Document:

<PAGE>

                                                                   EXHIBIT 10.11

                      INVESTMENT ADMINISTRATION AGREEMENT

     THIS INVESTMENT ADMINISTRATION AGREEMENT (this "Agreement"), dated as of
December 21, 2000, is made by and between FAIRFAX FINANCIAL HOLDINGS LIMITED and
TRANSNATIONAL INSURANCE COMPANY. As used in this Agreement, "we", "us", and
"our" shall refer to TRANSNATIONAL INSURANCE COMPANY, and "you" and "your" shall
refer to FAIRFAX FINANCIAL HOLDINGS LIMITED.

     In consideration of the mutual promises contained herein, the parties agree
as follows:

     1.    We authorize you to provide, and by signing below you agree to
           provide, the investment administration services set forth in Schedule
           A attached hereto, on our behalf and on the terms and conditions set
           out in this Agreement, subject to such guidelines, procedures and
           limitations as may be duly established and approved by our Board of
           Directors or a duly authorized committee of said Board.

     2.    You shall be entitled to such fees, payable quarterly in arrears, for
           the service provided hereunder, as you may specify from time to time.
           Attached hereto as Schedule B is a copy of your current fee schedule
           and you agree to give us thirty (30) days prior written notice of any
           change in such schedule, which change shall require the approval of
           the Connecticut Department of Insurance ("Department"). Such fees
           shall be the exclusive fees and charges payable (excluding third
           party disbursements reasonably incurred) for the services provided
           hereunder. As regards third party services, you will charge us only
           the amount of your actual disbursements paid to third parties for
           such services. We will remit payment to you not later than 15 days
           following delivery to us of a report showing the amount due
           hereunder.

     3.    This Agreement shall be for a term of one year and shall renew
           automatically for an additional term of one year at each annual
           expiration unless either party shall provide to the other written
           notice of its intent not to renew this Agreement not later than 30
           days prior to the expiration of the term. In addition, either party
           hereto may terminate this Agreement without penalty by giving the
           other party at least thirty (30) days advance written notice of its
           desire to terminate the same.

     4.    This Agreement shall enure to the benefit of and shall be binding
           upon the parties hereto and their respective successors. This
           Agreement may not be assigned by either party.

     5.    You and we each acknowledge that the terms of this Agreement are the
           exclusive and conclusive terms of our mutual agreement with regard to
           the subject matter hereof.

     6.    Any dispute or difference arising with reference to the applicable
           interpretation or effect of this Agreement, or any part thereof,
           shall be referred to a Board of Arbitration (the "Board") of two (2)
           arbitrators and an umpire.

        The members of the Board shall be active or retired disinterested
        officers of insurance or reinsurance companies.

        One arbitrator shall be chosen by the party initiating the arbitration
        and designated in the letter requesting arbitration. The other party
        shall respond, within fifteen (15) days, advising of its arbitrator. The
        umpire shall thereafter be chosen by two (2) arbitrators. In the event
        either party fails to designate its arbitrator as indicated above, the
        other party is hereby authorized and empowered to name the second
        arbitrator, and the party which failed to designate its arbitrator shall
        be deemed to have waived its rights to designate an arbitrator and shall
        not be aggrieved thereby. The two (2) arbitrators shall then have thirty
        (30) days within which to choose an umpire. If they are unable to do so
        within thirty (30) days following their appointment, each arbitrator
        shall nominate three candidates within ten (10) days thereafter, two of
        whom the other shall decline, and the decision shall be made by drawing
        lots. In the event of the death, disability or incapacity of an
        arbitrator or the umpire, a replacement
<PAGE>

        shall be named pursuant to the process which resulted in the selection
        of the arbitrator or umpire to be replaced.

        Each party shall submit its case to the Board within one (1) month from
        the date of the appointment of the umpire, but this period of time may
        be extended by unanimous written consent to the Board.

        The sittings of the Board shall take place in Morristown, New Jersey.
        The Board shall make its decision with regards to the custom and usage
        of the insurance and reinsurance business. The Board is released from
        all judicial formalities and may abstain from the strict rules of law.
        The written decision of a majority of the Board shall be rendered within
        sixty (60) days following the termination of the Board's hearings,
        unless the parties consent to an extension. Such majority decision of
        the Board shall be final and binding upon the parties both as to law and
        fact, and may not be appealed to any court of any jurisdiction. Judgment
        may be entered upon the final decision of the Board in any court of
        proper jurisdiction.

     7.    The provisions in Schedule A and Schedule B attached hereto are
           hereby incorporated into, and form part of, this Agreement.

