Document:

Prepared by MerrillDirect

	Exhibit 10.1(e)

LONE
STAR TECHNOLOGIES, INC.

Amendments
to the 1985 Long-Term Incentive Plan

Approved by the Board of Directors on March 20, 2001 and Shareholders on May 8,
2001

             Section
3 of the Plan is amended by amending the first sentence of said Section to read
as follows (the new language is in bold type): 
“The aggregate number of shares of stock which may be issued under the
Plan shall not exceed four million seven
hundred thousand (4,700,000) shares of Common Stock.”

             Section
8 of the Plan is amended by amending the first three sentences of said Section
to read as follows (the new language is in bold type):

             “Non-executive
directors shall not be eligible to participate in the Plan beyond the granting
of Options; further, not more than 1,250,000
shares of Common Stock may be issued under Options awarded to non-executive
directors.  Only shares of Common Stock
issued upon exercise of Options which, when granted, were granted to
individuals who were at the time non-executive directors shall be deemed ‘issued
under Options awarded to non-executive directors.’  Shares issued to non-executive directors under Options granted
when they were participants shall not count towards the 1,250,000 share limitation provided in this
Section.”

             Section
10 of the Plan is amended by adding at the end of subsection (c) of Section 10
the following language:

“Notwithstanding anything in this Section
10 to the contrary, if the employment of the Chief Executive Officer of the
Company (the ”CEO”) is terminated by the Company without Cause or is terminated
by the CEO with Good Reason (such capitalized terms are defined in an
employment agreement between the Company and the CEO in effect at that time or,
in the absence of such an agreement, are defined in Section 15 hereof) one-half
of all unvested Options held by the CEO shall become fully exercisable upon the
date of such termination for up to 100% of the unexercised shares under those
Options, the other half of the unvested Options held by the CEO shall become
fully exercisable upon the second anniversary of the date of such termination,
or such earlier date that the Board of Directors or Committee may, in its
discretion, determine, for up to 100% of the unexercised shares under those
Options, and each Option held by the CEO may be exercised within 36 months
following the date of such termination (but not more than ten years from the
date such Option was granted) to the full extent such Option is
exercisable.  If the CEO dies during
that 36-month period without having fully exercised his Option, the Option may
be exercised within the 36 months following the CEO’s death (but not more than
ten years from the date such Option was granted) by the CEO’s estate or by a
person who acquired the right to exercise such Option by will or the law of
descent, to the full extent such Option is exercisable.”

             Section
15 of the Plan is amended by amending and restating subsection (a) of Section
15 to read in its entirety as follows (the new language in the amended and
restated subsection (a) is in bold type):

“Notwithstanding any other provision in
this Plan:

(a)(i) 
If a participant’s employment by the Company or a subsidiary is
involuntarily terminated without Cause or is voluntarily terminated with Good
Reason within two years after the occurrence of a Change in Control of the
Company, or (ii) if a participant’s employer ceases to be a subsidiary of the
Company and that participant does not immediately thereafter become an employee
of the Company or another subsidiary:

(A)     each Option (including any stock
appreciation rights) held by that participant shall become fully exercisable
for up to 100% of the unexercised shares under the Option and that participant
shall be entitled within 36 months (or any later period applicable under
paragraph (c) of Section 10) following the date of the termination of his
employment or the date on which his employer ceases to be a subsidiary (but not
more than ten years from the date the Option was granted) to exercise the
Option to the full extent the Option is exercisable;

(B)     the restrictions applicable to any
restricted stock awarded to that participant shall lapse and such restricted
stock shall become fully vested and transferable to the full extent of the
original grant; and

(C)    any performance units awarded to that
participant shall be considered to be earned and payable in full.

(iii)       In the event of the occurrence of a Change in Control
of the Company:

(A)   (1) one-half of all unvested Options (including any stock
appreciation rights) held by the CEO shall become fully exercisable upon such
occurrence for up to 100% of the unexercised shares under those Options and (2)
the other half of the unvested Options (including any stock appreciation
rights) held by the CEO shall become fully exercisable upon the second
anniversary of such occurrence, or such earlier date that the Board of
Directors or Committee may, in its discretion, determine, for up to 100% of the
unexercised shares under those Options;

(B)   (1)  the restrictions
applicable to one-half of all unvested restricted stock awarded to the CEO
shall lapse upon such occurrence and such restricted stock shall become fully
vested and transferable to the full extent of the original grant and (2) the
restrictions applicable to the other half of the unvested restricted stock
awarded to the CEO shall lapse upon the second anniversary of such occurrence,
or such earlier date that the Board of Directors or Committee may, in its
discretion, determine, and such restricted stock shall become fully vested and
transferable to the full extent of the original grant;

(C)     (1)  one-half of any performance units awarded to
the CEO shall be considered to be earned and payable in full upon such
occurrence and (2) the other half of the performance units awarded to the CEO
shall be considered to be earned and payable in full upon the second
anniversary of such occurrence, or such earlier date that the Board of
Directors or Committee may, in its discretion, determine; and

(D)        if the
CEO’s employment by the Company is involuntarily terminated without Cause or is
voluntarily terminated with Good Reason within two years after the occurrence
of a Change in Control of the Company, each Option held by the CEO shall become
fully exercisable for up to 100% of the unexercised shares under the Option and
the CEO shall be entitled within 36 months (or any later period applicable
under paragraph (c) of Section 10) following the date of the termination of his
employment (but not more than ten years from the date the Option was granted)
to exercise the Option to the full extent the Option is exercisable, the
restrictions applicable to restricted stock awarded to the CEO shall lapse and
such restricted stock shall become fully vested and transferable to the full
extent of the original grant, and performance units awarded to the CEO shall be
considered to be earned and payable in full.”Prepared by MerrillDirect

