Document:

EXHIBIT A-1

                          Agreement and Plan of Merger

                                  by and among

                           Curtiss-Wright Corporation

                                  Unitrin, Inc.

                           and CW Disposition Company

                          dated as of November 6, 2000

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                                TABLE OF CONTENTS

ARTICLE 1
         THE MERGER......................................................2

         Section 1.1............................................The Merger
                  2

         Section 1.2.........Effect on Capital Stock at the Effective Time    2

         Section 1.3....................................Share Certificates    3

ARTICLE 2
         THE SURVIVING CORPORATION.......................................4

         Section 2.1..........................Certificate of Incorporation    4

         Section 2.2...............................................By-Laws    4

         Section 2.3................................Directors and Officers    5

ARTICLE 3
         COVENANTS AND REPRESENTATIONS AND WARRANTIES....................6

         Section 3.1..................................Stockholders Meeting    6

         Section 3.2................................Filings; Other Actions    6

         Section 3.3....................................Reasonable Efforts    8

         Section 3.4.........Representations and Warranties of the Company    8

         Section 3.5........Representations and Warranties of UNITRIN and
                            Merger Sub                                       10

ARTICLE 4
         CONDITIONS TO THE MERGER.......................................11

         Section 4.1...........Conditions to the Obligation of the Company   11

         Section 4.2........Conditions to the Obligations of UNITRIN and
                            Merger Sub                                       13

ARTICLE 5
         TERMINATION....................................................15

         Section 5.1...........................................Termination   15

         Section 5.2.................................Effect of Termination   16

<PAGE>
ARTICLE 6
         MISCELLANEOUS..................................................16

         Section 6.1...............................................Notices   16

         Section 6.2................................Successors and Assigns   18

         Section 6.3.........................................Governing Law   18

         Section 6.4...........................Counterparts; Effectiveness   18

         Section 6.5...........................................Amendments.   18

<PAGE>

           Agreement  and plan of  merger,  dated as of  november  6, 2000 (this
"agreement"),  among  curtiss-wright  corporation,  a delaware  corporation (the
"company"),   unitrin,  inc.,  A  delaware  corporation   ("unitrin"),   and  cw
disposition  company,  a delaware  corporation and a wholly owned  subsidiary of
unitrin ("merger sub").

           WHEREAS, UNITRIN owns all the issued and outstanding shares of common
stock, par value $.01 per share, of Merger Sub ("Merger Sub Common Stock"),  and
4,382,400  shares   (approximately  43%  of  the  total  number  of  issued  and
outstanding  shares) of common stock,  par value $1.00 per share, of the Company
("Common Stock");

           WHEREAS, prior to the effectiveness of the Merger (as defined below),
UNITRIN plans to contribute to Merger Sub 4,382,400 shares (approximately 43% of
the  total  number of issued  and  outstanding  shares)  of  Common  Stock  (the
"Contributed Shares");

           WHEREAS,  the Company  and UNITRIN  desire that Merger Sub merge with
and into  the  Company  (the  "Merger"),  upon  the  terms  and  subject  to the
conditions  set  forth  in  this  Agreement  in  accordance   with  the  General
Corporation Law of the State of Delaware (the "DGCL"), pursuant to which all the
issued and outstanding shares of Merger Sub Common Stock shall be converted into
shares of a new Class B common stock,  par value $1.00 per share, of the Company
("Class B Common Stock"),  and all the issued and  outstanding  shares of Common
Stock  (other than the  Contributed  Shares  held by Merger Sub,  which shall be
canceled with no securities or other consideration  issued in exchange therefor)
shall remain issued and outstanding;

           WHEREAS,  UNITRIN  has  agreed,  subject  to certain  conditions,  to
distribute all the shares of Class B Common Stock,  on a pro rata basis,  to the
holders of the common stock of UNITRIN  promptly  following  consummation of the
Merger  (the  "Distribution"),  pursuant  to  the  terms  and  conditions  of  a
Distribution  Agreement entered into between the Company and UNITRIN dated as of
the  date  hereof  (the  "Distribution  Agreement"),   which  provides  for  the
Distribution and certain other matters;

           WHEREAS,  the Boards of  Directors  of the  Company and Merger Sub by
resolutions duly adopted have approved the terms, and declared the advisability,
of this Agreement and of the Merger, and the Company has directed the submission
of this Agreement to its stockholders for adoption; and

           WHEREAS, the Merger is intended to constitute a reorganization within
the meaning of Section  368(a)(1)(E)  of the Internal  Revenue Code of 1986,  as
amended (the "Code").

           NOW,  THEREFORE  in  consideration  of the  premises  and the  mutual
agreements and provisions herein contained, the parties hereto agree as follows:

                                   ARTICLE 1
                                   THE MERGER

Section 1.1    The Merger

           (1) Upon the terms and subject to the  conditions of this  Agreement,
at the Effective  Time (as defined  below),  Merger Sub shall be merged with and
into the Company in accordance with the DGCL,  whereupon the separate  corporate
existence  of Merger Sub shall  cease,  and the Company  shall be the  surviving
corporation (the "Surviving Corporation").

           (2) Following satisfaction or waiver of all conditions to the Merger,
but only on the Distribution  Date (as defined in the  Distribution  Agreement),
the Company shall file a  Certificate  of Merger (the  "Certificate  of Merger")
with the  Secretary of State of the State of Delaware and make all other filings
or  recordings  required by the DGCL in connection  with the Merger.  The Merger
shall become  effective at such time as the  Certificate of Merger is duly filed
with the Secretary of State of the State of Delaware or at such later time as is
specified in the Certificate of Merger (the "Effective Time").

           (3) At and  after the  Effective  Time,  the  Merger  shall  have the
effects  set forth in the DGCL.  Without  limiting  the  foregoing  and  subject
thereto,  from and after the Effective  Time,  the Surviving  Corporation  shall
possess all the rights, privileges,  powers and franchises and be subject to all
the restrictions,  disabilities and duties of the Company and Merger Sub, all as
provided under the DGCL.

Section 1.2  Effect on Capital Stock at the Effective Time:t the Effective Time:
<PAGE>
           (1) All the shares of Merger Sub Common Stock outstanding immediately
prior to the Effective  Time shall be converted in the aggregate into and become
4,382,400  fully paid and  non-assessable  shares of Class B Common Stock of the
Surviving  Corporation  and shall have the rights and privileges as set forth in
the Surviving  Corporation  Certificate of Incorporation  (as defined in Section
2.1).

           (2) Each of the Contributed  Shares shall  automatically  be canceled
and retired and shall cease to exist, and no stock of the Surviving  Corporation
or other consideration shall be delivered in exchange therefor.

           (3) Each share of Common Stock  outstanding  immediately prior to the
Effective  Time (other than shares to be  canceled in  accordance  with  Section
1.2(b)) shall remain issued and outstanding, and each share of Common Stock that
immediately  prior to the Effective Time was held in the treasury of the Company
shall remain in the  treasury of the Company  and, in each case,  shall have the
rights and privileges as set forth in the Surviving  Corporation  Certificate of
Incorporation (as defined in Section 2.1).

Section 1.3 Share Certificates

           (1) As soon as practicable after the Effective Time:

                (1) the  Surviving  Corporation  shall  deliver,  or cause to be
delivered,  to  UNITRIN  a number  of  certificates  issued in the names of such
persons,  in each case, as UNITRIN shall direct,  representing  in the aggregate
4,382,400  shares of Class B Common  Stock of the  Surviving  Corporation  which
UNITRIN has the right to receive upon  conversion of shares of Merger Sub Common
Stock pursuant to the provisions of Section 1.2 (a) hereof;

                (2) the Surviving Corporation shall cancel the share certificate
or certificates  that  immediately  prior to the Effective Time  represented the
shares of Common Stock owned directly by Merger Sub; and

                (3)  the  share  certificates  that  immediately  prior  to  the
Effective  Time  represented  shares of Common  Stock  that  remain  issued  and
outstanding or in the treasury of the Company  pursuant to Section 1.2(c) hereof
shall not be exchanged and shall continue to represent an equal number of shares
of Common Stock of the Surviving  Corporation  without physical  substitution of
share certificates of the Surviving  Corporation for existing share certificates
of the Company.
<PAGE>
           (2) Any dividend or other distribution  declared or made with respect
to any shares of capital stock of the Company,  whether the record date for such
dividend or distribution is before or after the Effective Time, shall be paid to
the  holder of  record of such  shares of  capital  stock on such  record  date,
regardless of whether such holder has surrendered its certificates  representing
Common Stock or received certificates representing Class B Common Stock pursuant
to Section 1.3(a)(i).

                                   ARTICLE 2
                            THE SURVIVING CORPORATION

Section 2.1 Certificate of Incorporation

           (1) In the event the adoption of this  Agreement  and the  Governance
Provisions (as defined below) is approved by the  stockholders of the Company at
the Stockholders  Meeting (as defined below), at the Effective Time the Restated
Certificate of  Incorporation of the Company as in effect  immediately  prior to
the  Effective  Time shall be amended so as to read in its entirety as set forth
in Exhibit A-1(a) hereto and as so amended shall be the Restated  Certificate of
Incorporation of the Surviving Corporation.

           (2) In the event the  adoption of the  Governance  Provisions  is not
approved, but the adoption of this Agreement is approved, by the stockholders of
the Company at the Stockholders Meeting, and the Company waives the condition to
its obligation to consummate  the Merger set forth in Section 4.1(b) hereof,  at
the Effective Time the Restated  Certificate of  Incorporation of the Company as
in effect immediately prior to the Effective Time shall be amended so as to read
in its entirety as set forth in Exhibit A-1(b) hereto and as so amended shall be
the Restated Certificate of Incorporation of the Surviving Corporation.

           (3)  The  Restated  Certificate  of  Incorporation  of the  Surviving
Corporation that becomes  effective  pursuant to either Section 2.1(a) or 2.1(b)
hereof  is herein  referred  to as the  "Surviving  Corporation  Certificate  of
Incorporation."

Section 2.2 By-Laws

           (1) In the event the adoption of this  Agreement  and the  Governance
Provisions is approved by the  stockholders  of the Company at the  Stockholders
Meeting,  at the  Effective  Time  the  By-Laws  of  the  Company  as in  effect
immediately  prior to the Effective Time shall be amended so as to read in their
entirety as set forth in Exhibit  A-1(c)  hereto and as so amended  shall be the
By-Laws of the Surviving Corporation.
<PAGE>
           (2) In the event the  adoption of the  Governance  Provisions  is not
approved, but the adoption of this Agreement is approved, by the stockholders of
the Company at the Stockholders Meeting, and the Company waives the condition to
its obligation to consummate  the Merger set forth in Section 4.1(b) hereof,  at
the Effective Time the By-Laws of the Company as in effect  immediately prior to
the Effective Time shall be amended so as to read in their entirety as set forth
in Exhibit A-1(d) hereto and as so amended shall be the By-Laws of the Surviving
Corporation.

           (3) The By-Laws of the Surviving  Corporation as amended  pursuant to
either Section 2.2(a) or 2.2(b) hereof are herein  referred to as the "Surviving
Corporation By-Laws."

Section 2.3 Directors and Officers

           (1) The Surviving Corporation's board of directors shall consist of 8
members.  From and after the Effective Time,  until the earlier of their removal
or  resignation  or until their  successors  are duly elected or  appointed  and
qualified in  accordance  with  applicable  law, the  directors of the Surviving
Corporation  shall  consist  of the  directors  of the  Company in office at the
Effective Time. Each such director shall be designated to serve as a Director or
a Class B Director (each as defined in the Surviving Corporation  Certificate of
Incorporation),  such  designation to be mutually agreed between UNITRIN and the
Company and disclosed in the Proxy Statement (as defined below).

           (2)  In the  event  the  adoption  of the  Governance  Provisions  is
approved by the stockholders of the Company at the Stockholders  Meeting, at the
Effective Time the directors of the Surviving  Corporation shall be divided into
three   classes   pursuant  to  the   Surviving   Corporation   Certificate   of
Incorporation,  and each such director shall be designated to serve as a Class I
Director,  Class II  Director  or Class III  Director  (each as  defined  in the
Surviving  Corporation  Certificate of  Incorporation),  such  designation to be
disclosed in the Proxy Statement.

           (3) From and after the  Effective  Time,  until the  earlier of their
removal  or  resignation  or  until  their  successors  are duly  appointed  and
qualified  in  accordance  with  applicable  law and the  Surviving  Corporation
By-Laws,  the  officers of the Company  shall be the  officers of the  Surviving
Corporation.
<PAGE>

                                   ARTICLE 3
                  COVENANTS AND REPRESENTATIONS AND WARRANTIES

Section 3.1  Stockholders  Meeting.  The Company  shall,  as soon as practicable
following the date of this  Agreement,  duly call,  give notice of,  convene and
hold a meeting of its stockholders (the "Stockholders  Meeting") for the purpose
of considering,  as two separate proposals:  (a) the adoption of this Agreement;
and (b) the approval of  amendments  to the Company's  Restated  Certificate  of
Incorporation to be effected by the Merger, if so approved, providing for, among
other things,  (i) the proposed  classified  Board,  (ii) the elimination of the
stockholders'  ability to act by written consent and to call a special  meeting,
(iii) the requirement of a supermajority  vote for (A) stockholders to amend the
Surviving Corporation By-Laws and (B) any amendment to the Surviving Corporation
Certificate of Incorporation that would affect the Governance  Provisions,  (iv)
the  implementation  of limits on Board  size and (v) the  ability to fill Board
vacancies and newly created  directorships,  all as set forth in Exhibit  A-1(a)
hereto  (the   "Governance   Provisions"),   to  become  effective  solely  upon
effectiveness of the Merger. The Company shall,  through its Board of Directors,
recommend to its stockholders adoption of this Agreement and shall not withdraw,
change or modify such  recommendation;  provided,  however,  that the  Company's
Board of Directors  may  withdraw,  change or modify such  recommendation  if it
determines in good faith, after consultation with outside counsel, that it would
be inconsistent  with the Board's  fiduciary  duties to the  stockholders of the
Company not to withdraw, change or modify such recommendation.

Section 3.2 Filings; Other Actions

      (1)  Subject to the  provisions  of this  Agreement  and the  Distribution
Agreement,  the Company shall prepare and file with the  Securities and Exchange
Commission  (the  "SEC")  a proxy  statement  (the  "Proxy  Statement")  for the
solicitation of proxies in favor of (i) the adoption of this Agreement; and (ii)
the  approval  of the  Governance  Provisions  as  amendments  to the  Company's
Restated  Certificate  of  Incorporation  to become  effective  solely  upon the
effectiveness  of the Merger.  The Company shall not propose to its stockholders
the adoption of the  Governance  Provisions  as  independent  amendments  to the
Company's  Restated  Certificate  of  Incorporation,  but only as  amendments to
become effective solely upon the effectiveness of the Merger.  The Company shall
use all reasonable  efforts to have the Proxy  Statement  cleared by the SEC for
mailing in definitive  form as promptly as  practicable  after such filing.  The
Company and UNITRIN shall  cooperate  with each other in the  preparation of the
Proxy Statement and any amendment or supplement  thereto,  and the Company shall
notify  UNITRIN of the receipt of any  comments  of the SEC with  respect to the
Proxy  Statement  and of any requests by the SEC for any amendment or supplement
thereto or for  additional  information  and shall  provide to UNITRIN  promptly
copies  of all  correspondence  between  the SEC and the  Company  or any of its
advisors with respect to the Proxy Statement. The Company shall give UNITRIN and
its counsel appropriate advance opportunity to review and comment upon the Proxy
Statement  and all  responses to requests  for  additional  information  by, and
replies to comments of, the SEC, and shall  incorporate  therein any  reasonable
comments  UNITRIN may deliver to the Company with respect  thereto,  before such
Proxy Statement, response or reply is filed with or sent to the SEC. The Company
agrees to use all reasonable  efforts,  after  consultation with UNITRIN and its
advisors,  to respond promptly to all such comments of, and requests by, the SEC
and to cause the Proxy Statement to be mailed to the holders of the Common Stock
entitled  to vote at the  Stockholders  Meeting as soon as  reasonably  possible
following  the  execution  hereof.   UNITRIN  shall  provide  the  Company  such
information  concerning the business and affairs of UNITRIN and Merger Sub as is
reasonably required for inclusion in the Proxy Statement.

