant to a
          registration statement filed under the Securities Act of 1933, as
          amended, and the rules and regulations of the Securities and
          Exchange Commission thereunder (the "Act"), then the Repurchase
          Price per share shall be equal to the average closing price per
          share of the Common Stock for the 30 days preceding the date of
          termination of employment by the Company or a Subsidiary as
          published in the Wall Street Journal; or

               (ii) if the Common Stock has not been registered under the
          Act, then the price shall be the book value per share of Common
          Stock as of the last day of the month during which termination of
          employment with the Company or a Subsidiary (or termination of
          service as a Director occurs) as determined by the formula:

               P    =    A - L
                         -----
                           S
               P    =    the purchase price (book value) per Option
                         Share,
               A    =    the total assets of the Company and its
                         Subsidiaries (determined pursuant to generally
                         accepted accounting principles) shown on the
                         Company's balance sheet for the most recent fiscal
                         year ended,
               L    =    the total liabilities of the Company and its
                         Subsidiaries (determined pursuant to generally
                         accepted accounting principles) shown on the
                         Company's balance sheet for the most recent fiscal
                         year ended,
               S    =    the total number of shares of capital stock
                         of the Company outstanding on a fully diluted
                         basis as shown on the Company's balance sheet for
                         the most recent fiscal year ended and as adjusted
                         for any capital transactions, dividends, or
                         reclassification of stock subsequent to such date.

          (c)  To the extent that the Company has the right to purchase
     Option Shares, the Company may exercise such right by delivery (upon
     or within sixty days after the later of Optionee's termination of
     employment with the Company or a Subsidiary (or termination of service
     as a Director) or exercise by a person other than Optionee of the
     Option) of written notice to the Optionee (or such other person
     exercising such Option) stating the full number of Option Shares that
     the Company has elected to purchase, the purchase price per Option
     Share, and the time of purchase (which time shall not be earlier than
     5 days from the date of notice).  At the time of purchase, the
     Optionee shall deliver the certificate or certificates representing
     his Option Shares to the Company at its offices and shall execute any
     stock powers or other instruments as may be necessary to transfer full
     ownership of the Option Shares to the Company.  At the time of
     purchase, the Company shall issue its own check within 60 days to the
     Optionee in an amount equal to the aggregate purchase price for the
     Option Shares for which the Company has exercised its right to
     purchase, less any amounts required to be withheld under applicable
     laws.  In the event of Optionee's death or disability, the Company's
     right to purchase and the manner of purchase shall apply with regard
     to the Optionee's estate, beneficiary, administrator or personal
     representative.

     9.4  ADJUSTMENTS.  The number of shares of Common Stock of the Company
authorized for issuance under the Plan, as well as the price to be paid and
the number of shares issued upon exercise of outstanding Options, shall be
subject to adjustment by the Committee, in its sole discretion, to reflect
any stock split, stock dividend, recapitalization, merger consolidation,
reorganization, combination or exchange of shares or other similar event.

     9.5  USE OF PROCEEDS.  The proceeds from the sale of Common Stock
pursuant to Options granted under the Plan shall constitute general funds
of the Company and may be used for such corporate purposes as the Company
may determine.

     9.6  SUBSTITUTION OF OPTIONS.

          (a)  The Committee may, with the consent of the holder of any
     Option granted under the Plan, cancel such Option and grant a new
     Option in substitution therefor, provided that the Option as so
     substituted shall satisfy all of the requirements of the Plan as of
     the date such new Option is granted.

          (b)  Options may be granted under the Plan in substitution for
     options held by individuals who are employees or directors of another
     corporation and who become Employees or Directors of the Company or
     any Subsidiary of the Company eligible to receive Options pursuant to
     the Plan as a result of a merger, consolidation, reorganization or
     similar event.  The terms and conditions of any Options so granted may
     vary from those set forth in the Plan to the extent deemed appropriate
     by the Committee in order to conform the provisions of Options granted
     pursuant to the Plan to the provisions of the options in substitution
     for which they are granted.

     9.7  RESTRICTIVE LEGENDS.

          (a)  Certificates representing shares of Common Stock delivered
     pursuant to the exercise of Options shall bear an appropriate legend
     referring to the terms, conditions and restrictions described in this
     Plan.  Any attempt to dispose of any such shares of Common Stock in
     contravention of the terms, conditions and restrictions described in
     the Plan shall be ineffective, null and void, and the Company shall
     not effect any such transfer on its books.

          (b)  Any shares of Common Stock of the Company received by an
     Optionee (or his or her heirs, legatees, distributees or
     representative) as a stock dividend on, or as a result of a stock
     split, combination, exchange of shares, reorganization, merger,
     consolidation or otherwise with respect to, shares of Common Stock
     received pursuant to the exercise of Options, shall be subject to the
     terms and conditions of the Plan and bear the same legend as the
     shares received pursuant to the exercise of Options.

     9.8  NOTICES.  Any notice required or permitted hereunder shall be
sufficiently given only if sent by registered or certified mail, return
receipt requested, postage prepaid, addressed to the Company at its
principal place of business, and to the Optionee at the address on file
with the Company at the time of grant hereunder, or to such other address
as either party may hereafter designate in writing by notice similarly
given by one party to the other.

     9.9  EFFECTIVE DATES.  The Plan is effective on April 19, 1999,
subject to any required shareholder approval.

     IN WITNESS WHEREOF, upon authorization of the Board of Directors and
the Shareholders of the Company, the undersigned has caused the Millers
American Group, Inc. 1999 Stock Option Plan to be executed effective as of
the 19th day of April 1999.

                              By:  /S/ DAVID N. THOMPSON
                                   -----------------------------------
                                   David N. Thompson
                                   President and Chief Executive OfficerEXHIBIT 10.2

                                   LOAN AGREEMENT

      This LOAN AGREEMENT, dated as of September 17, 1999, is among MILLERS
AMERICAN GROUP, INC., a Texas corporation ("Borrower") and LASALLE BANK NATIONAL
ASSOCIATION, a national banking association ("LaSalle"), as a Lender and as
agent for all Lenders (this and all other capitalized terms used herein are
defined in Section 1.1 below).

                               PRELIMINARY STATEMENT:

     A. Borrower has requested Lenders to make available to Borrower up to
$30,000,000 in the form of a revolving line of credit, the proceeds of which
will be used for the purposes described herein.

     B. Lenders are willing to provide such revolving line of credit to Borrower
on the terms and subject to the conditions set forth in this Loan Agreement.

      NOW THEREFORE, it is agreed as follows:

                                    ARTICLE I

                           DEFINITIONS AND DETERMINATIONS

      1.1 DEFINITIONS. As used in this Loan Agreement and in the other Loan
Instruments, unless otherwise expressly indicated herein or therein, the
following terms shall have the following meanings (such meanings to be
applicable equally to both the singular and plural forms of the terms defined):

      ACCOUNTANTS:      Deloitte  &  Touche  LLP  or  any  other   independent
certified   public   accounting  firm  selected  by  Borrower  and  reasonably
satisfactory to Agent.

      ACCOUNTING CHANGES:     as defined in Section 1.3.

      ACQUISITION: any transaction or series of related transactions for the
purpose of or resulting, directly or indirectly, in (a) the acquisition of all
or substantially all of the assets of a Person, or of all or substantially all
of any business or division of a Person, (b) the acquisition of in excess of 50%
of the voting common stock, general partnership interests, common membership
interests or other common voting equity of any Person, or otherwise causing any
Person to become a Subsidiary, or (c) a merger or consolidation or any other
combination with another Person (other than a Person that is a Subsidiary).

      ADMITTED ASSETS: those assets prescribed or permitted to be reflected on
the financial statements of a Texas property and casualty insurance company (and
with respect to Phoenix, an Arizona property and casualty insurance company)
pursuant to Statutory Accounting Practices.

      AFFILIATE: any Person that directly or indirectly, through one or more
intermediaries, controls or is controlled by or is under common control with
another Person. The term "control" means possession, direct or indirect, of the
power to direct or cause the direction of the management and policies of a
Person, whether through the ownership of voting securities or equity interests,
by contract or otherwise. For the purposes hereof, any Person which owns or
controls, directly or indirectly, 25% or more of the securities or equity
interests, as applicable, whether voting or non-voting, of any other Person
shall be deemed to "control" such Person.

      AGENT:      LaSalle, as agent for the Lenders.

      ANNUALIZED NET WRITTEN PREMIUMS:  as of the end of any quarter,  the sum
of the Net Written Premiums for such quarter and the preceding three quarters.

      APPLICABLE MARGIN: the respective LIBOR Rate Margin, Prime Rate Margin and
Non-Use Fee Rate from time to time established at any time based on the
Consolidated Leverage Ratio in accordance with the following table:

--------------------------------------------------------------------------------
    Consolidated      LIBOR Rate Margin   Prime Rate Margin   Non-Use Fee Rate
   Leverage Ratio
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------

    <= .20 : 1.0            1.50%                0%                 .20%
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------

  > .20 : 1.0 but

    <= .25 : 1.0            1.75%               .25%                .25%
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------

  > .25 : 1.0 but

    <= .30 : 1.0            2.00%               .50%                .30%
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------

  > .30 : 1.0 but

    <= .35 : 1.0            2.25%               .75%                .35%
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------

    > .35 : 1.0             2.50%               1.00%               .40%
--------------------------------------------------------------------------------

      Notwithstanding anything to the contrary in this Loan Agreement, from the
      Closing Date to the first Adjustment Date (as defined below), the
      Borrower's Consolidated Leverage Ratio shall be deemed to be greater than
      0.25 to 1.00 but less than or equal to 0.30 to 1.00. Changes in the
      Applicable Margin resulting from changes in Borrower's Consolidated
      Leverage Ratio shall become effective after September 30, 1999 on the date
      (the "Adjustment Date") on which financial statements, attached to the
      Compliance Certificate, are received by the Agent and LaSalle pursuant to
      Section 6.3.1 and Section 6.3.2 (but in any event no later than the 60th
      day after the end of each of the first three quarterly periods of each
      fiscal year beginning for purposes hereof with the quarter ending
      September 30, 1999 or the 120th day after the end of each fiscal year, as
      the case may be) and shall remain in effect until the next change to be
      effected pursuant to this paragraph. If any financial statements referred
      to above are not delivered within the time periods specified above, then,
      until such financial statements are delivered, Borrower's Consolidated
      Leverage Ratio as at the end of the fiscal period that would have been
      covered thereby shall for the purpose of this definition be deemed to be
      greater than 0.35 to 1.00.

      ARIZONA HOLDING COMPANY ACT:  as defined in Section 5.9.

      ASSIGNEE:   any Person  reasonably  acceptable  to  Borrower  to which a
Loan Assignment is made in compliance with the provisions of subsection 9.1.1.

      BANK OF AMERICA:  Bank of America.

      BANK OF AMERICA AGREEMENT:    that certain Loan  Agreement,  dated as of
July 1, 1996,  by and between  NationsBank  of Texas,  N.A.,  and Millers,  as
amended,  modified,  supplemented,  restated,  extended or replaced (including
replacement after the termination of such agreement).

      BANKRUPTCY CODE:  the United  States  Bankruptcy  Code and any successor
statute  thereto,  and the  rules and  regulations  issued  thereunder,  as in
effect from time to time.

      BORROWER:   see PREAMBLE.

      BORROWER CAPITAL STOCK: all of the  issued  and  outstanding  shares  of
capital stock of Borrower.

      BORROWER'S OBLIGATIONS: (i) any and all Indebtedness due or to become due,
now existing or hereafter arising, of Borrower to Lenders and/or Agent pursuant
to the terms of this Loan Agreement or any other Loan Instrument and (ii) the
performance of the covenants of Borrower contained in the Loan Instruments.

      BUSINESS: the business of marketing, underwriting and issuing property and
casualty insurance and related business and other businesses that can reasonably
be expected to enhance or provide synergies with the business of marketing,
underwriting and issuing property and casualty insurance and related businesses.

      BUSINESS DAY: (i) except as provided in clause (ii), any day other than a
Saturday, Sunday or other day on which banks in Chicago, Illinois are required
to close, and (ii) with respect to all notices, determinations, fundings and
payments in connection with a LIBOR Loan, any day which is a Business Day
described in clause (i) and which is also a day for trading by and between banks
in Dollar deposits in the applicable interbank Eurodollar market.

      CAPITAL EXPENDITURES: payments that are made or liabilities that are
incurred by Borrower or any Subsidiary for the lease, purchase, improvement,
construction or use of any Property, the value or cost of which under GAAP is
required to be capitalized and appear on Borrower's consolidated balance sheet
in the category of property, plant or equipment, without regard to the manner in
which such payments or the instruments pursuant to which they are made are
characterized by Borrower or any other Person. A Capital Expenditure shall be
deemed to be made as of the time the Property which is the subject thereof is
put into service by Borrower or any Subsidiary.

      CAPITALIZED LEASE:      any lease of Property,  the  obligations for the
rental of which are required to be capitalized in accordance with GAAP.

      CERTIFICATE OF AUTHORITY:     a   License   issued   by  a  U.S.   state
authorizing  the  licensee  to  conduct  a  property  and  casualty  insurance
business  in such  state  and  describing  the  lines or  types  of  insurance
authorized.

      CERTIFICATE OF AUTHORIZATION AND DEPOSIT: a certificate issued by the
Arizona Department of Insurance (i) setting forth the lines or types of
insurance which Phoenix is authorized to transact in such state at the time of
issuance of the Certificate of Authorization and Deposit, (ii) stating that
Phoenix is, at the time of issuance of the Certificate of Authorization and
Deposit authorized to transact such lines or types of insurance in Arizona and
(iii) the amount of securities that Phoenix has deposited with the Department of
Insurance.

      CERTIFICATE OF COMPLIANCE:    a  certificate  issued by state  insurance
regulatory  officials (i) setting forth the license of each of Millers and its
Subsidiaries and (ii) stating that such license is valid.

      CHIEF FINANCIAL OFFICER:      the duly  elected and acting  treasurer or
chief financial officer of Borrower.

      CLOSING:    the disbursement of the initial Loan.

      CLOSING DATE:     the date the initial Loan is disbursed.

      CLOSING CERTIFICATE:    a  Closing  Certificate  in form  and  substance
acceptable to Agent.

      CLOSING FEE:      as defined in subsection 2.7.1.

      CODE: the Internal  Revenue Code of 1986, as amended,  and any successor
statute  thereto,  and the  rules and  regulations  issued  thereunder,  as in
effect from time to time.

      COLLATERAL: as  defined  in the Pledge  Agreements  and in the  Security
Agreement.

      COMMITMENT: at any time with respect to a Lender, the principal amount set
forth beside such Lender's name under the heading "Commitment" on the signature
page of this Loan Agreement or on the signature page of the Lender Addition
Agreement pursuant to which such lender became a Lender hereunder.

      COMMITMENTS:      the  aggregate   amount  of  the  Commitments  of  all
Lenders.

      COMPANY ACTION LEVEL OR COMPANY ACTION LEVEL EVENT: as defined in any
risk-based capital law in effect in Texas or Arizona with respect to property
and casualty insurance companies, or, if no such law is in effect, as defined in
the NAIC's Risk-Based Capital for Property/Casualty Insurers Model Act.

      COMPLIANCE CERTIFICATE: a Compliance  Certificate in the form of Exhibit
1.1A.

      COMPUTATION PERIOD:     means  each  period of four  consecutive  Fiscal
Quarters ending on the last day of a Fiscal Quarter.

      CONSOLIDATED EBITDA: for any period, Consolidated Net Income for such
period plus, without duplication and to the extent reflected as a charge in the
statement of such Consolidated Net Income for such period, the sum of (a) total
income tax expense, (b) interest expense, amortization or write-off of debt
discount and debt issuance costs and commissions, discounts and other fees and
charges associated with Indebtedness for Borrowed Money (including the Loan),
(c) depreciation expense, (d) amortization of intangibles (including, but not
limited to, goodwill) and organization costs, (e) any extraordinary, unusual or
non-recurring cash expenses or losses (including, whether or not otherwise
includable as a separate item in the statement of such Consolidated Net Income
for such period, losses on sales of assets outside of the ordinary course of
business), net of income tax effect therefrom, and (f) any other non-cash
charges, all as determined on a consolidated basis for Borrower and its
Subsidiaries in accordance with GAAP; and minus, to the extent included in the
statement of such Consolidated Net Income for such period, (g) any extraordinary
income or gains (including, whether or not otherwise includable as a separate
item in the statement of such Consolidated Net Income for such period, gains on
the sales of assets outside of the ordinary course of business), net of income
tax effect therefrom.

      CONSOLIDATED FIXED CHARGE RATIO: For any period the sum of (x) Dividend
Capability of Millers and Phoenix PLUS Consolidated Non-Insurance EBITDA LESS
cash taxes paid and Capital Expenditures of Borrower and its Non-Insurance
Subsidiaries divided by (y) anticipated Consolidated Fixed Charges for the
ensuing 12 months.

      CONSOLIDATED FIXED CHARGES:   means for any period the Fixed  Charges of
Borrower and its Non-Insurance Subsidiaries on a consolidated basis.

      CONSOLIDATED LEVERAGE RATIO:  The  Leverage  Ratio of  Borrower  and its
Subsidiaries on a consolidated basis.

      CONSOLIDATED NET INCOME:      for  any  period,   the  consolidated  net
income  (or  loss)  of  the  Borrower  and  each  Subsidiary  determined  on a
consolidated  basis in a manner  acceptable to Lenders in accordance with GAAP
and Statutory Accounting Practices.

      CONSOLIDATED NET WORTH: net  worth  of  Borrower  and  its  Subsidiaries
computed in accordance  with GAAP on a  consolidated  basis without  regard to
SFAS 130 and 133.

      CONSOLIDATED NON-INSURANCE EBITDA: for any period, Consolidated Net Income
for such period plus, without duplication and to the extent reflected as a
charge in the statement of such Consolidated Net Income for such period, the sum
of (a) total income tax expense, (b) interest expense, amortization or write-off
of debt discount and debt issuance costs and commissions, discounts and other
fees and charges associated with Indebtedness for Borrowed Money (including the
Loan), (c) depreciation expense, (d) amortization of intangibles (including, but
not limited to, goodwill) and organization costs, (e) any extraordinary, unusual
or non-recurring cash expenses or losses (including, whether or not otherwise
includable as a separate item in the statement of such Consolidated Net Income
for such period, losses on sales of assets outside of the ordinary course of
business), net of income tax effect therefrom, and (f) any other non-cash
charges, all as determined on a consolidated basis for Borrower and its
Non-Insurance Subsidiaries in accordance with GAAP; and MINUS, to the extent
included in the statement of such Consolidated Net Income for such period, the
sum of (g) interest income, and (h) any extraordinary income or gains
(including, whether or not otherwise includable as a separate item in the
statement of such Consolidated Net Income for such period, gains on the sales of
assets outside of the ordinary course of business), net of income tax effect
therefrom, all as determined on a consolidated basis for Borrower and
Non-Insurance subsidiaries in accordance with GAAP.

      CONTINGENT LIABILITIES: any agreement, undertaking or arrangement by which
any Person guarantees, endorses or otherwise becomes or is contingently liable
upon (by direct or indirect agreement, contingent or otherwise, to provide funds
for payment, to supply funds to or otherwise to invest in a debtor, or otherwise
to assure a creditor against loss) any indebtedness, obligation or other
liability of any other Person (other than by endorsements of instruments in the
course of collection), or guarantees the payment of dividends or other
distributions upon the shares of any other Person. The amount of any Person's
obligation in respect of any Contingent Liability shall (subject to any
limitation set forth therein) be deemed to be the principal amount of the debt,
obligation or other liability supported thereby. The amount shall not include
the Outstanding Letters of Credit so long as they are not amended, modified,
drawn against or extended.

      DEFAULT RATE:     a per  annum  rate  equal to 2.0%  plus (i) the  Prime
Rate on the Prime  Rate  Portion  and (ii) the  applicable  LIBOR Rate on each
LIBOR Rate Loan.

      DEFAULT RATE PERIOD:    a period of time  commencing on the date that an
Event of  Default  has  occurred  and  ending on the date  that such  Event of
Default is cured or waived.

      DIVIDEND CAPABILITY: the amount of dividends which Millers, Phoenix or any
Insurance Subsidiary is permitted to declare and pay pursuant to the insurance
laws and regulations of the States of Texas or Arizona, as appropriate (as such
laws and regulations may be amended from time to time), and which do not
constitute "extraordinary dividends" as defined in Article 21.49-1, Section 4(c)
of the Texas Insurance Code or Section 20-481.19 of the Arizona Insurance Code
(or any successor statutory sections thereto).

      DOLLARS AND "$": lawful currency of the United States of America.

      EBITDA:     means earnings before interest expense, taxes,  depreciation
and amortization, as calculated in accordance with GAAP.

      EMPLOYEE BENEFIT PLAN: any employee benefit plan within the meaning of
Section 3(3) of ERISA which (i) is maintained for employees of Borrower or any
ERISA Affiliate, or (ii) has at any time within the preceding six years been
maintained for the employees of Borrower or any current or former ERISA
Affiliate.