EXHIBIT
10.1

Agreement for the Acquisition of Assets and Liabilities

between

	1.	IPT
  — Institut für Präventivmedizin & Technologie GmbH, Stadthausbrucke 1 -
  3, 20355 Hamburg, represented by its managing director, Mr. Jorg Menten,
  registered in the Commercial Register of the Local Court of Hamburg under HRB
  72176

 

	 	- “Vendor" -

and

	2.	VBB
  Health ProCOMED GmbH, Stadthausbrucke 1 - 3, 20355 Hamburg, represented by
  Mr. Dietrich Nord, registered in the Commercial Register of the Local Court
  of Hamburg under HRB 76451)

 

	 	- “Purchaser” -

Recitals

	1.	The
  Vendor is a company with limited liability (Gesellschaft mit beschrankter
  Haftung) which is in the business of providing services to the healthcare
  industry which, also within the scope of pilot models of national health
  insurances, shall be scientifically supported and evaluated.
	 	 
	2.	The
  Purchaser is a company with limited liability (Gesellschaft mit beschrankter
  Haftung) which is in a similar business in Germany.
	 	 
	3.	Subject
  to the terms and conditions of this Agreement the Vendor intends to sell and
  transfer to the Purchaser, and the Purchaser intends to purchase and acquire
  from the Vendor, the Assets and Liabilities as described in Appendix A
  (Anlageverzeichnis) (however, excluding those which are crossed out).

Now, therefore, it is hereby agreed as
Follows:

1. 
Interpretation, Definitions

	1.1.	In
  this Agreement (including the Recitals and the Appendices hereto):
	 	 
	(a)	the
  headings are inserted for convenience purposes only and shall not affect the
  interpretation of this Agreement.
	 	 
	(b)	if
  a German term has been added after an English term, only the German term
  shall be decisive for the interpretation of the relevant English term.
	 	 
	1.2.	In
  this Agreement, unless the context otherwise requires, the following terms
  shall have the following meanings.
	 	 
	 	BGB
  means the German Civil Code (Burgerliches Gesetzbuch);
	 	 
	 	Costs
  means costs, expenses (including but not limited to legal expenses or
  expenses in relation to tax advice), losses, claims and/or damage, but does
  not include lost profit (entgangener Gewinn);
	 	 
	 	Effective
  Date means 24.00 hrs on June 30, 2000;
	 	 
	 	Fiscal
  Charges means fiscal charges (Abgaben), including taxes (Steuern), special
  levies (Sonderabgaben), public charges and fees (Beitrage und Gebuhren) of
  any kind (including social security contributions) and incidental tax
  payments (steuerliche Nebenleisungen) as well as interest relating thereto
  and all other comparable charges, taxes etc. in other jurisdictions;
	 	 
	 	HGB
  means the German Commercial Code (Handelsgesetzbuch);
	 	 
	 	Purchase
  Price means the purchase price to be paid by the Purchaser for the Assets and
  Liabilities as described in Appendix A (however, excluding those which are
  crossed out) pursuant to Clause 6.1.;
	 	 
	 	Signing
  Date means the date of signature of this Agreement;

2. 
Sale and Purchase of Assets and Liabilities

	2.1.	The
  Vendor hereby offers to sell the Assets and Liabilities as described in
  Appendix A, except those assets and liabilities as specifically identified on
  Appendix C, to the Purchaser subject to, and in accordance with, the
  provisions of this Agreement. The Purchaser hereby accepts such offer.
	 	 
	2.2.	The
  sale by the Vendor to the Purchaser pursuant to Clause 2.1 shall comprise all
  tangible and intangible assets and liabilities (materielle und immaterielle
  Vermogensgegenstance und Verbindlichkeiten) as described in Appendix A
  (however, excluding those which are crossed out) in each case if and to the
  extent owned (including expectancy rights (Anwartschaftsrechte)) by the
  Vendor on the Signing Date or the Effective Date (in this Agreement also
  referred to as the “Assets and Liabilities Sold”).
	 	 
	2.3.	Without
  limitation to the foregoing, The Assets and Liabilities Sold comprise the
  following:
	 	 
	2.3.1	All
  office equipment, furniture, files, cabinets, computer hardware (together
  with loaded non-custom software, in particular the database created by the
  Vendor for the performance of the healthcare operations) and related tangible
  property located at the Vendors premises Stresemannstr 29, 22769 Hamburg and
  at Stadhausbrucke 1-3, 20355 Hamburg (as indicated on Appendix A) to the
  extent such software is owned by Vendor;
	 	 
	2.3.2	All
  other equipment, vehicles and other fixed assets (Vermogensgegenstande des
  Anlagevermogens) within the meaning of Section 266 (2) A HGB expressed in the
  Vendors balance sheet as of June 30, 2000;
	 	 
	2.3.3	All
  patents, trademark rights, trade names, trade name rights, service marks,
  copyrights, registered designs, utility models and similar intellectual
  property rights, and all applications relating to the foregoing, all
  inventions, trade secrets and know-how, databases, product and marketing
  information, transferable rights to software, and all other intellectual
  property rights;
	 	 
	2.3.4	All
  customer and supplier lists; promotional and marketing literature; training,
  operations, equipment, other manuals, quotations, correspondence, purchase
  orders, contract documents, and other written, magnetic or other tangible
  media.
	 	 
	2.4	The
  Vendor shall assign those agreements with third parties relating to the
  Assets and Liabilities Sold to the Purchaser which are listed in Appendix A
  including, but not limited to, contracts with persons who might not be
  considered employees. The Purchaser hereby accepts such assignment. Should
  any third party not agree to such assignment, the Vendor shall put the
  Purchaser in a position as if such third party would have agreed.