      (2) Each of the  Company  and  UNITRIN  shall  promptly,  and in any event
within fifteen business days after the execution and delivery of this Agreement,
make all filings or  submissions  as are  required  under the  Hart-Scott-Rodino
Antitrust  Improvements  Act of 1976, as amended (the "HSR Act"),  and any other
applicable law.

      (3) Each of the  Company  and  UNITRIN  agrees  promptly to furnish to the
other all copies of  written  communications  (and to advise one  another of the
substance of all  material  oral  communications)  received by it, or any of its
affiliates  or  representatives,  from, or delivered by any of the foregoing to,
any federal, state, local or international court, commission, governmental body,
agency,  authority,  tribunal,  board  or  other  governmental  entity  (each  a
"Governmental Entity") in respect of the transactions contemplated hereby.

      (4) At the Stockholders'  Meeting,  UNITRIN agrees to vote, or cause to be
voted,  all shares of Common  Stock owned by it and any of its  subsidiaries  or
affiliates  in favor of the adoption of this  Agreement  and the approval of the
Governance Provisions.
<PAGE>
      (5)  As  soon  as  reasonably  practicable  following  execution  of  this
Agreement,  UNITRIN,  as the sole  stockholder  of Merger Sub, shall execute and
deliver  to Merger  Sub in  accordance  with  Section  228 of the DGCL a written
consent to adoption of this Agreement.

Section 3.3 Reasonable Efforts. Upon the terms and subject to the conditions set
forth in this Agreement, each of the parties hereto agrees to use all reasonable
efforts to take,  or cause to be taken,  all actions,  and to do, or cause to be
done,  and to assist and cooperate  with the other parties in doing,  all things
necessary,  proper or advisable to obtain the adoption of this Agreement and the
approval of the  Governance  Provisions  by the  stockholders  of the Company as
contemplated by Sections 4.1(a), 4.1(b) and 4.2(a) hereof and to consummate,  as
soon  as  practicable  following  such  approval,   the  Merger  and  the  other
transactions  contemplated  by this  Agreement and the  Distribution  Agreement,
including,  but not  limited  to (a) the  obtaining  of all  necessary  actions,
waivers, consents and approvals from all Governmental Entities and the making of
all necessary  registrations  and filings  (including  filings with Governmental
Entities) and the taking of all  reasonable  steps as may be necessary to obtain
an  approval  or  waiver  from,  or to avoid an  action or  proceeding  by,  any
Governmental  Entity  (including  those in connection with the HSR Act), (b) the
obtaining of all necessary  consents,  approvals or waivers from third  parties,
(c) the defending of any lawsuits or other legal  proceedings,  whether judicial
or administrative, challenging this Agreement, the Distribution Agreement or the
consummation  of the  transactions  contemplated  hereby or  thereby,  including
seeking to have any stay or temporary  restraining order entered by any court or
other  Governmental  Entity with  respect to the Merger,  this  Agreement or the
Distribution  Agreement  vacated or reversed,  (d) the execution and delivery of
any additional instruments necessary to consummate the transactions contemplated
by this Agreement and the Distribution  Agreement and (e) causing all conditions
to the parties'  obligations to consummate (i) the Merger set forth in Article 4
hereof and (ii) the Distribution set forth in Section 2.1(b) of the Distribution
Agreement to be satisfied.  The Company and UNITRIN,  upon the other's  request,
shall  provide all such  information  reasonably  necessary  to  accomplish  the
foregoing concerning the party's business and affairs to the other party.

Section 3.4 The Company hereby represents and warrants to UNITRIN and Merger Sub
that:

      (1) the Company's  Board of Directors has approved and declared  advisable
the Merger,  this Agreement,  the  Distribution  Agreement and the  transactions
contemplated  hereby and thereby,  has determined  that the Merger and the other
transactions  contemplated by this Agreement and the Distribution  Agreement are
in the best interests of the stockholders of the Company and, subject to Section
3.1 hereof,  has recommended  that the stockholders of the Company vote in favor
of the adoption of this Agreement;
<PAGE>
      (2) the Proxy  Statement,  the form of proxy  and any  other  solicitation
materials  used in connection  therewith and any oral  solicitations  of proxies
made by the Company shall not contain any untrue statement of a material fact or
omit to state a material fact necessary in order to make the statements made, in
light of the  circumstances  under which they were made,  not misleading or omit
any statement  necessary to correct any  statement in any earlier  communication
with respect to any  solicitation  of a proxy for any of the matters to be voted
upon at the  Stockholders  Meeting which has become false or misleading,  except
that no  representation  or  warranty  is made by the  Company  with  respect to
information  relating  to UNITRIN or Merger Sub that is  provided by UNITRIN for
inclusion  in the Proxy  Statement  or any such  other  proxy  material  or oral
solicitation;

      (3) this Agreement has been duly executed and delivered by the Company and
constitutes the valid and binding agreement of the Company,  enforceable against
the Company in accordance with its terms,  subject to the effects of bankruptcy,
insolvency, fraudulent conveyance, reorganization,  moratorium and other similar
laws relating to or affecting  creditors' rights generally and general equitable
principles  (whether  considered  in a  proceeding  in  equity or at law) and an
implied covenant of good faith and fair dealing; and

      (4) subject to the changes in the Company's capitalization contemplated by
this Agreement, the capitalization of the Company is as follows:

           (1) 22,500,000  authorized shares of Common Stock of which 10,014,161
shares were outstanding at the close of business on October 16, 2000;

           (2)  4,984,149  shares of Common Stock which are held in the treasury
of the Company as the date of this Agreement;

           (3) 650,000  authorized  shares of preferred  stock of which zero (0)
shares are outstanding on the date of this Agreement; and

           (4) no  shares of any other  class or  series  of  capital  stock are
authorized, issued or outstanding.
<PAGE>
Section 3.5  Representations  and  Warranties of UNITRIN and Merger Sub. Each of
UNITRIN  and Merger Sub  jointly  and  severally  represent  and  warrant to the
Company that:

      (1) the  Board  of  Directors  of each  of  UNITRIN  and  Merger  Sub,  as
applicable,  has approved and declared advisable the Merger, this Agreement, the
Distribution  Agreement and the  transactions  contemplated  hereby and thereby,
and,  other  than as  contemplated  by Section  3.2(e)  hereof,  no  stockholder
approval  or other  further  corporate  action  will be  required on the part of
UNITRIN or Merger Sub;

      (2) this  Agreement  has been duly  executed and  delivered by UNITRIN and
Merger  Sub and  constitutes  the  valid  and  binding  agreement  of each  such
corporation,  enforceable  against UNITRIN and Merger Sub in accordance with its
terms, subject to the effects of bankruptcy,  insolvency, fraudulent conveyance,
reorganization,  moratorium  and other  similar  laws  relating to or  affecting
creditors' rights generally and general equitable principles (whether considered
in a proceeding  in equity or at law) and an implied  covenant of good faith and
fair dealing;

      (3)  UNITRIN  owns all  outstanding  capital  stock of Merger Sub free and
clear of any claims, liens or encumbrances and no other person holds any capital
stock of Merger Sub nor has any right to acquire  any equity  interest in Merger
Sub;

      (4) as of immediately  prior to the Effective Time, all of the Contributed
Shares shall be owned  beneficially  and of record by Merger Sub, free and clear
of any claims, liens or encumbrances; and

      (5)  Merger  Sub  was  formed  by  UNITRIN  solely  for  the  purposes  of
effectuating  the Merger  upon the terms and subject to the  conditions  of this
Agreement;  Merger  Sub has no  employees,  will have no assets  other  than the
Contributed  Shares,  has not  entered  into any  contract,  agreement  or other
commitment with any person except for customary corporate organizational matters
or as  specifically  set  forth  in  this  Agreement,  and  has no  liabilities,
commitments or obligations of any kind (known or unknown,  fixed or contingent),
except for those obligations specifically set forth in this Agreement.
<PAGE>

                                   ARTICLE 4
                            CONDITIONS TO THE MERGER

Section 4.1 Conditions to the  Obligation of the Company.  The obligation of the
Company to consummate  the Merger is subject to the  satisfaction  (or waiver by
the Company,  except that the condition  set forth in Section  4.1(a) may not be
waived) of the following conditions:

      (1) a proposal  to adopt this  Agreement  shall have been  approved by the
holders of (i) a majority of the Common Stock  outstanding  and entitled to vote
thereon  and (ii) a majority  of the shares of Common  Stock  (other than shares
held of record or beneficially  owned by UNITRIN)  present in person or by proxy
at the Stockholders Meeting and voting on such proposal;

      (2) a  proposal  to  approve  the  Governance  Provisions  shall have been
approved  by a majority of the Common  Stock  outstanding  and  entitled to vote
thereon;

      (3) the  waiting  period (and any  extension  thereof)  applicable  to the
Merger under the HSR Act shall have expired or been terminated;

      (4) no court,  arbitrator or other  Governmental  Entity shall have issued
any order, injunction, decree or other legal restraint or prohibition, and there
shall not be any statute,  rule or regulation,  restraining  or prohibiting  the
consummation  of the Merger or the  Distribution  and no proceeding  challenging
this Agreement or the Distribution  Agreement or the  transactions  contemplated
hereby or thereby or seeking to prohibit, alter, prevent or materially delay the
Merger or the Distribution shall have been instituted by any Governmental Entity
before any court, arbitrator or other Governmental Entity and be pending;

      (5) all  actions  by or in respect  of or  filings  with any  Governmental
Entity required to permit the  consummation of the Merger (other than the filing
of the  Certificate  of  Merger  in  compliance  with the  DGCL)  and the  other
transactions contemplated by this Agreement and the Distribution Agreement shall
have been  obtained  and shall be in full force and  effect,  except  those that
would not  reasonably  be  expected  to have a  material  adverse  effect on any
party's ability to consummate the transactions contemplated by this Agreement or
the Distribution Agreement;

      (6) prior to the Effective  Time,  the Board of Directors of UNITRIN shall
have  declared  the  Distribution  (subject  to the  prior  consummation  of the
Recapitalization (as defined in the Distribution Agreement)),  all conditions to
the Distribution set forth in the Distribution  Agreement,  other than the prior
consummation of the  Recapitalization,  shall have been satisfied or waived,  no
circumstance  shall  exist that would  reasonably  be  expected  to prevent  the
consummation  of the  Distribution  immediately  following  the Merger,  and the
Distribution Agreement shall remain in full force and effect;
<PAGE>
      (7) all  representations  and  warranties  of  UNITRIN  set  forth  in the
Distribution  Agreement (other than the representation and warranty set forth in
Section  2.3(b)(v) of the Distribution  Agreement) and all  representations  and
warranties  of  UNITRIN  and  Merger  Sub set forth in this  Agreement  that are
qualified  as  to  materiality   shall  be  true  and  correct,   and  any  such
representations  and  warranties  that  are not so  qualified  shall be true and
correct in all material  respects,  as of the  Effective  Time,  and the Company
shall have received a  certificate  executed by the chief  executive  officer of
UNITRIN to such effect;

      (8) all covenants to have been performed at or prior to the Effective Time
by UNITRIN and Merger Sub pursuant to this  Agreement  and all covenants to have
been  performed  at or prior to the  Effective  Time by UNITRIN  pursuant to the
Distribution  Agreement  shall have been  performed by UNITRIN and Merger Sub in
all material  respects at or prior to the Effective  Time, and the Company shall
have received a certificate  executed by the chief executive  officer of UNITRIN
to such effect;

      (9) each of the Company and UNITRIN  shall have  received all the Required
Consents (as defined in the Distribution Agreement);

      (10) the Class B Common Stock shall have been  approved for listing on the
New York Stock Exchange, Inc., subject to official notice of issuance;

      (11) no event  outside the control of the Company  shall have  occurred or
failed to occur that prevents the lawful consummation of the Recapitalization;

      (12)  the  transactions   contemplated  hereby  and  by  the  Distribution
Agreement  shall be in  compliance  in all  material  respects  with  applicable
federal and state securities and other applicable laws;

      (13) all actions and other documents and instruments  reasonably necessary
in connection with the transactions  contemplated hereby and by the Distribution
Agreement  shall  have been taken or  executed,  as the case may be, in form and
substance reasonably satisfactory to the Company; and
<PAGE>
      (14)  either (i) the  private  letter  ruling  from the  Internal  Revenue
Service,  providing  that,  among other  things,  the  Recapitalization  and the
Distribution  will  qualify,  to the  extent  set  forth  therein,  as  tax-free
transactions  for federal  income tax purposes under Sections 354 and 355 of the
Code, respectively (the "IRS Ruling"), shall have been issued and shall continue
in effect,  such  ruling,  insofar as it relates to the  tax-free  nature of the
Recapitalization,  shall be in form and substance satisfactory to the Company in
its sole  discretion,  and UNITRIN shall have complied with all  provisions  set
forth in the IRS  Ruling  that are  required  to be  complied  with prior to the
Declaration Date and the Distribution  Date (each as defined in the Distribution
Agreement)  in  order  for  the   Recapitalization  to  qualify  as  a  tax-free
transaction  or (ii) if the IRS Ruling is not obtained,  each of UNITRIN and the
Company shall have received a written opinion in form and substance satisfactory
to it of a nationally recognized law firm mutually acceptable to UNITRIN and the
Company (it being agreed that Skadden,  Arps,  Slate,  Meagher & Flom (Illinois)
and Simpson Thacher & Bartlett will each be deemed to be mutually  acceptable to
UNITRIN and the Company for purposes of this clause (n)),  to the same effect as
the IRS Ruling as it relates to the tax-free nature of the Recapitalization.

      The foregoing conditions are for the sole benefit of the Company and shall
not give rise to or create  any duty on the part of the  Company to waive or not
waive any such condition.

