Document:

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                                                                   EXHIBIT 10.18

                      CONSULTING, NON COMPETE AND PAYMENTS
                                    AGREEMENT

         THIS AGREEMENT IS MADE AND ENTERED INTO BY AND BETWEEN ALLEN R.
FREEDMAN ("FREEDMAN") AND FORTIS, INC. ("FORTIS").

         WHEREAS Freedman, Fortis and Fortis Insurance N.V. have entered into an
agreement on this same date to provide for Freedman's retirement on July 31,
2000 ("Retirement Agreement") and to provide for certain obligations of each
party in connection with such retirement;

         NOW, THEREFORE, in consideration of the mutual covenants contained
herein and in the Retirement Agreement and for other good and valuable
consideration, receipt and sufficiency whereof being hereby acknowledged, the
parties hereto do hereby agree as follows:

         1.       PAYMENTS. Fortis shall pay to Freedman, his beneficiaries or
his estate, twelve quarterly payments of $157,000 in advance, beginning on
August l, 2000 and continuing on each November 1, February 1, May 1 and August l
thereafter through May 1, 2003 and two annual payments of $607,000 in advance,
beginning on August 1, 2003 and continuing on August l, 2004. Freedman may
designate in writing from time to time the beneficiaries of these payments and
such payments shall be made in accordance with such designation. Upon Freedman's
death without any such designation, the remaining payments will be paid to
Freedman's estate. If Fortis shall fail to pay any such quarterly or annual
payment after having received 30 days written demand for such payment, all
remaining payments shall come due and payable. Freedman shall be entitled to all
costs and expenses, including reasonable attorneys' fees, incurred by Freedman
in collecting the amounts due hereunder.

         2.       CONSULTING. Freedman agrees to provide consulting services to
Fortis, from time to time, for a period of three years from and after the
termination of his services as an employee of Fortis, at such times as may
reasonably be requested by Fortis, subject to Freedman's other obligations and
commitments, provided, however, that his consulting services will be provided
only in Florida, will not exceed 30 days of services per year and will involve
consulting only (i) with respect to all charitable organizations directly or
indirectly controlled by Fortis, including serving as a director of each such
organization if requested by Fortis, and (ii) with respect to the credit related
insurance business of Fortis and its direct and indirect subsidiaries conducted
in Florida. Freedman shall be an independent contractor in providing such
services. Fortis shall pay Freedman's reasonable out of pocket expenses incurred
in providing consulting services requested by Fortis hereunder. Freedman shall
be relieved of this obligation upon his death or disability.

         3.       COVENANT NOT TO COMPETE. The parties acknowledge and agree
that in the course of Freedman's services provided to Fortis and its Parents (as
defined herein), including but not limited to his service as CEO of Fortis, his
membership on the Boards of Fortis and certain of its affiliates, and his
participation on various committees involved in management and planning of
Fortis and its Parents, Freedman has become privy to a substantial amount of
trade secrets and

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                                                                               2

Confidential Information (as defined herein) of Fortis and its Parents.
Accordingly, the parties acknowledge and agree that it is both reasonable and
necessary for the protection of such trade secrets and Confidential Information,
for Freedman to refrain from competition with Fortis and its Parents as provided
in this Paragraph 3. Freedman covenants and agrees that, from the date of this
Agreement until the dates set out hereafter, Freedman shall not without the
prior written consent of Fortis, directly or indirectly, for Freedman's benefit
or on behalf of any other person, firm, partnership or corporation, whether
alone or as a partner, officer, director, manager or shareholder, do any one or
more of the following:

                  (a)      prior to August 1, 2003 be employed by, engage in or
         render any services to or consult with any business that is in
         competition in a substantive way within the United States or outside
         the United States with Fortis, provided that mere ownership of not more
         than five percent (5%) of the shares of stock of any corporation having
         a class of equity securities actively traded on a national or foreign
         exchange or on NASDAQ shall not be deemed to violate the provisions of
         this Agreement; or

                  (b)      prior to August 1, 2003 solicit any customer or
         client of Fortis or its direct and indirect subsidiaries to purchase or
         procure from an entity or enterprise that competes with the business of
         Fortis any services offered by Fortis to such customer or client at the
         time of Freedman's retirement; or

                  (c)      prior to August 1, 2005 encourage, solicit, or induce
         any officer or employee of Fortis or its direct and indirect
         subsidiaries to terminate his or her employment with Fortis and to
         enter an employment relationship with any person or entity engaged in
         any business activity competing with Fortis; or

                  (d)      prior to August 1, 2001 be employed by, engage in or
         render any services to or consult with any business that is in
         competition in a substantive way within the United States or outside
         the United States with Fortis (NL) N.V. or Fortis (B), which are the
         ultimate parents of Fortis, or the affiliates or direct and indirect
         subsidiaries of either such parent (such parents, together with any
         direct and indirect subsidiaries or affiliates of either parent being
         referred to collectively as "Parents" and singularly as "Parent"),
         provided that mere ownership of not more than five percent (5%) of the
         shares of stock of any corporation having a class of equity securities
         actively traded on a national or foreign exchange or on NASDAQ shall
         not be deemed to violate the provisions of this Agreement; or

                  (e)      prior to August 1, 2001 solicit any customer or
         client of Parents to purchase or procure from an entity or enterprise
         that competes with the business of either Parent any services offered
         by any Parent to such customer or client at the time of Freedman's
         retirement; or

                  (f)      prior to August 1, 2005 encourage, solicit, or induce
         any officer or employee of any Parent to terminate his or her
         employment with such Parent and to enter an employment relationship
         with any person or entity engaged in any business activity competing
         with Parent or Fortis.