3. 
Liabilities

The Purchaser shall assume all
liabilities (Verbindlichkeiten) of the Vendor including, but not limited to,
those liabilities which are listed in Appendix A under the heading
“Liabilities”. The Purchaser shall indemnify and hold the Vendor harmless in
respect of all liabilities — whether present or future, actual and contingent,
known or unknown — of the Vendor and of all Costs incurred or suffered by the
Purchaser in respect thereof except those assets and liabilities as
specifically identified on Appendix C.

4. 
Tax Indemnity

The Purchaser shall indemnify the Vendor
and hold the Vendor harmless in respect of all Costs resulting from Fiscal
Charges relating to the Business. Claims of the Vendor under this Clause 4
shall become time-barred (verjahren) one year after the assessment period
(Festsetzungsfrist) for the relevant tax claim for the comparable period under
the relevant applicable law) has expired.

5.  Transfer of Title to Assets

	5.1	Subject
  to the condition precedent (aufschiebende Bedingung) of payment of the
  Purchase Price, the Vendor hereby offers to transfer (ubereignen bzw.
  abtreten) to the Purchaser, with effect from the Effective Date all Assets
  and Liabilities Sold as set forth (excluding those which are crossed out) in
  Appendix A. The Purchaser hereby accepts such offer.
	 	 
	5.2	Delivery
  (Ubergabe) of the moveable (bewegliche) Assets Sold shall take place on or
  before the Effective Date at the Real Properties by way of physical delivery
  (korperliche Ubergabe) of such moveables. The delivery shall be conducted in
  such a way so as not to disrupt the ordinary course of business and not to
  interfere with the quality of the services performed by Vendor. Therefore,
  the parties shall agree prior to the delivery which steps will have to be
  taken in connection with its execution.
	 	 
	5.3	If
  and to the extent that:
	 	 
	 	(a)	any
  of the moveable (bewegliche) Assets Sold are in the possession of third
  parties on the Effective Date, the Vendor hereby offers to assign to the
  Purchaser with effect from the Effective Date - but subject to the condition
  precedent of payment of the Purchase Price - the right to demand delivery of
  such assets (Herausgabeanspruch);
	 	 	 
	 	(b)	the
  Purchaser, for any other reason, does first obtain possession of any of the
  moveable (bewegliche) Assets Sold on the Effective Date, the Vendor hereby
  offers to hold (verwahren) such assets for the Purchaser, in lieu of delivery
  (als Ubergabesurrogat), with effect from the Effective Date.
	 	 	 
	 	The
  Purchaser hereby accepts the offers contained in paragraphs (a) and (b).
	5.4	If
  and to the extent that any of the Assets Sold are subject to a reservation of
  title (Eigentunisvorbehalt) or transfer of title by way of security
  (Sicherungsubereignung/abtretung) on the Effective Date, the Vendor hereby
  transfers to the Purchaser with effect from the Effective Date — but subject
  to the condition precedent (aufschiebende Bedingung) of payment of the
  Purchase Price its expectancy rights (Anwartschattsrecht) in respect of such
  Assets Sold. The Purchaser hereby accepts such transfer.

6. 
Purchase Price

	6.1	The
  Purchase Price is allocated to the individual assets in accordance with the
  statement of value as set forth in Appendix B. The entire Purchase Price
  shall amount to DM 4.146.556.
	 	 
	6.2	In
  addition to the Purchase Price, the Purchaser shall pay to the Vendor any
  value-added tax payable, if any, against (Zug urn Zug gegen) the delivery of
  an invoice to be prepared by the Vendor specifying the amount of such VAT in
  a manner which is sufficient for Germany tax purposes. Value-added tax
  payable pursuant to this Clause 6.2 shall become due for payment by the
  Purchaser to the Vendor on the date on which the Purchase Price becomes due
  or, if this is later, the date on which the Vendor is legally obliged to pay
  over (abfuhren) the relevant amount to the German tax authorities.
	 	 
	6.3	The
  Purchase Price shall be due and payable on 16 august 2000 by bank transfer to
  a bank account to be nominated by the Vendor.

7. 
Employee Matters

As of the date of transfer of title to
the Assets and Liabilities Sold, all individuals who are employed by Vendor as
of such date will automatically transfer to the Purchaser in accordance with §
613a BGB. The Purchaser shall assume all rights, obligations and liabilities
under all employment agreements, collective bargaining agreements and other
employment relationships as of such date. The Purchaser shall reimburse the
Vendor for any and all Costs relating to the continuous employment and the
termination of employees objecting to the transfer to the Purchaser.

8.  Costs

Purchaser shall bear all Costs incurred
or to be incurred in connection with the preparation, negotiation and
implementation of this Agreement.

9. 
Announcements

No party shall without the prior written
consent of the other party disclose any of the content of this Agreement to
third parties or make any Information relating thereto available to third
parties. This shall not, however, apply to announcements and disclosures which
any party may be obliged to make under applicable laws or regulations or which
any party makes in the course of the ordinary and regular course of its
business. The right of the parties to disclose matter to employees or to
advisers who are bound by a professional duty of confidentiality shall remain
unaffected.

