Document:

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                                                                   Exhibit 10.19

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                                CREDIT AGREEMENT

                            dated as of July 19, 2001

                                     between

                            HUB INTERNATIONAL LIMITED

                                       and

                              BANK OF AMERICA, N.A.

================================================================================

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                                TABLE OF CONTENTS

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SECTION 1  DEFINITIONS AND INTERPRETATION......................................1

     1.1   Certain Definitions.................................................1
     1.2   Other Interpretive Provisions......................................15
     1.3   Accounting Terms...................................................15
     1.4   Rounding...........................................................15
     1.5   Exhibits and Schedules.............................................15
     1.6   References to Agreements and Laws..................................16

SECTION 2  COMMITMENT OF THE BANK; TYPES OF LOANS; BORROWING AND
           CONVERSION PROCEDURES..............................................16

     2.1   Commitment.........................................................16
     2.2   Various Types of Loans.............................................16
     2.3   Borrowing Procedures...............................................16
     2.4   Conversion and Continuation Procedures.............................16
     2.5   Warranty...........................................................17
     2.6   Conditions.........................................................17

SECTION 3  NOTE EVIDENCING LOANS..............................................17

     3.1   Note...............................................................17
     3.2   Recordkeeping......................................................17

SECTION 4  INTEREST...........................................................18

     4.1   Interest Rates.....................................................18
     4.2   Interest Payment Dates.............................................18
     4.3   Setting and Notice of Offshore Rates...............................18
     4.4   Computation of Interest............................................18

SECTION 5  FEES...............................................................19

     5.1   Facility Fee.......................................................19
     5.2   Utilization Fee....................................................19
     5.3   Closing Fee........................................................19

SECTION 6  REDUCTION OR TERMINATION OF THE COMMITMENT;
           VOLUNTARY PREPAYMENTS..............................................19

     6.1   Reduction or Termination of the Commitment.........................19
     6.2   Prepayments........................................................19

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                                                                            ----
           6.2.1  Voluntary Prepayments.......................................19
           6.2.2  Prepayments of Offshore Rate Loans..........................20

SECTION 7  MAKING AND APPLICATION OF PAYMENTS; SETOFF.........................20

     7.1   Making of Payments.................................................20
     7.2   Application of Certain Payments....................................20
     7.3   Due Date Extension.................................................20
     7.4   Setoff.............................................................20

SECTION 8  INCREASED COSTS; SPECIAL PROVISIONS FOR OFFSHORE RATE LOANS........20

     8.1   Taxes..............................................................20
     8.2   Increased Costs....................................................21
     8.3   Basis for Determining Interest Rate Inadequate or Unfair...........23
     8.4   Changes in Law Rendering Certain Loans Unlawful....................23
     8.5   Funding Losses.....................................................23
     8.6   Right of Bank to Fund through Other Offices........................24
     8.7   Discretion of Bank as to Manner of Funding.........................24
     8.8   Conclusiveness of Statements; Survival of Provisions...............24

SECTION 9  WARRANTIES.........................................................24

     9.1   Organization, etc..................................................24
     9.2   Authorization; No Conflict.........................................24
     9.3   Validity and Binding Nature........................................25
     9.4   Financial Information..............................................25
     9.5   No Material Adverse Change.........................................26
     9.6   Capitalization.....................................................26
     9.7   Litigation and Contingent Liabilities..............................26
     9.8   Ownership of Properties; Liens.....................................27
     9.9   Subsidiaries.......................................................27
     9.10  ERISA Compliance...................................................27
     9.11  Regulation U.......................................................27
     9.12  Taxes..............................................................28
     9.13  Environmental Warranties...........................................28
     9.14  Regulated Entities.................................................29
     9.15  Absence of Default.................................................29
     9.16  Information........................................................29
     9.17  Acquisitions.......................................................30

SECTION 10  COVENANTS.........................................................31

     10.1  Reports, Certificates and Other Information........................31
           10.1.1  Audit Report...............................................31
           10.1.2  Quarterly Reports..........................................31

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                                                                            PAGE
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           10.1.3  Certificates...............................................31
           10.1.4  Reports to Shareholders....................................32
           10.1.5  Notice of Default, Litigation and Other Matters............32
           10.1.6  Subsidiaries...............................................32
           10.1.7  Management Reports.........................................32
           10.1.8  Projections................................................32
           10.1.9  Other Information..........................................33
     10.2  Books, Records and Inspections.....................................33
     10.3  Insurance..........................................................33
     10.4  Compliance with Laws; Payment of Taxes and Liabilities.............33
     10.5  Maintenance of Existence, etc......................................33
     10.6  Financial Covenants................................................34
           10.6.1  Net Worth..................................................34
           10.6.2  Senior Leverage Ratio......................................34
           10.6.3  Total Leverage Ratio.......................................34
           10.6.4 Capital Expenditures........................................34
     10.7  Limitations on Debt................................................34
     10.8  Leases.............................................................34
     10.9  Liens..............................................................34
     10.10 Restricted Payments................................................35
     10.11 Investments........................................................35
     10.12 Mergers, Consolidations, Sales.....................................36
     10.13 Use of Proceeds....................................................36
     10.14 Transactions with Related Parties..................................36
     10.15 Employee Benefit Plans.............................................36
     10.16 Environmental Covenant.............................................36
     10.17 Unconditional Purchase Obligations.................................37
     10.18 Business...........................................................37
     10.19 Inconsistent Agreements............................................37
     10.20 Subordinated Debt..................................................37
     10.21 Prepayment of Obligations to Redeem Shares.........................38
     10.22 Use of Proceeds of Sale of Old Lyme................................38

SECTION 11 CONDITIONS PRECEDENT...............................................38

     11.1  Initial Credit Extension...........................................38
           11.1.1  Note.......................................................38
           11.1.2  Guaranties.................................................38
           11.1.3  Resolutions................................................38
           11.1.4  Consents, etc..............................................38
           11.1.5  Incumbency and Signatures..................................38
           11.1.6  Corporate Documents........................................39
           11.1.7  Opinions...................................................39
           11.1.8  Bank of Montreal Credit Agreement..........................39
           11.1.9  Debentures.................................................39
           11.1.10 Projections................................................39
           11.1.11 Other......................................................39
     11.2  All Credit Extensions..............................................39
           11.2.1  No Default.................................................39

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                                                                            PAGE
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           11.2.2  Confirmatory Certificate...................................39

SECTION 12 EVENTS OF DEFAULT AND THEIR EFFECT.................................40

     12.1  Events of Default..................................................40
           12.1.1  Non-Payment of the Loans, etc..............................40
           12.1.2  Non-Payment of Other Debt..................................40
           12.1.3  Other Material Obligations.................................40
           12.1.4  Bankruptcy, Insolvency, etc................................40
           12.1.5  Non-Compliance with Provisions of This Agreement...........40
           12.1.6  Warranties.................................................41
           12.1.7  Pension Plans..............................................41
           12.1.8  Judgments..................................................41
           12.1.9  Invalidity of Guaranties...................................41
           12.1.10 Change of Control..........................................41
           12.1.11 Subordinated Debt..........................................41
     12.2  Effect of Event of Default.........................................41

SECTION 13 GENERAL............................................................42

     13.1  Waiver; Amendments.................................................42
     13.2  Notices............................................................42
     13.3  Computations.......................................................42
     13.4  Costs, Expenses and Taxes..........................................42
     13.5  Judgment Currency..................................................43
     13.6  Governing Law......................................................43
     13.7  Counterparts.......................................................44
     13.8  Successors and Assigns.............................................44
     13.9  Indemnification by the Company.....................................44
     13.10 Subsidiary References..............................................45
     13.11 Waiver of Jury Trial...............................................45

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                                    SCHEDULES

SCHEDULE 8.1           Lending Offices
SCHEDULE 9.6           Agreements with Respect to Stock
SCHEDULE 9.7           Litigation and Contingent Liabilities
SCHEDULE 9.9           Subsidiaries
SCHEDULE 9.13          Environmental Matters
SCHEDULE 10.7          Subsidiary Debt
SCHEDULE 10.9          Existing Liens
SCHEDULE 10.11         Investments
SCHEDULE 11.1.2        Material Subsidiaries

                                    EXHIBITS

EXHIBIT A              Form of Note (Section 3.1)
EXHIBIT B              Form of Compliance Certificate (Section 10.1.4)
EXHIBIT C              Forms of Opinions (Section 11.1.6)

                                      -v-

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                                CREDIT AGREEMENT
                                ----------------

     This CREDIT AGREEMENT dated as of July 19, 2001 (this "Agreement") is
entered into between HUB INTERNATIONAL LIMITED, a corporation organized under
the laws of Ontario, Canada, (the "Company"), and BANK OF AMERICA, N.A. (the
"Bank").

     In consideration of the premises and the mutual agreements herein
contained, the parties hereto agree as follows:

     SECTION 1 DEFINITIONS AND INTERPRETATION.

     1.1  Certain Definitions. When used herein, the following terms shall have
the following meanings:

     Acquisition Agreements means the Burnham Acquisition Agreement, the
Flanagan Acquisition Agreement and the Kaye Acquisition Agreement.

     Acquisitions means the Burnham Acquisition, the Flanagan Acquisition and
the Kaye Acquisition.

     Affiliate means any Person directly or indirectly controlling, controlled
by, or under direct or indirect common control with, another Person. A Person
shall be deemed to be "controlled by" any other Person if such other Person
possesses, directly or indirectly, power (a) to vote 10% or more of the
securities (on a fully diluted basis) having ordinary voting power for the
election of directors or managing general partners; or (b) to direct or cause
the direction of the management and policies of such Person whether by contract
or otherwise.

     Agreement means this Credit Agreement, as amended, restated, extended,
supplemented or otherwise modified in writing from time to time.

     Attorney Costs means and includes all fees and disbursements of any law
firm or other external counsel and the reasonable allocated cost of internal
legal services and all reasonable disbursements of internal counsel.

     Audited Financial Statements means the audited consolidated balance sheet
of the Company and its Subsidiaries for the fiscal year ended December 31, and
the related consolidated statements of income and cash flows for such fiscal
year of the Company

     Bank means Bank of America, N.A.

     Base Rate means a fluctuating rate per annum equal to the higher of (a) the
Federal Funds Rate plus 1/2 of 1% and, (b) the rate of interest in effect for
such day as publicly announced from time to time by the Bank as its "prime
rate." Such rate is a rate set by the Bank based upon various factors including
the Bank's costs and desired return, general economic conditions and other
factors, and is used as a reference point for pricing some loans, which may be
priced at,

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above, or below such announced rate. Any change in such rate announced by the
Bank shall take effect at the opening of business on the day specified in the
public announcement of such change.

     Borrower Party means the Company or any Person other than the Bank and any
Affiliates of the Bank from time to time party to a Loan Document.

     Burnham means Burnham Stewart Group, Inc., a Michigan corporation.

     Burnham Acquisition means the acquisition by the Company of Burnham
pursuant to the Burnham Acquisition Agreement.

     Burnham Acquisition Agreement means the Agreement and Plan of Merger dated
as of July 1 , 2001 between Burnham, the Company, Burnham Insurance Agency No.
53, Inc. and the principal stockholders of Burnham, which agreement shall be in
form and substance satisfactory to the Bank.

     Burnham Acquisition Costs means the $1,802,000 of costs incurred by Burnham
with respect to the Burnham Acquisition.

     Business Day means any day other than a Saturday, Sunday, or other day on
which commercial banks are authorized to close under the Laws of, or are in fact
closed in, the state where the Bank's Office is located and, if such day relates
to any Offshore Rate Loan, means any such day on which dealings in Dollar
deposits are conducted by and between banks in the offshore Dollar interbank
market.

     Capital Expenditures means, for any period, the sum of:

          (a)  the aggregate amount of all expenditures of the Company and its
     Subsidiaries for fixed or capital assets made during such period, which, in
     accordance with GAAP, would be classified as capital expenditures; and

          (b)  the aggregate amount of all Capital Lease liabilities incurred by
     the Company and its Subsidiaries during such period.

     Capital Lease means, with respect to any Person, any lease of (or other
agreement conveying the right to use) any real or personal property by such
Person which, in conformity with GAAP, is accounted for as a capital lease on
the balance sheet of such Person.

     Cash Equivalent Investment means, at any time:

          (a)  any evidence of Debt, maturing not more than one year after such
     time, issued or guaranteed by the United States Government;

          (b)  commercial paper, maturing not more than 270 days from the date
     of issue, which is issued by

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               (i)  a corporation (except an Affiliate of the Company) organized
          under the laws of any State of the United States of America or of the
          District of Columbia and rated at least A-1 by Standard & Poor's
          Ratings Group or P-1 by Moody's Investors Service, Inc., at the time
          of investment, or

               (ii) the Bank or any of its Affiliates;

          (c)  any certificate of deposit or bankers' acceptance or eurodollar
     time deposit, maturing not more than one year after the date of issue,
     which is issued by either

               (i)  a financial institution that is a member of the Federal
          Reserve System and has a combined capital and surplus and undivided
          profits of not less than $100,000,000, or

               (ii) the Bank;

          (d)  any repurchase agreement with a term of one year or less which

               (i)  is entered into with

                    (A)  the Bank, or

                    (B)  any other commercial banking institution of the stature
               referred to in clause (c)(i),

               (ii) is secured by a fully perfected Lien in any obligation of
          the type described in any of clauses (a) through (c), and

               (iii) has a market value at the time such repurchase agreement is
          entered into of not less than 100% of the repurchase obligation of the
          Bank (or other commercial banking institution) thereunder;

          (e)  investments in money market funds that invest primarily in Cash
     Equivalent Investments of the types described in clauses (a) through (d);
     or

          (f)  investments in short-term asset management accounts offered by
     the Bank for the purpose of investing in loans to any corporation (other
     than an Affiliate of the Company) organized under the laws of any state of
     the United States or of the District of Columbia and rated at least A-1 by
     Standard & Poor's Ratings Group or P-1 by Moody's Investors Service, Inc.

     The sign "Cdn$" means the lawful money of Canada.

     CERCLA means the Comprehensive Environmental Response, Compensation and
Liability Act of 1980, as amended.

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     CERCLIS means the Comprehensive Environmental Response Compensation
Liability Information System List.

     Change of Control means the acquisition by any Person or any two or more
Persons acting in concert of Beneficial Ownership (within the meaning of Rule
13d-3 of the Securities and Exchange Commission under the Securities Exchange
Act of 1934) of 20% or more of the outstanding voting stock of the Company.

     Code means the Internal Revenue Code of 1986, as amended from time to time.

     Commitment means the commitment of the Bank to make Loans pursuant to
Section 2.1. The amount of the Commitment is $25,000,000 (as it may be reduced
from time to time pursuant to Section 6.1).

     Company means Hub International Limited, a corporation organized under the
laws of the Province of Ontario, Canada.

     Computation Period means each period of four consecutive Fiscal Quarters
ending on the last day of a Fiscal Quarter.

     Consolidated Net Income means, with respect to the Company and its
Subsidiaries or for any other Person for any period, the net income (or loss) of
the Company and its Subsidiaries or such Person for such period.

     Debt of any Person means, without duplication, (a) all indebtedness of such
Person for borrowed money, whether or not evidenced by bonds, debentures, notes
or similar instruments, (b) all lease payment obligations of such Person under
Capital Leases, (c) all lease payment obligations of such Person under Synthetic
Lease Obligations, (d) all obligations of such Person to pay the deferred
purchase price of property or services (excluding current accounts payable in
the ordinary course of business), (e) all indebtedness secured by a Lien on the
property of such Person, whether or not such indebtedness shall have been
assumed by such Person (it being understood that if such Person has not assumed
or otherwise become personally liable for any such indebtedness, the amount of
the Debt of such Person in connection therewith shall be limited to the lesser
of the face amount of such indebtedness or the fair market value of all property
of such Person securing such indebtedness), (f) all obligations, contingent or
otherwise, with respect to the face amount of all letters of credit (whether or
not drawn) and banker's acceptances issued for the account of such Person, (g)
liabilities of such Person in respect of Hedging Agreements, and (h) all
Suretyship Liabilities of such Person (including, but not limited to, any
guaranty by a Person of the Debt of any members of the Board of Directors, any
officers or any other employees of such Person, (i) any accrued earn-out
obligations of such Person, and (j) rights of holders of shares of a Person to
put such shares to such Person.

     Debtor Relief Laws means the Bankruptcy Code of the United States of
America, and all other liquidation, conservatorship, bankruptcy, assignment for
the benefit of creditors, moratorium, rearrangement, receivership, insolvency,
reorganization, or similar debtor relief

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Laws of the United States of America or other applicable jurisdictions from time
to time in effect affecting the rights of creditors generally.

     EBITDA means with respect to any Computation Period, the Company's
Consolidated Net Income plus (to the extent deducted in computing Consolidated
Net Income) Interest Expense, taxes, depreciation and amortization; provided,
however, that if the Kaye Acquisition shall have occurred during such
Computation Period, EBITDA of the Kaye Group for the portion of the Computation
Period before the Kaye Acquisition Date shall be added, plus (to the extent
deducted from such EBITDA for the Kaye Group) the Kaye Acquisition Costs;
provided, further, that if the Burnham Acquisition shall have occurred during
such Computation Period, EBITDA of Burnham for the portion of the Computation
Period before the Burnham Acquisition Date shall be added, plus (to the extent
deducted from such EBITDA for Burnham) the Burnham Acquisition Costs; provided,
further, that if the Flanagan Acquisition shall have occurred during such
Computation Period, EBITDA of Flanagan for the portion of the Computation Period
before the Flanagan Acquisition Date shall be added, plus (to the extent
deducted from such EBITDA for Flanagan) the Flanagan Acquisition Costs; and
provided, further, that if the Old Lyme Purchase Date shall have occurred during
such Computation Period, EBITDA for Old Lyme shall be excluded during the
portion of the Computation Period that Old Lyme was owned by either the Company
or the Kaye Group and 65% of the underwriting profits of Old Lyme (as calculated
in a manner consistent with the underwriting profit sharing agreement between
Old Lyme and the Company) shall be added.

     Effective Date - see Section 11.1.

     Environmental Laws means all applicable federal, state or local statutes,
laws, ordinances, codes, rules, regulations and guidelines (including consent
decrees and administrative orders) relating to public health and safety and
protection of the environment.

     ERISA means the Employee Retirement Income Security Act of 1974.

     ERISA Affiliate means any trade or business (whether or not incorporated)
under common control with the Company within the meaning of Sections 414(b) or
(c) of the Code (and Sections 414(m) and (o) of the Code for purposes of
provisions relating to Section 412 of the Code).

     ERISA Event means (a) a Reportable Event with respect to a Pension Plan;
(b) a withdrawal by the Company or any ERISA Affiliate from a Pension Plan
subject to Section 4063 of ERISA during a plan year in which it was a
substantial employer (as defined in Section 4001(a)(2) of ERISA) or a cessation
of operations that is treated as such a withdrawal under Section 4062(e) of
ERISA; (c) a complete or partial withdrawal by the Company or any ERISA
Affiliate from a Multiemployer Plan or notification that a Multiemployer Plan is
in reorganization; (d) the filing of a notice of intent to terminate, the
treatment of a Plan amendment as a termination under Sections 4041 or 4041A of
ERISA, or the commencement of proceedings by the PBGC to terminate a Pension
Plan or Multiemployer Plan; (e) an event or condition which might reasonably be
expected to constitute grounds under Section 4042 of ERISA for the termination
of, or the appointment of a trustee to administer, any Pension Plan or
Multiemployer Plan; or (f) the imposition of any liability under Title IV of
ERISA, other than PBGC premiums

                                       5

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due but not delinquent under Section 4007 of ERISA, upon the Company or any
ERISA Affiliate.

     Eurodollar Office means the office or offices of the Bank which shall be
making or maintaining Offshore Rate Loans hereunder or the other office or
offices through which the Bank determines its Offshore Rate. A Eurodollar Office
of the Bank may be, at the option of the Bank, either a domestic or foreign
office.

     Event of Default means any of the events described in Section 12.1.

     Facility Fee Rate means 0.15%.

     Fairfax means Fairfax Financial Holdings Limited, a Canada corporation.

     Fairfax Guaranty means the written agreement of Fairfax, in form and
substance satisfactory to the Bank, to pay all amounts outstanding under this
Agreement in the event that the Old Lyme Purchase Date shall not occur on or
before October 31, 2001, which agreement shall expire by its terms upon the
occurrence of the Old Lyme Purchase Date.

     Federal Funds Rate means, for any day, the rate set forth in the weekly
statistical release designated as H.15(519), or any successor publication,
published by the Federal Reserve Bank of New York (including any such successor,
"H.15(519)") on the preceding Business Day opposite the caption "Federal Funds
(Effective)"; or, if for any relevant day such rate is not so published on any
such preceding Business Day, the rate for such day will be the arithmetic mean
as determined by the Bank of the rates for the last transaction in overnight
Federal funds arranged prior to 9:00 a.m. (New York City time) on that day by
each of three leading brokers of Federal funds transactions in New York City
selected by the Bank.

     Fiscal Quarter means any quarter of a Fiscal Year.

     Fiscal Year means any period of 12 consecutive calendar months ending on
December 31.

     Flanagan means J.P. Flanagan Corporation, an Illinois corporation.

     Flanagan Acquisition means the acquisition by the Company of Flanagan,
pursuant to the Flanagan Acquisition Agreement.

     Flanagan Acquisition Agreement means the Purchase Agreement dated as of May
31, 2001 among the Company, Hub U.S. Holdings, Inc., a Delaware company,
Flanagan and Joseph P. Flanagan, Jr.

     Flanagan Acquisition Costs means the $388,000 of costs incurred by Flanagan
with respect to the Flanagan Acquisition.

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     Floating Rate Loan means any Loan which bears interest at or by reference
to the Base Rate.

     GAAP means generally accepted accounting principles set forth in the
opinions and pronouncements of the Accounting Principles Board and the American
Institute of Certified Public Accountants and statements and pronouncements of
the Financial Accounting Standards Board or such other principles as may be
approved by a significant segment of the accounting profession, that are
applicable to the circumstances as of the date of determination, consistently
applied, or the Canadian equivalent of the foregoing, in the event that the
Company is required by any Governmental Authority to use such equivalent. If at
any time any change in GAAP would affect the computation of any financial ratio
or requirement set forth in any Loan Document, and either the Company or the
Bank shall so request, the Bank and the Company shall negotiate in good faith to
amend such ratio or requirement to preserve the original intent thereof in light
of reflect such change in GAAP, provided that, until so amended, (a) such ratio
or requirement shall continue to be computed in accordance with GAAP prior to
such change therein and (b) the Company shall provide to the Bank financial
statements and other documents required under this Agreement or as reasonably
requested hereunder setting forth a reconciliation between calculations of such
ratio or requirement made before and after giving effect to such change in GAAP.

     Governmental Authority means (a) any international, foreign, federal,
state, county or municipal government, or political subdivision thereof, (b) any
governmental or quasi-governmental agency, authority, board, bureau, commission,
department, instrumentality, central bank or public body, or (c) any court,
administrative tribunal or public utility.

     Guaranties means the Fairfax Guaranty and the Material Subsidiaries
Guaranty.

     Hazardous Material means

          (a)  any "hazardous substance" as defined by CERCLA;

          (b)  any "hazardous waste" as defined by RCRA;

          (c)  any crude oil, petroleum product or fraction thereof (excluding
     gasoline and oil in motor vehicles, small amounts of cleaners and similar
     items used in the ordinary course of business); or

          (d)  any pollutant or contaminant or hazardous, dangerous or toxic
     chemical, material or substance within the meaning of any Environmental
     Law.

     Hedging Agreement means any interest rate, currency or commodity swap
agreement, interest rate cap agreement, interest rate collar agreement, or other
agreement or arrangement designed to protect a Person against fluctuations in
interest rates, currency exchange rates or commodity prices.

                                       7

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     Interest Expense means for any period the consolidated interest expense of
the Company and its Subsidiaries or any other Person for such period (including
all imputed interest on Capital Leases).

     Interest Period means, for each Offshore Rate Loan, (a) initially, the
period commencing on the date such Offshore Rate Loan is disbursed, Continued
as, or Converted into, an Offshore Rate Loan and (b) thereafter, the period
commencing on the last day of the preceding Interest Period, and ending, in each
case, on the earlier of (x) the Termination Date, or (y) one, two, three or six
months thereafter; provided that:

          (i)  any Interest Period that would otherwise end on a day that is not
     a Business Day shall be extended to the next succeeding Business Day unless
     such Business Day falls in another calendar month, in which case such
     Interest Period shall end on the next preceding Business Day;

          (ii) any Interest Period which begins on the last Business Day of a
     calendar month (or on a day for which there is no numerically corresponding
     day in the calendar month at the end of such Interest Period) shall end on
     the last Business Day of the calendar month at the end of such Interest
     Period; and

          (iii) unless the Bank otherwise consents, there may not be more than
     four Interest Periods in effect at any time.

     Investment means, as to any Person, any acquisition or any investment by
such Person, whether by means of the purchase or other acquisition of stock or
other securities of any other Person or by means of a loan, creating a debt,
capital contribution, guaranty or other debt or equity participation or interest
in any other Person, including any partnership and joint venture interests in
such other Person. For purposes of covenant compliance, the amount of any
Investment shall be the amount actually invested, without adjustment for
subsequent increases or decreases in the value of such Investment.

     Kaye Acquisition means the acquisition by the Company of Kaye Group
pursuant to the Kaye Acquisition Agreement.

     Kaye Acquisition Agreement means the Agreement and Plan of Merger dated as
of January 19, 2001, among the Company, 416 Acquisition Inc., a Delaware
corporation and a wholly owned subsidiary of the Company, and Kaye Group, which
agreement shall be in form and substance satisfactory to the Bank.

     Kaye Acquisition Costs means the $ 694,000 of costs incurred by the Kaye
Group with respect to the Kaye Acquisition.

     Kaye Group means Kaye Group Inc. a Delaware corporation.

     Laws or Law means all international, foreign, federal, state and local
statutes, treaties, rules, guidelines, regulations, ordinances, codes and
administrative or judicial precedents or

                                       8

<PAGE>

authorities, including the interpretation or administration thereof by any
Governmental Authority charged with the enforcement, interpretation or
administration thereof, and all applicable administrative orders, directed
duties, requests, licenses, authorizations and permits of, and agreements with,
any Governmental Authority, in each case whether or not having the force of law.

     Lending Office means the office or offices of the Bank specified as its
"Lending Office" or "Domestic Lending Office" or "Offshore Lending Office", as
the case may be, on Schedule 8.1, or such other office or offices as the Bank
may from time to time notify the Company.

     Lien means any mortgage, pledge, hypothecation, assignment, deposit
arrangement (in the nature of compensating balances, cash collateral accounts or
security interests), encumbrance, lien (statutory or other), charge, or
preference, priority or other security interest or preferential arrangement of
any kind or nature whatsoever (including any conditional sale or other title
retention agreement, any financing lease having substantially the same economic
effect as any of the foregoing, and the filing of any financing statement under
the Uniform Commercial Code or comparable Laws of any jurisdiction), including
the interest of a purchaser of accounts receivable.

     Loan means any advance made by the Bank to the Company as provided in
Section 2 (collectively, the "Loans").

     Loan Documents means this Agreement, the Note and the Guaranties.

     Margin means 1.35%.

     Margin Stock means any "margin stock" as defined in Regulation U of the
Board of Governors of the Federal Reserve System.

     Material Adverse Effect means any set of circumstances or events which (a)
has or could reasonably be expected to have any material adverse effect
whatsoever upon the validity or enforceability of any Loan Document, (b) is or
could reasonably be expected to be material and adverse to the condition
(financial or otherwise), business, assets, operations or prospects of any
Borrower Party, or (c) materially impairs or could reasonably be expected to
materially impair the ability of any Borrower Party to perform the Obligations,
in each case as determined by the Bank.

     Material Subsidiaries means the Subsidiaries of the Company listed on
Schedule 11.1.2.

     Material Subsidiaries Guaranty means the written agreement of the Material
Subsidiaries, in form and substance satisfactory to the Bank, to guaranty the
payment of all amounts due under this Agreement.

     Mortgage means a mortgage, deed of trust, leasehold mortgage or similar
instrument granting the Bank a Lien on real property of the Company or any
Subsidiary.

                                       9

<PAGE>

     Multiemployer Plan means any employee benefit plan of the type described in
Section 4001(a)(3) of ERISA.

     Net Worth means the net worth of the Company as determined in accordance
with GAAP.

     Note - see Section 3.1.

     Obligations means all advances to, and debts, liabilities, obligations,
covenants and duties of, any Borrower Party arising under any Loan Document,
whether direct or indirect (including those acquired by assignment), absolute or
contingent, due or to become due, now existing or hereafter arising and
including interest that accrues after the commencement of any proceeding under
any Debtor Relief Laws by or against any Borrower Party or any Subsidiary or
Affiliate of any Borrower Party.

     Offshore Base Rate has the meaning set forth in the definition of Offshore
Rate.

     Offshore Rate means for any Interest Period with respect to any Offshore
Rate Loan, a rate per annum determined by the Bank pursuant to the following
formula:

                                   Offshore Base Rate
          Offshore Rate = ------------------------------------
                          1.00 - Eurodollar Reserve Percentage

          Where,
          Offshore Base Rate means, for such Interest Period:

          (a)  the rate per annum (carried out to the fifth decimal place) equal
     to the rate determined by the Bank to be the offered rate that appears on
     the page of the Telerate Screen that displays an average British Bankers
     Association Interest Settlement Rate for deposits in Dollars (for delivery
     on the first day of such Interest Period) with a term equivalent to such
     Interest Period, determined as of approximately 11:00 a.m. (London time)
     two Business Days prior to the first day of such Interest Period, or

          (b)  in the event the rate referenced in the preceding subsection (a)
     does not appear on such page or service or such page or service shall cease
     to be available, the rate per annum (carried out to the fifth decimal
     place) equal to the rate determined by the Bank to be the offered rate on
     such other page or other service that displays an average British Bankers
     Association Interest Settlement Rate for deposits in Dollars (for delivery
     on the first day of such Interest Period) with a term equivalent to such
     Interest Period, determined as of approximately 11:00 a.m. (London time)
     two Business Days prior to the first day of such Interest Period, or

          (c)  in the event the rates referenced in the preceding subsections
     (a) and (b) are not available, the rate per annum determined by the Bank as
     the rate of interest at which Dollar deposits (for delivery on the first
     day of such Interest Period) in same day funds in the approximate amount of
     the applicable Offshore Rate Loan and with a term equivalent to such
     Interest Period would be offered by its London Branch to major banks in the
     offshore Dollar market at their request at approximately 11:00 a.m. (London
     time) two Business Days prior to the first day of such Interest Period.

