Document:

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                                                                   EXHIBIT 10.12

DATE: 25 JANUARY 2005

                               SUBJECT TO CONTRACT

                                TRM (ATM) LIMITED

                                       AND

                   ALLIANCE & LEICESTER CASH SOLUTIONS LIMITED

                       AGREEMENT FOR THE PROVISION OF CASH

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CONTENTS

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<S>                                                                                                                <C>
1.    DEFINITIONS AND INTERPRETATION.............................................................................   4
2.    PROVISION OF SERVICES......................................................................................   6
3.    TITLE, RISK AND DECLARATION OF TRUST.......................................................................   8
4.    FEES.......................................................................................................   9
5.    DURATION...................................................................................................  10
6.    WARRANTIES.................................................................................................  10
7.    CONFIDENTIALITY............................................................................................  11
8.    INTELLECTUAL PROPERTY......................................................................................  12
9.    ENTIRE AGREEMENT...........................................................................................  12
10.      ASSIGNMENT..............................................................................................  12
11.      TERMINATION.............................................................................................  12
12.      FORCE MAJEURE...........................................................................................  13
13.      LIABILITY AND INSURANCE.................................................................................  14
14.      DISCREPANCIES...........................................................................................  15
15.      DISPUTES................................................................................................  16
16.      WAIVER..................................................................................................  16
17.      SEVERABILITY............................................................................................  16
18.      NOTICES.................................................................................................  16
19.      AUTHORITIES.............................................................................................  16
20.      THIRD PARTY RIGHTS......................................................................................  16
21.      APPLICABLE LAWS AND DATA PROTECTION.....................................................................  16
22.      AUDIT AND PROVISION OF INFORMATION......................................................................  17
23.      LAW.....................................................................................................  17
</TABLE>

<PAGE>

This Agreement is made on the 25 day of January 2005

BETWEEN

(1)   TRM ATM LIMITED (Company Number: 3782309) whose registered office is at
      Tower 42,Level 23,25 Broad Street, London EC2N 1HQ ("CUSTOMER"); and

(2)   ALLIANCE & LEICESTER CASH SOLUTIONS LIMITED (Company Number 4282945) whose
      registered office is at Carlton Park, Narborough, Leicester, LE19 0AL
      ("ALCS")

WHEREAS:-

1.    The Customer has a requirement for bank notes for its ATM business in the
      UK.

2.    ALCS has agreed to supply bank notes to the Customer in accordance with
      the terms and conditions of this Agreement.

NOW IT IS HEREBY AGREED AS FOLLOWS:

1.    DEFINITIONS AND INTERPRETATION

In this Agreement, unless the context otherwise requires, the following
expressions shall bear the meanings set out against them below:

<TABLE>
<S>                                 <C>
"ADDITIONAL SERVICES"               means any additional services agreed to be
                                    provided by ALCS as set out in Schedule 1.

"AFFILIATE"                         means any Subsidiary(s) or Holding
                                    Company(s) of that party and any other
                                    Subsidiary(s) of that/those Holding
                                    Company(s) at any time during the term of
                                    this Agreement.

"AGENT"                             means Securicor Cash Centres Limited or any
                                    other agent appointed by ALCS pursuant to
                                    Clause 2.3 of this Agreement for the
                                    purposes of providing all or part of the
                                    Services.

"ATM"                               means an automated teller machine owned by
                                    the Customer in respect of which Notes are
                                    supplied by ALCS subject to the terms and
                                    conditions of this Agreement.

"ATM USER"                          means any cardholder authorised to use an
                                    ATM.

"BANKING DAY"                       means a day (other than a Saturday or a
                                    Sunday) on which banks in London are open
                                    for general business.

"BASE RATE"                         means the base rate of Alliance & Leicester
                                    plc from time to time.

"CARRIER"                           means a cash in transit company employed to
                                    transport Cash between Nominated Cash
                                    Centres and the Customer approved by ALCS in
                                    accordance with Clause 10.3.

"CASH"                              means legal tender under the Currency and
                                    Bank Notes Act 1954; any banknotes which are
                                    legal tender in Scotland, Northern Ireland
                                    and the Channel Islands (including the Isle
                                    of Man, Jersey and Guernsey); and any bank
                                    notes in any denominations which are at any
                                    time legal tender in those jurisdictions.
 </TABLE>

<PAGE>
 <TABLE>
<S>                                 <C>
"CASH VALUE"                        means the face value of all Cash provided by
                                    ALCS to the Customer.

"CHAPS"                             means the Clearing Houses Automated Payment
                                    System.

"COMMENCEMENT DATE"                 means 1st February 2004

"CONFIDENTIAL INFORMATION"          means this Agreement, and all information
                                    and materials in whatever form relating to a
                                    party's business and customers (which in the
                                    case of ALCS includes its Agent's business
                                    and customers) obtained by a party as a
                                    result of entering into this Agreement,
                                    together with any other information or
                                    materials which by their nature are
                                    confidential.

"CUT-OFF TIME"                      means the time before which Cash must be
                                    collected from a Nominated Cash Centre by a
                                    Carrier, as notified to the Customer by ALCS
                                    from time to time.

"DAY OF ORDER"                      means each day on which the Customer
                                    generates an Order with ALCS for Notes under
                                    this Agreement.

"DISCREPANCY"                       means any irregularity in the amount of
                                    Notes that the Customer claims it has
                                    received from or provided to ALCS, and the
                                    amount of value of the Notes that ALCS
                                    believes it has provided or received from
                                    the Customer.

"FEES"                              means the fees to be paid by the Customer to
                                    ALCS under this Agreement as set out in
                                    Schedule 2 and this Agreement.

"FULLY SERVICED"                    means, in relation to an ATM, that ATM is
                                    stocked with Notes supplied solely by ALCS
                                    in accordance with the terms of this
                                    Agreement.

"HOLDING COMPANY"                   has the meaning given in Section 736 of the
                                    Companies Act 1985.

"INTELLECTUAL PROPERTY"             means all rights in copyright, patents,
                                    know-how, Confidential Information, database
                                    rights and designs (whether registered or
                                    unregistered) and any applications to
                                    register or rights to apply to register the
                                    same existing anywhere in the world.

"LIBOR"                             means the London Interbank Offer Rate for
                                    one month as published in the Financial
                                    Times on the day prior to the last Banking
                                    Day of each calendar month.

"LINK"                              means Link Interchange Network Limited.

"LINK OPERATING RULES"              means the operating rules of LINK in force
                                    from time to time.

"MERCHANT SERVICED"                 means, in relation to an ATM, that ATM is
                                    stocked with Notes supplied by a party other
                                    than ALCS.

"NCS"                               means the Bank of England's note circulation
                                    scheme, as amended from time to time, and
                                    any successor scheme.

"NOMINATED CASH CENTRE"             means those cash centres of ALCS or its
                                    Agents nominated by ALCS for use by the
                                    Customer for the purposes of this Agreement.

"NOTE"                              means Cash in the form of banknotes.

"ORDER"                             means each order from the Customer for the
                                    provision of Cash by ALCS.
</TABLE>

                                       5

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 <TABLE>
<S>                                 <C>
"PBNE"                              means plastic banknote envelopes (including
                                    envelopes, sachets, packets, containers,
                                    plastic or linen bags or otherwise) for
                                    provision of, or deposits of, Cash.

"PROCESSING AGENT"                  means ATMOS or such other person as may
                                    be approved by ALCS in accordance with
                                    Clause 10.3 from time to time.

"REQUIREMENTS DOCUMENT"             means the Requirements Document set out in
                                    Schedule 3 to this Agreement, as amended
                                    from time to time by written agreement
                                    between the parties.

"RPI"                               means the percentage increase, in each
                                    calendar year from the Commencement Date in
                                    the United Kingdom All Items Index published
                                    by the UK National Statistical Office (or by
                                    a successor Ministry, Department or other
                                    office) from time to time or any replacement
                                    index.

"SUBSIDIARY"                        has the meaning given in Section 736 of the
                                    Companies Act 1985.

"THE SERVICES"                      means the provision of Cash in accordance
                                    with this Agreement, together with any
                                    Additional Services set out in Schedule 1.