10. 
Notices

All Notices, communications and
declarations of will (Willenserklarungen) made under or in connection with this
Agreement shall be made in writing (telefax being sufficient) and sent to the
following addresses and marked for the attention of the following persons

	(a)	Vendor	IPT
  - Institut fur Praventivrnedizin & Technologie GmbH
	 	 	Stadthausbrucke
  1-3
	 	 	20355
  Hamburg
	 	 	Fax
  No.: +49-40-36988659
	 	 	with
  a copy to General Counsel
	 	 	12/13
  Exchange Place
	 	 	IFSC
	 	 	Dublin
  1 Ireland
	 	 	Fax
  Number: +353 1 675 0280
	 	 	 
	For
  the attention of:	Geschaftsfuhrung
	 	 
	(b)	Purchaser	VBB
  Hearth ProCOMED GmbH
	 	 	Stadthausbrucke
  1-3
	 	 	20355
  Hamburg
	 	 	Fax
  No.; +49-40-36988613
	 	 	 
	For
  the attention of:	Geschaftsfuhrung

Each party shall notify the other party
in writing and in good time (rechtzeitig) of any change of its address (or of
the person for whose attention notices are to be marked).

11.  Partial Invalidity, Entire
Agreement

	11.1	If
  one or more provisions of this Agreement should be or become wholly or
  partially invalid, void or impracticable, the validity of the other
  provisions of this Agreement shall not be affected thereby. The same shall
  apply if it should transpire that this Agreement contains an omission. In
  place of the invalid; void or impracticable provision the parties of this Agreement
  shall agree on an appropriate provision which comes as close as legally
  possible to what the parties were trying to achieve with the invalid, void or
  impracticable provision (or, as the case may be, the invalid, void or
  impracticable part thereof).  In the
  event that an omission needs to be rectified, a provision shall be agreed
  upon which, in view of the purpose and intent of this Agreement, comes as
  close as possible to what the parties would have agreed if they had been
  aware of the omission at the time that this Agreement was concluded.
	 	 
	11.2	This
  Agreement sets out the entire agreement between the parties relating to the
  subject matter hereof. Variations and additions to this Agreement shall be
  made in the form required by law and in any event in writing, the same shall
  apply to any waiver of the need to comply with the provisions of this Clause
  11.2. For the avoidance of doubt, this parties agree that the form of
  execution of this Agreement does not have to comply with the
  unity-of-document (Einheitlichkeit der Urkunde) requirements of §§128 and 127
  BGB.

12. 
Miscellaneous

	12.1	The
  Vendor shall take all steps and shall make all declarations which are useful
  or expedient in order to complete the acquisition of the assets and transfer
  of liabilities by the Purchaser (including, in particular, but without
  limitation, the acquisition by the Purchaser of ownership of the Assets and
  Liabilities Sold and the registration of the Purchaser as the proprietor of
  any Intellectual Property Rights forming part of the Assets Sold) and to
  enable the Purchaser to fully enjoy the rights acquired under this
  Agreement.  At the request of the
  Purchaser, the Vendor shall inform the Purchaser of all matter known to it
  concerning the Business and relating to the period before the Effective
  Dates.
	 	 
	12.2	Rights
  and claims under this Agreement may only be assigned with the prior written
  consent of all other parties to this Agreement except as otherwise provided
  for herein.

13. 
Governing Law

This Agreement shall be governed by the
substantative laws of the Federal Republic of Germany excluding the UN
Convention for the Sale of Goods and private international law provisions.

London, this 30 August 2000

/s/ J. Menten

IPT - Institut fur Praventivmedizin & Technolgie GmbH

/s/ D. Nord

VBB Health ProCOMED GmbH

[Exhibits Omitted]

THIS AGREEMENT is made on           2000.

BETWEEN:

(1)         ESG Re Limited, a company registered in
Bermuda no. 23746 whose registered office is Cedar House, 41 Cedar Avenue,
Hamilton, Bermuda (“ESG Re”);

(2)         HMI Partners L.L.C., a Delaware limited
liability company, c/o Head & Company L.L.C., 1330 Avenue of the Americas,
New York, NY 10019 (“HMI”);

(3)         Head Company Profit Sharing Plan, c/o
Head & Company L.L.C., 1330 Avenue of the Americas, New York, NY 10019
(“HPS”);

(4)         The persons whose names and addresses
are set out in Schedule 1 (the “Executives”);

(5)         VBB (Bermuda) Limited, a company
registered in Bermuda no. 27640 whose registered office is at Skandia
International House, 16 Church Street, Hamilton HM11, Bermuda (the “Company’).

WHEREAS:

(A)       The Company is a company limited by
shares incorporated in Bermuda on 21 January 2000.

(B)        The Company has at the date hereof an
authorised share capital of US$12,000 divided into Common Shares of US$1.00
each.

(C)        The parties have agreed to procure that
the business of the Company and its Subsidiaries conducted in accordance with
the provisions of this Agreement following the subscriptions referred to in
clause 2.

IT IS AGREED:

1. 
INTERPRETATION

1.1        In
this Agreement and its Recitals and Schedules:

“A
Shareholder” means the holder or holders of a majority in number of the A
Shares;

“A
Shares” means the “A” voting convertible redeemable preference shares of
US$0.01 each in the Company;

“B
Shareholder” means the holder or holders of a majority in number of the B
Shares;

“B
Shares” means the Bi Shares and the B2 Shares;

“B1
Shares” means the “B1” voting convertible redeemable preference shares of
US$0.01 each in the Company;

“B2
Shares” means the “B2" voting convertible non-redeemable preference shares
of US$0.01 each in the Company;

“Board”
means the board of directors of the Company for the time being or from time to
time;

“Business
Day” means a day (other than a Saturday or a Sunday) during which banks in New
York City are open for business;

“Bye-Laws”
means the Bye-Laws of the Company to be adopted on the date hereof and set out
in Schedule 4 as amended from time to time;

“C
Shareholder” means the holder or holders of a majority in number of the C
Shares;