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                                                                               3

Fortis agrees to act reasonably in reviewing any request by Freedman under this
provision and shall not unreasonably withhold or delay its consent, but nothing
contained herein shall be construed to limit the legitimate competitive rights
and protections afforded to Fortis and its affiliates by this provision. In
addition, if Fortis fails to respond in writing to a request by Freedman within
30 days of receipt of such request, such request shall be deemed to have been
approved by Fortis. For the purposes of this Paragraph 3, (i) a person shall be
deemed to be in competition with or to compete with Fortis only if the business
activities of such person directly compete with one of the operating direct and
indirect subsidiaries of Fortis owned by Fortis at the time of Freedman's
retirement or acquired by Fortis within six months after the retirement, and
(ii) a person shall be deemed to be in competition with or to compete with a
Parent only if the business activities of such person directly compete in the
insurance industry, including but not limited to bank insurance, with a Parent
that is a Parent at the time of Freedman's retirement or becomes a Parent within
six months after the retirement; provided, however, that the provisions of
Sections 3(a) and 3(d), respectively, shall in no event be deemed violated by
employment, consulting or the rendering of services that relate solely to the
business activities that are not described in clauses (i) and (ii),
respectively, of this sentence. However, Freedman agrees that prior to April 30,
2005, he will not be employed by, engage in or render any services to or consult
with ING, Aegon, or Zurich.

         4.       REASONABLENESS OF RESTRICTIONS.

                  (a)      Freedman has carefully read and considered the
         provisions of this Agreement and agrees that the restrictions set forth
         in Paragraph 3 (including, but not limited to, the time period of
         restriction, the geographic area of restriction and the activities
         restricted) are fair and reasonable and are reasonably required for the
         protection of Fortis.

                  (b)      In the event that any provision of Paragraph 3
         relating to the time period of restriction, the geographic scope of the
         restriction or the subject matter of the restriction shall be declared
         by a court of competent jurisdiction or arbitration panel to exceed the
         maximum time period, area or scope such court or panel deems reasonable
         and enforceable, the provisions of Paragraph 3 shall be deemed to
         become the maximum time period, area and/or scope which such court or
         panel deems reasonable and enforceable.

         5.       SEVERABILITY. The provisions of this Agreement shall be deemed
severable and the invalidity or the enforceability of any one or more of the
provisions hereof shall not affect the validity and enforceability of the other
provisions hereof. In the event that, notwithstanding the foregoing Paragraph 4,
any of the provisions of Paragraph 3 hereof shall be held to be invalid or
unenforceable, the remaining provisions thereof shall nevertheless continue to
be valid and enforceable as though the invalid or unenforceable parts had not
been included therein.

         6.       REMEDY IN THE EVENT OF BREACH. In the event of an uncured
breach of any provision or covenant of this Agreement by Freedman, after having
first received 10 days written notice from Fortis advising of the breach, Fortis
shall be entitled to immediately cease and terminate any compensation payable
under Paragraph 1 of this Agreement, provided that if Fortis does not elect to
terminate the payments as provided above because it believes that monetary

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                                                                               4

damages provided by such termination of payments would not be adequate and that
damages generally would be difficult or impossible to determine with accuracy,
then Fortis shall instead be entitled (without posting bond or other security)
to an injunction or injunctions to prevent breaches of the agreements in
Paragraph 3 of this Agreement and to enforce specifically such agreements in
accordance with their terms in any action instituted in any court of competent
jurisdiction. The prevailing party in any such action shall be entitled to costs
and expenses, including reasonable attorneys' fees, as a part of the remedies in
such action. Such remedies, included in this Paragraph, shall be in place of all
other remedies available at law or in equity, including, without limitation,
injunctions, damages, costs and reasonable attorney's fees. In exercising its
rights under this Paragraph, Fortis agrees to act reasonably and in good faith.

         7.       CONFIDENTIALITY. Freedman agrees that he will retain in
confidence and he will not use for his benefit or the benefit of others all
confidential or proprietary information that is not generally available to the
public and constitutes special, valuable and unique property of Fortis or any
Parent ("Confidential Information"), except as otherwise required by law or by
order or subpoena of a court, governmental agency or other body with apparent
jurisdiction to order disclosure. Freedman shall promptly notify Fortis of any
such requirement and use reasonable efforts to permit Fortis to challenge such
requirement. Confidential Information includes, without limitation, any and all
specifications, designs, business plans, financial information, proposals,
reports, marketing plans and information, cost or underwriting information,
customer information, sales volumes and other sales statistics, personnel data,
profit margins, sources of supply, pricing information, development plans,
business strategies, trade secrets, concepts and ideas, known to Freedman
concerning Fortis or its affiliates and their business. Freedman will hold all
such Confidential Information in trust and in strictest confidence, and will
protect the Confidential Information from dissemination, reproduction or
disclosure. The obligations of Freedman under this Paragraph shall survive
termination of employment and shall not apply or will cease to apply to
information that (a) has become generally known or available to the public
through no wrongful act of Freedman, or (b) has been disclosed by Fortis to
other Parties on a non-confidential basis.

         8.       GOVERNING LAW. The construction and interpretation of this
Agreement shall at all times and in all respects be governed by the laws of the
State of New York without reference to such state's conflict of laws provisions.