     8.    This Agreement, including the schedules attached hereto and made a
           part hereof, may only be amended by written agreement signed by the
           parties and approved by the Department.

     9.    Unless otherwise specified herein, all notices, instructions, advices
           or other matters covered or contemplated by this Agreement, shall be
           deemed duly given when received in writing (including by fax or other
           similar form of transmission) by you or us, as applicable, at the
           address or fax number first above written or such other address or
           fax number as shall be specified in a notice similarly given:

        If to us:

       Chief Financial Officer
        Transnational Insurance Company
        305 Madison Avenue
        Morristown, New Jersey 07960
       Telecopy Number 973/490-6612

        If to you:

       FAIRFAX FINANCIAL HOLDINGS LIMITED
        95 Wellington Street West
        Suite 800
        Toronto, Ontario
        M5J 2N7
        Fax No.: (416) 367-2201

        Any such notice or communication shall be deemed to have been received
        by any such party if delivered, on the date of delivery, or if sent by
        prepaid registered mail on the fourth business day following mailing
        thereof to the party to whom addressed. For such purpose, no day during
        which there shall be a strike or other occurrence interfering with
        normal mail service shall be considered a business day.

     10.   This Agreement shall be governed and construed in accordance with the
           laws of the State of Connecticut, our state of domicile. Each of the
           parties hereto submits to the jurisdiction of the state and federal
           courts of the State of Connecticut, in any action or proceeding
           arising out of or relating to this Agreement and all claims in
           respect of any such action or proceeding may be heard or determined
           in any such court; and service of process, notices and demands of
           such courts may be made upon you by personal service to the person
           and at the address contained in section 9 as such person or address
           may be changed from time to time.

     11.   You and we and the duly authorized representatives of each of us
           shall, at all reasonable times, each be permitted access to all
           relevant books and records of the other pertaining to this Agreement.
           You and
<PAGE>

           your duly authorized representatives shall provide to the Department,
           within fifteen (15) days of any request from the Department therefor,
           copies of all your books and records as they pertain to us (or any
           portion thereof as may be specifically requested).
<PAGE>

                                   SCHEDULE A

                                    SERVICES

     Tasks underlying the fees to be performed by Fairfax Financial Holdings
Limited are:

MONTHLY

     -- computation of all regulatory figures

     -- analysis and reconciliation of portfolios

     -- yield review

     -- computation of market decline tests

     -- computation of liquidity analysis

     -- analysis of bookvalues, e.g. bond amortizations and investment
        provisions

     -- analysis of gross gain and loss positions

     -- cash flow obligations

     -- investment review meeting

PERIODIC

     -- review and analysis of foreign exchange position

     -- placement of foreign exchange contracts, where appropriate

     -- discussions with regulators regarding portfolio (positions)

     -- reporting to the investment committee

     -- reporting to the audit committee

     -- general assistance with accounting issues

     -- maintaining contact with external auditors

     -- such other administrative services as the parties shall mutually agree
        from time to time
<PAGE>

                                   SCHEDULE B

                                  FEE SCHEDULE

     Fees will be calculated at the end of each calendar quarter based upon the
average of the market value of the funds held in the investment account (the
"Account") governed by the terms of the Investment Management Agreement between
Transnational Insurance Company and Hamblin Wasta Investment Counsel, Ltd.,
dated as of December 21, 2000 at the close of business for the three (3)
preceding months. Charges are stated on a calendar year basis.

<Table>
<Caption>
MARKET VALUE                                                   CHARGE
------------                                                   ------
<S>                                                            <C>
On Total Market Value.......................................    .10%
</Table>

     In the event that the day upon which this Agreement is terminated is a day
other than the first day of a calendar quarter, the fees payable for such
quarter shall be pro-rated and shall be determined having regard to the market
value of the Account based upon the most recent financial report which has been
delivered to Transnational Insurance Company by the Custodian for the Account.

     IN WITNESS WHEREOF, this Agreement is hereby executed by duly authorized
officers of the parties hereto as of the date first written above.

                                        TRANSNATIONAL INSURANCE COMPANY

                                        By:  /s/ MARY JANE ROBERTSON
                                           -------------------------------------
                                           Authorized Signature

                                           Mary Jane Robertson
                                           -------------------------------------
                                           Name of Authorized Signatory

                                        FAIRFAX FINANCIAL HOLDINGS LIMITED

                                        By:  /s/ BRADLEY P. MARTIN
                                           -------------------------------------
                                           Authorized Signature

                                           Bradley P. Martin
                                           -------------------------------------
                                           Name of Authorized Signatory<PAGE>

                                                                   EXHIBIT 10.12

                      INVESTMENT ADMINISTRATION AGREEMENT

     THIS INVESTMENT ADMINISTRATION AGREEMENT (this "Agreement"), dated as of
August 13, 1998, is made by and between FAIRFAX FINANCIAL HOLDINGS LIMITED and
UNITED STATES FIRE INSURANCE COMPANY. As used in this Agreement, "we", "us", and
"our" shall refer to UNITED STATES FIRE INSURANCE COMPANY, and "you" and "your"
shall refer to FAIRFAX FINANCIAL HOLDINGS LIMITED.