“C
Shares” means the “C” voting convertible redeemable preference shares of
US$0.01 each in the Company;

“Companies
Act” means the Bermuda Companies Act 1981;

“Financial
Year” means the financial year of the Company adopted from time to time by the
Board;

“Group”
means the Company and its Subsidiaries from time to time;

“Group
Company” means, in relation to any company, any Holding Company of that company
and any Subsidiary of that company or of any of its Holding Companies;

“Holding
Company” has the meaning set out in section 87 of the Companies Act;

“Option Plan” means the document granting certain options to acquire shares in
the Company in the agreed terms;

“Ordinary
Shareholders” means the holder or holders of a majority in number of the
Ordinary Shares;

“Ordinary
Shares” means the ordinary shares of US$0.01 each in the Company;

“Shareholder”
means a holder of any share in the Company;

“Shares”
means all of the shares of the Company;

“Subsidiary”
has the meaning set out in section 87 of the Companies Act; and

“Supplemental
Agreement” means an agreement entered into pursuant to clause 4.2.

	1.2	Any
  reference in this Agreement to a document being “in the agreed terms” means
  that document in the terms agreed between the parties and for the purpose of
  identification signed by or on behalf of the parties or such other terms as
  may be agreed in writing between the parties in substitution therefor.
	 	 
	1
  .3	In
  this Agreement, references to any statutory provision shall include such
  provision as from time to time amended, whether before on or (in the case of
  re-enactment or consolidation only) after the date hereof, and shall be
  deemed to include provisions of earlier legislation (as from time to time
  amended) which have been re-enacted (with or without modification) or
  replaced (directly or indirectly) by such provision and shall further include
  all statutory instruments orders from time to time made pursuant thereto.

1.4        In
this Agreement and its Schedules:

(a)         the neuter gender shall include the
masculine and the feminine;

(b)        the singular number shall include the
plural and vice versa;

(c)         references to persons shall include
individuals, bodies corporate, unincorporated associations and partnerships;

(d)        the headings are inserted for
convenience only and shall not affect the construction this Agreement; and

(e)         references to recitals, clauses and
schedules and subdivisions thereof, unless a contrary intention appears, are to
the recitals and clauses of and schedules to this Agreement and subdivisions
thereof respectively.

	1.5	The
  Schedules form part of this Agreement and shall be construed and shall have
  the same full force and effect as if expressly set out in the body of this
  Agreement.
	 	 
	1.6	If
  any obligation in this Agreement is expressed to be an obligation of the
  Company or of any Subsidiary of the Company, it shall also be an obligation
  of the Shareholders to each other to procure that the Company or (as the case
  may be) the Subsidiary performs such obligation and an obligation of the
  Company to each of the Shareholders to procure that each of its Subsidiaries
  performs such obligation.

2. 
SUBSCRIPTION AND COMPLETION

	2.1	The
  persons referred to in sub-clauses 2.2(h)(i)(A) to (G) inclusive agree,
  severally and not jointly:

(a)         to subscribe for the shares set against
their respective names in those sub-clauses on and with effect from completion
of this Agreement; and

(b)        to pay to the Company the subscription
monies set against their respective names in sub-clauses 2.2(b) to (g)
inclusive as and when due.

	2.2	After
  execution of this Agreement:

(a)         ESG Re shall immediately procure the
passing at a Special General Meeting of the Company of the Special Resolution
for the purpose, inter alia, of increasing the share capital of the Company,
creating the new classes of Shares adopting the Bye-Laws and appointing two new
Directors, as set out in Schedule 2;

(b)        HMI shall, on or before 8 September
2000, pay to the Company by telegraphic transfer the amount of US$1,950,000 and
shall, on or before 29 September 2000, p to the Company by telegraphic transfer
a further amount of US$1,000,000;

(c)         HPS shall, on or before 8 September
2000, pay to the Company the amount of US$50,000;

(d)        Gerald Moeller shall, on or before 8
September 2000, pay to the Company the amount of US$4,000;

(e)         Jorg Menten shall, on or before 8
September 2000, pay to the Company the amount of US$2,000;

(f)         Dietrich Nord shall, on or
before 8 September 2000, pay to the Company the amount of US$2,000;

(g)        Roman Schenk shall, on or before 8
September 2000, pay to the Company the amount of US$2,000;

(h)        the Company shall immediately procure:

             (i)          the
holding of a Board meeting of the Company at which the Board shall resolve that
the following shares shall be allotted and issued to the following persons:

                           (A)       ESG Re: 8,000,000 A Shares;

                           (B)        HMI: 2,655,000 B1 Shares and 295,000 B2
Shares;

                           (C)        HPS: 
50,000 C Shares;

                           (D)        Gerald Moller:  400,000 Ordinary Shares;

                           (E)        Jorg Menten:  200,000 Ordinary Shares;

                           (F)        Dietrich Nord:  200,000 Ordinary Shares;

                           (G)        Roman Schenk:  200,000 Ordinary Shares.

             (ii)         that the register of members of the Company shall be amended
to reflect the allotments referred to in paragraph (I);

(i)          the Company shall immediately procure
the holding of a Board meeting of the Company at which:

	(i)	Mr.
  Moller will be appointed the Chairman of the Board;
	 	 
	(ii)	the
  Option Plan and all documents to be entered into by the Company pursuant to
  or in connection with this Agreement shall be approved and their due
  execution by the Company shall be authorised; and
	(iii)	the
  Option Plan shall be executed by the Company as a Deed.