"VAT"                               means value-added tax under or pursuant to
                                    the EC Sixth VAT Directive 77/388/EEC or any
                                    subsequent legislation and any similar tax
                                    imposed in substitution for, or in addition
                                    to, such tax.
</TABLE>

1.1   Clause headings are for convenience only and shall not affect the
      interpretation of this Agreement.

1.2   All Schedules to this Agreement constitute an integral part of this
      Agreement.

1.3   Except where the context otherwise requires, words importing the singular
      include the plural and vice versa.

2.    PROVISION OF SERVICES

2.1   In consideration of the payment of the Fees, and subject to the Customer
      complying with its obligations under this Agreement, ALCS shall provide
      Notes to the Customer for use in ATMs in accordance with Orders and
      subject to the terms and conditions of this Agreement and the requirements
      of Schedule 1 and the Requirements Document. The Customer may not Order
      more than (pound)60,000 of Notes per ATM in any one Order without the
      prior written consent of ALCS

2.2   ALCS may provide Additional Services by agreement with the Customer, and
      such additional terms and conditions as the parties shall agree in writing
      shall apply in respect of such Additional Services.

2.3   ALCS shall be permitted to use third parties to act as agents on its
      behalf for the provision and receipt of Cash as required, and to provide
      any other services agreed to be provided by ALCS to the Customer under
      this Agreement.

2.4   The Customer shall ensure that all Ordered Cash is collected from
      Nominated Cash Centres each day before the relevant Cut-Off Time.

2.5   All Cash provided pursuant to this Agreement is to be collected by the
      Customer's Carrier from the Nominated Cash Centres at the Customer's sole
      cost.

2.6   All collections and deposits of Cash at Nominated Cash Centres made on
      behalf of the Customer shall be made only by Carriers approved by ALCS in
      accordance with Clause 10.3 who are accredited by the British Security
      Industry Association. The Customer shall provide ALCS with evidence of
      such accreditation to ALCS prior to employing a carrier in connection with
      this Agreement, and annually thereafter.

2.7   Orders for Cash shall be generated by the Customer in accordance with the
      procedures set out in Schedule 1 and the Requirements Document, and as
      notified by ALCS to the Customer from time to time.
<PAGE>

         2.8      The Customer shall arrange for collection by its Carrier of
                  Notes which have not been withdrawn from ATMs by ATM Users,
                  and the delivery of those Notes to Nominated Cash Centres, in
                  accordance with the timeframes and procedures agreed between
                  the parties from time to time and the provisions of the
                  Requirements Document.

         2.9      The Customer hereby undertakes to ensure that its Carrier:

                  2.9.1    is made aware of the responsibilities accepted by the
                           Customer and the liabilities imposed on the Customer
                           under this Agreement;

                  2.9.2    is, in respect of the Notes, comprehensively insured
                           for loss, theft, damage and other risks at all times
                           that Notes are in the Carrier's possession;

                  2.9.3    at all times keeps Notes in containers separate from
                           all other notes in its possession and ensures that
                           such containers are distinctly marked to enable the
                           Notes to be identified as having been supplied to the
                           Customer by ALCS;

                  2.9.4    ensures that all Notes collected from Nominated Cash
                           Centres are filled into ATMs within 7 Banking Days of
                           collection from ALCS;

                  2.9.5    ensures (when making deposits at Nominated Cash
                           Centres under Clause 2.9 that the deposit
                           documentation provided with each such deposit clearly
                           identifies the ATM from which the Notes/ATM cassettes
                           have been collected prior to their return to the
                           Nominated Cash Centre. If a deposit comprises
                           Notes/ATM cassettes removed from more than one ATM;
                           then the deposit documentation provided with such
                           deposit shall clearly identify which deposit of
                           Notes/identified ATM cassettes have been removed from
                           each individually identified ATM;

                  2.9.6    provides a monthly statement to ALCS detailing Notes
                           held in the name of ALCS, Notes to be used for ATM
                           replenishment and Notes awaiting return to ALCS, and
                           provides all necessary co-operation to enable ALCS to
                           carry out a monthly check to confirm the total value
                           of Notes held by each Carrier from time to time; and

                  2.9.7    is aware that beneficial ownership of the Notes is
                           vested at all times in ALCS.

         2.10     The Customer undertakes to ensure that its Processing Agent
                  carries out full reconciliation of ATMs (to include
                  calculation of Note withdrawals by ATM Users and Note
                  refilling by the Customer's Carrier) on a daily basis.

         2.11     The Customer shall give ALCS at least 10 days written notice
                  if the status of any ATM is to be changed from Fully Serviced
                  to Merchant Serviced so as to enable ALCS to terminate the
                  existing Regular Orders for that ATM. No notice may be served
                  until a Fully Serviced ATM has been serviced by ALCS under
                  this Agreement for at least 2 months. ALCS shall not provide
                  Notes for any Merchant Serviced ATMs.

         2.12     The Customer hereby undertakes that it shall, promptly upon
                  written request by ALCS, make such arrangements as are
                  reasonably required by ALCS to provide security to ALCS:

                  2.13.1   for the discharge by the Customer of its obligations
                           under this Agreement;

                  2.13.2   for the security of the Notes; and/or

                  2.13.3   the return of the Notes to ALCS.

                  2.13     The Customer shall procure settlement of the Cash
                           Value of the Notes in favour of ALCS in accordance
                           with the following procedure:

                  2.13.1   in respect of Notes withdrawn by ATM Users from ATMs,
                           by direct credit by LINK into a Bank of England
                           settlement account in the name of ALCS of an amount
                           equal to the Cash Value of Notes withdrawn in
                           accordance with the LINK Operating Rules; and

<PAGE>

                  2.13.2   in respect of Notes not withdrawn by ATM Users from
                           ATMs, by the return of Notes to a Nominated Cash
                           Centre in accordance with Clause 2.9.

         2.14     Discrepancies of Cash shall be dealt with in accordance with
                  Clause 14. Discrepancies in respect of Additional Services
                  shall be dealt with as agreed between the parties.

         2.15     The parties shall hold quarterly meetings at a location to be
                  agreed to review any relevant matters in relation to this
                  Agreement generally.

         2.16     Each party shall meet all their respective obligations as set
                  out in Schedules 1 and the Requirements Document within the
                  time frames set out in Schedule 1 and the Requirements
                  Document. In particular, the Customer shall ensure that its
                  Processing Agent and its Carrier(s) carry out their duties on
                  the Customers' behalf so as to meet all the Customers
                  obligations within those required time frames. In the event of
                  any conflict between Schedule 1 and the Requirements Document,
                  the provisions of the Requirements Document will prevail, but
                  only to the extent required to resolve such conflict.

         2.17     If the Customer wishes ALCS to provide Euro banknotes under
                  this Agreement then ALCS shall consider if this is practical
                  and the parties shall discuss the Customer's proposal. If ALCS
                  agrees to provide Euro banknotes then this Agreement shall be
                  amended in accordance with Clause 9.1 to incorporate any
                  additional or amended Fees and terms and conditions in respect
                  of the same.

         [2.18]   Deleted

         2.19     Re-banking of Notes not withdrawn by ATM Users from ATMs by
                  way of redelivery to a Nominated Cash Centre will be carried
                  out at ALCS' cost provided that the Cash Value of Notes to be
                  re-banked does not exceed 30% of the value of the Order(s)
                  relating to those particular Notes. If re-banking of Notes
                  exceeds the 30% limit on a regular basis then ALCS and the
                  Customer shall enter into good faith negotiations to revise
                  the ATM Management Fee set out in Schedule 2. The parties
                  shall endeavour to reach agreement on a new ATM Management Fee
                  within one month of commencement of discussions. If no
                  agreement is reached in that time, then ALCS may determine, in
                  its sole discretion, the amended ATM Management Fee applicable
                  from that date.

         3.       TITLE, RISK AND DECLARATION OF TRUST

         3.1      On delivery (by means of a release of Notes to the Customer's
                  Carrier by ALCS's Agent following an Order placed by the
                  Customer), risk in the Notes shall pass to the Customer. Risk
                  in the Notes shall remain with the Customer until the earlier
                  of:

                  3.1.1    the time that the Notes are withdrawn by an ATM User
                           from ATMs; or

                  3.1.2    the time that the Notes are re-delivered to, and
                           receipted by, ALCS.