Section  4.2  Conditions  to the  Obligations  of UNITRIN  and Merger  Sub.  The
obligations  of UNITRIN and Merger Sub to  consummate  the Merger are subject to
the satisfaction (or waiver by UNITRIN and Merger Sub, except that the condition
set forth in Section 4.2(a) may not be waived) of the following conditions:

      (1) a proposal  to adopt this  Agreement  shall have been  approved by the
holders of (i) a majority of the Common Stock  outstanding  and entitled to vote
thereon  and (ii) a majority  of the shares of Common  Stock  (other than shares
held of record or beneficially  owned by UNITRIN)  present in person or by proxy
at the Stockholders Meeting and voting on such proposal;

      (2) the  waiting  period (and any  extension  thereof)  applicable  to the
Merger under the HSR Act shall have expired or been terminated;
<PAGE>
      (3) the IRS Ruling  shall have been  issued and shall  continue in effect,
such ruling shall be in form and substance  satisfactory  to UNITRIN in its sole
discretion, and the Company shall have complied with all provisions set forth in
the IRS Ruling that are  required to be complied  with prior to the  Declaration
Date and the Distribution Date;

      (4) no court,  arbitrator or other  Governmental  Entity shall have issued
any order, injunction, decree or other legal restraint or prohibition, and there
shall not be any statute,  rule or regulation,  restraining  or prohibiting  the
consummation  of the Merger or the  Distribution  and no proceeding  challenging
this Agreement or the Distribution  Agreement or the  transactions  contemplated
hereby or thereby or seeking to prohibit, alter, prevent or materially delay the
Merger or the Distribution shall have been instituted by any Governmental Entity
before any court, arbitrator or other Governmental Entity and be pending;

      (5) all  actions  by or in respect  of or  filings  with any  Governmental
Entity required to permit the  consummation of the Merger (other than the filing
of the  Certificate  of  Merger  in  compliance  with the  DGCL)  and the  other
transactions contemplated by this Agreement and the Distribution Agreement shall
have been  obtained  and shall be in full force and  effect,  except  those that
would not  reasonably  be  expected  to have a  material  adverse  effect on any
party's ability to consummate the transactions contemplated by this Agreement or
the Distribution Agreement;

      (6) at the  Effective  Time,  all  conditions  to the  declaration  of the
Distribution and the Distribution set forth in the Distribution Agreement, other
than the prior consummation of the  Recapitalization,  shall have been satisfied
or waived,  no  circumstance  shall exist that would  reasonably  be expected to
prevent the consummation of the Distribution  immediately  following the Merger,
and the Distribution Agreement shall remain in full force and effect;

      (7) all  representations  and  warranties  of the Company set forth in the
Distribution  Agreement (other than the representation and warranty set forth in
Section  2.3(a)(v) of the  Distribution  Agreement)  and this Agreement that are
qualified  as  to  materiality   shall  be  true  and  correct,   and  any  such
representations  and  warranties  that  are not so  qualified  shall be true and
correct in all material  respects,  as of the Effective  Time, and UNITRIN shall
have  received a  certificate  executed  by the chief  executive  officer of the
Company to such effect; and

      (8) all covenants to have been performed at or prior to the Effective Time
by the Company  pursuant to this Agreement or the  Distribution  Agreement shall
have been  performed  at or prior to the  Effective  Time by the  Company in all
material respects, and UNITRIN shall have received a certificate executed by the
chief executive officer of the Company to such effect.
<PAGE>
      The  foregoing  conditions  are for the sole benefit of UNITRIN and Merger
Sub and  shall not give rise to or  create  any duty on the part of  UNITRIN  or
Merger Sub to waive or not waive any such condition.

                                   ARTICLE 5
                                   TERMINATION

Section 5.1  Termination

      (1) This  Agreement may be  terminated  and the Merger may be abandoned at
any time prior to the  Effective  Time  (notwithstanding  any  approval  of this
agreement by the stockholders of the Company):

           (1) by mutual written consent of the Company and UNITRIN;

           (2) by either the  Company or  UNITRIN,  if there shall be any law or
regulation that makes consummation of the Merger illegal or otherwise prohibited
or if any judgment,  injunction, order or decree enjoining the Company or Merger
Sub from consummating the Merger is entered and such judgment, injunction, order
or decree shall become final and nonappealable;

           (3) by either the  Company or  UNITRIN,  if there shall be any law or
regulation  that makes  consummation  of the  Distribution  illegal or otherwise
prohibited or if any judgment,  injunction,  order or decree  enjoining  UNITRIN
from  consummating  the  Distribution is entered and such judgment,  injunction,
order or decree shall become final and nonappealable;

           (4) by either the Company or  UNITRIN,  if after a vote on the matter
by the Company's  stockholders at the Stockholders  Meeting,  the conditions set
forth in Sections 4.1(a) and (b) hereof, in the case of the Company, and Section
4.2(a) hereof, in the case of UNITRIN, are not satisfied;

           (5)  by  either  the  Company  or  UNITRIN,  if  the  Merger  is  not
consummated by June 30, 2001; provided that this right shall not be available to
any party that is in material breach of its obligations  under this Agreement or
the Distribution Agreement; or
<PAGE>

           (6) by either the  Company or  UNITRIN,  to the extent the Company or
UNITRIN,  as  applicable,  is allowed to terminate  the  Distribution  Agreement
pursuant to Section 5.10(a)(iii) or 5.10(a)(iv)(C) thereof, as applicable.

      (2) This Agreement shall terminate automatically without any action on the
part of the  Company,  UNITRIN  or  Merger  Sub in the  event  the  Distribution
Agreement is terminated according to its terms.

Section 5.2 Effect of Termination.  If this Agreement is terminated  pursuant to
Section 5.1, this Agreement shall become void and of no effect with no liability
on the part of any party hereto.

                                   ARTICLE 6
                                  MISCELLANEOUS

Section 6.1 Notices. All notices and other communications  hereunder shall be in
writing,  shall be effective  when received and shall be duly given if delivered
by (a) hand delivery,  (b) U.S. Mail, postage prepaid, for first class delivery,
(c) Federal Express or similar carrier,  freight prepaid,  for next business day
delivery,  or  (d)  electronic  transmission,   provided  that  confirmation  of
transmission and receipt is confirmed to each party at the following  respective
addresses  (or at such other  address for a party as shall be  specified by like
notice):

To UNITRIN:

UNITRIN, INC.
One East Wacker Drive
Chicago, Illinois 60601
Fax: (312) 661-4690
Attn:  Chief Financial Officer

with a copy to:

UNITRIN, INC.
One East Wacker Drive
Chicago, Illinois 60601
Fax: (312) 661-4941
Attn:  General Counsel

and with a copy to:

Skadden, Arps, Slate, Meagher & Flom (Illinois)
333 West Wacker Drive
Suite 2100
Chicago, Illinois 60601
Fax: (312) 407-0411
 Attn: Brian W. Duwe, Esq.
<PAGE>
To Merger Sub:

CW DISPOSITION COMPANY
c/o UNITRIN, INC.
One East Wacker Drive
Chicago, Illinois 60601
Fax: (312) 661-4690
Attn: Chief Financial Officer

with a copy to:

Skadden, Arps, Slate, Meagher & Flom (Illinois)
333 West Wacker Drive
Suite 2100
Chicago, Illinois 60606
Fax: (312) 407-0411
Attn: Brian W. Duwe, Esq.

To the Company:

CURTISS-WRIGHT CORPORATION
1200 Wall Street West
Lyndhurst, New Jersey 07071
Fax: (201) 896-4021
Attn: General Counsel

with a copy to:

Simpson Thacher & Bartlett
425 Lexington Avenue
New York, New York 10017
Fax: (212) 455-2502
Attn: Caroline B. Gottschalk, Esq.
<PAGE>
Section 6.2  Successors and Assigns.  The provisions of this Agreement  shall be
binding upon and inure to the benefit of the parties hereto and their respective
successors and assigns; provided that no party may assign, delegate or otherwise
transfer  any of its rights or  obligations  under this  Agreement  without  the
consent of the other party hereto.

Section 6.3 Governing Law. This Agreement  shall be construed in accordance with
and governed by the laws of the State of Delaware.

Section 6.4  Counterparts;  Effictiveness.  This  Agreement may be signed in any
number of counterparts, each of which shall be an original, with the same effect
as if the  signatures  thereto  and hereto were upon the same  instrument.  This
Agreement  shall become  effective  when each party  hereto shall have  received
counterparts hereof signed by the other party hereto.

Section 6.5 Amendments. Any provision of this Agreement may be amended or waived
prior to the  Effective  Time  (whether  before  or after  approval  of  matters
presented in connection with the Merger by the  stockholders of the Company) if,
and only if, such  amendment or waiver is in writing and signed,  in the case of
an  amendment,  by the Company  and UNITRIN or, in the case of a waiver,  by the
party  against  whom such  waiver is to be  effective;  provided  that after the
adoption of this Agreement by the stockholders of the Company, there shall be no
amendment that by law requires  further  approval of such  stockholders  without
obtaining such further approval of such stockholders.

IN WITNESS  WHEREOF,  the parties  hereto have caused this  Agreement to be duly
executed by their  respective  authorized  officers as of the day and year first
above written.

          CURTISS-WRIGHT CORPORATION

          By /s/ Martin R. Benante
             ---------------------
            Name: Martin R. Benante
            Title:Chairman and Chief Executive Officer

          UNITRIN, INC.

          By /s/ Eric J. Draut
             -----------------
            Name: Eric J. Draut
            Title:Senior Vice President and
                  Chief Financial Officer

          CW DISPOSITION COMPANY

          By /s/ Eric J. Draut
             -----------------
            Name: Eric J. Draut
            Title:President

<PAGE>Distribution Agreement

                                 by and between

                                  Unitrin, Inc.

                                       and

                           Curtiss-Wright Corporation

                          dated as of November 6, 2000

<PAGE>

                                TABLE OF CONTENTS

ARTICLE  1
         DEFINITIONS....................................................2

         Section 1.1..............................................General     2

         Section 1.2...........................References; Interpretation     9

ARTICLE  2
         DISTRIBUTION AND OTHER TRANSACTIONS; CERTAIN COVENANTS AND
         REPRESENTATIONS AND WARRANTIES.................................9

         Section 2................The Distribution and Other Transactions     9

         Section 2.2......Declaration Date and Distribution Date; Further
                          Assurances                                         15

         Section 2.3.......................Representations and Warranties    15

         Section 2.4...............Certain Post-Distribution Transactions    19

ARTICLE  3
         INDEMNIFICATION...............................................20

         Section 3.1...............................Indemnification by C-W    20

         Section 3.2...........................Indemnification by UNITRIN    23

         Section 3.3...............................Treatment of Payments.    24

         Section 3.4......................Procedures for Indemnification.    24

         Section 3.5........................ ......Remedies Not Exclusive    27

         Section 3.6..........................................Subrogation    27

         Section 3.7.............................Indemnification Payments    27

ARTICLE  4
         COVENANTS.....................................................27

         Section 4.1................................Access to Information    27

         Section 4.2......................................Confidentiality    28

<PAGE>
         Section 4.3......................................No Solicitation    29

         Section 4.4.............................Certain Other Agreements    30

         Section 4.5.................................Public Announcements    30

         Section 4.6....................................Required Consents    31

         Section 4.7...............................Litigation Cooperation    31

         Section 4.8........................................Other Matters    31

ARTICLE  5
         MISCELLANEOUS.................................................31

         Section 5.1.....................Complete Agreement; Construction    31

         Section 5.2.........................................Counterparts    32

         Section 5.3...............................Survival of Agreements    32

         Section 5.4.............................................Expenses    32

         Section 5.5..............................................Notices    32

         Section 5.6..............................................Waivers    33

         Section 5.7...........................................Amendments    33

         Section 5.8...........................................Assignment    34

         Section 5.9...............................Successors and Assigns    34

         Section 5.10.........................................Termination    34

         Section 5.11........................................Subsidiaries    35

         Section 5.12...........................Third Party Beneficiaries    35

         Section 5.13..................................Title and Headings    36

         Section 5.14..............................Exhibits and Schedules    36

         Section 5.15.......................................GOVERNING LAW    36

         Section 5.16.............................Consent to Jurisdiction    36

         Section 5.17........................................Severability    36

<PAGE>

<PAGE>

      DISTRIBUTION  AGREEMENT,  dated as of November 6, 2000 (this "Agreement"),
between UNITRIN,  INC, a Delaware  corporation  ("UNITRIN"),  and CURTISS-WRIGHT
CORPORATION, a Delaware corporation ("C-W").

      WHEREAS,  UNITRIN  owns,  as of the close of business on the date  hereof,
4,382,400  shares of common stock, par value $1.00 per share, of C-W (the common
stock of C-W is referred to herein as the "Common Stock");

      WHEREAS,  simultaneously  with the execution  hereof,  C-W, UNITRIN and CW
DISPOSITION  COMPANY,  a Delaware  corporation and a wholly owned  subsidiary of
UNITRIN ("Merger Sub"), are entering into an Agreement and Plan of Merger in the
form attached hereto as Exhibit A-1 (the "Recapitalization Agreement"), pursuant
to which,  among  other  things,  Merger  Sub will  merge with and into C-W (the
"Merger") with the following  consequent  capital stock  changes:  (a) 4,382,400
shares of Common Stock held by UNITRIN will be contributed to Merger Sub and, as
of the  Effective  Time (as  defined in the  Recapitalization  Agreement),  will
automatically be canceled and retired with no securities or other  consideration
issued in exchange therefore, (b) all of the common stock of Merger Sub owned by
UNITRIN will be converted into  4,382,400  shares of a new Class B common stock,
par value  $1.00 per share,  of C-W  ("Class B Common  Stock"),  which  class of
common  stock will be entitled to elect at least 80% of the members of the Board
of Directors of C-W and in all other respects will be substantially identical to
the Common Stock,  and (c) all other shares of Common Stock held by stockholders
of C-W will remain issued and outstanding (the "Recapitalization");

      WHEREAS,  the Board of Directors of UNITRIN has  determined  that it is in
the  best  interests  of  UNITRIN  and its  stockholders  to  distribute  on the
Distribution  Date (as defined  herein)  all the shares of Class B Common  Stock
that UNITRIN will receive in the  Recapitalization,  on the terms and subject to
the  conditions  set forth in this  Agreement,  to the  holders of record of the
common stock, par value $.01 per share, of UNITRIN ("UNITRIN Common Stock"),  as
of the Distribution  Record Date (as defined  herein),  on a pro rata basis (the
"Distribution");

      WHEREAS,  the Board of Directors of C-W has  determined  that it is in the
best interests of C-W and its stockholders that the Distribution be consummated,
and the  Recapitalization  is a  necessary  and  desirable  means to enable  the
Distribution to occur;

<PAGE>

      WHEREAS, UNITRIN is expected to receive a ruling from the Internal Revenue
Service to the  effect  that the  Distribution  will be, to the extent set forth
therein, a tax-free  distribution  within the meaning of Section 355 of the Code
(as defined herein); and

      WHEREAS,  each of UNITRIN and C-W has determined  that it is necessary and
desirable to set forth the principal corporate  transactions  required to effect
the Distribution and the Recapitalization and to set forth other agreements that
will govern certain other matters following the Distribution.

      NOW, THEREFORE, in consideration of the mutual agreements,  provisions and
covenants contained in this Agreement, the parties hereby agree as follows:

                                    ARTICLE 1
                                   DEFINITIONS

Section 1.1 General.  As used in this Agreement,  the following terms shall have
the following meanings:

      (1) "Action" shall mean any action, suit, arbitration, inquiry, proceeding
or investigation by or before any court, any governmental or other regulatory or
administrative agency, body or commission or any arbitration tribunal.

      (2)  "Acquisition  Proposal"  shall have the  meaning set forth in Section
4.3(a).

      (3) "Affiliate"  shall mean, when used with respect to a specified person,
another person that controls,  is controlled by, or is under common control with
the person specified. As used herein,  "control" means the possession,  directly
or  indirectly,  of the power to direct or cause the direction of the management
and policies of such person,  whether through the ownership of voting securities
or other interests, by contract or otherwise.

      (4)  "Assets"  shall  mean  assets,   properties  and  rights   (including
goodwill),  wherever  located  (including in the  possession of vendors or other
third  parties  or  elsewhere),  whether  real,  personal  or  mixed,  tangible,
intangible or  contingent,  in each case whether or not recorded or reflected or
required  to be  recorded or  reflected  on the books and  records or  financial
statements of any Person.

      (5) "Business  Entity" shall mean any  corporation,  partnership,  limited
liability company or other entity which may legally hold title to Assets.
<PAGE>
      (6) "Cash Dividend" shall have the meaning set forth in Section 2.1(d).

      (7) "Cash  Dividend  Record  Date" shall mean the date  determined  by the
Board of Directors of C-W as the record date for the determination of holders of
record of Common Stock entitled to receive the Cash Dividend.

      (8)  "Certificate  of  Merger"  shall  have the  meaning  set forth in the
Recapitalization Agreement.

      (9)  "Class B  Common  Stock"  shall  have the  meaning  set  forth in the
recitals hereto.

      (10) "Code" shall mean the Internal Revenue Code of 1986, as amended,  and
the  Treasury  Regulations  promulgated  thereunder,   including  any  successor
legislation or regulations.