                                       10

<PAGE>

     Eurodollar Reserve Percentage means, for any day during any Interest
Period, the reserve percentage (expressed as a decimal, rounded upward to the
next 1/100th of 1%) in effect on such day, whether or not applicable to the
Bank, under regulations issued from time to time by the Board of Governors of
the Federal Reserve System for determining the maximum reserve requirement
(including any emergency, supplemental or other marginal reserve requirement)
with respect to Eurocurrency funding (currently referred to as "Eurocurrency
liabilities"). The Offshore Rate for each outstanding Offshore Rate Loan shall
be adjusted automatically as of the effective date of any change in the
Eurodollar Reserve Percentage.

     The determination of the Eurodollar Reserve Percentage and the Offshore
Base Rate by the Bank shall be conclusive in the absence of manifest error.

     Offshore Rate Loan means a Loan bearing interest based on the Offshore
Rate.

     Old Lyme means, collectively, Old Lyme Insurance Company of Rhode Island, a
Rhode Island insurance company and Old Lyme Insurance Company of Bermuda, a
Bermuda insurance company.

     Old Lyme Purchase Agreement means the written agreement of Fairfax or a
Subsidiary thereof to purchase all of the capital stock of Old Lyme for not less
than $35,000,000 in cash, which agreement shall be in form and substance
satisfactory to the Bank.

     Old Lyme Purchase Date means the date on which the purchase contemplated by
the Old Lyme Purchase Agreement is consummated.

     Other Taxes means any present or future stamp or documentary taxes or any
other excise or property taxes, charges or similar levies which arise from any
payment made hereunder or from the execution, delivery or registration of, or
otherwise with respect to, this Agreement or any other Loan Documents.

     PBGC means the Pension Benefit Guaranty Corporation and any entity
succeeding to any or all of its functions under ERISA.

     Pension Plan means any "employee pension benefit plan" (as such term is
defined in Section 3(2) of ERISA), other than a Multiemployer Plan, that is
subject to Title IV of ERISA and is sponsored or maintained by the Company or
any ERISA Affiliate or to which the Company or any ERISA Affiliate contributes
or has an obligation to contribute, or in the case of a multiple employer plan
(as described in Section 4064(a) of ERISA) has made contributions at any time
during the immediately preceding five plan years.

     Permitted Acquisition means any purchase or acquisition by the Company or
any Subsidiary of all or substantially all of the assets of any other Person (or
of a particular business unit of any other Person), or of any equity interest in
any other Person, subject to the terms of this definition. No such acquisition
shall be deemed a Permitted Acquisition unless the Person being acquired is
engaged in substantially the same business as the Company. No such acquisition
that is financed, in whole or in part, with the proceeds of equity of the
Company or any of its Subsidiaries shall be deemed a Permitted Acquisition
unless such equity is the common equity of the Company or such Subsidiary,
issued substantially concurrently with such acquisition, and which equity does
not contain any put rights. All cash and other amounts used to finance Permitted
Acquisitions (which other amounts shall include all Debt or contingent
liabilities incurred by the Company or any of its Subsidiaries to finance such
acquisition or assumed by the Company or any of its Subsidiaries as a result of
such acquisition) shall not, in the aggregate, exceed $2,000,000 during the term
of this Agreement.

                                       11

<PAGE>

     Person means any natural person, corporation, partnership, limited
liability company, trust, association, Governmental Authority or unit, or any
other entity, whether acting in an individual, fiduciary or other capacity.

     Plan means any employee benefit plan maintained or contributed to by a
Borrower Party or by any trade or business (whether or not incorporated) under
common control with a Borrower Party as defined in Section 4001(b) of ERISA and
insured by the Pension Benefit Guaranty Corporation under Title IV of ERISA.

     RCRA means the Resource Conservation and Recovery Act, 42. U.S.C. Section
6901, et seq.

     Related Party - see Section 10.14.

     Release means a "release" as such term is defined in CERCLA.

     Reportable Event means any of the events set forth in Section 4043(b) of
ERISA or the regulations thereunder, a withdrawal from a Plan described in
Section 4063 of ERISA, or a cessation of operations described in Section 4062(e)
of ERISA.

     Senior Leverage Ratio means the ratio of (a) Total Senior Funded Debt as of
any day to (b) EBITDA for the Computation Period ended as of the most recent
quarter end for which the Company has delivered financial statements pursuant to
Section 10.1.1 or 10.1.2.

     Subordinated Debentures means (a) the Cdn $42,500,000 debenture dated as of
June 28, 2001 between the Company and Royal Trust Corporation of Canada as
Trustee for Zurich Insurance Company, a Switzerland insurance company,(b) the
$17,500,000 debenture dated as of June 28, 2001 between the Company and Odyssey
Reinsurance Corporation, a Delaware corporation, and (c) the $17,500,000
debenture dated as of June 28, 2001 between the Company and United States Fire
Insurance Company, a New York company.

     Subordinated Debt means, without duplication, (a) the Subordinated
Debentures, and (b) other Debt of the Company having maturities and other terms,
and which is subordinated to the obligations of the Company hereunder in a
manner satisfactory to the Bank and including such covenants and other terms
satisfactory to the Bank.

     Subsidiary means a corporation, partnership, joint venture, limited
liability company or other business entity of which a majority of the shares of
securities or other interests having ordinary voting power for the election of
directors or other governing body (other than securities or interests having
such power only by reason of the happening of a contingency) are at the time
beneficially owned, or the management of which is otherwise controlled,
directly, or indirectly through one or more intermediaries, or both, by any
Person. Subsidiary Debt means the Debt of any Subsidiary of the Company.

     Suretyship Liability means any agreement, undertaking or arrangement by
which any Person guarantees, endorses or otherwise becomes or is contingently
liable upon (by direct or indirect agreement, contingent or otherwise, to
provide funds for payment, to supply funds to or otherwise to invest in a
debtor, or otherwise to assure a creditor against loss) any indebtedness,
obligation or other liability of any other Person (other than by endorsements of
instruments in the course of collection), or guarantees the payment of dividends
or other distributions upon the shares of any other Person. The amount of any
Person's obligation under any Suretyship Liability shall (subject to any
limitation set forth therein) be deemed to be the principal amount of the debt,
obligation or other liability guaranteed thereby.

     Synthetic Lease Obligations means all monetary obligations of a Person
under (a) a so-called synthetic, off-balance sheet or tax retention lease, or
(b) an agreement for the use or possession of property creating obligations
which do not appear on the balance sheet of such

                                       12

<PAGE>

Person but which, upon the insolvency or bankruptcy of such Person, would be
characterized as the Debt of such Person (without regard to accounting
treatment).

     Taxes means any and all present or future taxes, levies, imposts,
deductions, charges or withholdings, and all liabilities with respect thereto,
excluding, in the case of the Bank, such taxes (including income taxes or
franchise taxes) as are imposed on or measured by the Bank's net income by the
jurisdiction (or any political subdivision thereof) under the laws of which the
Bank is organized or maintains a lending office.

     Termination Date means July 18, 2002 or such other date on which the
Commitment terminates pursuant to Section 6.1 or Section 12.

     Total Funded Debt means all Debt of the Company and its Subsidiaries.

     Total Leverage Ratio means the ratio of (a) Total Funded Debt as of any
date to (b) EBITDA for the Computation Period ended as of the most recent
quarter end for which the Company has delivered financial statements pursuant to
Section 10.1.1 or 10.1.2.

     Total Senior Funded Debt means all Debt of the Company and its Subsidiaries
other than Subordinated Debt.

     Type of Loan or Borrowing - see Section 2.2.

     Unfunded Pension Liability means the excess of a Pension Plan's benefit
liabilities under Section 40001(a)(16) of ERISA, over the current value of that
Pension Plan's assets, determined in accordance with the assumption used for
funding the Pension Plan pursuant to Section 412 of the Code for the applicable
plan year.

     United States Dollar, Dollar and the sign "$" mean lawful money of the
United States of America.

     Unmatured Event of Default means any event which if it continues uncured
will, with lapse of time or notice or both, constitute an Event of Default.

     Utilization Fee Rate - see Schedule 1.1.

     Welfare Plan means an "employee welfare benefit plan" as such term is
defined in Section 3(1) ERISA.

     Wholly-Owned Subsidiary means, at any time, a Subsidiary, all the shares,
partnership interest or other equity interests of which (except directors'
qualifying shares) are at such time owned, directly or indirectly, by the
Company and/or its other Subsidiaries.

     1.2  Other Interpretive Provisions.

          (a)  All terms defined in this Agreement shall have the defined
     meanings when used in any certificate or other document made or delivered
     pursuant hereto or thereto, unless otherwise defined therein.

          (b) As used herein, unless the context requires otherwise, the
     masculine, feminine and neuter genders and the singular and plural include
     one another.

          (c)  The words "herein" and "hereunder" and words of similar import
     when used in any Loan Document shall refer to the Loan Documents as a whole
     and not to any particular provision thereof. The term "including" is by way
     of example and not limitation. References herein to a Section, subsection
     or clause shall, unless the context otherwise requires, refer to the
     appropriate Section, subsection or clause in this Agreement.

          (d)  The term "or" is disjunctive; the term "and" is conjunctive. The
     term "shall" is mandatory; the term "may" is permissive. Masculine terms
     also apply to females; feminine terms also apply to males.

                                       13

<PAGE>

     1.3  Accounting Terms. All accounting terms not specifically or completely
defined in this Agreement shall be construed in conformity with, and all
financial data required to be submitted by this Agreement shall be prepared in
conformity with, GAAP applied on a consistent basis, as in effect from time to
time, applied in a manner consistent with that used in preparing the Audited
Financial Statements, except as otherwise specifically prescribed herein.

     1.4  Rounding. Any financial ratios required to be maintained by the
Company pursuant to this Agreement shall be calculated by dividing the
appropriate component by the other component, carrying the result to one place
more than the number of places by which such ratio is expressed in this
Agreement and rounding the result up or down to the nearest number (with a
round-up if there is no nearest number) to the number of places by which such
ratio is expressed in this Agreement.

     1.5  Exhibits and Schedules. All exhibits and schedules to this Agreement,
either as originally existing or as the same may from time to time be
supplemented, modified or amended, are incorporated herein by this reference. A
matter disclosed on any Schedule shall be deemed disclosed on all Schedules.

     1.6 References to Agreements and Laws. Unless otherwise expressly provided
herein, (a) references to agreements (including the Loan Documents) and other
contractual instruments shall include all amendments, restatements, extensions,
supplements and other modifications thereto (unless prohibited by any Loan
Document), and (b) references to any Law shall include all statutory and
regulatory provisions consolidating, amending, replacing, supplementing or
interpreting such Law.

     SECTION 2 COMMITMENT OF THE BANK; TYPES OF LOANS; BORROWING AND CONVERSION
               PROCEDURES.

     2.1  Commitment. On and subject to the terms and conditions of this
Agreement, the Bank agrees to make loans to the Company on a revolving basis
(each such loan, a "Loan") from time to time before the Termination Date in such
amounts as the Company may request from time to time; provided that the sum of
the aggregate principal amount of all outstanding Loans shall not at any time
exceed the amount of the Commitment.

     2.2  Various Types of Loans. Each Loan shall be divided into tranches which
are, either a Floating Rate Loan or an Offshore Rate Loan, as the Company shall
specify in the related notice of borrowing or conversion pursuant to Section 2.3
or 2.4 (each being herein called a "type" of Loan). Loans of different types may
be outstanding at the same time, it being understood, however, that (i) not more
than four different Interest Periods shall be outstanding at any one time for
all Offshore Rate Loans and (ii) the principal amount of each Offshore Rate Loan
shall at all times be $1,000,000 or a higher integral multiple of $500,000.

     2.3  Borrowing Procedures. The Company shall give notice to the Bank of
each proposed borrowing by 11:00 A.M., Chicago time, on a day which, in the case
of a Floating Rate borrowing, is the proposed date of such borrowing and, in the
case of a Offshore Rate borrowing, is at least three Business Days prior to the
proposed date of such borrowing. Each such notice

                                       14

<PAGE>

shall be effective upon receipt by the Bank, shall be in writing (or by
telephone to be promptly confirmed in writing by the Company), and shall specify
the date, amount and type of borrowing and, in the case of a Offshore Rate
borrowing, the initial Interest Period for such borrowing. Subject to the
satisfaction of the conditions precedent set forth in Section 11 with respect to
such borrowing, the Bank shall advance the requested amount to the Company in
immediately available funds on the requested borrowing date. Each borrowing
shall be on a Business Day and, in the case of a Offshore Rate borrowing, shall
be in a principal amount of $1,000,000 or a higher integral multiple of $500,000
and, in the case of Floating Rate borrowing, shall be in a principal amount of
$1,000,000 or a higher integral multiple of $500,000.

     2.4  Conversion and Continuation Procedures. Subject to the provisions of
Section 2.2, the Company may convert all or any part of any outstanding Loan
into a Loan of the other type, or continue any Offshore Rate Loan for a new
Interest Period, by giving notice to the Bank of such conversion or continuation
by 11:00 A.M., Chicago time, on a day which, in the case of a conversion into a
Floating Rate Loan, is the proposed date of such conversion and, in the case of
a conversion into or continuation of an Offshore Rate Loan, is at least three
Business Days prior to such date. Each such notice shall be effective upon
receipt by the Bank and shall specify the date and amount of such conversion or
continuation, the Loan to be so converted or continued and, in the case of a
conversion into or continuation of an Offshore Rate Loan, the initial or new (as
the case may be) Interest Period therefor. Subject to Sections 2.5 and 2.6, such
Loan shall be so converted or continued on the requested date of conversion or
continuation. Each conversion and continuation shall be on a Business Day and,
in the case of a conversion into or continuation of an Offshore Rate Loan, shall
be in a principal amount of $1,000,000 or a higher integral multiple of
$500,000. Any conversion of an Offshore Rate Loan on a day other than the last
day of the current Interest Period therefor shall be subject to Section 8.5. If
the Company fails to give timely notice of the continuation of any Offshore Rate
Loan, such Offshore Rate Loan shall automatically convert to a Floating Rate
Loan on the last day of the current Interest Period therefor.

     2.5  Warranty. Each notice of borrowing pursuant to Section 2.3 shall
automatically constitute a warranty by the Company to the Bank to the effect
that on the date of such requested borrowing, (a) the warranties of the Company
contained in Section 9 of this Agreement shall be true and correct as of such
requested date as though made on the date thereof and (b) no Event of Default or
Unmatured Event of Default shall exist or will result therefrom.

     2.6  Conditions. Notwithstanding any other provision of this Agreement, the
Bank shall not be obligated to make any Loan or to convert into or permit the
continuation of any Offshore Rate Loan if, in any such case, an Event of Default
or Unmatured Event of Default exists or would result therefrom. If, pursuant to
this Section 2.6, any Offshore Rate Loan is continued, such Loan shall, unless
then repaid in full, automatically become a Floating Rate Loan at the end of
such Loan's then-current Interest Period.

     SECTION 3 NOTE EVIDENCING LOANS.

     3.1 Note. The Loans of the Bank shall be evidenced by a promissory note
(the "Note") substantially in the form set forth in Exhibit A, with appropriate
insertions, dated the Effective

                                       15

<PAGE>

Date (or such earlier date as shall be satisfactory to the Bank), payable to the
order of the Bank. All Loans shall be paid in full on the Termination Date.

     3.2  Recordkeeping. The Bank shall record in its records, or at its option
on the schedule attached to the Note, the date and amount of each Loan made by
the Bank, each repayment or conversion thereof and, in the case of each Offshore
Rate Loan, the dates on which each Interest Period for such Loan shall begin and
end. The aggregate unpaid principal amount so recorded shall (in the absence of
demonstrable error) be conclusive evidence of the principal amount owing and
unpaid on the Note. The failure to so record any such amount or any error in so
recording any such amount shall not, however, limit or otherwise affect the
obligations of the Company hereunder or under the Note to repay the principal
amount of the Loans together with all interest accruing thereon.

     SECTION 4 INTEREST.

     4.1  Interest Rates. The Company hereby promises to pay interest on the
unpaid principal amount of each Loan (before and after default, before and after
maturity, before and after judgment, and before and after the commencement of
any proceeding under any Debtor Relief Laws) from the date borrowed until paid
in full (whether by acceleration or otherwise) for the period commencing on the
date of such Loan until such Loan is paid in full, as follows:

          (a)  at all times while such Loan is a Floating Rate Loan, at a rate
     per annum equal to the Base Rate from time to time in effect;

          (b)  at all times while such Loan is an Offshore Rate Loan, at a rate
     per annum equal to the Offshore Rate applicable to each Interest Period for
     such Loan plus the Margin as in effect from time to time; and

          (c)  notwithstanding the provisions of the preceding clauses (a) and
     (b), (i)(A) in the event that the Bank shall not receive evidence
     satisfactory to it that the Old Lyme Purchase Agreement has been executed
     by August 31, 2001, or (B) the Bank shall not receive evidence satisfactory
     to it that the transactions contemplated in the Old Lyme Purchase Agreement
     have been consummated by October 31, 2001, at a rate per annum equal to the
     Base Rate from time to time in effect (but not less than the applicable
     interest rate for such Loan as at such due date) plus 2%, and (ii) in the
     event that any principal of any Loan is not paid when due (whether by
     acceleration or otherwise), after the due date of such principal until such
     principal is paid, at a rate per annum equal to the rate specified in
     clause (i) above plus 2%.

     4.2  Interest Payment Dates. Accrued interest on each Floating Rate Loan
shall be payable on the last day of each calendar quarter and at maturity,
commencing with the first of such dates to occur after the date hereof. Accrued
interest on each Offshore Rate Loan shall be payable on the last day of each
Interest Period relating to such Loan (and, in the case of an Offshore Rate Loan
with a six-month Interest Period, on the three-month anniversary of the first
day of such Interest Period) and at maturity. After maturity, accrued interest
on all Loans shall be payable on demand.

                                       16

<PAGE>

     4.3  Setting and Notice of Offshore Rates. The applicable Offshore Rate for
each Interest Period shall be determined by the Bank, and notice thereof shall
be given by the Bank promptly to the Company. Each determination of the
applicable Offshore Rate by the Bank shall be conclusive and binding upon the
Company, in the absence of demonstrable error. The Bank shall, upon written
request of the Company, deliver to the Company a statement showing the
computations used by the Bank in determining any applicable Offshore Rate
hereunder.

     4.4  Computation of Interest. Interest shall be computed for the actual
number of days elapsed on the basis of a 360-day year; provided that at all
times that the Base Rate is determined by reference to the Bank's prime rate,
interest on Floating Rate Loans shall be computed for the actual number of days
elapsed on the basis of a year of 365 or, if applicable, 366 days. The
applicable interest rate under clauses (a) and (c) of Section 4.1 shall (to the
extent applicable in the case of clause (c)) change simultaneously with each
change in the Base Rate.

     SECTION 5 FEES.

     5.1  Facility Fee. The Company agrees to pay to the Bank a facility fee for
the period from and including the date of the execution and delivery of this
Agreement to the Termination Date equal to the Facility Fee Rate on the daily
average amount of the Commitment (whether used or unused). Such facility fee
shall be payable in arrears on the last day of each calendar quarter and on the
Termination Date for any period then ending for which such facility fee shall
not have been theretofore paid. The facility fee shall be computed for the
actual number of days elapsed on the basis of a year of 360 days.

     5.2  Utilization Fee. (a) If on any day of any calendar quarter, the
aggregate outstanding amount of Loans outstanding exceeds 50% of the
then-applicable Commitment, the Company agrees to pay the Bank a utilization fee
equal to the Utilization Fee Rate on the outstanding Loans. Such utilization fee
shall be payable in arrears on the last day of each calendar quarter and on the
Termination Date for any period then ending for which such utilization fee shall
not have been theretofore paid. The utilization fee shall be computed for the
actual number of days elapsed on the basis of a year of 360 days. For purposes
of computing the utilization fee, the Commitment shall be deemed to be used in
an amount equal to the sum of the principal amount of all outstanding Loans.

     5.3  Closing Fee. The Company agrees to pay the Bank a closing fee of
$5,000 on the Effective Date.

                                       17

<PAGE>

     SECTION 6 REDUCTION OR TERMINATION OF THE COMMITMENT;
               VOLUNTARY PREPAYMENTS.

     6.1  Reduction or Termination of the Commitment. The Company may from time
to time prior to the Termination Date on at least two Business Days' prior
written notice received by the Bank permanently reduce the amount of the
Commitment to an amount not less than the aggregate unpaid principal amount of
the Loans then outstanding. Any such reduction shall be in the amount of
$1,000,000 or a higher integral multiple of $500,000. The Company may at any
time on like notice prior to the Termination Date terminate the Commitment;
provided that, concurrently with such termination, the Company shall pay in full
all Loans and all other then-payable obligations of the Company hereunder in
respect of the Commitment.

     6.2 Prepayments.

     6.2.1 Voluntary Prepayments. The Company may from time to time prepay the
Loans in whole or in part, provided that (i) the Company shall give the Bank not
less than one Business Day's prior notice thereof, specifying the Loans to be
prepaid and the date and amount of prepayment, (ii) each partial prepayment
shall be in a principal amount of $500,000 or an integral multiple thereof and
(iii) any prepayment of Offshore Rate Loans shall be subject to Section 8.5.

     6.2.2 Prepayments of Offshore Rate Loans. Any prepayment of an Offshore
Rate Loan pursuant to Section 6.2.1 shall include accrued interest on the
principal amount being prepaid and, if not made on the last day of the Interest
Period therefor, shall be subject to Section 8.5.

     SECTION 7 MAKING AND APPLICATION OF PAYMENTS; SETOFF.

     7.1  Making of Payments. All payments of principal of or interest on the
Note, and any fees or other amounts payable hereunder, shall be made by the
Company to the Bank in immediately available funds at its office in Chicago not
later than 1:00 P.M., Chicago time, on the date due; and funds received after
that hour shall be deemed to have been received by the Bank on the next
following Business Day.

     7.2 Application of Certain Payments. Each payment of principal shall be
applied to such Loans as the Company shall direct by notice to be received by
the Bank on or before the date of such payment, or in the absence of such
notice, as the Bank shall determine in its discretion.

     7.3  Due Date Extension. If any payment of principal or interest with
respect to any Loan, or any fee, falls due on a Saturday, Sunday or other day
which is not a Business Day, then such due date shall be extended to the next
following Business Day (unless, in the case of an Offshore Rate Loan, such next
following Business Day is the first Business Day of a calendar month, in which
case such due date shall be the immediately preceding Business Day), and
additional interest or fees shall accrue and be payable for the period of such
extension.

     7.4  Setoff. The Company agrees that the Bank and any other holder of the
Note have all rights of set-off and bankers' lien provided by applicable law,
and in addition thereto, the

                                       18

<PAGE>

Company agrees that at any time (i) any payment or other amount owing by the
Company under this Agreement is then due to the Bank or any such holder or (ii)
any Unmatured Event of Default under Section 12.1.4 or any Event of Default
exists, the Bank and any such holder may apply to the payment of such payment or
other amount (or, in the case of clause (ii), to any obligations of the Company
hereunder, whether or not then due) any and all balances, credits, deposits,
accounts or moneys of the Company then or thereafter with the Bank or such
holder.

     SECTION 8 INCREASED COSTS; SPECIAL PROVISIONS FOR OFFSHORE RATE LOANS.

     8.1  Taxes. (a) Any and all payments by the Company to the Bank under this
Agreement and any other Loan Document shall be made free and clear of, and
without deduction or withholding for any Taxes. In addition, the Company shall
pay all Other Taxes.

          (b)  The Company agrees to indemnify and hold harmless the Bank for
     the full amount of Taxes or Other Taxes (including any Taxes or Other Taxes
     imposed by any jurisdiction on amounts payable under this Section 8.1) paid
     by the Bank and any liability (including penalties, interest, additions to
     tax and expenses) arising therefrom or with respect thereto, whether or not
     such Taxes or Other Taxes were correctly or legally asserted. Payment under
     this indemnification shall be made within 30 days after the date the Bank
     makes written demand therefor.

          (c)  If the Company shall be required by law to deduct or withhold any
     Taxes or Other Taxes from or in respect of any sum payable hereunder to the
     Bank, then:

               (1)  the sum payable shall be increased as necessary so that
          after making all required deductions and withholdings (including
          deductions and withholdings applicable to additional sums payable
          under this Section 8.1) the Bank receives an amount equal to the sum
          it would have received had no such deductions or withholdings been
          made;

               (2)  the Company shall make such deductions and withholdings;

               (3)  the Company shall pay the full amount deducted or withheld
          to the relevant taxing authority or other authority in accordance with
          applicable law; and

               (4)  the Company shall also pay to the Bank at the time interest
          is paid, all additional amounts which the Bank specifies as necessary
          to preserve the after-tax yield the Bank would have received if such
          Taxes or Other Taxes had not been imposed.

          (d)  On request of the Bank, the Company shall furnish the Bank the
     original or a certified copy of a receipt evidencing payment of Taxes or
     Other Taxes, or other evidence of payment satisfactory to the Bank.

          (e)  If the Company is required to pay additional amounts to the Bank
     pursuant to subsection (c) of this Section 8.1, then the Bank shall use
     reasonable efforts (consistent with legal and regulatory restrictions) to
     change the jurisdiction of its Lending Office so as to

                                       19

<PAGE>

     eliminate any such additional payment by the Company which may thereafter
     accrue, if such change in the judgment of the Bank is not otherwise
     disadvantageous to the Bank.

     8.2  Increased Costs. (a) If, after the date hereof, the adoption of or any
change in any applicable Law, or any change in the interpretation or
administration of any applicable Law by any Governmental Authority, central bank
or comparable agency charged with the interpretation or administration thereof,
or compliance by the Bank (or any Eurodollar Office of the Bank) with any
request or directive (whether or not having the force of law) of any such
authority, central bank or comparable agency

          (1)  shall subject the Bank (or any Eurodollar Office of the Bank) to
     any tax, duty or other charge with respect to its Offshore Rate Loans, the
     Note or its obligation to make Offshore Rate Loans, or shall change the
     basis of taxation of payments to the Bank of the principal of or interest
     on its Offshore Rate Loans or any other amounts due under this Agreement in
     respect of its Offshore Rate Loans or its obligation to make Offshore Rate
     Loans (except for changes in the rate of tax on the overall net income of
     the Bank or its Eurodollar Office imposed by the state in which the Bank is
     organized or the jurisdiction in which the Bank's Eurodollar Office is
     located); or

          (2)  shall impose, modify or deem applicable any reserve (including
     any reserve imposed by the Board of Governors of the Federal Reserve
     System, but excluding any reserve included in the determination of interest
     rates pursuant to Section 4), special deposit or similar requirement
     against assets of, deposits with or for the account of, or credit extended
     by, the Bank (or any Eurodollar Office of the Bank); or

          (3)  shall impose on the Bank (or its Eurodollar Office) any other
     condition affecting, or increasing the cost to the Bank of making or
     maintaining, the Offshore Rate Loans, the Note or its obligation to make
     Offshore Rate Loans;

and the result of any of the foregoing is to increase the cost to (or to impose
a cost on) the Bank (or any Eurodollar Office of the Bank) of making or
maintaining any Offshore Rate Loan, or to reduce the amount of any sum received
or receivable by the Bank (or its Eurodollar Office) under this Agreement or
under the Note with respect thereto, then within five days after demand by the
Bank (which demand shall be accompanied by a statement setting forth the basis
of such demand), the Company shall pay directly to the Bank such additional
amount or amounts as will compensate the Bank for such increased cost or such
reduction.

     (b)  If the Bank shall reasonably determine that the adoption or phase-in
of, or any change in, any applicable Law regarding capital adequacy, or any
change in the interpretation or administration of any applicable Law regarding
capital adequacy by any Governmental Authority, central bank or comparable
agency charged with the interpretation or administration thereof, or compliance
by the Bank (or its Eurodollar Office) or any Person controlling the Bank with
any request or directive regarding capital adequacy (whether or not having the
force of law) of any such authority, central bank or comparable agency, has or
would have the effect of reducing the rate of return on the Bank's or such
controlling Person's capital as a consequence of the Bank's obligations
hereunder (including the Commitment) to a level below that which the Bank or
such controlling Person could have achieved but for such adoption, change or

                                       20

<PAGE>

compliance (taking into consideration the Bank's or such controlling Person's
policies with respect to capital adequacy) by an amount deemed by the Bank or
such controlling Person to be material, then from time to time, within five
Business Days after demand by the Bank, the Company shall pay to the Bank such
additional amount or amounts as will compensate the Bank or such controlling
Person for such reduction. A statement of the Bank as to any such additional
amount (including calculations thereof in reasonable detail) shall, in the
absence of demonstrable error, be conclusive and binding on the Company. In
determining such amount, the Bank may use any reasonable method of averaging and
attribution it deems appropriate.

     (c)  The Bank will promptly notify the Company of any event of which it has
knowledge which will entitle the Bank to compensation pursuant to this Section
8.2 and will designate a different Eurodollar Office if such designation will
not, in the sole judgment of the Bank, be otherwise disadvantageous to the Bank.

     8.3  Basis for Determining Interest Rate Inadequate or Unfair. If with
respect to any Interest Period deposits in Dollars (in the applicable amounts)
are not being offered to the Bank in the relevant market for such Interest
Period, the Bank otherwise reasonably determines (which determination shall be
binding and conclusive on the Company) that by reason of circumstances affecting
the interbank eurodollar market adequate and reasonable means do not exist for
ascertaining the underlying rate for such Offshore Rate or such underlying
interest rate does not adequately and fairly reflect the cost to the Bank of
funding such Offshore Rate Loan, then the Bank shall promptly notify the Company
thereof and until the Bank revokes such notice, (i) the Bank shall be under no
obligation to make, convert into or continue any Offshore Rate Loan and (ii) on
the last day of the current Interest Period for each Offshore Loan, such Loan
shall, unless then repaid in full, automatically convert to a Floating Rate
Loan.