                  The Customer shall be liable to ALCS for the Cash Value of
                  Notes during the whole of the period in which risk in the
                  Notes is vested in the Customer under this Clause 3.1.

         3.2      ALCS's Agent at each Nominated Cash Centre will obtain a dated
                  and time stamped receipt (prepared by the Agent) signed by the
                  Customer's Carrier as evidence of each delivery of Notes to
                  the Customer's Carrier.

         3.3      Beneficial ownership of the Notes shall at all times be
                  retained by ALCS until the Notes are withdrawn by ATM Users
                  from ATMs. Accordingly, the Customer hereby agrees that it
                  will hold the Notes on trust for ALCS absolutely from the time
                  that they are delivered by ALCS to the Carrier until the
                  earlier of:

                  3.2.1    the time that the Notes are withdrawn by an ATM user
                           from ATMs; or

                  3.2.2    the time that the Notes are re-delivered to, and
                           receipted by, ALCS.

         3.4      For the avoidance of doubt, ALCS shall continue to retain
                  beneficial ownership of any Notes collected from ATMs which
                  are to be returned to ALCS under Clause 2.9, and legal
                  ownership of those Notes shall revert to ALCS immediately upon
                  delivery of the Notes to ALCS.

<PAGE>

         3.5      At the time of withdrawal by an ATM User of the Notes from
                  ATMs, legal and beneficial title to the Notes shall be
                  transferred to the ATM User withdrawing the Notes, and at the
                  same time a claim ("a Repayment Claim") will arise in favour
                  of the Customer against the bank of that ATM User in an amount
                  equal to the Cash Value of the withdrawal made by that ATM
                  User. The Customer agrees that it shall hold all Repayment
                  Claims on trust in accordance with the Declaration of Trust
                  set out in Schedule 4.

         3.6      ALCS's Agent at each Nominated Cash Centre will issue a dated
                  and time-stamped receipt, to the Customer's Carrier as
                  evidence of acceptance of return of Notes by the Customer's
                  Carrier under Clause 2.9. Copies of these receipts will be
                  made available to Customer within 5 business days of request
                  to ALCS. Customer will receive credit for notes returned on
                  the date of return provided they are returned by 14.00hrs. A
                  retrospective interest payment will be credited to the
                  Customer's invoice on a monthly basis to reflect the value
                  dating of the notes returned.

         4.       FEES

         4.1      The Customer shall pay the Fees to ALCS for the provision of
                  the Services and any Additional Services.

         4.2      ALCS will use reasonable endeavours to send the Customer a
                  notice of the Fees payable for the previous month within 5
                  Banking Days of the month end.

         4.3      The Fees shall be payable for the duration of the Agreement,
                  monthly in arrears, on or following issue of the notice of
                  Fees payable for that month under Clause 4.2. Fees shall be
                  payable each month from such bank account as may be agreed
                  between the parties from time to time in accordance with the
                  direct debit to be provided by the Customer under Clause 4.10.

         4.4      All Fees are expressed to be exclusive of VAT. In the event
                  that VAT is, or becomes, payable in respect of the Services or
                  any part of them, a tax invoice shall be issued by ALCS and
                  all such VAT shall be paid to ALCS by the Customer in addition
                  to the Fees.

         4.5      In the event of any change in the rules or practice relating
                  to NCS, or any change to any other industry practice which has
                  or may have a material effect on the costs ALCS incurs in
                  providing the Customer with the Services, or VAT is or becomes
                  payable in respect of the services provided to ALCS by its
                  Agents pursuant to this Agreement, ALCS reserves the right to
                  vary the Fees to take account of any additional costs it or
                  its Agents may incur. If ALCS varies the Fees, ALCS will give
                  the Customer 30 days notice before any variation takes effect.

         4.6      If, for whatever reason, payment of the Fees is not received
                  by ALCS in accordance with Clause 4.3, then the Customer shall
                  pay interest to ALCS on the amount due at Alliance & Leicester
                  plc's base rate plus 3% from the date payment became due until
                  the date of payment.

         4.7      In the event that the actual annual Cash Order Volumes vary by
                  plus or minus 20% compared with the annual Cash Order Volumes
                  as agreed between the Customer and ALCS then ALCS shall have
                  the option to propose amended Fees to be payable under this
                  Agreement.

         4.8      If ALCS proposes amended Fees under Clause 4.7 above, then the
                  parties shall discuss the proposed Fees and if the new Fees
                  are agreed then the same shall apply from the date of such
                  agreement. If the parties have not agreed amended Fees within
                  1 month of ALCS's proposal under Clause 4.7, then the Customer
                  shall have the option within the next month to terminate this
                  Agreement on 6 months' written notice. If the Customer serves
                  notice under this Clause 4.8 then the existing Fees shall
                  apply during the notice period. If the Customer has not served
                  notice to terminate under this Clause 4.8 within 2 months of
                  ALCS's proposal under Clause 4.7, and no other agreement as to
                  amended Fees is made, then the amended Fees proposed by ALCS
                  shall apply from the date ALCS made the proposal.

         4.9      The Customer shall forthwith execute a direct debit in favour
                  of ALCS relating to the bank account agreed by the parties
                  under Clause 4.3. In the event of a Discrepancy as set out in
                  Clause 14, then ALCS shall have the right, , to debit or
                  credit the value of such Discrepancy from or to the Customers
                  account, as applicable, in accordance with Clause 14.4, and
                  provide the Customer with written confirmation of the source
                  of the Discrepancy.

<PAGE>

         4.10     In addition to the Fees, interest charges shall be payable by
                  the Customer to ALCS at Base Rate plus 5bpsin respect of the
                  Cash Value of Notes provided under this Agreement, and shall
                  be calculated on a daily basis from the day of collection of
                  Cash from a Nominated Cash Centre up to but not including the
                  date on which the full Cash Value of such Notes is received by
                  ALCS under Clause 2.14.

         5.       DURATION

         5.1      This Agreement shall be conditional upon the following
                  conditions having been fulfilled:

                  5.1.1    the Customer having provided to ALCS the following
                           documents:

                           5.1.1.1  a copy of its memorandum and articles of
                                    association;

                           5.1.1.2  a copy of its certificate of incorporation;
                                    and

                           5.1.1.3  a copy of a resolution of its board of
                                    directors approving the terms of this
                                    Agreement; authorising a specified person or
                                    persons to execute this Agreement on its
                                    behalf; and authorising such authorised
                                    person(s) to sign and/or despatch all other
                                    documents and notices to be signed and/or
                                    despatched by it under or in connection with
                                    this Agreement,

                  in each case certified by a director, officer or authorised
                  attorney of the Customer as being true and complete as at the
                  Commencement Date;

                  5.1.2    the Customer having provided to ALCS:

                           5.1.2.1  a signed Deed of Trust in the form set out
                                    in Schedule 4; [and]

                           5.1.2.2  a signed Irrevocable Undertaking (Customer)
                                    in the form set out in Schedule 5; [and]

                           5.1.2.3  [a duly executed parent company guarantee in
                                    a form specified by ALCS; and]

                  5.1.3    ALCS having provided to the Customer a signed
                           Irrevocable Undertaking (ALCS) in the form set out in
                           Schedule 6.

         5.2      Subject to fulfilment of all the conditions in Clause 5.1,
                  this Agreement shall commence on the Commencement Date and,
                  subject to earlier termination under Clause 11, shall be for
                  an initial period of 24 months, continuing thereafter until
                  terminated by either party on not less than 6 months' prior
                  written notice to the other party.