     In consideration of the mutual promises contained herein, the parties agree
as follows:

     1.    We authorize you to provide, and by signing below you agree to
           provide, the investment administration services set forth in Schedule
           A attached hereto, on our behalf and on the terms and conditions set
           out in this Agreement, subject to such guidelines, procedures and
           limitations as may be duly established and approved by our Board of
           Directors or a duly authorized committee of said Board.

     2.    You shall be entitled to such fees, payable quarterly in arrears, for
           the service provided hereunder, as you may specify from time to time.
           Attached hereto as Schedule B is a copy of your current fee schedule
           and you agree to give us thirty (30) days prior written notice of any
           change in such schedule, which change shall require the approval of
           the Department. Such fees shall be the exclusive fees and charges
           payable (excluding third party disbursements reasonably incurred) for
           the services provided hereunder. As regards third party services, you
           will charge us only the amount of your actual disbursements paid to
           third parties for such services. We will remit payment to you not
           later than 15 days following delivery to us of a report showing the
           amount due hereunder.

     3.    Either party hereto may terminate this Agreement without penalty by
           giving the other party at least thirty (30) days advance written
           notice of its desire to terminate the same.

     4.    This Agreement shall enure to the benefit of and shall be binding
           upon the parties hereto and their respective successors. This
           Agreement may not be assigned by either party.

     5.    You and we each acknowledge that the terms of this Agreement are the
           exclusive and conclusive terms of our mutual agreement with regard to
           the subject matter hereof.

     6.    Any dispute or difference arising with reference to the applicable
           interpretation or effect of this Agreement, or any part thereof,
           shall be referred to a Board of Arbitration (the "Board") of two (2)
           arbitrators and an umpire.

        The members of the Board shall be active or retired disinterested
        officers of insurance or reinsurance companies.

        One arbitrator shall be chosen by the party initiating the arbitration
        and designated in the letter requesting arbitration. The other party
        shall respond, within fifteen (15) days, advising of its arbitrator. The
        umpire shall thereafter be chosen by two (2) arbitrators. In the event
        either party fails to designate its arbitrator as indicated above, the
        other party is hereby authorized and empowered to name the second
        arbitrator, and the party which failed to designate its arbitrator shall
        be deemed to have waived its rights to designate an arbitrator and shall
        not be aggrieved thereby. The two (2) arbitrators shall then have thirty
        (30) days within which to choose an umpire. If they are unable to do so
        within thirty (30) days following their appointment, each arbitrator
        shall nominate three candidates within ten (10) days thereafter, two of
        whom the other shall decline, and the decision shall be made by drawing
        lots. In the event of the death, disability or incapacity of an
        arbitrator or the umpire, a replacement shall be named pursuant to the
        process which resulted in the selection of the arbitrator or umpire to
        be replaced.

        Each party shall submit its case to the Board within one (1) month from
        the date of the appointment of the umpire, but this period of time may
        be extended by unanimous written consent to the Board.
<PAGE>

        The sittings of the Board shall take place in New York, New York. The
        Board shall make its decision with regards to the custom and usage of
        the insurance and reinsurance business. The Board is released from all
        judicial formalities and may abstain from the strict rules of law. The
        written decision of a majority of the Board shall be rendered within
        sixty (60) days following the termination of the Board's hearings,
        unless the parties consent to an extension. Such majority decision of
        the Board shall be final and binding upon the parties both as to law and
        fact, and may not be appealed to any court of any jurisdiction. Judgment
        may be entered upon the final decision of the Board in any court of
        proper jurisdiction.

     7.    The provisions in Schedule A and Schedule B attached hereto are
           hereby incorporated into, and form part of, this Agreement.

     8.    This Agreement, including the schedules attached hereto and made a
           part hereof, may only be amended by written agreement signed by the
           parties and approved by the Department.