         9.       NOTICES. Unless otherwise required by law, all notices,
payments, requests, demands and other communications under this Agreement shall
be in writing and shall be deemed to have been duly given on the date of service
if served personally on or transmitted by telecopier to whom such notice is to
be given, on the next day after being sent by an overnight, commercial air
carrier service, or when received if mailed to the party to whom notice is to be
given by first class mail, registered or certified, postage prepaid, and
properly addressed as follows:

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                                                                               5

        Freedman:          525 County Highway 40
                           Charlotteville, New York, 12036

                           With a copy to
                           Seth B. Freedman
                           607 Glenmary Rd.
                           St. Davids, Pennsylvania, 19087

        Fortis:            J. Kerry Clayton
                           Fortis, Inc.
                           One Chase Manhattan Plaza
                           New York, New York, 10005

Any party may change its address for purposes of this section and may add,
change or delete required copies by giving the other party written notice of the
new address in the manner set forth above.

         10.      COUNTERPARTS. This Agreement may be executed in several
counterparts, each of which shall be deemed an original but all of which shall
constitute one and the same instrument representing the Agreement between the
parties.

         11.      ARBITRATION.

                  (a)      Except as set forth in Paragraph 11(b), any claim,
         controversy or dispute arising out of or relating to this Agreement, on
         which an amicable understanding cannot promptly be reached, to the
         maximum extent allowed by applicable law and irrespective of the type
         of relief sought, shall be submitted to and resolved by arbitration,
         and such arbitration shall be the sole remedy for such matter. Such
         arbitration shall be heard and conducted in New York, New York and
         shall be conducted expeditiously in accordance with the Commercial
         Arbitration Rules of the American Arbitration Association ("AAA"), as
         such rules shall be in effect on the date of delivery of demand for
         arbitration, with the exception that the arbitrators may not award any
         punitive or exemplary damages or any damages other than compensatory.
         The prevailing party may be awarded costs and expenses, including
         reasonable attorneys' fees. The award rendered by the arbitrators shall
         be final, binding and non-appealable, and judgment upon such award may
         be entered by any court having jurisdiction thereof.

                  (b)      Any claims in equity pursuant to which a party is
         seeking a temporary restraining order or an injunction may be pursued
         in court. The parties hereto agree that any action or suit in any way
         arising out of this Agreement, brought by any party hereto against
         another party to this Agreement, shall be brought only in a court
         located in New York County, State of New York, and each party hereto
         (regardless whether such party is otherwise subject to personal
         jurisdiction in New York County or the State of New York) consents and
         submits to the jurisdiction of any local, state, or federal court
         located within said county and state. Process may be served in any such
         action on a party hereto by use of, and in accordance with, any of the
         methods by which notice may be given to a party hereto under Paragraph
         9 of this Agreement.

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                                                                               6

         12.      SPECIAL PROVISIONS DEALING WITH TERMINATION OF FREEDMAN'S
EMPLOYMENT.

                  (a)      If Freedman's employment with Fortis is terminated
         prior to July 31, 2000 because of Freedman's death or disability,
         because Fortis terminates such employment without Cause as hereinafter
         defined, or for any other reason, other than voluntary termination of
         employment by Freedman or termination of Freedman's employment by
         Fortis for Cause, all provisions of this Agreement shall apply to the
         parties as if Freedman had retired on July 31, 2000.

                  (b)      If Freedman's employment with Fortis is terminated by
         Freedman voluntarily prior to July 31, 2000 or if Freedman's employment
         is terminated by Fortis for Cause prior to July 31, 2000, Fortis shall
         be entitled to elect to cancel this Agreement or to treat such
         termination as a retirement by Freedman as of July 31, 2000. If Fortis
         elects to cancel this Agreement, it must act within 15 days of
         Freedman's termination of employment by giving written notice to
         Freedman in the manner provided in Paragraph 9 of this Agreement. A
         cancellation of this Agreement shall be deemed to be a cancellation of
         the Retirement Agreement. A cancellation of this Agreement means that
         all of its provisions will be of no further force and effect and
         Freedman shall be entitled to whatever other existing Fortis plans,
         benefits and agreements that are applicable to Freedman in accordance
         with the terms thereof.

                  (c)      "Cause" for purposes of this Agreement shall mean a
         termination of Freedman's employment by Fortis due to his willful gross
         act, or willful gross omission, in violation of his lawful obligations
         to Fortis, including, without limitation, the following: Freedman's
         conviction of a felony that is connected with or related to the
         performance of his obligations as an employee of Fortis; the willful
         perpetration by Freedman of a gross fraud against or affecting Fortis;
         or Freedman's willful participation in or willful allowance of the
         commission by any of Freedman's subordinates of any act of commercial
         bribery affecting or connected with Fortis or Freedman's duties to
         Fortis; provided, however, Freedman shall be given written notice of
         any matter that Fortis believes is Cause and shall be given 30 days to
         cure any such matter that Fortis considers Cause, and any such matter
         that shall have been so cured shall no longer constitute Cause.

         IN WITNESS WHEREOF, Freedman and Fortis have duly executed this
Agreement as of the date set forth below.

                                                  ALLEN R. FREEDMAN

Date: 7/19/99                                     /s/ ALLEN R. FREEDMAN
                                                  ---------------------
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                                                                               7

STATE OF NEW YORK                   )

COUNTY OF MANHATTAN                 ) ss.

         On the 19th day of July, 1999, before me personally appeared, Allen R.
Freedman, to me known to be the person described herein and who executed the
foregoing instrument, and acknowledged that he voluntarily and willingly
executed the same as his free act and deed.

                                                   /s/  MELVIN SCHNEIDERMAN
                                                  -----------------------------
                                                  Notary Public

My Commission Expires:

MELVIN SCHNEIDERMAN
Notary Public, State of New York
No. 3-4932722
Qualified in New York County
Commission Expires July  26, 2000
___________________, 1999
[SEAL]

                                                  COMPANY:

                                                  FORTIS, INC.