      (11) "Commission" shall mean the U.S. Securities and Exchange Commission.

      (12)  "Common  Stock"  shall have the  meaning  set forth in the  recitals
hereto.

      (13)  "C-W"  shall  have the  meaning  set  forth in the  heading  of this
Agreement.

      (14) "C-W Business"  shall mean each and every  business  conducted at any
time prior to, on or after the Distribution Date by C-W or any current,  former,
or future  Subsidiary of C-W or other Business Entity controlled by C-W, whether
or not  such  Subsidiary  is a  Subsidiary  of C-W or such  Business  Entity  is
controlled by C-W on the date hereof.

      (15) "C-W Group"  shall mean C-W and each Person that is a  Subsidiary  of
C-W immediately prior to the Distribution Date.

      (16) "C-W Indemnitees"  shall mean C-W, each member of the C-W Group, each
of their respective present and former directors, officers, employees and agents
and  each  of  the  heirs,  executors,  successors  and  assigns  of  any of the
foregoing.
<PAGE>
      (17) "C-W Liabilities" shall mean,  collectively,  any and all Liabilities
whatsoever that arise out of, result from or are related to the operation of the
C-W  Business or the  ownership  of the assets of the C-W  Business by C-W,  any
predecessor entity of C-W (and all predecessors thereto) or any Subsidiary of or
Business Entity  controlled by such predecessor,  any current,  former or future
Subsidiary  of C-W or any  Business  Entity  controlled  by  C-W,  whether  such
Liabilities arise before, on or after the Distribution Date and whether known or
unknown, fixed or contingent, and shall include, without limitation:

           (1) any and all Liabilities to which UNITRIN or its  predecessors and
successors may become  subject  arising from or based upon its status or alleged
status as a "controlling  person" (as defined under Section 15 of the Securities
Act and Section 20 of the Exchange Act) of C-W or a stockholder  of C-W relating
to (A) the Proxy Statement (or any amendment  thereto) or any other solicitation
materials or any oral solicitations of proxies (except for liabilities which C-W
incurs as a result of, and to the extent resulting from, information provided by
UNITRIN  relating  to  UNITRIN  for  inclusion  in the Proxy  Statement  (or any
amendment   thereto)  or  any  such  other   solicitation   materials   or  oral
solicitation);  or (B) any  other  report  or  document  filed  by C-W  with the
Commission  at any time before,  on or after the  Distribution  Date (except for
liabilities  which C-W incurs as a result of, and to the extent  resulting from,
information provided by UNITRIN relating to UNITRIN for inclusion in such report
or document);

           (2)  any  Liabilities  for a  breach  by C-W  of any  representation,
warranty or covenant herein or in the Recapitalization Agreement; and

           (3) any and all Liabilities  which UNITRIN incurs as a result of, and
to the extent  resulting from,  information  provided by C-W relating to C-W for
inclusion in any information  statement  provided by UNITRIN to its stockholders
or any report or document filed by UNITRIN with the Commission.

      (18) "Declaration  Date" shall mean the date on which the UNITRIN Board of
Directors shall declare the Distribution;  provided that the declaration and the
payment  of the  Distribution  shall  be  conditioned  upon and  subject  to the
consummation of the Recapitalization,  and the payment of the Distribution shall
consist  of the  shares  of Class B Common  Stock  received  by  UNITRIN  in the
Recapitalization  and shall be after the consummation of the Recapitalization on
the day on which the Recapitalization occurs.
<PAGE>
      (19)  "DGCL"  shall  mean  the  General  Corporation  Law of the  State of
Delaware.

      (20)  "Distribution"  shall  have the  meaning  set forth in the  recitals
hereto.

      (21)  "Distribution  Agent" shall mean the distribution  agent selected by
UNITRIN to effect the Distribution, which shall be C-W's stock transfer agent.

      (22)  "Distribution  Date" shall mean the date  determined by the Board of
Directors of UNITRIN for the mailing of  certificates of Class B Common Stock to
stockholders of UNITRIN in the  Distribution.  The Distribution  Date shall be a
date as soon as practicable  following the Declaration Date and shall be the day
on which the Recapitalization occurs.

      (23)  "Distribution  Record  Date" shall mean the date  determined  by the
Board of  Directors of UNITRIN as the record date for the  determination  of the
holders of record of UNITRIN  Common Stock entitled to receive shares of Class B
Common Stock in the Distribution.

      (24)  "Established  Liability"  shall mean,  with  respect to each UNITRIN
stockholder,  the amount of Tax  Liability  (including  interest and  penalties)
resulting  from the  Distribution,  as evidenced by (a) an amended tax return of
such UNITRIN stockholder  reflecting the amount of such Tax Liability,  together
with proof of payment of such  amount,  or (b) a deficiency  notice  received by
such  UNITRIN  stockholder  from the IRS  setting  forth the  amount of such Tax
Liability, together with proof of payment of such amount.

      (25)  "Exchange  Act" shall mean the  Securities  Exchange Act of 1934, as
amended, and the rules and regulations promulgated thereunder.

      (26)  "Form  8-A"  shall  mean a C-W  registration  statement  on Form 8-A
pursuant  to which  the  Class B Common  Stock  shall be  registered  under  the
Exchange Act, including all amendments thereto.

      (27)  "Governmental  Authority"  shall  mean any  federal,  state,  local,
foreign or  international  court,  government,  department,  commission,  board,
bureau,  agency,  official or other  regulatory,  administrative or governmental
authority.

      (28)  "Governance  Provisions"  shall  have the  meaning  set forth in the
Recapitalization Agreement.
<PAGE>
      (29) "HSR Act" shall have the meaning set forth in Section 2.3(a)(iii).

      (30) "Indemnifying Party" shall have the meaning set forth in Section 3.3.

      (31) "Indemnitee" shall have the meaning set forth in Section 3.3.

      (32) "IRS" shall mean the Internal Revenue Service.

      (33) "IRS Ruling" shall have the meaning set forth in Section 2.1(b)(i).

      (34) "Liabilities" shall mean any and all losses, claims,  charges, debts,
demands, actions, causes of action, suits, damages, obligations, payments, costs
and  expenses,  sums  of  money,  accounts,   reckonings,   bonds,  specialties,
indemnities  and  similar  obligations,   exonerations,   covenants,  contracts,
controversies,  agreements,  promises,  omissions,  variances,  guarantees, make
whole agreements and similar obligations,  and other liabilities,  including all
contractual obligations,  whether absolute or contingent,  matured or unmatured,
liquidated or  unliquidated,  accrued or unaccrued,  known or unknown,  whenever
arising,  and including those arising under any law, rule,  regulation,  Action,
threatened or contemplated  Action (including the costs and expenses of demands,
assessments,   judgments,  settlements  and  compromises  relating  thereto  and
attorneys'  fees  and any and all  costs  and  expenses,  whatsoever  reasonably
incurred in  investigating,  preparing or defending  against any such Actions or
threatened or contemplated Actions), order or consent decree of any governmental
or other regulatory or administrative agency, body or commission or any award of
any  arbitrator  or mediator of any kind,  and those arising under any contract,
commitment or  undertaking,  including those arising under this Agreement or the
Recapitalization  Agreement,  in each case, whether or not recorded or reflected
or required to be recorded or  reflected  on the books and records or  financial
statements of any person.

      (35) "Material Adverse Effect" shall mean, with respect to any Person, any
change, effect, event, occurrence or development that is, individually or in the
aggregate,  materially adverse to the business, operations, assets, liabilities,
condition  (financial or otherwise),  results of operations or prospects of such
Person.

      (36) "Merger" shall have the meaning set forth in the recitals hereto.

      (37) "NYSE" shall mean the New York Stock Exchange, Inc.
<PAGE>
      (38) "NYSE Listing Application" shall mean the application to be submitted
by C-W to the NYSE for the listing of the Class B Common Stock.

      (39) "Person" shall mean any natural person, Business Entity, corporation,
business trust, joint venture, association,  company, partnership,  other entity
or government, or any agency or political subdivision thereof.

      (40)  "Proxy   Statement"   shall  have  the  meaning  set  forth  in  the
Recapitalization Agreement.

      (41)  "Recapitalization"  shall have the meaning set forth in the recitals
hereto.

      (42) "Recapitalization  Agreement" shall have the meaning set forth in the
recitals hereto.

      (43) "Required Consents" shall have the meaning set forth in Section 4.5.

      (44)  "Securities  Act" shall mean the Securities Act of 1933, as amended,
and the rules and regulations promulgated thereunder.

      (45) "Subsidiary"  shall mean any corporation,  limited liability company,
partnership  or other  entity of which  another  entity  (i) owns,  directly  or
indirectly,  ownership interests  sufficient to elect a majority of the Board of
Directors (or persons performing similar functions)  (irrespective of whether at
the time any other class or classes of ownership  interests of such corporation,
partnership  or other  entity  shall or might  have such  voting  power upon the
occurrence  of any  contingency)  or  (ii) is a  general  partner  or an  entity
performing similar functions (e.g., a trustee).

      (46) "Tax" or "Taxes"  shall mean taxes of any kind,  levies or other like
assessments,  customs, duties, imposts, charges or fees, including income, gross
receipts,  ad valorem,  value added,  excise, real or personal property,  asset,
sales,  use, license,  payroll,  transaction,  capital,  net worth and franchise
taxes, withholding,  employment, social security, workers compensation, utility,
severance, production, unemployment compensation,  occupation, premium, windfall
profits, transfer and gains taxes or other governmental taxes imposed or payable
to the United  States,  or any state,  county,  local or foreign  government  or
subdivision or agency thereof,  and in each instance such term shall include any
interest, penalties,  additions to tax or additional amounts attributable to any
such tax.
<PAGE>
      (47) "Tax Claim" shall have the meaning set forth in Section 3.3.

      (48) "Third Party Claim" shall have the meaning set forth in Section 3.3.

      (49) "UNITRIN Business" shall mean each and every business (except for the
C-W Business)  conducted at any time prior to, on or after the Distribution Date
by UNITRIN or any  current,  former or future  Subsidiary  of UNITRIN  (it being
understood that the foregoing does not include C-W and its  Subsidiaries) or any
Business  Entity  controlled by UNITRIN (it being  understood that the foregoing
does not include C-W and its Subsidiaries),  whether or not such Subsidiary is a
Subsidiary  of UNITRIN or such  Business  Entity is controlled by UNITRIN on the
date hereof.

      (50)  "UNITRIN  Common  Stock"  shall  have the  meaning  set forth in the
recitals hereto.

      (51)  "UNITRIN  Group" shall mean UNITRIN and each Person  (other than any
member  of  the  C-W  Group)  that  is a  Subsidiary  or  Affiliate  of  UNITRIN
immediately prior to the Distribution Date.

      (52) "UNITRIN  Indemnitees" shall mean UNITRIN, each member of the UNITRIN
Group,  each  of  their  respective  present  and  former  directors,  officers,
employees and agents and each of the heirs, executors, successors and assigns of
any of the  foregoing,  except C-W  Indemnitees  who would not  otherwise  be an
UNITRIN Indemnitee.

      (53)  "UNITRIN  Liabilities"  shall  mean,   collectively,   any  and  all
Liabilities  whatsoever  that arise out of,  result  from or are  related to the
operation of the UNITRIN  Business or the ownership of the assets of the UNITRIN
Business by UNITRIN,  any  predecessor  entity of UNITRIN (and all  predecessors
thereto)  or any  Subsidiary  of or  Business  Entity  controlled  by  any  such
predecessor, any current, former or future Subsidiary of UNITRIN or any Business
Entity  controlled by UNITRIN (it being  understood  that the foregoing does not
include C-W and its Subsidiaries),  whether such Liabilities arise before, on or
after the Distribution  Date and whether known or unknown,  fixed or contingent,
and shall include, without limitation:

           (1) any  Liabilities  for a breach by UNITRIN of any  representation,
warranty or covenant herein or in the Recapitalization Agreement; and
<PAGE>
           (2) any and all  Liabilities  which C-W incurs as a result of, and to
the extent resulting from,  information  provided by UNITRIN relating to UNITRIN
for  inclusion in the Proxy  Statement  (or any  amendment  thereto),  any other
solicitation  materials  or any oral  solicitation  of  proxies or any report or
document filed by C-W with the Commission.

Section 1.2  References:  Interpretations.  References in this  Agreement to any
gender include references to all genders, and references to the singular include
references to the plural and vice versa.  The words  "include",  "includes"  and
"including"  when used in this  Agreement  shall be deemed to be followed by the
phrase "without limitation".  Unless the context otherwise requires,  references
in this Agreement to Articles,  Sections, Exhibits and Schedules shall be deemed
references  to Articles and Sections  of, and  Exhibits and  Schedules  to, this
Agreement.  Unless the context otherwise requires, the words "hereof",  "hereby"
and "herein" and words of similar  meaning when used in this Agreement  refer to
this  Agreement in its entirety and not to any  particular  Article,  Section or
provision of this Agreement.

                                    ARTICLE 2
             DISTRIBUTION AND OTHER TRANSACTIONS; CERTAIN COVENANTS
                       AND REPRESENTATIONS AND WARRANTIES

Section 2.1 The Distribution and Other Transactions

      (1) The  Distribution.  Subject  to the  conditions  set forth in  Section
2.1(b) of this  Agreement,  on the  Declaration  Date, the Board of Directors of
UNITRIN shall  irrevocably  declare the Distribution upon the terms set forth in
this Agreement.  The declaration  and the payment of the  Distribution  shall be
conditioned  upon and subject to the consummation of the  Recapitalization,  and
the payment of the  Distribution  shall  consist of the shares of Class B Common
Stock received by UNITRIN in the Recapitalization,  it being understood that the
Distribution  will  occur  after,  but on the same  date as,  the  filing of the
Certificate  of Merger.  To effect the  Distribution,  UNITRIN  shall  cause the
Distribution Agent to distribute,  on the Distribution Date, on a pro rata basis
and taking  into  account  Section  2.1(c),  to the holders of record of UNITRIN
Common Stock on the Distribution Record Date, the certificates  representing the
shares of Class B Common  Stock  received  by UNITRIN  in the  Recapitalization.
During the period commencing on the date the certificates representing shares of
Class B Common Stock are delivered to the Distribution Agent and ending upon the
date(s) on which  certificates  evidencing  such shares are mailed to holders of
record of  UNITRIN  Common  Stock on the  Distribution  Record  Date or on which
<PAGE>
fractional  shares of Class B Common  Stock are sold on behalf of such  holders,
the Distribution Agent shall hold the certificates  representing shares of Class
B  Common  Stock  on  behalf  of such  holders.  UNITRIN  shall  deliver  to the
Distribution  Agent the share  certificates  representing  the shares of Class B
Common Stock held by UNITRIN.  UNITRIN  shall enter into an  agreement  with the
Distribution  Agent in connection  with the  foregoing,  and shall agree,  among
other things,  to reimburse the  Distribution  Agent for its  reasonable  costs,
expenses and fees in connection with the Distribution.  C-W agrees, if requested
by UNITRIN, to provide such number of certificates  evidencing shares of Class B
Common  Stock  that  UNITRIN  shall  reasonably  require  in order to effect the
Distribution.