      ENVIRONMENTAL LAWS:     any and all  federal,  state and local laws that
relate to or impose  liability or standards  of conduct  concerning  public or
occupational  health and safety or  protection of the  environment,  as now or
hereafter  in effect and as have been or hereafter  may be amended  including,
without limitation,  the Comprehensive  Environmental  Response,  Compensation
and  Liability  Act  (42  U.S.C.ss.9601  ET  SEQ.),  the  Hazardous  Materials
Transportation Act (42 U.S.C.ss.1802 ET SEQ.), the Resources  Conservation and
Recovery Act (42 U.S.C.ss.6901 ET SEQ.),  the Federal Water Pollution  Control
Act (33 U.S.C.ss.1251 ET SEQ.),  the Toxic  Substances  Control Act (15 U.S.C.
ss.2601 ET SEQ.),  the Clean Air Act (42  U.S.C.ss.7901 ET SEQ.),  the  National
Environmental  Policy Act (42 U.S.C.ss.4231 ET SEQ.), the Refuse Act (33 U.S.C.
ss.407 ET SEQ.),  the Safe Drinking Water Act (42 U.S.C.ss.300(f) ET SEQ.),  the
Occupational  Safety and Health Act (29 U.S.C.ss.651 ET SEQ.),  and all rules,
regulations,   codes,   ordinances  and  guidance  documents   promulgated  or
published thereunder, and the provisions of any licenses,  permits, orders and
decrees issued pursuant to any of the foregoing.

      ERISA:      the Employee  Retirement  Income  Security  Act of 1974,  as
amended,  and any successor  statute  thereto,  and the rules and  regulations
issued thereunder, as in effect from time to time.

      ERISA AFFILIATE: any Person who is a member of a group which is under
common control with Borrower, who together with Borrower is treated as a single
employer within the meaning of Section 414(b), (c), (m) and (o) of the Code.

      EVENT OF DEFAULT: any of the Events of Default set forth in Section 8.1.

      EXCESS INTEREST:  as defined in subsection 2.3.3.

      EXISTING INDEBTEDNESS:  the  obligations  of  Borrower  and  each of its
Subsidiaries described in Exhibit 5.16.

      FEE LETTER: that  certain  letter  agreement  dated of even date between
the  Borrower  and the  Agent,  as  amended  from time to time,  or any letter
agreements executed in substitution or replacement therefor.

      FHLB: Federal Home Loan Bank of Dallas.

      FHLB AGREEMENT: that certain Advances, Specific Collateral Pledge and
Security Agreement, dated as of December 20, 1995, between the FHLB and Millers,
as amended, modified, supplemented, restated, extended or replaced (including
replacement after the termination of such agreement).

      FISCAL QUARTER:   any  fiscal   quarter  of   Borrower   for   financial
accounting purposes.

      FISCAL YEAR:      the fiscal year of Borrower  and each  Subsidiary  for
financial  accounting  purposes,  which  fiscal  year  ends on the last day of
December.

      FIXED CHARGES: for any Computation Period, without duplication, the sum of
(i) Interest Expenses of the Borrower and its Non-Insurance Subsidiaries for
such Computation Period, PLUS (ii) scheduled amortization of Indebtedness for
Borrowed Money of the Borrower and its Non-Insurance Subsidiaries for such
Computation Period.

      FUNDING DATE:     the date of disbursement of a Loan.

      GAAP: generally accepted accounting principles in the United States of
America as in effect from time to time, which shall include but shall not be
limited to the official interpretations thereof by the Financial Accounting
Standards Board or any successor thereto.

      GOOD FUNDS: Dollars  available in Federal  funds to LaSalle at or before
12:00 noon, Chicago, Illinois time, on a Business Day.

      GOVERNMENTAL BODY:      any foreign,  federal, state, municipal or other
government,  or any department,  commission,  board,  bureau,  agency,  public
authority or instrumentality  thereof,  any court of any of the aforementioned
entities or any arbitrator.

      GUARANTOR:  Trilogy.

      GUARANTY:   that certain Guaranty executed by Trilogy.

      HAZARDOUS MATERIALS:    any hazardous,  toxic, dangerous or other waste,
substance or material  defined as such in, regulated by or for purposes of any
Environmental Law.

      HEDGING AGREEMENT:      any interest  rate,  currency or commodity  swap
agreement,  cap  agreement  or collar  agreement,  and any other  agreement or
arrangement  designed  to protect a Person  against  fluctuations  in interest
rates, currency exchange rates or commodity prices.

      HEDGING OBLIGATIONS:    with  respect to any Person,  any  liability  of
such Person under any Hedging Agreement.

      HOLDING COMPANY:  as defined in Section 5.9.

      INCIPIENT DEFAULT:      any event or  condition  which,  with the giving
of notice or the lapse of time, or both, would become an Event of Default.

      INDEBTEDNESS: all liabilities, obligations and reserves, contingent or
otherwise, which, in accordance with GAAP, would be reflected as a liability on
a balance sheet or would be required to be disclosed in a financial statement,
including, without duplication: (i) Indebtedness for Borrowed Money, (ii)
obligations secured by any Lien upon Property, (iii) letter of credit
obligations and Contingent Liabilities, (iv) all Hedging Obligations, and (v)
liabilities in respect of unfunded vested benefits under any Pension Plan or in
respect of withdrawal liabilities incurred under ERISA by Borrower or any ERISA
Affiliate, to any Multiemployer Plan.

      INDEBTEDNESS FOR BORROWED MONEY: without duplication, all Indebtedness (i)
in respect of money borrowed, (ii) evidenced by a note, debenture or other like
written obligation to pay money (iii) in respect of rent or hire of Property
under Capitalized Leases or for the deferred purchase price of Property, (iv) in
respect of obligations under conditional sales or other title retention
agreements, and (v) all guaranties of any or all of the foregoing.

      INSPIRE:    INSpire Insurance Solutions, Inc., a Texas corporation.

      INSURANCE SUBSIDIARIES: as to any Person, a corporation, partnership,
limited liability company or partnership or other entity the ability of which to
pay dividends is regulated by a state insurance department or other Governmental
Body that regulates insurance companies or that is otherwise required to be
regulated thereby in accordance with the statutes of its state of domicile of
which 50% of the voting common stock, general partnership interests, common
membership interests or other common voting equity is at the time owned directly
or indirectly through one or more intermediaries by such Person. Unless
otherwise qualified, all references to an "Insurance Subsidiary" or to
"Insurance Subsidiaries" in this Agreement shall refer to an Insurance
Subsidiary or Insurance Subsidiaries of the Borrower.

      INTEREST EXPENSES:      for any Computation  Period for any Person,  the
consolidated net interest payable for such Computation  Period for such Person
determined  in  accordance  with GAAP,  excluding,  however,  any interest not
required to be paid in cash.

      INTEREST RATE DETERMINATION DATE:   the  date  for  calculating  a LIBOR
Rate,  which date shall be two Business Days prior to the date of commencement
of the applicable LIBOR Interest Period.

      INVESTMENT POLICY:      the Millers and the Millers  Casualty  Insurance
Company  Investment  Policy  Statement  and  Investment  Portfolio  Guidelines
attached  hereto as Exhibit  1.1B.,  as such may be amended  from time to time
by, as applicable,  the Borrower or any of its Insurance Subsidiaries in their
sole  discretion  so long as notice of such  amendments  are provided to Agent
within ten (10) days of the last day of each quarter.

      IRIS: as defined in Section 6.3.10.

      LASALLE:    see PREAMBLE.

      LEASEHOLD PROPERTY:     any real estate  which is the subject of a lease
under which Borrower or any Subsidiary is the lessee.

      LENDER ADDITION AGREEMENT:    an  agreement  executed by a Lender and an
Assignee pursuant to which a Loan Assignment is made.

      LENDERS:    LaSalle and each Assignee.

      LENDERS' DECISIONS: all determinations to be made by the Lenders pursuant
to the terms of the Loan Instruments, including, without limitation, any
amendment or modification of any of the Loan Instruments, determinations with
respect to the declaration of Events of Default and acceleration of Borrower's
Obligations, or any other obligation of Borrower, waivers of affirmative or
negative covenants or other provisions of the Loan Instruments, advancement of
funds pursuant to any of the Loan Instruments or the exercise of any rights or
remedies granted to the Lenders or the Agent pursuant to the terms of any of the
Loan Instruments.

      LEVERAGE RATIO: For any Person the result obtained when (A) the sum of
Indebtedness for Borrowed Money plus Contingent Liabilities as of the last day
of a fiscal quarter is divided by (B) the sum of (i) Indebtedness for Borrowed
Money of such Person plus (ii) Consolidated Net Worth of such Person, as of such
day.

      LIBOR ELECTION: an election by Borrower pursuant to subsection 2.4.1 to
borrow at the LIBOR Rate or to have a portion of the Principal Balance bear or
continue to bear interest at the LIBOR Rate.

      LIBOR INTEREST PERIOD: (i) a period commencing (A) on the applicable
Funding Date, if Borrower prior thereto has elected pursuant to subsection 2.4.1
to have all or a portion of the Loan to be disbursed on such date bear interest
from such date at a LIBOR Rate, (B) with respect to the conversion of all or a
portion of the Prime Rate Portion to a LIBOR Loan, on the Business Day specified
by Borrower in the applicable Notice of Borrowing and (C) with respect to the
continuation as a LIBOR Loan of all or a portion of a then existing LIBOR Loan
after the expiration of the LIBOR Interest Period applicable to such existing
LIBOR Loan, on the last day of the LIBOR Interest Period applicable to such
existing LIBOR Loan, and (ii) ending one, two, three or six months thereafter,
as selected by Borrower in its Notice of Borrowing; provided, however:

            (1) if any LIBOR Interest Period otherwise would end on a day that
      is not a Business Day, such LIBOR Interest Period shall end on the next
      succeeding Business Day, unless the result of such extension would be to
      carry such LIBOR Interest Period into another calendar month, in which
      event such LIBOR Interest Period shall end on the immediately preceding
      Business Day; and

            (2) any LIBOR Interest Period that otherwise would extend beyond the
      Maturity Date shall end on the Maturity Date.

      LIBOR LOAN: each portion of the Principal  Balance which bears  interest
at a LIBOR Rate.

      LIBOR RATE: for each LIBOR Interest Period a rate of interest equal to
(i)(A) the rate per annum determined by Agent (rounded to the nearest 1/100th of
1%) at which Dollar deposits for the relevant LIBOR Interest Period and in an
amount comparable to the amount of the applicable LIBOR Loan are offered by
first class banks in immediately available funds in the London Interbank Market
as quoted at approximately 11:00 A.M. (London time) on the applicable Interest
Rate Determination Date, divided by (B) 1.00 minus the LIBOR Reserve
Requirements in effect on the applicable Interest Rate Determination Date plus
(ii) the applicable LIBOR Rate Margin.

      LIBOR RATE MARGIN:      the rate per annum  applicable to LIBOR Loans as
established by the Applicable Margin.

      LIBOR RESERVE REQUIREMENTS: for any day as applied to a LIBOR Loan, the
aggregate (without duplication) of the rates (expressed as a decimal fraction)
of reserve requirements in effect on such day (including, without limitation,
basic, supplemental, marginal and emergency reserves under any regulations of
the Board of Governors of the Federal Reserve System of the United States or
other Governmental Body having jurisdiction with respect thereto) prescribed for
eurocurrency funding (currently referred to as "Eurocurrency Liabilities" in
Regulation D of said Board) maintained by a member bank of the Federal Reserve
System.

      LICENSES:   all    licenses,    permits,    consents,    approvals   and
authorizations  issued  by  any  Governmental  Body  in  connection  with  the
operation of the Business, including any Certificates of Authority.

      LIEN: any mortgage,  pledge,  assignment,  lien, charge,  encumbrance or
security  interest of any kind,  or the  interest of a vendor or lessor  under
any  conditional  sale agreement,  Capitalized  Lease or other title retention
agreement.

      LOAN: individually,  any advance to be made by Lenders to Borrower under
Section 2.1, and collectively,  all advances to be made by Lenders to Borrower
pursuant to Section 2.1.

      LOAN AGREEMENT:   this Loan Agreement and any amendments or supplements

      LOAN ASSIGNMENT:  the  assignment  by a Lender to an Assignee of (i) any
portion of such Lender's  interest in Borrower's  Obligations  and (ii) any of
such Lender's other rights under any of the Loan Instruments.

      LOAN INSTRUMENTS: collectively, the following documents:

      (i)       Loan Agreement;

      (ii)      Notes;

      (iii)     Pledge Agreement;

      (iv)      Security Agreement;

      (v)       Guaranty;

      (vi)      UCC Financing Statements;

      (vii)     Closing Certificate;

      (viii)    Solvency Certificate;

      (ix)      such other  instruments  and  documents  as Lenders,  Agent
                and/or Borrower have executed; and

      (x)       such other  instruments  and documents as Lenders  reasonably
                may require.

      MATERIAL ADVERSE EFFECT: (i) a material adverse effect upon the Business,
operations, Property, profits or financial condition of Borrower and its
Subsidiaries taken as a whole or (ii) a material impairment of the ability of
Borrower to perform its obligations under any Loan Instrument listed in clauses
(i) through (ix) of the definition thereof or of Agent to enforce or collect
Borrower's Obligations taken as a whole.

      MATURITY DATE:    the  earlier of (i) July 1, 2005,  or (ii) the date on
which Borrower's Obligations are accelerated pursuant to this Loan Agreement.

      MAXIMUM AMOUNT OF THE COMMITMENTS:  as defined in Section 2.1.

      MAXIMUM RATE:     as defined in subsection 2.3.3.

      MILLERS:    The Millers  Insurance  Company,  a Texas stock property and
casualty  insurance  company  and  a  wholly  owned  Insurance  Subsidiary  of
Guarantor.

      MILLERS CAPITAL STOCK:  all of the  issued  and  outstanding  shares  of
capital stock of Millers and any subordinated  surplus debt instrument  issued
by Millers.

      MULTIEMPLOYER PLAN:     any  multiemployer  plan as defined  pursuant to
Section  3(37) of ERISA to which  Borrower or any ERISA  Affiliate  makes,  or
accrues an obligation to make  contributions,  or has made, or been  obligated
to make, contributions within the preceding six years.

      NAIC: the National Association of Insurance Commissioners.

      NET INCOME: for any  period,  the  consolidated  net income (or loss) of
Borrower and its  Subsidiaries  after  provision for, or benefit from,  income
taxes, determined in accordance with GAAP.

      NET WRITTEN PREMIUMS: the total premiums on all policies written by
Millers and Phoenix during a specified period, including premiums for
reinsurance assumed by Millers and Phoenix, but net of (not including) premiums
for reinsurance ceded to other insurers or reinsurers by Millers and Phoenix.

      NON-INSURANCE SUBSIDIARIES: as to any Person, a corporation, partnership,
limited liability company or partnership or other entity engaged in a business
other than a business in the insurance industry of which 50% of the voting
common stock, general partnership interests, common membership interests or
other common voting equity is at the time owned directly or indirectly through
one or more intermediaries by such Person. Unless otherwise qualified, all
references to a "Non-Insurance Subsidiary" or to "Non-Insurance Subsidiaries" in
this Agreement shall refer to a Non-Insurance Subsidiary or Non-Insurance
Subsidiaries of the Borrower.

      NON-USE FEE RATE: means  the  rate  per  annum  as  established  by  the
Applicable Margin.

      NOTE: collectively,   the  promissory  notes  executed  by  Borrower  to
evidence the Loan, in form and substance acceptable to Lenders.

      NOTICE OF BORROWING:    a notice of borrowing  by Borrower to Agent,  in
the form of Exhibit 1.1C.

      OPERATING AGREEMENTS:   all  office  leases,   equipment   leases,   and
similar  agreements  relating to the  operation of the  Business  conducted by
Borrower and each Subsidiary.

      OPERATING LEASE:  any lease  which,  under GAAP,  is not  required to be
capitalized.

      OUTSTANDING LETTERS OF CREDIT:      collectively,      that      certain
Irrevocable Standby Letter of Credit, No. 127006944,  effective as of February
8, 1999, of the FHLB in favor of The Connecticut  Indemnity Company and/or The
Fire and Casualty  Insurance of Connecticut on the account of Millers and that
certain  Irrevocable  Standby  Letter of  Credit,  No.  934291,  effective  on
December 31, 1998 and dated February 19, 1999, of  NationsBank,  N.A. in favor
of The Connecticut  Indemnity  Company and/or The Fire and Casualty  Insurance
of Connecticut on the account of Millers.

      PARTICIPANT:      any Person to which a Lender sells a Participation.

      PARTICIPATION:    a sale by a Lender of a participating  interest in (i)
any portion of such Lender's  interest in Borrower's  Obligations and (ii) any
of such Lender's other rights under any of the Loan Instruments.

      PARTICIPATION AGREEMENT:      an  agreement  executed  by a Lender and a
Participant pursuant to Section 9.2.

      PBGC: the Pension Benefit Guaranty  Corporation  established pursuant to
ERISA or any Governmental Body succeeding to the functions thereof.

      PENSION PLAN: a "pension plan" within the meaning of Section 3(2) of ERISA
that is subject to Section 302 or Part IV of ERISA or Section 412 of the Code
and that is, or at any time within the preceding six years was, maintained for
employees of Borrower or any ERISA Affiliate.

      PERMITTED LIENS:  any of the following Liens:

      (i)   the Security Interests;

      (ii)  the Permitted Senior Indebtedness Liens;
      (iii) Liens for taxes or assessments and similar charges, which either are
            (A) not delinquent or (B) being contested diligently and in good
            faith by appropriate proceedings, and as to which Borrower or any
            Subsidiary, as applicable, has set aside reserves on its books which
            are satisfactory to the Agent;

      (iv)  statutory and non-material contractual Liens, such as landlord's,
            mechanic's, material-man's, warehouseman's, carrier's or other like
            Liens, incurred in good faith in the ordinary course of business,
            provided that the underlying obligations relating to such Liens are
            paid in the ordinary course of business, or are being contested
            diligently and in good faith by appropriate proceedings and as to
            which Borrower or any Subsidiary, as applicable, has set aside
            reserves on its books satisfactory to the Agent, or the payment of
            which obligations are otherwise secured in a manner satisfactory to
            the Requisite Lenders;

      (v)   zoning ordinances, easements, licenses, reservations, provisions,
            covenants, conditions, waivers or restrictions on the use of
            Property and other title exceptions, in each case, that do not
            interfere in any material respect with the ordinary conduct of the
            business of Borrower;

      (vi)  Liens in respect of judgments or awards with respect to which no
            Event of Default would exist pursuant to subsection 8.1.6;

      (vii) Liens to secure payment of insurance premiums;

     (viii) Liens encumbering deposits required to be maintained by each
            Insurance Subsidiary for the protection of policyholders pursuant to
            applicable insurance laws and regulations;

      (ix)  Liens incurred in connection  with security posted for reinsurance
            assumed by each Insurance Subsidiary;

      (x)   Liens incurred in connection with the maintenance of investment
            accounts by Borrower and each Subsidiary to secure margin
            obligations and the payment of customary fees and charges;

      (xi)  Liens incurred or deposits made in the ordinary course of business
            in, connection with workers' compensation unemployment insurance and
            other types of social security, or to secure the payment or
            performance of tenders, statutory or regulatory obligations, surety
            and appeal bonds, bids, leases, government contracts and leases,
            performance and return of money bonds and other similar obligations;

      (xii) Liens in favor of the FHLB on qualified  assets in connection with
            the FHLB Agreement; and

     (xiii) bankers' liens, rights of setoff and similar interests.

      PERMITTED PRIOR LIENS:  the following:

      (i)   the Permitted Senior Indebtedness Liens;

      (ii)  the Permitted Liens described in clauses (iii) and (iv) of the
            definition of Permitted Liens that are accorded priority to the
            Security Interests by law;

      (iii) the Permitted Liens described in clauses (v) and (vii) of the
            definition of Permitted Liens, subject to the limitations set forth
            therein.

      (iv)  Liens encumbering deposits required to be maintained by each
            Insurance Subsidiary for the protection of policyholders pursuant to
            applicable insurance laws and regulations;

      (v)   Liens incurred in connection  with security posted for reinsurance
            assumed by each Insurance Subsidiary;

      (vi)  Liens incurred in connection with the maintenance of investment
            accounts by Borrower and each Subsidiary to secure margin
            obligations and the payment of customary fees and charges; and

      (vii) Liens in favor of the FHLB on qualified assets in connection with
            the FHLB Agreement.

      PERMITTED SENIOR INDEBTEDNESS: Indebtedness, other than Borrower's
Obligations, incurred to purchase tangible personal property, or to lease
tangible personal property pursuant to Capitalized Leases, provided that except
as set forth on Exhibit A (i) no such Indebtedness shall exist as of the Closing
Date, (ii) the amount of such Indebtedness at any one time outstanding during
such year shall not exceed $1,000,000, and (iii) no Event of Default exists at
the time or will be caused as a result of the incurrence of any Indebtedness
described in clause (ii).