         6.       WARRANTIES

         6.1      Each party warrants that:

                  6.1.1    it is a company incorporated under the laws of
                           England and Wales;

                  6.1.2    it has full capacity and authority to enter into and
                           perform this Agreement; and that (in the case of the
                           Customer) the signatory(s) to this Agreement and the
                           direct debit under Clause 4.10 have full authority on
                           behalf of the Customer to authorise debits from, and
                           credits to, the Customers bank account agreed under
                           Clause 4.3 in accordance with this Agreement;

                  6.1.3    it has taken all necessary action to authorise the
                           entry into, and performance and delivery of, this
                           Agreement;

                  6.1.4    all governmental and other consents necessary or
                           desirable for entering into this Agreement have been
                           obtained;

                  6.1.5    this Agreement constitutes its legal , valid and
                           binding obligations, enforceable in accordance with
                           their terms, subject (in the event of insolvency or
                           analogous proceedings) to applicable laws relating to
                           creditors rights and to limitations on the
                           availability of remedies as a result of equitable
                           considerations;

<PAGE>

                  6.1.6    the entry into, and performance of, this Agreement
                           does not and will not conflict with:

                           6.1.6.1  any applicable law or regulation of England
                                    and Wales or any applicable official or
                                    judicial order;

                           6.1.6.2  any material agreement or document to which
                                    it is a party or which is binding upon it or
                                    any of its assets; or

                           6.1.6.3  any provisions of its constitutional
                                    documents; and

                  6.1.7    it will perform its obligations under this Agreement
                           using reasonable care and skill.

         6.2      The Customer warrants to ALCS that:

                  6.2.1    upon termination for any reason, or expiry, of the
                           Agreement the Customer shall provide ALCS with, and
                           ALCS shall have, unhindered access to the Notes,
                           including the right to retrieve Notes (whether in
                           transit, at any depot belonging to any Carrier or in
                           ATMs)

                  6.2.2    at the date of this Agreement neither the Customer
                           nor any Affiliate of the Customer are in breach of
                           any financial obligation under any banking or credit
                           facility granted to the Customer or any Affiliate of
                           the Customer by a bank or other financial
                           institution;

                  6.2.3    the Customer will notify ALCS by telephone (to be
                           confirmed in writing) within 24 hours of the Customer
                           or any Affiliate of the Customer breaching any
                           financial obligation under any banking or credit
                           facility granted to the Customer or any Affiliate of
                           the Customer by a bank or other financial
                           institution. Such notification shall detail the
                           financial obligation breached, the steps being taken
                           to remedy such breach by the Customer or any
                           Affiliate of the Customer, and the time period by
                           which the Customer or the relevant Affiliate of the
                           Customer must remedy the breach under the relevant
                           banking or credit facility ("the Remedy Period").

         6.3      If ALCS has reasonable grounds to believe that the Customer
                  and/or any Affiliate of the Customer may be in breach of any
                  financial obligation under any banking or credit facility
                  granted to the Customer or any Affiliate of the Customer by a
                  bank or other financial institution, and no breach has been
                  notified under Clause 6.2.3; then ALCS shall have the right to
                  request in writing that the Customer and/or any Affiliate of
                  the Customer unconditionally confirm in writing (with
                  supporting documentary evidence) within 3 Banking Days of the
                  request being made that no such breach exists. If the Customer
                  does not provide such unconditional confirmation within 3
                  Banking Days, or ALCS has reasonable grounds for considering
                  that the supporting documentation provided by the Customer
                  and/or any Affiliate of the Customer does not provide
                  reasonable confirmation that no such breach exists, then ALCS
                  shall have the right to request in writing that the Customer
                  and/or the relevant Affiliate of the Customer provide an
                  auditors certificate (at the Customers cost) unconditionally
                  confirming that no such breach exists. If the Customer and/or
                  the relevant Affiliate of the Customer do not provide an
                  auditors certificate in the required form within 7 Banking
                  Days of the request being made by ALCS, then the Customer
                  and/or the relevant Affiliate of the Customer shall be deemed
                  to be in actual breach of a relevant financial obligation for
                  the purposes of Clause 11.3.2.

7.       CONFIDENTIALITY

7.1      Subject to Clause 21.2, each party shall keep all Confidential
         Information in strictest confidence, and shall not without the prior
         approval of the other party use such Confidential Information for any
         purposes other than for the purpose of fulfilling its obligations under
         this Agreement. A party shall not disclose Confidential Information to
         any person other than its officers, employees, Carriers, Agents and
         Processing Agents without the prior written consent of the other party.
         Each party shall ensure that its officers, employees, Carriers, Agents
         and Processing Agents are aware of the need for compliance with the
         provisions of this Clause 7, and any disclosure to such officers,
         employees, Carriers, Agents and Processing Agents shall be solely for
         the purposes of this Agreement.

7.2      The foregoing shall not apply to Confidential Information which:

         7.2.1    is already known by the other party;

         7.2.2    is or becomes within the public domain other than by reason of
                  a breach by such party of this Clause 7;

<PAGE>

         7.2.3    is properly received by the other party who is not bound by
                  any obligation of confidence;

         7.2.4    is required to be disclosed by any law or governmental or
                  regulatory authority or agency or by any order of any court of
                  competent jurisdiction;

         7.2.5    is required to be disclosed by the regulations of any
                  recognised stock exchange.

8.       INTELLECTUAL PROPERTY

8.1      Neither party may use or reproduce in any manner or in any form any
         Intellectual Property belonging to the other party or to the Agent
         without the prior written consent of that party. If any such consent is
         given, it may be withdrawn at any time by giving written notice, in
         which case the party receiving the notice shall immediately withdraw
         from use any items incorporating the Intellectual Property.

8.2      Neither party shall refer to this Agreement, the Services, or to the
         other party in any publicity, advertisement, promotion or other
         disclosure without the prior written consent of the other party, such
         consent not to be unreasonably withheld or delayed.

                              9. ENTIRE AGREEMENT

9.1      This Agreement, including the Schedules hereto, constitutes the entire
         understanding between ALCS and the Customer and supersedes all previous
         agreements, undertakings and non-fraudulent representations relating to
         its subject matter. No variation or amendment of this Agreement shall
         be effective unless made in writing and signed as an agreed amendment.

10.      ASSIGNMENT

10.1     This Agreement is personal to the Customer and the Customer shall not
         be entitled to sub-contract, assign or transfer all or any of its
         rights, benefits and/or obligations under this Agreement without the
         prior written consent of ALCS. For the avoidance of doubt, if any
         proposed assignee is a company or legal entity whose registered office
         or principal place of business is not situated in the United Kingdom,
         then this shall be reasonable grounds to withhold consent.

10.2     ALCS may assign or transfer all or any of its rights and/or obligations
         under this Agreement at any time upon notice in writing to the
         Customer, and the Customer shall enter into such documents as ALCS may
         stipulate in order to effect such transfer or assignment.

10.3     The Customer may not sub-contract its rights or responsibilities under
         this Agreement, or materially amend the terms of any permitted
         sub-contract related to or in connection with this Agreement, without
         the prior written consent of ALCS. It shall be a condition of ALCS
         granting any consent to the Customer to employ a Carrier, that ALCS
         shall have the right to inspect and approve the contract between the
         Customer and the Carrier to enable ALCS to satisfy itself that the
         Customer is meeting its obligations under this Agreement, that ALCS's
         title to Cash is acknowledged, and that the Carrier's security and
         operational procedures meet ALCS requirements.

11.      TERMINATION

11.1     This Agreement may be terminated as follows:

         11.1.1   by either party forthwith by notice in writing to the other
                  party if the other party is in material breach of this
                  Agreement and fails to remedy the breach within 30 days of
                  notice of the breach being given by the non-defaulting party.
                  For the avoidance of doubt, any material breach of the
                  Requirements Document shall be a breach of this Agreement;

         11.1.2   by either party forthwith by notice in writing to the other if
                  the other party (or its parent or holding company) shall be in
                  breach of any financial obligation under any banking or credit
                  facility granted to it by a bank or financial institution,
                  shall become insolvent, shall convene a meeting of creditors,
                  or if a proposal shall be made for a voluntary arrangement or
                  any other composition, scheme or arrangement with (or
                  assignment for the benefit of) its creditors, or if it shall
                  be unable (or is deemed by law to be unable) to pay its debts,
                  or if a trustee, receiver, administrative receiver, liquidator
                  or similar officer is appointed in respect of all or any part
                  of its business or assets or if a petition is presented or a
                  meeting is convened for the purpose of consideration of a
                  resolution or

<PAGE>

                  other steps are taken for the winding up or dissolution of the
                  other party or for the making of an administration order
                  (other than for the purposes of a reconstruction or
                  amalgamation);

         11.1.3   by either party as provided for in Clauses 5.2 or 5.3;

         11.1.4   by ALCS forthwith by notice in writing if ALCS has reasonable
                  grounds to believe the Services are being used for fraudulent
                  or money laundering purposes;

         11.1.5   by the Customer as provided for in Clause 4.8.