     8.4  Changes in Law Rendering Certain Loans Unlawful. If the Bank
determines that any change in (including the adoption of any new) applicable
Law, or any change in the interpretation of applicable Law by any Governmental
Authority, should make it (or in the good faith judgment of the Bank cause a
substantial question as to whether it is) unlawful for the Bank to make,
maintain or fund Offshore Rate Loans, then the Bank shall promptly notify the
Company and, until the Bank notifies the Company that the circumstances giving
rise to such determination no longer exist, (i) the Bank shall have no
obligation to make, convert into or continue any Offshore Rate Loan and (ii) on
the last day of the current Interest Period for each Offshore Rate Loan (or, if
the Bank so requests, on such earlier date as may be required by the relevant
Law or interpretation), such Offshore Rate Loan shall, unless then repaid in
full, automatically Convert to a Floating Rate Loan.

     8.5  Funding Losses. The Company hereby agrees that upon demand by the Bank
(which demand shall be accompanied by a statement setting forth the basis for
the calculations of the amount being claimed) the Company will indemnify the
Bank against any net loss or expense which the Bank may sustain or incur
(including any net loss or expense incurred by reason of the liquidation or
reemployment of deposits or other funds acquired by the Bank to fund or maintain
Offshore Rate Loans, but excluding lost profits), as reasonably determined by
the Bank, as a result of (i) any payment, prepayment or conversion of any
Offshore Rate Loan on a date other than the last day of an Interest Period for
such Loan (including any conversion pursuant to

                                       21

<PAGE>

Section 8.4) or (ii) any failure of the Company to borrow, convert or continue
any Loan on a date specified therefor in a notice of borrowing, conversion or
continuation pursuant to this Agreement. For this purpose, all notices to the
Bank pursuant to this Agreement shall be deemed to be irrevocable.

     8.6  Right of Bank to Fund through Other Offices. The Bank may, if it so
elects, fulfill its commitment as to any Offshore Rate Loan by causing a foreign
branch or affiliate of the Bank to make such Loan, provided that in such event
for the purposes of this Agreement such Loan shall be deemed to have been made
by the Bank and the obligation of the Company to repay such Loan shall
nevertheless be to the Bank and shall be deemed held by it, to the extent of
such Loan, for the account of such branch or affiliate.

     8.7  Discretion of Bank as to Manner of Funding. Notwithstanding any
provision of this Agreement to the contrary, the Bank shall be entitled to fund
and maintain its funding of all or any part of its Loans in any manner it sees
fit, it being understood, however, that for purposes of this Agreement all
determinations hereunder shall be made as if the Bank had actually funded and
maintained each Offshore Rate Loan during each Interest Period for such Loan
through the purchase of deposits having a maturity corresponding to such
Interest Period and bearing an interest rate equal to the Offshore Rate for such
Interest Period.

     8.8  Conclusiveness of Statements; Survival of Provisions. Determinations
and statements of the Bank pursuant to Section 8.1, 8.2, 8.3, 8.4 or 8.5 shall
be conclusive absent demonstrable error. The Bank may use reasonable averaging
and attribution methods in determining compensation under Sections 8.1, 8.4, and
8.5 and the provisions of such Sections shall survive termination of this
Agreement.

     SECTION 9 WARRANTIES.

     To induce the Bank to enter into this Agreement and to make Loans
hereunder, the Company warrants to the Bank that:

     9.1  Organization, etc. The Company is a corporation duly organized,
validly existing and in good standing under the laws of the Province of Ontario,
Canada; each Subsidiary is a corporation, limited partnership or other entity,
as the case may be, duly organized, validly existing and, if applicable, in good
standing under the jurisdiction of its organization; the Company and each
Subsidiary is duly qualified to do business in each jurisdiction where the
nature of its business makes such qualification necessary, except where the
failure to be so qualified would not have a Material Adverse Effect; and the
Company and each Subsidiary has full power and authority to own its property and
conduct its business as presently conducted by it.

     9.2  Authorization; No Conflict. The execution and delivery by the Company
of this Agreement and each other Loan Document to which it is a party, the
borrowings hereunder, the execution and delivery by each Subsidiary of each Loan
Document to which it is a party and the performance by each of the Company and
each Subsidiary of its obligations under each Loan Document to which it is a
party are within the organizational powers of the Company and each Subsidiary,
have been duly authorized by all necessary action on the part of the Company and

                                       22

<PAGE>

each Subsidiary (including any necessary member, general partner or shareholder
action), have received all necessary governmental approval (if any shall be
required), and do not and will not (a) violate any provision of Law or any
order, decree or judgment of any court or other government agency which is
binding on the Company or any Subsidiary, (b) contravene or conflict with, or
result in a breach of, any provision of the operating agreement, certificate of
incorporation, by-laws, partnership agreement or other organizational documents
of the Company or any Subsidiary or of any agreement, indenture, instrument or
other document, or any judgment, order or decree, which is binding on the
Company or any Subsidiary or (c) result in, or require, the creation or
imposition of any Lien on any property of the Company or any Subsidiary.

     9.3  Validity and Binding Nature. This Agreement is, and upon the execution
and delivery thereof each other Loan Document to which the Company is a party
will be, the legal, valid and binding obligation of the Company, enforceable
against the Company in accordance with its terms, except that enforceability may
be limited by bankruptcy, insolvency, fraudulent conveyance, fraudulent
transfer, reorganization, moratorium or other similar laws now or hereafter in
effect relating to creditors' rights generally and by general principles of
equity (regardless of whether enforcement is sought in equity or at law); and
each Loan Document will be, upon the execution and delivery thereof by each
Subsidiary which is a party thereto, the legal, valid and binding obligation of
such Subsidiary, enforceable against such Subsidiary in accordance with its
terms, except that enforceability may be limited by bankruptcy, insolvency,
fraudulent conveyance, fraudulent transfer, reorganization, moratorium or other
similar laws now or hereafter in effect relating to creditors' rights generally
and by general principles of equity (regardless of whether enforcement is sought
in equity or at law).

     9.4  Financial Information.

          (a)  The Audited Financial Statements of the Company, the unaudited
     financial statements of the Company as of March 31, 2001 the unaudited
     proforma income statements of the Company for the six months ending June
     30, 2001, giving effect to the Acquisitions, copies of which have been
     furnished to the Bank, present fairly the financial position of the Company
     as of said date. The audited financial statements of Burnham and Kaye
     Group, each as of December 31, 2000 and the unaudited financial statements
     of Flanagan as of December 31, 2000, copies of which have been furnished to
     the Bank, were prepared in accordance with GAAP and present fairly the
     financial position of each such Person as of said date.

          (b)  The projections delivered by the Bank to the Company from time to
     time shall be based on the reasonable assumptions set forth therein.

          (c)  The Company has provided to the Bank all material documents
     related to the Debt of the Company and its Subsidiaries, which Debt is
     listed on Schedule 10.7 and which documents present fairly the terms of
     such Debt.

                                       23

<PAGE>

     9.5  No Material Adverse Change. Since March 31, 2001, no events have
occurred which, individually or in the aggregate, have had or are reasonably
likely to have a Material Adverse Effect.

     9.6  Capitalization. (a) The authorized capital stock of the Company
consists of (a) an unlimited number of common shares of the Company (the "Common
Shares") and (b) an unlimited number of preference shares of the Company (the
"Preferred Shares"). As of the date hereof, (a) 19,870,405 Common Shares and (b)
no Preferred Shares were issued and outstanding. After giving effect to the
Acquisitions, (a) 21,613,505 Common Shares and (b) no Preferred Shares will be
issued and outstanding. After giving effect to the Acquisitions, all of the
issued and outstanding Common Shares will be validly issued, fully paid and
nonassessable. No Common Shares or Preferred Shares are, or after giving effect
to the Acquisitions will be, held in the treasury of the Company or by any
Subsidiary of the Company. There are, and after giving effect to the
Acquisitions and other than as contemplated in the Subordinated Debentures, will
be, no issued or outstanding bonds, debentures, notes, convertible notes or
other indebtedness of the Company having the right to vote on any matters on
which shareholders of the Company may vote. Except for the agreements or
arrangements described in Schedule 9.6 and the Subordinated Debentures, there
are, and after giving effect to the Acquisitions, will be, no options, warrants
or other rights, agreements, arrangements or commitments of any character
relating to the issued or unissued stock of the Company or conditionally or
absolutely obligating the Company or any Subsidiary to issue or sell any shares
of stock of, or other equity interests in, the Company. All Common Shares
subject to issuance as aforesaid, upon issuance on the terms and conditions
specified in the instruments pursuant to which they are issuable, will be duly
authorized, validly issued, fully paid and non-assessable. There are, and after
giving effect to the Acquisitions, will be, no outstanding obligations (whether
conditional or absolute) of the Company to repurchase, redeem or otherwise
acquire any shares or other equity interests of Common Shares except as set
forth in Schedule 9.6. Each outstanding share of stock or other equity interest
of each Subsidiary is, and after giving effect to the Acquisitions, will be,
duly authorized, validly issued, fully paid and nonassessable and each such
share or other equity interest owned by the Company is free and clear of all
security interests, liens, claims, pledges, options, rights of first refusal,
agreements, limitations on the Company's voting rights, charges and other
encumbrances of any nature whatsoever. There are, and after giving effect to the
Acquisitions, will be, no earn-out obligations of the Company or any of its
Subsidiaries other than those set forth in Schedule 9.6.

     9.7  Litigation and Contingent Liabilities. No litigation (including,
without limitation, derivative actions), arbitration proceeding or governmental
proceeding is pending or, to the Company's knowledge, threatened against the
Company or any Subsidiary which is reasonably likely to have a Material Adverse
Effect, except as set forth on Schedule 9.7. Other than any liability incident
to such litigation or proceeding, neither the Company nor any Subsidiary has any
material contingent liabilities, obligations with respect to letters of credit,
guaranties, debentures or stock purchases not provided for or disclosed in the
financial statements referred to in Section 9.4 or listed on Schedule 9.7.

     9.8  Ownership of Properties; Liens. Each of the Company and each
Subsidiary owns good and marketable title to, or a valid leasehold interest in,
all of its material properties and

                                       24

<PAGE>

assets, real and personal, tangible and intangible, of any nature whatsoever
(including patents, trademarks, trade names, service marks and copyrights), free
and clear of all Liens, charges and claims (including infringement claims with
respect to patents, trademarks, copyrights and the like) except as permitted
pursuant to Section 10.9.

     9.9  Subsidiaries. The Company has no Subsidiaries except those listed in
Schedule 9.9.

     9.10 ERISA Compliance.

          (a)  Each Plan is in compliance in all material respects with the
     applicable provisions of ERISA, the Code and other federal or state Laws.
     Each Plan that is intended to qualify under Section 401(a) of the Code has
     received a favorable determination letter from the IRS or an application
     for such a letter is currently being processed by the IRS with respect
     thereto and, to the best knowledge of the Company, nothing has occurred
     which would prevent, or cause the loss of, such qualification. The Company
     and each ERISA Affiliate have made all required contributions to each Plan
     subject to Section 412 of the Code, and no application for a funding waiver
     or an extension of any amortization period pursuant to Section 412 of the
     Code has been made with respect to any Plan.

          (b)  There are no pending or, to the best knowledge of the Company,
     threatened claims, actions or lawsuits, or action by any Governmental
     Authority, with respect to any Plan that has a Material Adverse Effect.
     There has been no prohibited transaction or violation of the fiduciary
     responsibility rules with respect to any Plan that has a Material Adverse
     Effect.

          (c)  (i) No ERISA Event has occurred or is reasonably expected to
     occur; (ii) no Pension Plan has any Unfunded Pension Liability; (iii)
     neither the Company nor any ERISA Affiliate has incurred, or reasonably
     expects to incur, any liability under Title IV of ERISA with respect to any
     Pension Plan (other than premiums due and not delinquent under Section 4007
     of ERISA); (iv) neither the Company nor any ERISA Affiliate has incurred,
     or reasonably expects to incur, any liability (and no event has occurred
     which, with the giving of notice under Section 4219 of ERISA, would result
     in such liability) under Sections 4201 or 4243 of ERISA with respect to a
     Multiemployer Plan; and (v) neither the Company nor any ERISA Affiliate has
     engaged in a transaction that could be subject to Sections 4069 or 4212(c)
     of ERISA.

     9.11 Regulation U. The Company is not engaged principally, or as one of its
important activities, in the business of extending credit for the purpose of
purchasing or carrying Margin Stock.

     9.12 Taxes. Each of the Company and each Subsidiary has filed all material
tax returns and reports required by Law to have been filed by it and has paid
all taxes and governmental charges thereby shown to be owing, except for any
such taxes or charges which are being diligently contested in good faith by
appropriate proceedings and for which adequate reserves in accordance with GAAP
shall have been set aside on its books.

                                       25

<PAGE>

     9.13 Environmental Warranties. Except as set forth on Schedule 9.13:

     (a)  to the Company's knowledge, all facilities and property (including
underlying groundwater) owned, leased or operated by the Company or any of its
Subsidiaries are owned, leased or operated by the Company and its Subsidiaries
in material compliance with all Environmental Laws;

     (b)  to the Company's knowledge, there have been no past and there are no
pending or threatened

          (1)  claims, complaints, notices or requests for information received
     by the Company or any of its Subsidiaries with respect to any alleged
     violation of any Environmental Law, or

          (2)  complaints, notices or inquiries to the Company or any of its
     Subsidiaries regarding potential liability under any Environmental Law;

     (c)  there have been no Releases of Hazardous Materials at, on or under any
property or facility now owned, leased or operated by (or, to the Company's
knowledge, at, on or under any property or facility previously owned, leased or
operated by) the Company or any of its Subsidiaries that, singly or in the
aggregate, have had, or may reasonably be expected to have, a Material Adverse
Effect;

     (d)  to the Company's knowledge, the Company and its Subsidiaries have been
issued and are in material compliance with all permits, licenses and other
authorizations required by Environmental Laws;

     (e)  no property or facility now owned, leased or operated by the Company
or any of its Subsidiaries is listed or proposed for listing on the National
Priorities List pursuant to CERCLA, on the CERCLIS or on any similar state list
of sites requiring investigation or clean-up;

     (f)  to the Company's knowledge, no property or facility previously owned,
leased or operated by the Company or any of its Subsidiaries is listed or
proposed for listing on the National Priorities List pursuant to CERCLA, on the
CERCLIS or on any similar state list of sites requiring investigation or
clean-up (i) as a result of actions or inactions (including but not limited to
the operating, use, or leasing of said property or facility) attributable to the
Company or any of its Subsidiaries or (ii) which may reasonably be expected to
have, a Material Adverse Effect;

     (g)  there are no underground storage tanks, active or abandoned, including
petroleum storage tanks, on or under any property or facility now owned, leased
or operated by (or, to the Company's knowledge, on or under any property or
facility previously owned, leased or operated by) the Company or any of its
Subsidiaries that, singly or in the aggregate, have had, or may reasonably be
expected to have, a Material Adverse Effect;

                                       26

<PAGE>

     (h)  to the Company's knowledge, neither the Company nor any of its
Subsidiaries has transported or arranged for the transportation or disposal of
any Hazardous Material to any location which is listed or proposed for listing
on the National Priorities List pursuant to CERCLA, on the CERCLIS or on any
similar state list or which is the subject of federal, state or local
enforcement actions or other investigations which may lead to claims against the
Company or such Subsidiary for any remedial work, damage to natural resources or
personal injury, including claims under CERCLA, that, singly or in the aggregate
with all other such claims, have had, or may reasonably be expected to have, a
Material Adverse Effect;

     (i)  there are no polychlorinated biphenyls or friable asbestos present at
any property or facility now owned, leased or operated by (or, to the Company's
knowledge, present at any property or facility previously owned, leased or
operated by) the Company or any of its Subsidiaries that, singly or in the
aggregate, have had, or may reasonably be expected to have, a Material Adverse
Effect; and

     (j)  to the Company's knowledge, no condition exists at, on or under any
property or facility now or previously owned, leased or operated by the Company
or any of its Subsidiaries which would give rise to liability under any
Environmental Law that, singly or in the aggregate with all other such
conditions, has had, or may reasonably be expected to have, a Material Adverse
Effect.

     9.14 Regulated Entities. None of the Company, any Person controlling the
Company or any Subsidiary, is an "Investment Company" within the meaning of the
Investment Company Act of 1940. The Company is not subject to regulation under
the Public Utility Holding Company Act of 1935, the Federal Power Act, the
Interstate Commerce Act, any state public utilities code, or any other federal,
state or provincial statute or regulation limiting its ability to incur
Indebtedness.

     9.15 Absence of Default. Neither the Company nor any Subsidiary is in
material default under any material contract to which it is a party or by which
it is bound.

     9.16 Information. Taken as a whole, all written information heretofore or
contemporaneously herewith furnished by the Company or any Subsidiary to the
Bank for purposes of or in connection with this Agreement and the transactions
contemplated hereby is, and all written information hereafter furnished by or on
behalf of the Company or any Subsidiary to the Bank pursuant hereto or in
connection herewith will be, true and accurate in every material respect on the
date as of which such information is dated or certified, and such information
taken as a whole is not, or at the time of delivery thereof will not be,
incomplete by omitting to state any material fact necessary to make such
information not misleading (it being understood that the Company does not
warrant the accuracy of any projections provided to the Bank pursuant hereto or
in connection herewith, but the Company warrants that all such projections have
been or will be prepared in good faith and have represented or will represent a
reasonable estimate of the anticipated financial condition and results of
operations for the period(s) in question based upon assumptions which the
Company believes (at the time of preparation) to be reasonable).

                                       27

<PAGE>

     9.17 Acquisitions. (a) The Company has heretofore furnished to the Bank a
true and correct copy of each of the Acquisition Agreements.

     (b)  Each of the Company and each other party (other than individuals) to
each of the Acquisition Agreements, has duly taken all necessary corporate or
other organizational action to authorize the execution, delivery and performance
of such Acquisition Agreement and the consummation of transactions contemplated
thereby.

     (c)  Each of the Acquisitions will comply in all material respects with all
applicable legal requirements, and all necessary governmental, regulatory,
creditor, shareholder, member and other consents, approvals and exemptions
required to be obtained by the Company and each other party to the applicable
Acquisition Agreement in connection with the related Acquisition will be, prior
to consummation of such Acquisition, duly obtained and will be in full force and
effect.

     (d)  The execution and delivery of each of the Acquisition Agreements did
not, and the consummation of the related Acquisition will not, violate any
statute or regulation of the United States (including, without limitation, any
securities Law) or of any state or other applicable jurisdiction, or any order,
judgment or decree of any court or governmental body binding on the Company or
any other party to the applicable Acquisition Agreement, or result in a breach
of, or constitute a default under, any material agreement, indenture,
instrument, order or decree to which the Company is a party or by which the
Company is bound or to which any other party to the applicable Acquisition
Agreement is a party or by which any such party is bound.

     (e)  No statement or representation made in any of the Acquisition
Agreements by the Company or any other Person, contains any untrue statement of
a material fact or omits to state any material fact required to be stated
therein or necessary in order to make the statements made therein, in light of
the circumstances under which they are made, not misleading.

     SECTION 10 COVENANTS.

     Until the expiration or termination of the Commitment and thereafter until
all obligations of the Company hereunder and under the Note are paid in full,
the Company agrees that, unless at any time the Bank shall otherwise expressly
consent in writing, it will:

     10.1 Reports, Certificates and Other Information. Furnish to the Bank:

     10.1.1 Audit Report. Promptly when available and in any event within 90
days after the close of each Fiscal Year, a copy of the annual audit report of
the Company and its Subsidiaries for such Fiscal Year, including therein
consolidated balance sheets of the Company and its Subsidiaries as of the end of
such Fiscal Year and consolidated statements of earnings and cash flow of the
Company and its Subsidiaries for such Fiscal Year, which audit report shall be
without qualification as to going concern or scope and shall be prepared by
PricewaterhouseCoopers or other independent auditors selected by the Company and
reasonably acceptable to the Bank, together with a written statement from such
auditors to the effect that in making the examination necessary for the signing
of such audit report by such accountants, they

                                       28

<PAGE>

have not become aware of any Event of Default or Unmatured Event of Default that
has occurred and is continuing or, if they have become aware of any such event,
describing it in reasonable detail.

     10.1.2 Quarterly Reports. Promptly when available and in any event within
45 days after the end of each Fiscal Quarter (except the last Fiscal Quarter of
any Fiscal Year), (i) consolidated statements of cash and Cash Equivalent
Investments not held in a fiduciary capacity ("Non-Fiduciary Cash") (excluding
Non-Fiduciary Cash of Old Lyme), (ii) consolidated statements of cash and Cash
Equivalent Investments held in a fiduciary capacity ("Fiduciary Cash")
(excluding Fiduciary Cash of Old Lyme), (iii) consolidated statements of
accounts receivable detailing the aging of such receivables, (iv) consolidated
statements of accounts payable, each for such month, (v) a consolidated balance
sheet of the Company and its Subsidiaries as of the end of such Fiscal Quarter
and (vi) consolidated statements of earnings and cash flows for such Fiscal
Quarter and for the period beginning with the first day of the applicable Fiscal
Year and ending on the last day of such Fiscal Quarter, together with a
certificate of the chief financial officer, the treasurer or the controller of
the Company, certifying that such financial statements fairly present the
financial condition and results of operations of the Company and its
Subsidiaries as of the dates and periods indicated, subject to changes resulting
from normal year-end adjustments.

     10.1.3 Reports - Acquisitions. Prior to September 1, 2001, audited
financial statements for Burnham for the six months ended June 30, 2001, audited
financial statements for Flanagan for the six months ended June 30, 2001 and
unaudited financial statements for Kaye Group for the six months ended June 30,
2001.

     10.1.4 Certificates. Contemporaneously with the furnishing of a copy of
each annual audit report pursuant to Section 10.1.1 and of each set of
statements as of the end of any Fiscal Quarter pursuant to Section 10.1.2, a
duly completed certificate in the form of Exhibit B, with appropriate
insertions, dated the date of such annual report or such quarterly statements
and signed by the chief financial officer, the treasurer or the controller of
the Company, containing a computation of each of the financial ratios and
restrictions set forth in this Section 10 and to the effect that such officer
has not become aware of any Event of Default or Unmatured Event of Default that
has occurred and is continuing or, if there is any such event, describing it and
the steps, if any, being taken to cure it.

     10.1.5 Reports to Shareholders. Promptly upon the sending thereof, a copy
of any annual, quarterly or similar disclosure document (inclusive of exhibits
thereto) sent to the Company's shareholders generally.

     10.1.6 Notice of Default, Litigation and Other Matters. Promptly (and in
any event within one Business Day in the case of clause (a) and within five
Business Days in the case of clauses (b) through (d)) after learning of any of
the following, written notice describing the same and the steps being taken by
the Company or the Subsidiary affected thereby with respect thereto: (a) the
occurrence of an Event of Default or an Unmatured Event of Default; (b) any
litigation, arbitration or governmental investigation or proceeding not
previously disclosed by the Company to the Bank which has been instituted or, to
the knowledge of the Company, is threatened against the Company or any
Subsidiary or to which any of the properties of any

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<PAGE>

thereof is subject which has had or is reasonably likely to have a Material
Adverse Effect; (c) any material adverse development which occurs in any
litigation, arbitration or governmental investigation or proceeding previously
disclosed pursuant to clause (b); (d) the institution of any steps by the
Company, any of its Subsidiaries or any other Person to terminate any Pension
Plan, or the failure to make a required contribution to any Pension Plan if such
failure is sufficient to give rise to a Lien under Section 302(f) of ERISA, or
the taking of any action with respect to a Pension Plan which could reasonably
be expected to result in the requirement that the Company furnish a bond or
other security to the PBGC or such Pension Plan, or the occurrence of any event
with respect to any Pension Plan which could reasonably be expected to result in
the incurrence by the Company of any material liability, fine or penalty, or any
material increase in the contingent liability of the Company with respect to any
post-retirement Welfare Plan benefit; and (e) the occurrence of any other event
or circumstance which has had or is reasonably likely to have a Material Adverse
Effect.

     10.1.7 Subsidiaries. Promptly upon the occurrence thereof, a written report
of any change in the list of its Subsidiaries.

     10.1.8 Management Reports. Promptly upon the request of the Bank, copies of
all detailed financial and management reports submitted to the Company by
independent auditors in connection with any annual or interim audit made by such
auditors of the books of the Company.

     10.1.9 Projections. As soon as practicable and in any event within 60 days
after the commencement of each Fiscal Year, a business plan and financial
forecast for such Fiscal Year including (a) a forecasted consolidated balance
sheet and a consolidated statement of cash flow of the Company for such Fiscal
Year and (b) forecasted consolidated statements of income, depreciation,
amortization and capital expenditures of the Company for each quarter of such
Fiscal Year. Such information shall be described on a monthly basis for the
Fiscal Year ended December 31, 2002, and on a yearly basis for each of the next
two succeeding Fiscal Years.

     10.1.10 Other Information. Promptly from time to time, such other
information concerning the Company and its Subsidiaries as the Bank may
reasonably request.

     10.2 Books, Records and Inspections. Keep, and cause each Subsidiary to
keep, its books and records in accordance with sound business practices
sufficient to allow the preparation of financial statements in accordance with
GAAP; permit, and cause each Subsidiary to permit, on reasonable notice and at
reasonable times and intervals (or at any time without notice during the
existence of an Event of Default) the Bank or any representative thereof to
inspect the properties and operations of the Company and of such Subsidiary; and
permit, and cause each Subsidiary to permit, on reasonable notice and at
reasonable times and intervals (or at any time without notice during the
existence of an Event of Default) the Bank or any representative thereof to
visit any or all of its offices, to discuss its financial matters with its
officers and its independent auditors (and the Company hereby authorizes such
independent auditors to discuss such financial matters with the Bank or any
representative thereof, provided that the Company shall have the right to be
present at any such discussions) and to examine (and, at the expense of the
Company or the applicable Subsidiary, photocopy extracts from) any of its books
or other

                                       30

<PAGE>

corporate records. The Company agrees to pay the fees of its auditors incurred
in connection with any reasonable exercise of the rights of the Bank pursuant to
this Section.

     10.3 Insurance. Maintain, and cause each Subsidiary to maintain, with
reputable, financially sound insurance companies, insurance in such amounts and
covering such risks as are necessary or appropriate for the business and
operations of the Company and its Subsidiaries from time to time, as determined
in good faith by the management of the Company (and, in any event, such
insurance as may be required by any Law or any court order or decree); and, upon
request of the Bank, furnish to the Bank a certificate setting forth in
reasonable detail the nature and extent of all insurance maintained by the
Company and its Subsidiaries.

     10.4 Compliance with Laws; Payment of Taxes and Liabilities. (a) Comply,
and cause each Subsidiary to comply, in all material respects with all material
applicable laws, rules, regulations and orders; and (b) pay, and cause each
Subsidiary to pay, prior to delinquency, all material taxes and other
governmental charges against it or any of its property; provided, however, that
the foregoing shall not require the Company or any Subsidiary to pay any such
tax or charge so long as it shall contest the validity thereof in good faith by
appropriate proceedings and shall set aside on its books adequate reserves with
respect thereto in accordance with GAAP.

     10.5 Maintenance of Existence, etc. Maintain and preserve, and (subject to
Section 10.12) cause each Subsidiary to maintain and preserve, (a) its existence
and, wherever applicable, good standing in the jurisdiction of its organization
and (b) its qualification and good standing as a foreign entity in each
jurisdiction where the nature of its business makes such qualification
necessary.

     10.6 Financial Covenants.

     10.6.1 Net Worth. Not permit the Net Worth during any period to be less
than 85% of the Net Worth of the Company on the date of execution and delivery
of this Agreement, which Net Worth was $155,000,000.

     10.6.2 Senior Leverage Ratio. Not permit the Senior Leverage Ratio to be
greater than 3.60 to 1, at any time before December 31, 2001, or greater than
3.00 to 1 at any time on or after December 31, 2001.

     10.6.3 Total Leverage Ratio. Not permit the Total Leverage Ratio to be
greater than 4.20 to 1 at any time on or after December 31, 2001.

     10.6.4 Capital Expenditures. Not incur Capital Expenditures in an amount
exceeding $10,000,000 for Fiscal Year 2001, and in an amount exceeding
$3,000,000 per Fiscal Year thereafter.

     10.7 Limitations on Debt. Not, and not permit any Subsidiary to, create,
incur, assume or suffer to exist any Debt, except (a) obligations arising under
the Loan Documents; (b) Debt of Subsidiaries to the Company or to other
Subsidiaries; (c) Hedging Agreements entered into by the Company or any
Subsidiary, provided that any Hedging Agreement with any Person other

                                       31

<PAGE>

than the Bank or any Affiliate of the Bank shall be unsecured; (d) Debt in
respect of taxes, assessments or governmental charges to the extent that payment
thereof shall not at the time be required to be made in accordance with Section
10.4; (e) Debt of Subsidiaries of the Company listed on Schedule 10.7; (f)
Subsidiary Debt in an amount not in excess of $17,000,000 (which amount shall be
reduced by the amount of any payment of Subsidiary Debt after the date of this
Agreement); (g) Subordinated Debt in an amount not in excess of the principal
amount of the Subordinated Debentures as of the date of this Agreement; (h)
guaranties of indebtedness of officers, directors, or other employees of the
Company or any of its Subsidiaries in an amount not in excess of Cdn$10,000,000;
and (i) other Debt, in addition to the foregoing, in an amount not in excess of
$2,000,000, which amount shall include the $2,000,000 of Permitted Acquisitions
financed other than exclusively with the proceeds of the common equity, as
described in the definition of "Permitted Acquisitions" in Section 1.1 above.