      PERMITTED SENIOR INDEBTEDNESS LIENS: Liens that secure Permitted Senior
Indebtedness and refundings and refinancings thereof, provided that such Liens
attach only to the Property purchased or leased with the proceeds of such
Permitted Senior Indebtedness and improvements, additions and accessions thereto
and proceeds of any of the foregoing.

      PERSON:     any  individual,  firm,  corporation,  business  enterprise,
trust,  association,  joint venture,  partnership,  Governmental Body or other
entity, whether acting in an individual, fiduciary or other capacity.

      PHOENIX:    Phoenix  Indemnity   Insurance  Company,  an  Arizona  stock
property and casualty insurance company.

      PHOENIX CAPITAL STOCK:  all of the  issued  and  outstanding  shares  of
capital stock of Phoenix and any subordinated  surplus debt instrument  issued
by Phoenix.

      PLEDGE AGREEMENT: the  pledge   agreements   executed  by  Borrower  and
Guarantor,  respectively,  in favor of Agent covering the Collateral,  in form
and substance satisfactory to Agent.

      PRIME RATE: (i) the per annum rate of interest announced or published
publicly from time to time by LaSalle in Chicago, Illinois as its corporate base
(or equivalent) rate of interest, which rate of interest is a reference rate and
does not necessarily represent the lowest or best rate actually charged to any
customer by LaSalle in Chicago, Illinois plus (ii) the applicable Prime Rate
Margin.

      PRIME RATE MARGIN:      means  the  rate  per  annum  applicable  to the
Prime Rate Portion as established by the Applicable Margin.

      PRIME RATE PORTION:     the  Principal  Balance  other than the  portion
thereof consisting of LIBOR Loans.

      PRINCIPAL BALANCE:      the unpaid principal  balance of the Loan or any
specified portion thereof outstanding from time to time.

      PROPERTY:   all types of real,  personal or mixed property and all types
of tangible or intangible property

      PRO RATA SHARE:   with respect to a Lender,  a fraction  (expressed as a
percentage),  the numerator of which is the amount of such Lender's Commitment
and the denominator of which is the sum of all Commitments.

      REQUISITE LENDERS:      Lenders having sixty-six and two-thirds  percent
(662/3%) or more of the total Commitments then in effect.

      RIGHT OF FIRST REFUSAL: Borrower's right of first refusal pursuant to that
certain Plan of Conversion, dated as of January 8, 1999, of The Millers Mutual
Fire Insurance Company.

      RISK-BASED CAPITAL: as defined in any risk-based capital laws in effect in
Texas and Arizona with respect to property and casualty insurance companies, or,
if no such law is in effect, as defined in the NAIC's Risk-Based Capital for
Property/Casualty Insurers Model Act.

      SECURITIES ACT:   the  Securities  Act  of  1933,  as  amended,  or  any
similar  Federal   statute,   and  the  rules  and   regulations   promulgated
thereunder, as in effect from time to time.

      SECURITY AGREEMENT:     the  security   agreements  to  be  executed  by
Borrower and Guarantor and any other  Non-Insurance  Subsidiaries  of Borrower
or  Guarantor,  in favor of Agent  covering  the  Collateral,  pursuant to the
terms of this Loan Agreement in form and substance satisfactory to Agent.

      SECURITY INTERESTS:     the  Liens in the  Collateral  granted  to Agent
pursuant to the Loan Instruments.

      SETTLEMENT DATE:  as defined in Section 9.4.

      SFAS: Statement of Financial Accounting Standards.

      SOLVENCY CERTIFICATE:   a solvency  certificate  executed by Borrower in
form and substance acceptable to Agent.

      STATED RATE:      as defined in subsection 2.3.3.

      STATUTORY ACCOUNTING PRACTICES: the applicable accounting practices
prescribed or permitted for property and casualty insurance companies by the
Texas and Arizona Commissioners of Insurance and by the insurance laws and
regulations of the States of Texas and Arizona, as such laws and regulations may
be amended from time to time.

      STATUTORY SURPLUS:      the consolidated  surplus of Millers and Phoenix
(total  Admitted  Assets  less  Total  Liabilities),   as  the  case  may  be,
determined in accordance with Statutory Accounting Practices.

      SUBSIDIARY: each Insurance Subsidiary and each Non-Insurance Subsidiary.

      TERMINATION EVENT: (i) a "Reportable Event" described in Section 4043 of
ERISA and the regulations issued thereunder; or (ii) the withdrawal of Borrower
or any ERISA Affiliate from a Pension Plan during a plan year in which it was a
"substantial employer" as defined in Section 4001(a)(2); or (iii) the
termination of a Pension Plan, the filing of a notice of intent to terminate a
Pension Plan or the treatment of a Pension Plan amendment as a termination under
Section 4041 of ERISA; or (iv) the institution of proceedings to terminate, or
the appointment of a trustee with respect to, any Pension Plan by the PBGC; or
(v) any other event or condition which would constitute grounds under Section
4042(a) of ERISA for the termination of, or the appointment of a trustee to
administer, any Pension Plan; or (vi) the partial or complete withdrawal of any
Borrower or any ERISA Affiliate from a Multiemployer Plan; or (vii) the
imposition of a lien pursuant to Section 412 of the Code or Section 302 of
ERISA; or (viii) any event or condition which results in the reorganization or
insolvency of a Multiemployer Plan under Sections 4241 or 4245 of ERISA; or (ix)
any event or condition which results in the termination of a Multiemployer Plan
under Section 4041A of ERISA or the institution by the PBGC of proceedings to
terminate a Multiemployer Plan under Section 4042 of ERISA.

      TEXAS HOLDING COMPANY ACT:    as defined in Section 5.9.

      TOTAL LIABILITIES:      for any Person all  liabilities  established  on
the balance sheet of such Person,  as determined in accordance  with Statutory
Accounting Practices or GAAP, as applicable.

      TRILOGY:    Trilogy Holdings, Inc., a Nevada corporation.

      UCC FINANCING STATEMENTS:     Uniform    Commercial    Code    financing
statements as defined in the Uniform Commercial Code.

      UNIFORM COMMERCIAL CODE:      the Uniform  Commercial  Code in effect in
the State of Illinois on the Closing Date.

      YEAR 2000 PROBLEM: means the risk that computer applications used by
Borrower and any Subsidiary may be unable to recognize and perform properly
date-sensitive functions involving certain dates prior to and any date on or
after December 31, 1999.

      1.2 TIME PERIODS. In this Loan Agreement and the other Loan Instruments,
in the computation of periods of time from a specified date to a later specified
date, (i) the word "from" means "from and including," (ii) the words "to" and
"until" each mean "to, but excluding" and (iii) the words "through," "end of"
and "expiration" each mean "through and including." Unless otherwise specified,
all references in this Loan Agreement and the other Loan Instruments to (i) a
"month" shall be deemed to refer to a calendar month, (ii) a "quarter" shall be
deemed to refer to a calendar quarter and (iii) a "year" shall be deemed to
refer to a calendar year.

      1.3 ACCOUNTING TERMS AND DETERMINATIONS. Except as otherwise expressly
indicated herein, all accounting terms not specifically defined herein shall be
construed, all accounting determinations hereunder shall be made and all
financial statements required to be delivered pursuant hereto shall be prepared
in accordance with GAAP (with respect to Borrower and any Non-Insurance
Subsidiaries) or Statutory Accounting Practices (with respect to Millers,
Phoenix and any other Insurance Subsidiary) as in effect at the time of such
interpretation, determination or preparation, as applicable. In the event that
any Accounting Changes (as hereinafter defined) occur and such changes result in
a material change in the method of calculation of financial covenants, standards
or terms contained in this Loan Agreement, then Borrower and Lenders agree to
enter into negotiations to amend such provisions of this Loan Agreement so as to
reflect such Accounting Changes with the desired result that the criteria for
evaluating the financial condition of Borrower shall be the same after such
Accounting Changes as if such Accounting Changes had not been made. For purposes
hereof, "Accounting Changes" shall mean (i) changes in generally accepted
accounting principles required by the promulgation or amendment of any rule,
regulation, pronouncement or opinion by the Financial Accounting Standards Board
of the American Institute of Certified Public Accountants (or any successor
thereto) or other appropriate authoritative body, (ii) changes in accounting
principles as approved by the Accountants and (iii) changes in Statutory
Accounting Practices required by the promulgation or amendment of any rule,
regulation, pronouncement or opinion of the NAIC or the Texas or Arizona
Commissioners of Insurance or pursuant to the laws of the States of Texas and
Arizona.

      1.4 REFERENCES. All references in this Loan Agreement to "Article,"
"Section," "subsection," "subparagraph," "clause" or "Exhibit," unless otherwise
indicated, shall be deemed to refer to an Article, Section, subsection,
subparagraph, clause or Exhibit, as applicable, of this Loan Agreement.

      1.5 LENDERS' OR AGENT'S DISCRETION. Whenever the terms "satisfactory to
Lenders or Agent," "determined by Lenders or Agent," "acceptable to Lenders or
Agent," "Lenders or Agent shall elect," "Lenders or Agent shall request," "at
the option or election of Lenders or Agent," or similar terms are used in the
Loan Instruments, except as otherwise specifically provided therein, such terms
shall mean satisfactory to, at the election or option of, determined by,
acceptable to or requested by Lenders or Agent in their or its sole and
unlimited discretion, as applicable.

      1.6 BORROWER'S BEST KNOWLEDGE. Any statements, representations or
warranties that are based upon the best knowledge of Borrower or an officer
thereof shall be deemed to have been made after due inquiry by Borrower or an
officer, as applicable, with respect to the matter in question.

                                     ARTICLE II

              LOAN COMMITMENT; BORROWING PROCEDURES; TERMS OF PAYMENT

      2.1   LOAN.

            2.1.1. COMMITMENT AMOUNT AND DISBURSEMENT OF INITIAL LOAN. On the
      terms and subject to the conditions set forth in this Loan Agreement, each
      Lender agrees to make loans to Borrower from time to time before the
      Maturity Date on a revolving basis in such amounts as Borrower may request
      up to such Lender's Pro Rata Share of the Maximum Amount of the
      Commitments then in effect. As used herein, the term "Maximum Amount of
      the Commitments" shall mean, for any period, the amount set forth below
      opposite such period:

            PERIOD                               AMOUNT
            ------                               ------

            Closing Date through June 30, 2001   $30,000,000
            July 1, 2001 through June 30, 2002   $26,000,000
            July 1, 2002 through June 30, 2003   $21,000,000
            July 1, 2003 through June 30, 2004   $15,000,000
            July 1, 2004 through June 30, 2005   $9,000,000
            July 1, 2005 and thereafter          $0

      The initial Loan may be disbursed upon or at the Borrower's election after
      the satisfaction or waiver of all of the terms and conditions set forth in
      Section 4.1 and 4.2; subsequent Loans shall be disbursed provided the
      conditions set forth in Section 4.2 have been satisfied as of the
      requested Funding Date.

            2.1.2. USE OF PROCEEDS. The proceeds of the Loan shall be used to
      provide funds to (i) acquire one hundred percent (100%) of the Phoenix
      Capital Stock and pay transaction costs in connection therewith, and (ii)
      provide for general corporate purposes of Borrower, including, without
      limitation, Acquisitions.

            2.1.3.      REBORROWING.      Subject to the terms and  conditions
      set forth in this  Section 2  and in Article IV,  Borrower may (i) repay
      all or any  portion  of the  Principal  Balance  at any  time  and  (ii)
      reborrow all or any portion of the Principal Balance which is prepaid.

            2.1.4.      NOTE. The Loan shall be evidenced by the Note.

      2.2 BORROWING PROCEDURES. Borrower shall give Agent irrevocable written
notice of each proposed borrowing by telecopy no later than 10:00 a.m., Chicago,
Illinois time, (i) on the proposed Funding Date with respect to such borrowing
for all borrowings other than borrowings which constitute LIBOR Loans and (ii)
two Business Days prior to the commencement of the applicable LIBOR Interest
Period for all borrowings which constitute LIBOR Loans by delivery of a
completed and executed Notice of Borrowing to Agent c/o LaSalle Bank National
Association, Attention: George L. Kumis, 135 South LaSalle Street, Chicago,
Illinois 60603, Telecopy: (312) 904-6189. Each such Notice of Borrowing shall be
effective upon receipt by Agent, and subject to the provisions of this Article
II, Lenders shall make a revolving loan to Borrower on the date specified in
such Notice of Borrowing. Each borrowing of a Loan shall be (i) in increments of
$500,000 or integral multiples of $100,000 in excess thereof and (ii) made on a
Business Day. There shall be no more than one such borrowing in any week.

      2.3   INTEREST.

            2.3.1. INTEREST RATE. The Prime Rate Portion shall bear interest at
      the Prime Rate and each LIBOR Loan shall bear interest at the applicable
      LIBOR Rate, except that during a Default Rate Period the Principal Balance
      shall bear interest at the applicable Default Rates.

            2.3.2.      INTEREST COMPUTATION.   Interest  shall be computed on
      the basis of a year  consisting  of 360 days and  charged for the actual
      number of days during the period for which  interest  is being  charged.
      In  computing  interest,  the  date of  funding  of each  Loan  shall be
      included and the date of payment shall be excluded.

            2.3.3. MAXIMUM INTEREST. Notwithstanding any provision to the
      contrary contained herein or in any other Loan Instrument, Lenders shall
      not collect a rate of interest on any obligation or liability due and
      owing by Borrower to Lenders in excess of the maximum contract rate of
      interest permitted by applicable law ("Excess Interest"). Lenders and
      Borrower agree that the interest laws of the State of Illinois shall
      govern the relationship among them, but in the event of a final
      adjudication to the contrary, Borrower shall be obligated to pay, to
      Lenders only such interest as then shall be permitted by the laws of the
      state found to govern the contract relationship among Lenders and
      Borrower.

      If any Excess Interest is provided for or determined by a court of
      competent jurisdiction to have been provided for in this Loan Agreement or
      any other Loan Instrument, then in such event (i) Borrower shall not be
      obligated to pay such Excess Interest, (ii) any Excess Interest collected
      by Lenders shall be, at Lenders' option, (A) applied to the Principal
      Balance or to accrued and unpaid interest not in excess of the maximum
      rate permitted by applicable law or (B) refunded to the payor thereof,
      (iii) the interest rates provided for herein (collectively, the "Stated
      Rate") shall be automatically reduced to the maximum rate allowed from
      time to time under applicable law (the "Maximum Rate") and this Loan
      Agreement and the other Loan Instruments, as applicable, shall be deemed
      to have been, and shall be, modified to reflect such reduction, and (iv)
      Borrower shall not have any action against Lenders for any damages arising
      out of the payment or collection of such Excess Interest; provided,
      however, that if at any time thereafter the Stated Rate is less than the
      Maximum Rate, Borrower shall, to the extent permitted by law, continue to
      pay interest at the Maximum Rate until such time as the total interest
      received by Lenders is equal to the total interest which Lenders would
      have received had the Stated Rate been (but for the operation of this
      provision) the interest rate payable. Thereafter, the interest rate
      payable shall be the Stated Rate unless and until the Stated Rate again
      exceeds the Maximum Rate, in which event the provisions contained in this
      subsection 2.3.3 shall again apply.

      2.4   LIBOR LOANS.

            2.4.1. ELECTION BY BORROWER. Subject to the provisions of subsection
      2.4.2 and provided no Incipient Default or Event of Default then exists,
      Borrower from time to time may borrow at the LIBOR Rate or elect to have
      all or a portion of the Principal Balance bear or continue to bear
      interest at a LIBOR Rate by delivery of an appropriately completed and
      executed Notice of Borrowing pursuant to Section 2.2 not less than two
      Business Days prior to the commencement of the applicable LIBOR Interest
      Period. Agent shall determine (which determination shall, absent manifest
      error, be presumptively correct) the LIBOR Rate applicable to the relevant
      LIBOR Loan on the applicable Interest Rate Determination Date and shall
      promptly give notice thereof to Borrower. Agent and Lenders shall have the
      right without further confirmation to assume that any Notice of Borrowing
      received by Agent has been given by a person duly authorized to act on
      behalf of Borrower. Any Notice of Borrowing received by Agent shall be
      irrevocable. Upon the expiration of a LIBOR Interest Period the applicable
      LIBOR Loan shall be converted to and become part of the Prime Rate Portion
      unless such LIBOR Loan has been continued as a LIBOR Loan in accordance
      with this subsection 2.4.1.

            2.4.2.      LIBOR LIMITATIONS.      Each  LIBOR  Loan  shall be in
      the  amount  of not less  than  $500,000  or in  integral  multiples  of
      $100,000  in excess  thereof.  At no time  shall more than six (6) LIBOR
      Loans be in effect.

            2.4.3. EURODOLLAR DEPOSITS UNAVAILABLE OR INTEREST RATE
      UNASCERTAINABLE. If, prior to the commencement of any LIBOR Interest
      Period, Agent determines in good faith that Dollar deposits of the
      relevant amount for the relevant LIBOR Interest Period are not available
      in the London Interbank Market, or that by reason of circumstances
      affecting such market, adequate and reasonable means do not exist for
      ascertaining the LIBOR Rate applicable to such LIBOR Interest Period,
      Agent promptly shall give notice of such determination to Borrower and any
      LIBOR Election previously given by Borrower which has not yet become
      effective shall be deemed to be canceled.

            2.4.4. TAX AND OTHER LAWS. In the event that by reason of any law,
      regulation or requirement or interpretation thereof by any Governmental
      Body, or the imposition of any requirement of any such Governmental Body,
      whether or not having the force of law, including the imposition of any
      reserve and/or special deposit requirement (other than reserves included
      in the LIBOR Reserve Requirements), any Lender shall be subjected to any
      tax, levy, impost, charge, fee, duty, deduction or withholding of any kind
      whatsoever (other than any tax imposed upon the total net income of such
      Lender) and if any such measures or any other similar measure shall result
      in an increase in the cost to any Lender of maintaining its share of any
      LIBOR Loan or in a reduction in the amount of principal or interest
      receivable by any Lender in respect thereof, then Borrower shall pay to
      the affected Lender within 10 days after receipt of a notice from such
      Lender (which notice shall be accompanied by a statement in reasonable
      detail setting forth the basis for the calculation thereof, which
      calculation, in the absence of demonstrable error, shall be conclusive and
      binding), an amount equal to such increased cost or reduced amount. At any
      time after receipt of such notice Borrower may convert all LIBOR Loans to
      the Prime Rate Portion, and such conversion shall be effective three
      Business Days after the Lenders have received notice from Borrower of such
      conversion.

            2.4.5. CHANGES IN LAW RENDERING LIBOR LOANS UNLAWFUL. If at any time
      any law, treaty or regulation, or any interpretation thereof by any
      Governmental Body, shall make it unlawful for any Lender to fund or
      maintain its share of any LIBOR Loan with monies obtained in the London
      Interbank Market, such Lender, upon the occurrence of such event, shall
      notify Borrower thereof and thereupon (i) the right of Borrower to make
      any LIBOR Election shall be suspended for the duration of such illegality
      and (ii) if required by such law, regulation or interpretation, on such
      date as shall be specified in such notice all LIBOR Interest Periods then
      in effect shall be terminated, and thereafter all LIBOR Loans shall be
      deemed converted to the Prime Rate Portion.

            2.4.6. INDEMNITY. In addition to any other payments payable by
      Borrower to the Lenders pursuant to the Loan Instruments, Borrower shall
      indemnify and reimburse each Lender on demand for any loss or expense
      which such Lender may sustain as a consequence of any prepayment of a
      LIBOR Loan prior to the expiration of the LIBOR Interest Period applicable
      thereto and of any failure by Borrower to (i) make any payment when due of
      any amount payable with respect to any LIBOR Loan or (ii) borrow the
      amount set forth in any Notice of Borrowing on the date specified
      therefor.

            2.4.7.      FUNDING.    Any Lender may,  but shall not be required
      to,  make any Loan or any  portion  thereof  which  bears  interest at a
      LIBOR Rate with funds obtained outside of the United States.

      2.5   SCHEDULED PRINCIPAL AND INTEREST PAYMENTS.

            2.5.1 INTEREST. Except as otherwise provided in subsection 2.8.4,
      interest on (i) the Prime Rate Portion shall be payable monthly in arrears
      on the first Business Day of each month following the month in which the
      Closing Date occurs and on the Maturity Date and (ii) each LIBOR Loan
      shall be payable on the last day of the applicable LIBOR Interest Period
      thereto and on the Maturity Date, except that for each LIBOR Loan having a
      LIBOR Interest Period longer than three months, interest accrued on such
      LIBOR Loan shall be payable on the last day of each three month interval
      during such LIBOR Interest Period.

            2.5.2 PRINCIPAL.  The  Principal  Balance shall be payable in full
      on the Maturity Date.

      2.6   FEES.

            2.6.1 CLOSING FEE. On the Closing Date Borrower shall pay to
      LaSalle, for its benefit and the benefit of all other Lenders, a closing
      fee of $100,000 (the "Closing Fee"). The Closing Fee shall be deemed to be
      fully earned upon the Closing Date.