3. 
[DELETED}

4. 
GENERAL PROVISIONS

	4.1	Except
  as may be determined by an ordinary resolution passed by the Shareholders of
  Company or by clause 5 or clause 6 and notwithstanding any provision of the
  Bye-Laws, none of the Shareholders shall assign, transfer, mortgage, charge,
  pledge or otherwise dispose of or encumber in any manner whatsoever and
  whether in whole or in part its legal beneficial interest in its shareholding
  in the Company or, save as may be permitted therein any right or obligation
  under this Agreement or the Bye-Laws or any other right or obligation as a
  member of the Company. Clauses 5 and 6 will apply to any transaction that may
  be permitted pursuant to this clause 4.1.
	 	 
	4.2	The
  parties to this Agreement shall procure that any transferee or allottee of
  shares in the Company shall, prior to any transfer or allotment to it taking
  effect, have entered into an agreement with the parties to this Agreement and
  the other holder or holders for the time being of all the shares in the
  Company substantially in the form set out in Schedule 3 and provided that
  such transfer or allotment is not otherwise prohibited by this Agreement,
  each party to this Agreement shall enter into such an agreement whenever
  requested to do so by any other party to this Agreement.
	 	 
	4.3	If
  there shall at any time be any discrepancy between the provisions of this
  Agreement on the one hand and the provisions of the Bye-Laws on the other,
  the provisions of this Agreement shall prevail and the Shareholders shall
  take such steps as may be necessary and permitted by Bermuda law to amend the
  Bye-Laws in order to give effect to the provisions of this Agreement.
	 	 
	4.4	If
  any Shareholder both ceases to hold shares and ceases to be the beneficial
  owner of shares in the Company, then it shall no longer be a party to this
  Agreement and this Agreement shall cease and determine with respect to it
  (except for clauses 12.3, 15 and 18 but such termination shall be without
  prejudice to any liability which it may have in respect of any prior breach
  or non-performance of this Agreement.

5. 
TAG ALONG RIGHTS

	5.1	If,
  at any time, any Shareholder proposes to sell or otherwise to transfer for
  value any Shares, such Shareholder may only sell such Shares subject to and
  in compliance with this clause 5 as well as clauses 4 and 6.
	 	 
	5.2	The
  Shareholder proposing to sell Shares (the “Tag Along Selling Shareholder”)
  shall notify the other Shareholders in writing of such intended sale at least
  10 days prior to the date thereof, which notice (in this clause the “Selling
  Shareholder’s Notice”) shall set forth all of the material terms of the
  intended sale, including but not limited to the name and address of the
  prospective transferee (the “Prospective Transferee”), all information
  reasonably available to the Selling Shareholder regarding the Prospective
  Transferee that the other Shareholders would reasonably need to make a
  decision under this clause 5, the purchase price and other terms and
  conditions of payment, the date on or about which such sale is to be made
  (the “Prospective Sale Date”) and the number of Shares to be purchased by the
  Prospective Transferee from the Selling Shareholder (the “Prospective Sale
  Shares”).
	 	 
	5.3	Within
  7 days of receipt of a Tag Along Selling Shareholder’s Notice, each other
  Shareholder may notify the Tag Along Selling Shareholder that such other
  Shareholder desires to sell shares to the Prospective Transferee on the same
  terms and conditions as set forth in the Tag Along Selling Shareholder’s
  Notice. Upon giving such notice to the Tag Along Selling Shareholder, such
  other Shareholder shall be entitled to sell to the Prospective Transferee on
  the same terms and conditions as set forth in the Selling Shareholder’s
  Notice, up to that number of his shares (the “Tag Along Shares”) equal to (i)
  the total number of Shares agreed to be purchased by the Prospective
  Transferee multiplied by (ii) a fraction of which the numerator shall be the
  number of Shares then owned by such other Shareholder and the denominator
  shall be the total number of Shares then owned by all Shareholders who desire
  to sell Shares to the Prospective Transferee pursuant to this clause 5. Such
  other Shareholder shall not be deemed to have entered into a legally binding
  agreement to sell any Tag Along Shares unless and until such other
  Shareholder shall have entered into a definitive share purchase agreement in
  respect of such Shares with the Prospective Transferee, on terms identical to
  those entered by the Tag Along Selling Shareholder. If such other Shareholder
  is not afforded the right to participate in the transaction contemplated by
  the Tag Along Selling Shareholder’s Notice in accordance with the terms and
  conditions hereof, the Tag Along Selling Shareholder may not consummate such
  transaction and the directors the Company may not register the transfer of
  shares by the Tag Along Selling Shareholder.

6. 
DRAG ALONG RIGHTS

	6.1	If
  a B Shareholder or a C Shareholder (the “Drag Along Selling Shareholder”)
  agrees to sell or otherwise to transfer for value a number of Shares
  representing 20% or more of the aggregate number of the Shares in issue in
  one or a series of related bona fide arm’s-length transactions with any
  person or persons who are not affiliated with (as such term is defined in
  Rule 405 under the US’s Securities Act 1933) such Shareholder (the “Prospect
  Transferee”) then, following compliance with clause 4, upon the demand of
  such Drag Along Selling Shareholder (which demand shall contain all of the
  information equivalent to that required to be set forth in a Selling
  Shareholder’s Notice under clause 5.2 and be given not less than 10 days
  prior to the proposed sale date) (the “Drag Along Sale Notice”), each of the
  other Shareholders (each a “Compulsory Vendor”) shall sell or transfer up to
  the number of its Shares (the “Drag Along Shares”) being that proportion of
  the Shares then held by it which is equal to the proportion which the number
  of Shares agreed to be sold to the Prospective Transferee(s) by the Drag
  Along Selling Shareholder bears to the number of Shares held by the Drag
  Along Selling Shareholder on the same terms and conditions as those on which
  the Drag Along Selling Shareholder has agreed to sell or transfer its Shares
	 	 