      (2) Conditions to the Declaration and  Distribution.  The UNITRIN Board of
Directors shall irrevocably declare the Distribution, and cause the Distribution
to be effected  on the  Distribution  Date,  as soon as  reasonably  practicable
following  the  satisfaction  or waiver,  as  determined  by UNITRIN in its sole
discretion,  of the  conditions  set  forth  below  (which  conditions  must  be
satisfied  or  waived  on or  prior  to the  Declaration  Date  unless  any such
condition by its terms can only be satisfied after the Declaration Date in which
case such condition must be satisfied or waived on or prior to the  Distribution
Date):

           (1) the private letter ruling  requested from the IRS providing that,
among other things, the  Recapitalization  and the Distribution will qualify, to
the extent set forth therein,  as tax-free  transactions  for federal income tax
purposes under Sections 354 and 355 of the Code, respectively (the "IRS Ruling")
shall have been  issued and shall  continue in effect,  such ruling  shall be in
form and substance satisfactory to UNITRIN in its sole discretion, and C-W shall
have complied with all  provisions set forth in the IRS Ruling that are required
to be complied with prior to the Declaration Date and the Distribution Date;

           (2) no event  outside the control of UNITRIN  shall have  occurred or
failed to occur that prevents the lawful consummation of the Distribution;

           (3) the transactions  contemplated hereby and by the Recapitalization
Agreement  shall be in  compliance  in all  material  respects  with  applicable
federal and state securities and other applicable laws;

           (4) each of C-W and  UNITRIN  shall have  received  all the  Required
Consents;
<PAGE>
           (5) all conditions to the Recapitalization (including those set forth
in Article 4 of the Recapitalization  Agreement) (other than, in the case of the
declaration,  the declaration and consummation of the  Distribution)  shall have
been  satisfied  or  waived  by  the  applicable  party,  in  the  case  of  the
declaration,  no circumstances  shall exist that would reasonably be expected to
prevent  the  consummation  of the  Recapitalization  immediately  prior  to the
Distribution and, in the case of the Distribution,  the  Recapitalization  shall
have been consummated;

           (6) The Cash Dividend (as defined  below) shall have been declared by
the Board of Directors of C-W substantially  simultaneously with the declaration
of the Distribution  and no  circumstances  shall exist that would reasonably be
expected to prevent prompt payment of the Cash Dividend;

           (7) the Form 8-A shall have been filed with the Commission;

           (8) the Class B Common Stock shall have been  approved for listing on
the NYSE, subject to official notice of issuance;

           (9)  each of the  representations  and  warranties  (other  than  the
representation and warranty set forth in Section 2.3(a)(v) of this Agreement) of
C-W set forth in this  Agreement  and the  Recapitalization  Agreement  that are
qualified  as  to  materiality   shall  be  true  and  correct,   and  any  such
representations  and  warranties  that  are not so  qualified  shall be true and
correct  in  all  material  respects,   as  of  the  Declaration  Date  and  the
Distribution  Date and UNITRIN shall have  received a  certificate  of the chief
executive officer of C-W as to the foregoing;

           (10) C-W shall have  performed or complied in all  material  respects
with all  agreements  and  covenants  required to be  performed by it under this
Agreement and the Recapitalization Agreement at or prior to the Declaration Date
or, if  applicable,  the  Distribution  Date and UNITRIN  shall have  received a
certificate of the chief executive officer of C-W as to the foregoing; and

           (11) all  actions  and other  documents  and  instruments  reasonably
necessary in connection  with the  transactions  contemplated  hereby and by the
Recapitalization  Agreement  shall have been taken or executed,  as the case may
be, in form and substance reasonably satisfactory to UNITRIN.

The foregoing  conditions are for the sole benefit of UNITRIN and shall not give
rise to or create any duty on the part of UNITRIN to waive or not waive any such
condition.
<PAGE>
      (3) Sale of Fractional  Shares.  UNITRIN  shall  appoint the  Distribution
Agent as agent  for each  holder of record  of  UNITRIN  Common  Stock who would
otherwise be entitled to receive in the  Distribution  any  fractional  share of
Class B Common Stock. The Distribution Agent shall aggregate all such fractional
shares  and sell  them in an  orderly  manner as soon as  practicable  after the
Distribution  Date in the open  market  and,  after  completion  of such  sales,
distribute a pro rata portion of the net  proceeds  from such sales,  based upon
the  gross  selling  price  of all such  fractional  shares  net of all  selling
expenses,  to each  stockholder  of UNITRIN who would  otherwise have received a
fractional  share.  UNITRIN  shall  reimburse  the  Distribution  Agent  for its
reasonable costs,  expenses and fees (other than selling expenses) in connection
with the sale of fractional  shares of Class B Common Stock and the distribution
of the proceeds thereof in accordance with this Section 2.1(c).

      (4) Special  Dividend.  (i) Subject to the  conditions set forth in clause
(ii) below, on the Declaration Date, the Board of Directors of C-W shall declare
a pro rata cash dividend  (the "Cash  Dividend") in the amount of $.25 per share
to all  holders  of record of Common  Stock on the Cash  Dividend  Record  Date.
UNITRIN hereby waives,  subject to completion of the Distribution,  its right to
receive its pro rata share of the Cash Dividend.

           (ii) The  obligation  of the Board of Directors of C-W to declare the
Cash Dividend on the Declaration Date shall be conditioned upon the satisfaction
of  the   conditions  set  forth  in  Section  2.1(b)  hereof  (other  than  the
consummation of the  Recapitalization and other than clause (vi) thereof) and in
Sections 4.1 and 4.2 of the Recapitalization Agreement.

      (5) Other Actions.

           (1) UNITRIN  shall  prepare and mail,  at such time as  determined by
UNITRIN,  to the holders of UNITRIN Common Stock,  such  information  concerning
C-W, its business,  operations  and  management,  the  Distribution  and the tax
consequences  thereof  and  such  other  matters  as  UNITRIN  shall  reasonably
determine or as may be required by law.  UNITRIN  shall give C-W and its counsel
reasonably  appropriate  advance  opportunity  to review and  comment  upon such
documents and shall  consider in good faith any comments C-W timely  delivers to
UNITRIN with respect to such  information.  C-W agrees to cooperate with UNITRIN
in the  preparation  of, and provide any  information  reasonably  requested  by
UNITRIN for inclusion  in, such mailing.  C-W  represents  that all  information
provided to UNITRIN for such  mailing  shall be true and correct in all material
respects.  UNITRIN and C-W will prepare,  and C-W will,  to the extent  required
under applicable law, file with the Commission any such documentation, including
any  no  action  letters  or  other  requests  for  interpretive  or  regulatory
assistance,  if any,  which  UNITRIN  reasonably  determines  are  necessary  or
desirable to effectuate the Distribution and the other transactions contemplated
hereby and by the Recapitalization Agreement, and UNITRIN and C-W shall each use
all  reasonable  efforts to obtain all necessary  approvals  from the Commission
with respect thereto as soon as practicable.
<PAGE>
           (2) UNITRIN and C-W shall take all such action as may be necessary or
appropriate  under the securities or blue sky laws of the United States (and any
comparable  laws  under  any  foreign   jurisdiction)  in  connection  with  the
Distribution  and  the  other  transactions   contemplated  hereby  and  by  the
Recapitalization Agreement.

           (3) C-W shall prepare and file, and shall use all reasonable  efforts
to have  approved,  an  application  for the  listing on the NYSE of the Class B
Common Stock to be distributed in the  Distribution,  subject to official notice
of issuance.

           (4) C-W shall  prepare  and file the Form 8-A (which  may  include or
incorporate by reference  information contained in the Proxy Statement) with the
Commission as promptly as practicable  following the execution hereof, and shall
use all reasonable  efforts to cause the Form 8-A to become  effective under the
Exchange Act immediately  following the consummation of the  Recapitalization or
as soon thereafter as practicable.

           (5) On or prior to the  Distribution  Date,  C-W shall,  from time to
time as and to the extent  reasonably  requested  by UNITRIN or requested by the
IRS, provide any documentation, certifications or other information necessary to
enable UNITRIN to obtain the IRS Ruling.

           (6) On or prior to the  Distribution  Date,  each of UNITRIN  and C-W
shall take those actions and consummate  those other  transactions in connection
with the  Distribution  that are  contemplated  by the IRS  Ruling,  the  ruling
request  therefor  or any  related  submissions  by  UNITRIN  to the IRS  (which
submissions  C-W and its counsel  shall be given the  opportunity  to review and
comment upon in accordance with clause (viii) below).

           (7) In  addition  to those  matters  specifically  set  forth  above,
UNITRIN and C-W also shall take all reasonable  steps  necessary and appropriate
to cause the  conditions  set forth in  Section  2.1(b) to be  satisfied  and to
effect the Distribution on the Distribution  Date and the Cash Dividend prior to
the Distribution Date.
<PAGE>
           (8)  UNITRIN  will give C-W and its  counsel  reasonably  appropriate
advance  opportunity  to review and comment  upon  filings to be made by UNITRIN
with the Commission or the IRS with respect to the Distribution, this Agreement,
the Recapitalization Agreement or any of the transactions contemplated hereby or
thereby and shall  consider in good faith any  comments  C-W timely  delivers to
UNITRIN with respect to such filing.

           (9) C-W will give  UNITRIN  and its  counsel  reasonably  appropriate
advance  opportunity  to review and comment  upon filings to be made by C-W with
the  Commission  with  respect  to  the   Distribution,   this  Agreement,   the
Recapitalization  Agreement and any of the transactions  contemplated  hereby or
thereby and shall consider in good faith any comments UNITRIN timely delivers to
C-W with respect to such filing.

           (10) Prior to the Distribution Date, C-W shall not amend, and the C-W
Board  of  Directors   shall  not  approve  any  amendment  to,  C-W's  Restated
Certificate  of  Incorporation  or  By-Laws,  other  than the  amendments  to be
effected  upon the filing of the  Certificate  of Merger with the  Secretary  of
State of the State of Delaware in connection with the  Recapitalization  and, if
applicable,  the  Governance  Provisions  in  accordance  with the  terms of the
Recapitalization Agreement.

           (11) UNITRIN agrees to be present, and agrees to cause Merger Sub, as
applicable,  to be present, in person or by proxy at each and every stockholders
meeting of C-W at which the Recapitalization  and the Governance  Provisions are
submitted to the stockholders of C-W for  consideration at such meeting,  and to
vote,  or cause to be voted,  all  shares  of Common  Stock  owned  directly  or
indirectly by it and its Subsidiaries in favor of the  Recapitalization  and the
Governance  Provisions and similarly to execute any written consent submitted by
stockholders  of C-W  in  favor  of  the  Recapitalization  and  the  Governance
Provisions;  provided that the  Governance  Provisions  are to become  effective
solely upon the effectiveness of the Merger.

           (12) On or prior to the  Distribution  date, each of UNITRIN and C-W,
as the case  may be,  shall,  from  time to time  and to the  extent  reasonably
requested  by the other,  provide  any  documentation,  certifications  or other
information  to make  required  filings  in  connection  with  the  transactions
contemplated by this Agreement and the Recapitalization Agreement.
<PAGE>

Section 2.2 Declaration Date and Distribution Date; Further Assurances

      (1) The parties agree that the Declaration Date and the Distribution Date,
as  applicable,  shall occur as soon as  reasonably  practicable  following  the
satisfaction  or waiver of the  conditions  set forth in Section 2.1(b) hereof .
The parties  shall cause their  respective  Boards of  Directors  to meet on the
Declaration  Date and each shall take such  corporate  action at such meeting as
shall be  required  to effect the  transactions  contemplated  hereby and by the
Recapitalization  Agreement.  Immediately following such meeting, C-W shall take
all actions required to consummate the  Recapitalization  in accordance with the
terms of the Recapitalization Agreement, including the filing of the Certificate
of Merger with the Secretary of State of the State of Delaware.

      (2)  Subject  to each of  C-W's  and  UNITRIN's  right to  terminate  this
Agreement in  accordance  with Section  5.10, in case at any time after the date
hereof any further action is reasonably  necessary or desirable to carry out the
Distribution, the Recapitalization or any other purpose of this Agreement or the
Recapitalization  Agreement, the proper officers of each party to this Agreement
shall take all such necessary  action.  Without limiting the foregoing,  UNITRIN
and C-W shall use all reasonable  efforts  promptly to obtain the IRS Ruling and
all consents and approvals,  to enter into all amendatory agreements and to make
all filings and  applications  that may be required for the  consummation of the
transactions contemplated by this Agreement and the Recapitalization  Agreement,
including all applicable governmental and regulatory filings.

Section 2.3 Representations and Warranties

      (1) C-W hereby represents and warrants to UNITRIN as follows:

           (1)   Organization;   Good  Standing.   C-W  is  a  corporation  duly
incorporated,  validly existing and in good standing under the laws of the State
of Delaware and has all corporate power required to consummate the  transactions
contemplated hereby and by the Recapitalization Agreement.

           (2) Authorization.  The execution, delivery and performance by C-W of
this Agreement and the Recapitalization Agreement and the consummation by C-W of
the  transactions  contemplated  hereby and thereby have been duly authorized by
all necessary  corporate  action on the part of C-W,  other than the adoption of
the Recapitalization  Agreement and the approval of the Governance Provisions by
the  stockholders  of  C-W.  Each  of this  Agreement  and the  Recapitalization
Agreement  constitutes,  and each other  agreement  or  instrument  executed and
delivered or to be executed and  delivered by C-W pursuant to this  Agreement or
the   Recapitalization   Agreement  will,  upon  such  execution  and  delivery,
constitute,  a legal, valid and binding obligation of C-W,  enforceable  against
C-W in  accordance  with  its  terms,  subject  to the  effects  of  bankruptcy,
insolvency, fraudulent conveyance, reorganization,  moratorium and other similar
laws relating to or affecting creditors' rights generally, and general equitable
principles  (whether  considered  in a  proceeding  in  equity or at law) and an
implied covenant of good faith and fair dealing.
<PAGE>
           (3)  Consents  and  Filings.   Except  (A)  for  the  filing  of  the
Certificate  of Merger in  connection  with the  Recapitalization  and any other
filings  required  to be made  with  the  Secretary  of  State  of the  State of
Delaware,  (B) for the NYSE Listing  Application  and any filings in  connection
therewith,  (C) as required under the Hart-Scott-Rodino  Antitrust  Improvements
Act of 1976,  as  amended  (the "HSR  Act") and (D) for the  filing of the Proxy
Statement  and the Form 8-A and any other  reports or  documents  required to be
filed  under the  Exchange  Act, no material  consent  of, or filing  with,  any
Governmental  Authority  which has not been  obtained  or made is required to be
obtained or made by C-W for or in connection  with the execution and delivery of
this Agreement or the Recapitalization Agreement by C-W, and the consummation by
C-W of the transactions contemplated hereby or thereby.

           (4) Noncontravention. Except in the case of any consents that will be
obtained prior to the Distribution Date, the execution, delivery and performance
of this  Agreement and the  Recapitalization  Agreement by C-W does not, and the
consummation  by C-W of the  transactions  contemplated  hereby and thereby will
not, (A) violate any applicable  federal,  state or local statute,  law, rule or
regulation,   (B)  violate  any  provision  of  the  Restated   Certificate   of
Incorporation  or By-Laws of C-W, or (C) violate any  provision of, or result in
the  termination  or  acceleration  of, or entitle any party to  accelerate  any
obligation or  indebtedness  under,  any mortgage,  lease,  franchise,  license,
permit, agreement, instrument, law, order, arbitration award, judgment or decree
to which C-W or any of its  Subsidiaries  is a party or by which any of them are
bound,  except  for,  in the case of clause (C)  above,  such  violations  that,
individually  or in the  aggregate,  would not (I) result in a Material  Adverse
Effect  with  respect to C-W or (II)  reasonably  be expected to have a material
adverse effect on C-W's ability to consummate the  transactions  contemplated by
this Agreement or the Recapitalization Agreement.