            2.6.2 NON-USE FEE. On the first Business Day of each quarter
      following the quarter in which the Closing Date occurs, Borrower shall pay
      to Agent, for the ratable benefit of Lenders, a fee in an amount equal to
      (w) the Non-Use Fee Rate in effect for the immediately preceding quarter
      multiplied by (x) the average daily Maximum Amount of the Commitments less
      the sum of the average daily Principal Balance during such preceding
      quarter multiplied by (y) a fraction, the numerator of which is the number
      of calendar days in such preceding quarter (except in the case of the
      initial payment where the number of days shall equal the number of days
      between the Closing Date and the end of the quarter during which the
      Closing Date occurs and in the case of the last payment where the number
      of days shall equal the number of days between the first day of the
      quarter during which the final payment of principal is made and the date
      on which the final payment of principal is made) and the denominator of
      which is 360 days.

            2.6.3 AGENT'S FEE. On the Closing Date and each anniversary of the
      Closing Date, Borrower shall pay to LaSalle, individually, fees as are
      provided for the Fee Letter. Such fees shall be deemed to be fully earned
      on the Closing Date and each anniversary of the Closing Date.

      2.7   TERMINATION OF THE COMMITMENTS; PREPAYMENTS.

            2.7.1 TERMINATION OF THE COMMITMENTS. Borrower may terminate the
      Commitments at any time upon repayment in full of Borrower's Obligations
      (including any obligations arising under subsection 2.4.6) or may reduce
      the amount of the Commitments at any time or from time to time so long as
      Borrower's Obligations are less than the amount of the Commitments after
      such reduction, subject to the following conditions: not less than five
      days prior to the date upon which Borrower desires to terminate or reduce
      the Commitments, Borrower shall deliver to Agent notice of its intention
      so to terminate and to repay Borrower's Obligations in full or so to
      reduce, which notice shall state the payment date or the reduction date
      along with the amount of reduced Commitment. If Borrower delivers to Agent
      a notice of termination and fails to repay Borrower's Obligations in full
      on the stated payment date, Borrower shall reimburse Lenders on demand in
      the amount of any loss, cost and/or expense incurred by Lenders as a
      result of Lenders' reliance on such notice, including without limitation,
      any reasonable loss, cost or expense resulting from Lenders' contractual
      obligations in connection with the reinvestment of the amount of the
      Principal Balance.

            2.7.2 VOLUNTARY PREPAYMENTS OF THE LOAN. Borrower at any time and
      from time to time may make payments on account of the Principal Balance.
      Each such voluntary prepayment shall be without premium or penalty,
      provided that Borrower shall pay to Lenders the amounts due, if any, under
      subsection 2.4.6.

            2.7.3 MANDATORY PREPAYMENTS OF THE LOAN. If at any time the
      Principal Balance exceeds the Maximum Amount of the Commitments, Borrower
      immediately shall make a mandatory prepayment of the Principal Balance in
      an amount equal to such excess. Each such mandatory prepayment shall be
      without premium or penalty.

            2.7.4 ADDITIONAL PAYMENTS. Concurrently with any termination or
      reduction of the Commitments or any voluntary or mandatory prepayment of
      the Principal Balance pursuant to this Section 2.8, Borrower shall pay to
      Lenders accrued and unpaid interest on the portion of the Principal
      Balance which is being prepaid to the date on which Lenders are in receipt
      of Good Funds, and any other sums which are due and payable pursuant to
      the terms of any of the Loan Instruments.

      2.8 PAYMENTS AFTER EVENT OF DEFAULT. All payments received by Lenders
during the existence of an Event of Default shall be applied in accordance with
Section 8.4.

      2.9   METHOD OF PAYMENT; GOOD FUNDS.      Borrower    shall   make   all
payments to be made pursuant to the Loan  Instruments by wire transfer of Good
Funds to the account of Agent at LaSalle Bank National Association,  135 South
LaSalle  Street,  Chicago,  Illinois,  60603,  ABA  No.  071-000-505,  Credit:
Commercial  Loans 1378018,  Reference:  Millers  American  Group,  Inc., or to
such other account as Agent shall notify Borrower of such in writing.

      2.10  INCREASED COSTS; CAPITAL ADEQUACY.

            2.10.1 INCREASED COSTS. Without taking into account any factor that
      increases the LIBOR Rate pursuant to the definition thereof, and without
      duplication of subsection 2.4.4, if (i) Regulation D of the Board of
      Governors of the Federal Reserve System, or (ii) after the date hereof,
      the adoption of any applicable law, rule or regulation, or any change
      therein, or any change in the interpretation or administration thereof by
      any governmental authority, central bank or comparable agency charged with
      the interpretation or administration thereof, or compliance by any lender
      with any request or directive (whether or not having the force of law) of
      any such authority, central bank or comparable agency issued after the
      date hereof,

                  (a) shall subject such Lender to any tax, duty or other
            charger with respect to any Loan, the Note or its obligation to make
            or maintain any Loan, or shall change the basis or taxation or
            payments to such Lender of the principal of or interest on any Loan
            or any other amounts due under this Loan Agreement in respect of any
            Loan or its obligation to make or maintain any Loan (except for
            changes in the rate of tax on the income, receipts or capital of
            such Lender imposed by any Governmental Body); or

                  (b) shall impose, modify or deem applicable any reserve
            (including, without limitation, any reserve imposed by the Board of
            Governors of the Federal Reserve System), special deposit or similar
            requirement against assets of, deposits with or for the account of,
            or credit extended by, such Lender; or

                  (c)   shall  impose  on  such  Lender  any  other  condition
            affecting  any  Loan,  the  Note  or its  obligation  to  make  or
            maintain any Loan;

            and such Lender shall determine in good faith that the result of any
            of the foregoing is to increase the cost to (or to impose a cost on)
            such Lender of making or maintaining any Loan, or to reduce the
            amount of any sum received or receivable by such Lender under this
            Loan Agreement or under any Note with respect thereto, then within
            30 days after demand by such Lender (which demand shall be
            accompanied by a certified statement setting forth the basis of such
            demand), Borrower shall pay directly to such Lender such additional
            amount or amounts as will compensate such Lender for such increased
            cost or such reduction.

            2.10.2 CAPITAL ADEQUACY. If either (i) the introduction of or any
      change in or in the interpretation of any law or regulation or (ii)
      compliance by any Lender with any guideline or request from any central
      bank or other governmental authority (whether or not having the force of
      law) affects or would affect the amount of capital required or expected to
      be maintained by such Lender or any corporation controlling such Lender
      and such Lender determines in good faith that the amount of such capital
      is increased by or based upon the existence of such Lender's commitment to
      lend hereunder and other commitments of this type, then within 30 days
      after demand by such Lender, Borrower shall pay to such Lender, from time
      to time as specified by such Lender, additional amounts sufficient to
      compensate such Lender in the light of such circumstances, to the extent
      that such Lender reasonably determines such increase in capital to be
      allocable to the existence of such Lender's commitment to lend hereunder.

      2.11  LIMITATION   ON   ADDITIONAL   CHARGES;   SUBSTITUTE   LENDERS;
NON-DISCRIMINATION.  Anything in Sections 2.4.4. and 2.10 notwithstanding.

            (a) Borrower shall not be required to pay to any Lender
      reimbursement with regard to any costs or expenses, unless such Lender
      notifies Borrower of such costs or expenses within 90 days after the date
      paid or incurred;

            (b) none of the Lenders shall be permitted to pass through to
      Borrower charges and costs under Sections 2.4.4. or 2.10 on a
      discriminatory basis (i.e., which are not also passed through by such
      Lender to other customers of such Lender similarly situated where such
      customer is subject to documents providing for such pass through); and

            (c) if any Lender elects to pass through to Borrower any material
      charge or cost under Sections 2.4.4. or 2.10 or elects to terminate the
      availability of LIBOR Loans for any material period of time, Borrower may,
      within 60 days after the date of such event and so long as no Event of
      Default shall have occurred and be continuing, elect to terminate such
      Lender as a party to this Agreement; provided that, concurrently with such
      termination Borrower shall (i) if the Agent and each of the other Lenders
      shall consent, pay that Lender all principal, interest and fees and other
      amounts owed to such Lender through such date of termination or (ii) have
      arranged for another financial institution approved by the Agent (such
      approval not to be unreasonably withheld) as of such date, to become a
      substitute Lender for all purposes under this Agreement in the manner
      provided in Article IX; provided, further that, prior to substitution for
      any Lender, Borrower shall have given written notice to the Agent of such
      intention and the Lenders shall have the option, but no obligation, for a
      period of 60 days after receipt of such notice, to increase their
      Commitments in order to replace the affected Lender in lieu of such
      substitution.

                                   ARTICLE III

                     SECURITY; MAINTENANCE OF ACCOUNTS; SET OFF

            3.1 SECURITY. Borrower's Obligations shall be secured by a Lien upon
      all of the Collateral, which at all times shall be superior and prior to
      all other Liens, except Permitted Prior Liens.

            3.2   ACCOUNTS; SETOFF.

                  3.2.1 PAYMENT OF CHARGES. Borrower acknowledges that LaSalle
            will charge Borrower monthly service charges for various services
            performed by LaSalle in connection with cash management services
            provided by LaSalle, and Borrower hereby agrees that if such service
            charges arising in any month exceed the credit to Borrower in that
            month arising from earnings attributable to funds on deposit with
            LaSalle in Borrower's accounts, such service charge deficiency shall
            be deducted, on a monthly basis, by LaSalle from Borrower's
            accounts.

                  3.2.2 DEPOSITS TO BORROWER'S ACCOUNTS. Agent shall have the
            right to deposit all proceeds of the Loans to Borrower's accounts
            with LaSalle, and shall have the right to charge such account (or
            any other account in Borrower's name) for all other Borrower's
            Obligations due from and payable by Borrower.

                  3.2.3 SETOFF.

                  (a) If at any time (i) any amount owing by Borrower under any
            Loan Instrument is then due and payable to Lenders or (ii) any Event
            of Default shall have occurred and be continuing, then each Lender,
            in its discretion, may apply to the payment of such amount any and
            all balances, credits, deposits, accounts or moneys of Borrower then
            or thereafter on deposit with such Lender.

                  (b) Without limitation of subsection 3.2.3(a), Borrower agrees
            that, upon and after the occurrence of any Event of Default, each
            Lender is hereby authorized, at any time and from time to time,
            without notice to Borrower, (i) to set off against and to
            appropriate and apply to the payment of Borrower's Obligations
            (whether matured or unmatured, fixed or contingent or liquidated or
            unliquidated) any and all amounts which such Lender is obligated to
            pay over to Borrower (whether matured or unmatured, and, in the case
            of deposits, whether general or special, time or demand and however
            evidenced, but excluding deposit accounts held by Borrower for the
            benefit of others in a fiduciary capacity) and (ii) pending any such
            action, to the extent necessary, to hold such amounts as Collateral
            to secure Borrower's Obligations and to dishonor any and all checks
            and other items drawn against any deposits so held as such Lender in
            its sole discretion may elect.

                                     ARTICLE IV

                                 CONDITIONS OF LEND

      4.1   INITIAL LOAN.     The  obligation  of Lenders to make the  initial
Loan shall be subject to the  satisfaction of all of the following  conditions
in a manner, form and substance satisfactory to Lenders:

            4.1.1 DELIVERY OF DOCUMENTS. The following shall have been delivered
      to Agent, each duly authorized and executed, where applicable:

            (a)   the Loan Instruments;

            (b) a good standing certificate for Borrower from the State of Texas
      and each other state in which the laws thereof require Borrower to be
      qualified to transact business, each dated a recent date prior to the
      Closing Date;

            (c)   a good  standing  certificate  for Trilogy from the State of
      Nevada, dated a recent date prior to the Closing Date;

            (d) a Certificate of Compliance for Millers and a Certificate of
      Authorization and Deposit for Phoenix issued by insurance regulatory
      officials of Texas and Arizona, respectively, each dated a recent date
      prior to the Closing Date;

            (e) certified copies of (i) the articles of incorporation of
      Borrower, Trilogy, Phoenix and Millers, together with all amendments
      thereto, certified by the Secretary of State from their respective states
      of formation as of a recent date prior to the Closing Date; and (ii) the
      by-laws of Borrower, Trilogy, Phoenix and Millers, together with all
      amendments thereto, certified as of the Closing Date by the respective
      assistant secretaries of Borrower, Trilogy, Phoenix and Millers;

            (f) certified copies of resolutions adopted by the board of
      directors of Borrower and Trilogy authorizing the execution and delivery
      of the Loan Instrument to which Borrower and/or Trilogy is a party;

            (g)   signature  and  incumbency  certificates  of the officers of
      Borrower and Trilogy executing the Loan Instruments;

            (h)   the consummation of the Acquisition of Phoenix; and

            (i) such other instruments, documents, certificates, consents,
      waivers and opinions as Agent reasonably may request.

            4.1.2 MILLERS CAPITAL STOCK AND PHOENIX CAPITAL STOCK. Agent shall
      have received the original certificates representing the Millers Capital
      Stock and Phoenix Capital Stock, together with assignments separate from
      certificate relating thereto duly endorsed in blank. If Millers Direct
      Insurance Company, a Texas insurance company becomes a wholly-owned
      subsidiary of Trilogy subsequent to the Closing of this Agreement, Agent
      shall receive the original certificates of Millers Direct Insurance
      Company, together with assignments separate from certificate relating
      thereto duly endorsed in blank.

            4.1.3 OPINIONS OF COUNSEL. Agent shall have received an opinion
      dated the Closing Date from Akin Gump Strauss Hauer & Feld, L.L.P.,
      general, counsel to Borrower, addressed to LaSalle, as a Lender and as
      Agent, in such form and covering such matters as Lenders reasonably may
      require.

            4.1.4 APPROVAL OF INSTRUMENTS AND SECURITY INTERESTS. Agent shall
      have received evidence that the approval or consent shall have been
      obtained from all Governmental Bodies, including, without limitation,
      insurance regulatory officials, and all other Persons whose approval or
      consent is required to enable Borrower to (i) enter into and perform
      Borrower's obligations under the Loan Instruments and (ii) grant to Agent
      the Security Interests contemplated in the Loan Instruments.

            4.1.5 SECURITY INTERESTS. All filings of Uniform Commercial Code
      financing statements and all other filings and actions necessary to
      perfect and maintain the Security Interests as first, valid and perfected
      Liens in the Property covered thereby, subject only to Permitted Prior
      Liens, shall have been filed or taken and Agent shall have received such
      UCC, state and federal tax Lien, pending suit, judgment and other Lien
      searches as it deems necessary to confirm the foregoing.

            4.1.6 FINANCIAL STATEMENTS, REPORTS AND PROJECTIONS. Lenders shall
      have received (i) the consolidated statements of income and balance sheet
      for Borrower for the period ended June 30, 1999, accompanied by a
      certificate of the Chief Financial Officer certifying that such statements
      of income and balance sheets present fairly in all material respects the
      financial condition of such Persons for such quarter, (ii) the Annual
      Statements of Millers and Phoenix for 1998, on the form promulgated by the
      NAIC and as filed with the Texas Commissioner of Insurance and the Arizona
      Commissioner of Insurance, respectively, prepared in accordance with
      Statutory Accounting Practices, (iii) quarterly financial statements of
      Millers and Phoenix for the quarter ending June 30, 1999, as filed with
      insurance regulatory officials, prepared in accordance with Statutory
      Accounting Practices, (iv) such other financial statements prepared in the
      normal course relating to the operations of Borrower and each Subsidiary
      as Lenders reasonably shall request, and (v) operating projections for
      Borrower and each Subsidiary for the years 1999 through 2002.

            4.1.7 PROCEEDINGS AND DOCUMENTS. All corporate and other proceedings
      in connection with the transactions contemplated by the Loan Instruments
      and all documents and instruments incident to such transactions shall be
      satisfactory to Lenders, and Agent shall have received all such
      counterpart originals or certified or other copies as Lenders may request.

            4.1.8 USE OF ASSETS. Lenders shall be satisfied that Borrower,
      Trilogy, Millers and Phoenix at all times shall be entitled to the use and
      quiet enjoyment of all Property necessary for the continued ownership and
      operation of the Business conducted by Borrower, Trilogy, Millers and
      Phoenix, including, without limitation, the use of equipment, fixtures,
      Licenses and offices.

            4.1.9 PAYMENT OF FEES AND EXPENSES. Borrowers shall have paid the
      Closing Fee and all fees and expenses described in subsection 11.1.1
      incurred in connection with the Loan.

      4.2 ALL LOANS. The obligation of Lenders to make the initial Loan and each
subsequent Loan is subject to the satisfaction of all of the following
conditions in a manner, form and substance satisfactory to the Requisite
Lenders:

            4.2.1 REPRESENTATIONS AND WARRANTIES. On the Funding Date of such
      Loan the representations and warranties of Borrower set forth in the Loan
      Instruments shall be true and correct.

            4.2.2 PERFORMANCE; NO DEFAULT. Borrower shall have performed and
      complied with all agreements and conditions contained in the Loan
      Instruments to be performed by or complied with by Borrower prior to or at
      the Funding Date of such Loan, and no Event of Default or Incipient
      Default shall then exist or result from the making of such Loan.

            4.2.3 MAXIMUM AMOUNT OF THE COMMITMENTS. The Principal Balance
      outstanding on the Funding Date of such requested Loan (after giving
      effect to such Loan) shall not exceed the Maximum Amount of the
      Commitments then in effect.

            4.2.4 MATERIAL ADVERSE CHANGE. There shall have been no material
      adverse change with respect to the Business, credit, operations or
      financial condition of Borrower and its Subsidiaries (taken as a whole)
      since the date of the most recent Loan made.

            4.2.5 LITIGATION. (i) Borrower shall have disclosed in writing to
      Lenders all existing or overtly threatened litigation (including, without
      limitation, derivative actions), arbitration proceedings or governmental
      proceedings not previously disclosed in writing to Lenders before the date
      of the most recent Loan which Borrower reasonably believes could
      materially and adversely affect the business, properties, financial
      condition or results of operations of Borrower and its Subsidiaries (taken
      as a whole), (ii) Borrower shall have disclosed any and all material
      developments that have occurred with respect to any previously disclosed
      litigation (including, without limitation, derivative actions),
      arbitration proceedings or governmental proceedings, and (iii) the
      Requisite Lenders shall not have determined, in the exercise of their
      reasonable discretion, that any existing or threatened litigation
      (including, without limitation, derivative actions), arbitration
      proceedings or governmental proceedings (or any material development in
      connection therewith) is likely to have a Material Adverse Effect on
      Borrower's and its Subsidiaries (taken as a whole) business, properties,
      financial condition or results of operations or on Borrower's ability to
      perform its obligations under the Loan Instruments (taken as a whole).

            4.2.6 CERTIFICATE. Agent shall have received a certificate signed by
      the Chief Financial Officer and dated the Funding Date of such requested
      Loan certifying satisfaction of the conditions specified in this Section
      4.2.

            4.2.7 ADDITIONAL DOCUMENTS.   Agent  shall  have   received   such
      other  documents  as the  Requisite  Lenders  reasonably  may request in
      support of such requested Loan.

                                    ARTICLE V

                           REPRESENTATIONS AND WARRANTEES

            Borrower represents and warrants to Agent and Lenders as follows:

      5.1 EXISTENCE AND POWER. Borrower, Trilogy, Millers and Phoenix are each a
corporation duly formed, validly existing and in good standing under the laws of
the state of its organization. Borrower is in good standing and each of
Borrower, Trilogy, Millers and Phoenix are authorized to do business, in each
jurisdiction in which the failure to be in good standing (if applicable) or to
be so authorized would have a Material Adverse Effect.

      5.2 AUTHORITY. Borrower has the corporate power and authority to enter
into, execute, deliver and carry out the terms of the Loan Instruments to which
it is a party and to incur the obligations provided for therein, all of which
have been duly authorized by all proper and necessary action and are not
prohibited by the organizational instruments of Borrower.

      5.3   CAPITAL STOCK AND RELATED MATTERS.

            5.3.1 CAPITALIZATION O MILLERS. The Millers Capital Stock consists
      of 103,267 shares of $40.00 par value common stock. The Millers Capital
      Stock is validly issued, fully paid and non-assessable, and has been
      issued and sold in compliance with all applicable insurance, federal and
      state laws, rules and regulations, including, without limitation, all
      so-called "Blue-Sky" laws. The Millers Capital Stock is owned beneficially
      and of record by Trilogy. The Millers Capital Stock is free and clear of
      all Liens except the Security Interests.

            5.3.2 RESTRICTIONS. Except as set forth in Exhibit 5.3.2, (i)
      neither Borrower nor any Subsidiary is a party to or has knowledge of any
      agreements restricting the transfer of the Millers Capital Stock, except
      the Loan Instruments, (ii) Millers has not issued any rights which can be
      convertible into or exchangeable or exercisable for any of its capital
      stock, or any rights to subscribe for or to purchase, or any options for
      the purchase of, or any agreements providing for the issuance (contingent
      or otherwise) of, or any calls, commitments or claims of any character
      relating to, any of its capital stock or any securities convertible into
      or exchangeable or exercisable for any of its capital stock, (iii) neither
      Borrower nor any Subsidiary is subject to any obligation (contingent or
      otherwise) to repurchase or otherwise acquire or retire any of its capital
      stock or any convertible rights or options and (iv) neither Borrower nor
      any Subsidiary is required to file or has filed, pursuant to the
      Securities Act of 1933 or Section 12 of the Securities Exchange Act of
      1934, as amended, a registration statement relating to any class of debt
      or equity securities.