     10.8 Leases. Not, and not permit any Subsidiary to enter into operating
leases, except operating leases entered into in the ordinary course of business,
including leases of entities acquired pursuant to Permitted Acquisitions,
provided that the aggregate rental payments for all such operating leases are
not in excess of 5% of consolidated total revenues for the Company and its
Subsidiaries in any Fiscal Year

     10.9 Liens. Not, and not permit any Subsidiary to, create or permit to
exist any Lien on any of its real or personal properties, assets or rights of
whatsoever nature, including, but not limited to 100% of the capital stock of
each of the Subsidiaries (whether now owned or hereafter acquired), except (a)
Liens for taxes or other governmental charges not at the time delinquent or
thereafter payable without penalty or being contested in good faith by
appropriate proceedings and, in each case, for which it maintains adequate
reserves; (b) Liens arising in the ordinary course of business (such as (i)
Liens of carriers, warehousemen, mechanics and materialmen and other similar
Liens imposed by Law and (ii) Liens incurred in connection with worker's
compensation, unemployment compensation and other types of social security
(excluding Liens arising under ERISA) or in connection with surety and appeal
bonds, bids, performance bonds and similar obligations) for sums not overdue or
being contested in good faith by appropriate proceedings and not involving any
deposits, advances, borrowed money or the deferred purchase price of property or
services, and, in each case, for which it maintains adequate reserves; (c)
attachments, judgments and other similar Liens, for sums not exceeding $250,000
(excluding any portion thereof which is covered by insurance so long as the
insurer has a rating of A- or better from A.M. Best and has accepted a tender of
defense and indemnification without preservation of rights) arising in
connection with court proceedings, provided the execution or other enforcement
of such Liens is effectively stayed and the claims secured thereby are being
actively contested in good faith and by appropriate proceedings; (d) easements,
rights of way, restrictions, minor defects or irregularities in title and other
similar Liens not interfering in any material respect with the ordinary conduct
of the business of the Company and its Subsidiaries taken as a whole; (e) Liens
on Fiduciary Cash held by the Company or any of its Subsidiaries; (f) leases or
subleases granted by the Company or any Subsidiary in the ordinary course of its
business; (g) the interest or title of the lessor of any lease with respect to
which the Company or a Subsidiary is lessee; (h) Liens existing on the Effective
Date and described on Schedule 10.9; (i) extensions, renewals or replacements of
any Lien permitted by the foregoing provisions of this Section 10.9, but only if
the principal amount of the Debt secured thereby immediately prior

                                       32

<PAGE>

to such extension, renewal or replacement is not increased and such Lien is not
extended to any other property; (j) Liens in favor of the Bank or any Affiliate
of the Bank; and (k) additional Liens securing Debt not in excess of $2,000,000
at any time outstanding.

     10.10 Restricted Payments. Not (a) pay or declare dividends to any of its
shareholders in any Fiscal Quarter in an aggregate amount in excess of Cdn $0.07
per share (adjusted for stock splits), (b) purchase or redeem any of its shares
or any warrants, options or other rights in respect of such shares; provided,
however, that the Company shall be permitted to purchase shares from departing
employees in the ordinary course of business in an aggregate purchase price not
exceeding $500,000 during the term of this Agreement, (c) pay any management
fees or similar fees to any of its shareholders or any Affiliate thereof or (d)
set aside funds for any of the foregoing.

     10.11 Investments. The Company will not, and will not permit any Subsidiary
to, make, incur, assume or suffer to exist any Investment in any other Person,
except:

          (a)  Cash Equivalent Investments;

          (b)  loans or advances for travel, commissions and similar items in
               the ordinary course of business to officers and employees of the
               Company and its Subsidiaries not in excess of $250,000 in the
               aggregate at any time;

          (c)  loans and advances made by the Company to any Subsidiary or by
               any Subsidiary to the Company;

          (d)  Investments existing on the Effective Date and described on
               Schedule 10.11; and

          (e)  Permitted Acquisitions.

     10.12 Mergers, Consolidations, Sales. Not, and not permit any Subsidiary
to, be a party to any merger or consolidation, or purchase or otherwise acquire
all or substantially all of the assets or any stock of any class of, or any
partnership or joint venture interest in, any other Person (or of a particular
business unit of any other Person), or, except in the ordinary course of its
business, sell, transfer, convey or lease any of its assets, or sell or assign
with or without recourse any receivables, except for (i) any such merger or
consolidation, sale, transfer, conveyance, lease or assignment of or by any
Wholly-Owned Subsidiary into the Company or into, with or to any other
Wholly-Owned Subsidiary, (ii) any such purchase or other acquisition by the
Company or any Wholly-Owned Subsidiary of the assets or stock of any
Wholly-Owned Subsidiary; (iii) Permitted Acquisitions; and (iv) sales of assets
outside the ordinary course of business so long as such assets are sold at fair
market value pursuant to arms length transactions and the proceeds of such sale
are used to retire Debt of the Company.

     10.13 Use of Proceeds. Use the proceeds of the Loans for liquidity and
other general corporate purposes; and not use or permit any proceeds of any Loan
to be used, either directly or

                                       33

<PAGE>

indirectly, for the purpose, whether immediate, incidental or ultimate, of
"purchasing or carrying" any Margin Stock (within the meaning of Regulation U).

     10.14 Transactions with Related Parties. Not, and not permit any Subsidiary
to, enter into or cause, suffer or permit to exist any transaction, arrangement
or contract with any Related Party (as defined below) which is on terms which
are less favorable than are obtainable from any Person which is not a Related
Party (other than management agreements which impose no obligations on the
Company except payment of management fees which are permitted by Section 10.10).
For purposes of the foregoing, "Related Party" means (a) any shareholder of the
Company, (b) any member, officer, director, partner or shareholder of any
shareholder of the Company and (c) any Affiliate of any of the foregoing.

     10.15 Employee Benefit Plans. Maintain, and cause each Subsidiary to
maintain, each Pension Plan in compliance in all material respects with all
applicable requirements of Law.

     10.16 Environmental Covenant. Cause, and cause each Subsidiary to,

          (a)  own, use, lease and operate all of its facilities and properties
     in material compliance with all Environmental Laws;

          (b)  (i) promptly after receipt thereof, notify the Bank (and provide
     copies) of all written claims, complaints, notices or investigations
     relating to the condition of the facilities and properties owned, leased or
     operated by the Company or any of its Subsidiaries and/or compliance with
     Environmental Laws, except claims, complaints, notices or investigations
     for which the liability of the Company and its Subsidiaries is reasonably
     expected to be less than $250,000; and (ii) promptly undertake reasonable
     measures to cure and have dismissed with prejudice to the satisfaction of
     the Bank any action or proceeding relating to compliance with Environmental
     Laws (it being understood that the Company shall not be in default under
     this clause (ii) with respect to any action or proceeding so long as (x)
     the Company or the applicable Subsidiary is diligently defending such
     action or proceeding in good faith by appropriate proceedings and has set
     aside on its books adequate reserves with respect thereto or (ii) in the
     case of all proceedings not covered by clause (x), there is no material
     interference with or disruption of the business of the Company or the
     applicable Subsidiary as a result of such action or proceeding and the
     aggregate liability of the Company and its Subsidiaries in connection with
     all such proceedings is reasonably expected to be less than $250,000); and

          (c)  provide such information and certifications which the Bank may
     reasonably request from time to time to evidence compliance with this
     Section 10.16.

     10.17 Unconditional Purchase Obligations. Not, and not permit any
Subsidiary to, enter into or be a party to any contract for the purchase of
materials, supplies or other property or services, if such contract requires
that payment be made by it regardless of whether or not delivery is ever made of
such materials, supplies or other property or services.

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<PAGE>

     10.18 Business. Not, and not permit any Subsidiary to, engage in any
material line of business substantially different from those lines of business
carried on by the Company and its Subsidiaries on the date hereof; provided,
however, that the Company and its Subsidiaries may not engage in the business of
underwriting property and casualty insurance except through Old Lyme and only
then through and including the Old Lyme Purchase Date.

     10.19 Inconsistent Agreements. Not, and not permit any Subsidiary to, enter
into any material agreement containing any provision which would be violated or
breached by any borrowing by the Company hereunder or by the performance by the
Company or any Subsidiary of any of its obligations hereunder or under any other
Loan Document.

     10.20 Subordinated Debt. (a) Give notice to the Bank, at least ten days,
before the occurrence of an event with which the passage of time or the giving
of notice or both would constitute an "Event of Default" with respect to any
Subordinated Debt or which would permit the holder of any Subordinated Debt to
require redemption thereof, including, without limitation, upon the occurrence
of a "Change of Control" or similar event.

          (b)  Not make any optional repayment or redemption of any Subordinated
     Debt.

     10.21 Prepayment of Obligations to Redeem Shares. Not, and not permit any
Subsidiary to, prepay any obligation to redeem stock of the Company or such
Subsidiary, as applicable, except with the proceeds of equity of the Company or
such Subsidiary issued substantially concurrently with such prepayment.

     10.22 Use of Proceeds of Sale of Old Lyme. Use the proceeds of the sale of
Old Lyme to pay Debt other than Subordinated Debt of the Company and its
Subsidiaries.

     SECTION 11 CONDITIONS PRECEDENT

     The obligation of the Bank to make any Loan is subject to the following
conditions precedent:

     11.1 Initial Credit Extension. The obligation of the Bank to make its
initial Loan is, in addition to the conditions precedent specified in Section
11.2, subject to the conditions precedent that the Bank shall have received (a)
evidence, reasonably satisfactory to the Bank, that the Company has completed,
or concurrently with the initial credit extension hereunder will complete, the
Acquisitions in accordance with the terms of the Acquisition Agreements (without
any amendment thereto or waiver thereunder unless consented to by the Bank); and
(b) all of the following, each duly executed and dated the Effective Date (or
such earlier date as shall be satisfactory to the Bank), in form and substance
satisfactory to the Bank (and the date on which all such conditions precedent
have been satisfied or waived in writing by the Bank is called the "Effective
Date"):

     11.1.1 Note. The Note of the Company payable to the order of the Bank.

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<PAGE>

     11.1.2 Guaranties. Each of the Guaranties, executed and dated the Effective
Date (or such other date as shall be satisfactory to the Bank).

     11.1.3 Resolutions. (a) Certified copies of resolutions of the board of
directors of the Company authorizing or ratifying the execution, delivery and
performance of this Agreement, the Note and the other documents provided for
herein to be executed by the Company; (b) Certified copies of resolutions of the
board of directors of Fairfax authorizing and ratifying the execution, delivery,
and performance of the Fairfax Guaranty and the other documents provided for
therein; and (c) Certified copies of resolutions of the boards of directors of
the Material Subsidiaries authorizing and ratifying the execution, delivery and
performance of the Material Subsidiaries Guaranty and the other documents
provided for therein.

     11.1.4 Consents, etc. Certified copies of all documents evidencing any
necessary consents and governmental approvals with respect to this Agreement,
the Note, the Guaranties and the other documents provided for herein.

     11.1.5 Incumbency and Signatures. (a) A certificate of the Secretary of the
Company certifying the names of the officer or officers of the Company
authorized to sign the Loan Documents, together with a sample of the true
signature of each such officer; (b) a certificate of the Secretary of Fairfax
certifying the names of the officer or officers of Fairfax authorized to sign
the Fairfax Guaranty, together with a sample of the true signature of each such
officer; and (c) certificates of the Secretaries of the Material Subsidiaries,
certifying the names of the officer or officers of the Material Subsidiaries
authorized to sign the Material Subsidiaries Guaranty, together with a sample of
the true signature of such officer.

     11.1.6 Corporate Documents. Certificates of the Secretaries of each of the
Company, Fairfax and the Material Subsidiaries certifying (i) the articles of
incorporation, (ii) by-laws of such company and (iii) consents described in
Section 11.1.4.

     11.1.7 Opinions. (a) The opinion of (i) counsel to the Company,
substantially in the form of Exhibit C-1, (ii) counsel to Fairfax and (iii)
counsel to the Material Subsidiaries, each substantially in the form of Exhibit
C-2; and (b) all opinions delivered in connection with the closing of the
Acquisitions (which opinions shall state, or be accompanied by letters which
state, that the Bank may rely thereon).

     11.1.8 Bank of Montreal Credit Agreement. The Amended and Restated Credit
Agreement dated as of June 21, 2001, between Bank of Montreal and the Company.

     11.1.9 Debentures. Evidence satisfactory to the Bank that the Subordinated
Debentures shall have been issued and at least $35,000,000 and Cdn $42,500,000
in net proceeds thereof shall have been received by the Company.

     11.1.10 Projections. For the period from July 1, 2001 through and including
December 31, 2001, forecasted consolidated statements of income, depreciation,
amortization and capital expenditures of the Company for each such month.

                                       36

<PAGE>

     11.1.11 Other. Such other documents as the Bank may reasonably request.

     11.2 All Credit Extensions. The obligation of the Bank to make each Loan is
subject to the conditions precedent that:

     11.2.1 No Default. (a) No Event of Default, or Unmatured Event of Default,
has occurred and is continuing or will result from the making of such Loan and
(b) the warranties of the Company contained in Section 9 are true and correct in
all material respects as of the date of such requested Loan, with the same
effect as though made on such date.

     11.2.2 Confirmatory Certificate. If requested by the Bank, the Bank shall
have received a certificate dated the date of such requested Loan and signed by
the Company's President, chief financial officer, treasurer or controller as to
the matters set out in Sections 11.2.1 (it being understood that each request by
the Company for the making of a Loan shall be deemed to constitute a
certification as to the matters set out in Sections 11.2.1), together with such
other documents as the Bank may reasonably request in support thereof, including
duly executed and updated copies or other confirmations of the continuing
effectiveness of any or all of the documents (except the Note) provided for in
Section 11.1.

     SECTION 12 EVENTS OF DEFAULT AND THEIR EFFECT.

     12.1 Events of Default. Each of the following shall constitute an Event of
Default under this Agreement:

     12.1.1 Non-Payment of the Loans, etc. Default, and continuance thereof for
five days, in the payment when due of any principal, interest, fee, or other
amount payable by the Company hereunder, under any other Loan Document or under
any other agreement between the Company and the Bank.

     12.1.2 Non-Payment of Other Debt. Any default shall occur under the terms
applicable to any Debt of the Company or any Subsidiary (other than Debt
hereunder) in an aggregate amount (for all Debt so affected) exceeding $250,000
and such default shall (a) consist of the failure to pay any portion of such
Debt when due (subject to any applicable grace period), whether by acceleration
or otherwise, or (b) accelerate the maturity of such Debt or permit the holder
or holders thereof, or any trustee or agent for such holder or holders, to cause
such Debt to become due and payable prior to its expressed maturity.

     12.1.3 Other Material Obligations. Default in the payment when due, or in
the performance or observance of, any material obligation of, or condition
agreed to by, the Company or any Subsidiary with respect to any material
purchase or lease of goods or services (except only to the extent that the
existence of any such default is being contested by the Company or such
Subsidiary in good faith and by appropriate proceedings and appropriate reserves
have been set aside in respect of such default) if, in the reasonable judgment
of the Bank, such default has had, or is reasonably likely to have, a Material
Adverse Effect.

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<PAGE>

     12.1.4 Bankruptcy, Insolvency, etc. The Company or any Subsidiary becomes
insolvent or generally fails to pay, or admits in writing its inability or
refusal to pay, debts as they become due; or any Borrower Party or any of its
Subsidiaries institutes or consents to the institution of any proceeding under
Debtor Relief Laws, or makes an assignment for the benefit of creditors; or
applies for or consents to the appointment of any receiver, trustee, custodian,
conservator, liquidator, rehabilitator or similar officer for it or for all or
any material part of its property; or any receiver, trustee, custodian,
conservator, liquidator, rehabilitator or similar officer is appointed without
the application or consent of that Person and the appointment continues
undischarged or unstayed for 60 calendar days; or any proceeding under Debtor
Relief Laws relating to any such Person or to all or any part of its property is
instituted without the consent of that Person and continues undismissed or
unstayed for 60 calendar days, or an order for relief is entered in any such
proceeding.

     12.1.5 Non-Compliance with Provisions of This Agreement. Failure by the
Company to comply with or to perform any provision of Section 10.6, 10.7, 10.8,
10.9, 10.10, 10.11, 10.12 or 10.13; failure by the Company to comply with or to
perform any provision of Section 10.20, 10.21 or 10.22 and continuance of such
failure for five days after notice thereof to the Company from the Bank; or
failure by the Company to comply with or to perform any other provision of this
Agreement (and not constituting an Event of Default under any of the other
provisions of this Section 12) and continuance of such failure for 30 days after
notice thereof to the Company from the Bank.

     12.1.6 Warranties. Any warranty made by the Company herein is breached or
is false or misleading in any material respect, or any schedule, certificate,
financial statement, report, notice or other writing furnished by the Company to
the Bank is false or misleading in any material respect on the date as of which
the facts therein set forth are stated or certified.

     12.1.7 Pension Plans. (i) Institution of any steps by the Company or any
other Person to terminate a Pension Plan if as a result of such termination the
Company could be required to make a contribution to such Pension Plan, or could
incur a liability or obligation to such Pension Plan, in excess of $250,000, or
(ii) a contribution failure occurs with respect to any Pension Plan sufficient
to give rise to a Lien under Section 302(f) of ERISA.

     12.1.8 Judgments. Final judgments which exceed an aggregate of $250,000
(excluding any portion thereof which is covered by insurance so long as the
insurer has a rating of A- or better from A.M. Best Company and has accepted a
tender of defense and indemnification without reservation of rights) shall be
rendered against the Company or any Subsidiary and shall not have been
discharged or vacated or had execution thereof stayed pending appeal within 30
days after entry or filing of such judgments.

     12.1.9 Invalidity of Guaranties. Any guaranty issued by any Subsidiary
shall cease to be in full force and effect with respect to such Subsidiary, any
Subsidiary shall fail (subject to any applicable grace period) to comply with or
to perform any applicable provision of any applicable guaranty, or any
Subsidiary (or any Person by, through or on behalf of any Subsidiary) shall
contest in any manner the validity, binding nature or enforceability of any
applicable guaranty.

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<PAGE>

     12.1.10 Change of Control. Any Change of Control shall occur.

     12.1.11 Subordinated Debt. A notice shall be given pursuant to Section
10.20(a) and the event giving rise to such notice shall be continuing for five
days.

     12.2 Effect of Event of Default. If any Event of Default described in
Section 12.1.4 shall occur, the Commitment (if it has not theretofore
terminated) shall immediately terminate and the Note and all other obligations
hereunder shall become immediately due and payable, all without presentment,
demand, protest or notice of any kind; and, in the case of any other Event of
Default, the Bank may declare the Commitment (if it has not theretofore
terminated) to be terminated and/or declare the Note and all other obligations
hereunder to be due and payable, whereupon the Commitment (if it has not
theretofore terminated) shall immediately terminate each without presentment,
demand, protest or notice of any kind. The Bank shall promptly advise the
Company of any such declaration, but failure to do so shall not impair the
effect of such declaration.

     SECTION 13 GENERAL.

     13.1 Waiver; Amendments. No delay on the part of the Bank or any holder of
the Note in the exercise of any right, power or remedy shall operate as a waiver
thereof, nor shall any single or partial exercise by any of them of any right,
power or remedy preclude other or further exercise thereof, or the exercise of
any other right, power or remedy. No amendment, modification or waiver of, or
consent with respect to, any provision of this Agreement or the Note shall in
any event be effective unless the same shall be in writing and signed and
delivered by the Bank and, in the case of any such amendment or modification,
the Company.

     13.2 Notices. Except as otherwise provided in Sections 2.3 and 2.4, all
notices hereunder shall be in writing (including facsimile transmission) and
shall be sent to the applicable party at its address shown below its signature
hereto or at such other address as such party may, by written notice received by
the other party, have designated as its address for such purpose. Notices sent
by telegram or facsimile transmission shall be deemed to have been given when
sent; notices sent by mail shall be deemed to have been given three Business
Days after the date when sent by registered or certified mail, postage prepaid;
and notices sent by hand delivery shall be deemed to have been given when
received.

     13.3 Computations. Where the character or amount of any asset or liability
or item of income or expense is required to be determined, or any consolidation
or other accounting computation is required to be made, for the purposes of this
Agreement, such determination or calculation shall, to the extent applicable and
except as otherwise specified in this Agreement, be made in accordance with
GAAP; provided that if the Company notifies the Bank that the Company wishes to
amend any covenant in Section 10 to eliminate the effect of any change in GAAP
on the operation of such covenant, or if the Bank notifies the Company that the
Bank wishes to amend Section 10 for such purpose, then the Company's compliance
with such covenant shall be determined on the basis of GAAP in effect
immediately before the relevant change in GAAP became effective, until either
such notice is withdrawn or such covenant is amended in a manner satisfactory to
the Company and the Bank.

                                       39

<PAGE>

     13.4 Costs, Expenses and Taxes. The Company agrees to pay on demand all
reasonable out-of-pocket costs and expenses of the Bank (including Attorney
Costs) in connection with the preparation, execution, delivery and
administration of this Agreement, the Note, the other Loan Documents and all
other instruments or documents provided for herein or delivered or to be
delivered hereunder or in connection herewith (including any amendments to or
other modifications of any of the foregoing documents) and all reasonable
out-of-pocket costs and expenses (including Attorney Costs) incurred by the Bank
in connection with the enforcement of this Agreement, the Note, any other Loan
Document or any such other instrument or document or in connection with any
"work-out" or restructuring of the Company's obligations hereunder. In addition,
the Company agrees to pay, and to save the Bank harmless from all liability for,
any stamp or other taxes or filing fees or recording charges which may be
payable in connection with the execution or delivery of this Agreement, the
borrowings hereunder, the issuance of the Note or the issuance of any other
instrument or document provided for herein or delivered or to be delivered
hereunder or in connection herewith. All obligations provided for in this
Section 13.4 shall survive any termination of this Agreement.

     13.5 Judgment Currency.

     (a)  All sums due and payable hereunder shall be paid in United States
Dollars. If, for the purposes of obtaining judgment in any court, it is
necessary to convert a sum due hereunder in United States Dollars into another
currency, the Company and the Bank agree, to the fullest extent permitted by
law, that the rate of exchange used shall be that at which in accordance with
normal banking procedures the Bank could purchase United States Dollars with
such other currency on the business day preceding that on which the final
judgment is given.

     (b)  The obligation of the Company in respect of any sum due from it to the
Bank hereunder shall, notwithstanding any judgment in a currency other than
United States Dollars, be discharged only to the extent that on the business day
following receipt by the Bank of any sum adjudged to be so due in such other
currency the Bank may in accordance with normal banking procedures purchase
United States Dollars with such other currency; if the United States Dollars so
purchased are less than the sum originally due to the Bank in United States
Dollars, the Company agrees, as a separate obligation and notwithstanding any
such judgment, to indemnify the Bank against such loss, and if the United States
Dollars so purchased exceed the sum originally due to the Bank in the United
States Dollars, the Bank agrees to remit to the Company such excess.

     13.6 Governing Law.

     (a)  THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH,
THE LAW OF THE STATE OF ILLINOIS APPLICABLE TO AGREEMENTS MADE AND TO BE
PERFORMED ENTIRELY WITHIN SUCH STATE; PROVIDED THAT BANK SHALL RETAIN ALL RIGHTS
ARISING UNDER FEDERAL LAW.

                                       40

<PAGE>

     (b)  ANY LEGAL ACTION OR PROCEEDING WITH RESPECT TO THIS AGREEMENT OR ANY
OTHER LOAN DOCUMENT MAY BE BROUGHT IN THE COURTS OF THE STATE OF ILLINOIS OR OF
THE UNITED STATES FOR THE NORTHERN DISTRICT OF THE STATE OF ILLINOIS, AND BY
EXECUTION AND DELIVERY OF THIS AGREEMENT, EACH BORROWER PARTY AND THE BANK
CONSENTS, FOR ITSELF AND IN RESPECT OF ITS PROPERTY, TO THE NON-EXCLUSIVE
JURISDICTION OF THOSE COURTS. EACH BORROWER PARTY AND EACH THE BANK IRREVOCABLY
WAIVES ANY OBJECTION, INCLUDING ANY OBJECTION TO THE LAYING OF VENUE OR BASED ON
THE GROUNDS OF FORUM NON CONVENIENS, WHICH IT MAY NOW OR HEREAFTER HAVE TO THE
BRINGING OF ANY ACTION OR PROCEEDING IN SUCH JURISDICTION IN RESPECT OF ANY LOAN
DOCUMENT OR OTHER DOCUMENT RELATED HERETO. EACH BORROWER PARTY AND THE BANK
WAIVES PERSONAL SERVICE OF ANY SUMMONS, COMPLAINT OR OTHER PROCESS, WHICH MAY BE
MADE BY ANY OTHER MEANS PERMITTED BY THE LAW OF THE STATE OF ILLINOIS.

     13.7 Counterparts. This Agreement may be executed in any number of
counterparts and by the different parties hereto on separate counterparts and
each such counterpart shall be deemed to be an original, but all such
counterparts shall together constitute but one and the same Agreement.

     13.8 Successors and Assigns. This Agreement shall be binding upon the
Company, the Bank and their respective successors and assigns, and shall inure
to the benefit of the Company and the Bank and the successors and assigns of the
Bank. The Bank shall not assign its rights or obligations hereunder without the
prior written consent of the Company, which shall not be unreasonably withheld.

     13.9 Indemnification by the Company. (a) In consideration of the execution
and delivery of this Agreement by the Bank and the agreement of the Bank to
extend the Commitment provided hereunder, the Company hereby agrees to
indemnify, exonerate and hold the Bank and each of the officers, directors,
employees and agents of the Bank (collectively the "Bank Parties" and
individually each a "Bank Party") free and harmless from and against any and all
actions, causes of action, suits, losses, liabilities, damages and reasonable
out-of-pocket expenses, including Attorney Costs (collectively, the "Indemnified
Liabilities"), incurred by the Bank Parties or any of them as a result of, or
arising out of, or relating to (i) any tender offer, merger, purchase of stock,
purchase of assets or other similar transaction (including the Acquisitions)
financed or proposed to be financed in whole or in part, directly or indirectly,
with the proceeds of any of the Loans or (ii) the execution, delivery,
performance or enforcement of this Agreement or any other Loan Document by any
of the Bank Parties, except for any Indemnified Liabilities arising on account
of any such Bank Party's gross negligence or willful misconduct. If and to the
extent that the foregoing undertaking may be unenforceable for any reason, the
Company hereby agrees to make the maximum contribution to the payment and
satisfaction of each of the Indemnified Liabilities which is permissible under
applicable Law.

     (b)  Without limiting clause (a), the Company agrees to reimburse each Bank
Party for, and hold each Bank Party harmless from, any and all out-of-pocket
losses, claims, damages,

                                       41

<PAGE>

penalties, judgments, liabilities and reasonable expenses (including Attorney
Costs and consultant's fees) which any Bank Party may pay, incur or become
subject to arising out of or relating to the use, handling, emission, discharge,
transportation, storage, treatment or disposal of any Hazardous Material at any
real property owned, operated or leased by the Company, except to the extent
caused by the acts or omissions of such Bank Party.

     (c)  All obligations provided for in this Section 13.9 shall survive any
termination of this Agreement.

     13.10 Subsidiary References. References herein to Subsidiaries of the
Company, or to the Company's financial statements being prepared on a
"consolidated" basis or similar references, shall be applicable only at such
times as the Company has one or more Subsidiaries.

     13.11 Waiver of Jury Trial. EACH PARTY TO THIS AGREEMENT HEREBY EXPRESSLY
WAIVES ANY RIGHT TO TRIAL BY JURY OF ANY CLAIM, DEMAND, ACTION OR CAUSE OF
ACTION ARISING UNDER ANY LOAN DOCUMENT OR IN ANY WAY CONNECTED WITH OR RELATED
OR INCIDENTAL TO THE DEALINGS OF THE PARTIES HERETO OR ANY OF THEM WITH RESPECT
TO ANY LOAN DOCUMENT, OR THE TRANSACTIONS RELATED THERETO, IN EACH CASE WHETHER
NOW EXISTING OR HEREAFTER ARISING, AND WHETHER FOUNDED IN CONTRACT OR TORT OR
OTHERWISE; AND EACH PARTY HEREBY AGREES AND CONSENTS THAT ANY SUCH CLAIM,
DEMAND, ACTION OR CAUSE OF ACTION SHALL BE DECIDED BY COURT TRIAL WITHOUT A
JURY, AND THAT ANY PARTY TO THIS AGREEMENT MAY FILE AN ORIGINAL COUNTERPART OR A
COPY OF THIS SECTION WITH ANY COURT AS WRITTEN EVIDENCE OF THE CONSENT OF THE
SIGNATORIES HERETO TO THE WAIVER OF THEIR RIGHT TO TRIAL BY JURY.

                                       42

<PAGE>

     Delivered at Chicago, Illinois, as of the day and year first above written.

                           HUB INTERNATIONAL LIMITED

                           By: /s/ W. Kirk James
                               -------------------------------------------------
                           Name:   W. Kirk James
                                   ---------------------------------------------
                           Title:  Vice President, Secretary and General Counsel
                                   ---------------------------------------------

                           55 East Jackson Boulevard
                           Chicago, Illinois 60604
                           Telephone: 312-279-4881
                           Facsimile: 312-279-4981

                           Attention: General Counsel

                           BANK OF AMERICA, N.A.