Date: 7-19, 1999                                  By:/s/ J. KERRY CLAYTON
                                                     -------------------------
                                                  Title: Exec. V. P.

<PAGE>

                              APPROVAL PURSUANT TO
                 CONSULTING, NON COMPETE AND PAYMENTS AGREEMENT
                                       AND
                                JOINDER AGREEMENT

         In connection with and immediately subsequent to the entering into of
the Consulting, Non Compete and Payments Agreement ("Agreement") with Fortis,
Inc., dated July 19th, 1999, Allen R. Freedman ("Freedman") has requested that
Fortis approve the following activities as being excluded from Paragraph 3 of
the Agreement and excluded from Paragraph 10 of Freedman's Joinder Agreement
("Joinder Agreement") with respect to the Fortis Supplemental Executive
Retirement Plan ("SERP") from and after the termination of Freedman's employment
with Fortis:

         1.       Consulting in connection with Freedman's son, Seth Freedman,
                  with respect to integrated health care delivery systems and
                  health plans that predominately serve the health care market,
                  or with respect to comparable activities where the primary
                  business activities of the persons for whom the consulting is
                  performed are not directly competitive with a direct or
                  indirect subsidiary of Fortis.

         2.       Investment banking activities in the merger and acquisition
                  area, including merger and acquisition activities involving
                  insurance companies, except as provided in the next sentence.
                  This approval does not authorize Freedman to represent any
                  person undertaking (i) to acquire any interest in Fortis, any
                  subsidiary thereof or any line of business of Fortis or of a
                  Fortis subsidiary, (ii) to sell a company or line of business
                  to Fortis or a subsidiary thereof or (iii) to acquire a
                  company or a line of business that, to the best of Freedman's
                  knowledge, Fortis is undertaking to acquire.

Freedman has reaffirmed that all provisions of the confidentiality agreements
that he has entered with Fortis, including Paragraph 7 of the Agreement and
Paragraph 11 of his Joinder Agreement, shall continue to apply in connection
with any of the foregoing activities.

In response to the request by Freedman as expressed in this document, Fortis
does hereby grant its approval to the above business activities by Freedman and
agrees that as a result of this approval, such activities will not be restricted
by the provisions of Paragraph 3 of the Agreement and or by Paragraph 10 of the
Joinder Agreement.

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                                                                               2

In witness whereof, Fortis and Freedman have duly executed this Approval this
19th day of July, 1999.

                                                  FORTIS, INC.

                                                  By:/s/ J. KERRY CLAYTON
                                                  ---------------------------
                                                  Authorized Officer

                                                  /s/ ALLEN R. FREEDMAN
                                                  ---------------------------
                                                  ALLEN R. FREEDMAN<PAGE>

                                                                   EXHIBIT 10.19

                                   RETIREMENT
                                    AGREEMENT
                                      AMONG
                                ALLEN R. FREEDMAN
                                       AND
                     FORTIS, INC. AND FORTIS INSURANCE N.V.

         This Agreement is made and entered into this 19th day of July, 1999
("Agreement") by and among Allen R. Freedman ("Freedman"), Fortis, Inc.
("Fortis"), and Fortis Insurance N.V. ("Parent").

BACKGROUND.

         Freedman has served as the CEO of Fortis since its creation in 1979 and
will be 60 years old on April 30, 2000. Fortis is owned by Parent. Freedman will
retire on July 31, 2000. In connection with such retirement, Fortis has agreed
to provide to Freedman the payments and benefits set out in this Agreement.
Parent is entering into this Agreement to provide Freedman with its guaranty of
performance by Fortis. Fortis and Parent have taken such corporate actions as
may be necessary to authorize the entering into of this Agreement.

AGREEMENT.

         In consideration of the mutual promises and undertakings in this
Agreement and for other good and valuable consideration, the receipt and
sufficiency whereof being hereby acknowledged, Fortis, Parent and Freedman do
hereby agree as follows:

1.       RETIREMENT. Freedman shall retire from being an officer and employee of
         Fortis on July 31, 2000. Freedman shall cease being CEO on or before
         April 30, 2000, but will continue as Chairman of the Board until July
         31, 2000. Freedman shall, upon termination of his employment with
         Fortis, be entitled to all of the rights and benefits under all
         existing Fortis plans and programs that are applicable to him, with the
         additional provisions that are in this Agreement.

2.       1999 COMPENSATION. Freedman shall receive base pay and shall
         participate in bonus and other programs for 1999 in the amounts and on
         the terms previously approved.

3.       2000 BASE PAY AND SHORT TERM BONUS. Freedman shall receive a pro rata
         share of a base salary of $800,000 per year from January 1, 2000
         through July 31, 2000, along with participation in the short-term bonus
         to that date for his services. The amount of such short-term bonus will
         be one-third of the targeted amount of $800,000.