            5.3.3 CAPITALIZATION OF PHOENIX. The Phoenix Capital Stock consists
      of 500,000 shares of $6.00 par value common stock. The Phoenix Capital
      Stock is validly issued, fully paid and non-assessable, and has been
      issued and sold in compliance with all applicable insurance, federal and
      state laws, rules and regulations, including, without limitation, all
      so-called "Blue-Sky" laws. The Phoenix Capital Stock is owned beneficially
      and of record by Trilogy. The Phoenix Capital Stock is free and clear of
      all Liens except the Security Interests.

            5.3.4 RESTRICTIONS. Except as set forth in Exhibit 5.3.2, (i)
      neither Borrower nor any Subsidiary is a party to or has knowledge of any
      agreements restricting the transfer of the Phoenix Capital Stock, except
      the Loan Instruments, (ii) Phoenix has not issued any rights which can be
      convertible into or exchangeable or exercisable for any of its capital
      stock, or any rights to subscribe for or to purchase, or any options for
      the purchase of, or any agreements providing for the issuance (contingent
      or otherwise) of, or any calls, commitments or claims of any character
      relating to, any of its capital stock or any securities convertible into
      or exchangeable or exercisable for any of its capital stock.

      5.4 BINDING AGREEMENTS. This Loan Agreement and the other Loan
Instruments, when executed and delivered, will constitute the valid and legally
binding obligations of Borrower, enforceable against Borrower in accordance with
their respective terms, except as such enforceability may be limited by (i)
applicable bankruptcy, insolvency, reorganization, moratorium or similar laws
now or hereafter in effect affecting the enforcement of creditors' rights
generally and (ii) equitable principles (whether or not any action to enforce
such document is brought at law or in equity).

      5.5   BUSINESS, PROPERTY AND LICENSES OF BORROWER AND EACH SUBSIDIARY.

            5.5.1 BUSINESS AND PROPERTY. Borrower and each Subsidiary is or will
      be upon the Closing the owner of or holder of a valid lease for all
      Property necessary to conduct the Business where it is presently conducted
      by Borrower and each Subsidiary. Neither Borrower nor any Subsidiary
      engages in or proposes to engage in any business or activity other than
      the Business.

            5.5.2 CERTIFICATES OF AUTHORITY. There is set forth in Exhibit 5.5.2
      a list of all states for which Certificates of Authority have been issued
      or assigned to Millers, Phoenix and each Insurance Subsidiary. All of such
      Certificates of Authority are in full force and effect and have been duly
      issued in the name of, or validly assigned to Millers, Phoenix and each
      Insurance Subsidiary, as applicable, no default or breach exists
      thereunder and Borrower or each Subsidiary, as applicable, has full power
      and authority thereunder to operate the Business as and where it is
      presently conducted by Millers, Phoenix and each Subsidiary.

            5.5.3 OPERATING AGREEMENTS. There is set forth in Exhibit 5.5.3 a
      list of all Operating Agreements involving payment obligations in excess
      of $50,000 in any year. All of the Operating Agreements listed in Exhibit
      5.5.3 are in full force and effect and no event has occurred which could
      reasonably be expected to result in the cancellation or termination of any
      such Operating Agreement or the imposition thereunder of any liability
      upon Borrower or any of its Subsidiaries which could have a Material
      Adverse Effect.

            5.5.4 BUSINESS LOCATIONS. There is set forth in Exhibit 5.5.4 the
      location of Borrower's and each Subsidiary's chief executive office, the
      locations of all of Borrower's and each Subsidiary's Property, the places
      where Borrower's and each Subsidiary's books and records are kept, the
      locations of all offices leased or owned by Borrower or a Subsidiary and
      used in the operation of the Business of Borrower and each Subsidiary and
      all other locations leased or owned by Borrower or a Subsidiary and where
      Borrower or each Subsidiary conducts Business.

            5.5.5 REAL PROPERTY; LEASES. Neither Borrower nor any Subsidiary
      owns any real property. There is set forth in Exhibit 5.5.5 a list of all
      leases of real property under which Borrower and any Subsidiary is a
      lessee. Each Lease is in full force and effect, there has been no material
      default in the performance of any of its terms or conditions by any party
      thereto, and no claims of default have been asserted with respect thereto.
      The present and contemplated use of the Leasehold Property is in
      compliance with all material applicable zoning ordinances and regulations
      and other laws and regulations.

            5.5.6 OPERATION AND MAINTENANCE OF EQUIPMENT. All of the equipment
      and other tangible personal property owned by Borrower or any Subsidiary
      is in good operating condition and repair (subject to normal wear and
      tear) and has been used, operated and maintained in substantial compliance
      with all applicable laws, rules and regulations.

      5.6 TITLE TO PROPERTY; LIENS. Borrower and each Subsidiary has (i) good
and indefeasible title to all of its Property, except (A) any License which
cannot be transferred without the consent of a Governmental Body and (B) the
portion thereof consisting of a leasehold estate and (ii) a valid leasehold
estate in each portion of its Property which consists of a leasehold estate. All
of such Property is, or upon the Closing Date will be, free and clear of all
Liens, except Permitted Liens. The applicable Loan Instruments create valid
first Liens on the Collateral described therein, subject only to Permitted Prior
Liens.

      5.7   PROJECTIONS AND FINANCIAL STATEMENTS.

            5.7.1 FINANCIAL STATEMENTS. Borrower has delivered to Agent the
      financial statements and reports described in Exhibit 5.7.1. Such
      financial statements present fairly in all material respects the results
      of operations of the Business of Borrower and Phoenix for the periods
      covered thereby and the financial condition of Borrower and Phoenix as of
      the dates indicated therein. All of the financial statements have been
      prepared in conformity with GAAP or Statutory Accounting Practices, as
      applicable. Since December 31, 1998, there has been no change which has
      had a Material Adverse Effect. Borrower has also delivered to Agent a
      pro-forma balance sheet as of the Closing Date. Such pro-forma balance
      sheet, which assumes the consummation of the transactions contemplated by
      the Loan Instruments, presents fairly in all material respects the
      anticipated financial condition of Guarantor, Borrower, Millers and
      Phoenix as of the Closing Date based on the assumptions set forth therein.

            5.7.2 PROJECTIONS. Borrower has delivered to Agent the projections
      described in Exhibit 5.7.2 of the future operations of Borrower and its
      Subsidiaries. Such projections are based on assumptions that Borrower in
      good faith considered reasonable at the time such assumptions were made,
      as set forth therein.

      5.8 LITIGATION. There is set forth in Exhibit 5.8 a description of all
actions, suits and arbitration proceedings pending or, to the best knowledge of
Borrower, threatened against Borrower or any Subsidiary or maintained by
Borrower or any Subsidiary at law or in equity or before any Governmental Body
which, if adversely determined, could have a Material Adverse Effect.

      5.9 DEFAULTS IN OTHER AGREEMENTS; CONSENTS; CONFLICTING AGREEMENTS.
Neither Borrower nor any Subsidiary is in default under any agreement to which
Borrower or any Subsidiary is a party or by which Borrower or any Subsidiary or
any of their respective Property is bound, the effect of which default could
have a Material Adverse Effect. No authorization, consent, approval or other
action by, and no notice to or filing with, any Governmental Body or any other
Person which has not already been obtained, taken or filed, as applicable, is
required (i) for the due execution, delivery or performance by Borrower of any
of the Loan Instruments or (ii) as a condition to the validity or enforceability
of any of the Loan Instruments or any of the transactions contemplated thereby
or the priority of the Security Interests, except for (A) certain filings to
establish and perfect the Security Interests, (B) filings and approvals required
pursuant to Article 21.49-1 of the Texas Insurance Code (the "Texas Holding
Company Act") and Article 8, Sections 20-481 through 20-481.23 of the Arizona
Insurance Code (the "Arizona Holding Company Act," the Texas Holding Company Act
and the Arizona Holding Company Act hereinafter collectively referred to as the
"Holding Company Acts") pertaining to the acquisition of control of domestic
insurance companies, which filings and approvals are necessary as a condition to
the acquisition of the Millers Capital Stock or the Phoenix Capital Stock upon
foreclosure of the Security Interests therein, and (C) disclosures required
pursuant to the Holding Company Acts subsequent to the initial Loan, with
respect to the pledge of the Millers Capital Stock or the Phoenix Capital Stock.
No provision of any material mortgage, indenture, contract, agreement, statute,
rule, regulation, judgment, decree or order binding on Borrower or Trilogy or
affecting the Property of Borrower or any Subsidiary conflicts with, or requires
any consent which has not already been obtained under, or would in any way
prevent the execution, delivery or performance of the terms of any of the Loan
Instruments or affect the validity or priority of the Security Interests, other
than the requirements of the Holding Company Acts described in (B) and (C) of
this Section 5.9. The execution, delivery or performance of the terms of the
Loan Instruments will not constitute a default under, or result in the creation
or imposition of, or obligation to create, any Lien upon the Property of
Borrower or any Subsidiary pursuant to the terms of any such material mortgage,
indenture, contract or agreement.

      5.10 TAXES. Borrower and each Subsidiary has filed all tax returns
required to be filed, and have paid, or made adequate provision for the payment
of, all material taxes shown to be due and payable on such returns or in any
assessments made against Borrower and each Subsidiary, and no tax liens have
been filed and, to the knowledge of Borrower, no claims are being asserted in
respect of such taxes which are required by GAAP or Statutory Accounting
Practices, as applicable, to be reflected in the financial statements of
Borrower and each Subsidiary and are not so reflected therein. The charges,
accruals and reserves on the books of Borrower and each Subsidiary with respect
to all federal, state, local and other taxes are considered by the management of
Borrower to be adequate, and Borrower does not know of any unpaid assessment
which is or might be due and payable against Borrower or any Subsidiary or any
of their respective Property, except such assessments as are being contested in
good faith and by appropriate proceedings diligently conducted, and for which
adequate reserves have been set aside in accordance with GAAP. None of the
federal or state tax returns of Borrower or any Subsidiary are under audit.

      5.11 COMPLIANCE WITH APPLICABLE LAW. Neither Borrower nor any Subsidiary
is in default in respect of any judgment, order, writ, injunction, decree or
decision of any Governmental Body, which default would have a Material Adverse
Effect. Borrower and each Subsidiary are in compliance in all material respects
with all applicable statutes and regulations, including, without limitation, all
insurance laws and regulations of the State of Texas and of each other state in
which any Insurance Subsidiary conducts an insurance business, all Environmental
Laws, ERISA, and all laws and regulations relating to unfair labor practices,
equal employment opportunity and employee safety, of all Governmental Bodies, a
violation of which would have a Material Adverse Effect.

      5.12 PATENTS, TRADEMARKS AND FRANCHISES. Borrower and each Subsidiary
owns, possesses or has the right to use all patents, trademarks, service marks,
tradenames, copyrights, franchises and rights with respect thereto, necessary
for the conduct of the Business as proposed to be conducted by Borrower and each
Subsidiary after the Closing Date, without any known conflict with the rights of
others and, in each case, free of any Liens other than Permitted Liens.

      5.13 REGULATORY MATTERS. Millers, Phoenix and each Insurance Subsidiary
(i) has duly and timely filed all reports, financial information and other
filings which are required to be filed under the insurance laws or regulations
of the States of Texas and Arizona or any other state in which Millers, Phoenix
and any Insurance Subsidiary conduct an insurance business (including laws
relating to transactions within Borrower's holding company system) or any other
applicable law, rule or regulation of any Governmental Body, the non-filing of
which would have a Material Adverse Effect, and (ii) is in compliance with all
such laws, rules and regulations, the noncompliance with which would have a
Material Adverse Effect. All information provided by or on behalf of Borrower in
any material filing with insurance regulatory officials, the NAIC or any other
Governmental Body was, at the time of filing, true, complete and correct in all
material respects when made, and all appropriate Governmental Bodies have been
notified of any substantial or significant changes in such information as may be
required in accordance with applicable laws, rules and regulations. Except as
set forth in Exhibit 5.13, as at December 31, 1998 all IRIS ratios of Millers
and Phoenix were within the usual range.

      5.14  APPLICATION OF CERTAIN LAWS AND REGULATIONS.    Neither   Borrower
nor any Subsidiary is:

            5.14.1      INVESTMENT COMPANY.     An "investment  company," or a
      company  "controlled" by an "investment  company," within the meaning of
      the Investment Company Act of 1940, as amended.

            5.14.2 PUBLIC UTILITY HOLDING COMPANY ACT. A "holding company," or a
      "subsidiary company" of a "holding company," or an "affiliate" of a
      "holding company" or of a "subsidiary company" of a "holding company," as
      such terms are defined in the Public Utility Holding Company Act of 1935,
      as amended.

            5.14.3 REGULATIONS AS TO BORROWING. Except for laws related to
      regulating insurance companies and insurance holding companies, subject to
      any statute or regulation which regulates the incurrence of any
      Indebtedness for Borrowed Money, including, without limitation, statutes
      or regulations relative to common or interstate carriers or to the sale of
      electricity, gas, steam, water, telephone, telegraph or other public
      utility services.

      5.15 MARGIN REGULATIONS. None of the transactions contemplated by this
Loan Agreement or any of the other Loan Instruments, including the use of the
proceeds of the Loans, will violate or result in a violation of Section 7 of the
Securities Exchange Act of 1934, as amended, or any regulations issued pursuant
thereto, including, without limitation, Regulations T, U and X, and Borrower
does not own or intend to carry or purchase any "margin security" within the
meaning of such Regulation U.

      5.16 OTHER INDEBTEDNESS. Upon the Closing neither Borrower nor any
Subsidiary will have any Indebtedness for Borrowed Money, except for (i)
Borrower's Obligations, (ii) the Permitted Senior Indebtedness, and (iii)
Existing Indebtedness as described on Exhibit 5.16.

      5.17 NO MISREPRESENTATION. Neither this Loan Agreement nor any other Loan
Instrument or certified information furnished or to be furnished by or on behalf
of Borrower to any Lender or Agent in connection with any of the transactions
contemplated hereby or thereby, contains or will contain a misstatement of
material fact, or omits or will omit to state a material fact required to be
stated in order to make the statements contained herein or therein, taken as a
whole, not misleading in the light of the circumstances under which such
statements were made. There is no fact, other than information known to the
public generally, and other than general economic or industry conditions known
to Borrower that would be expected to have a Material Adverse Effect that has
not expressly been disclosed to Agent in writing.

      5.18  EMPLOYEE BENEFIT P1ANS.

            5.18.1 NO OTHER PLANS. Neither Borrower nor any ERISA Affiliate
      maintains or contributes to, or has any obligation under, any Employee
      Benefit Plan other than those identified on Exhibit 5.18.1. Borrower has
      provided Agent accurate and complete copies of all contracts, agreements
      and documents described on Exhibit 5.18.1.

            5.18.2 ERISA AND CODE COMPLIANCE AND LIABILITY. Borrower and each
      ERISA Affiliate is in compliance with all applicable provisions of ERISA
      and the regulations and published interpretations thereunder with respect
      to all Employee Benefit Plans except where failure to comply would not
      result in a material liability to Borrower and except for any required
      amendments for which the remedial amendment period as defined in Section
      401(b) of the Code has not yet expired. Each Employee Benefit Plan that is
      intended to be qualified under Section 401(a) of the Code has been
      determined by the Internal Revenue Service to be so qualified, and each
      trust related to such plan has been determined to be exempt under Section
      401(a) of the Code. No material liability for any taxes or penalties has
      been incurred by Borrower or any ERISA Affiliate which remains unsatisfied
      with respect to any Employee Benefit Plan or any Multiemployer Plan.

            5.18.3 FUNDING. No Pension Plan has been terminated, nor has any
      accumulated funding deficiency (as defined in Section 412 of the Code)
      been incurred (without regard to any waiver granted under Section 412 of
      the Code), nor has any funding waiver from the IRS been received or
      requested with respect to any Pension Plan, nor has Borrower or any ERISA
      Affiliate failed to make any contributions or to pay any amounts due and
      owing as required by Section 412 of the Code, Section 302 of ERISA or the
      terms of any Pension Plan by the due dates of such contributions under
      Section 412 of the Code or Section 302 of ERISA, nor has there been any
      event requiring any disclosure under Section 4041(c)(3)(C), 4063(a) or
      4068 of ERISA with respect to any Pension Plan.

            5.18.4 PROHIBITED TRANSACTIONS AND PAYMENTS. Except for cases in
      which no material liability (including liability for indemnification) to
      Borrower or an ERISA Affiliate has arisen, neither Borrower nor any ERISA
      Affiliate has: (i) engaged in a nonexempt "prohibited transaction" as such
      term is defined in Section 406 of ERISA or Section 4975 of the Code; (ii)
      incurred any liability to the PBGC which remains outstanding other than
      the payment of premiums and there are no premium payments which are due
      and unpaid; (iii) failed to make a required contribution or payment to a
      Multiemployer Plan; or (iv) failed to make a required installment or other
      required payment under Section 412 of the Code.

            5.18.5      NO TERMINATION EVENT.   No   Termination   Event   has
      occurred or is reasonably expected to occur.

            5.18.6 ERISA LITIGATION. No material proceeding, claim, lawsuit
      and/or investigation is existing or, to the best knowledge of Borrower,
      threatened concerning or involving any (i) employee welfare benefit plan
      (as defined in Section 3(1) of ERISA) currently maintained or contributed
      to by Borrower or any ERISA Affiliate, (ii) Pension Plan or (iii)
      Multiemployer Plan.

      5.19  EMPLOYEE MATTERS.

            5.19.1 COLLECTIVE BARGAINING AGREEMENTS; GRIEVANCES. (i) None of the
      employees of Borrower or any Subsidiary is subject to any collective
      bargaining agreement, (ii) no petition for certification or union election
      is pending with respect to the employees of Borrower or any Subsidiary and
      no union or collective bargaining unit has sought such certification or
      recognition with respect to the employees of Borrower or any Subsidiary,
      and (iii) there are no strikes, slowdowns, work stoppages, unfair labor
      practice complaints, grievances, arbitration proceedings or controversies
      pending or, to the best knowledge of Borrower, threatened against Borrower
      or any Subsidiary by any of employees, other than employee grievances or
      controversies arising in the ordinary course of business that would not in
      the aggregate be expected to have a Material Adverse Effect.

            5.19.2 CLAIMS RELATING TO EMPLOYMENT. Neither Borrower nor any
      Subsidiary is subject to any employment agreement or non-competition
      agreement with any former employer or any other Person which agreement
      would have a Material Adverse Effect due to (i) any information which
      Borrower or any Subsidiary would be prohibited from using under the terms
      of such agreement or (ii) any legal considerations relating to unfair
      competition, trade secrets or proprietary information.

      5.20 BURDENSOME OBLIGATIONS. After giving effect to the transactions
contemplated by the Loan Instruments, (i) neither Borrower nor any Subsidiary
(A) will be a party to or be bound by any franchise, agreement, deed, lease or
other instrument, or be subject to any restriction, which is so unusual or
burdensome so as to cause, in the foreseeable future, a Material Adverse Effect,
or (B) intends to incur, or believes that it will incur, debts beyond its
ability to pay such debts as they become due, and (ii) each of Borrower and each
Subsidiary (A) owns and will own Property, the fair saleable value of which is
(I) greater than the total amount of its liabilities (including contingent
liabilities), and (II) greater than the amount that will be required to pay the
probable liabilities of its then existing debts as they become absolute and
matured, and (B) has and will have capital that is not unreasonably small in
relation to its business as presently conducted and as proposed to be conducted.
Neither Borrower nor any Subsidiary presently has knowledge of any future
expenditures needed to meet the provisions of federal or state statutes, orders,
rules or regulations will be so burdensome so as to have a Material Adverse
Effect.

      5.21 INSURANCE. There is set forth in Exhibit 5.21 a description of all
policies of insurance that are in effect as of the Closing Date with respect to
which Borrower and any Subsidiary is the insured. All premiums on such policies
have been paid when due, no written notice of cancellation has been received
with respect to any such policies, to the knowledge of Borrower such policies
are in full force and effect and Borrower is in compliance with all material
conditions contained in such policies.

      5.22 YEAR 2000 COMPLIANCE. Borrower and each Subsidiary have reviewed the
areas within their business and operations which could reasonably be expected to
be adversely affected by, and have developed or are developing a program to
address on a timely basis, the Year 2000 Problem, and have made related
appropriate inquiry of material suppliers and vendors. Based on such review and
program, Borrower believes that the Year 2000 Problem will not have a Material
Adverse Effect. From time to time, at the request of Bank, Borrower and each
Subsidiary shall provide to Bank such updated information or documentation as is
requested regarding the status of their efforts to address the Year 2000
Problem.