                           By: /s/ Mehul D. Mehta
                               -------------------------------------------------
                           Name:   Mehul D. Mehta
                           Title:  Vice President

                           231 South LaSalle Street, 10th Floor
                           Chicago, Illinois  60697
                           Telephone: 312-828-2147
                           Facsimile: 312-987-0889

                           Attention: Mehul D.  Mehta<PAGE>

                                                                   Exhibit 10.20

                                CREDIT AGREEMENT

                                 BY AND BETWEEN

                        LASALLE BANK NATIONAL ASSOCIATION

                                       AND

                            HUB INTERNATIONAL LIMITED

                                                                   JULY 19, 2001

<PAGE>

                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                                                     PAGE
                                                                                                     ----
<S>                                                                                                   <C>
SECTION 1. DEFINITIONS     ..........................................................................   1

SECTION 2. CREDIT FACILITY ..........................................................................  11
           Section 2.A.    Revolving Loans and Revolving Note......................................... 11
                   2.A.1.  Revolving Loans............................................................ 11
                   2.A.2.  Revolving Note............................................................. 11

SECTION 3. GENERAL PROVISIONS APPLICABLE TO ALL LOANS................................................  12
           Section 3.A.    Applicable Interest Rates.................................................. 12
           Section 3.B.    Minimum and Maximum Borrowing Amounts...................................... 13
           Section 3.C.    Borrowing Procedures....................................................... 13
           Section 3.D.    Interest Periods........................................................... 14
           Section 3.E.    Maturity of LIBOR Loans.................................................... 14
           Section 3.F.    Prepayments................................................................ 14
           Section 3.G.    Default Rate............................................................... 15
           Section 3.H.    Note....................................................................... 16
           Section 3.I.    Funding Indemnity.......................................................... 16
           Section 3.J.    Change in Circumstances, Etc............................................... 17

SECTION 4. FEES......................................................................................  19
           Section 4.A.    Revolving Commitment Fees.................................................. 19
           Section 4.B.    Non-Utilization Fee........................................................ 19

SECTION 5. PLACE AND APPLICATION OF PAYMENTS.........................................................  19
           Section 5.A.    Place and Application of Payments.......................................... 19

SECTION 6. CONDITIONS PRECEDENT AND SUBSEQUENT.......................................................  19
           Section 6.A.    Delivery of Documents as Conditions Precedent.............................. 20
                   6.A.1.  Agreement.................................................................. 20
                   6.A.2.  Note....................................................................... 20
                   6.A.3.  Evidence of Insurance...................................................... 20
                   6.A.4.  Articles of Incorporation.................................................. 20
                   6.A.5.  Good Standing.............................................................. 20
                   6.A.6.  Secretary's Certificate.................................................... 20
                   6.A.7.  Solvency Certificate....................................................... 20
                   6.A.8.  Opinion.................................................................... 20
                   6.A.9.  Environmental Data......................................................... 20
                   6.A.10. Officer's Certificate...................................................... 21
                   6.A.11. Guarantees................................................................. 21
                   6.A.12. Financial Statements of Guarantors......................................... 21
                   6.A.13. Other Documents............................................................ 21
                   6.A.14. Subordinated Debentures...................................................  21
           Section 6.B.    Fees....................................................................... 21
           Section 6.C.    Conditions Precedent....................................................... 21
                   6.C.1.  Materially Adverse Effect.................................................. 21
</TABLE>

                                       ii
<PAGE>

<TABLE>
<CAPTION>
                                                                                                     PAGE
                                                                                                     ----
<S>                                                                                                   <C>
                   6.C.2.  Representations and Warranties............................................. 21
                   6.C.3.  Covenants.................................................................. 21
                   6.C.4.  Event of Default........................................................... 22
                   6.C.5.  Revolving Commitments...................................................... 22
                   6.C.6.  No Violations.............................................................. 22
                   6.C.7.  Note; Notice of Borrowing.................................................. 22
                   6.C.8.  Satisfactory Completion of Due Diligence................................... 22

SECTION 7. REPRESENTATIONS AND WARRANTIES............................................................  22
           Section 7.A.    Corporate Existence and Related Matters.................................... 22
           Section 7.B.    Corporate Authority........................................................ 23
           Section 7.C.    Consents, Approvals, etc................................................... 23
           Section 7.D.    Binding Effect and Enforceability.......................................... 23
           Section 7.E.    Default of Debt, Licenses, Permits, Orders and Other Agreements............ 24
           Section 7.F.    Financial Condition and Litigation......................................... 24
           Section 7.G.    Title and Liens............................................................ 24
           Section 7.H.    Employee Plans............................................................. 24
           Section 7.I.    Taxes...................................................................... 25
           Section 7.J.    Compliance with Laws....................................................... 25
           Section 7.K.    Corporate Structure and Affiliates......................................... 25
           Section 7.L.    Corporate Names............................................................ 25
           Section 7.M.    Solvency................................................................... 25
           Section 7.N.    Margin Regulations......................................................... 25
           Section 7.O.    Indebtedness to and Transactions with Affiliates........................... 25
           Section 7.P.    Acts of God................................................................ 26
           Section 7.Q.    Labor Controversies; Union Contracts, Etc.................................. 26
           Section 7.R.    Surety Obligations; Financial Assurances................................... 26
           Section 7.S.    Business Relations......................................................... 26
           Section 7.T.    Accuracy of Information.................................................... 26
           Section 7.U.    Hazardous Materials........................................................ 27
           Section 7.V.    Ranking.................................................................... 27
           Section 7.W.    Business Loan.............................................................. 27
           Section 7.X.    Complete Information....................................................... 27
           Section 7.Y.    Intellectual Property...................................................... 28

SECTION 8. COVENANTS.................................................................................  28
           Section 8.A.    Affirmative Covenants...................................................... 28
                   8.A.1.  Financial Covenants........................................................ 28
                   8.A.2.  Financial Information and Reporting........................................ 29
                   8.A.3.  Corporate Existence and Conduct of Business................................ 30
                   8.A.4.  Taxes and Laws............................................................. 31
                   8.A.5.  Inspection................................................................. 31
                   8.A.6.  Lender Costs............................................................... 31
                   8.A.7.  Employee Plans............................................................. 31
                   8.A.8.  Use of Proceeds of Loans................................................... 32
                   8.A.9.  Financial Assurance........................................................ 32
                   8.A.10. Compliance with Laws....................................................... 32
</TABLE>

                                       iii
<PAGE>

<TABLE>
<CAPTION>
                                                                                                     PAGE
                                                                                                     ----
<S>                                                                                                   <C>
                   8.A.11. Maintenance of Insurance................................................... 32
           Section 8.B.    Negative Covenants......................................................... 33
                   8.B.1.  Liens...................................................................... 33
                   8.B.2.  Fiscal Year, Name Changes, Mergers and Acquisitions........................ 33
                   8.B.3.  Restricted Payments........................................................ 33
                   8.B.4.  Transactions with Affiliates............................................... 33
                   8.B.5.  Capital Structure.......................................................... 33
                   8.B.6.  Change in Nature of Business............................................... 34
                   8.B.7.  Prepayment or Modification of Debt......................................... 34
                   8.B.8.  False Statements........................................................... 34
                   8.B.9.  Inconsistent or Restrictive Agreements..................................... 34
                   8.B.10. Investments................................................................ 34
                   8.B.11. Indebtedness............................................................... 34

SECTION 9. EVENTS OF DEFAULT.........................................................................  35
           Section 9.A.    Obligations................................................................ 35
           Section 9.B.    Breach or Default Under Loan Documents..................................... 35
           Section 9.C.    Representation and Warranties.............................................. 35
           Section 9.D.    Judgments.................................................................. 35
           Section 9.E.    Insolvency and Related Proceedings......................................... 36
           Section 9.F.    Other Material Agreements.................................................. 36
           Section 9.G.    State Action............................................................... 36
           Section 9.H.    ERISA Matters.............................................................. 36
           Section 9.I.    Tax Liens.................................................................. 37
           Section 9.J.    Failure of Lien............................................................ 37
           Section 9.K.    Environmental or Other Remediation Costs................................... 37
           Section 9.L.    Operating Permits and Licenses............................................. 37
           Section 9.M.    Material Adverse Change.................................................... 37
           Section 9.N.    Change in Control.......................................................... 37

SECTION 10. RIGHTS AND REMEDIES......................................................................  38
           Section 10.A.   Termination of Commitment and Acceleration................................. 38
           Section 10.B.   Rescission................................................................. 38
           Section 10.C.   Application of Payments.................................................... 38
           Section 10.D    Attorney-in-Fact........................................................... 39

SECTION 11. MISCELLANEOUS............................................................................  39
           Section 11.A.   Assignments and Participations............................................. 39
           Section 11.B.   Withholding Taxes.......................................................... 39
           Section 11.C.   Amendment and Waivers...................................................... 40
           Section 11.D.   Merger and Integration Clause.............................................. 40
           Section 11.E.   Applicable Law............................................................. 40
           Section 11.F.   Severability............................................................... 40
           Section 11.G.   Section Headings........................................................... 40
           Section 11.H.   Binding Effect............................................................. 40
           Section 11.I.   Notices.................................................................... 41
           Section 11.J.   Counterparts............................................................... 42
</TABLE>

                                       iv
<PAGE>

<TABLE>
<CAPTION>
                                                                                                     PAGE
                                                                                                     ----
<S>                                                                                                   <C>
           Section 11.K.   Indemnification............................................................ 42
           Section 11.L.   Independence of Covenants.................................................. 42
           Section 11.M.   Limitation of Liability.................................................... 43
           Section 11.N.   Consent to Jurisdiction and Waiver of Jury Trial and Personal Service...... 43
</TABLE>

                                       v

<PAGE>

                                    EXHIBITS

Exhibit A.        Form of Revolving Note

Exhibit B.        Form of Borrowing Notice

Exhibit C.        Form of Compliance Certificate

Exhibit D.        New Subsidiary Certificate

Exhibit E.        Form of Guaranty

<PAGE>

                                    SCHEDULES

Schedule 1.A.     Exclusions to Definition of "Contingent Liability"

Schedule 1.B.     Historical Pro Forma Basis

Schedule 1C.      Current Loans and Advances

Schedule 7.A.     Corporate organizational, ownership and related matters for
                  Borrower

Schedule 7.C.     Required Third Party Consents

Schedule 7.F.     Pending or threatened litigation and government proceedings

Schedule 7.G.     Existing Liens (which are included as Permitted Liens)

Schedule 7.H.     Employee Plans

Schedule 7.I.     Deficiency or additional tax assessments

Schedule 7.O.     Indebtedness to/from Affiliates

Schedule 7.R.     Financial Assurances

Schedule 8.A.8.   Capital Expenditures and Acquisitions

Schedule 8.B.2.   Existing Investments (permitted to be maintained by Borrower)

Schedule 8.B.4.   Transactions with Affiliates

Schedule 8.B.11.  Indebtedness

<PAGE>

                                CREDIT AGREEMENT

     This Credit Agreement is made as of July 19, 2001, by and between LASALLE
BANK NATIONAL ASSOCIATION, a national banking association with its principal
offices located in Chicago, Illinois, ("Lender"), and Hub International Limited,
a corporation incorporated under the laws of Ontario, Canada ("Borrower").

                                   WITNESSETH:

     WHEREAS, the Borrower desires to borrow from the Lender certain amounts for
the purposes set forth in Section 8.A.8 below;

     WHEREAS, the Lender is agreeable to extending said credit facility on the
terms and conditions provided herein;

     WHEREAS, certain financial covenants of the Borrower hereinafter set forth
relate to the financial condition and results of Borrower, and the financial
condition and results of Borrower are a material inducement to the Lender's
willingness to enter into this Credit Agreement and extend the financial
accommodations referred to herein;

     WHEREAS, as a condition for extending such financial accommodations, the
Lender requires that Borrower enter into this Credit Agreement establishing the
terms and conditions thereof;

     NOW THEREFORE, for and in consideration of the foregoing premises and the
mutual agreements contained herein, the parties hereto, intending to be legally
bound, do hereby agree as follows:

SECTION 1.   DEFINITIONS.

     Section 1.A. In addition to the terms that are elsewhere defined herein,
when used herein, the following terms have the meanings as set forth below:

     "Act" or "Acts" means, collectively, the Laws of any state or governmental
subdivision thereof which apply to the conduct of business by the Borrower.

     "Adjusted LIBOR" is defined in Section 3.A hereof.

     "Affiliate" of any Person means any other Person that directly or
indirectly, through one or more intermediaries, controls or is controlled by or
is under common control with such Person and includes, without limitation, each
shareholder, director and any Subsidiaries of such Person. For purposes of this
definition, "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 by contract or otherwise.
For purposes of this Agreement, all Subsidiaries of Borrower are Affiliates of
Borrower.

<PAGE>

     "Agreement" means, collectively, this Credit Agreement, together with any
and all exhibits, appendices, schedules and amendments hereto and modifications,
renewals, extensions, restatements and substitutions thereof and therefor.

     "Applicable LIBOR Margin," for purposes of determining the interest rate on
a LIBOR Loan, means 1.50%.

     "Authorized Officer" means one or more officers of the Borrower duly
authorized (and so certified to the Lender by the corporate Secretary of the
Borrower involved pursuant to a certificate of authority and incumbency from
time to time satisfactory to the Lender), acting alone, to request Loans
hereunder and execute and deliver documents, instruments, agreements, reports,
statements and certificates in connection herewith.

     "Borrowing" means the total of Loans made by Lender to the Borrower on a
single date and for a single Interest Period.

     "Borrowing Notice" means the request of the Borrower for Loans as further
described in Section 3.C hereof.

     "Business Day" means any day other than a Saturday, Sunday or other day on
which banks are authorized or required to be closed in Chicago, Illinois, and
with respect to LIBOR Loans, a day on which dealings in United States Dollars
may be carried on by the Lender or the Reference Bank in the London interbank
eurodollar market.

     "Capital Expenditures" means all payments, expenditures and the obligations
incurred by a Person for the purchase, creation, improvement, replacement,
substitution, addition, renovation or lease of a fixed or capital asset with a
useful life of more than one year and which are required to be classified or
accounted for as a capital asset or capital lease on the balance sheet or
statement of cash flow of such Person, as determined in accordance with GAAP,
including equipment which is purchased simultaneously with the trade-in of
existing equipment owned by such Person to the extent of the gross amount of the
purchase price of such purchased equipment less the book value of the equipment
being traded in at such time, but excluding (a) expenditures made in connection
with the replacement or restoration of assets, to the extent such replacement or
restoration is financed out of (i) insurance proceeds paid on account of the
loss of or damage to the assets so replaced or restored or (ii) awards or
compensation arising from the taking by condemnation or eminent domain of the
assets so replaced, (b) any portion of capital lease obligations that is not
required to be capitalized on such Person's balance sheet, and (c) interest
capitalized during construction.

     "Capital Lease" shall mean, as to any Person, any lease of (or other
agreement conveying the right to use) immovable or real property or movable or
personal property, which would be required to be classified and accounted for as
a capital lease on a balance sheet of such Person under GAAP;

     "Closing Date" means the later of the date hereof or the date on which all
of the conditions precedent to the Loans set forth in Section 6 hereof have been
fully satisfied.

     "Commitment" means the Revolving Commitment.

                                        2
<PAGE>

     "Consolidated" means the consolidation of accounts in accordance with GAAP,
including principles of consolidation.

     "Contingent Liability" or "Contingent Liabilities" means any agreement,
undertaking or arrangement by which any Person (i) guarantees, endorses or
otherwise becomes or is contingently liable upon (by direct or indirect
agreement, contingent or otherwise, to provide funds for payment, to supply
funds to, or otherwise to invest in, a debtor, or otherwise to assure a creditor
against loss) the debt, obligation or other liability of any other Person (other
than by endorsement of instruments G18 in the course of collection), or (ii)
guarantees the payment of dividends or other distributions upon the shares of
any other Person, or (iii) undertakes or agrees (contingently or otherwise) (a)
to purchase, repurchase, or otherwise acquire any Debt, obligation or liability
or any security therefor, or (b) to provide funds for the payment or discharge
thereof (whether in the form of loans, advances, stock purchases, capital
contributions or otherwise), or (c) to maintain solvency, assets, level of
income or other financial condition, or (d) to make payment other than for
values received; provided, however, that Contingent Liability shall not include
those items listed on Schedule 1.A. The amount of any Person's obligation under
any Contingent Liability shall (subject to any limitation set forth herein) be
deemed to be the outstanding principal amount (or maximum permitted principal
amount, if larger) of the debt, obligation or other liability guaranteed or
supported thereby.

     "Debt" of any Person means all items of indebtedness, obligation or
liability of any kind or nature, whether matured or unmatured, liquidated or
unliquidated, direct or contingent, joint or several, of such Person, including
without limitation and without duplication: Contingent Liabilities of such
Person; any indebtedness secured by a Lien on or payable out of the proceeds or
production from any property of such Person regardless of whether such
indebtedness has been assumed by such Person; obligations representing the
deferred purchase price of property; obligations which are evidenced by notes,
acceptances, or other instruments; capitalized lease obligations; and
obligations in respect of letters of credit.

     "Default" means any event which, with the giving of notice or the passage
of time or both, would constitute, become or mature into an Event of Default.

     "Default Rate" is as defined at Section 3.G hereof.

     "EBITDA" means, for any period, on a Consolidated basis for the Borrower,
for the Measurement Period, the sum for such period of (a) Net Income, plus (b)
depreciation and amortization expense deducted in the determination of such Net
Income, plus (c) Interest Expense deducted in the determination of such Net
Income, plus (d) federal and state income taxes as determined in accordance with
GAAP and deducted in the determination of such Net Income, and minus (e) any
items of gain which are extraordinary items as defined in GAAP to the extent
reflected in the determination of such Net Income.

     "Employee Plan" means any pension, retirement, disability, medical, dental
or other health plan, life insurance or other death benefit plan, profit
sharing, deferred compensation, stock option, bonus or other incentive plan,
vacation benefit plan, severance plan, or other employee benefit plan or
arrangement, including, without limitation, those pension, profit-sharing and
retirement plans of the Borrower described from time to time in the Financial
Statements and any pension plan, welfare plan, Defined Benefit Pension Plans (as
defined in ERISA) or any multi-employer plan, maintained

                                       3
<PAGE>

or administered by the Borrower or any Affiliate of the Borrower, to which the
Borrower or any Affiliate of the Borrower is a party or may have any liability
or by which the Borrower or any Affiliate is bound.

     "ERISA" means the Employee Retirement Income Security Act of 1974, as
amended from time to time, together with all rules and regulations issued
thereunder or in connection therewith.

     "Eurodollar Reserve Percentage" is defined in Section 3.A hereof.

     "Event of Default" means an event or occurrence described in Section 9 of
this Agreement.

     "Executive Share Purchase Plan" refers to the plan described in Schedule
1.A.

     "Expiration Date" is defined at Section 2.A.1 hereof.

     "Financial Assurance" means the financial assurance (whether in the form of
a bond, letter of credit, cash or otherwise) required pursuant to any Act.

     "Financial Hedge" means a swap, collar, floor, cap, or other contract which
is intended to reduce or eliminate the risk of fluctuations in interest rates;

     "Financial Statements" means all of the balance sheets, statements of
operations, statements of cash flow and statements of changes in shareholders'
equity of the Borrower for each Fiscal Year or each month or quarter thereof
which have been delivered to the Lender on or prior to the date hereof and which
are to be delivered to the Lender pursuant to Section 8.A.2 of this Agreement.

     "Fiscal Quarter" means any quarter of a Fiscal Year.

     "Fiscal Year" means the fiscal year of Borrower ending on December 31 for
each year.

     "Funded Debt" means Debt for or with respect to borrowed money with an
ultimate maturity greater than one (1) year from the date of determination,
provided in any event that for all purposes hereof all Loans shall be considered
as and included in Funded Debt.

     "Funded Senior Debt" means (without duplication), with respect to the
Borrower and Affiliates on a consolidated basis, the sum of the following senior
debt: (a) all liabilities, obligations, and indebtedness which in accordance
with GAAP should be classified upon their balance sheet as senior liabilities in
respect of (i) money borrowed, including, without limitation, the debt incurred
pursuant to this Credit Agreement and (ii) obligations under Capital Leases; (b)
senior obligations under reimbursement agreements for advances made by an issuer
of a letter of credit but only if such obligation is payable over more than, or
outstanding longer than, thirty (30) days from the date such obligation arises;
(c) senior obligations with respect to Financial Hedges, but only following the
occurrence of a default under the applicable Financial Hedge or an Event of
Default hereunder; and (d) senior obligations with respect to Debt for which a
Company is responsible or liable solely as a guarantor, but only from and after
the date demand for payment is made under the applicable guaranty. Funded Senior
Debt shall not include those debentures listed in Section 6.A.14 herein.

                                       4
<PAGE>

     "Funded Total Debt" means (without duplication), with respect to the
Borrower and Affiliates on a consolidated basis, the sum of the following: (a)
all liabilities, obligations, and indebtedness which in accordance with GAAP
should be classified upon their balance sheet as liabilities in respect of (i)
money borrowed, including, without limitation, the debt incurred pursuant to
this Credit Agreement and (ii) obligations under Capital Leases; (b) obligations
under reimbursement agreements for advances made by an issuer of a letter of
credit but only if such obligation is payable over more than, or outstanding
longer than, thirty (30) days from the date such obligation arises; (c)
obligations with respect to Financial Hedges, but only following the occurrence
of a default under the applicable Financial Hedge or an Event of Default
hereunder; and (d) obligations with respect to Debt for which a Company is
responsible or liable solely as a guarantor, but only from and after the date
demand for payment is made under the applicable guaranty;

     "GAAP" means generally accepted accounting principles, applied on a basis
consistent with prior periods, as required in the United States or Canada
depending on the country of reporting; provided, however, that GAAP with respect
to any interim financial statements or reports shall be deemed subject to
year-end adjustments and footnotes made in accordance with GAAP.

     "Guarantor" means, individually, each of the following companies: 798676
Alberta Ltd., a corporation incorporated under the laws of Alberta, Canada,
805977 Alberta Ltd., a corporation incorporated under the laws of Alberta,
Canada, Hubacq Inc., a corporation incorporated under the laws of Ontario,
Canada, Hub U.S. Holdings, Inc., a Delaware corporation. "Guarantors" means,
collectively, the four (4) Guarantors.

     "Guaranty" means a guaranty in the form of Exhibit E delivered by a
Guarantor. "Guarantees" means, collectively, the four (4) separate Guarantees
delivered by the four (4) Guarantors.

     "Hazardous Materials" is defined in Section 7.U hereof.

     "Historical Pro Forma Basis" means, for any Measurement Period, ending as
at the end of the Fiscal Quarter or month, as the case may be, the relevant
financial terms (i.e. those included in calculating the financial covenants in
Section 8.A.1) as calculated and determined for the Borrower and any
Subsidiaries acquired during the Measurement Period and/or to be acquired and
with respect to which the calculation of the various financial covenants on a
Historical Pro Forma Basis is being made, all determined in accordance with GAAP
and calculated as if all such acquired and to be acquired Subsidiaries had been
owned by the Borrower and Guarantors through the Measurement Period involved,
and adjusted for nonrecurring acquisition expenses reflected on Schedule 1.B.

     "Interest Expense" means, with respect to any Person, for any period, the
aggregate interest expense for such period (including, without duplication, all
commissions, discounts, and other fees and charges owed with respect to letters
of credit, the portion of any capitalized lease obligations allocable to
interest expense, and capitalized interest) determined in accordance with GAAP
(but in any event excluding interest on tax assessments to the extent such
interest is included in deferred taxes).

     "Interest Period" is defined at Section 3.D hereof.

                                       5
<PAGE>

     "Laws" means all ordinances, statutes, rules, regulations, codes, orders,
injunctions, writs or decrees of any government, whether federal, state,
municipal, local or foreign, of any political subdivision or agency thereof, or
of any court, board or similar entity established by any of the foregoing.

     "LIBOR" is defined in Section 3.A hereof.

     "LIBOR Loan" means a Loan bearing interest at the rate specified in Section
3.A(b) hereof.

     "Lien" means any security interest, mortgage, pledge, hypothecation,
collateral assignment, lien (statutory or otherwise), charge or encumbrance of
any kind or nature whatsoever, any deposit or preferential arrangement of any
kind or nature whatsoever, including, without limitation, any conditional sale
or other title retention agreement, or any financing lease involving
substantially the same economic effect as any of the foregoing.

     "Loan" means a Revolving Loan and "Loans" means the Revolving Loans,
collectively and in the aggregate.

     "Loan Documents" means, collectively, all of those documents set forth and
described in Section 6 hereof, as amended, modified, supplemented or restated
from time to time, and any facilities or agreements in replacement thereof.

     "Materially Adverse Effect" means, relative to any occurrence, event,
condition or circumstance, or any change therein, of whatever nature (including
any adverse determination in any litigation, arbitration, or governmental
investigation or proceeding), a materially adverse effect on: (i) the assets of
or the business, revenues, financial condition, operations of the Borrower on a
consolidated basis or any Guarantor; or (ii) the ability of the Borrower or any
Guarantor to timely or fully perform any of the payment or other material
obligations involving any of its Debt.

     "Measurement Period" means with respect to each quarter then ending,
beginning with the quarter ending December 31, 2000 and thereafter, the rolling
period of the four fiscal quarters then ending.

     "Monies" means (i) all cash at any time on deposit with or held by the
Lender or any other bank or institution for the account of the Borrower, (ii)
all accounts of the Borrower with the Lender or any other bank or institution,
(iii) all investments and reinvestments of amounts from time to time credited to
such accounts, and (iv) all interest, dividends, distributions and other
proceeds payable on or with respect to such investments and reinvestments and
such accounts.

     "Net Income" means, for any period, the net income of Borrower and its
Subsidiaries on a consolidated basis for such period, before the payment of
dividends on all capital stock, determined in accordance with GAAP.

     "Net Worth" means, with respect to the Borrower on a consolidated basis, as
calculated at any date of determination, the amount of Stockholder's Equity of
Borrower, determined on a consolidated basis at such date in accordance with
GAAP but exclusive of any adjustments under FASB 115.

                                       6
<PAGE>

     "Note" means the Revolving Note.

     "Obligations" means each and every promise, agreement, covenant, debt and
all other liabilities, obligations and indebtedness of the Borrower, its
successors or assigns, to the Lender, whether primary, secondary, contingent,
direct, or indirect, howsoever incurred, created, arising or evidenced, whether
presently or hereafter existing, evidenced, arising or becoming due, which such
promise, agreement, covenant, debt, liabilities, obligations or indebtedness
arises from or in connection with the Loans or under this Agreement, the Note,
or any other Loan Documents, or any refinancings, substitutions, extensions,
renewals, replacements and modifications for or of the foregoing, or the
enforcement by the Lender of its rights and remedies under any or all of the
foregoing (including all costs, expenses and reasonable attorneys' and
paralegals' fees and expenses incurred by the Lender), including any of the
foregoing that arises after the filing of a petition by or against the Borrower
under any insolvency or related proceeding, even if the obligations do not
accrue because of the automatic stay under bankruptcy laws or otherwise.

     "Outstanding Principal Obligations" means, at any time, the sum of the
aggregate principal amount of all Loans advanced to the Borrower outstanding and
unpaid at such time, all expressed in U.S. Dollars;

     "Permitted Investments" means (i) cash, (ii) readily marketable securities
issued or guaranteed by the government of the United States of America or any
agency thereof or by the government of Canada or any province thereof having a
maturity at the time of issuance of not exceeding one year, (iii) commercial
paper rated at least A-1 by Standard & Poor's Corporation or P-1 by Moody's
Investors Service, Inc., having a maturity at the time of issuance not exceeding
one year, and money market funds invested in short-term securities rated at
least as provided in the preceding clause, (iv) certificates of deposit of or
demand or time deposits with or repurchase agreements of any commercial bank
which is organized under the laws of the United States of America or any state
thereof or of any Canadian national chartered bank or trust company and has
capital and surplus of in excess of $100,000,000, and demand deposits or local
operating accounts with the Lender or any other financial institutions
acceptable to the Lender, (v) property used in the ordinary course of business,
the purchase of which does not otherwise violate or cause or result in a
violation of any provision hereof, (vi) current assets arising from the sale of
goods and services in the ordinary course of business, (vii) current loans or
advances to employees in the ordinary course of business, which are set forth in
Schedule 1.C, and future loans to officers or employees not in excess of $50,000
in the aggregate at any time outstanding or loans or guarantees under the
Executive Share Purchase Plan not exceeding $10,000,000 or under the Restricted
Stock Plan not to exceed $ 1,000,000, and (viii) existing investments in
existing Subsidiaries or Affiliates of Borrower.

     "Permitted Liens" means any Liens (i) provided for hereunder or under the
Loan Documents in favor of the Lender; (ii) for taxes or assessments not yet due
and payable; (iii) of vendors incurred in the ordinary course of business,
payment with respect to which is not then due and payable; (iv) which arise out
of pledges or deposits under any Laws relating to workers' compensation,
unemployment insurance, old age pensions or other social security or retirement
benefits; (v) which are being contested in good faith by appropriate and lawful
proceedings, so long as levy and execution thereon have been and continue to be
stayed and which do not materially impair or adversely affect the value or use
of the assets and properties of the Borrower or the operation or

                                       7
<PAGE>

condition of the business of the Borrower; (vi) which are existing on Equipment,
Fixtures and/or real property of the Borrower and are set forth on Schedule 7.G
hereto, provided, however, that the Debt secured by existing Liens on Equipment,
Fixtures and/or real property shall not be increased and such Debt shall not be
secured by any Equipment, Fixtures and/or real property other than that securing
such Debt as of the date hereof; (vii) which are purchase money security
interests on Equipment and/or Fixtures (exclusive of any such Liens referred to
in subparagraph (vi) above) securing the deferred purchase price thereof
hereinafter; provided, however, that any such Lien shall attach only to the
Equipment and/or Fixture financed by the holder of such Lien; (viii) which are
currently existing on Accounts of the Borrower and are set forth on Schedule 7.G
hereto; or (ix) with respect to the property (other than Accounts) of any new
Subsidiary of the Borrower which becomes a Subsidiary after the date hereof, so
long as such Liens are either incurred in connection with an acquisition by the
Borrower permitted under Section 8.B.2 hereof or were in existence prior to such
acquisition, and, if incurred in connection with such an acquisition, are
subordinated to the Liens in favor of the Lender. "Equipment", "Fixture" and
"Accounts" shall be defined as in the Uniform Commercial Code of Illinois, as
amended from time to time.

     "Person" means any individual, sole proprietorship, joint venture,
partnership, association, unincorporated organization, joint-stock company or
association, limited liability company, trust, corporation, entity, institution
or government body (or agency or political subdivision thereof).

     "Pro Forma EBITDA" means EBITDA calculated on a Historical Pro Forma Basis.