	6.2	If
  the Compulsory Vendor fails to transfer his Drag Along Shares pursuant to
  this clause 6 then the Chairman of the Company or failing him the Company
  Secretary will, pursuant to a power of attorney in the terms of Schedule 5
  (which terms are hereby agreed by each of parties who is or is to become a
  Shareholder), be the attorney for the Compulsory Vendor with full power to
  execute, complete and deliver, in the name of and on behalf of the Compulsory
  Vendor, a transfer of the Drag Along Shares to the Prospective Transferee(s)
  against the payment set out in the Drag Along Sale Notice. On payment to the
  Company of the consideration payable in respect of the transfer, the
  Prospective Transferee(s) will be deemed to have obtained a good discharge
  for such payment and on execution and delivery of the transfer(s) the Company
  shall enter the Prospective Transferee(s)’s in the Company's register of
  members as the holder of the Drag Along Shares and shall issue a share
  certificate in respect of such shares.
	 	 
	6.3	After
  the name of the Prospective Transferee(s) has been entered in the register of
  members in exercise of the above-mentioned powers the validity of the
  proceedings may not be questioned by any person, except in the case of any
  manifest error. The Company will be trustee for any moneys received as
  payment from the Prospective Transferee(s) and will promptly pay them to the
  Compulsory Vendor (subject to applying the same on his behalf in settling any
  fees or expense falling to be borne by the Compulsory Vendor) together with
  any balance share certificate to which it may be entitled.

7. 
FINANCING OF THE COMPANY

Subject
to any contrary agreement, and save as expressly provided by this Agreement, no
Shareholder shall be obliged to contribute to the capital of the Company,
whether by further subscription for shares or by loans or otherwise.

8. 
MANAGEMENT OF THE COMPANY

	8.1	Notwithstanding
  any provisions of the Bye-Laws, during the continuance of this Agreement the
  parties shall from time to time act so as to ensure that, save as otherwise
  provided in this Agreement or unless the Shareholders agree to the contrary
  in writing:

(a)         subject to any more specific provisions
of this Agreement, all matters relating to the operation of the Company shall
be decided by the Board and the Board shall at all times manage the Company so
as to procure so far as possible the achievement of the objectives of this
Agreement;

(b)        the directors shall be appointed by
ordinary resolution of the Shareholders and the number of directors shall be
four of whom three shall be designated by the B Shareholder and the C
Shareholder acting together and one shall be designated by the Ordinary
Shareholders;

(c)         the B Shareholder and the C Shareholder
shall be entitled by notice in writing to the Company executed by the B
Shareholder and the C Shareholder to designate three directors and by like
notice to request the removal of any director appointed and at any time and
from time to time by like notice to designate any other person to be a director
in the place of the director removed at their request or in the place of any
director vacating office in any way and originally so designated by the B
Shareholder and the C Shareholder and the Ordinary Shareholders agree to vote
in accordance with the directions of the B Shareholder and the C Shareholder in
connect therewith;

(d)        the Ordinary Shareholders shall be
entitled by notice in writing to the Company to designate one director and by
like notice to request the removal of the director appointed at their request
and at any time and from time to time by like notice to designate any other
person to be a director in the place of the director removed at their request
or in the place of any director vacating office in any way and originally
designated by the Ordinary Shareholders and the B Shareholder and the C
Shareholder agree to vote in accordance with the directions of the Ordinary
Shareholders in connection therewith; and

(e)         no question shall be decided at any
meeting of the members of any Subsidiary of the Company otherwise than in
accordance with a decision or direction of the Board.

	8.2	The
  modification of any of the rights attached to any class of shares in the
  Company shall require the consent in writing of all the Shareholders.
	 	 
	8.3	The
  Company shall inform the A Shareholder immediately of any matter,
  development, action or proposal which may have a material effect on the
  assets, liabilities or business of the Group.

9. 
TAX ELECTION

The
Company shall, if so required by any party, file a “check the box” election
pursuant to US Treasury Regulation Section 301.7701-3 for the Company to be
treated as a partnership for US Federal Income Tax purposes.

10. 
OPTION

	10.1	If,
  prior to 5:00pm (New York time) on 29 September 2000, the B Shareholder
  receives any offer or approach by any person (an “Offeror”) to purchase up to
  1,000,000 B1 Shares (an “Offer”), it shall immediately notify ESG Re of all
  the terms and conditions of the Offer (including the number of Shares the
  Offer relates to (the “Offer Shares”)) and of the identity of the Offeror.
	 	 
	10.2	Provided
  that:

(a)         ESG Re, the B Shareholder and the
Chairman of the Board have approved the Offer in writing before 5:00pm (New
York time) on the third Business Day following its receipt of the Offer; and

(b)        the consideration to be paid for each
Share pursuant to the Offer is US$1, then the B Shareholder shall accept the
Offer immediately following receipt of the approval referred to in paragraph
(a) and shall as soon as reasonably possible execute a legally binding
agreement in which it agrees to sell the relevant Shares on the terms of the
Offer.

	10.3	Clause
  4.2 shall apply to the Offeror. Clause 5 shall not apply to the Offeror.
	 	 
	10.4	The
  parties agree that, if a sale pursuant to this clause 10 occurs, they shall
  procure that the Bye-Laws are amended so that the Offer Shares shall be
  converted into a new class of Shares which shall have the same rights as the
  B1 Shares as to dividends, capital, conversion and redemption. They shall
  also procure that the votes attributable to each Offer Share shall entitle
  all the Offer Shares to an aggregate of 9.9% of the votes at any meeting of
  the Shareholders immediately after completion of the Offer. Such voting
  rights shall proportionately reduce the number of votes attributable to each
  Ordinary Share. For example, if there are 1,000,000 Offer Shares, the number
  of votes attributable to each Offer Share shall be 1.1880 and, if there are
  1,000,000 Ordinary Shares in issue, the number votes attributable to each
  Ordinary Share shall become 1.2480.