           (5) Litigation. There are no actions or suits against C-W pending, or
to the knowledge of C-W, threatened which seek to, and C-W is not subject to any
judgments,   decrees  or  orders  which,  enjoin  or  rescind  the  transactions
contemplated  by this Agreement or the  Recapitalization  Agreement or otherwise
prevent C-W from  complying  with the terms and  provisions of this Agreement or
the Recapitalization Agreement.
<PAGE>
           (6) Change of Control  Adjustments.  Neither the Recapitalization nor
the Distribution or any of the other transactions  contemplated hereby or by the
Recapitalization  Agreement  will  (A)  constitute  a  "change  of  control"  or
otherwise  result in the increase or acceleration of any benefits,  including to
employees of C-W, under any agreement to which C-W or any of its Subsidiaries is
a party or by which it or any of its  Subsidiaries is bound or (B) result in any
adjustment  of the  number of  shares  subject  to,  or the terms of,  including
exercise price, any outstanding employee stock options of C-W.

           (7) Certain Transactions.  Except for transactions that are described
in Schedule  2.3(a)(vii),  neither C-W nor any other member of the C-W Group has
engaged,  nor will engage,  in any transaction or taken, or will take, any other
action,  or  engaged,  or  will  engage,  in any  negotiations  or  discussions,
involving  or relating to the  issuance of stock of C-W or options,  warrants or
other  rights to  acquire  stock of C-W  (other  than  compensatory  stock  plan
issuances).  None  of  the  transactions  or  other  actions,   negotiations  or
discussions  described  in  Schedule  2.3(a)(vii)  were  undertaken  by  C-W  in
contemplation of the Distribution or are related to the Distribution.

      (2) UNITRIN hereby represents and warrants to C-W as follows:

           (1)  Organization;  Good  Standing.  UNITRIN  is a  corporation  duly
incorporated,  validly existing and in good standing under the laws of the State
of Delaware and has all corporate power required to consummate the  transactions
contemplated hereby and by the Recapitalization Agreement.

           (2) Authorization. The execution, delivery and performance by UNITRIN
of this Agreement and the  Recapitalization  Agreement and the  consummation  by
UNITRIN  of the  transactions  contemplated  hereby and  thereby  have been duly
authorized by all necessary corporate action on the part of UNITRIN,  other than
the formal  declaration  of the  Distribution.  Each of this  Agreement  and the
Recapitalization  Agreement constitutes,  and each other agreement or instrument
executed and  delivered or to be executed and  delivered by UNITRIN  pursuant to
this Agreement or the  Recapitalization  Agreement will, upon such execution and
delivery,  constitute,  a  legal,  valid  and  binding  obligation  of  UNITRIN,
enforceable against UNITRIN in accordance with its terms, subject to the effects
of bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium and
other similar laws relating to or affecting  creditors'  rights  generally,  and
general equitable principles (whether considered in a proceeding in equity or at
law) and an implied covenant of good faith and fair dealing.

           (3)  Consents  and  Filings.   Except  (A)  for  the  filing  of  the
Certificate  of Merger in  connection  with the  Recapitalization  and any other
filings  required  to be made  with  the  Secretary  of  State  of the  State of
Delaware,  (B) as required  under the HSR Act and (C) any  reports or  documents
required to be filed under the Exchange  Act, no material  consent of, or filing
with, any Governmental Authority which has not been obtained or made is required
to be obtained or made by UNITRIN for or in  connection  with the  execution and
delivery of this Agreement or the Recapitalization Agreement by UNITRIN, and the
consummation by UNITRIN of the transactions contemplated hereby or thereby.
<PAGE>
           (4)  Noncontravention.  Except in the case of  consents  that will be
obtained on or prior to the  Distribution  Date,  the  execution,  delivery  and
performance of this Agreement and the Recapitalization Agreement by UNITRIN does
not, and the consummation by UNITRIN of the transactions contemplated hereby and
thereby will not, (A) violate any  applicable  federal,  state or local statute,
law,  rule or  regulation,  (B)  violate any  provision  of the  Certificate  of
Incorporation  or By-Laws of UNITRIN or (C) violate any  provision of, or result
in the  termination or  acceleration  of, or entitle any party to accelerate any
obligation or  indebtedness  under,  any mortgage,  lease,  franchise,  license,
permit, agreement, instrument, law, order, arbitration award, judgment or decree
to which UNITRIN or any of its  Subsidiaries  is a party or by which any of them
are bound,  except for, in the case of clause (C) above,  such violations  that,
individually  or in the  aggregate,  would not (I) result in a Material  Adverse
Effect with respect to UNITRIN or (II) reasonably be expected to have a material
adverse effect on UNITRIN's ability to consummate the transactions  contemplated
by this Agreement or the Recapitalization Agreement.

           (5)  Litigation.  There  are no  actions  or  suits  against  UNITRIN
pending,  or to the knowledge of UNITRIN,  threatened which seek to, and UNITRIN
is not subject to any judgments,  decrees or orders which, enjoin or rescind the
transactions contemplated by this Agreement or the Recapitalization Agreement or
otherwise  prevent  UNITRIN from complying with the terms and provisions of this
Agreement or the Recapitalization Agreement.

           (6) Plan or Series of Related  Transactions.  As of the date  hereof,
there is not,  and as of the  Distribution  Date,  there  will not be (except as
permitted pursuant to Section 4.3 hereof and disclosed to C-W in accordance with
the terms of  Section  4.3 and except for the  contemplated  Distribution),  any
agreement,  understanding,  arrangement  or substantial  negotiations  involving
UNITRIN  and  concerning  the  acquisition  by any  party or  parties  of C-W or
UNITRIN'S interest in C-W.

Section 2.4 Certain Post-Distribution Transactions

      (1) (i) C-W and  UNITRIN  shall  each  comply  with,  and shall  cause its
Subsidiaries  to comply with,  and  otherwise  not take,  and prevent any of its
Subsidiaries  from  taking,   during  the  relevant  time  period,   any  action
inconsistent with any representation made by such respective party to the IRS in
connection  with the request by UNITRIN  for the IRS Ruling,  and (ii) until two
years after the  Distribution  Date,  C-W will  maintain its status as a company
engaged in the  active  conduct  of a trade or  business,  as defined in Section
355(b) of the Code.

      (2)  C-W  agrees  that  (i)  prior  to the  two  year  anniversary  of the
Distribution  Date, it shall not (A) merge or consolidate with or into any other
corporation,  (B) liquidate or partially liquidate,  (C) sell or transfer all or
substantially all of its assets (within the meaning of Rev. Proc. 77-37,  1977-2
C.B.  568) in a single  transaction  or series of  transactions,  (D)  redeem or
otherwise  repurchase  any  C-W  stock  (other  than  as  described  in  Section
4.05(1)(b) of Rev. Proc.  96-30,  1996-1 C.B. 696), or (E) take any other action
or actions  (other than the adoption of a  stockholder  rights plan in customary
form)  (including  the issuance of options to acquire stock of C-W or securities
that are convertible  into stock of C-W) which in the aggregate (not taking into
account the Recapitalization) would have the effect of causing or permitting one
or more  persons to acquire  directly  or  indirectly  stock  representing  a 50
percent or greater  interest  (within the meaning of Section 355(e) of the Code)
in C-W, and (ii) prior to the five year anniversary of the Distribution Date, it
shall not initiate or support, or permit its stockholders to vote on, any action
that  would in any way alter the  ability  of the  holders of the Class B Common
Stock to (A) elect at least 80% of the members of the Board of  Directors of C-W
(to the  extent,  and in the manner set forth in, the  Restated  Certificate  of
Incorporation   and  By-Laws  of  C-W,  as  in  effect   immediately  after  the
<PAGE>
consummation of the  Recapitalization)  or (B) otherwise possess at least 80% of
the total combined voting power of all classes of C-W stock entitled to vote (as
described in Section 368(c) of the Code), unless prior to taking any such action
set forth in the  foregoing  clauses (i) and (ii),  at the  election of UNITRIN,
either C-W has obtained (and provided to UNITRIN) a written  opinion in form and
substance reasonably  acceptable to UNITRIN of a nationally  recognized law firm
reasonably  acceptable  to UNITRIN  and C-W,  or UNITRIN  has  obtained  (at the
expense of C-W) a supplemental  ruling from the IRS, that such action or actions
will not result in (1) the Distribution  failing to qualify under Section 355(a)
of the Code or (2) the C-W shares  failing to qualify as qualified  property for
purposes  of Section  355(c)(2)  of the Code by reason of Section  355(e) of the
Code.  UNITRIN agrees to cooperate with C-W in obtaining such opinion or, as the
case may be, to use all  reasonable  efforts in obtaining any such  supplemental
ruling, including, where appropriate, by providing written representations as to
factual events that transpired prior to the Distribution Date.

                                   ARTICLE 3
                                 INDEMNIFICATION

Section 3.1 Indemnification by C-W

      (1) C-W shall, to the fullest extent permitted by law,  indemnify,  defend
and hold  harmless  the  UNITRIN  Indemnitees  from and  against any and all C-W
Liabilities or third party allegations of C-W Liabilities.

      (2) C-W shall, to the fullest extent permitted by law,  indemnify,  defend
and hold  harmless (i) UNITRIN,  (ii) each member of the  consolidated  group of
corporations  of which  UNITRIN is the common  parent  corporation  (within  the
meaning  of  Section  1504 of the  Code)  and  (iii)  each  direct  or  indirect
Subsidiary  of UNITRIN  (each Person  referred to in clauses  (ii) and (iii),  a
"UNITRIN  Member")  from and against (A) any actual  Liability of UNITRIN or any
UNITRIN Member  (including any actual Liability for Taxes to the extent that, in
the absence of any Liability for Taxes resulting from a  determination  that the
Distribution  fails to qualify under Section  355(a) of the Code or that the C-W
shares fail to qualify as qualified  property for purposes of Section  355(c)(2)
of the Code by  reason of  Section  355(e) of the  Code,  such  Liability  would
otherwise  have been reduced or  eliminated by a net  operating  loss  deduction
(within  the  meaning of Section  172 of the Code and the  Treasury  regulations
thereunder)), or (B) any Established Liability of any stockholder of UNITRIN (it
<PAGE>
being  understood that any  Established  Liability of any stockholder of UNITRIN
shall be deemed to be an actual Liability of UNITRIN for purposes of determining
C-W's  indemnification   obligation   hereunder,   regardless  of  whether  such
stockholder actually has or pursues a valid claim for such Established Liability
against UNITRIN), in each case arising from any inaccuracy in, or failure by C-W
to comply with,  any  representation  or  undertaking  made by C-W to the IRS in
connection  with the  request by  UNITRIN  for the IRS  Ruling  (other  than any
representation or undertaking  (express or otherwise) contained in Part III.B of
UNITRIN's  letter  request  for the IRS  Ruling)  (referred  to herein as a "C-W
Failure" (it being understood that a Clause (d) Failure (as defined below) shall
not  constitute  a C-W  Failure  for  purposes of this  Article  3));  provided,
however, that, notwithstanding the foregoing, C-W shall not indemnify UNITRIN or
any UNITRIN  Member for any  Liability  or  Established  Liability  that results
solely from a UNITRIN  Failure (as defined in Section 3.2(b) hereof)  (except to
the extent that any such UNITRIN Failure is in respect of a representation based
in whole or in part upon  information  provided by C-W); and provided,  further,
that if any  Liability  or  Established  Liability  described in this clause (b)
arises as a result of both a C-W  Failure and a UNITRIN  failure,  and each such
failure is an independent cause of such Liability or Established Liability, then
C-W and UNITRIN shall allocate such Liability or Established  Liability  between
themselves in such proportion as is appropriate to reflect the relative fault of
C-W on the one hand and UNITRIN on the other with  respect to such  Liability or
Established Liability.

      (3) If C-W (or any of its  Subsidiaries)  fails to comply  with any of its
obligations  under  Section  2.4(a) or (b) above or takes any action or fails to
take any action, and such failure to comply, action or omission contributes to a
determination that the Distribution fails to qualify under Section 355(a) of the
Code or that the C-W shares fail to qualify as  qualified  property for purposes
of Section 355(c)(2) of the Code by reason of Section 355(e) of the Code (each a
"355  Failure"  (it  being  understood  that a  Clause  (d)  Failure  shall  not
constitute a 355 Failure for purposes of this  Article 3)),  then C-W shall,  to
the fullest extent permitted by law, indemnify, defend and hold harmless UNITRIN
and each  UNITRIN  Member from and against  (i) any and all  federal,  state and
local Taxes, including any interest, penalties or additions to Tax, imposed upon
or incurred by UNITRIN and any UNITRIN Member and (ii) any Established Liability
of any  stockholder  of  UNITRIN  (it  being  understood  that  any  Established
Liability  of any  stockholder  of UNITRIN  shall be deemed to be a UNITRIN  Tax
Liability (as defined below) for purposes of determining  C-W's  indemnification
obligation  hereunder,  regardless of whether such  stockholder  actually has or
pursues a valid claim for such Established  Liability against UNITRIN),  in each
case as a result of the failure of the  Distribution  to qualify  under  Section
355(a) of the Code or the application of Section 355(e) (any such Tax, interest,
penalty or addition to Tax,  together  with any such  Established  Liability,  a
"UNITRIN  Tax  Liability");   provided,   however,  that,   notwithstanding  the
foregoing, C-W shall not indemnify UNITRIN or any UNITRIN Member for any UNITRIN
Tax Liability that results solely from a UNITRIN  Failure  (except to the extent
that any such UNITRIN Failure is in respect of a  representation  based in whole
or in part upon information provided by C-W); and provided, further, that if any
UNITRIN Tax Liability  described in this clause (c) arises as a result of both a
355 Failure and a UNITRIN Failure, and each such failure is an independent cause
of such UNITRIN Tax Liability,  then C-W and UNITRIN shall allocate such UNITRIN
Tax Liability between themselves in such proportion as is appropriate to reflect
the relative  fault of C-W on the one hand and UNITRIN on the other with respect
to such UNITRIN Tax Liability.
<PAGE>
      (4) Notwithstanding any other provision of this Agreement:

           (1) C-W shall not be required to  indemnify  and hold  harmless,  and
shall have no liability  to,  UNITRIN or any UNITRIN  Member for any UNITRIN Tax
Liability  that would not have been  imposed or incurred but for the increase in
UNITRIN's  voting  power  with  respect  to  Common  Stock  as a  result  of the
Recapitalization; and

           (2)  Subject to the  proviso  hereto,  C-W shall be  entitled to rely
without  limitation  on any  representations  made  by  UNITRIN  in (A)  Section
2.3(b)(vi)  hereof or (B) its letter  request for the IRS Ruling with respect to
sales by UNITRIN  stockholders  of stock or securities of UNITRIN or C-W, and in
the event that any such  representations  are not true,  correct and complete in
all respects,  subject to the proviso hereto, C-W shall not indemnify UNITRIN or
any  UNITRIN  Member  for any  UNITRIN  Tax  Liability  that would not have been
incurred but for the failure of any such representations to be true, correct and
complete in all respects;  provided,  however, that C-W shall not be entitled to
rely on, and will not be relieved of its indemnification  obligations  hereunder
as  a  result  of  inaccuracies  or  failures  in,  or  incompleteness  of,  the
representations  made by UNITRIN in its letter  request  for the IRS Ruling with
respect to sales by UNITRIN  stockholders  of stock or  securities of UNITRIN or
C-W if, before taking or failing to take any action, C-W has actual knowledge of
any such inaccuracy, failure or incompleteness.

The exceptions to C-W's indemnification  obligations hereunder that are referred
to in  subclauses  (i) and (ii) of this  clause  (d) are  referred  to herein as
"Clause (d) Failures."