         11.1.6   by ALCS forthwith by notice in writing if at any time there
                  occurs any event or circumstance which has had or is
                  reasonably likely to have a material adverse effect on the
                  ability of the Customer to meet any if its obligations under
                  this Agreement

11.2     This Agreement may be terminated immediately by ALCS upon written
         notice to the Customer in the event that ownership or control of the
         Customer is materially altered whether by change of ownership of stock
         or otherwise, where in the reasonable opinion of ALCS such change in
         ownership is detrimental to ALCS. For the purposes of this Clause 11.2,
         "control" means the ability to direct the affairs of another whether by
         virtue of ownership of shares, contract or otherwise.

11.3     This Agreement may be terminated by ALCS immediately upon written
         notice to the Customer if, at the time of service of the notice by
         ALCS, the Customer and/or any Affiliate of the Customer are in actual
         breach of any financial obligation under any banking or credit facility
         granted to the Customer or any Affiliate of the Customer and:

         11.3.1   such breach has not been notified to ALCS by the Customer in
                  accordance with Clause 6.2.3; or

         11.3.2   ALCS has not been provided, within 5 Banking Days of a request
                  being made by ALCS under Clause 6.3, with an auditors
                  certificate unconditionally confirming that the Customer
                  and/or the relevant Affiliate of the Customer are not in
                  breach of any financial obligation under any banking or credit
                  facility granted to the Customer or the relevant Affiliate of
                  the Customer by a bank or other financial institution; or

         11.3.3   such breach has been notified by the Customer to ALCS under
                  Clause 6.2.3 and the Remedy Period (as defined in Clause
                  6.2.3) under that notification has expired without remedy of
                  the breach; or

         11.3.4   such breach has been notified by the Customer to ALCS and
                  three calendar months have expired without remedy of the
                  breach. For the avoidance of doubt, the right to terminate
                  granted under this Clause 11.3.4 shall apply irrespective of
                  whether any Remedy Period for that breach has expired.

[11.4]   (deleted)

11.5     Upon termination for any reason, or expiry, of this Agreement, the
         Customer shall forthwith comply with its obligations under Clause 6.2.1
         and shall in addition procure that the Carrier allows ALCS immediate
         and unhindered access to the Notes (including the right to physical
         possession of the Notes). ALCS will provide the Customer with written
         confirmation of the amount of Notes retrieved pursuant to this
         provision.

11.6     Any termination of this Agreement pursuant to this Clause 11 shall be
         without prejudice to any other rights or remedies either party may be
         entitled to hereunder or at law and shall not affect any accrued rights
         or liabilities of either party.

11.7     The rights and obligations of the parties under Clauses 2.2, 2.5, 2.10,
         2.11, 2.14, 2.20, 3, 4, 6, 7, (for 5 years from termination), 8, 11,
         12, 13, 14, 19, 20, and 22.1 shall survive any termination of this
         Agreement.

12.      FORCE MAJEURE

12.1     ALCS shall not be responsible for delay or failure to perform the
         Services or any part of the Services due to causes beyond its
         reasonable control, including (as examples but not by way of
         limitation) force majeure, act of God or governmental act, fire,
         explosion, accident, civil commotion, war (whether declared or not),

<PAGE>

         terrorist attack, industrial dispute (whether at ALCS, the Agent or any
         third party) or the failure (directly or indirectly) of any machine,
         data processing system or transmission link ("an event of Force
         Majeure").

12.2     ALCS agrees to give notice forthwith to the Customer upon becoming
         aware of an event of Force Majeure and to use all reasonable endeavours
         to mitigate the effect of any event of Force Majeure upon the
         performance of this Agreement.

12.3     The provisions of this Clause 12 shall not apply in respect of the
         obligations under Clauses 2.9, 2.10, 2.11, 2.14, 3, 4, 6.2.3, 6.3,
         7,10.3, 13.5 and 22.

13.      LIABILITY AND INSURANCE

13.1     Neither party shall be liable to the other party for any indirect or
         consequential loss (including any loss of profits, revenue, anticipated
         savings, goodwill, data, contracts or any loss or damage suffered by a
         party as a result of any claims brought by a third party) which may
         arise in connection with this Agreement or the Services, even if such
         loss was reasonably foreseeable or the defaulting party had been
         advised of the possibility of the other party incurring the same.

13.2     ALCS shall not be liable to the Customer for any loss suffered as a
         result of the misuse of the Services by the Customer.

13.3     ALCS's aggregate liability to the Customer under or in connection with
         this Agreement (whether in contract, tort or howsoever arising) in
         respect of one cause of action or any series of events arising from the
         same cause of action shall not exceed the amount of Fees paid by the
         Customer to ALCS in the 12 months prior to the cause of action arising.

13.4     Notwithstanding anything to the contrary contained in this Agreement,
         neither party excludes or limits liability for fraud or for death or
         personal injury resulting from a negligent act or omission of its
         employees, agents or subcontractors.

13.5.1   The Customer shall maintain money insurance cover ("the Insurance") in
         respect of loss of Notes in the Customers ATMs in a sum not less than
         $1,000,000, subject to a reasonable excess/deduction of no more than
         $15,000 per claim; in addition the Customer shall maintain fidelity
         insurance cover in a sum not less that $500,000; and shall name ALCS on
         any relevant insurance policy ("the Policy") as an additional insured
         party. All monies recovered by the Customer under the Policy in
         accordance with this Clause 13.5 shall be for the benefit of ALCS. For
         the avoidance of doubt, the Customer also confirms that in relation to
         any insurance claim made by its Carrier in respect of the Notes, the
         proceeds of which are payable to the Customer (either directly or by
         the Carrier), the Customer shall hold such proceeds upon trust for ALCS
         absolutely and shall promptly pay such proceeds to ALCS to the extent
         such amount is outstanding to ALCS.

13.5.2   The Customer shall accept and self-insure such of its liabilities under
         this Agreement as are not covered under the insurance to be maintained
         under Clause 13..5.1 including, for the avoidance of doubt:

         13.5.2.1 liability for cash from the point at which the Customer or its
                  nominated Carrier crosses the threshold of the premises at
                  which the ATM site is situated (including the period of
                  replenishment of the ATM's and decashing of ATM's) until the
                  Customer or its nominated carrier exits by re-crossing the
                  threshold of the premises at which the ATM site is situated:
                  and

         13.5.2.2 any liability in excess of the minimum insured amount under
                  Clause 13.5.1: and

         13.5.2.3 any liability not covered by, or excluded from a claim
                  against, the insurance cover required under Clause 13.5.1
                  including liability for the cash while in transit to and from
                  the Nominated Cash Centre, and excess/deductible under the
                  insurance policy.

13.6     Where so required by ALCS, the Customer shall produce the Policy for
         inspection by ALCS, together with evidence of payment of premiums due
         for the Policy. The Customer shall ensure that in the event that the
         Insurance is about to be cancelled or will lapse for any reason, the
         Customers insurers and/or insurance brokers will notify ALCS
         immediately to take whatever action is necessary to prevent such
         cancellation or lapse.

<PAGE>

13.7     In the event that the Customer fails to comply with Clauses 13.5 or
         13.6 (which shall be a material breach of this Agreement) then without
         prejudice to ALCS' rights against the Customer for such breach, ALCS
         reserves the right to insure against any of the obligations referred to
         in Clause 13.5 and to recover the premiums payable in respect of such
         insurance from the Customer.

13.8     Save as expressly set out in this Agreement, ALCS gives no warranties,
         guarantees or undertakings concerning its performance of the Services
         and any Additional Services, and the Customer hereby expressly agrees
         and acknowledges that all other conditions, terms, undertakings and
         warranties, express, implied or statutory in respect of the Services
         and the Additional Services (including but not limited to those as to
         quality, performance, suitability or fitness for purpose) are hereby
         excluded.

14.      DISCREPANCIES

14.1     Missing PBNE's

         14.1.1   Upon receipt of Cash by the Carrier immediately following its
                  collection from a Nominated Cash Centre, the Carrier shall
                  (under dual control) undertake an initial bulk check to ensure
                  that the appropriate number of PBNEs of each relevant Note
                  denomination are present to meet the individual ATM
                  replenishments as advised by the customer. This information
                  will be shown on the Cash breakdown sheet delivered with the
                  Cash. If any PBNEs are missing, or if there is an excess, the
                  Customer should immediately advise ALCS Discrepancy Duty by
                  telephone on 0151 966 2182.