4.       LONG TERM INCENTIVE PLAN ("LTIP"). Freedman shall receive grants under
         the LTIP through the cycle beginning January 1, 1999. The provisions in
         this Agreement as applied to Freedman shall prevail where they are
         inconsistent with the terms of the LTIP. All grants to Freedman under
         the LTIP, including amounts previously deferred and any other amounts
         vested in Freedman under earlier long term plans (including
         modifications

<PAGE>

         thereof) benefiting Freedman, shall be fully vested and non forfeitable
         on his retirement on July 31, 2000. The performance of Fortis through
         1999, plus the targeted performance of Fortis (i.e. 1.0 performance
         rating) for the years remaining under the open cycles through 2001,
         shall be used to determine the amount of LTIP bonus that will be paid
         to him within 15 days of July 31, 2000, subject to his election of any
         deferrals under the LTIP. Amounts credited shall be based on the value
         of share equivalents as of June 30, 2000. Fortis agrees that Freedman
         shall be permitted deferrals with respect to his participation in the
         LTIP, including amounts previously deferred and any other amounts
         vested in Freedman under earlier long term plans (including
         modifications thereof), benefiting Freedman, under the following
         principles:

                  -        The deferred amount will be deemed invested in one or
                           more of the options permitted under the Fortis
                           qualified plans in accordance with procedures
                           comparable to those applicable to participants in
                           such plans, if selected by Freedman.

                  -        The deferral may, at Freedman's election, extend for
                           up to 5 years after the later of termination as an
                           employee and termination as a member of the Board of
                           Directors of Fortis, but not beyond a change in
                           control of Parent. Fortis shall establish reasonable
                           procedures allowing Freedman and his successors and
                           beneficiaries (as the case may be) to change the
                           deferral elected for some or all of the amounts
                           deferred, which procedures shall be designed so as
                           not to jeopardize the tax effectiveness of the
                           deferral.

                  -        Freedman may, in addition and at any time, elect to
                           require a distribution of some or all of the amounts
                           deferred prior to the then scheduled deferral date,
                           subject to a discount of the greater of $100,000 or
                           10% of the value otherwise being distributed, which
                           discount Fortis will retain.

                  -        An amount equal to the deferred amount will be put in
                           a trust for the benefit of Freedman during the
                           deferral period after retirement. The trust will be
                           designed to prevent any portion of the amount from
                           being taxable to Freedman until actually paid to
                           Freedman.

                  -        Fortis shall establish reasonable procedures,
                           including the procedures referred to above, for
                           implementing and managing the deferral program, which
                           procedures shall be subject to Freedman's approval,
                           which will not be unreasonably withheld; shall be
                           developed in consultation with Freedman and shall be
                           designed so as not to jeopardize the tax
                           effectiveness of the deferral

                                      -2-
<PAGE>

5.       EURO-OPTIONS. No Euro-options will be granted to Freedman in 2000. All
         outstanding Euro-options previously granted to Freedman shall vest in
         Freedman and become non-forfeitable on any termination of Freedman's
         employment with Fortis. In addition, the Euro-option plan will be
         amended to provide that all options granted under the plan will be
         exercisable for 3 years after the later of retirement as an employee or
         as a member of the Board of Directors of Fortis.

6.       SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN ("SERP"). Beginning on August 1,
         2000, Freedman shall receive a Joint and 100% Survivor Annuity in
         accordance with terms of the SERP as currently in effect of $800,000
         annually, less the amounts provided in Section 3.01(b), (c), and (d) of
         the SERP Plan, with all other provisions of the SERP, including
         Freedman's Joinder Agreement, being applicable to such payments;
         provided that, in the event that Freedman shall have died prior to
         August 1, 2000 and his wife shall then survive, for the avoidance of
         doubt, his wife shall receive the specified annuity beginning as of
         August 1, 2000. In addition, after the annuity payments have commenced,
         Freedman or his wife, at any time, may elect to take a prompt lump sum,
         actuarially determined as provided in the SERP, in place of the annuity
         payments, and such lump sum payment shall be subject to a discount of
         the greater of $100,000 or 10% of the lump sum value. Freedman and his
         wife shall be entitled to reasonable financial information about Fortis
         to assist them in making a decision about a lump sum payment. The
         provisions in this paragraph shall take precedence over the SERP and
         Freedman's Joinder Agreement to the extent that the provisions are
         inconsistent with the SERP or the Joinder Agreement, including the
         election being made by this Agreement for Freedman to have a Joint and
         100% Survivor Annuity under the SERP rather than the current election
         in the Joinder Agreement.

7.       BOARD MEMBERSHIPS. Freedman shall continue as a member of the Boards of
         Directors of Fortis, the mutual funds managed by Fortis, the charitable
         funds primarily supported by Fortis, and other such Fortis related
         directorships as may be appropriate. Fortis intends to continue to seek
         to elect Freedman to such directorships for so long as is reasonable
         and appropriate under the circumstances, but no longer than while
         Fortis controls such entity or manages the mutual funds, and Freedman
         shall be entitled to the fees and expenses paid for directors that are
         not employees of Fortis.

8.       HEALTH BENEFITS. As generally now provided to retirees, Fortis shall
         provide Freedman and his wife with the right to participate in the
         Fortis group insurance program fully and in the same manner as they
         have participated while Freedman was an employee until Freedman and his
         wife are 65, and Freedman and his wife will be obligated to pay Fortis
         the amounts that are customarily charged to Fortis retirees for
         participating in the insurance program. Freedman shall receive the same
         benefits after age 65 as are provided to other Fortis retirees
         similarly situated.

9.       INSTALLMENT PAYMENTS, RELEASE AND NO COMPETE AGREEMENT. Fortis shall
         pay to Freedman, his designated beneficiary or his estate, 12 equal
         quarterly payments in advance of $157,000 each, beginning on August 1,
         2000 and two equal annual payments of $607,000 each, beginning on
         August 1, 2003 and Freedman shall agree to provide designated
         consulting services and not to compete with Fortis for a designated
         period,

                                      -3-
<PAGE>

         with such payments, such services and such non compete to be included
         in a separate agreement between Fortis and Freedman. In addition, as
         have all participants in the SERP, Freedman has agreed in the Joinder
         Agreement to the SERP that the payment of the SERP payments is
         contingent on his continuing not to compete with Fortis, as well as
         certain other restrictions, for a period of one-year following
         termination of his employment.