      (5) Any indemnity payment made by C-W pursuant to either clause (b) or (c)
above shall be made on an after-tax  basis,  based on the actual tax position of
UNITRIN, the UNITRIN Member or UNITRIN  stockholder,  as the case may be, in the
taxable  year such  indemnity  payment is received  and taking into  account the
deductibility  for federal income tax purposes of any state taxes. The aggregate
amount to be paid by C-W  pursuant  to its  indemnity  obligations  set forth in
clauses  (b),  (c),  (d),  (e) and (f) of this Section 3.1 shall not exceed $135
million.
<PAGE>
      (6) In the event that C-W and  UNITRIN  are jointly  liable  under  either
clause (b) or (c) above, C-W shall be required to indemnify and pay UNITRIN or a
UNITRIN  Member,  with  respect  to  an  Established   Liability  of  a  UNITRIN
stockholder,  for C-W's  proportionate  share of such Established  Liability (if
any) only if,  and to the  extent  that,  UNITRIN  shall  have  agreed  (in form
reasonably  satisfactory  to C-W) to pay such UNITRIN  stockholder for UNITRIN's
proportionate  share of such  Established  Liability.  In the event that UNITRIN
does not actually pay such UNITRIN stockholder for UNITRIN's proportionate share
of such Established  Liability,  then UNITRIN will reimburse C-W for any amounts
paid  by C-W to  UNITRIN  in  respect  of  C-W's  proportionate  share  of  such
Established Liability.

Section 3.2 Indemnification by UNITRIN

      (1) UNITRIN  shall,  to the fullest  extent  permitted by law,  indemnify,
defend  and hold  harmless  the C-W  Indemnitees  from and  against  any and all
UNITRIN Liabilities or third party allegations of UNITRIN Liabilities.

      (2) UNITRIN  shall,  to the fullest  extent  permitted by law,  indemnify,
defend  and hold  harmless  C-W and each  member  of the  consolidated  group of
corporations of which C-W is the common parent  corporation  (within the meaning
of Section  1504 of the Code) (each a C-W  Member")  from and against any actual
Liability of C-W or any C-W Member arising from any inaccuracy in, or failure by
UNITRIN to comply with, any representation or undertaking made by UNITRIN to the
IRS in connection  with the request by UNITRIN for the IRS Ruling or pursuant to
Section 2.3(b)(vi) hereof (referred to herein as a "UNITRIN Failure"); provided,
however, that, notwithstanding the foregoing, UNITRIN shall not indemnify C-W or
any C-W Member for any liability that results solely from a C-W Failure or a 355
Failure  (except  to the  extent  that  any  such  failure  is in  respect  of a
representation  based in whole or in part upon information provided by UNITRIN);
and provided, further, that if any Liability described in this clause (b) arises
as a result of both a UNITRIN  Failure and a C-W Failure  and/or a 355  Failure,
and each such failure is an independent  cause of such  Liability,  then UNITRIN
and C-W shall allocate such Liability  between  themselves in such proportion as
is  appropriate to reflect the relative fault of UNITRIN on the one hand and C-W
on the other with respect to such Liability.
<PAGE>
Section 3.3  Treatment  of  Payments.  UNITRIN  agrees to consider in good faith
treating  for federal  income tax purposes  any  indemnity  payments it receives
pursuant to this Agreement as payments to which Section 301 of the Code applies.

Section 3.4 Procedures for Indemnification. (a) If (i) a claim or demand is made
against C-W, any C-W Indemnitee, any C-W Member, UNITRIN, any UNITRIN Indemnitee
or any UNITRIN Member (each, an  "Indemnitee")  by any person who is not a party
to this  Agreement  (each a "Third Party Claim") as to which such  Indemnitee is
entitled to  indemnification  pursuant to this Agreement,  such Indemnitee shall
notify the party  which is or may be required  pursuant  to the terms  hereof to
make  such  indemnification  (the  "Indemnifying  Party")  in  writing,  and  in
reasonable detail, of the Third Party Claim promptly (and in any event within 15
business  days) after receipt by such  Indemnitee of written notice of the Third
Party Claim; provided, however, that failure to give such notification shall not
affect  the  indemnification   provided  hereunder  except  to  the  extent  the
Indemnifying  Party  shall  have been  actually  prejudiced  as a result of such
failure.  Thereafter,  the Indemnitee shall deliver to the  Indemnifying  Party,
promptly  (and in any event within five  business  days) after the  Indemnitee's
receipt  thereof,  copies of all notices and documents  (including court papers)
received by the Indemnitee relating to the Third Party Claim.

           If a Third Party Claim is made against an Indemnitee  with respect to
which a claim for indemnification is made pursuant to Section 3.1 or Section 3.2
hereof,  the Indemnifying  Party shall be entitled to participate in the defense
thereof  and, if it so chooses and  acknowledges  in writing its  obligation  to
indemnify the Indemnitee  therefor,  to assume the defense  thereof with counsel
selected by the Indemnifying Party; provided that such counsel is not reasonably
objected to by the Indemnitee.  Should the Indemnifying Party so elect to assume
the defense of a Third Party Claim, the Indemnifying Party shall, within 30 days
(or  sooner if the  nature of the Third  Party  Claim so  requires),  notify the
Indemnitee of its intent to do so, and the  Indemnifying  Party shall thereafter
not be  liable  to the  Indemnitee  for  legal  or other  expenses  subsequently
incurred by the  Indemnitee in connection  with the defense  thereof;  provided,
that such  Indemnitee  shall have the right to employ  counsel to represent such
Indemnitee if, in such Indemnitee's  reasonable judgment, a conflict of interest
between such  Indemnitee and such  Indemnifying  Party exists in respect of such
claim  which  would make  representation  of both such  parties  by one  counsel
inappropriate,  and in such  event  the  reasonable  fees and  expenses  of such
separate counsel shall be paid by such  Indemnifying  Party. If the Indemnifying
Party assumes such defense,  the Indemnitee  shall have the right to participate
in the  defense  thereof  and to employ  counsel,  subject to the proviso of the
preceding  sentence,  at its own expense,  separate from the counsel employed by
the Indemnifying  Party, it being  understood that the Indemnifying  Party shall
control such defense.  The  Indemnifying  Party shall be liable for the fees and
<PAGE>
expenses of counsel  employed by the  Indemnitee for any period during which the
Indemnifying Party has failed to assume the defense thereof. If the Indemnifying
Party so elects to assume  the  defense  of any Third  Party  Claim,  all of the
Indemnitees  shall  cooperate  with the  Indemnifying  Party in the  defense  or
prosecution thereof,  including by providing or causing to be provided,  records
and  witnesses as soon as  reasonably  practicable  after  receiving any request
therefor from or on behalf of the Indemnifying Party.

           Unless  otherwise  required  by law,  in no event will an  Indemnitee
admit any liability  with respect to, or settle,  compromise  or discharge,  any
Third Party Claim without the Indemnifying  Party's prior written consent (which
will not be unreasonably withheld); provided, however, that the Indemnitee shall
have the right to settle, compromise or discharge such Third Party Claim without
the  consent  of  the  Indemnifying   Party  if  the  Indemnitee   releases  the
Indemnifying Party from its indemnification obligation hereunder with respect to
such Third Party Claim and such  settlement,  compromise or discharge  would not
otherwise  adversely  affect the Indemnifying  Party. If the Indemnifying  Party
acknowledges  in writing  liability  for a Third  Party  Claim (as  between  the
Indemnifying  Party  and  the  Indemnitee),  the  Indemnifying  Party  shall  be
permitted  to enter  into,  and the  Indemnitee  will agree to, any  settlement,
compromise or discharge of a Third Party Claim that the  Indemnifying  Party may
recommend and that by its terms obligates the Indemnifying Party to pay the full
amount of the liability in  connection  with such Third Party Claim and releases
the  Indemnitee  completely in  connection  with such Third Party Claim and that
would not otherwise adversely affect the Indemnitee; provided, however, that the
Indemnitee may refuse to agree to any such  settlement,  compromise or discharge
if  the  Indemnitee  agrees  that  the  Indemnifying   Party's   indemnification
obligation  with  respect to such Third  Party Claim shall not exceed the amount
that would be required to be paid by or on behalf of the  Indemnifying  Party in
connection with such settlement,  compromise or discharge;  and provided further
that the Indemnifying Party shall not agree to any other settlement,  compromise
or  discharge  of a Third  Party  Claim not  described  above  without the prior
written consent of the Indemnitee, such consent not to be unreasonably withheld.
If an  Indemnifying  Party  elects  not to assume the  defense of a Third  Party
Claim,  or fails to notify an  Indemnitee  of its  election to do so as provided
herein, such Indemnitee may compromise, settle or defend such Third Party Claim.
In such case, the  Indemnifying  Party shall be responsible for the cost of such
compromise, settlement or defense.
<PAGE>
           Notwithstanding  the foregoing,  the Indemnifying  Party shall not be
entitled to assume the defense of any Third Party Claim (and shall be liable for
the  reasonable  fees and  expenses  of counsel  incurred by the  Indemnitee  in
defending  such Third  Party  Claim) if the Third  Party  Claim  seeks an order,
injunction  or other  equitable  relief or relief for other  than money  damages
against  the  Indemnitee  which  the  Indemnitee  reasonably  determines,  after
conferring  with its  counsel,  cannot be separated  from any related  claim for
money  damages.  If such  equitable  relief or other relief portion of the Third
Party Claim can be so separated  from that for money damages,  the  Indemnifying
Party shall be  entitled to assume the defense of the portion  relating to money
damages.

      (2) In the event any Tax Claim (as defined  below) is disposed of pursuant
to the provisions of this Section 3.4 or a Final  Determination has been made in
circumstances  that give rise to a Tax Liability or an Established  Liability on
the part of UNITRIN, any UNITRIN Member or any UNITRIN stockholder,  as the case
may be,  then C-W shall pay to UNITRIN  all  amounts in respect of any Tax Claim
within  twenty  (20)  business  days after such Tax Claim is disposed of or such
Final Determination has been made. For purposes of this Section 3.4(b), (i) "Tax
Claim" shall mean any notice of  deficiency,  proposed  adjustment,  adjustment,
assessment,  audit,  examination,  suit, dispute or other written claim which is
commenced  or  initiated  against  UNITRIN,  any  UNITRIN  Member or any UNITRIN
stockholder with respect to Taxes that are attributable to the  Recapitalization
or Distribution and which result from any act or acts of C-W or its Subsidiaries
described  in  Section  2.4  of  this  Agreement  or  the  breach  by C-W of any
representation  or  warranty  set  forth  in  this  Agreement  and  (ii)  "Final
Determination"  shall mean (1) the entry of a decision  of a court of  competent
jurisdiction at such time as an appeal may no longer be taken from such decision
or (2) the  execution  of a closing  agreement  or its  equivalent  between  the
particular taxpayer and the particular relevant taxing authority.

Section 3.5 Remedies  Not  Exclusive.  The  remedies  provided in this Article 3
shall be cumulative  and shall not preclude  assertion by any  Indemnitee of any
other  rights  or  the  seeking  of any  and  all  other  remedies  against  any
Indemnifying Party.

Section 3.6 Subrogation. In the event of payment by an Indemnifying Party to any
Indemnitee in connection  with any Third Party Claim,  such  Indemnifying  Party
shall be subrogated to and shall stand in the place of such Indemnitee as to any
events or  circumstances  in respect of which such Indemnitee may have any right
or claim relating to such Third Party Claim.  Such  Indemnitee  shall  cooperate
with such Indemnifying Party in a reasonable manner, and at the cost and expense
of such Indemnifying Party, in prosecuting any subrogated right or claim.
<PAGE>
Section 3.7 Indemnification Payments. Indemnification required by this Article 3
shall be made by periodic  payments of the amount  thereof  during the course of
the investigation or defense, as and when bills are received or loss, liability,
claim, damage or expense is incurred.

                                   ARTICLE 4
                                    COVENANTS

Section 4.4 Access to Information

      (2)  Other  than in  circumstances  in  which  indemnification  is  sought
pursuant  to  Article 3 (in which  event the  provisions  of such  Article  will
govern),  from and after the  Distribution  Date,  each of C-W and UNITRIN shall
afford to the other and its authorized accountants, counsel and other designated
representatives  reasonable  access during  normal  business  hours,  subject to
appropriate restrictions for classified, privileged or confidential information,
to  the  personnel,  properties,  books  and  records  of  such  party  and  its
Subsidiaries to the extent such access is reasonably required by the other party
in order to perform its obligations under this Agreement or the Recapitalization
Agreement  or to comply with such  party's  financial,  tax and other  reporting
obligations.

      (3) A party  providing  information  or access to information to the other
party under this Article 4 shall be entitled to receive from the recipient, upon
the presentation of invoices  therefor,  payments for such amounts,  relating to
supplies,  disbursements and other out-of-pocket  expenses, as may be reasonably
incurred in providing such information or access to information.

      (4) For a period of two years following the  Distribution  Date, C-W shall
provide to UNITRIN:  (i) promptly  following the date (the "Target Date"), as of
which there has been an aggregate  change in the  outstanding  equity or capital
structure of C-W (measured during the period beginning on the Distribution  Date
and ending on the Target Date and not taking into  account the  Recapitalization
or  transfers of shares by C-W  stockholders,  unless C-W  participates  in such
transfers  or such  transfers  are  reported on a Schedule  13D or 13G under the
Exchange Act) that accounts for at least 10% of the total outstanding  equity of
C-W as of the Distribution Date written notice of such change and (ii) after the
Target Date,  reasonably  detailed  reports  delivered  promptly  following  the
occurrence  of each  additional  change or changes  (if any) in the  outstanding
equity or capital  structure of C-W that,  individually or in the aggregate (not
taking  into  account  the  Recapitalization  or  transfers  of  shares  by  C-W
stockholders,  unless C-W  participates  in such transfers or such transfers are
reported on a Schedule 13D or 13G under the Exchange Act),  account for at least
5% of the total outstanding equity of C-W as of the Distribution Date.
<PAGE>
Section 4.5  Confidentiality.  Each of C-W and its  Subsidiaries and UNITRIN and
its  Subsidiaries  shall  keep,  and  shall  cause its  employees,  consultants,
advisors and agents to keep,  confidential all information  concerning the other
parties  in its  possession,  its  custody or under its  control  (except to the
extent that (a) such  information  is then in the public domain through no fault
of such  party,  (b) such  information  has been  lawfully  acquired  from other
sources by such party or (c) this Agreement or the Recapitalization Agreement or
any other  agreement  entered into pursuant hereto or thereto permits the use or
disclosure  of such  information)  and each party shall not  (without  the prior
written consent of the other) otherwise  release or disclose such information to
any other Person,  except such party's auditors and attorneys,  unless compelled
to disclose such  information  by judicial or  administrative  process or unless
such  disclosure  is  required  by law and such  party  has used all  reasonable
efforts  to  consult  with the other  affected  party or  parties  prior to such
disclosure,  and in such case shall  exercise all  reasonable  efforts to obtain
reliable   assurance  that  such  information  will  be  accorded   confidential
treatment.

Section 4.6 No Solicitation.