14.2     Cash Discrepancies

         14.2.1   A full Note count is to be undertaken by the Carrier
                  immediately following collection from a Nominated Cash Centre
                  of the Cash from ALCS to ensure sufficient value of notes per
                  denomination are present to meet the ATM replenishments as
                  advised by the Customer. Any discrepancies (shortages or
                  excesses) should be immediately reported by telephone to ALCS
                  Discrepancy Duty on 0151 966 2182. If the carrier elects not
                  to undertake a full Note count, the Customer accepts full
                  responsibility for the stated amount of Notes collected.

         14.2.2   ATM Discrepancies

         14.2.1   Each ATM shall be emptied at least once each month (or such
                  other interval as may be agreed between the parties from time
                  to time for each ATM) and the Notes removed from each of the
                  ATM returned to a Nominated Cash Centre by the Customer's
                  Carrier. Notes must be re-banked to the Nominated Cash Centre
                  no later than the morning of the third Banking Day following
                  removal of the Notes from the ATM by the Customer's Carrier.
                  All re-banked Notes shall be fully sorted and placed into
                  PBNE's provided by ALCS in accordance with the denominational
                  specification on the bag prior to re-banking. All PBNEs must
                  be marked with a Customer specific stamp and identify the ATM
                  from which they have been removed, allowing an audit trail to
                  be developed.

         14.2.3   ALCS shall have the right after 15 Banking Days of re-banking
                  of any Notes, to claim against the Customer in respect of any
                  Discrepancy shortage in the re-banked PBNEs.

14.3     Settlement

         14.3.1   ALCS will investigate all Discrepancies and liase directly
                  with the Carrier if appropriate. At all times ALCS will ensure
                  the Customer is kept appraised of ongoing investigations.

         14.3.2   Settlement in respect of Discrepancies, once substantiated by
                  ALCS, will take place monthly by credit to or debit from, as
                  applicable, the Customers bank account agreed under Clause 4.3
                  of this Agreement.

         14.3.3   Where a forgery is found in Cash provided under this
                  Agreement, the Customer shall, within 3 Banking Days of
                  collection of the Cash from ALCS, forward to ALCS at the
                  address below the forged note together with confirmation of
                  the Discrepancy value and the relevant PBNE/bag and Note
                  wrapper. Settlement of the Discrepancy value of the forgery
                  will be made by credit to the Customers bank account.

<PAGE>

14.4     ALCS address for Discrepancies is:

         Cash Development Branch, Discrepancy Duty, Alliance & Leicester Cash
         Solutions, 7 East ,Bridle Road, Bootle, GIR OAA

15.      DISPUTES

15.1     If any dispute or difference arises in connection with this Agreement,
         the parties shall meet in good faith with a view to resolving the
         dispute. If the parties are unable to resolve the dispute within ten
         Banking Days, then the parties may refer the matter to their senior
         management representatives for resolution.

15.2     If the senior management representatives are unable to resolve the
         dispute within a further ten Banking Days then the parties may, by
         agreement, refer the matter to mediation in accordance with the Centre
         for Dispute Resolution (CEDR) Model Mediation Procedure, the costs of
         which shall be borne jointly by the parties.

16.      WAIVER

16.1     No waiver by one party of any breach of this Agreement by the other
         party shall be construed as a waiver of any subsequent breach of the
         same or any other provision of this Agreement. No delay or indulgence
         by one party in enforcing the provisions of this Agreement shall
         prejudice or restrict the rights of that party.

17.      SEVERABILITY

17.1     Each of the provisions of this Agreement are separate and severable and
         enforceable accordingly and if, at any time, any provision is judged by
         any court in a competent jurisdiction to be void or unenforceable, the
         validity, legality and enforceability of the remaining provisions
         thereof shall not, in any way, be affected or impaired thereby.

18.      NOTICES

18.1     Any notice or other document to be given under this Agreement shall be
         in writing and shall be deemed to have been duly given if delivered by
         hand at, or sent by registered post to, a party at the address for such
         party set out below, or such other address as the party may from time
         to time designate by written notice to the other.

18.2     Notices to the Customer shall be sent to the Company Secretary at the
         Customer's registered office. Notices to ALCS shall be sent to Director
         of Cash Development, ALCS, Bridle Road, Bootle, G1R 0AA.

19.      AUTHORITIES

19.1     ALCS may set off monies due to ALCS under this Agreement against any
         sum which is or may become due to the Customer from ALCS or any other
         company in the Alliance & Leicester plc Group of companies, whether
         under this Agreement or otherwise.

19.1     The Customer hereby grants to ALCS during the period of this Agreement,
         irrevocable authority to credit monies to, and debit monies from, the
         Customers bank account as agreed under Clause 4.3 in accordance with
         the provisions of this Agreement.

20.      THIRD PARTY RIGHTS

20.1     This Agreement does not create any benefit, warranty, representation or
         promise enforceable by any person not a party to it. In particular, the
         Contract (Rights of Third Parties) Act 1999 shall not apply to this
         Agreement and all rights on the part of, or for the benefit of, any
         third party which may arise out of this Agreement under that Act are
         hereby excluded.

21.      APPLICABLE LAWS AND DATA PROTECTION

21.1     Both parties shall comply with all applicable laws, rules, regulations,
         by-laws and codes of practise in performing their respective
         obligations under this Agreement.

21.2     Each party shall (and shall procure that each of its sub-contractors
         shall) comply with the provision and obligations imposed by the Data
         Protection Act 1998 and the Data Protection Principles set out in the
         Act, and data and material of any kind subject to the Act shall be
         returned to the disclosing party on request. The parties acknowledge
         that performance of a duty imposed by the Act shall not constitute a
         breach of any obligation of confidentiality which may be owed to the
         other party.

<PAGE>

22.      AUDIT AND PROVISION OF INFORMATION

22.1     ALCS shall have the right, at its own cost, to examine the Customers
         books and records for the purposes of ascertaining that the financial
         information pertaining to the Services has been provided accurately.
         For that purpose, the Customer hereby grants to ALCS and its
         professional advisors a right of access to the Customers premises,
         systems and information on the giving of reasonable notice during
         normal business hours. ALCS and its professional advisors shall have
         the right to take copies of any financial books and records they
         reasonably require and the Customer shall provide all necessary
         facilities free of charge.

22.2     Without prejudice to ALCS' rights under Clause 10.3, the Customer shall
         on ALCS' written request provide ALCS with all relevant extracts of all
         of the Customers relevant agreements with LINK, Processing Agent(s),
         Carrier(s) and other relevant sub-contractors so as to enable ALCS to
         satisfy itself that the Customer has met its obligations under this
         Agreement and that all relevant third parties are aware of ALCS's
         ownership of the Notes and rights of access to the Notes under this
         Agreement.

22.3     The Customer shall, on a quarterly basis, provide ALCS with a full and
         complete set of management accounts for the previous quarter for the
         Customer and any Affiliate(s) of the Customer requested by ALCS. Such
         accounts shall be provided to ALCS within the same period as that
         required by the Securities Exchange Commission in the United States of
         America for provision of quarterly accounts.

22.4     The Customer shall, no later than six months after the end of each of
         the accounting year of the Customer (and any relevant Affiliate of the
         Customer if requested by ALCS), provide ALCS with a full and complete
         set of each of the Customer's and the relevant Affiliate(s) respective
         annual statutory accounts relating to that accounting year. ALCS may,
         at its option and cost, require such statutory accounts to be
         independently audited.

23       LAW

23.1     This Agreement shall be governed by and construed in accordance with
         English law and both parties hereby submit to the exclusive
         jurisdiction of the English courts.