10.      INDEMNIFICATION. Fortis shall provide to Freedman the most complete
         indemnity protection (including rights to advancement of expenses)
         currently provided by the by-laws of Fortis with respect to the period
         during which he is an officer or director of Fortis, and, for a period
         of 6 years thereafter, Fortis shall keep in place a directors' and
         officers' liability policy or policies covering Freedman to the extent
         such coverage is provided for other current or former senior executives
         or directors of Fortis.

11.      RELEASE.

                  (a)      Freedman forever releases Fortis, its parents,
         subsidiaries and other affiliates and as to each of the foregoing
         persons: (A) its agents; (B) its officers; (C) its employees; (D) its
         directors; and (E) any trustee, administrator or officer of any benefit
         or pension plan which is administered or operated in whole or in part
         for the benefit of current or former employees of Fortis (other than
         with respect to any payments to which Freedman is entitled under any
         benefit plan following execution of this Agreement), from and against
         any and all claims, damages, and liabilities whatsoever, whether known
         or unknown, absolute or contingent, accrued or unaccrued that he may
         have as of the date of this Agreement, including but not limited to all
         claims arising from or in any way connected with Freedman's employment
         by Fortis and Freedman's termination from employment, but excluding any
         claims, damages or liabilities associated with any breach by Fortis of
         the terms of this Agreement or the Consulting, Non Compete and Payments
         Agreement of even date herewith ("Special Agreement") or of Fortis
         obligations to provide Freedman with benefits or compensation that is
         referred to in this Agreement or that is accrued, vested or earned as
         of Freedman's termination of employment. This release includes but is
         not limited to all claims of: (i) wrongful discharge, including claims
         of retaliatory discharge; (ii) breach of contract; (iii) age
         discrimination; (iv) disability/handicap discrimination; (v) violations
         of the federal Employee Retirement Income Security Act; and (vi) any
         claim based upon tort, equity or any violation of any state or federal
         statute or municipal employment laws, regulations, executive orders or
         other requirements. As a condition of any payments to be made by Fortis
         under this Agreement, Freedman agrees to execute a further release
         identical in substance to the provisions of this Paragraph 11 as shall
         be requested by Fortis effective on Freedman's termination of
         employment date.

                  (b)      Fortis, on behalf of itself and its subsidiaries,
         hereby releases Freedman from any claims, damages, and liabilities
         whatsoever, whether known or unknown, absolute or contingent, accrued
         or unaccrued as of the date of this Agreement (excluding any claims,
         damages or liabilities associated with any breach by Freedman of the
         terms of this Agreement or the Special Agreement). Fortis agrees to
         execute a further release

                                      -4-
<PAGE>

         identical in substance to the provisions of this Paragraph 11 as shall
         be requested by Freedman effective on Freedman's termination of
         employment date.

12.      EXTINGUISHMENT OF AGE DISCRIMINATION CLAIM. Freedman acknowledges that
         in addition to other claims arising out of his employment his execution
         of this Agreement extinguishes any claim which Freedman may have
         against Fortis or its agents, officers, directors or employees under
         the Federal Age Discrimination in Employment Act and any state or local
         law which protects persons 40 years of age and older from age
         discrimination.

13.      CONSULTATION RIGHTS. Freedman acknowledges that Freedman has been
         advised to consult with an attorney regarding this document; and
         Freedman further acknowledges that Freedman may consult with the United
         States Department of Labor, Equal Employment Opportunity Commission or
         any state or local authority having jurisdiction over the matters
         addressed in this Agreement in regard to this Agreement and the
         releases contained in this Agreement. Freedman further acknowledges
         that Freedman has been provided by Fortis with a full and ample
         opportunity to present this Agreement to an attorney of Freedman's
         choosing, and to the United States Department of Labor, the Equal
         Employment Opportunity Commission or any state or local authority
         having jurisdiction over the matters addressed in this Agreement.
         Freedman has consulted with an attorney, who has reviewed this
         Agreement. Freedman waives Freedman's rights to pursue any claim or
         grievance through any of the aforesaid agencies (other than in regard
         to enforcing Freedman's rights under this Agreement, under the Special
         Agreement or referred to in this Agreement). If any agency or attorney
         pursues any such claim or grievance on behalf of Freedman and against
         Fortis, or its agents, directors, shareholders, officers or employees,
         Freedman will instruct the agency and attorney to terminate and abandon
         the claim or grievance.

14.      RECEIPT OF AGREEMENT AND OPPORTUNITY FOR REVIEW. Freedman acknowledges
         that Freedman has been apprised that he is legally entitled to consider
         this Agreement for twenty-one (21) days before executing the Agreement.
         Freedman has reviewed and is satisfied with the terms of this Agreement
         as executed and waives any further opportunity for review except as
         provided in Paragraph 15.

15.      REVOCATION OF AGREEMENT. Fortis acknowledges that Freedman may cancel
         this Agreement within seven (7) days after executing the Agreement.
         This Agreement shall be final and binding unless revoked by Freedman
         within seven (7) days after execution. If Freedman revokes this
         Agreement under the terms of this Paragraph 15, this Agreement and the
         Special Agreement shall be null and void and of no force or effect. In
         the event Freedman exercises this right to revoke this Agreement,
         Freedman shall notify Fortis's designated agent for this purpose, in
         writing prior to the expiration of the seven (7) day period in
         accordance with the notice provisions set forth in Paragraph 9 of the
         Special Agreement.