      (2) Subject to Sections  4.3(b) and 4.3(c),  each of UNITRIN and C-W agree
not  to  directly  or  indirectly,  through  any  officer,  director,  employee,
representative,  securityholder  or agent  solicit,  initiate or  encourage  any
inquiries, offers or proposals or any indication of interest or the commencement
of negotiations or continue any current negotiations or conduct any negotiations
or enter into any agreement or provide any nonpublic information regarding or in
connection  with any  proposal  for the  acquisition  by any third  party of any
shares of capital  stock of C-W from C-W or UNITRIN  (other  than  issuances  of
common stock by C-W pursuant to employee  stock plans in the ordinary  course of
business) or the acquisition of, or business  combination  with, C-W through any
other means including a merger or purchase of assets (an "Acquisition Proposal")
until the earlier to occur of the  termination  of this Agreement or the time at
which the Distribution is consummated;  provided,  however, that UNITRIN and C-W
may respond to any unsolicited inquiries or proposals solely to indicate that it
is bound by this  Section  4.3.  If either of C-W or UNITRIN  receives  any such
inquiry or proposal,  then C-W or UNITRIN,  as the case may be, shall inform the
other of the terms and  conditions,  if any, of such inquiry or proposal and the
identity of the Person  making the proposal  and shall keep such party  promptly
advised of all further communications relating to such inquiry or proposal.
<PAGE>
      (3) UNITRIN shall be relieved of its obligations  under Section 4.3(a) (in
the case of clause (iii) below, only to the extent set forth therein) if:

           (1) the Board of Directors  of C-W shall or shall  resolve to (A) not
recommend,  or withdraw its approval or recommendation of, the Recapitalization,
the  Recapitalization  Agreement,  this  Agreement  or any  of the  transactions
contemplated  thereby or hereby,  (B) modify any such approval or recommendation
in a manner  adverse  to  UNITRIN or (C)  approve,  recommend  or enter into any
agreement for any Acquisition Proposal;

           (2)  C-W  breaches  or  fails  to  comply  with  any of its  material
obligations  set forth in this Agreement or the  Recapitalization  Agreement and
fails to cure  such  breach or  failure  within 30 days  following  notice  from
UNITRIN; or

           (3) after receipt of a bona fide written  Acquisition  Proposal,  the
Board of Directors of UNITRIN in good faith determines,  after consultation with
its outside counsel,  that it would be inconsistent  with the Board's  fiduciary
duties to  stockholders  of UNITRIN not to commence  discussions or negotiations
with, or provide  nonpublic  information(other  than nonpublic  information with
respect  to C-W) to the  person  making  such  Acquisition  Proposal;  provided,
however,  that UNITRIN shall only be released from its obligations under Section
4.3(a)  pursuant to this Section  4.3(b)(iii)  with respect to such  Acquisition
Proposal.

           (4) C-W shall be relieved of its obligations under Section 4.3(a) (to
the extent  specifically set forth in this Section 4.3(c)) if after receipt of a
bona fide written  Acquisition  Proposal,  the Board of Directors of C-W in good
faith determines,  after consultation with its outside counsel, that it would be
inconsistent  with the Board's  fiduciary  duties to  stockholders of C-W not to
commence discussions or negotiations with, or provide nonpublic  information to,
the person making such Acquisition Proposal;  provided,  however, that C-W shall
only be released  from its  obligations  under Section  4.3(a)  pursuant to this
Section 4.3(c) with respect to such Acquisition Proposal.

Section 4.7 Certain Other  Agreements.  During the period commencing on the date
hereof and continuing  until the earlier of the termination of this Agreement or
the  consummation of the  Recapitalization,  UNITRIN hereby agrees that it shall
not, and that it shall cause each of its  Affiliates  not to,  without the prior
approval of the Board of Directors of C-W, directly or indirectly,  (a) make, or
in any way  participate in, any  "solicitation"  of "proxies" (as such terms are
defined or used in Regulation  14A under the Exchange Act) to consent or vote or
seek to advise or influence  any Person with respect to the voting of any shares
of Common Stock;  (b) form,  join or in any way  participate in any Group (other
than with respect to its Affiliates) with respect to any of the shares of Common
Stock;  (c)  otherwise  act,  either alone or in concert  with  others,  to seek
control of C-W,  including by submitting  any written  consent in furtherance of
the  foregoing or calling a special  meeting of C-W  stockholders;  (d) publicly
disclose  any  intention,  proposal,  plan or  arrangement  with  respect to any
foregoing;  or (e) make any  demand,  request  or  proposal  to amend,  waive or
terminate any provision of this Section 4.4.

Section 4.8 Public Announcements.  Each of UNITRIN and C-W agrees that no public
release or  announcement  concerning the  Recapitalization  or the  Distribution
shall be issued by either party without the prior  written  consent of the other
(which  shall  not  be  unreasonably  withheld),   except  as  such  release  or
announcement  may be required by law or the rules or  regulations  of any United
States  securities  exchange or the Nasdaq Stock Market, in which case the party
required to make the release or announcement shall use all reasonable efforts to
allow  each  other  party   reasonable  time  to  comment  on  each  release  or
announcement in advance of such issuance.
<PAGE>
Section 4.9 Required Consents.  Each of UNITRIN and C-W shall use all reasonable
efforts to obtain all of the  consents,  waivers or  authorizations  required in
connection  with the completion of the  Recapitalization  and the  Distribution,
including,  without  limitation,  (a) any material  governmental  approvals  and
consents  necessary to consummate the  Distribution  and the other  transactions
contemplated hereby and by the Recapitalization Agreement and (b) those consents
listed on Schedule 4.6 (collectively, the "Required Consents").

Section 4.10 Litigation Cooperation Each of UNITRIN and C-W shall use reasonable
efforts to make  available to the other party,  upon written  request and at the
expense of the other party,  its  officers,  directors,  employees and agents as
witnesses to the extent such Persons may  reasonably  be required in  connection
with any Action  arising  out of (a) the  business  of such other  party and its
predecessors,  if any,  in which the  requesting  party may from time to time be
involved;  provided  that  such  Action  does not  involve  a claim by either of
UNITRIN or C-W against the other or (b) the matters contained in Section 2.4 and
Article 3 hereof.

Section  4.11 Other  Matters.  Each of UNITRIN and C-W shall  negotiate  in good
faith to  execute  prior to the  Distribution  Date such  further  certificates,
agreements and other documents  which are reasonably  necessary to consummate or
implement  the  transactions  contemplated  hereby  and by the  Recapitalization
Agreement.

                                   ARTICLE 5
                                  MISCELLANEOUS

Section  5.4  Complete   Agreement;   Construction.   This   Agreement  and  the
Recapitalization  Agreement,  including  the Exhibits and  Schedules  hereto and
thereto,  shall constitute the entire agreement between the parties with respect
to the  subject  matter  hereof and  thereof and shall  supersede  all  previous
negotiations, commitments and writings with respect to such subject matter.

Section  5.5  Counterparts.  This  Agreement  may be  executed  in  one or  more
counterparts,  all of which shall be considered one and the same agreement,  and
shall become  effective when one or more such  counterparts  have been signed by
each of the parties and delivered to the other parties.

Section 5.6 Survival of  Agreements.  Except as otherwise  contemplated  by this
Agreement,  all  covenants,  representations,  warranties  and agreements of the
parties contained in this Agreement shall survive the Distribution Date.

Section 5.7 Expenses.  Except as otherwise set forth in this Agreement or in the
Recapitalization  Agreement,  all costs and expenses incurred in connection with
the preparation,  execution,  delivery and  implementation of this Agreement and
the Recapitalization  Agreement, and the Distribution and the other transactions
contemplated  hereby  and  thereby  shall be  charged  to and paid by the  party
incurring such costs and expenses.

Section 5.8 Notices. All notices and other communications  hereunder shall be in
writing,  shall be effective when received, and shall be duly given if delivered
by (a) hand delivery,  (b) U.S. mail, postage prepaid, for first class delivery,
(c) Federal Express or similar carrier,  freight prepaid,  for next business day
delivery,  or  (d)  electronic  transmission,   provided  that  confirmation  of
transmission and receipt is confirmed, to each party at the following respective
addresses  (or at such other  address for a party as shall be  specified by like
notice):
<PAGE>
To UNITRIN:

UNITRIN, Inc.
One East Wacker Drive
Chicago, Illinois 60601
Fax: (312) 661-4690
Attn:  Chief Financial Officer

with a copy to:

UNITRIN, Inc.
One East Wacker Drive
Chicago, Illinois 60601
Fax: (312) 661-4941
Attn:  General Counsel

and with a copy to:

Skadden, Arps, Slate, Meagher & Flom (Illinois)
333 West Wacker Drive
Suite 2100
Chicago, Illinois 60601
Fax: (312) 407-0411
Attn: Brian W. Duwe, Esq.

To C-W:

CURTISS-WRIGHT CORPORATION
1200 Wall Street West
Lyndhurst, New Jersey 07071
Fax: (201) 896-4021
Attn: General Counsel
<PAGE>
with a copy to:

Simpson Thacher & Bartlett
425 Lexington Avenue
New York, New York 10017
Fax: (212) 455-2502
Attn: Caroline B. Gottschalk, Esq.

Section 5.9 Waivers.  The failure of any party to require strict  performance by
any other party of any  provision in this  Agreement  will not waive or diminish
that party's right to demand strict performance  thereafter of that or any other
provision hereof.

Section 5.10 Amendments. This Agreement may not be modified or amended except by
an agreement in writing signed by each of the parties hereto.

Section 5.11 Assignments. This Agreement shall not be assignable, in whole or in
part,  directly or  indirectly,  by any party hereto  without the prior  written
consent  of the other  party  hereto,  and any  attempt  to assign any rights or
obligations arising under this Agreement without such consent shall be void.

Section 5.12  Successors and Assigns.  The provisions to this Agreement shall be
binding  upon,  inure to the  benefit of and be  enforceable  by the parties and
their respective successors and permitted assigns.

Section 5.13 Termination3.

      (2) Prior to the filing of the  Certificate of Merger,  this Agreement may
be terminated:

           (1) by mutual written consent of UNITRIN and C-W;

           (2) by either  UNITRIN or C-W if the other  party is in breach of any
of its  obligations  or  representations  and  warranties  herein  or under  the
Recapitalization  Agreement,  which breach  would  result in a Material  Adverse
Effect on such party after  giving  effect to the  Distribution,  and such other
party fails to cure such breach within 15 days following notice;

           (3) by C-W if,  following  receipt of an  Acquisition  Proposal,  the
Board of Directors of C-W is required by its fiduciary duties to stockholders of
C-W to terminate  this  Agreement or the  Recapitalization  Agreement and accept
such  Acquisition  Proposal;  provided  that in such  event  C-W  shall  pay the
reasonable  documented  out-of-pocket  fees and expenses  incurred by UNITRIN in
connection  with  this  Agreement,   the  Recapitalization   Agreement  and  the
transactions  contemplated  hereby and thereby in an  aggregate  amount of up to
$2.3  million,  but only to the  extent  that  UNITRIN  does not  agree  to,  or
otherwise vote in favor of, such Acquisition Proposal;
<PAGE>
           (4) by  UNITRIN if (A) the Board of  Directors  of C-W shall or shall
resolve to (I) not recommend, or withdraw its approval or recommendation of, the
Recapitalization,  the Recapitalization  Agreement, this Agreement or any of the
transactions  contemplated  thereby or hereby,  (II) modify any such approval or
recommendation  in a manner  adverse to UNITRIN or (III)  approve,  recommend or
enter into an agreement for any Acquisition  Proposal,  (B) the  stockholders of
C-W shall not  approve  the  Recapitalization  or (C)  following  receipt  of an
Acquisition  Proposal,  the Board of  Directors  of UNITRIN is  required  by its
fiduciary  duties to  stockholders  of UNITRIN to terminate  this  Agreement and
accept such  Acquisition  Proposal;  provided that (I) in the case of clause (A)
above, C-W shall pay the reasonable  documented  out-of-pocket fees and expenses
incurred by UNITRIN in  connection  with this  Agreement,  the  Recapitalization
Agreement and the  transactions  contemplated  hereby or thereby in an aggregate
amount of up to $2.3  million and (II) in the case of clause (C) above,  UNITRIN
shall pay the reasonable documented  out-of-pocket fees and expenses incurred by
C-W in connection with this Agreement,  the  Recapitalization  Agreement and the
transactions  contemplated  hereby and thereby in an  aggregate  amount of up to
$2.3 million; or

           (5)  by  either  UNITRIN  or  C-W  if  the  Recapitalization  is  not
consummated by June 30, 2001; provided that this right shall not be available to
any party that is in material breach of its obligations  under this Agreement or
the Recapitalization.

      (3) This Agreement shall terminate automatically without any action on the
part of C-W or UNITRIN in the event the Recapitalization Agreement is terminated
in accordance with its terms.

      (4)  Except as  specifically  set  forth in  clause  (a) above and for any
liability  in respect of any breach of this  Agreement  or the  Recapitalization
Agreement by either party,  no party shall have any liability of any kind to any
other  party  or any  other  person  as a  result  of the  termination  of  this
Agreement.  After  the  filing of the  Certificate  of  Merger  relating  to the
Recapitalization, this Agreement may not be terminated except by an agreement in
writing signed by both parties.
<PAGE>
Section  5.14  Subsidiaries.  Each  of the  parties  hereto  shall  cause  to be
performed, and hereby guarantees the performance of, all actions, agreements and
obligations  set forth herein to be performed by any Subsidiary of such party or
by any entity that is  contemplated to be a Subsidiary of such party on or after
the Distribution  Date (it being understood that C-W and its Subsidiaries  shall
not be considered a Subsidiary of UNITRIN).

Section 5.15 Third Party Beneficiaries. Except as provided in Article 3 relating
to  Indemnitees,  this Agreement is solely for the benefit of the parties hereto
and  should  not be deemed to confer  upon  third  parties  any  remedy,  claim,
liability,  reimbursement,  claim of  action  or other  right in excess of those
existing without reference to this Agreement.

Section  5.16 Title and  Headings.  Titles and  headings to sections  herein are
inserted for the convenience of reference only and are not intended to be a part
of or to affect the meaning or interpretation of this Agreement.

Section  5.17  Exhibits and  Schedules.  The  Exhibits  and  Schedules  shall be
construed  with and as an integral part of this  Agreement to the same extent as
if the same had been set forth verbatim herein.

Section 5.18 Governing Law. THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN
ACCORDANCE  WITH THE LAWS OF THE STATE OF DELAWARE  APPLICABLE TO CONTRACTS MADE
AND TO BE PERFORMED IN THE STATE OF DELAWARE.

Section 5.19 Consent to Jurisdiction. Each of the parties irrevocably submits to
the exclusive  jurisdiction  of any state court of the State of Delaware and the
United States  District Court for the District of Delaware,  for the purposes of
any suit,  action  or other  proceeding  arising  out of this  Agreement  or any
transaction  contemplated  hereby.  Each of the parties  agrees to commence  any
action,  suit or proceeding  relating hereto in such Delaware court. Each of the
parties further agrees that service of any process,  summons, notice or document
by U.S. registered mail to such party's respective address set forth above shall
be effective  service of process for any action,  suit or proceeding in Delaware
with respect to any matters to which it has  submitted to  jurisdiction  in this
Section 5.16.  Each of the parties  irrevocably and  unconditionally  waives any
objection to the laying of venue of any action,  suit or proceeding  arising out
of this Agreement or the transactions contemplated hereby in such Delaware court
and hereby  further  irrevocably  and  unconditionally  waives and agrees not to
<PAGE>
plead or  claim in any such  court  that  any such  action,  suit or  proceeding
brought in any such court has been brought in an inconvenient forum.

Section  5.20  Severability.  In the  event  any one or  more of the  provisions
contained in this Agreement should be held invalid,  illegal or unenforceable in
any  respect,  the  validity,  legality  and  enforceability  of  the  remaining
provisions  contained  herein and  therein  shall not in any way be  affected or
impaired   thereby;   provided,   however,   that   the   consummation   of  the
Recapitalization is conditioned upon and is not severable from the Distribution,
and that the  Distribution  is not  severable  from  the  Recapitalization.  The
parties  shall  endeavor in  good-faith  negotiations  to replace  the  invalid,
illegal or unenforceable  provisions with valid provisions,  the economic effect
of  which  comes  as  close  as  possible  to that of the  invalid,  illegal  or
unenforceable provisions.

IN WITNESS  WHEREOF,  the parties have caused this Agreement to be duly executed
as of the day and year first above written.

          UNITRIN, INC

          By:     Eric J. Draut
                  -------------
            Name: Eric J. Draut
            Title:Senior Vice President and
                  Chief Financial Officer

          CURTISS-WRIGHT CORPORATION

          By:     Martin R. Benante
                  -----------------
            Name: Martin R. Benante
            Title:Chairman and Chief Executive Officer

<PAGE>

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