     "Prime Rate" means the rate of interest announced or referred to by the
Lender from time to time as its prime or reference rate for interest rate
determinations, with each change in such Prime Rate to take effect on the same
day such change is announced by the Lender. The use of the term "Prime Rate"
herein or in the Note is not intended nor does it imply that said rate of
interest is a preferred rate of interest or one which is offered by the Lender
to its most creditworthy customers.

     "Prime Rate Loan" means a Loan bearing interest at the rate specified in
Section 3.A(a) hereof.

     "Reference Bank" means ABN/AMRO Bank.

     "Refunding Borrowing" is defined in Section 3.C.(c) hereof.

     "Restricted Payments" means (i) any dividend payment or other distribution,
direct or indirect, of assets, properties, cash, rights, obligations or
securities on account of any shares of any class of capital stock of the
Borrower which is not a wholly-owned Subsidiary of Borrower except Canadian
$0.07/share quarterly dividend if Event of Default has not occurred, or (ii) any
exchange, conversion, repurchase, purchase, redemption, retirement, sinking fund
or other similar acquisition for value, direct or indirect, of any shares of any
class of capital stock of the Borrower or any warrants, rights or options to
acquire any such shares, now or hereafter outstanding, or (iii) any earn-out
under any acquisition agreement, unless permitted by the terms thereunder and
approved by Lender.

     "Restricted Stock Plan" refers to the plan described in Schedule 1.A.

                                       8
<PAGE>

     "Revolving Commitment" is defined in Section 2.A.1 hereof.

     "Revolving Loans" is defined in Section 2.A.1 hereof.

     "Revolving Note" means the promissory note of the Borrower evidencing the
Revolving Loans.

     "Revolving LIBOR Loan" means a Revolving Loan which is also a LIBOR Loan.

     "Revolving Prime Rate Loan" means a Revolving Loan which is also a Prime
Rate Loan.

     "SEC" means the Securities and Exchange Commission.

     "Stockholder's Equity" means the sum of the capital stock, additional
paid-in-capital and retained earnings (after deducting treasury stock) as
determined in accordance with GAAP.

     "Subsidiary" with respect to any Person means any corporation or other
business entity of which more than fifty percent (50%) of the outstanding common
stock or other ownership interests is owned, directly or indirectly, by such
Person.

     "Termination Date" means the earlier of (a) July 17, 2002 , and (b) the
date on which the Obligations shall automatically, or by virtue of a declaration
by the Lender made in accordance with this Agreement, become due and payable.

     "UCC" means the version of the Uniform Commercial Code as enacted in
Illinois, as amended from time to time.

     Section 1.B. Any accounting terms used but not otherwise defined herein
shall have their customary meanings as defined in, pursuant to, or in accordance
with GAAP. All other terms used but not otherwise defined herein shall have the
meanings provided by the UCC to the extent said terms are used or defined
therein.

     Section 1.C. Unless otherwise defined or the context otherwise requires,
terms for which meanings are provided in this Agreement shall have such meanings
when used in the other Loan Documents.

     Section 1.D. In this Agreement and each other Loan Document, unless a clear
contrary intention appears: (i) the singular number includes the plural number,
and vice versa; (ii) reference to any Person includes such Person's successors
and assigns but, if applicable, only if such successors and assigns are
permitted by this Agreement, and reference to a Person in a particular capacity
excludes such Person in any other capacity or individually; (iii) reference to
any gender includes each other gender; (iv) references to any agreement
(including this Agreement and the Schedules, Appendices and Exhibits hereto),
document or instrument means such agreement, document or instrument as amended
or modified and in effect from time to time in accordance with the terms thereof
and, if applicable, the terms hereof and reference to any promissory note
includes any promissory note which is an extension or renewal thereof or a
substitute or replacement therefor; (v) unless the context indicates otherwise,
reference to any Article, Section, Appendix, Schedule or

                                       9
<PAGE>

Exhibit means such Article or Section hereof or Schedule, Appendix or Exhibit
hereto; (vi) "hereunder," "hereof," "hereto" and words of similar import shall
be deemed references to this Agreement as a whole and not to any particular
Article, Section or other provision hereof; (vii) "including" (and with
correlative meaning "include") means including without limiting the generality
of any description preceding such term; and (viii) relative to the determination
of any period of time, "from" means "from and including" and "to" and "through"
means "to but excluding."

     Section 1.E. If, after the date of this Agreement, there shall occur any
change in GAAP from those used in the preparation of the Borrower's audited
financial statements for the Fiscal Year ending December 31, 2000, and such
change shall result in a change in the method of calculation of any financial
covenant, standard or term found in this Agreement, either Borrower or the
Lender may by notice to the other require that the Lender and the Borrower
negotiate in good faith to amend such covenant, standard or term so as equitably
to reflect such change in GAAP, with the desired result being that the criteria
for evaluating the financial condition of the Borrower shall be the same as if
such change had not been made.

SECTION 2.   CREDIT FACILITY.

     Section 2.A. Revolving Loans and Revolving Note. Subject to the terms and
conditions of this Agreement, the Lender agrees to lend to the Borrower the
Revolving Loans as provided in this Section.

     2.A.1. Revolving Loans. Subject to the terms and conditions of this
Agreement, the Lender agrees to lend to the Borrower from time to time until the
earlier of the Termination Date or the occurrence of either a Default or an
Event of Default hereunder (the earlier of such date being hereinafter referred
to as the "Expiration Date"), such sums, in a minimum amount(s) as set forth in
Section 3.B hereof, as Borrower may request from time to time by a Borrowing
Notice pursuant to Section 3.C hereof; provided, however, that the aggregate
principal amount of all loans outstanding under this Section 2.A.1
(individually, a "Revolving Loan" or "Loan" or, collectively, the "Revolving
Loans" or "Loans") at any one time shall not exceed Twenty-Five Million Dollars
($25,000,000) less any amounts committed and/or outstanding under Lender's
credit facilities for J.P. Flanagan Corporation, pursuant to a credit agreement
between Lender and J.P. Flanagan dated October 31, 2000, and Burnham Stewart
Group, Inc. pursuant to a credit agreement between Michigan National Bank dated
November 20, 2000, at the Closing Date (such amount hereinafter referred to as
the "Revolving Commitment"). Subject to the terms and conditions hereof, the
Borrower may borrow or repay and reborrow hereunder, from the date hereof until
the Expiration Date, either the full amount of the Revolving Commitment or any
lesser sum in the minimum amounts referred to herein. If, at any time, the
Revolving Loans exceed the Revolving Commitment, the Borrower shall immediately
notify the Lender of the existence of and pay to the Lender the amount of such
excess. For all purposes of this Agreement, where a determination of the unused
or available amount of the Revolving Commitment is necessary, the Revolving
Loans shall be deemed to utilize the Revolving Commitment.

     2.A.2. Revolving Note. In order to evidence the Revolving Loans, at the
time of the making of the initial Revolving Loan, the Borrower will execute and
deliver a promissory note, substantially in the form of Exhibit A hereto
(together with any and all amendments, modifications, supplements,

                                       10
<PAGE>

substitutions, renewals, extensions and restatements, thereof and therefor, the
"Revolving Note"). The Revolving Loans shall bear and pay interest and mature on
the date as set forth therein and herein.

SECTION 3.  GENERAL PROVISIONS APPLICABLE TO ALL LOANS.

     Section 3.A. Applicable Interest Rates. The Borrower may elect that each
Borrowing of each Loan be made by means of a Prime Rate Loan or a LIBOR Loan.

     (a) Prime Rate Loans. Each Prime Rate Loan by the Lender shall bear
interest (computed on the basis of a year of 360 days and actual days elapsed)
on the unpaid principal amount thereof from the date such Loan is made until
maturity (whether by acceleration or otherwise) at a rate per annum equal to the
Prime Rate from time to time in effect. Interest on all Prime Rate Loans is
payable on the last day of each calendar month and at maturity (whether by
acceleration or otherwise), commencing July 31, 2001.

     (b) LIBOR Loans. Each LIBOR Loan made by the Lender shall bear interest
(computed on the basis of a year of 360 days and actual days elapsed) on the
unpaid principal amount thereof from the date such Loan is made until maturity
(whether by acceleration or otherwise) at a rate per annum equal to the sum of
the Applicable LIBOR Margin plus the Adjusted LIBOR, payable on the last day of
the applicable Interest Period and at maturity (whether by acceleration or
otherwise), and, if the applicable Interest Period is longer than three months,
on each day occurring every three months after the date such Loan is made.

     "Adjusted LIBOR" means, for any Borrowing of LIBOR Loans, a rate per annum
determined in accordance with the following formula:

                                                  LIBOR
                                      -----------------------------
              Adjusted LIBOR = 100% - Eurodollar Reserve Percentage

     "LIBOR" means, for an Interest Period for a Borrowing of LIBOR Loans, the
rate of interest per annum (rounded upwards, if necessary, to nearest 1/100 of
1%) at which deposits in U.S. dollars in immediately available funds are offered
by the Lender or the Reference Bank at approximately 11:00 a.m. (London, England
time) two (2) Business Days before the beginning of such Interest Period by
prime banks in the interbank eurodollar market for a period equal to such
Interest Period and in an amount equal or comparable to the principal amount of
the LIBOR Loan scheduled to be made by the Lender as part of such borrowing.

     "Eurodollar Reserve Percentage" means, for any Borrowing of LIBOR Loans,
the daily average for the applicable Interest Period of the maximum rate at
which reserves (including, without limitation, any supplemental, marginal and
emergency reserves) are imposed during such Interest Period by the Board of
Governors of the Federal Reserve System (or any successor) under Regulation D on
"eurocurrency liabilities", as defined in such Board's Regulation D, (or in
respect of any other category of liabilities that includes deposits by reference
to which the interest rate on LIBOR Loans is determined or any category of
extension of credit or other assets that include loans by non-United States
offices of Lender to United States residents) subject to any amendments of such
reserve requirement by such Board or its successor, taking into account any
transitional

                                       11
<PAGE>

adjustments thereto. For purposes of this definition, the LIBOR Loans shall be
deemed to be "eurocurrency liabilities" as defined in Regulation D.

     (c) Margin, Rate and Fee Determinations. The Lender shall determine each
interest rate applicable to the Loans hereunder and its determination thereof
shall be conclusive and binding except in the case of manifest error.

     Section 3.B. Minimum and Maximum Borrowing Amounts. Each Borrowing shall be
in an amount not less than $1,000,000 or any larger amount that is an integral
multiple of $1,000,000.

     Section 3.C. Borrowing Procedures.

     (a) Notice to the Lender. The Borrower shall give telephonic or telecopy
notice to the Lender in the form attached hereto as Exhibit B (the "Borrowing
Notice") (which notice shall be irrevocable once given and, if by telephone,
shall be promptly confirmed in writing) by no later than 12:00 noon (Chicago
time) (i) on the date at least three (3) Business Days prior to the date of each
requested Borrowing of LIBOR Loans and (ii) on the date of any requested
Borrowing of Prime Rate Loans. Each such notice shall specify the date of the
requested Borrowing (which shall be a Business Day), the amount of the requested
Borrowing, the type of Loans to comprise such Borrowing (if no election as to
type of Borrowing is specified in any such notice, then the requested Borrowing
shall be of Prime Rate Loans) and, if such Borrowing is to be comprised of LIBOR
Loans, the Interest Period applicable thereto. The Borrower agrees that the
Lender may rely on any such telephonic or telecopy notice given by any person
the Lender in good faith believes is an Authorized Officer without the necessity
of independent investigation and in the event any notice by such means conflicts
with the written confirmation, such notice shall govern if the Lender has acted
in reliance thereon.

     (b) Borrower's Failure to Notify. In the event the Borrower fails to give
notice pursuant to Section 3.C.(a) above of the reborrowing of the principal
amount of any maturing Borrowing and has not notified the Lender by 12:00 noon
(Chicago time) on the day such Borrowing matures that it intends to repay such
Borrowing with funds not borrowed hereunder, the Borrower shall be deemed to
have requested a Borrowing of Prime Rate Loans on such day in the amount of the
maturing Borrowing then due, in each case subject to Section 6.C hereof, which
new Borrowing shall be applied to pay, as the case may be, the maturing
Borrowing then due.

     (c) Disbursement of Loans. Not later than 2:00 p.m. (Chicago time) on the
date of any Borrowing (a "Funding Date") of LIBOR Loans or Prime Rate Loans,
Lender shall make available its Loan in funds immediately available in Chicago,
Illinois, except to the extent such Borrowing is either a reborrowing, in whole
or in part, of the principal amount of a maturing Borrowing of Loans (a
"Refunding Borrowing") in which case Lender shall record the Loan made by it as
a part of such Refunding Borrowing on its books or records or on a schedule to
the appropriate Note, as provided in Section 3.H.(b) hereof, and shall effect
the repayment, in whole or in part, as appropriate, of its maturing Loan through
the proceeds of such new Loan. Subject to Section 6 hereof, the Lender shall
make the proceeds of each Borrowing available to the Borrower at the Lender's
principal office in Chicago, Illinois.

                                       12
<PAGE>

     Section 3.D. Interest Periods. As provided in Section 3.C hereof, at the
time of each request for the Borrowing of LIBOR Loans hereunder the Borrower
shall select an Interest Period applicable to such Loans from among the
available options. The term "Interest Period" means the period commencing on the
date a Borrowing of LIBOR Loans is made and ending on the date, as the Borrower
may select, 1, 2, 3 or 6 months thereafter; provided, however, that:

     (a) the Borrower may not select an Interest Period that extends beyond the
Termination Date;

     (b) whenever the last day of any Interest Period would otherwise be a day
that is not a Business Day, the last day of such Interest Period shall be
extended to the next succeeding Business Day, provided that, if such extension
would cause the last day of such Interest Period to occur in the following
calendar month, the last day of such Interest Period shall be the immediately
preceding Business Day; and

     (c) for purposes of determining the Interest Period for a Borrowing of
LIBOR Loans, a month means a period starting on one day in a calendar month and
ending on the numerically corresponding day in the next calendar month;
provided, however, that if there is no numerically corresponding day in the
month in which such an Interest Period is to end or if such an Interest Period
begins on the last Business Day of a calendar month, then such Interest Period
shall end on the last Business Day of the calendar month in which such Interest
Period is to end.

     Section 3.E. Maturity of LIBOR Loans. Each LIBOR Loan shall mature and
become due and payable by the Borrower on the last day of the Interest Period
applicable thereto.

     Section 3.F. Prepayments.

     (a) Generally. The Borrower shall have the privilege of prepaying without
premium or penalty and in whole or in part (but, if in part, then: (i) in an
amount not less than $1,000,000 or any larger amount that is an integral
multiple of $1,000,000 in the case of Prime Rate Loans, and in an amount not
less than $1,000,000 or any larger amount that is an integral multiple of
$1,000,000 in the case of LIBOR Loans and (ii) in an amount such that the
minimum amount required for a Borrowing pursuant to Section 3.B hereof remains
outstanding) on any Business Day upon prior notice to the Lender which must be
received by the Lender by no later than 12:00 noon (Chicago time) on the date of
such prepayment in the case of Prime Rate Loans and by no later than 12:00 noon
(Chicago time) on the date three Business Days in advance of the date of such
prepayment in the case of LIBOR Loans, such prepayment to be made by the payment
of the principal amount to be prepaid and accrued interest thereon and, in the
case of LIBOR Loans, any compensation required by Section 3.I hereof. Partial
prepayments of any outstanding type of Loan shall be applied to the various
Borrowings and various installments of principal thereof in the inverse order of
their maturity.

     (b) Reborrowings. Any amount paid or prepaid on the Revolving Loans before
the Expiration Date may, subject to the terms and conditions of this Agreement,
be borrowed, repaid and borrowed again.

     (c) Mandatory Repayments.

                                       13
<PAGE>

          (i) Subject to the terms and conditions hereof, the Outstanding
     Principal Obligations under the Credit Facility shall be repaid forthwith,
     upon demand by or on behalf of the Lender, to the extent that the
     Outstanding Principal Obligations under the Credit Facility exceed the then
     current Commitment in respect of the Credit Facility, whether as a result
     of oversight or otherwise, together with all accrued interest to the date
     of such repayment on the principal amount so repaid and any other amounts
     payable to the Lender by the Borrower hereunder in respect thereof
     including, without limitation, pursuant to Section 11.K.

          (ii) The Loans shall be immediately repaid in and by an amount equal
     to the percentage thereof which is equal to a fraction, the numerator of
     which is the amount of any permanent repayment of all or any portion of the
     credit facilities of the Borrower with Bank of Montreal and/or Bank of
     America dated June 21, 2001 and July 19, 2001, respectively, and the
     denominator of which is the then current aggregate amount of Loans
     outstanding hereunder and credit extended under said credit facilities with
     Bank of Montreal and Bank of America at the time of said repayment.

     Section 3.G. Default Rate. If any Event of Default has occurred and is
continuing, then each Loan or other monetary Obligation shall bear interest,
after as well as before judgment (computed on the basis of a year of 360 days
and actual days elapsed) from the date of such Event of Default until such Loan
or other monetary Obligation is paid in full, payable on demand, at a rate per
annum (the "Default Rate") equal to:

     (a) with respect to any Prime Rate Loan, the sum of two percent (2%) plus
the Prime Rate from time to time in effect; and

     (b) with respect to any LIBOR Loan, the sum of two percent (2%) plus the
rate of interest in effect thereon at the time of such default until the end of
the Interest Period applicable thereto and, thereafter, at a rate per annum
equal to the sum of two percent (2%) plus the Prime Rate from time to time in
effect; and

     (c) with respect to other monetary Obligations for which a Default Rate is
not otherwise specified, the sum of two percent (2%) plus the Prime Rate from
time to time in effect.

     Section 3.H. Note.

     (a) The Loan made to the Borrower by Lender shall be evidenced by a
promissory note of the Borrower, dated the date hereof, payable to the order of
Lender in the principal amount of the Commitment, and otherwise be in the form
of Exhibit A hereto.

     (b) Lender shall record on its books or records or on a schedule to the
appropriate Note the amount of each Loan made by it to the Borrower, the
Interest Period thereof (if applicable), all payments of principal and interest
and the principal balance from time to time outstanding thereon, the interest
rate applicable thereto, and, in respect of any Loan, the type of such Loan;
provided that prior to the transfer of the Note all such amounts shall be
recorded on a schedule to the Note. The record thereof, whether shown on such
books or records of Lender or on a schedule to the Note, shall be prima facie
evidence as to all such amounts; provided, however, that the failure of Lender
to

                                       14
<PAGE>

record any of the foregoing or any error in any such record shall not limit or
otherwise affect the obligation of the Borrower to repay all Loans made
hereunder together with accrued interest thereon. At the request of Lender and
upon Lender tendering to the Borrower the Note to be replaced, the Borrower
shall furnish a new Note to Lender to replace any outstanding Note and at such
time the first notation appearing on a schedule on the reverse side of, or
attached to, the Note shall set forth the aggregate unpaid principal amount of
all Loans, if any, then outstanding thereon.

     Section 3.I. Funding Indemnity. In the event Lender shall incur any loss,
cost or expense (including, without limitation, any loss of profit, and any
loss, cost or expense incurred by reason of the liquidation or re-employment of
deposits or other funds acquired by Lender to fund or maintain any LIBOR Loan or
the relending or reinvesting of such deposits or amounts paid or prepaid to
Lender) as a result of:

     (a) any payment (including prepayment) of a LIBOR Loan on a date other than
the last day of its Interest Period for any reason, whether before or after
default, and whether or not such payment is required by any provisions of this
Agreement, or

     (b) any failure (because of a failure to meet the conditions of Section 6
or otherwise) by the Borrower to borrow a LIBOR Loan on the date specified in a
notice given pursuant to Section 3.C hereof,

then, upon the demand of Lender, the Borrower shall pay to Lender such amount as
will reimburse Lender for such loss, cost or expense. If Lender makes such a
claim for compensation, it shall provide to the Borrower a certificate executed
by an officer of Lender setting forth the amount of such loss, cost or expense
in reasonable detail (including an explanation of the basis for and the
computation of such loss, cost or expense) and the amounts shown on such
certificate shall be deemed rebuttably presumptive evidence of the correctness
thereof.

     Section 3.J. Change in Circumstances, Etc.

     (a) Change of Law. Notwithstanding any other provisions of this Agreement
or the Note, if at any time after the date hereof any change in applicable Law
or in the interpretation thereof makes it unlawful for Lender to make or
continue to maintain LIBOR Loans or to give effect to its obligations as
contemplated hereby, Lender shall promptly give notice thereof to the Borrower,
and Lender's obligations to make or maintain LIBOR Loans under this Agreement
shall terminate until it is no longer unlawful for Lender to make or maintain
LIBOR Loans. The Borrower shall prepay on demand the outstanding principal
amount of any such affected LIBOR Loans, together with all interest accrued
thereon and all other amounts then due and payable to Lender under this
Agreement; provided, however, subject to all of the terms and conditions of this
Agreement, the Borrower may then elect to borrow the principal amount of the
affected LIBOR Loan from Lender by means of a Prime Rate Loan from Lender.

     (b) Unavailability of Deposits or Inability to Ascertain, or Inadequacy of,
LIBOR. If on or prior to the first day of any Interest Period for any Borrowing
of LIBOR Loans:

          (i) the Lender advises the Borrower that deposits in United States
     Dollars (in the applicable amounts) are not being offered to it or the
     Reference Bank in the interbank eurodollar market, for such Interest
     Period, or

                                       15
<PAGE>

          (ii) Lender advises the Borrower that LIBOR as determined by the
     Lender will not adequately and fairly reflect the cost to Lender of funding
     LIBOR Loans for such Interest Period,

then, until the Lender notifies the Borrower that the circumstances giving rise
to such suspension no longer exist, the obligation of the Lender to make LIBOR
Loans shall be suspended.

     (c) Increased Cost and Reduced Return.

     (1) If on or after the date hereof, the adoption of any applicable Law, or
any change therein, or any change in the interpretation or administration
thereof by any governmental authority, central bank or comparable agency charged
with the interpretation or administration thereof, or compliance by Lender with
any request or directive (whether or not having the force of law) of any such
authority, central bank or comparable agency:

          (i) shall subject Lender to any tax, duty or other charge with respect
     to the Loans, the Note or its obligation to make Loans, or shall change the
     basis of taxation of payments to Lender of the principal of or interest on
     the Loans or any other amounts due under this Agreement in respect of its
     Loans or its obligation to make Loans (except for changes in the rate of
     tax on the overall net income of Lender imposed by the jurisdiction in
     which Lender's principal executive office is located); or

          (ii) shall impose, modify or deem applicable any reserve, special
     deposition or similar requirement (including, without limitation, any such
     requirement imposed by the Board of Governors of the Federal Reserve
     System, but excluding with respect to any LIBOR Loans any such requirement
     included in an applicable Eurodollar Reserve Percentage) against assets of,
     deposits with or for the account of, or credit extended by, Lender or shall
     impose on Lender or on the interbank market any other condition affecting
     the Loans, the Note or Lender's obligation to make Loans;

and the result of any of the foregoing is to increase the cost to Lender of
making or maintaining any Loan, or to reduce the amount of any sum received or
receivable by Lender under this Agreement or under the Note with respect
thereto, by an amount deemed by Lender to be material, then, within fifteen (15)
days after demand by Lender, the Borrower shall be obligated to pay Lender such
additional amount or amounts as will compensate Lender for such increased cost
or reduction (computed commencing on the effective date of any event mentioned
herein). Lender agrees to use its best efforts to give the Borrower notice of
the occurrence of any event mentioned herein.

     (2) If Lender shall determine that the adoption after the date hereof of
any applicable Law regarding capital adequacy, or any change in any existing
Law, or any change in the interpretation or administration thereof by any
governmental authority, central bank or comparable agency charged with the
interpretation or administration thereof, or compliance by Lender (or any of its
branches or any corporation controlling Lender (or any of its branches or any
corporation controlling Lender) with any request or directive regarding capital
adequacy (whether or not having the force of law) of any such authority, central
bank or comparable agency, has or would have the

                                       16
<PAGE>

effect of reducing the rate of return on Lender's or such corporation's capital,
as the case may be, as a consequence of Lender's obligations hereunder or for
the credit which is the subject matter hereof to a level below that which Lender
or such corporation could have achieved but for such adoption, change or
compliance (taking into consideration Lender's or such corporation's policies
with respect to liquidity and capital adequacy) by an amount deemed by Lender to
be material, then from time to time, within fifteen (15) days after demand by
Lender, the Borrower shall pay to the Lender such additional amount or amounts
reasonably determined by Lender as will compensate Lender for the reduction.

     (d) Discretion of Lender as to Manner of Funding. Notwithstanding any other
provision of this Agreement, Lender shall be entitled to fund and maintain its
funding of all or any part of the Loans in any manner it sees fit, it being
understood, however, that for the purposes of this Agreement all determinations
hereunder shall be made as if Lender had actually funded and maintained each
LIBOR Loan through the purchase of deposits in the relevant market having a
maturity corresponding to such Loan's Interest Period and bearing an interest
rate equal to LIBOR, for such Interest Period.

     (e) Implementation of European Economic and Monetary Union ("EMU"). This
Agreement (including, without limitation, the definition of LIBOR and related
definitions) will be amended to the extent determined by the Lender (acting
reasonably and in consultation with the Borrower) to be necessary to reflect
implementation of the EMU and change in currency and to put the Lender and the
Borrower in the same position, so far as possible, that they would have been in
if such implementation and change in currency had not occurred.

SECTION 4.  FEES.

     Section 4.A. Revolving Commitment Fees. The Borrower shall pay to the
Lender such fees as set forth in the letter agreement dated the date hereof
between Borrower and Lender with respect to the Revolving Commitment
("Commitment Fees").

     Section 4.B. Non-Utilization Fee. The Borrower agrees to pay to the Lender
a non-utilization fee equal to one-fifth of one percent (0.2%) of the total of
(a) the Revolving Loan Commitment, less (b) the daily average of the aggregate
principal amount of all Revolving Loans outstanding which non-utilization fee
shall be (A) calculated on the basis of a year consisting of 360 days, (B) paid
for the actual number of days elapsed, and (C) payable quarterly in arrears on
the last day of each Fiscal Quarter and on the Revolving Loan Maturity Date.

                                       17
<PAGE>

SECTION 5.  PLACE AND APPLICATION OF PAYMENTS.

     Section 5.A. Place and Application of Payments. All payments of principal
of and interest on the Loans and all payments of fees and all other amounts
payable under this Agreement shall be made to the Lender no later than 12:00
Noon (Chicago time) at the principal office of the Lender in Chicago, Illinois
(or such other location in the State of Illinois as the Lender may designate to
the Borrower). Any payments received after such time shall be deemed to have
been received by the Lender on the next Business Day. All such payments shall be
made in lawful money of the United States of America, in immediately available
funds at the place of payment, without setoff or counterclaim. Alternatively, at
its sole discretion, the Lender may charge against or debit any deposit account
or other Monies of the Borrower on deposit with or in possession of the Lender,
all or any part of any amount due hereunder or under the Note. The Lender's
right from time to time after the occurrence or happening of an Event of Default
hereunder (which has not been cured or waived in a writing signed by the Lender)
to set off indebtedness owing by Borrower to the Lender against the Borrower's
Monies, deposits, credits, accounts or other property now or at any time in the
possession or control of the Lender, except as provided herein, is hereby
acknowledged and agreed to by the Borrower.

SECTION 6.  CONDITIONS PRECEDENT AND SUBSEQUENT.

     Notwithstanding any other provisions of this Agreement, the Lender, at its
sole option and in its sole discretion, need not make any Loans to the Borrower
for the account of the Borrower, unless the conditions precedent described below
are fulfilled:

     Section 6.A. Delivery of Documents as Conditions Precedent. The delivery of
each of the following documents, each of which shall be satisfactory to the
Lender in substance and form, by or on behalf of the Borrower to the Lender
shall constitute separate and distinct conditions precedent to the effectiveness
of this Agreement and the making of any Loans:

     6.A.1. Agreement. A copy of this Agreement duly executed by Borrower.

     6.A.2. Note. The Revolving Note dated as of the Closing Date duly executed
by the Borrower and payable to the Lender.

     6.A.3. Evidence of Insurance. Evidence that the Borrower has insurance as
required by Section 8.A.11, including property, casualty and liability insurance
satisfactory to the Lender, together with: (i) loss payable/mortgagee
endorsements naming the Lender as loss payee and mortgagee with respect to
property and casualty insurance; and (ii) certificate(s) of insurance(s) and
binder(s) naming the Lender as additional insured with respect to liability
insurance.

     6.A.4. Articles of Incorporation. Articles of Incorporation or similar
document, and each and every amendment thereto, of the Borrower and each
Guarantor, certified of recent date by the Secretary of State or appropriate
government official in the State or Canadian Province in which the Borrower is
incorporated.

     6.A.5. Good Standing. Certificate of the appropriate Secretary of State or
government official of recent date and certificate of non-restriction, as to the
good standing or status of the

                                       18
<PAGE>

Borrower and each Guarantor in the State of its incorporation and where it is
qualified to do business.

     6.A.6. Secretary's Certificate. Certificate of Secretary of the Borrower
and each Guarantor as to (i) resolutions authorizing entry into, execution,
delivery and performance of its obligations under this Agreement and related
Loan Documents to which it is a party, (ii) the incumbency and signatures of the
officers authorized to execute on its behalf the Loan Documents to which it is a
party, (iii) its Articles of Incorporation, and (iv) its bylaws.

     6.A.7. Solvency Certificate. Certificate of Solvency duly executed by the
Borrower and each Guarantor, with pro forma balance sheet and cash flow
projections provided for thereunder.

     6.A.8. Opinion. The satisfactory opinion letters of Torys, counsel for the
Borrower and the Guarantors, and W. Kirk James, general counsel of the Borrower
dated as of the Closing Date and addressed to the Lender as to the matters
referred to in Sections 7.A., 7.B., 7.C., 7.D., 7.E., 7.F. (as far as litigation
is concerned), 7.J., of this Agreement, and Guaranties of the Guarantors.

     6.A.9. Environmental Data. All environmental data, information and reports
concerning any real estate or any other property which the Lender may request.