<PAGE>

Signed  /S/ Frank Lambe
      ___________________________________________
for and on behalf of

       ALLIANCE & LEICESTER CASH SOLUTIONS LIMITED

By Frank Lambe, Director of Cash Development

Signed   /S/ Ashley S. Dean
      ___________________________________________
For and on behalf of

TRM (ATM) LIMITED

By Ashley S. Dean, Managing Director

(C) Alliance & Leicester Cash Solutions Limited 2002Ref: ALCS/Cash Sales
2/1/2002<PAGE>

                                                                   EXHIBIT 10.24

December 31,2004

Mr. John Burke
Annuity & Life Reassurance, Ltd.
Cumberland House
1 Victoria Street
Hamilton HM 11
Bermuda

Dear Mr. Burke:

This letter of intent ("Letter of Intent") represents an indication of interest
with respect to certain proposed reinsurance transactions involving Annuity &
Life Reassurance, Ltd. ("ALR") and Transamerica Occidental Life Insurance
Company ("TOLIC") (the "Transfer").

The purpose of the Transfer is to conclude, effective December 31, 2004,
retrocession transactions between ALR (as retrocedent) and TOLIC (as
retrocessionaire) as to two separate blocks of life reinsurance business and,
effective November 30, 2004, recapture by TOLIC (as retrocedent) of an annuity
retrocession treaty with ALR (as retrocessionaire). Consideration for said
retrocession of life reinsurance business and annuity retrocession treaty
recapture shall consist of various payments from ALR to TOLIC, as well as the
transfer of beneficial interest and title by ALR to TOLIC of related trust
corpus.

STRUCTURE

The structure is as follows:

(1)   ALR shall retrocede to TOLIC 100% of the liability that the ALR assumes
from Fidelity & Guaranty Life Insurance Company under that Reinsurance Agreement
between Fidelity & Guaranty Life Insurance Company and ALR dated October 1,1999
(hereinafter F&G Agreement), with respect to losses occurring on or after
December 31, 2004 subject to the limitations set forth in below Paragraph (3).

(2)   ALR shall retrocede to TOLIC 100% of the liability that the ALR assumes
from Scottish Re Life Corporation, as the present counter-party and cedent under
those Reinsurance Agreements Nos. 2857 and 2858, originally between Phoenix Home
Life Mutual Insurance Company, American Phoenix Life and Reassurance Company and
Phoenix Life and Reassurance Company of New York and ALR, dated January 1, 1998
(hereinafter Scottish Re Agreements), with respect to losses occurring on or
after December 31, 2004 subject to the limitations set forth in below Paragraph
(3).

(3)   In consideration for the retrocession transactions contemplated by the
preceding Paragraphs (1) and (2), ALR shall pay TOLIC $18,500,000 in immediately
available funds, no

<PAGE>

later than January 31, 2005. Of this total, $15,050,000 is attributable to the
retrocession of the F&G Agreement and $3,450,000 is attributable to the
retrocession of the Scottish Re Agreements. Additional consideration consists of
ALR obtaining the necessary consents of F& G Life Insurance Company and Scottish
Re Life Corporation to the novations described hereinafter in Paragraph (5)
within five (5) business days of the date of this Letter of Intent. Said
consideration addresses, in connection with these retrocession transactions,
the transfer to TOLIC of rights and obligations, but excludes rights to premium
and liability for claims occurring prior to December 31,2004. TOLIC shall not be
compensated for and, hence, will have no exposure to any risk exposures of any
type and/or claims with dates of death occurring at any time prior to December
31, 2004.

(4)   On the sixth business day following the effective date of treaties
documenting the retrocession transactions referenced in Paragraphs (1) and (2),
TOLIC shall agree to be a guarantor as to the letters of credit provided by ALR
as to the F&G Agreement and the Scottish Re Agreements, expressly in order to
facilitate the release by the issuing banks of the funds represented by such
letters of credit.

(5)   ALR shall use its best efforts to assist TOLIC in obtaining the consent of
the ceding companies referenced in Paragraphs (1) and (2) above to a novation
of each of the F&G Agreement and the Scottish Re Agreements, continuing in full
force and effect with respect to the respective ceding company hereunder.
Effective as of and on the novation date, TOLIC shall be substituted in the
place of ALR as the reinsurer of each of the F&G Agreement and the Scottish Re
Agreements, provided however that said novations can be concluded on terms
mutually acceptable to both ALR and TOLIC. Consideration for such novation is
addressed in Paragraph (3) and (4) above, as well as Paragraphs (6) and (7)
hereinafter. In the event that said novations do not take effect by January
31,2005, then the retrocession transactions described in preceding Paragraphs
(1), (2) and (3) shall be unwound and the termination and recapture of the
Annuity Modco Treaty referenced in Paragraphs (8) and (9) hereinafter shall not
occur.

(6)   First, on the effective date of the novation(s) referenced in Paragraph
(5) above, the retrocession agreements between ALR referenced in Paragraphs (1)
and (2) shall terminate. Second, on the effective date of said novation(s), the
letters of credit referenced in preceding Paragraph (4) shall also be cancelled
by ALR and TOLIC and shall immediately terminate. Third and finally, on the
effective date(s) of said novation(s), the title to the trust (the assets as to
which equal or exceed $29 million) established in connection with the Scottish
Re agreements shall be transferred from, ALR to TOLIC. The relevant trust
agreement will be revised to reflect TOLIC as the trust's grantor and
beneficiary, thereby replacing ALR as grantor and Scottish Re Life Corporation
(or its predecessor in interest) as beneficiary.

(7)   Upon termination of the letters of credit and the trust title transfer
referenced in Paragraph (6) above, TOLIC shall direct the trustee (Mellon Bank)
to wire the funds as referenced in preceding Paragraph (3) and totaling
$18,500,000 to TOLIC.

<PAGE>

(8)   TOLIC and ALR shall terminate that certain Automatic Modified Coinsurance
Annuity Reinsurance Agreement (No. 0676-01) between ALR and TOLIC effective
September 30, 1998 (the "Annuity Modco Treaty") and TOLIC shall recapture all
business ceded thereunder as of December 1, 2004. ALR shall remain liable to
TOLIC for all claims under the Retrocession Treaty through and including
November 30,2004 and, given such liability, shall be responsible for all net
settlements under the Annuity Modco Treaty through and including said date.

(9)   In consideration for the termination and recapture contemplated by the
preceding Paragraph (8), ALR shall pay TOLIC, no later than January 31,2005: (a)
amounts owed for all outstanding settlements (revenues, if any, offset from or
by gross paid claims) through November 30, 2004 as reasonably agreed by TOLIC
and ALR and (b) a termination premium of $14,000,000. Said consideration shall
be paid first from the remaining assets from the trust established in connection
with the Scottish Re Agreements and as to which TOLIC has assumed title, with
the remainder to be paid in other immediately available funds.

TERMS AND WARRANTIES

Other terms and warranties are as follows:

A.    Conditions Precedent. The consummation of the Transfer contemplated by any
      paragraph of the Structure Section above is warranted by ALR as a
      condition precedent to the parties' obligations to consummate the
      transactions contemplated by any subsequent paragraph of the Structure
      Section above. For example, if the novations described in paragraph (5) do
      not take place, neither TOLIC nor ALR shall proceed to effect termination
      and recapture of the Annuity Modco Treaty as referenced in Paragraphs (8)
      and (9).

B.    Timing. The parties will use their best efforts to negotiate and execute
      Definitive Agreements by January 31, 2005. Definitive Agreements shall
      include, at a minimum, retrocession agreements as to each of the F&G Re
      Agreement and the Scottish Re Agreements, novation amendments as to each
      of the F&G Re Agreements and the Scottish Agreements, and a termination
      and recapture amendment as to the Annuity Modco Treaty.

C.    Consents. To the extent required, as soon as reasonably possible after
      signing of this Agreement, the parties will work together to obtain the
      consents of the necessary ceding companies; provided however, that the
      consent of any regulatory authorities, including but not limited to the
      Bermuda Monetary Authority, shall be the sole responsibility of ALR,

<PAGE>

D.    Limitations of 'TOLIC's Liability under Retrocession Transactions
      Contemplated in Paragraphs(1) and (2). TOLIC's liability under
      retrocession transactions contemplated in paragraphs (1) and (2) are
      limited as follows: Under no circumstances shall TOLIC assume liability
      for any extracontractual liability or punitive damages liability or bad
      faith liability attributable under the F&G Agreement and the Scottish Re
      Agreements. ALR shall indemnify and hold TOLIC harmless as to any such
      liability. Also, under no circumstances shall TOLIC assume liability for
      any existing claim disputes, arbitrations, lawsuits or other dispute
      resolution proceedings.