16.      PARENT'S GUARANTY. Parent has joined this Agreement to guarantee prompt
         satisfaction of each and every obligation of Fortis to Freedman and his
         wife hereunder and under the

                                      -5-
<PAGE>

         agreements and plans benefiting Freedman and his wife after Freedman's
         retirement and such guaranty shall be unconditional, legally binding
         and irrevocable.

17.      MISCELLANEOUS. This Agreement shall be governed by and construed in
         accordance with the laws of the state of New York, without regard for
         any conflict of law principles that might make some other law
         applicable. The provisions of this Agreement shall be deemed severable
         and the invalidity or the enforceability of any one or more of the
         provisions hereof shall not affect the validity and enforceability of
         the other provisions hereof. This Agreement may be executed in any
         number of counterparts, but all such counterparts shall constitute one
         and the same instrument. This Agreement shall also be for the benefit
         of Freedman's wife and shall be binding on the parties and their
         respective heirs, beneficiaries, successors and assigns, except that no
         party will be relieved of such party's obligations hereunder by virtue
         of any transfer of the Agreement.

18.      AGREEMENT TO ARBITRATE.

                  (a)      Except as set forth in Paragraph 18(b), any claim,
         controversy or dispute arising out of or relating to this Agreement, on
         which an amicable understanding cannot promptly be reached, to the
         maximum extent allowed by applicable law and irrespective of the type
         of relief sought, shall be submitted to and resolved by arbitration,
         and such arbitration shall be the sole remedy for such matter. Such
         arbitration shall be heard and conducted in New York, New York and
         shall be conducted expeditiously in accordance with the Commercial
         Arbitration Rules of the American Arbitration Association ("AAA"), as
         such rules shall be in effect on the date of delivery of demand for
         arbitration, with the exception that the arbitrators may not award any
         punitive or exemplary damages or any damages other than compensatory.
         The prevailing party may be awarded costs and expenses, including
         reasonable attorneys' fees. The award rendered by the arbitrators shall
         be final, binding and non-appealable, and judgment upon such award may
         be entered by any court having jurisdiction thereof.

                  (b)      Any claims in equity pursuant to which a party is
         seeking a temporary restraining order or an injunction may be pursued
         in court.

19.      SPECIAL PROVISIONS DEALING WITH TERMINATION OF FREEDMAN'S EMPLOYMENT.

                  (a)      If Freedman's employment with Fortis is terminated
         prior to July 31, 2000 because of Freedman's death or disability,
         because Fortis terminates such employment without Cause as hereinafter
         defined, or for any other reason, other than voluntary termination of
         employment by Freedman or termination of Freedman's employment by
         Fortis for Cause, all provisions of this Agreement shall apply to the
         parties as if Freedman had retired on July 31, 2000.

                  (b)      If Freedman's employment with Fortis is terminated by
         Freedman voluntarily prior to July 31, 2000 or if Freedman's employment
         is terminated by Fortis for Cause prior to July 31, 2000, Fortis shall
         be entitled to elect to cancel this Agreement or to treat such
         termination as a retirement by Freedman as of July 31, 2000. If Fortis
         elects to cancel this Agreement, it must act within 15 days of
         Freedman's termination of employment by giving written notice to
         Freedman in the manner provided in the Special

                                      -6-
<PAGE>

         Agreement. A cancellation of this Agreement shall be deemed to be a
         cancellation of the Special Agreement. A cancellation of this Agreement
         means that all of its provisions will be of no further force and effect
         and Freedman shall be entitled to whatever other existing Fortis plans,
         benefits and agreements that are applicable to Freedman in accordance
         with the terms thereof.

                  (c)      "Cause" for purposes of this Agreement shall mean a
         termination of Freedman's employment by Fortis due to his willful gross
         act, or willful gross omission, in violation of his lawful obligations
         to Fortis, including, without limitation, the following: Freedman's
         conviction of a felony that is connected with or related to the
         performance of his obligations as an employee of Fortis; the willful
         perpetration by Freedman of a gross fraud against or affecting Fortis;
         or Freedman's willful participation in or willful allowance of the
         commission by any of Freedman's subordinates of any act of commercial
         bribery affecting or connected with Fortis or Freedman's duties to
         Fortis; provided, however, Freedman shall be given written notice of
         any matter that Fortis believes is Cause and shall be given 30 days to
         cure any such matter that Fortis considers Cause, and any such matter
         that shall have been so cured shall no longer constitute Cause.

         In witness whereof the parties hereto have duly executed this Agreement
the day and year first above written.

FORTIS, INC.                                       FORTIS INSURANCE
                                                   HOLDING N.V.

 /s/  J. KERRY CLAYTON                              /s/  H. J. HIELKEMA
--------------------------                         ------------------------
Authorized Officer                                 Authorized Officer

 /s/ ALLEN R. FREEDMAN
--------------------------
ALLEN R. FREEDMAN

                                      -7-
<PAGE>

March 22, 2000

                                                           FORTIS
                                              Solid partners, flexible solutions

Fortis Inc.
One Chase Manhattan Plaza
41st Floor
New York, NY 10005 USA

Fortis Insurance N.V.
Archimedeslaan 6
NL - 3584 BA UTRECHT

                                                       ALLEN R. FREEDMAN
                                                       Chairman &
                                                       Chief Executive Officer

                                                       FORTIS, INC.