     6.A.10. Officer's Certificate. A certificate of the President of Borrower
certifying: (i) that the conditions herein insofar as they relate to the
Borrower have been satisfied, (ii) as to the truth of the representations and
warranties herein contained, and (iii) that no Materially Adverse Effect has
occurred since March 31, 2001.

     6.A.11. Guarantees. Each of the four (4) Guarantees dated as of the Closing
Date duly executed by the respective Guarantor in favor of the Lender.

     6.A.12. Financial Statements of Guarantors. Internally prepared financial
statements as of December 31, 2000 for each of the Guarantors, including a
balance sheet and income statements, which are the basis for the consolidated
statements previously delivered.

     6.A.13. Other Documents. In form and substance satisfactory to the Lender,
any other documents which the Lender may reasonably request from or to be
delivered by the Borrower from time to time to effect the intent of this
Agreement and the Loan Documents.

     6.A.14. Subordinated Debentures. Borrower has provided Lender with
satisfactory evidence that the Subordinated Debentures in the amounts of
$17,500,000 from Odyssey Reinsurance Corporation, a Delaware Corporation,
$17,500,000 from United States Fire Insurance Company, a New York corporation
and Cdn $42,500,000 from Royal Trust Corporation of Canada as Trustee for Zurich
Insurance Company, a corporation incorporated under the laws of Switzerland have
been executed and funded.

     Section 6.B. Fees. All fees referred to in Section 4 hereof which are then
due shall have been paid to the Lender on the Closing Date.

                                       19
<PAGE>

     Section 6.C. Conditions Precedent. The following conditions are conditions
precedent to the obligation of the Lender to make or disburse any Loan hereunder
at any time requested by the Borrower, and each request by the Borrower for a
Loan hereunder shall be deemed to constitute the Borrower's representation and
warranty to the Lender that, as of the dates of such request and on which such
Loan is disbursed, these conditions have been satisfied:

     6.C.1. Materially Adverse Effect. No Materially Adverse Effect shall have
occurred, as determined by the Lender in its sole and complete discretion, since
the date hereof.

     6.C.2. Representations and Warranties. The representations and warranties
set forth in Section 7 hereof and in each Loan Document to which the Borrower is
a party shall be true and correct in all material respects.

     6.C.3. Covenants. The affirmative and negative covenants set forth herein
(including, without limitation, those covenants set forth in Section 8 hereof)
and in any other Loan Documents to which the Borrower is a party, are not being
breached and are inviolate in all material respects.

     6.C.4. Event of Default. No Default or Event of Default shall have occurred
and then be continuing or would occur as a result of making such Loan.

     6.C.5. Revolving Commitments. After giving effect to the Loan (if it is a
Revolving Loan), the aggregate principal amount of all such Loans outstanding
hereunder shall not exceed the applicable Revolving Commitment.

     6.C.6. No Violations. Such Loan shall not violate any order, judgment or
decree of any court or other authority or any provision of Law applicable to
Lender (including, without limitation, Regulation U of the Board of Governors of
the Federal Reserve System) as then in effect.

     6.C.7. Note; Notice of Borrowing. The Lender shall have received the Note
of the Borrower and the notice required by Section 3.C hereof.

     6.C.8. Satisfactory Completion of Due Diligence. In the case of the initial
draw only, the Lender shall have satisfactorily completed its due diligence
examination of the Borrower and any related parties, their respective operations
and properties, including historical and pro forma financial information, and
projections and business plans.

SECTION 7.   REPRESENTATIONS AND WARRANTIES.

     As further inducement to the Lender to enter into this Agreement and make
the Loans hereunder, the Borrower represents and warrants, as of the date
hereof, and as of the date of each disbursement of each of the Loans, the
following, which shall survive the execution and delivery of this Agreement, the
Note and the Loan Documents and until all of the Obligations have been paid,
satisfied or discharged in full, regardless of any investigation by the Lender
of the Borrower's financial condition or assets:

     Section 7.A. Corporate Existence and Related Matters. Each of the Borrower
and each Guarantor is a corporation duly organized, validly existing and in good
standing under the Laws of

                                       20
<PAGE>

the State, province, or country of its incorporation and is duly qualified to do
and transact business and is in good standing as a foreign corporation in each
and every state, province, or country in which the conduct of its business or
the location of its properties requires such qualification and the failure to so
qualify would have a Materially Adverse Effect. As of the date hereof, the only
Subsidiaries or Affiliates of Borrower are designated in Schedule 7.A hereto.
Schedule 7.A hereto correctly sets forth, as to each such Subsidiary or
Affiliate, whether or not it is a Consolidated Subsidiary, the jurisdiction of
its incorporation, the percentage of issued and outstanding shares of each class
of its capital stock owned by Borrower and the Subsidiaries and, if such
percentage is not 100%, a description of each class of its authorized capital
stock and the number of shares of each class issued and outstanding. All of the
issued and outstanding shares of capital stock of each Subsidiary are validly
issued and outstanding and fully paid and nonassessable and all such shares
indicated in Schedule 7.A as owned by Borrower or a Subsidiary are owned,
beneficially and of record, by Borrower or such Subsidiary, free of any Lien.
Schedule 7.A contains all assumed or business names utilized by the Borrower or
Affiliate, the jurisdiction of incorporation of the Borrower, and all
jurisdictions where the Borrower is qualified to do business. The information in
Schedule 7.A hereto is true and complete.

     Section 7.B. Corporate Authority. Each of the Borrower and Guarantors has
all corporate power and authority to own its property and assets and to carry on
and engage in its business as it is presently being conducted, and has all
licenses, permits, franchises, consents, approvals and authorizations required
in connection with the foregoing, including without limitation all of the
foregoing required under applicable Laws. The execution, issuance, delivery, and
performance of all documents in connection with this Agreement, the Note and the
Loan and other Loan Documents to which either the Borrower or each Guarantor is
a party or signatory and the incurrence and performance of the Obligations
hereunder and thereunder (i) are within the corporate power and authority of the
Borrower, (ii) have been duly and properly authorized by all necessary
corporate, director, shareholder and any other action of the Borrower, and (iii)
have not resulted in and will not result in:

     (a) the creation or imposition of any Lien of any nature whatsoever (except
in favor of the Lender) upon the Borrower's property or assets; or

     (b) the violation or contravention of, the occurrence of a default, event
of default or event, which with the passage of time or giving of notice or both,
would constitute, mature into or become a default or event of default under, (1)
any term or provision of the Borrower's Articles of Incorporation or bylaws, (2)
any licenses, permits, franchises, consents, approvals or authorizations
referred to above, (3) any certificates of authority to do or transact business,
(4) any applicable order of any court or government or administrative agency, or
(5) any material contract, agreement (including any loan or credit agreement),
mortgage, indenture, instrument, judgment or Laws to which the Borrower is a
party or signatory or by which it or its properties or assets are, or may be,
bound.

     Section 7.C. Consents, Approvals, etc. No consent, approval or
authorization or order of, or filing, registration or qualification with, any
Person (governmental, regulatory, or otherwise) is required to be obtained or
effected by the Borrower in connection with the execution, issuance, delivery
and performance of all documents in connection with this Agreement, the Note and
the Loan and other Loan Documents to which the Borrower is a party or signatory
or the incurrence or

                                       21
<PAGE>

performance of the Obligations or, if so required, has been duly obtained or
effected before the date hereof and are indicated on Schedule 7.C hereto.

     Section 7.D. Binding Effect and Enforceability. Upon delivery hereof and
thereof, this Agreement, the Note and the Loan and other Loan Documents to which
the Borrower or any Guarantor is a party or signatory will be its respective
legal, valid and binding obligations enforceable in accordance with their
respective terms and provisions (except as limited by bankruptcy, insolvency or
other laws or equitable principles of general application relating to the
enforcement of creditors' rights generally) and, on the date of said delivery,
neither the Borrower nor any Guarantor will be in violation or contravention of,
and no Default or Event of Default will exist under, any of the foregoing.

     Section 7.E. Default of Debt, Licenses, Permits, Orders and Other
Agreements. The Borrower is not in breach or default of (in any material
respect), and no event of default or event, which with the passage of time or
giving of notice or both, would constitute, mature into or become a default or
event of default, has occurred and is continuing with respect to (i) any Debt of
any kind or nature, (ii) any license, permit, franchise, approval, consent or
authorization referred to in Section 7.B above, (iii) any order of any court or
governmental or administrative agency, or (iv) any agreement to which it is a
party, which breach or default might have a Materially Adverse Effect.

     Section 7.F. Financial Condition and Litigation. The Financial Statements
of the Borrower delivered to the Lender (including, without limitation, the
audited financial statements of Borrower as at/of December 31, 2000, and the
unaudited financial statements of Borrower for the period ended March 31, 2001,
have been prepared in accordance with GAAP, are true and correct in all material
respects and fairly present the financial condition of the Borrower as at the
dates thereof and results of operations for the periods covered thereby. Since
the ending date of the period covered by the most recent Financial Statements
dated March 31, 2001, delivered to the Lender and received thereby, no
Materially Adverse Effect has occurred and no dividends on or redemptions of the
Borrower's common or preferred stock have been made. Except as disclosed to the
Lender on said most recent Financial Statements: (i) the Borrower has no Debt,
except as permitted hereunder, or liabilities, contingent or otherwise; and (ii)
except as disclosed on Schedule 7.F, no proceedings, suits, orders, claims,
investigations, or other actions which individually or in the aggregate
exceeding $100,000 are pending before any court or governmental authority or, to
the best knowledge of Borrower, threatened against the Borrower that are not
fully covered by insurance. With respect to any representation and warranty
which is deemed to be made after the date hereof by the Borrower, the Financial
Statements which as of such date shall most recently have been furnished by the
Borrower to the Lender for purposes of or in connection with this Agreement
shall have been prepared in accordance with GAAP, shall be true and correct in
all material respects, and shall fairly present the financial condition of the
Borrower as of the dates thereof and results of operations for the periods
covered thereby.

     Section 7.G. Title and Liens. The Borrower has good and marketable title to
all of its property and assets, including all such property and assets listed on
the most recent Financial Statements and, except as set forth on Schedule 7.G,
the assets of the Borrower are not subject to any liens, claims, security
interests, mortgages, pledges, charges or other encumbrance of any Person,
except the holders of the Permitted Liens.

                                       22
<PAGE>

     Section 7.H. Employee Plans. All of the Borrower's Employee Plans are
listed on Schedule 7.H hereto and are in material compliance with all provisions
of ERISA and meet the minimum funding standards of Section 302 of ERISA where
applicable. No withdrawal liability has been incurred under any such Employee
Plans. No Prohibited Transaction or Reportable Event, as defined in ERISA, has
occurred with respect to any such Employee Plans. No proceedings have been
instituted to terminate or appoint a trustee to administer any such Employee
Plans.

     Section 7.I. Taxes. Except as listed on Schedule 7.I. hereto, the Borrower
has filed all federal, state and local tax returns and reports required by Law,
has paid all taxes, assessments, penalties, interest and any other governmental
charges which are or were due and payable, has made adequate provision for the
payment of all taxes, assessments, penalties, interest and other governmental
charges which are accruing but are not yet due and payable, and has no knowledge
and are not aware of any deficiency or additional assessment which may have or
has arisen in connection of the foregoing.

     Section 7.J. Compliance with Laws. To the best knowledge of the Borrower,
the Borrower has complied in all material respects with all Laws applicable to
it or to the conduct of its business, noncompliance with which could have a
Materially Adverse Effect, and the Borrower has not received any notice of any
kind from any Person claiming or alleging, directly or indirectly, a violation
of any Law, noncompliance with which could have a Materially Adverse Effect.

     Section 7.K. Corporate Structure and Affiliates. Borrower has no
Subsidiaries and no Affiliates, except as identified on Schedule 7.A hereto,
which shall include the directors and shareholders of the Borrower. Borrower's
authorized and outstanding capital stock is as set forth in Schedule 7.A hereto.

     Section 7.L. Corporate Names. The Borrower has no assumed corporate names
and is not doing business under any corporate name, other than as identified on
Schedule 7.A hereto.

     Section 7.M. Solvency. The Borrower (i) is solvent and will not be rendered
insolvent by the incurrence of the Obligations, by the execution of this
Agreement, the Note, and any other Loan or other Loan Documents to which it is a
party or signatory, or by any transactions contemplated hereunder or thereunder,
(ii) is able to pay its debts as they come due and does not intend to incur, or
believe that it will incur, debts beyond its ability to pay such debts as they
mature or come due, (iii) has capital sufficient to carry on its business and
any business in which it intends or is about to engage, and (iv) owns property
and assets having a value in excess of its liabilities and debts.

     Section 7.N. Margin Regulations. No portion of the proceeds of the Loans
shall be used by the Borrower, or any Affiliates of the Borrower, either
directly or indirectly, for the purpose of purchasing or carrying any margin
stock, within the meaning of Regulation U as adopted by the Board of Governors
of the Federal Reserve System.

     Section 7.O. Indebtedness to and Transactions with Affiliates. Except as
set forth on Schedule 7.O hereto, there are no outstanding loans from any
Affiliate to the Borrower, or from the Borrower to any Affiliate. Except as set
forth on Schedule 7.O hereto, the Borrower is not a party to a material
transaction with any of its Affiliates, other than transactions in the ordinary
course of business and upon fair and reasonable terms not materially less
favorable than such company could

                                       23
<PAGE>

obtain or could become entitled to in an arm's length transaction with a Person
that was not its Affiliate.

     Section 7.P. Acts of God. Neither the business nor properties of the
Borrower are presently affected by any fire, explosion, accident, drought,
storm, hail, earthquake, embargo, act of God or of the public enemy or of
political unrest, or potential expropriation, or other casualty (whether or not
covered by insurance) which could have a Materially Adverse Effect.

     Section 7.Q. Labor Controversies; Union Contracts, Etc. There are no labor
controversies pending or, to the knowledge of the Borrower, threatened against
the Borrower, which if adversely determined could have a Materially Adverse
Effect. There are no pending or, to the Borrower's knowledge, threatened or
anticipated (i) employment discrimination charges or complaints against or
involving the Borrower before any governmental Person, (ii) unfair labor
practice charges or complaints, disputes or grievances or arbitration
proceedings or controversies affecting the Borrower, (iii) union representation
petitions respecting the employees of the Borrower, or (v) strikes, slowdowns,
work stoppages, or lockouts or threats thereof affecting the Borrower. There are
no collective bargaining agreements covering any of the employees of the
Borrower. The Borrower has not breached or otherwise failed to comply with any
provision of any collective bargaining agreement or other labor union contract
applicable to any of its employees.

     Section 7.R. Surety Obligations; Financial Assurances. The Borrower is not
obligated as surety or indemnitor under any surety or similar bond or other
contract, or issued or entered into any agreement to assure payment, performance
or completion of performance of any undertaking or obligation of any Person. The
Borrower has not posted or placed any Financial Assurance except as indicated in
Schedule 7.R hereto.

     Section 7.S. Business Relations. There exists no actual or threatened
termination, cancellation, or adverse limitation of, or any adverse modification
or change in, the contractual and/or business relationship between the Borrower
and any owner/lessor of any facility utilized in the Borrower's business,
municipality, customer and/or supplier, and there exists no present condition or
state of facts or circumstances in such relations, which in each case would have
a Materially Adverse Effect.

     Section 7.T. Accuracy of Information. All factual information heretofore,
or contemporaneously furnished by or on behalf of the Borrower in writing to the
Lender for purposes of or in connection with this Agreement or any transaction
contemplated hereby, and all other such factual information hereafter furnished
by or on behalf of the Borrower to the Lender will be, true and accurate in
every material respect on the date as of which such information is dated, or
certified, and to the best knowledge of Borrower such information is not, or
shall not be, as the case may be, incomplete by omitting to state any material
fact necessary to make such information not misleading. To the best knowledge of
the Borrower there is no fact which has a Materially Adverse Effect or in the
future may (so far as the Borrower may now foresee), have a Materially Adverse
Effect, which has not been set forth herein or in written materials,
certificates or statements furnished to the Lender prior to the date hereof.

     Section 7.U. Hazardous Materials. Borrower has not caused or permitted any
Hazardous Material to be disposed of or incorporated into, either on or under
real property legally or

                                       24
<PAGE>

beneficially owned or operated by Borrower, and no such real property has ever
been used as a dump site or long-term storage site for any Hazardous Materials
which would be reasonably likely to (a) give rise to present or future legal
liability, and (b) have a material adverse effect on the business or financial
condition of Borrower. The failure, if any, of Borrower in connection with the
operation of their business, to obtain or be in compliance with any permit,
certificate, license, approval and other authorization, or to file any
notification or report relating to chemical substances, air emissions, effluent
discharges and Hazardous Material storage, treatment, transport and disposal has
not had, nor will it have, a Materially Adverse Effect, and no facts or
circumstances exist which could give rise to liabilities with respect to
Hazardous Materials on the business or financial condition of Borrower which
would be reasonably likely to have a Materially Adverse Effect.

     "Hazardous Materials" means and includes (a) any friable asbestos (or
asbestos which becomes friable), PCBs or dioxins or insulation or other material
composed of or containing friable asbestos (or asbestos which becomes friable),
PCBs or dioxins and (b) any petroleum or any fraction thereof and any hazardous
or toxic waster, substance or material defined as such in (or for purposes of)
the Comprehensive Environmental Response, Compensation and Liability Act of
1980, any applicable so-called "superfund" or "superlien" law, or any other
applicable law regulating or pertaining to any such waste, substance or
material, as now or at any time hereafter in effect.

     Section 7.V. Ranking. The Obligations will rank at least pari passu with
all Debt of the Borrower including but not limited to any credit facilities of
the Bank of Montreal and Bank of America, except Debt secured by Permitted
Liens, provided that such Permitted Liens shall not at any time secure Debt of
the Borrower and all of its Subsidiaries exceeding at any time $20,000,000, in
the aggregate.

     Section 7.W. Business Loan. The Loans, including interest rate, fees and
charges as contemplated hereby, (i) are business loans within the purview of 815
ILCS 205/4(1)(c), as amended from time to time, (ii) are an exempted transaction
under the Truth in Lending Act, 12 U.S.C. 1601 et seq., as amended from time to
time, and (iii) do not, and when disbursed shall not, violate the provisions of
the Illinois usury laws, any consumer credit laws or the usury laws of any state
which may have jurisdiction over the transaction or the Borrower.

     Section 7.X. Complete Information. This Agreement and all financial
statements, schedules, certificates, confirmations, agreements, contracts, and
other materials submitted to the Lender in connection with or in furtherance of
this Agreement by or on behalf of the Borrower fully and fairly state the
matters with which they purport to deal, and neither misstate any material fact
nor, separately or in the aggregate, fail to state any material fact necessary
to make the statements made not misleading.

     Section 7.Y. Intellectual Property. The Borrower owns or has sufficient and
legally enforceable rights to use all material licenses, patents, patent
applications, copyrights, service marks, trademarks, trademark applications, and
trade names necessary to continue to conduct its businesses as heretofore
conducted by it, now conducted by it, and now proposed to be conducted by it.
The Borrower is conducting its business without infringement or claim of
infringement of any license, patent, copyright, service mark, trademark, trade
name, trade secret, or other intellectual property right of others, other than
any such infringements or claims which, if successfully asserted against or
determined adversely to the Borrower, could not, individually or collectively
reasonably be expected to be a Material Adverse Event.

                                       25
<PAGE>

SECTION 8.  COVENANTS.

     The Borrower hereby covenants and agrees with the Lender that, until the
Obligations have been satisfied and discharged in full, the Borrower will comply
and/or cause compliance with the following covenants, unless the Lender shall
give its prior written consent to the contrary:

     Section 8.A. Affirmative Covenants.

     8.A.1. Financial Covenants. The Borrower shall maintain compliance with the
following financial covenants measured on a consolidated basis during the
periods indicated below:

     (a) Net Worth. The Borrower's Net Worth shall not at any time be less than
$150,000,000, excluding the Subordinated Debentures listed in Section 6.A.14
herein.

     (b) Consolidated Interest Coverage Ratio. As of the end of each Measurement
Period the Borrower and Affiliates shall maintain a ratio of EBITDA to Interest
Expense of not less than 3.0 to 1.0.

     (c) Leverage Ratios.

          (i)  The ratio of Funded Senior Debt plus Contingent Liabilities to
               total Pro Forma EBITDA shall not exceed the following with
               respect to the Measurement Periods:

               Measurement Period                            Ratio
               ------------------                            -----
               Ending September 30, 2001                3.00 to 1.00
               Thereafter                               2.75 to 1.00

          (ii) The ratio of Funded Total Debt plus Contingent Liabilities to
               total Pro Forma EBITDA shall not exceed the following with
               respect to the Measurement Periods:

               Measurement Period                            Ratio
               ------------------                            -----
               Ending September 30, 2001                4.25 to 1.00
               Thereafter                               4.00 to 1.00

     8.A.2. Financial Information and Reporting. The Borrower shall keep and
cause to be kept proper books and records in which full and true entries will be
made, in accordance with GAAP, of all dealings or transactions relating to its
business and affairs, and the Borrower shall cause to be furnished to the
Lender:

          (i) As soon as practicable and, in any event, within sixty (60) days
     after the end of each quarter of each Fiscal Year, all of the Borrower's
     consolidated and consolidating statements of income and retained earnings
     and of cash flows through the quarter then ended and a balance sheet of the
     Borrower as of the end of such quarter, all in reasonable detail and
     certified by Borrower's president or chief financial officer as fairly
     presenting the financial

                                       26
<PAGE>

     condition and operations of the Borrower as of and for the period then
     ending and being accurate in all material respects and having been prepared
     in accordance with GAAP;

          (ii) As soon as practicable and, in any event, within one hundred
     twenty (120) days after the end of each Fiscal Year, all of the Borrower's
     consolidated and consolidating audited and unaudited statements of income
     and retained earnings and of cash flows through the Fiscal Year then ended
     and a balance sheet of the Borrower as of the end of such Fiscal Year, in
     each case with comparable information at the close of and for the prior
     Fiscal Year, all in reasonable detail, containing no qualifications
     unacceptable to the Lender and audited by an independent certified public
     accountant selected by the Borrower and acceptable to the Lender and
     prepared in accordance with GAAP;

          (iii) Together with the Financial Statements for each quarter of each
     Fiscal Year, (a) a certificate executed by the chief financial officer of
     Borrower in the form of Exhibit C hereto certifying to the Lender that the
     Borrower is in compliance with each of the financial covenants set forth in
     Section 8.A.1 hereof and setting forth in detail satisfactory to the Lender
     the calculations and computations showing such compliance, and (b) a
     certificate executed by the president or chief financial officer of
     Borrower stating whether any Default or Event of Default currently exists
     and is continuing and what action, if any, the Borrower is taking or
     proposes to take with respect thereto;

          (iv) When and as so furnished, such other financial information
     concerning the Borrower, its business, financial condition or assets as may
     be furnished to the holders of the Borrower's common or preferred stock
     (including all financial statements, reports and proxy statements), or as
     the Lender may reasonably request from time to time;

          (v) Promptly upon discovery thereof, notice of any action, suit,
     arbitration, investigation, administrative or other proceeding instituted,
     commenced or threatened against or affecting the Borrower which may
     reasonably be expected to cause the Borrower to incur or be liable for
     claims, damages and/or costs of any kind (including, without limitation,
     attorneys' fees, expert witness fees and court, judgment, settlement and
     compliance or remedial costs), aggregating in excess of $100,000;

          (vi) Promptly upon the Borrower's becoming aware thereof, notice of
     any proposed Laws, or amendments thereto, which would regulate, restrict or
     prohibit the Borrower in such a way as might have a Materially Adverse
     Effect;

          (vii) Notice of the occurrence or existence of any Default or Event of
     Default immediately upon the Borrower's becoming aware thereof; and
     promptly upon discovery thereof, notice of any development, financial or
     otherwise, which might have a Materially Adverse Effect;

          (viii) Upon request of the Lender from time to time, any information
     concerning the Borrower's compliance with any and all Laws;

          (ix) Promptly upon the Borrower becoming aware thereof, notice of any
     claim of violation of any Law, and notice of any violation or breach by the
     Borrower of the terms of,
                                       27
<PAGE>
     or any revocation or suspension or threatened revocation or suspension of,
     any license or permit of the Borrower;

          (x) Notice of the cancellation or expiration of any bond, letter of
     credit or similar instrument issued as Financial Assurance and the terms of
     any replacement or renewal bond, letter of credit or similar instrument if
     not issued by the Lender;

          (xi) Within forty-five (45) days after the end of each six-month
     period, regardless of whether any New Subsidiary has been acquired during
     such period, a New Subsidiary Certificate substantially in the form of
     Exhibit D hereto; and

          (xii) Within sixty (60) days of the end of each Fiscal Year, updated
     annual budgets, financial projections (rolling three years) and business
     plans for the ensuing Fiscal Year.

     8.A.3. Corporate Existence and Conduct of Business. The Borrower will
maintain and preserve its corporate existence, good standing, certificates of
authority, licenses, permits, franchises, patents, trademarks, trade names,
service marks, copyrights, leases and all other contracts and rights necessary
or desirable to continue its operations and business on a profitable basis and
will generally continue the same line of business as that being presently
conducted, except that the Borrower intends to sell Old Lyme Insurance Company
of Rhode Island, a Rhode Island corporation, and Old Lyme Insurance Company
Limited, a corporation incorporated under the laws of Bermuda, for approximately
$40,000,000 on or before October 31, 2001.

     8.A.4. Taxes and Laws. The Borrower will pay and shall cause each Guarantor
to pay when due, all taxes, assessments, charges and levies imposed on the
Borrower or each Guarantor or any of its property or assets or which it is
required to withhold and pay out and will comply in all material respects with
all applicable present and future Laws applicable to the Borrower or each
Guarantor or any of its property or assets, unless the Borrower or any Guarantor
is contesting in good faith, by an appropriate proceeding, the validity, amount,
imposition or applicability of the above while maintaining reserves therefor
which are appropriate and adequate as determined in accordance with GAAP, and
such contest does not have or cause a Materially Adverse Effect.

     8.A.5. Inspection. Upon the Lender's request, the Borrower will allow and
shall cause each Guarantor to allow the Lender, and any of its officers,
employees or agents, to visit, during normal business hours, for inspection and
review, the Borrower's or any Guarantor's premises and will make available and
furnish to the Lender the Borrower's or any Guarantor's books and records and
such financial information concerning the Borrower's or any Guarantor's property
or assets, business, affairs, operations or financial condition as reasonably
requested by the Lender.

     8.A.6. Lender Costs. The Borrower shall pay upon demand, all reasonable
out-of-pocket fees, costs and expenses (including those of outside counsel,
auditors, appraisers, accountants, insurance and environmental advisors, title
companies, surveyors, and other consultants and agents) incurred or paid by the
Lender in connection with the preparation, negotiation, documentation,
administration (including periodic field and collateral audits and site visits),
amendment, modification, waiver, interpretation, collection or enforcement of
this Agreement, the Note, or any other Loan Documents and the credit and
security therefor. In addition, the Borrower shall pay upon

                                       28
<PAGE>

demand all such costs and expenses of the Lender in connection with any Default
or Event of Default by the Borrower hereunder, or in connection with the
collection or enforcement of any of the terms hereof or of the other Loan
Documents and the credit therefor, or any "work-out," refinancing or
restructuring of the credit arrangement set forth herein. Any attorneys' fees
due hereunder are to be calculated at the attorneys' customary hourly rates, and
not as a percentage of the indebtedness or of the amount recovered. The Borrower
agrees to indemnify the Lender, its successors and assigns, and its respective
officers, directors and employees, from and hold each of them harmless against
(i) any transfer taxes, documentary taxes and any other taxes, penalties,
assessments or charges made by any governmental authority by reason of the
execution, delivery and performance of the Loan Documents and any security
therefor, and (ii) any and all losses, claims, damages, liabilities and
expenses, including all expenses of litigation or preparation therefor, which
any of them may incur or which may be asserted against any of them in connection
with or arising out of the direct or indirect application of the proceeds of
Loans. The obligations under this Section 8.A.6 shall survive repayment of the
Loans and the assignment of any rights hereunder.

     8.A.7. Employee Plans. The Borrower shall and shall cause each Guarantor to
(i) keep in full force and effect any and all Employee Plans which are presently
in existence or may, from time to time, come into existence under ERISA, and not
withdraw from any such Employee Plans, unless such withdrawal can be effected or
such Employee Plans can be terminated without material liability to the Borrower
or each Guarantor; (ii) make contributions to all of such Employee Plans in a
timely manner and in a sufficient amount to comply with the requirements of
ERISA, including the minimum funding standards of Section 302 of ERISA; (iii)
comply with all material requirements of ERISA which relate to such Employee
Plans; (iv) notify the Lender immediately upon receipt of any notice concerning
the imposition of any withdrawal liability or of the institution of any
proceeding or other action which may result in the termination of any such
Employee Plans or the appointment of a trustee to administer such Employee
Plans; and (v) promptly advise the Lender of the occurrence of any Reportable
Event or Prohibited Transaction, as defined in ERISA, with respect to any such
Employee Plans.

     8.A.8. Use of Proceeds of Loans. The Borrower shall use the proceeds of the
Loans for general corporate purposes, including working capital, repayment of
the Advance Request for $40,000,000 between Borrower and Bank of Montreal, dated
as of June 26, 2001, the acquisition of Burnham Stewart Group, Inc. and
permitted capital expenditures and acquisitions as listed on Schedule 8.A.8.

     8.A.9. Financial Assurance. The Borrower shall timely comply or cause
compliance with the requirements of any Act or any other Law concerning
Financial Assurance. If any funds are drawn on any Financial Assurance at any
time, the Borrower shall promptly notify the Lender in writing of the amount of
and the reason for the draw. The Borrower shall not maintain more in Financial
Assurance than is required pursuant to any Act or any Law at any time. At the
earliest available opportunity under any Act or other Law, the Borrower shall
request that the amount of Financial Assurance be reduced if and as permitted
under the Act, or such other Law.

     8.A.10. Compliance with Laws. Borrower shall comply or cause compliance
with all applicable building codes, zoning ordinances, environmental protection,
health and safety laws and regulations and other laws and regulations governing
it.