     9.    Unless otherwise specified herein, all notices, instructions, advices
           or other matters covered or contemplated by this Agreement, shall be
           deemed duly given when received in writing (including by fax or other
           similar form of transmission) by you or us, as applicable, at the
           address or fax number first above written or such other address or
           fax number as shall be specified in a notice similarly given:

           If to us:

       Chief Financial Officer
        United States Fire Insurance Company
        305 Madison Avenue
        Morristown, New Jersey 07960
        Telecopy Number 973/490-6612

           If to you:

       FAIRFAX FINANCIAL HOLDINGS LIMITED
        95 Wellington Street West
        Suite 800
        Toronto, Ontario
        M5J 2N7
        Fax No.: (416) 367-2201

        Any such notice or communication shall be deemed to have been received
        by any such party if delivered, on the date of delivery, or if sent by
        prepaid registered mail on the fourth business day following mailing
        thereof to the party to whom addressed. For such purpose, no day during
        which there shall be a strike or other occurrence interfering with
        normal mail service shall be considered a business day.

     10.   This Agreement shall be governed and construed in accordance with the
           laws of the State of New York, our state of domicile. Each of the
           parties hereto submits to the jurisdiction of the state and federal
           courts of the State of New York, in any action or proceeding arising
           out of or relating to this Agreement and all claims in respect of any
           such action or proceeding may be heard or determined in any such
           court; and service of process, notices and demands of such courts may
           be made upon you by personal service to LeBoeuf, Lamb, Greene &
           MacRae, L.L.P., 125 West 55th Street, New York, New York 10019 or by
           mailing copies of such process, notices and demands by certified or
           registered mail to such address (such address being automatically
           changed to the principal office from time to time of LeBoeuf, Lamb
           Greene & MacRae, L.L.P. in New York, New York).

     11.   You and we and the duly authorized representatives of each of us
           shall, at all reasonable times, each be permitted access to all
           relevant books and records of the other pertaining to this Agreement.
           You and your duly authorized representatives shall provide to the
           Department, within fifteen (15) days of any request from the
           Department therefor, copies of all your books and records as they
           pertain to us (or any portion thereof as may be specifically
           requested).
<PAGE>

     IN WITNESS WHEREOF, this Agreement is hereby executed by duly authorized
officers of the parties hereto as of the date first written above.

                                          UNITED STATES FIRE INSURANCE COMPANY

                                          By:  /s/ RICHARD LUTENSKI
                                            ------------------------------------
                                            Authorized Signature

                                            Richard Lutenski
                                            ------------------------------------
                                            Name of Authorized Signatory

                                          By:  /s/ VALERIE J. GASPARIK
                                            ------------------------------------
                                            Authorized Signature

                                            Valerie J. Gasparik
                                            ------------------------------------
                                            Name of Authorized Signatory

                                          FAIRFAX FINANCIAL HOLDINGS LIMITED

                                          By:  /s/ BRADLEY P. MARTIN
                                            ------------------------------------
                                            Authorized Signature

                                            Bradley P. Martin
                                            ------------------------------------
                                            Name of Authorized Signatory
<PAGE>

                                   SCHEDULE A
                                    SERVICES

     Tasks underlying the fees to be performed by Fairfax Financial Holdings
Limited are:

MONTHLY

--  computation of all regulatory figures

--  analysis and reconciliation of portfolios

--  yield review

--  computation of market decline tests

--  computation of liquidity analysis

--  analysis of bookvalues, e.g. bond amortizations and investment provisions

--  analysis of gross gain and loss positions

--  cash flow obligations

--  investment review meeting

PERIODIC

--  review and analysis of foreign exchange position

--  placement of foreign exchange contracts, where appropriate

--  discussions with regulators regarding portfolio (positions)

--  reporting to the investment committee

--  reporting to the audit committee

--  general assistance with accounting issues

--  maintaining contact with external auditors

--  such other administrative services as the parties shall mutually agree from
    time to time
<PAGE>

                                   SCHEDULE B
                                  FEE SCHEDULE

     Fees will be calculated at the end of each calendar quarter based upon the
average of the market value of the funds held in the investment account (the
"Account") governed by the terms of the Investment Management Agreement between
United States Fire Insurance Company and Hamblin Wasta Investment Counsel, Ltd.,
dated as of August 13, 1998 at the close of business for the three (3) preceding
months. Charges are stated on a calendar year basis.

<Table>
<Caption>
MARKET VALUE                                                    CHARGE
------------                                                    ------
<S>                                                             <C>
On Total Market Value.......................................     .10%
</Table>

     In the event that the day upon which this Agreement is terminated is a day
other than the first day of a calendar quarter, the fees payable for such
quarter shall be pro-rated and shall be determined having regard to the market
value of the Account based upon the most recent financial report which has been
delivered to United States Fire Insurance Company by the Custodian for the
Account.

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