                                                       One Chase Manhattan Plaza
                                                       New York, NY 10005
                                                       Telephone
                                                       (212) 859-7001
                                                       Facsimile
                                                       (212) 859-7010

Dear Gentlemen:

Paragraph 4 of my Retirement Agreement dated July 19, 1999, provides that I may
defer some or all of my Long Term Incentive Plan earnings, that an amount equal
to the deferred portion of the LTIP will be put in a trust and that the deferred
amount will be deemed to be invested in the investment options permitted under
the Fortis qualified plans. I have elected to cause this deferral. However, it
has now been concluded that, as the investment options available in the
qualified plans are not available to the general public, it is not appropriate
to limit the deemed investments to those investment options.

In order to cure this defect, I would like to amend Paragraph 4 of my Retirement
Agreement to provide that the following investments will be the permissible
deemed investments of the deferred amount: (1) investments that are
substantially the same as the investment options permitted under the Fortis,
Inc. Employees' Uniform Profit Sharing Plan (or the successor of such plan), (2)
any investment product that is offered by Fortis, Inc. or any of its affiliates
to customers on a regular commercial basis, (3) split dollar life insurance and
loans related to such split dollar life insurance, and (4) any other publicly
traded investments.

                                      -8-
<PAGE>

I confirm that I will be entitled to receive for my LTIP deferred amount,
pursuant to Paragraph 4 of my Retirement Agreement, only the value of the
deferred amount, as such amount may increase or decrease based on the deemed
investment of such amount. In other words, I will bear the burden of bad
investments and have the benefit of good investments.

This request does not involve any economic cost or hardship to Fortis and
clarifies a previous ambiguity in the agreement. Therefore, I would very much
appreciate receiving a signed copy of this letter to confirm this change to my
Retirement Agreement.

Sincerely,

                                                      ALLEN R. FREEDMAN
                                                      Chairman &
                                                      Chief Executive Officer

                                                      FORTIS, INC.

                                                      One Chase Manhattan Plaza
                                                      New York, NY 10005
                                                      Telephone
                                                      (212)859-7001
                                                      Facsimile
                                                      (212)859-7010

/s/ ALLEN R. FREEDMAN
-------------------------
Allen R. Freedman

Fortis Inc.                       Dated: 3/23/00

 /s/ J. KERRY CLAYTON
-------------------------
Authorized Officer

Fortis, Insurance, N.V.           Dated: 4/5/00

/s/ H. J. HIELKEMA
-------------------------
Authorized Officer

                                      -9-
<PAGE>

                                                               ALLEN R. FREEDMAN
                                                              525 County Hwy. 40
                                                        Charlotteville, NY 12038
                                                        Telephone (607) 397-8348
                                                        Facsimile (607) 397-8004

August 2, 2000

Fortis Inc.
One Chase Manhattan Plaza,
41st Floor
New York NY 10005 USA

Fortis Insurance N.V.
Archimedeslaan 6
NL -- 3584 BA UTRECHT

Regarding:  Amendment to Retirement Agreement dated July 19, 1999

Gentlemen:

Paragraph 4 of my Retirement Agreement dated July 19, 1999 provides that I may
defer some or all of my Long Term Incentive Plan earnings but not beyond a
change in control of Fortis Insurance N.V. My SERP, referred to in paragraph 6
of the Retirement Agreement, has been affected by the recent amendment to the
SERP plan to eliminate the provision requiring payment of a lump sum in the
event of a change in control as defined in the SERP plan. I am asking Fortis to
amend my Retirement Agreement with respect to the effect of a change in control
on the deferral of my LTIP benefits referred to in Paragraph 4 and my SERP
benefits referred to in Paragraph 6 in the manner provided in this letter.

If Fortis undergoes a change in control (as determined under the Fortis, Inc.
SERP) and, at any time after such change in control, the market capitalization
of the Person which obtains direct or indirect control of Fortis (or the
successor of such Person) is less than Twenty Billion United States Dollars for
a period of at least five (5) consecutive business days, then Fortis shall
distribute to Freedman or his wife, as appropriate, the amounts due under his
SERP and his LTIP in a lump sum distribution, (i) in the case of the LTIP, no
later than ten (10) days following the date such final determination is made and
in accordance with the terms of the Rabbi Trust, and (ii) in the case of the
SERP, no later than thirty (30) days following the date such final determination
is made. Fortis shall notify Freedman in writing as soon as practicable after a
change in control has occurred. Fortis shall notify Freedman if it becomes aware
that the market capitalization of such Person has fallen below such minimum, or
be liable for any failure to do so.

If the Person that obtains direct or indirect control of Fortis (or the
successor of such Person) is not a business entity whose stock is publicly
traded on an established securities market, then (i) the words "fair market
value" shall be substituted for the words "market capitalization" in the
paragraph above and (ii) if Freedman, his wife or any beneficiary notifies
Fortis in writing that information will not be reasonably available to determine
the fair market value of such Person,

                                      -10-
<PAGE>

then such Person shall be deemed to have a fair market value of less than Twenty
Billion United States Dollars for a period of at least five (5) business days.

This request does not involve any economic cost or hardship to Fortis since the
lump sum amount for the annuity payment is discounted to reflect the earlier
payment and the deferred LTIP amount should be the amount in the Rabbi Trust as
it may change from time to time. Therefore, I would very much appreciate
receiving a signed copy of this letter to confirm this change to my Retirement
Agreement.

Sincerely,

/s/ ALLEN R. FREEDMAN
-----------------------------
Allen R. Freedman

Fortis, Inc.                                         Dated: 8/4/2000

/s/ J. KERRY CLAYTON                                 J. K. Clayton
-----------------------------
Authorized Officer

Fortis Insurance, N.V.                               Dated:  8/21/2000

/s/ H. J. HIELKEMA                                   H. J. Hielkema
-----------------------------
Authorized Officer

                                      -11-

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