                                     ARTICLE VI

                              AFFIRMATIVE COVENANTS

      Until all of Borrower's Obligations are paid and performed in full,
Borrower agrees that it will, and will cause each Subsidiary to:

      6.1 LEGAL EXISTENCE; GOOD STANDING. Maintain its existence and its good
standing (if applicable) in the jurisdiction of its formation and its
qualification or authorization in each jurisdiction in which the failure to be
so qualified or authorized would have a Material Adverse Effect, and in any
event in each jurisdiction in which Borrower or any Subsidiary transacts
Business.

      6.2 INSPECTION. Permit representatives of each Lender at reasonable times
to (i) visit its offices, (ii) examine its books and records and Accountants'
reports relating thereto, (iii) make copies or extracts therefrom, (iv) discuss
its affairs with its officers, (v) examine and inspect its Property and (vi)
meet and discuss its affairs with the Accountants, and upon the occurrence and
during the continuance of an Incipient Default or Event of Default, such
Accountants, as a condition to their retention by Borrower, are hereby
irrevocably authorized by Borrower to fully discuss and disclose all such
affairs with each Lender.

      6.3 FINANCIAL STATEMENTS AND OTHER INFORMATION. Maintain internal
accounting policies and procedures reasonably satisfactory to Lenders and a
standard system of accounting in accordance with GAAP, or, with respect to each
Insurance Subsidiary, in accordance with Statutory Accounting Practices, and
furnish to Agent and LaSalle:

            6.3.1 QUARTERLY STATEMENTS.   As  soon  as  available  and  in any
      event  within 60 days  after the close of the first  three  quarters  of
      each year:

                  (a)   the unaudited  consolidated  balance sheet of Borrower
            and its  Subsidiaries  as of the end of such quarter,  prepared in
            accordance with GAAP;

                  (b) unaudited consolidated statements of operations,
            shareholders' equity and, if prepared in the normal course, cash
            flows, of Borrower, and its Subsidiaries for such quarter and for
            the period from the beginning of the then current year to the end of
            such quarter, setting forth in each case in comparative form the
            corresponding figures for the corresponding period in the preceding
            year, prepared in accordance with GAAP;

                  (c) quarterly financial statements of each Insurance
            Subsidiary as filed with insurance regulatory officials, prepared in
            accordance with Statutory Accounting Practices; and

                  (d)   INSpire's quarterly reports as filed on Form 10-Q;

      all in reasonable detail, containing such information as any Lender
      reasonably may require, and, except in the case of INSpire, certified by
      the Chief Financial Officer as prepared in accordance with GAAP or
      Statutory Accounting Practices, as applicable, on a basis consistent with
      prior years, subject to normal year-end adjustments and absence of
      footnotes.

            6.3.2 ANNUAL STATEMENTS. Assoon as available and in any event within
      120 days (75 days in the case of Subsections 6.3.2(c) and 6.3.2(g) and 150
      days in the case of Subsection 6.3.2(f)) after the close of each year:

                  (a)   the  consolidated  balance  sheet of Borrower  and its
            Subsidiaries  as of the end of such year,  prepared in  accordance
            with GAAP;

                  (b) the consolidated statements of operations, shareholders'
            equity and cash flows of Borrower and its Subsidiaries for such year
            setting forth in each case in comparative form showing the
            corresponding figures for the preceding year, prepared in accordance
            with GAAP;

                  (c) the Annual Statement of each Insurance Subsidiary, on the
            form promulgated by the NAIC and as filed with the Texas and Arizona
            Commissioners of Insurance, as applicable, or any other state in
            which Millers, Phoenix or any other Insurance Subsidiary conducts an
            insurance business, prepared in accordance with Statutory Accounting
            Practices, including Management's Discussion and Analysis with
            respect to each Insurance Subsidiary, prepared in conformity with
            the standards developed by the NAIC;

                  (d)   INSpire's annual report as filed on Form 10-K;

                  (e) an opinion of the Accountants which shall accompany the
            financial statements described in subsection 6.3.2(a) and subsection
            6.3.2(b) above, which opinion shall be unqualified as to going
            concern and scope of audit, stating that (i) the examination by the
            Accountants in connection with such financial statements has been
            made in accordance with generally accepted auditing standards, (ii)
            such financial statements have been prepared in conformity with GAAP
            and/or Statutory Accounting Practices, as appropriate, and in a
            manner consistent with prior periods, and (iii) such financial
            statements fairly present in all material respects the financial
            position and results of operations of Borrower and each Subsidiary;

                  (f) an opinion of the Accountants with respect to the Admitted
            Assets, Total Liabilities and Statutory Surplus of each Insurance
            Subsidiary as of the end of such year, and the results of its
            operations and its cash flows for such year, which opinion shall be
            unqualified as to going concern and scope of audit, stating that (i)
            the examination by the Accountants in connection with such financial
            statements has been made in accordance with generally accepted
            auditing standards, (ii) such financial statements have been
            prepared in conformity with Statutory Accounting Practices and in a
            manner consistent with prior periods, and (iii) such financial
            statements fairly present in all material respects the financial
            position and results of operations of each Insurance Subsidiary; and

                  (g) the Statement of Actuarial Opinion of each Insurance
            Subsidiary's loss reserve and loss reserves and loss adjustment
            expense reserves prepared by a Qualified Actuary as such term is
            defined in the Annual Statement Instructions for Property and
            Casualty Companies and prepared in accordance with standards
            established by the Casualty Actuarial Society and the American
            Academy of Actuaries. The actuary's opinion must opine as to the
            adequacy of each Insurance Subsidiary's reserves for reported and
            "incurred but not reported" claims.

            6.3.3 OFFICER'S CERTIFICATES. The financial  statements  described
      in  subsections  6.3.1 and 6.3.2 shall be  accompanied  by a  Compliance
      Certificate signed by the Chief Financial Officer.

            6.3.4 AUDIT REPORTS. Promptly upon receipt thereof, a copy of each
      report, other than the reports referred to in subsection 6.3.2, including
      any so-called "Management Letter" or similar report, submitted to Borrower
      by the Accountants in connection with any annual, interim or special audit
      made by the Accountants of the books of Borrower.

            6.3.5 FINANCIAL PROJECTIONS. As soon as practicable, and in any
      event no later than 45 days after the commencement of each Fiscal Year,
      financial projections and a budget for the Borrower and its Subsidiaries
      for such Fiscal Year in reasonable detail.

            6.3.6 NOTICE OF DEFAULTS; LOSS. Prompt written notice if: (i) any
      Indebtedness of Borrower or any Subsidiary is declared or shall become due
      and payable prior to its declared or stated maturity, or called and not
      paid when due, (ii) an event has occurred that enables the holder of any
      note, or other evidence of such Indebtedness, certificate or security
      evidencing any such Indebtedness of Borrower or any Subsidiary to declare
      such Indebtedness due and payable prior to its stated maturity, (iii)
      there shall occur and be continuing an Incipient Default or Event of
      Default, accompanied by a statement of the Chief Financial Officer setting
      forth what action Borrower proposes to take in respect thereof, or (iv)
      any event shall occur which has a Material Adverse Effect, including the
      amount or the estimated amount of any loss or depreciation or adverse
      effect.

            6.3.7 NOTICE OF SUITS, ADVERSE EVENTS. Prompt written notice of: (i)
      any judgment or any citation, summons, subpoena, order to show cause or
      other order naming Borrower or any Subsidiary a party to any proceeding
      before any Governmental Body which might reasonably be expected to have a
      Material Adverse Effect and include with such notice a copy of such
      judgment, citation, summons, subpoena, order to show cause or other order,
      (ii) any restriction, suspension, lapse or termination of any License,
      permit, franchise, agreement or other authorization issued to Borrower or
      any Subsidiary by any Governmental Body or any other Person that is
      material to the operation of the Business of Borrower or any Subsidiary,
      which restriction, suspension, lapse or termination might reasonably be
      expected to have a Material Adverse Effect, and (iii) any refusal by any
      Governmental Body or any other Person to renew or extend any such License,
      permit, franchise, agreement or other authorization, which refusal might
      reasonably be expected to have a Material Adverse Effect.

            6.3.8 REPORTS TO SHAREHOLDERS, CREDITORS AND GOVERNMENTAL BODIES.

                  (a) Promptly upon becoming available, copies of all annual
            financial statements and annual reports sent or made available
            generally by Borrower to its shareholders, of all regular and
            periodic reports and all registration statements and prospectuses
            filed by Borrower with any securities exchange or with the SEC, and
            of all statements generally made available by Borrower or others
            concerning material developments in Borrower's or any Subsidiary's
            Business.

                  (b) Promptly upon becoming available, copies of any periodic
            or special reports filed by Borrower or any Subsidiary with any
            Governmental Body or Person other than those described in subsection
            6.3.10, if such reports indicate any material change in the
            business, operations, affairs or condition of Borrower or any
            Subsidiary, or if copies thereof are requested by any Lender, and
            copies of any material notices and other communications from any
            Governmental Body or Person, other than those described in
            subsection 6.3.10, which specifically relate to Borrower or any
            Subsidiary.

            6.3.9 ERISA NOTICES AND REQUESTS.

                  (a) With reasonable promptness, and in any event within 30
            days after occurrence of any of the following, Borrower will give
            notice of and/or deliver to Agent copies of (i) the establishment of
            any new Pension Plan or Multiemployer Plan; (ii) the commencement of
            contributions to any Pension Plan or Multiemployer Plan to which
            Borrower or any of its ERISA Affiliates was not previously
            contributing or any increase in the benefits of any existing Pension
            Plan or Multiemployer Plan; (iii) each funding waiver request filed
            with respect to any Pension Plan and all communications received or
            sent by Borrower or any ERISA Affiliate with respect to such
            request; and (iv) the failure of Borrower or any ERISA Affiliate to
            make a required installment or payment under Section 302 of ERISA or
            Section 412 of the Code by the due date.

                  (b) Promptly and in any event within 10 days of becoming aware
            of the occurrence of or forthcoming occurrence of any (i)
            Termination Event or (ii) It prohibited transaction", as such term
            is defined in Section 406 of ERISA or Section 4975 of the Code, in
            connection with any Pension Plan or any trust created thereunder, a
            notice specifying the nature thereof, what action Borrower has
            taken, is taking or proposes to take with respect thereto and, when
            known, any action taken or threatened by the Internal Revenue
            Service, the Department of Labor or the PBGC with respect thereto.

                  (c) With reasonable promptness but in any event within 10 days
            after the occurrence of any of the following (or with respect to (i)
            and (iii) below, upon written request), copies of. (i) any favorable
            or unfavorable determination letter from the Internal Revenue
            Service regarding the qualification of an Employee Benefit Plan
            under Section 401(a) of the Code; (ii) all notices received by
            Borrower or any ERISA Affiliate of the PBGC's intent to terminate
            any Pension Plan or to have a trustee appointed to administer any
            Pension Plan; (iii) each Schedule B (Actuarial Information) to the
            annual report (Form 5500 Series) filed by Borrower or any ERISA
            Affiliate with the Internal Revenue Service with respect to each
            Pension Plan; and (iv) all notices received by Borrower or any ERISA
            Affiliate from a Multiemployer Plan sponsor concerning the
            imposition or amount of withdrawal liability pursuant to Section
            4202 of ERISA. Borrower will notify Agent promptly in writing if
            Borrower or any ERISA Affiliate has filed or intends to file a
            notice of intent to terminate any Pension Plan under a distress
            termination within the me i g of Section 4041(c) of ERISA.

            6.3.10      INSURANCE REGULATORY REPORTS AND FILING.  Within    10
      days after receipt or filing,  copies of each of the following  received
      or filed, as applicable:

                  (a) all final examination reports prepared with respect to
            each Insurance Subsidiary by the insurance regulatory officials of
            any state (including reports of financial examinations and so-called
            "market conduct" examinations);

                  (b) notice of any proposed payment of any extraordinary
            dividend by each Insurance Subsidiary, as defined in Article
            21.49-1, Section 4(c) of the Texas Insurance Code;

                  (c) all other financial reporting filings, including but not
            limited to Form B and C filings, made by or with respect to each
            Insurance Subsidiary pursuant to the Holding Company Act;

                  (d) all reports, corrective orders, notices or filings made or
            issued with respect to each Insurance Subsidiary's Risk-Based
            Capital;

                  (e) all reports generated by the NAIC with respect to each
            Insurance Subsidiary's Insurance Regulatory Information Systems
            ("IRIS") ratios or results, and all notices of the placement of each
            Insurance Subsidiary on any NAIC "watch list";

                  (f) all reports or filings made by or with respect to each
            Insurance Subsidiary concerning the issuance of additional capital
            stock or any other increase in the capital of each Insurance
            Subsidiary, and any permits or other regulatory authorizations
            issued in connection therewith;

                  (g) notice of any pending investigation of the operations of
            each Insurance Subsidiary by insurance regulatory officials which
            might reasonably be expected to have a Material Adverse Effect; and

                  (h) all reports, evaluations, appraisals, summaries and
            similar correspondence prepared by any reinsurers of any Insurance
            Subsidiary as reasonably requested by Lenders.

            6.3.11      OTHER INFORMATION.

                  (a) Immediate notice of any change in the name of Borrower or
            any Subsidiary, any material sale or purchase of Property outside
            the regular course of business of Borrower or any Subsidiary, and
            any change in the business or financial affairs of Borrower or any
            Subsidiary, which change would have a Material Adverse Effect.

                  (b) Promptly upon request therefor, such other financial
            reports prepared in the normal course and other information relating
            to the past, present or future financial condition, operations,
            plans and projections of Borrower or any Subsidiary as any Lender
            reasonably may request from time to time.

      6.4 REPORTS TO GOVERNMENTAL BODIES AND OTHER PERSONS. Timely file all
material reports, applications, documents, instruments and information required
to be filed pursuant to all rules, regulations or requests of any Governmental
Body or other Person having jurisdiction over the operation of the business of
Borrower or any Subsidiary, including, but not limited to, all filings required
under the Holding Company Act in connection with the Loans or the pledge of the
Millers Capital Stock or the Phoenix Capital Stock in connection therewith.

      6.5 MAINTENANCE OF LICENSES AND OTHER AGREEMENTS. Maintain in full force
and effect at all times, and apply in a timely manner for renewal of, all
Licenses, trademarks, tradenames and agreements necessary for the operation of
the Business, the loss of any of which would have a Material Adverse Effect.

      6.6 INSURANCE. Maintain in full force and effect at all times such
liability, property and casualty insurance and fidelity and other bonds as may
be customarily maintained by similarly situated companies, in such amounts, with
such companies, under such policies and in such form as shall be reasonably
satisfactory to Agent.

      6.7 COMPLIANCE WITH LAWS. Comply with all federal, state and local laws,
ordinances, requirements and regulations (including all insurance laws and
regulations, ERISA and all Environmental Laws) and all judgments, orders,
injunctions and decrees applicable to Borrower or any Subsidiary and their
respective operations, the failure to comply with which would have a Material
Adverse Effect.

      6.8 TAXES AND CLAIMS. Pay and discharge all taxes, assessments and
governmental charges or levies imposed upon it or upon its income or profits, or
upon any capital or Property belonging to it, or upon or with respect to
insurance policies issued by it, prior to the date on which penalties attach
thereto, and all lawful claims which, if unpaid, might become a Lien (other than
a Permitted Lien) upon the Property of Borrower, provided that neither Borrower
nor any Subsidiary shall be required by this Section 6.8 to pay any such amount
if the same is being contested diligently and in good faith by appropriate
proceedings and as to which Borrower or such Subsidiary, as applicable, has set
aside reserves on its books satisfactory to Lenders in their reasonable
discretion.

      6.9 MAINTENANCE OF PROPERTIES. Maintain all of its Property necessary in
the operation of its Business in good working order and condition, ordinary wear
and tear excepted.

      6.10 ADDITIONAL NON-INSURANCE SUBSIDIARIES. Each Non-Insurance Subsidiary
shall timely execute a certificate from the secretary of such Non-Insurance
Subsidiary certifying (i) the Articles of Incorporation, together with all
amendments thereto, certified by the Secretary of State from their respective
states of formation, (ii) the Bylaws, together with all amendments thereto and
(iii) a good standing certificate from their respective states of formation and
deliver such other instruments and documents as Lenders reasonably may require.
Any Non-Insurance Subsidiary not a Non-Insurance Subsidiary as of the initial
Closing, shall execute a set of Loan Instruments, which were required to be
executed by any Non-Insurance Subsidiaries which were a party to the Security
Agreement, as deemed necessary by the Lenders.

                                   ARTICLE VII

                                 NEGATIVE COVENANTS

      Until all of Borrower's Obligations are paid and performed in full,
without the prior written consent of the Requisite Lenders Borrower shall not,
and shall not permit any Subsidiary to:

      7.1 BORROWING. Create, incur, assume or suffer to exist any liability for
Indebtedness for Borrowed Money, except (i) Borrower's Obligations, (ii)
Permitted Senior Indebtedness, (iii) Indebtedness owed to the FHLB pursuant to
the FHLB Agreement, (iv) Indebtedness owed to Bank of America pursuant to the
Bank of America Agreement, (v) the Outstanding Letters of Credit and (vi)
Indebtedness incurred or assumed in connection with acquisitions permitted under
Section 7.3.

      7.2 LIENS. Create, incur, assume or suffer to exist any Lien upon any of
its Property, whether now owned or hereafter acquired, except Permitted Liens
and liens securing indebtedness incurred or assumed in connection with
acquisitions permitted under Section 7.3.

      7.3 MERGER AND ACQUISITION. Except for Borrower's acquisition of Phoenix,
engage in an Acquisition of any Person (a) unless the entity to be acquired is
engaged in the insurance industry, (b) the total cash and cash equivalents paid
and indebtedness assumed in connection with the acquisition is equal to or less
than $10,000,000, (c) to the extent permitted by applicable law, all stock and
assets of the acquired entity are pledged to Lenders, and (d) before and after
giving effect to the acquisition no Incipient Default or Event of Default exists
or would exist.

      7.4 CONTINGENT LIABILITIES. Assume, guarantee, endorse, contingently agree
to purchase, become liable in respect of any letter of credit, or otherwise
become liable upon the obligation of any Person, except (i) the Outstanding
Letters of Credit, (ii) liabilities arising from the endorsement of negotiable
instruments for deposit or collection or similar transactions in the ordinary
course of business, (iii) the issuance of insurance policies or surety bonds in
connection with the Business and (iv) guaranties of Indebtedness for Borrowed
Money permitted under Section 7.1.

      7.5 DISTRIBUTIONS. Except for payments made in connection with the Right
of First Refusal (and only if no Event of Default or Incipient Default exists),
make any dividends, distributions or other shareholder expenditures with respect
to the Borrower Capital Stock or apply any of its Property to the purchase,
redemption or other retirement of, or set apart any sum for the payment of, or
make any other distribution by reduction of capital or otherwise in respect of,
all or any portion of the Borrower Capital Stock, except that (i) Borrower may
declare and pay quarterly cash dividends in any year in an aggregate amount for
all such dividends paid during such year not to exceed 50% of its Net Income for
the preceding year, provided no Incipient Default or Event of Default then
exists or would be created by the payment of such dividends and (ii) Borrower
may pay dividends by issuance of additional Borrower Capital Stock.

      7.6   CAPITAL EXPENDITURES.   Make or incur any Capital  Expenditures in
any  year  in  excess  of   $3,000,000  in  the  aggregate  for  Borrower  and
Subsidiaries.

      7.7 OBLIGATIONS AS LESSEE UNDER OPERATING LEASE. Except as set forth on
Exhibit 5.5.3, enter into any arrangement as lessee of Property under any
Operating Lease if the aggregate rentals for Borrower and each Subsidiary for
all such Operating Leases during any year would exceed $2,000,000.

      7.8 INVESTMENTS, ACQUISITIONS AND LOANS. At any time purchase or otherwise
acquire, hold or invest in the capital stock of, or any other interest in, any
Person, or make any loan or advance to, or enter into any arrangement for the
purpose of providing funds or credit to, or make any other investment, whether
by way of capital contribution or otherwise, in or with any Person, including,
without limitation, any Affiliate (each an "Investment"), except (i) with
respect to any Insurance Subsidiary, for investments made in accordance with the
Investment Policy and the insurance laws and regulations of the State of Texas
and the State of Arizona and (ii) that Borrower may from time to time make
Investments in any of its wholly-owned Subsidiaries and any of the Subsidiaries
may at any time make Investments in any other of such Subsidiaries and make
Acquisitions permitted under Section 7.3 but only to the extent that Lender has
a first priority perfected security interest in 100% of the Borrower's stock
ownership with respect to the Insurance Subsidiaries and a first priority
perfected security interest with respect to 100% of the assets of the
Non-insurance Subsidiaries.

      7.9   FUNDAMENTAL BUSINESS CHANGES. Materially  change the nature of its
business or engage in any business other than the Business.

      7.10 SALE OR TRANSFER OF ASSETS. Sell, lease, assign, transfer or
otherwise dispose of any Property (other than in the ordinary course of
business) except for the sale or disposition of (i) Property which is not
material to or necessary for the continued operation of its Business and (ii)
obsolete or unusable items of equipment.

      7.11  AMENDMENT OF CERTAIN INSTRUMENTS.   Amend,  modify  or  waive  any
term or provision of any of its articles of incorporation or by-laws.