E.    Claim Payment Warranty by ALR for Effective Period of Retrocession. With
      respect to the F&G Agreement and the Scottish Re Agreements subject to the
      retrocession transactions described in Paragraphs (1) and (2), ALR
      warrants that all claims owed by ALR to the respective cedents shall be
      promptly paid to said cedents (F&G and Scottish Re) during the period
      during which the TOLIC retrocession transactions are in effect. For
      purposes of this warranty, "promptly" is defined as no later than thirty
      (30) calendar days following the receipt of a claim by ALR, provided
      however, that in the event ALR chooses to contest (rather than pay) any
      such claim in the exercise of commercial reasonableness, then ALR shall
      notify TOLIC of same within five (5) calendar days.

F.    Claim Indemnification by ALR for Claims With Dates of Loss Prior to
      December 31, 2004. As referenced in preceding Paragraph (3), TOLIC has no
      liability of any sort in connection with the F&G Agreement and /or
      the Scottish Re Agreements on any date prior to December 31, 2004. ALR
      shall therefore indemnify and hold TOLIC harmless for any and all causes
      of actions and claims alleged, asserted or presented by third parties
      (including but not limited to Fidelity and Guaranty Life Insurance Company
      and Scottish Re Life Corporation) as against TOLIC, in the event that such
      causes of action and claims have dates cf death or occurrence prior to
      December 31, 2004.

G.    Implementation Due Diligence. ALR warrants that the reserve transfer and
      renewal commissions payable by TOLIC are subject to revision in the event
      of implementation due diligence uncovering misstatement in any of the
      financial information provided by ALR during 2004. Financial information
      is defined as all financial information related to the F&G Agreement and
      the Scottish Re agreements provided by ALR in 2004, including but not
      limited to historic portfolio performance, pricing basis and experience
      studies (lapse and mortality). Said implementation due diligence will
      occur no later than forty-five (45) days following the date of both
      parties' execution of this Letter of Intent (or, if one party executes the
      Letter of Intent on a later date than the other party, then the later dare
      will be used for purposes of this time determination).

H.    Portfolio Model Reliance. Specific reliance was placed by TOLIC on the
      accuracy of the portfolio models used by ALR as to the F&G Agreement and
      the Scottish Re

<PAGE>

      Agreements. These models have not yet been validated against internally
      developed TOLIC models. Said validation shall occur no later than
      forty-five (45) days following the date of both parties' execution of this
      Letter of Intent (or, if one party executes the Letter of Intent on a
      later date than the other party, then the later date will be used for
      purposes of this time determination). In the event of any dispute between
      TOLIC and ALR as to the validation of models, said dispute will be
      adjudicated by an independent qualified actuary who is both a Fellow of
      the Society of Actuaries and a Milliman consultant or employee. Any
      material change (more than 2% of transferred reserves) in the reserve
      required based on future TOLIC models (to be developed during 2005) will
      be payable by ALR.

I.    Updating of Reserve Adjustments. The reserve transfer amounts calculated
      by TOLIC as to the F&G Agreement and the Scottish Re Agreements are based
      on models and data provided by ALR. An adjustment to true these models to
      the actual Fourth Quarter 2004 results will be made to ascertain the
      appropriate reserve transfer amounts. Said true-up will occur no later
      than one hundred twenty (120) days following the date of both parties'
      execution of this Letter of Intent (or, if one party executes the Letter
      of Intent on a later date than the other party, then the later date will
      be used for purposes of this time determination). Any resulting difference
      in reserve transfer amount (positive or negative) will be transferred
      between the parties.

J.    Treaty Terms as as to Retrocession and Novation Transactions. As a
      condition precedent to TOLIC's assumption of liability for the
      retrocession transactions described in preceding Paragraphs (1), (2) and
      (3) as a condition precedent to the novation transactions described in
      preceding paragraphs (5), (6), and (7), TOLIC shall have the right to vary
      and/or revise the treaty terms of the F&G Agreement and the Scottish Re
      Agreements.

K.    Format of Settlement Reports. For 2005, the format of the settlement
      reports (as to premium and claims) to be used with each of the F&G
      Agreement and the Scottish Re Agreements shall be that utilized by ALR in
      2004.

L.    Administration of Scottish Re Agreements. The consummation of the
      transaction is conditioned on whether TOLIC, in its sole discretion, is
      able to assure that Sarbanes Oxley clearance by its Steering Committee is
      granted with respect to the F&G Agreement and the Scottish Re Agreements,
      so as to allow TOLIC to exercise appropriate controls and to allow access
      to adequate and sufficient data for purposes of life reinsurance
      administration. TOLIC will make such determination and communicate same
      within sixty (60) days following the date of both parties' execution of
      this Letter of Intent (or, if one party executes the Letter of Intent on a
      later date than the other party, then the later date will be used for
      purposes of this time determination).

<PAGE>

M.    Cooperation. The parties hereto agree to promptly execute any and all
      supplemental agreements and other documents of any nature or kind, and
      take all such other actions, which any other party may reasonably require
      in order to implement the provisions or objectives of this Letter of
      Intent.

N.    Amendments. Any modification, amendment, addition, alteration of any of
      these terms, covenants or conditions shall not be effective unless reduced
      to writing and duly executed by the parties.

O.    Applicable Law. The validity, construction and enforceability of this
      Letter of Intent shall be governed by the laws of the State of Iowa
      applicable to contracts executed and to be performed solely within the
      State of Iowa.

P.    Counterparts. Provided that both parties hereto execute a copy of this
      Letter of Intent, this Letter of Intent may be executed in counterparts,
      each of which shall be deemed an original and all of which together shall
      constitute one and the same instrument. The parties acknowledge that
      delivery of executed counterparts of this Letter of Intent may be affected
      by facsimile, and that, in such event, the signatures transmitted by said
      facsimile shall be acknowledged by both TOLIC and ALR to be original and
      binding signatures. The exchange of executed Letter of Intent
      counterparts by facsimile will be followed by delivery of the counterparts
      by overnight express to each of TOLIC and ALR.

DILIGENCE; DEFINITIVE AGREEMENTS - Consummation of the Transaction will be
subject to (i) approval of the Board of Directors of ALR and the
President-Reinsurance Division of TOLIC and (ii) negotiation and execution of
Definitive Agreements, as referenced in Paragraph B above. The Definitive
Agreements will contain representations and warranties, covenants, conditions
and indemnities that are customary and appropriate for similar transactions.

EXPENSE REIMBURSEMENT - ALR and TOLIC shall each pay its own costs and expenses
necessary to effect the proposed Transaction, including the expenses of
preparing the Definitive Agreement.

PUBLIC ANNOUNCEMENT - Neither party nor their employees, agents or ostensible
agents will make or issue any public statement or announcement with respect to
the transactions contemplated by this letter without the prior written approval
of the other, except that in the event the parties are unable to agree on a
public statement or announcement and legal counsel for a party is of the opinion
that such statement or announcement is required by law or applicable stock
exchange rules, then such party may issue the legally required statement or
announcement. Each party shall indemnify, defend and hold the other party
harmless from any liability, damage or expense, including reasonable attorneys'
fees, resulting from any breach of this provision by such party or employees,
agents or ostensible agents thereof.

<PAGE>

The obligations set forth in this Letter of Intent shall become binding
obligations of the parties upon execution and delivery by ALR of a counterpart
of this letter to TOLIC. Any modification of the obligations set forth herein
will be only as set forth in Definitive Agreements executed by ALR and TOLIC.

Please do not hesitate to contact me to discuss the terms of the Transaction or
to respond to any questions that may arise with respect to this Letter of
Intent, prior to its execution.

Sincerely,

Transamerica Occidental Life Insurance Company

By: /s/ Patrick B. Kelleher
    ------------------------------------------
Name: Patrick B. Kelleher
Title: Senior Vice President

AGREED AND ACCEPTED

Annuity & Life Reassurance. Ltd.

By: /s/ Robert M. Lichten.
    ------------------------------------------
Name: Robert M. Lichten.
Title: Director & Member of Executive Committee

 c:   Robert Lichten

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