11. 
INDEMNITY

	11.1	The
  Company shall use its best endeavours to procure that, as soon as reasonably
  possible, ESG Re and all its Group Companies shall be released from any
  guarantees, indemnities and other actual or contingent obligations and
  comfort letters given or undertaken by them or any of them in respect of any
  and all actual or contingent liabilities whatsoever of any Group member.
	 	 
	11.2	The
  Company shall indemnify ESG Re and shall keep it indemnified against all
  liabilities, damages, costs, losses, expenses, charges, claims, demands,
  proceedings and judgments (together “Liabilities”) affecting ESG Re, which
  may have arisen or may arise in connection with ESG Re’s ownership of shares
  in the Company or in connection with the business of Group or any member of
  the Group.
			

12. 
CONFIDENTIALITY

	12.1	Each
  of the Shareholders or its respective duly authorised representatives shall
  have the right to inspect the books of the Company at any time during normal
  business hours.
	 	 
	12.2	Each
  of the directors of the Company may communicate any information acquired by
  him in relation to the Group to the Shareholder appointing him, subject
  always to the parties’ duty confidentiality contained in clause 12.3.
	 	 
	12.3	Each
  party will treat as confidential any information provided to it by any of the
  others which has not been published, or which is not already known to the
  receiving party, and will impose a similar duty of confidentiality on any
  person to whom it is permitted to transfer such information. The parties will
  maintain the utmost confidentiality regarding this Agreement at all times and
  none of the parties will make announcement to the public or to any third
  party regarding the arrangements contemplated by this Agreement without the
  consent of others, save (in the absence of agreement) for any statement or
  disclosure which may be required by law or called for by the requirements of
  any recognised stock exchange and any such statement or disclosures shall be
  no more extensive than is usual or necessary to meet the requirements imposed
  upon the party making such statement or disclosure.

13. 
NO PARTNERSHIP

This Agreement shall not create any
partnership between the parties or any of them.

14.  COSTS

Each
party to this Agreement shall pay its own costs, charges and expenses incurred
in the preparation, completion and implementation of this Agreement and the
documents referred to herein, save that ESG Re shall pay such costs, charges
and expenses of HMI and HPS.

15. 
NOTICES

	15.1	Any
  notice or other communication to be given hereunder shall either be delivered
  personally or sent by facsimile transmission. The address for service of each
  of the parties shall be the address stated at the head of this Agreement or
  in Schedule 1 or such other address as the party to be served may have
  previously notified to the others. All notices shall be deemed have been
  served as follows:

(a)         if personally delivered, at the time of
delivery;

(b)        if communicated by facsimile
transmission, at the time of transmission, provided that where, in the case of
delivery by hand or transmission by facsimile, such delivery transmission
occurs after 6 pm on a Business Day or on a day which is not a Business Day,
service shall be deemed to occur at 9 am on the next following Business Day.

	15.2	In
  proving such service it shall be sufficient to prove that personal delivery
  was made, or that the facsimile transmission was made after obtaining in
  person or by telephone appropriate evidence of the capacity of the addressee
  to receive the same, as the case may be.

16. 
SEVERABILITY

If
any provision or provisions of this Agreement (or of any document referred to
herein) is or at any time becomes illegal, invalid or unenforceable in any
respect, the legality, validity and enforceability of the remaining provisions
of this Agreement (or such document) shall not in any way be affected or
impaired thereby.

17. 
ENTIRE AGREEMENT AND VARIATION

	17.1	This
  Agreement (together with the documents referred to herein) constitutes the
  entire agreement between the parties in relation to the transactions referred
  to herein or therein and supersedes any previous agreement between the
  parties in relation to such transactions.
	 	 
	17.2	Each
  of the parties hereto confirms that, in agreeing to enter into this
  Agreement, it or he has not relied on any representation, warranty or
  undertaking except those contained in this Agreement.
	 	 
	17.3	No
  variation of any of the terms of this Agreement (or of any other documents
  referred to herein) shall be effective unless it is in writing and signed by
  or on behalf of each of the parties hereto or thereto. The expression
  “variation” shall include any variation, supplement, deletion or replacement
  however effected.

18. 
GOVERNING LAW AND JURISDICTION

This
Agreement (together with all documents referred to herein) shall be governed by
and construed and take effect in accordance with Bermuda law. Each of the
parties hereto hereby submits to the jurisdiction of the High Court of Bermuda
and agrees that in the event of any action being commenced the process by which
it is commenced may be served on it in

accordance with clause 15.

EXECUTED and DELIVERED as a DEED by the
parties on the date first written above.

Executed as a Deed by ESG Re Limited
acting by

/s/ Margaret L. Webster

Executed as a Deed by HMI Partners L.L.C.    acting by

/s/ Madie Ivy

Executed as a Deed by Head Company Profit
Sharing Plan acting by

/s/ Madie Ivy

Executed as a Deed by Gerald Moller in
the presence of:

/s/ Gerald Moller

Executed as a Deed by Roman Schenk in the
presence of:

/s/ Roman Schenk

Executed as a Deed by Jorg Menten in the
presence of:

/s/ Jorg Menten

Executed as a Deed by Dietrich Nord in
the presence of:

/s/ Dietrich Nord

Executed as a Deed by VBB (Bermuda)
Limited acting by

/s/ John C Head III

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