      7.12 ISSUANCE OF CAPITAL. Issue or sell or permit, to be issued or sold
any additional capital stock or any interests convertible into or exercisable
for any such additional capital stock, except that Borrower may (i) issue and
sell capital stock or any interest convertible into or exercisable for capital
stock and (ii) permit any Subsidiary of Borrower to issue and sell additional
capital stock to Borrower or any wholly-owned Subsidiary of Borrower, provided
that such stock is issued in accordance with applicable insurance laws and
regulations and pledged to Agent pursuant to the Pledge Agreement.

      7.13 TRANSACTIONS WITH AFFILIATES. Sell, lease, assign, transfer or
otherwise dispose of any Property to any Affiliate of Borrower, lease Property,
render or receive services or purchase assets from any such Affiliate, or
otherwise enter into any contractual relationship with any Affiliate of
Borrower, except for (i) dividends payable by an Insurance Subsidiary to
Borrower, (ii) transactions or agreements between Borrower and any Insurance
Subsidiary which comply in all respects with the Holding Company Act (including
dividends payable by any Insurance Subsidiary to Borrower in respect of the
Millers Capital Stock or the Phoenix Capital Stock), (iii) any transaction the
terms of which are no less favorable to Borrower or any of its wholly-owned
Subsidiaries, as the case may be, than those that might be obtained at the time
from unrelated Persons or (iv) any transaction between Borrower and any of its
direct or indirect wholly-owned Subsidiaries or between any of its direct or
indirect wholly-owned Subsidiaries.

      7.14  COMPLIANCE WITH ERISA.

            (i)   permit the occurrence of any  Termination  Event which would
      result in a liability  to Borrower or any ERISA  Affiliate  in excess of
      $100,000;

            (ii) permit the present value of all benefit liabilities under all
      Pension Plans to exceed the current value of the assets of such Pension
      Plans allocable to such benefit liabilities by more than $100,000;

            (iii) permit any accumulated funding deficiency in excess of
      $100,000 (as defined in Section 302 of ERISA and Section 412 of the Code)
      with respect to any Pension Plan, whether or not waived;

            (iv) fail to make any contribution or payment to any Multiemployer
      Plan which Borrower or any ERISA Affiliate may be required to make under
      any agreement relating to such Multiemployer Plan, or any law pertaining
      thereto which results in or is likely to result in a liability in excess
      of $100,000;

            (v) engage, or permit Borrower or any ERISA Affiliate to engage, in
      any "prohibited transaction" as such term is defined in Section 406 of
      ERISA or Section 4975 of the Code for which a civil penalty pursuant to
      Section 502(i) of ERISA or a tax pursuant to Section 4975 of the Code in
      excess of $100,000 is imposed;

            (vi) permit the establishment of any post-retirement welfare
      benefits (except such benefits as mandated by federal or state law) or,
      except for employment agreements, establish or amend any Employee Benefit
      Plan which establishment or amendment could result in liability to
      Borrower or any ERISA Affiliate in excess of $500,000 on an annual basis
      or increase the obligation of Borrower or any ERISA Affiliate to a
      Multiemployer Plan which establishment, liability or increase,
      individually or together with all similar liabilities and increases, is
      material to Borrower or any ERISA Affiliate; or

            (vii) fail, or permit any ERISA Affiliate to fail, to establish,
      maintain and operate each Employee Benefit Plan in compliance in all
      material respects with ERISA, the Code and all other applicable laws and
      regulations and interpretations thereof

      7.15 BUSINESS LOCATIONS. Change the location of its chief executive
office, any of its Property or the place where its books and records are kept
unless (i) Lenders shall receive written notice thereof within 30 days
thereafter, (ii) Borrower and each Subsidiary shall have complied with all
material applicable laws, rules and regulations and shall have received all
required consents and approvals from any Governmental Body, including, without
limitation, the insurance regulatory officials of the State of Texas, and (iii)
Borrower shall have executed and delivered to Lenders any documents Lenders may
reasonably require in order to maintain the validity and priority of the
Security Interests.

      7.16  MINIMUM CONSOLIDATED NET WORTH.     Permit  the  Consolidated  Net
Worth as of the last day of any quarter to be less than  $55,000,000  plus 50%
of cumulative annual positive Net Income since the Closing Date.

      7.17  MAXIMUM CONSOLIDATED LEVERAGE RATIO.      Permit the  Consolidated
Leverage  Ratio  to  exceed  .40 to 1.0  tested  quarterly  at the end of each
fiscal quarter.

      7.18 CONSOLIDATED FIXED CHARGE RATIO. Permit the Consolidated Fixed Charge
Ratio to be less than 1.25 to 1.0 in any year tested quarterly at the end of
each fiscal quarter and calculated on a rolling four quarters basis.

      7.19 MINIMUM STATUTORY SURPLUS OF MILLER. Permit the Statutory Surplus of
Millers (after excluding all unrealized gains since December 31, 1998 in
investments in INSpire and excluding unrealized losses since December 31, 1998
in investments in INSpire up to $20,000,000) as of the last day of any fiscal
quarter to be less than $80,000,000.

      7.20  MINIMUM STATUTORY SURPLUS OF PHOENIX.     Permit   the   Statutory
Surplus of  Phoenix  as of the last day of any fiscal  quarter to be less than
$12,000,000.

      7.21  NET LEVERAGE RATIO.     Permit   the  ratio  of  (i)  the  sum  of
Annualized Net Written  Premiums as of the end of any fiscal quarter,  to (ii)
Statutory Surplus as of the end of such quarter to be greater than 3.0 to 1.0.

      7.22 MINIMUM COMPANY ACTION LEVEL. Permit the Statutory Surplus of all
Insurance Subsidiaries to be less than 125% of the Company Action Level for any
year beginning with 1999 or permit a Company Action Level Event to occur.

      7.23  A.M. BEST RATING. Permit  the A.M.  Best  rating of  Millers to be
less than " B + and of Phoenix to be less than "B + + " at any time.

      7.24 REINSURANCE. Permit Millers, Phoenix or other Insurance Subsidiary to
cede risks to (reinsure with) any (i) company having an A.M. Best rating lower
than "A-," or (ii) any other company not rated by A.M. Best so long as Millers,
Phoenix or such other Insurance Subsidiary is entitled under applicable
insurance laws and regulations to receive credit for reinsurance with such
company; provided, however, that Millers, Phoenix or other Insurance
Subsidiaries may cede risks to (reinsure with) an Affiliate without the prior
written consent of the Requisite Lenders so long as Borrower provides notice of
such to Agent within ten (10) days after such cession. Attached as Exhibit 7.23
is the Order of Pooling issued by the Texas Department of Insurance. Any
subsequent Orders of Pooling shall be provided to the Lender.

                                    ARTICLE VIII

                                DEFAULT AND REMEDIES

      8.1   EVENTS OF DEFAULT.      The  occurrence  of any  of the  following
shall constitute an Event of Default under the Loan Instruments:

      8.1.1 DEFAULT IN PAYMENT.     If  Borrower  shall fail to pay all or any
portion of Borrower's Obligations when the same become due and payable.

      8.1.2 BREACH OF COVENANTS.

            (a) If Borrower shall fail to observe or perform any covenant or
      agreement made by Borrower contained in Section 6.1, 6.2 or 6.5 or in
      Article VII;

            (b) If Borrower or a Subsidiary shall fail to observe or perform any
      covenant or agreement (other than those referred to in subparagraph (a)
      above or specifically addressed elsewhere in this Section 8.1) made by
      Borrower or a Subsidiary in any of the Loan Instruments to which Borrower
      or a Subsidiary is a party, and such failure shall continue for a period
      of 30 days after written notice of such failure is given by LaSalle.

      8.1.3 BREACH OF WARRANTY. If any representation or warranty made by or on
behalf of Borrower in or pursuant to any of the Loan Instruments or in any
instrument or document furnished in compliance with the Loan Instruments shall
prove to be false or misleading in any material respect on the date made.

      8.1.4 DEFAULT UNDER OTHER INDEBTEDNESS FOR BORROWED MONEY. If (i) Borrower
at any time shall be in default (as principal or guarantor or other surety) in
the payment of any principal of or premium or interest on any Indebtedness for
Borrowed Money (other than Borrower's Obligations) beyond the grace period, if
any, applicable thereto and the aggregate amount of such payments then in
default beyond such grace period shall exceed $1,000,000, or (ii) any default
shall occur in respect of any issue of Indebtedness for Borrowed Money of
Borrower (other than Borrower's Obligations) outstanding in a principal amount
of at least $1,000,000, or in respect of any agreement or instrument relating to
any such issue of Indebtedness for Borrowed Money, and such default shall
continue beyond the grace period, if any, applicable thereto.

      8.1.5 BANKRUPTCY; INSOLVENCY.

            (a) If Borrower or any Subsidiary shall (i) generally not be paying
      its debts as they become due, (ii) file, or consent, by answer or
      otherwise, to the filing against it of a petition for relief or
      reorganization or arrangement or any other petition in bankruptcy or
      insolvency under the laws of any jurisdiction (including the filing of a
      liquidation order with respect to any Insurance Subsidiary), (iii) make an
      assignment for the benefit of creditors, (iv) consent to the appointment
      of a custodian, receiver, trustee or other officer with similar powers for
      Borrower or any Subsidiary, or for any substantial part of the Property of
      Borrower or any Subsidiary, or (v) be adjudicated insolvent.

            (b) If any Governmental Body of competent jurisdiction shall enter
      an order appointing, without consent of Borrower or any Subsidiary, a
      custodian, rehabilitator, conservator, receiver, trustee or other officer
      with similar powers with respect to Borrower or any Subsidiary, or with
      respect to any substantial part of the Property belonging to Borrower or
      any Subsidiary, or if an order for relief shall be entered in any case or
      proceeding for liquidation or reorganization or otherwise to take
      advantage of any bankruptcy or insolvency law of any jurisdiction, or
      ordering the dissolution, winding-up or liquidation of Borrower or any
      Subsidiary, or if any petition for any such relief shall be filed against
      Borrower or any Subsidiary and such petition shall not be dismissed or
      stayed within 60 days.

            8.1.6 JUDGMENTS. If the aggregate amount of all judgments or awards
      against Borrower or any Subsidiary on a consolidated basis which shall
      have been outstanding for a period of 30 days or more from the date of the
      entry thereof and shall not have been discharged in full or stayed pending
      appeal exceeds $1,000,000 in excess of insured amounts.

            8.1.7 IMPAIRMENT OF LICENSES; OTHER AGREEMENTS. If (i) any
      Governmental Body shall revoke, terminate, restrict, suspend, materially
      adversely modify or fail to renew any License of Borrower or any
      Subsidiary, the continuation of which is material to the continuation of
      the Business of Borrower or any Subsidiary and such revocation,
      termination, restriction, suspension, material adverse modification or
      failure to renew is not cured within 30 days of notice thereof, or (ii)
      there shall exist any violation or default in the performance of, or a
      material failure to comply with any agreement, or condition or term of any
      License, which violation, default or failure has a Material Adverse
      Effect, or (iii) any agreement which is necessary to the operation of such
      Business shall be revoked or terminated and not replaced by a reasonable
      substitute within 30 days after the date of such revocation or
      termination, and such revocation or termination and non-replacement could
      reasonably be expected to have a Material Adverse Effect.

            8.1.8 COLLATERAL. If any material portion of the Collateral shall be
      seized or taken by a Governmental Body or Person, or Borrower shall fail
      to maintain or cause to be maintained the Security Interests and priority
      of the Loan Instruments as against any Person, or the title and rights of
      Borrower to any material portion of the Collateral shall have become the
      subject matter of litigation which could reasonably be expected to result
      in impairment or loss of the security provided by the Loan Instruments.

            8.1.9 ERISA - PENSION PLANS. If (i) Borrower or any ERISA Affiliate
      fails to make full payment when due of all amounts which, under the
      provisions of any Pension Plan or Section 412 of the Code, Borrower or any
      ERISA Affiliate is required to pay as contributions thereto and such
      failure results in or is likely to result in a Material Adverse Effect; or
      (ii) an accumulated funding deficiency in excess of $100,000 occurs or
      exists, whether or not waived, with respect to any Pension Plan; or (iii)
      a Termination Event occurs which results in or is likely to result in a
      Material Adverse Effect.

            8.1.10 ERISA - MULTIEMPLOYER PLANS. If Borrower or any ERISA
      Affiliate as employers under one or more Multiemployer Plans makes a
      complete or partial withdrawal from such Multiemployer Plans and the plan
      sponsor of such Multiemployer Plans notifies such withdrawing employer
      that such employer has incurred a withdrawal liability requiring payments
      in an amount exceeding $100,000.

      8.2   ACCELERATION OF BORROWER'S OBLIGATIONS.   Upon the occurrence of:

            (a) any Event of Default described in clauses (ii), (iii), (iv) and
      (v) of subsection 8.1.5(a) or in 8.1.5(b), all of Borrower's Obligations
      at that time outstanding automatically shall mature and become due, and

            (b) any other Event of Default, the Requisite Lenders, at any time
      (unless such Event of Default shall have been waived in writing or
      remedied), at their option, without further notice or demand, may declare
      all of Borrower's Obligations due and payable, whereupon Borrower's
      Obligations immediately shall mature and become due and payable, all
      without presentment, demand, protest or notice (other than the declaration
      referred to in this clause (b)), notice of intent to accelerate and notice
      of acceleration, all of which hereby are waived.

      8.3 REMEDIES ON DEFAULT. If Borrower's Obligations have been accelerated
pursuant to Section 8.2, Agent and/or Lenders, at their option, may:

            8.3.1 ENFORCEMENT OF SECURITY INTEREST.   Enforce   their   rights
      and  remedies  under  the Loan  Instruments  in  accordance  with  their
      respective terms.

            8.3.2 OTHER REMEDIES.   Enforce  any of  the  rights  or  remedies
      accorded to Lenders  and/or Agent at equity or law, by virtue of statute
      or otherwise.

      8.4 APPLICATION OF FUNDS. Any funds received by Lenders and/or Agent
pursuant to the exercise of any rights accorded to Agent and/or Lenders pursuant
to, or by the operation of any of the terms of, any of the Loan Instruments,
including, without limitation, insurance proceeds, condemnation proceeds or
proceeds from the sale of Collateral, shall be applied to Borrower's Obligations
in the following order of priority:

            8.4.1 EXPENSES. First, to the payment of (i) all reasonable fees and
      expenses, including, without limitation, court costs, fees of appraisers,
      title charges, costs of maintaining and preserving the Collateral, costs
      of sale, and all other costs incurred by Agent and/or Lenders in
      exercising any rights accorded to such Persons pursuant to the Loan
      Instruments or by applicable law, including, without limitation,
      attorneys' fees, and (ii) all Liens superior to the Liens of Agent and/or
      Lenders except such superior Liens subject to which any sale of the
      Collateral may have been made.

            8.4.2 BORROWER'S OBLIGATIONS. Next,   to   the   payment   of  the
      remaining  portion of  Borrower's  Obligations  in such order as Lenders
      may determine.

            8.4.3 SURPLUS.    Any surplus,  to the Person or Persons  entitled
      thereto.

      8.5 PERFORMANCE OF BORROWER'S OBLIGATION. If Borrower fails to (i)
maintain in force and pay for any insurance policy or bond which Borrower is
required to provide pursuant to any of the Loan Instruments, (ii) keep the
Collateral free from all Liens except for Permitted Liens, (iii) pay when due
all taxes, levies and assessments on or in respect of the Collateral, except as
otherwise permitted pursuant to the terms hereof, (iv) perform any other of the
obligations of Borrower hereunder or under any of the other Loan Instruments,
and (v) perform the obligations of Borrower with respect to any issue of
Indebtedness for Borrowed Money secured by a Permitted Lien, then after notice
to Borrower, Agent may (but shall, not be required to) procure and pay for such
insurance policy or bond, pay, contest or settle such Liens or taxes or any
judgments based thereon or otherwise make good any other aforesaid failure of
Borrower. Borrower shall reimburse Lenders immediately upon demand for all
reasonable sums paid or advanced on behalf of Borrower for any such purpose,
together with reasonable and/or necessary costs and expenses (including
reasonable attorneys' fees) paid or incurred by Lenders in connection therewith
and interest on all sums advanced from the date of advancement until repaid to
Lenders at the Prime Rate, and after demand therefor, at the applicable Default
Rate. All such sums advanced by Lenders, with interest thereon, immediately upon
advancement thereof, shall be deemed to be part of Borrower's Obligations.

                                     ARTICLE IX

                       ADDITIONAL LENDERS AND PARTICIPANTS

      9.1   ASSIGNMENT TO OTHER LENDERS.

            9.1.1 ASSIGNMENT. Upon prior written notice to Agent, subject to
      Borrower's consent, which shall not be unreasonably withheld (but no such
      consent shall be required if an Event of Default is continuing), LaSalle
      may make one or more Loan Assignments, and each Assignee, with the prior
      written consent of the Requisite Lenders (which may be given or denied in
      the sole discretion of the Requisite Lenders) the consent of Borrower (as
      described and limited above) and upon prior written notice to Agent, may
      make a Loan Assignment of the rights and obligations which were assigned
      to such Assignee. Each Person making a Loan Assignment shall give prompt
      written notice thereof to Borrower.

            9.1.2 Assignment. Each Assignee to which LaSalle makes a Loan
      Assignment, and each subsequent Assignee, to the extent of such Loan
      Assignment, shall have the same rights, benefits and obligations under the
      Loan Instruments as such Assignee would have had if such Assignee were an
      original party to the Loan Instruments. No Loan Assignment shall impose
      additional obligations upon Borrower or any Subsidiary.

            9.1.3 SUBSTITUTION OF NOTES. Simultaneously with the delivery by any
      Lender to Borrower of any promissory note which is the subject of a Loan
      Assignment and which is marked "canceled," Borrower shall execute and
      deliver to such Lender for delivery to (i) the Assignee to which such Loan
      Assignment is made, a promissory note payable to the order of such
      Assignee in an amount equal to the amount assigned to such Assignee, and
      (ii) such Lender making such Loan Assignment, a promissory note payable to
      the order of such assigning Lender in an amount equal to the amount
      retained by such Lender, each such promissory note to be substantially in
      the form of the canceled promissory note.

            9.1.4 INSPECTIONS. Any action which any Assignee shall desire to
      undertake pursuant to Section 6.2 of the Loan Agreement shall be
      coordinated by such Assignee through Agent, and Agent shall accompany each
      such Assignee which desires to undertake any such action pursuant to such
      Section 6.2.

      9.2 PARTICIPATIONS. Each Lender shall have the right to sell
Participations. In the event of the sale of a Participation, the obligations of
the Lender selling such a Participation shall remain unchanged, such Lender
shall remain solely responsible for the performance thereof, such Lender shall
remain the holder of any promissory note which previously has been delivered to
such Lender pursuant to the terms of this Loan Agreement, such Lender shall
notify Borrower of the sale of such Participation, and Borrower shall continue
to deal solely and directly with such Lender in connection with such Lender's
rights and obligations under this Loan Agreement. Notwithstanding the sale of
any Participation, all amounts payable by Borrower pursuant to the terms of the
Loan Instruments shall be determined as if no such Participation had been sold.
No Participant shall be entitled to require a Lender to take or omit to take any
action pursuant to the Loan Instruments except as provided in the Participation
Agreement executed by and between the Participant and such Lender.

      9.3 ASSIGNMENT AND FUNCTION OF AGENT. LaSalle is hereby appointed as Agent
hereunder to act in such capacity on behalf of all Lenders under this Loan
Agreement and the other Loan Instruments. LaSalle agrees that it shall continue
to act as Agent throughout the term of the Loan. In performing its functions and
duties under this Agreement, Agent shall act solely as an agent of Lenders and
does not assume and shall not be deemed to have assumed any obligation towards
or relationship of agency or trust with or for any other Person. Notwithstanding
the appointment of LaSalle as Agent hereunder, LaSalle shall have the same
rights hereunder as any other Lender, and may exercise such rights as though
LaSalle had not been appointed as Agent hereunder.

      9.4 SETTLEMENT PROCEDURES. Agent shall advise each Lender by telephone or
telecopy on each Business Day (the "Settlement Date") of the amount of such
Lender's (i) Pro Rata Share of all Loans made by Agent, for the benefit of
Lenders, since the preceding Business Day; (ii) Pro Rata Share of any payments
of principal with respect to the Loan since the preceding Business Day; and
(iii) Pro Rata Share of the amount of any payments of interest, fees and other
amounts with respect to the Loan since the preceding Business Day. On the next
Business Day following each Settlement Date, the party from whom payment is due
shall make the amount due available to the other, in same day funds, by wire
transfer to the other's account, not later than 11:00 a.m. (Chicago, Illinois
time). If such payment is not in fact made by the party from whom payment is
due, the other party shall be entitled to recover such corresponding amount on
demand (which demand shall be promptly made), together with interest thereon at
the Federal Funds Rate (as determined by Agent), for each day from the
Settlement Date on which such amount was due until such amount is paid. Whenever
Agent is asked to make an advance with respect to the Loan, not less than one
Business Day prior to the proposed Funding Date Agent may elect to advise each
Lender by telephone or telecopy of the requested Funding Date, the amount of
such advance and the amount of such Lender's Pro Rata Share thereof. In such
case, each Lender shall pay to Agent the amount of such Lender's Pro Rata Share
of such advance prior to 11:00 a.m. (Chicago, Illinois time) on the proposed
Funding Date.