                                       29
<PAGE>

     8.A.11. Maintenance of Insurance. The Borrower shall maintain insurance
with financially sound and respectable insurance companies or associations in
such companies or associations in such amounts and covering such casualties and
risks as are customary in accordance with prudent business practice in the case
of companies engaged in the same or a similar business and similarly situated,
which insurance may provide for reasonable deductibility from coverage thereof.
The Borrower will, upon request, furnish to the Lender at reasonable intervals a
certificate of an Authorized Officer setting forth the nature and extent of all
insurance maintained by the Borrower. The Borrower shall retain all incidents of
ownership of the insurance maintained pursuant hereto and shall not borrow upon
or otherwise impair its rights to receive the proceeds of such insurance. In the
event the Borrower either fails to provide the Lender with evidence of the
insurance coverage required by this Section or at any time hereafter shall fail
to obtain or maintain any of the policies of insurance required above, or to pay
any premium in whole or in part relating thereto, then the Lender, without
waiving or releasing any obligation or default by the Borrower hereunder, may at
any time (but shall be under no obligation to act), obtain and maintain such
policies of insurance and pay such premium and take any other action with
respect thereto, which the Lender deems advisable. The Borrower may later cancel
any such insurance purchased by the Lender, but only after providing the Lender
with evidence that the Borrower has obtained the insurance coverage required by
this Section. The costs of such insurance obtained by the Lender, through and
including the effective date such insurance coverage is canceled or expires,
shall be payable on demand by the Borrower to the Lender, together with interest
at the Default Rate on such amounts until repaid and any other charges by the
Lender in connection with the placement of such insurance. The costs of such
insurance, which may be greater than the cost of insurance which the Borrower
may be able to obtain on its own, together with interest thereon at the Default
Rate and any other charges by the Lender in connection with the placement of
such insurance may be added to the total Obligations due and owing.

     Section 8.B. Negative Covenants.

     8.B.1. Liens. The Borrower shall not directly or indirectly create, assume,
grant, pledge, incur, permit or suffer to exist, any Lien or change of any kind
or character upon any assets of the Borrower whether owned at the date hereof or
hereafter acquired, except Permitted Liens.

     8.B.2. Fiscal Year, Name Changes, Mergers and Acquisitions. The Borrower
shall not (i) change its Fiscal Year or its corporate name or without prior
written notice to Lender and adopt an assumed corporate name other than as set
forth in Schedule 8.B.2, (ii) consolidate or merge with any Person, (iii)
acquire any stock in, or acquire all or substantially all of the assets or
properties of, or make any investment in, any Person, except that the existing
investments listed on Schedule 8.B.2 and any acquisitions not exceeding
$2,000,000 individually or $5,000,000 in the aggregate, provided that such
acquisition(s) would not cause the Borrower to be in Default hereunder are
permitted hereunder, or (iv) create any Subsidiaries.

     8.B.3. Restricted Payments. The Borrower shall not declare or make any
Restricted Payments.

     8.B.4. Transactions with Affiliates. Except as set forth in Schedule 8.B.4,
the Borrower shall not enter into any transaction with its Affiliates or any of
its or its Affiliates' shareholders, directors, officers or employees, except in
the ordinary course of business and upon fair and

                                       30

<PAGE>

reasonable terms which are no less favorable to the Borrower than those that
would be available at the time of such transaction in a comparable arm's length
transaction with a Person not an Affiliate. The Borrower shall not pay any
management fee to any Affiliate other than Borrower.

     8.B.5. Capital Structure. The Borrower shall not have outstanding or issue
any shares of preferred stock. The Borrower shall not make any changes in its
capital structure (including the terms of its outstanding stock), amend its
articles of incorporation, certificate of designation, or bylaws, or make any
changes in any of its business objectives, purposes or operations if such change
has a reasonable likelihood of having a Materially Adverse Effect. The Borrower
shall not be permitted to issue any stock. Notwithstanding the foregoing,
Borrower may issue stock for acquisitions pursuant to Section 8.B.2 provided
that such acquisitions do not cause an Event of Default and Borrower may issue
stock pursuant to the Executive Share Purchase Plan and, when finalized, the
Restricted Stock Plan provided that such issuance does not cause an Event of
Default.

     8.B.6. Change in Nature of Business. The Borrower shall not engage in any
business unrelated to, or make any material change in the nature of, its
business as carried on at the date hereof.

     8.B.7. Prepayment or Modification of Debt. The Borrower will not (i) prepay
any Funded Debt owing to, or any indebtedness for money borrowed by the Borrower
from a Person other than the Lender, or any Debt secured by any of its assets,
except: (x) Debt to the Lender or to any holder of Permitted Liens, (y)
prepayment of Debt secured by an asset if a replacement asset of equal or
greater value is purchased in connection therewith and (z) prepayment of
revolving Debt, the amount of which may be subsequently reborrowed, or (ii)
enter into or modify any agreement as a result of which the terms of payment of
any of the foregoing Debt are amended or modified.

     8.B.8. False Statements. The Borrower will not furnish the Lender any
certificate or other document that knowingly contains any untrue statement of
material fact or that omits to state a material fact necessary to make it not
misleading in light of the circumstances under which it was furnished.

     8.B.9. Inconsistent or Restrictive Agreements. The Borrower shall not enter
into any agreement which would violate or cause a breach of or under this
Agreement or any Loan Documents or the performance by the Borrower of any
obligation hereunder or thereunder.

     8.B.10. Investments. The Borrower shall not make any loan or advance to any
Person, or purchase or otherwise acquire any capital stock, assets, obligations,
or other securities of, make any capital contribution to, or otherwise invest in
or acquire any interest in any Person, or participate as a partner or joint
venturer with any other Person, except for Permitted Investments and
acquisitions contemplated by Section 8.B.2.

     8.B.11. Indebtedness. The Borrower shall not, directly or indirectly,
create, assume, incur or have outstanding any Debt (including purchase money
indebtedness), or become liable, whether as an endorser, guarantor, surety or
otherwise, for any debt or obligation of any other Person, except:

          (a) the Obligations;

                                       31
<PAGE>

          (b) endorsement for collection or deposit of any commercial paper
     secured in the ordinary course of business;

          (c) obligations of the Borrower for taxes, assessments, municipal or
     other governmental charges;

          (d) obligations of the Borrower for accounts payable, other than for
     money borrowed, incurred in the ordinary course of business;

          (e) obligations existing on the date hereof which are disclosed on the
     financial statements referred to in Section 7; and

          (f) those noted on Schedule 8.B.11.

SECTION 9.  EVENTS OF DEFAULT.

     The following events shall constitute and be deemed Events of Default
hereunder:

     Section 9.A. Obligations. Failure by the Borrower (i) to make any payment
of principal on any Loan or Note on the date such payment Obligation is due, or
(ii) to make any payment of interest on any Loan or Note or any payment of any
fee due hereunder within 3 Business Days after such payment Obligation is due.

     Section 9.B. Breach or Default Under Loan Documents. (i) failure or neglect
of the Borrower to perform, keep or observe any of the covenants at Sections
8.A.1, 8.A.2, 8.A.6, 8.A.8, or 8.B hereof; or (ii) failure or neglect of the
Borrower or Guarantor to perform, keep or observe any of its respective other
covenants, conditions, promises or agreements contained herein or in any other
Loan Document to which it is a party or signatory and the Borrower or Guarantor
fails to cure the foregoing within thirty (30) days after notice from the Lender
to the Borrower or Guarantor thereof; or (iii) an Event of Default occurs under
any other Loan Document; or (iv) at any time any notice is given by the Borrower
of the discontinuance, invalidity or unenforceability of or the Borrower's
obligations thereunder.

     Section 9.C. Representation and Warranties. Any warranty or representation
now or hereafter made by the Borrower or by any Guarantor hereunder or under any
Loan Document, is untrue or incorrect in any material respect or fails to state
a material fact necessary to make such warranty or representation not misleading
in light of the circumstances in which it was made, or any schedule,
certificate, statement, report, financial data, notice or writing furnished to
the Lender at any time by the Borrower is untrue or incorrect in any material
respect or fails to state a material fact needed to make the foregoing not
misleading in light of the circumstances in which the foregoing were furnished,
in each case on the date as of which the facts set forth therein are stated or
certified and the Borrower or each Guarantor fails to cure any of the foregoing
within thirty (30) days after the Borrower should have become aware of the same.

     Section 9.D. Judgments. A final and non-appealable judgment or order, or an
aggregate of final and non-appealable outstanding judgments or orders, requiring
payment in excess of $150,000, either not fully covered by insurance or the
insurance for which is disputed or contested,

                                       32
<PAGE>

shall have been entered against the Borrower, and such judgments or order(s)
shall remain unsatisfied or undischarged and in effect for thirty (30)
consecutive days without a stay of enforcement or execution thereof.

     Section 9.E. Insolvency and Related Proceedings. If the Borrower or
Guarantor (i) is dissolved; (ii) authorizes or makes an assignment for the
benefit of creditors; (iii) generally shall not pay its debts as they become
due; (iv) shall admit in writing its inability to pay its debts generally; or
(v) shall authorize or commence (whether by the entry of an order for relief or
the appointment of a receiver, trustee, examiner, custodian or other similar
official therefor or for any substantial part of its property) any proceeding or
voluntary case under any bankruptcy, reorganization, insolvency, dissolution,
liquidation, adjustment or arrangement of debt, receivership or similar Laws or
if such proceedings are commenced or instituted, or an order for relief or
approving any petition commencing such proceedings is entered against the
Borrower and such party, by any action or failure to act, authorize, approve,
acquiesce, or consent to the commencement or institution of such proceedings, or
such proceedings are not dismissed within sixty (60) days after the date of
filing, commencement or institution.

     Section 9.F. Other Material Agreements. If the Borrower defaults or a
default or an event of default occurs under or in the performance of its
obligations under (i) any other agreement with the Lender, or (ii) under any
other material exceeding $100,000 agreement, document or instruments for
borrowed money, and such default, breach, or event of default continues beyond
any applicable grace period thereunder and the effect of which shall be to allow
the holder of such agreement, document or instrument to terminate the foregoing,
or the Person to whom such obligation is owed to cause such obligation to become
due prior to its stated maturity or otherwise accelerated, including, but not
limited to any credit facility with Bank of Montreal or Bank of America or (iii)
under any other material agreement, document or instrument (not for borrowed
money), and such default, breach, or event of default continues beyond any
applicable grace period thereunder and the effect of which shall be to allow the
holder of such agreement, document or instrument to terminate the foregoing or
to accelerate obligations exceeding $100,000 owed to it thereunder.

     Section 9.G. State Action. If any proceeding is instituted or commenced by
the State or country of incorporation of the Borrower, seeking a forfeiture of
the Certificate of Incorporation of the Borrower and any order entered in such
proceeding shall fail to be vacated within thirty (30) days.

     Section 9.H. ERISA Matters. If any of the following events shall have
occurred with respect to any Employee Plan and the resultant or potential
liability of the Borrower therefor exceeds $100,000: (i) a Reportable Event or
Prohibited Transaction, as such terms are defined in ERISA, shall have occurred;
(ii) a trustee is appointed by any governmental body or agency or any court to
administer any Employee Plan; (iii) any Employee Plan is involuntarily
terminated, or circumstances exist which constitute grounds entitling the
Pension Benefit Guaranty Corporation to institute proceedings to terminate any
Employee Plan; or (iv) any withdrawal liability is incurred in connection with
any termination of an Employee Plan.

     Section 9.I. Tax Liens. If a notice of lien, levy or assessment is filed or
recorded with respect to all or a material part of the assets owned by the
Borrower by the United States, or any department, agency or instrumentality
thereof, or by any state, county, municipality or other

                                       33
<PAGE>

governmental agency, or any taxes or debts owing at any time or times hereafter
to any one or more of the foregoing become a lien upon a material part of the
assets owned by the Borrower, unless such notice or lien is a Permitted Lien or
is removed within ninety (90) days after filing or recording of such notice or
becoming such lien.

     Section 9.J. Failure of Lien. If any Loan Document shall at any time after
its execution and delivery and for any reason (other than as a result of any
action or inaction by the Lender) cease to be in full force and effect or shall
be declared null and void, or the validity or enforceability thereof shall be
contested or the Borrower or any Guarantor shall deny it has any further
liability or obligation under any Loan Document, or the Borrower or any
Guarantor shall fail to perform any of its obligations under any Loan Document
beyond any applicable grace period.

     Section 9.K. Environmental or Other Remediation Costs. If the Borrower or
Affiliate becomes aware of, any environmental contamination or similar site
deficiency which may reasonably be expected to cause the Borrower or Affiliate
to incur or be liable for costs of any kind aggregating in excess of a cost of
$100,000.

     Section 9.L. Operating Permits and Licenses. If the Borrower fails to
maintain any permits or licenses which are necessary and required for the
ownership, use, occupancy or operation of its business, if such deficiency would
have a Materially Adverse Effect and is not cured within 30 days.

     Section 9.M. Material Adverse Change. If since March 31, 2001, there shall
have occurred any condition or event which the Lender determines has or might be
reasonably expected to have a Materially Adverse Effect.

     Section 9.N. Change in Control. If a Change in Control shall occur. "Change
in Control" means (i) the direct or indirect sale, lease, exchange or other
transfer of all or substantially all of the assets of Borrower to any Person or
Group, as defined in Rule 13d-5 under the Exchange Act ("Group"), other than an
Affiliate of Borrower, (ii) the merger or consolidation of Borrower with or into
another entity with the effect that the then existing shareholders of Borrower,
collectively, hold less than 50.1% of the combined voting power of the then
outstanding securities of the surviving entity of such merger or the corporation
resulting from such consolidation ordinarily (and apart from rights arising
under special circumstances) having the right to vote in the election of
directors, (iii) during any two-year period, the replacement of a majority of
the Board of Directors of Borrower from the directors who constituted the Board
of Directors at the beginning of such period, and such replacement shall not
have been approved by a vote of at least a majority of the Board of Directors of
Borrower then still in office who were either members of the Board of Directors
at the beginning of such period or whose election as a member of the Board of
Directors was previously so approved, (iv) a Person or Group (other than
existing shareholders of Borrower, and/or any executive officer of Borrower or
its Subsidiaries, or its successors) shall, as a result of a tender or exchange
offer, open market purchases, privately negotiated purchases or otherwise, have
become the beneficial owner (within the meaning of Rule 13d-3 under the Exchange
Act) of securities of Borrower representing 50% or more of the combined voting
power of the then outstanding securities of Borrower ordinarily (and apart from
rights arising under special circumstances) having the right to vote in the
election of directors or shall have acquired the right to designate a majority
of the Board of Directors of Borrower, (v) any Person or Group (other than
existing shareholders of Borrower, or its executive officers) shall acquire the
right, by contract or otherwise, to elect, appoint or otherwise designate a

                                       34
<PAGE>

majority of the Board of Directors of Borrower, whether or not such right is
exercised, or (vi) the occurrence of any event specified in Section 9.E. with
respect to Borrower or any of its Subsidiaries.

SECTION 10.   RIGHTS AND REMEDIES.

     Section 10.A. Termination of Commitment and Acceleration. Upon the
happening or occurrence of an Event of Default described in Section 9.E. above,
the Commitment shall immediately terminate, and upon the happening or occurrence
of any other Event of Default set forth in Section 9, such Event of Default not
having been previously cured or waived in writing by the Lender, the Lender may
declare the Commitment terminated, if they have not yet been terminated.
Following the termination of the Commitment, the Lender may accelerate the
Obligations by declaring that the Obligations are then due and payable and,
thereupon, the Note shall be and become forthwith, due and payable without any
presentment, demand, protest, notice of any of the foregoing or other notice of
any kind, all of which are hereby expressly waived notwithstanding anything
contained herein or in the Note to the contrary, and the Lender shall have all
rights and remedies now or hereafter provided by applicable Laws and without
limiting the generality of the foregoing may, at its option, also appropriate
and apply toward the payment of the Note, any indebtedness of the Lender to the
Borrower, howsoever created or arising, and may also exercise any and all rights
and remedies hereunder, under the Loan Documents.

     Section 10.B. Rescission. In the event of an uncured Event of Default, if
at any time after acceleration of the maturity of the Loans, Borrower shall pay
all arrears of interest and all payments on account of principal of the Loans
which shall have become due otherwise than by acceleration (with interest on
principal and, to the extent permitted by laws, on overdue interest, at the
rates specified in this Agreement) and all Events of Default and Defaults (other
than nonpayment of principal of and accrued interest of the Loans due and
payable solely by virtue or acceleration) shall be remedied or waived pursuant
to this Agreement, then by written notice to Borrower, the Lender may elect, in
its sole discretion, to rescind and annul the acceleration and its consequences;
but such action shall not affect any subsequent Event of Default or Default or
impair any right or remedy consequent thereon. The provisions of the preceding
sentence do not give Borrower the right to require Lenders to rescind or annul
any acceleration hereunder, even if the conditions set forth herein are met.

     Section 10.C. Application of Payments. All monies received by the Lender
from the exercise of any rights or remedies shall, unless otherwise required by
applicable Law, be applied as follows:

     A. First, to the payment of all reasonable expenses (to the extent not paid
by Borrower) actually incurred by the Lender in connection with the exercise of
such rights or remedies, including all out-of-pocket costs and expenses of
collection, reasonable attorneys' fees and court costs, all costs incurred by
the Lender directly or indirectly in carrying out the terms, covenants and
agreements contained in any Loan Document, together with interest thereon as
provided therein, and all other costs and expenses described in Section 8.A.6;

     B. Next, to the payment of any outstanding fees due hereunder;

     C. Next, to the payment of interest then accrued and unpaid on the Note;

                                       35
<PAGE>

     D. Next, to the payment of principal then owing on the Note;

     E. Next, to all of the other Obligations;

     F. Surplus, if any, unless a court of competent jurisdiction decrees
otherwise, to the Borrower.

     Section 10.D Attorney-in-Fact. In the event of an uncured Event of Default,
the Borrower hereby irrevocably makes, constitutes and appoints the Lender (and
any officer of the Lender or any Person designated by the Lender for that
purpose) as the Borrower's true and lawful proxy and attorney-in-fact (and
agent-in-fact) in the Borrower's name, place and stead, with full power of
substitution, to take such actions as are permitted in this Agreement. The
Borrower hereby acknowledges that the constitution and appointment of such proxy
and attorney-in-fact are coupled with an interest and are irrevocable. The
Borrower hereby ratifies and confirms all that said attorney-in-fact may do or
cause to be done by virtue of any provision of this Agreement.

SECTION 11.  MISCELLANEOUS.

     Section 11.A. Assignments and Participations. Lender, without the consent
of the Borrower, may assign or sell participation, to one or more banks or other
financial institutions all or a portion of its rights and obligations under this
Agreement (including without limitation all or a portion of its Commitments and
the Loans owing to it.

     Section 11.B. Withholding Taxes. Except as otherwise required by Law, each
payment by the Borrower under this Agreement or the Note shall be made without
setoff or counterclaim and without withholding for or on account of any present
or future taxes imposed by or within the jurisdiction in which the Borrower is
domiciled, any jurisdiction from which the Borrower makes any payment hereunder,
or (in each case) any political subdivision or taxing authority thereof or
therein (excluding any such tax imposed on the overall net income of Lender). If
any such withholding is so required, the Borrower shall make the withholding,
pay the amount withheld to the appropriate governmental authority before
penalties attach thereto or interest accrues thereon and forthwith pay such
additional amount as may be necessary to ensure that the net amount actually
received by Lender free and clear of such taxes (including such taxes on such
additional amount) is equal to the amount which Lender would have received had
such withholding not been made. If the Lender pays any amount in respect of any
such taxes, penalties or interest, the Borrower shall reimburse the Lender for
that payment on demand in the currency in which such payment was made. If a
Borrower pays any such taxes, penalties or interest, it shall deliver official
tax receipts evidencing that payment or certified copies thereof to the Lender
on or before the thirtieth day after payment.

     Section 11.C. Amendment and Waivers. No amendment or modification of any
provision of this Agreement shall be effective without the written agreement of
Lender and Borrower. Any waiver or consent shall be effective only in the
specific instance and for the specific purpose for which it was given. No notice
to or demand on Borrower in any case shall entitle Borrower to any further
notice or demand in similar or other circumstances.

                                       36
<PAGE>

     Section 11.D. Merger and Integration Clause. This Agreement and the Loan
Documents contain the entire agreement between the parties hereto with respect
to the subject matter hereof and specifically supersedes in its entirety the
proposal letter of the Lender to Borrower dated October 12, 1999, and any prior
drafts thereof or proposals or letters from the Lender with respect to the terms
of credit facility hereunder or any other matter which is the subject matter of
this Agreement or any of the Loan Documents.

     Section 11.E. Applicable Law. This Agreement, the Note and the other Loan
Documents have been executed, issued, delivered and accepted in and shall be
deemed to have been made under and shall be governed by and construed in
accordance with the Laws of the State of Illinois.

     Section 11.F. Severability. This Agreement, the Note and the other Loan
Documents shall be construed and interpreted in such manner as to be effective,
enforceable and valid under all applicable Laws. If any provision of this
Agreement, the Note or the other Loan Documents shall be held invalid,
prohibited or unenforceable under any applicable Laws of any applicable
jurisdiction, such invalidity, prohibition or unenforceability shall be limited
to such provision and shall not affect or invalidate the other provisions hereof
or thereof or affect the validity or enforceability of such provision in any
other jurisdiction, and to that extent, the provisions hereof and thereof are
severable.

     Section 11.G. Section Headings. Section headings used in this Agreement are
for convenience only and shall not effect the construction or interpretation of
this Agreement.

     Section 11.H. Binding Effect. This Agreement shall be binding upon and
inure to the benefit of the Lender and the Borrower, and their respective
successors and assigns; provided, however, that the Borrower has no right to
assign any of its rights or its obligations hereunder without the prior written
consent of Lender.

     Section 11.I. Notices. Any notices, requests or consents required or
permitted by this Agreement shall be (i) in writing, and (ii) delivered in
person, telexed, telecopied or sent by certified or registered mail, postage
prepaid, return receipt requested, or by overnight mail or express delivery
service to the addresses of the parties hereto set forth below, unless such
address, telex number or telecopier number is changed by written notice
hereunder. Each such notice, request, consent or other communication shall be
effective (i) if given by telecopier, when such telecopy is transmitted to the
telecopier number specified on the signature page hereof and a confirmation of
such telecopy has been received by the sender, (ii) if given by telex, when such
telex is transmitted to the telex number specified on the signature page hereof
and the answerback is received by sender, (iii) if given by mail, five (5) days
after such communication is deposited in the mail, certified or registered with
return receipt requested, addressed as aforesaid or (iv) if given by any other
means, when delivered at the addresses specified on the signature page hereof;
provided that any notice given pursuant to Sections 2 and 3 hereof shall be
effective only upon receipt.

(a)      To the Borrower, to it at:

         Hub International Limited
         55 East Jackson Boulevard
         Chicago, Illinois 60604

                                       37
<PAGE>

         Telecopy:  (312) 279-4981
         for the attention of:      W. Kirk James, Vice President,
                                    Secretary and General Counsel

(b)      To the Lender, to it at:

         LaSalle Bank National Association
         135 South LaSalle Street
         Chicago, Illinois  60603

         Telecopy:  (312) 904-6189
         for the attention of:  Commercial Banking Insurance Division, Suite 216

         with copy to:
         Lord, Bissell & Brook
         115 S. LaSalle Street
         Chicago, IL  60603

         Telecopy: (312) 443-0336
         for the attention of:  Kay W. McCurdy

or to such other address or facsimile or telecopy number as any party hereto may
from time to time designate to the other parties hereto in such manner.

     Section 11.J. Counterparts. This Agreement may be executed in any number of
counterparts, and by the different parties on different counterparts, each of
which when executed shall be deemed an original but all such counterparts taken
together shall constitute one and the same instrument.

     Section 11.K. Indemnification. The Borrower hereby indemnifies, exonerates
and holds free and harmless the Lender, each of its Affiliates and each of their
officers, directors, employees, agents-and attorneys (collectively, the
"Indemnified Parties" or, individually, an "Indemnified Party"), from and
against any and all actions, causes of action, suits, proceedings,
investigations, losses, costs, liabilities, damages, punitive damages, penalties
and expenses, including reasonable attorneys' and paralegals' fees and
disbursements (the "Indemnified Liabilities"), incurred by the Indemnified
Parties or any of them as a result of, or arising out of, or relating to
(irrespective of whether such Indemnified Party is a party to the action for
which indemnification hereunder is sought):

          (a) any transaction financed or to be financed in whole or in part,
     directly or indirectly, with the proceeds of any Loan;

          (b) the entering into and performance under this Agreement or any
     other Loan Document or by any party thereto; or

          (c) any investigation, litigation, or proceeding related to any
     acquisition or proposed acquisition by the Borrower of all or any portion
     of the stock or all or substantially

                                       38
<PAGE>

     all the assets of any Person or merger or proposed merger of the Borrower
     with any other Person, whether or not the Lender is party thereto and
     whether or not the proceeds of any Loans are used or to be used in
     connection therewith; except for any such Indemnified Liabilities arising
     by reason of an Indemnified Party's gross negligence or wilful misconduct.
     In addition, if the Borrower institutes any action, suit or proceeding
     against any of the Indemnified Parties and such action, suit or proceeding
     is unsuccessful, the Borrower shall indemnify and hold harmless the
     Indemnified Parties from and against all Indemnified Liabilities arising in
     connection with or relating to such action, suit or proceeding. The
     Borrower shall pay or reimburse the Indemnified Parties for any Indemnified
     Liabilities from time to time within thirty (30) days after demand. This
     Section and the agreements of the Borrower set forth herein shall survive
     the termination of this Agreement and any or all of the Loan Documents and
     repayment of all of the Obligations hereunder and thereunder. If and to the
     extent that the undertaking described in this Section 11.K. is held or
     determined by any court of competent jurisdiction to be unenforceable for
     any reason, the Borrower hereby agree to make the maximum contribution to
     the payment and satisfaction of each of the Indemnified Liabilities which
     is permissible under applicable Laws.

     Section 11.L. Independence of Covenants. All covenants hereunder shall be
given independent effect so that if a particular action or condition is not
permitted by any of such covenants, the fact that it would be permitted by an
exception to, or be otherwise within the limitations of, another covenant shall
not avoid the occurrence of an Event of Default or Default if such action is
taken or condition exists, and if a particular action or condition is expressly
permitted under any covenant, unless expressly limited to such covenant, the
fact that it would not be permitted under the general provisions of another
covenant shall not constitute an Event of Default or Default if such action is
taken or condition exists.

     Section 11.M. Limitation of Liability. To the extent permitted by
applicable Law, no claim may be made by Borrower or any other Person against
Lender, or its Affiliates, directors, officers, employees, attorneys or agents,
for special, indirect, consequential or punitive damages in respect of any claim
for breach of contract or any other theory of liability arising out of or
related to the transactions contemplated by this Agreement, or any act, omission
or event occurring in connection therewith; and Borrower hereby waives, releases
and agrees not to sue upon any claim for any such damages, whether or not
accrued and whether or not known or suspected to exist in its favor.

     Section 11.N. Consent to Jurisdiction and Waiver of Jury Trial and Personal
Service. THE BORROWER EXPRESSLY SUBMITS AND CONSENTS TO THE JURISDICTION OF ANY
STATE OR FEDERAL COURT LOCATED WITHIN COOK COUNTY, ILLINOIS IN ANY ACTION, SUIT
OR PROCEEDING (WHETHER IN CONTRACT OR TORT, AT LAW OR IN EQUITY) COMMENCED
THEREIN IN CONNECTION WITH OR WITH RESPECT TO THE OBLIGATIONS, THIS AGREEMENT,
THE NOTE OR ANY OTHER LOAN DOCUMENTS (INCLUDING, WITHOUT LIMITATION, ANY
DEFENSES OR COUNTER CLAIMS THEREIN), AND THE BORROWER AND THE LENDER EACH WAIVE
ANY RIGHT TO JURY TRIAL THAT THEY MAY NOW OR HEREAFTER HAVE UNDER ANY LAWS AND
ANY OBJECTION TO VENUE IN CONNECTION THEREWITH. THE BORROWER HEREBY WAIVES
PERSONAL SERVICE OF ANY AND ALL PROCESS OR PAPERS ISSUED OR SERVED IN CONNECTION
WITH THE FOREGOING AND AGREES THAT SERVICE OF SUCH PROCESS OR PAPERS MAY BE MADE
BY REGISTERED OR CERTIFIED MAIL,

                                       39
<PAGE>

POSTAGE PREPAID, RETURN RECEIPT REQUESTED, DIRECTED TO THE BORROWER AS SET FORTH
IN SECTION 11.I. ABOVE AND THE BORROWER'S REGISTERED AGENT, IN WHICH CASE SUCH
PROCESS OR PAPERS SHALL BE DEEMED RECEIVED FIVE (5) DAYS THEREAFTER, OR BY
OVERNIGHT MAIL OR EXPRESS DELIVERY SERVICE, IN WHICH CASE SUCH PROCESS OR PAPERS
SHALL BE DEEMED RECEIVED ONE (1) DAY THEREAFTER.

                            [SIGNATURE PAGE FOLLOWS]

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

                                       BORROWER:
                                       --------

                                       HUB INTERNATIONAL LIMITED

                                       By:   /s/ W. Kirk James
                                          --------------------------------------
                                       Name:     W. Kirk James
                                            ------------------------------------
                                       Title: Vice President and General Counsel
                                             -----------------------------------

                                       Address: 55 East Jackson Boulevard
                                                Chicago, Illinois 60604

                                       Telephone: (312) 279-4881
                                                  ------------------------------
                                       Telecopy:  (312) 279-4981
                                                  ------------------------------

                                       LENDER:
                                       ------

                                       LASALLE BANK NATIONAL ASSOCIATION

                                       By: /s/ Janet R. Gates
                                          --------------------------------------
                                       Name:    Janet R. Gates
                                       Title:   Senior Vice President
                                       Address: 135 South LaSalle Street
                                                Chicago, IL   60603
                                       Telephone:   (312) 904-4617
                                       Telecopy:    (312) 904-6189

                                       40

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