      9.5 SET OFF AND SHARING OF PAYMENTS. Upon the occurrence of any Event of
Default and the acceleration of Borrower's Obligations, each Lender is
authorized by Borrower, at any time or from time to time thereafter, without
notice to Borrower or to any other Person, to set off and to appropriate and
apply any and all balances held by such Lender for the account of Borrower, and
any other Property at any time held or owing by such Lender to or for the credit
or for the account of Borrower, against and on account of any of Borrower's
Obligations which are not paid when due. Borrower agrees that (i) each Lender
may exercise its right to set off with respect to amounts in excess of such
Lender's share of Borrower's Obligations and may sell Participations in such
excess to other Lenders and (ii) any Lender so purchasing a Participation in the
Loans made or other of Borrower's Obligations held by other Lenders may exercise
all rights of set-off, bankers' lien, counterclaim or similar rights with
respect to such Participation as fully as if such Lender were a direct holder of
the Loans and other of Borrower's Obligations in the amount of such
Participation.

      9.6 LENDER'S DECISIONS. All Lender's Decisions shall be made by the
Requisite Lenders, except that notices under subsection 8.1.2(b) and waivers of
any Event of Default arising thereunder shall be given and made only by LaSalle
in its sole discretion.

      9.7 CONFIDENTIALITY. Each Lender agrees to exercise its best efforts to
keep any non-public information delivered or made available to such Lender
pursuant to the Loan Instruments confidential from any Person other than Persons
employed or retained by such Lender who are or are expected to become engaged in
evaluating, approving, structuring or administering the Loan; provided that
nothing herein shall prevent any Lender from disclosing such information to any
Assignee or, after notice to Borrower, as required or requested by any
Governmental Body or to the extent required by legal process or as required in
connection with the exercise of any remedy under the Loan Instruments.

                                    ARTICLE X

                                     CLOSING

      The Closing Date shall be such date as the parties shall determine, and
the Closing shall take place on the date agreed upon, provided all conditions
for the Closing as set forth in this Loan Agreement have been satisfied or
otherwise waived. The Closing shall take place at the office of Akin, Gump,
Strauss, Hauer & Feld, L.L.P., 1700 Pacific Avenue, Suite 4100, Dallas, Texas
75201, or such other place as the parties hereto shall agree. Unless the Closing
occurs on or before September 26, 1999, this Loan Agreement shall terminate and
be of no further force or effect and, except for any obligation of Borrower to
Lenders pursuant to Article XI, none of the parties hereto shall have any
further obligation to any other party.

                                     ARTICLE XI

                               EXPENSES AND INDEMNITY

      11.1 ATTORNEYS' FEES AND OTHER FEES AND EXPENSES. Whether or not any of
the transactions contemplated by this Loan Agreement shall be consummated,
Borrower agrees to pay to Lenders on demand all reasonable expenses incurred by
Agent and/or Lenders in connection with the transactions contemplated hereby
(including, without limitation, any appraisal fees, environmental audit fees and
title and recording charges) and in connection with any amendments,
modifications or waivers (whether or not the same become effective) under or in
respect of any of the Loan Instruments, including, without limitation:

            11.1.1 FEES AND EXPENSES FOR PREPARATION OF LOAN Instruments. All
      reasonable expenses, disbursements and attorneys' fees (including, without
      limitation, charges for required mortgagee's title insurance, lien
      searches, reproduction of documents, long distance telephone calls and
      overnight express carriers) of special counsel and other counsel retained
      by Agent and/or Lenders in connection with the preparation and negotiation
      of the Loan Instruments or any amendments, modifications or waivers hereto
      or thereto, but excluding any Loan Assignments or Participations or other
      documents to which Borrower is not a party.

            11.1.2 FEES AND EXPENSES IN ENFORCEMENT OF RIGHTS OR DEFENSE OF LOAN
      INSTRUMENTS. Any reasonable expenses or other costs, including attorneys'
      fees and expert witness fees, incurred by Agent and/or Lenders in
      connection with the enforcement or collection against any Borrower of any
      provision of any of the Loan Instruments, and in connection with or
      arising out of any litigation, investigation or proceeding instituted by
      any Governmental Body or any other Person with respect to any of the Loan
      Instruments, whether or not suit is instituted, including, but not limited
      to, such costs or expenses arising from the enforcement or collection
      against any Borrower of any provision of any of the Loan Instruments in
      any state or federal bankruptcy or reorganization proceeding.

      11.2  INDEMNITY.  Borrower  agrees  to  indemnify  and  save  Agent  and
Lenders harmless of and from the following:

            11.2.1      BROKERAGE FEES.   The fees,  if any,  of  brokers  and
      finders engaged by Borrower.

            11.2.2 GENERAL. Any loss, liability, damage or reasonable cost or
      expense (including reasonable attorneys' fees and expenses) incurred by
      Agent and/or Lenders in investigating, preparing for, defending against,
      providing evidence, producing documents or taking other action in respect
      of any commenced or threatened litigation, administrative proceeding, suit
      instituted by any Person or investigation under any law, including any
      federal securities law, the Bankruptcy Code, any relevant state corporate
      statute or any other securities law, bankruptcy law or law affecting
      creditors generally of any jurisdiction, or any regulation pertaining to
      any of the foregoing, or at common law or otherwise, relating, directly or
      indirectly, to the transactions contemplated by or referred to in, or any
      other matter related to, the Loan Instruments, whether or not Agent and/or
      Lenders are parties to such litigation, proceeding or suit, or is subject
      to such investigation; provided, however, Borrower shall not be liable for
      any such loss, cost, liability, damage or expense that is the proximate
      result of Agent's or any Lender's negligence or willful misconduct.

            11.2.3 OPERATION OF COLLATERAL; JOINT VENTURERS. Any loss, cost,
      liability, damage or expense (including reasonable attorneys' fees and
      expenses) incurred in connection with the ownership, operation or
      maintenance of the Collateral, the construction of Agent and/or Lenders
      and Borrower as having the relationship of joint venturers or partners or
      the determination that Agent or any Lender has acted as agent for
      Borrower; provided, however, Borrower shall not be liable for any such
      loss, cost, liability, damage or expense that is the proximate result of
      Agent's or any Lender's negligence or willful misconduct.

            11.2.4 ENVIRONMENTAL INDEMNITY. Any and all claims, losses, damages,
      response costs, clean-up costs and expenses suffered and/or incurred at
      any time by Agent or any Lender arising out of or in any way relating to
      the existence at any time of any Hazardous Materials in, on, under, at,
      transported to or from, or used in the construction and/or renovation of,
      any of the Leasehold Property, or otherwise with respect to any
      Environmental Law, and/or the failure of Borrower to perform its
      obligations and covenants hereunder with respect to environmental matters,
      including, but not limited to: (i) claims of any Persons for damages,
      penalties, response costs, clean-up costs, injunctive or other relief,
      (ii) costs of removal and restoration, including fees of attorneys and
      experts, and costs of reporting the existence of Hazardous Materials to
      any Governmental Body, and (iii) any expenses or obligations, including
      attorneys' fees and expert witness fees, incurred at, before and after any
      trial or other proceeding before any Governmental Body or appeal therefrom
      whether or not taxable as costs, including, without limitation, witness
      fees, deposition costs, copying and telephone charges and other expenses,
      all of which shall be paid by Borrower to Lenders when incurred by Agent
      and/or Lenders.

                                   ARTICLE XII

                                  MISCELLANEOUS

      12.1 NOTICES. All notices and communications under this Loan Agreement
shall be in writing and shall be (i) delivered in person, or (ii) mailed,
postage prepaid, either by registered or certified mail, return receipt
requested, or by overnight express carrier, addressed in each case as follows:

      To Borrower:            Millers American Group, Inc.
                              300 Burnett Street
                              Fort Worth, Texas 76102
                              Attention: Joy J. Keller

      Copy to:                Akin, Gump, Strauss, Hauer & Feld, L.L.P.
                              1700 Pacific Avenue, Suite 4100
                              Dallas, Texas 75201
                              Attention: Terry M. Schpok, P.C.

      To Agent or LaSalle:    LaSalle Bank National Association
                              135 South LaSalle Street
                              Chicago, Illinois 60603
                              Attention: George L. Kumis

      Copy to:                Katten Muchin & Zavis
                              525 West Monroe Street, Suite 1600
                              Chicago, Illinois 60661
                              Attention: Arthur B. Muir, Esq.

or to any other address, as to any of the parties hereto, as such party shall
designate in a written notice to the other parties hereto. All notices sent
pursuant to the terms of this Section 12.1 shall be deemed received (i) if
personally delivered, then on the Business Day of delivery, (ii) if sent by
overnight, express carrier, on the next Business Day immediately following the
day sent, or (iii) if sent by registered or certified mail, on the earlier of
the fifth Business Day following the day sent or when actually received.

      12.2 SURVIVAL OF LOAN AGREEMENT; INDEMNITIES. All covenants, agreements,
representations and warranties made in this Loan Agreement and in the
certificates delivered pursuant hereto shall survive the making by Lenders of
the Loans and the execution and delivery to Lenders of the Note and of all other
Loan Instruments, and shall continue in full force and effect so long as any of
Borrower's Obligations remain outstanding, unperformed or unpaid.
Notwithstanding the repayment of all amounts due under the Loan Instruments, the
cancellation of the Note and the release and/or cancellation of any and all of
the Loan Instruments or the foreclosure of any Liens on the Collateral, the
obligations of Borrower to indemnify Agent or Lenders with respect to the
expenses, damages, losses, costs and liabilities described in Section 11.2 shall
survive until all applicable statute of limitations periods with respect to
actions which may be brought against Agent or any Lender have run.

      12.3 FURTHER ASSURANCE. From time to time, Borrower shall execute and
deliver to Lenders such additional documents as Lenders may reasonably require
to carry out the purposes of the Loan Instruments and to protect Lenders' rights
thereunder, including, without limitation, using commercially reasonable efforts
in the event any Collateral is to be sold to secure the approval by any
Governmental Body of any application required by such Governmental Body in
connection with such sale, and not take any action inconsistent with such sale
or the purposes of the Loan Instruments (it being understood, that the
provisions of this Section 12.3 shall not be construed to permit any sale of
Collateral not previously approved by Lenders or otherwise permitted by the Loan
Instruments).

      12.4 TAXES AND FEES. Should any recording or filing fees become payable in
respect of any of the Loan Instruments, or any amendment, modification or
supplement thereof, Borrower agrees to pay the same on demand, together with any
interest or penalties thereon attributable to any delay by Borrower in meeting
Lenders' demand, and agrees to hold Lenders harmless with respect thereto.

      12.5 SEVERABILITY. In the event that any provision of this Loan Agreement
is deemed to be invalid by reason of the operation of any law or by reason of
the interpretation placed thereon by any court or any other Governmental Body,
as applicable, this Loan Agreement shall be construed as not containing such
provision and the invalidity of such provision shall not affect the validity of
any other provisions hereof, and any and all other provisions hereof which
otherwise are lawful and valid shall remain in full force and effect.

      12.6 WAIVER. No delay on the part of Agent and/or Lenders in exercising
any right, power or privilege hereunder shall operate as a waiver thereof, and
no single or partial exercise of any right, power or privilege hereunder shall
preclude other or further exercise thereof, or be deemed to establish a custom
or course of dealing or performance between the parties hereto, or preclude the
exercise of any other right, power or privilege.

      12.7 MODIFICATION OF LOAN INSTRUMENTS. No modification or waiver of any
provision of any of the Loan Instruments shall be effective unless the same
shall be in writing, and then such waiver or consent shall be effective only in
the specific instance and for the purpose for which given. No notice to or
demand on Borrower in any case shall entitle Borrower to any other or further
notice or demand in the same, similar or other circumstances.

      12.8 CAPTIONS. The headings in this Loan Agreement are for purposes of
reference only and shall not limit or otherwise affect the meaning hereof.

      12.9 SUCCESSORS AND ASSIGNS. This Loan Agreement shall be binding upon and
inure to the benefit of and be enforceable by the respective permitted
successors and assigns of the parties hereto. Borrower may not assign its rights
or obligations hereunder without the prior written consent of Lenders.

      12.10 REMEDIES CUMULATIVE. All rights and remedies of Agent and Leaders
pursuant to this Loan Agreement, any other Loan Instruments or otherwise, shall
be cumulative and non-exclusive, and may be exercised singularly or
concurrently. Neither Agent nor any Lender shall be required to prosecute
collection, enforcement or other remedies against Borrower before proceeding
against any other Person or to enforce or resort to any security, lien
collateral or other rights of Agent or Lenders. One or more successive actions
may be brought against Borrower, either in the same action or in separate
actions, as often as Lenders deem advisable, until all of Borrower's Obligations
are paid and performed in full.

      12.11 ENTIRE AGREEMENT; CONFLICT. This Loan Agreement and the other Loan
Instruments executed prior or pursuant hereto constitute the entire agreement
among the parties hereto with respect to the transactions contemplated hereby or
thereby and supersede any prior agreements, whether written or oral, relating to
the subject matter hereof. In the event of a conflict between the terms and
conditions set forth herein and the terms and conditions set forth in any other
Loan Instrument, the terms and conditions set forth herein shall govern.

      12.12 APPLICABLE LAW. THE LOAN INSTRUMENTS SHALL BE CONSTRUED IN
ACCORDANCE WITH AND GOVERNED BY THE LAWS AND DECISIONS OF THE STATE OF ILLINOIS
WITHOUT REGARD TO PRINCIPLES, OF CONFLICTS OF LAW. FOR PURPOSES OF THIS SECTION
12.12 THE LOAN INSTRUMENTS SHALL BE DEEMED TO BE PERFORMED AND MADE IN THE STATE
OF ILLINOIS.

      12.13 JURISDICTION AND VENUE. BORROWER HEREBY AGREES THAT ALL ACTIONS OR
PROCEEDINGS INITIATED BY BORROWER AND ARISING DIRECTLY OR INDIRECTLY OUT OF THE
LOAN INSTRUMENTS SHALL BE LITIGATED IN THE COURTS HAVING A SITUS WITHIN THE
COUNTY OF COOK, STATE OF ILLINOIS, OR THE UNITED STATES DISTRICT COURT FOR THE
NORTHERN DISTRICT OF ILLINOIS OR, IF AGENT OR LENDERS INITIATE OR REMOVE SUCH
ACTION, IN ADDITION TO THE FOREGOING COURTS, ANY COURT IN WHICH AGENT OR LENDERS
SHALL INITIATE OR TO WHICH AGENT OR LENDERS SHALL REMOVE SUCH ACTIONS TO THE
EXTENT SUCH COURT HAS JURISDICTION. BORROWER HEREBY EXPRESSLY SUBMITS AND
CONSENTS IN ADVANCE TO SUCH JURISDICTION IN ANY ACTION OR PROCEEDING COMMENCED
BY AGENT OR LENDERS IN, OR REMOVED BY AGENT OR LENDERS TO, ANY OF SUCH COURTS,
AND HEREBY AGREES THAT PERSONAL SERVICE OF THE SUMMONS AND COMPLAINT, OR OTHER
PROCESS OR PAPERS ISSUED THEREIN MAY BE SERVED IN THE MANNER PROVIDED FOR
NOTICES HEREIN, AND AGREES THAT SERVICE OF SUCH SUMMONS AND COMPLAINT OR OTHER
PROCESS OR PAPERS MAY BE MADE BY REGISTERED OR CERTIFIED MAIL ADDRESSED TO
BORROWER AT THE ADDRESS TO WHICH NOTICES ARE TO BE SENT PURSUANT TO SECTION
12.1. BORROWER WAIVES ANY CLAIM THAT COOK COUNTY, ILLINOIS IS AN INCONVENIENT
FORUM OR AN IMPROPER FORUM BASED ON LACK OF VENUE. TO THE EXTENT PROVIDED BY
LAW, SHOULD BORROWER, AFTER BEING SO SERVED, FAIL TO APPEAR OR ANSWER TO ANY
SUMMONS, COMPLAINT, PROCESS OR PAPERS SO SERVED WITHIN THE NUMBER OF DAYS
PRESCRIBED BY LAW AFTER THE MAILING THEREOF, BORROWER SHALL BE DEEMED IN DEFAULT
AND AN ORDER AND/OR JUDGMENT MAY BE ENTERED BY THE COURT AGAINST BORROWER AS
DEMANDED OR PRAYED FOR IN SUCH SUMMONS, COMPLAINT, PROCESS OR PAPERS. THE
EXCLUSIVE CHOICE OF FORUM FOR BORROWER SET FORTH IN THIS SECTION 12.13 SHALL NOT
BE DEEMED TO PRECLUDE THE ENFORCEMENT, BY AGENT AND/OR LENDERS, OF ANY JUDGMENT
OBTAINED IN ANY OTHER FORUM OR THE TAKING, BY AGENT AND/OR LENDERS, OF ANY
ACTION TO ENFORCE THE SAME IN ANY OTHER APPROPRIATE JURISDICTION, AND BORROWER
HEREBY WAIVES THE RIGHT TO COLLATERALLY ATTACK ANY SUCH JUDGMENT OR ACTION.

      12.14 WAIVER OF RIGHT TO JURY TRIAL. LENDERS AND BORROWER ACKNOWLEDGE AND
AGREE THAT ANY CONTROVERSY WHICH MAY ARISE UNDER ANY OF THE LOAN INSTRUMENTS OR
WITH RESPECT TO THE TRANSACTIONS CONTEMPLATED THEREBY WOULD BE BASED UPON
DIFFICULT AND COMPLEX ISSUES AND THEREFORE THE PARTIES AGREE THAT ANY LAWSUIT
ARISING OUT OF ANY SUCH CONTROVERSY WILL BE TRIED IN A COURT OF COMPETENT
JURISDICTION BY A JUDGE SITTING WITHOUT A JURY.

      12.15 TIME OF ESSENCE.  TIME IS OF THE  ESSENCE FOR THE  PERFORMANCE  BY
BORROWER OF THE  OBLIGATIONS  SET FORTH IN THIS LOAN  AGREEMENT  AND THE OTHER
LOAN INSTRUMENTS.

      12.16 ESTOPPEL CERTIFICATE. Within 15 days after Agent requests Borrower
to do so, Borrower will execute and deliver to Lenders a statement certifying
(i) that this Loan Agreement is in full force and effect and has not been
modified except as described in such statement, (ii) the date to which interest
on the Note has been paid, (iii) the Principal Balance, (iv) whether or not to
its knowledge an Incipient Default or Event of Default has occurred and is
continuing, and, if so, specifying in reasonable detail each such Incipient
Default or Event of Default of which it has knowledge, (v) whether to its
knowledge it has any defense, setoff or counterclaim to the payment of the Note
in accordance with its terms, and, if so, specifying each defense, setoff or
counterclaim of which it has knowledge in reasonable detail (including where
applicable the amount thereof), and (vi) as to any other matter reasonably
requested by the Lenders.

      12.17 COUNTERPARTS. This Loan Agreement and the other Loan Instruments may
be executed by the parties hereto in several counterparts and each such
counterpart shall be deemed to be an original, but all such counterparts shall
together constitute one and the same agreement.

      12.18 NO FIDUCIARY RELATIONSHIP. No provision in this Loan Agreement or in
any other Loan Instrument, and no course of dealing among the parties hereto,
shall be deemed to create any fiduciary duty by any Lender to Borrower.

                 [remainder of this page intentionally left blank]

<PAGE>

      IN WITNESS WIIEREOF, this Loan Agreement has been executed and delivered
by each of the parties hereto on the date first set forth above.

                              MILLERS AMERICAN GROUP, INC.,
                               a Texas corporation

                              By:   /s/ DAVID N. THOMPSON
                                    ----------------------------------------
                              Name: David N. Thompson
                              Title: Chief Executive Officer

Commitment: $20,000,000       LASALLE BANK NATIONAL ASSOCIATION,
                              a national banking association, in its
                              individual capacity as a Lender and as Agent
                              for all Lenders

                              By:   /s/ GEORGE L. KUMIS
                                    ----------------------------------------
                              Name: George L. Kumis
                              Title: Senior Vice President

<PAGE>

                                    EXHIBITS

            NUMBER                        TITLE
            ------                        -----

            1.1A                          Form of Compliance Certificate

            1.1B                          Investment   Policy   Statement  and
                                          Investment Portfolio Guidelines

            1.1C                          Notice of Borrowing

            5.3.2                         Restrictions on Capital Stock

            5.5.2                         Certificates of Authority

            5.5.3                         Operating Agreements

            5.5.4                         Business Locations

            5.5.5                         Leases of Real Property

            5.7.1                         Financial Statements

            5.7.2                         Projections

            5.8                           Litigation

            5.13                          IRIS Ratios

            5.16                          Existing Indebtedness

            5.18.1                        Employee Benefit Plans

            5.21                          Insurance

            7.23                          Order of Pooling

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