Document:

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                                                                   Exhibit 10.23

                                   QUOTA SHARE
                              REINSURANCE AGREEMENT

                  (HEREINAFTER REFERRED TO AS THE "AGREEMENT")

                                     BETWEEN

                       TOWER INSURANCE COMPANY OF NEW YORK
                               NEW YORK, NEW YORK

                   (HEREINAFTER REFERRED TO AS THE "COMPANY")

                                       AND

          THE REINSURERS SUBSCRIBING THEIR RESPECTIVE INTERESTS AND
                     LIABILITES AGREEMENTS ATTACHED HERETO

                  (HEREINAFTER REFERRED TO AS THE "REINSURERS")

                                    ARTICLE 1

BUSINESS COVERED

This Agreement shall indemnify the Company in respect of the net excess
liability as herein provided and specified which may accrue to the Company as a
result of Ultimate Net Loss and Loss Adjustment Expenses subject to this
Agreement, under Policies written by the Company and classified as Property or
Liability, following the Company's original Policies, including: Fire and Allied
Lines, Commercial Multiple Peril, Homeowners Multiple Peril and Liability,
Workers' Compensation, Inland Marine and Automobile Liability and Physical
Damage, all subject to the terms, conditions and exclusions of this Agreement.

                                    ARTICLE 2

FOLLOW THE FORTUNES

The Reinsurers' liability shall attach simultaneously with that of the Company
and shall be subject in all respects to the same risks, terms, conditions,
interpretations, waivers and to the same modifications, alterations, and
cancellations as the respective Policies issued by the Company, the true intent
of this Agreement being that the Reinsurers shall, in every case to which this
Agreement applies, follow the fortunes of the Company, subject always to the
limits, terms, conditions and exclusions set forth in this Agreement.

                                       1
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                                    ARTICLE 3

TERM

A.       This Agreement shall take effect 12:01 a.m., Eastern Standard Time,
         January 1, 2004 and shall apply to all losses occurring on or after
         12:01 a.m., Eastern Standard Time, January 1, 2004 in respect of all
         new and renewal Policies written on and after 12:01 a.m., Eastern
         Standard Time, January 1, 2004 until 12:01 a.m., Eastern Standard Time,
         January 1, 2005.

         At 12:01 a.m., Eastern Standard Time, January 1, 2005, the Reinsurers
         shall be liable for all losses occurring in respect of all inforce
         Policies until the earlier of the expiration or the anniversary date of
         the Company's Policies, but not to exceed 12 (twelve) months plus odd
         time. In the event that any Policy is required by statute or regulation
         or order to be continued in force, the Reinsurers will continue to
         remain liable with respect to each such Policy until the Company may
         legally cancel, non-renew or otherwise eliminate liability under such
         Policy.

B.       The Company and the Reinsurers may agree to terminate this Agreement or
         some portion of the Business Covered on a cut-off basis. Upon such
         termination, the Reinsurers shall incur no liability for losses
         occurring subsequent to the effective date of termination and the
         Reinsurers shall return to the Company the Reinsurers' portion of the
         unearned premium reserve for all inforce Policies less previously paid
         Ceding Commissions on such unearned premium reserve.

                                    ARTICLE 4

TERRITORY

In respect of Business Covered by the Company, this Agreement shall apply to New
York, New Jersey, Pennsylvania and Connecticut.

To the extent that the Company becomes authorized to transact insurance in any
jurisdiction in addition to those set forth above, the Company may request that
the Reinsurers amend this Agreement to include Policies issued in such
jurisdictions. With respect to Policies issued in New Jersey, Pennsylvania and
Connecticut ("Non-New York Policies"), the maximum overall New Written Premium
that may be ceded by the Company to this Agreement shall be 10% (ten percent) of
Net Written Premium in the aggregate for these states (the "Premium Cap"). To
the extent that the Company's overall Net Written Premium for Non-New York
Policies exceeds the Premium Cap, the Cession Percentage for Non-New York
Policies shall be adjusted by dividing 10% (ten percent) of Net Written Premium
by the actual percentage of Net Written Premium and multiplying that result by
the Cession Percentage elected in the Article 7, Definitions, definition A.

                                       2
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                                    ARTICLE 5

EXCLUSIONS

This Agreement shall not apply to and specifically excludes:

A.       Nuclear Incident, in accordance with the following clauses attached
         hereto:

         1.       Nuclear Incident Exclusion Clause - Physical Damage -
                  Reinsurance - U.S.A. - NMA 1119;

         2.       Nuclear Incident Exclusion Clause - Liability - Reinsurance -
                  U.S.A. - NMA 1590;

B.       War Risks, in accordance with the War Risks Exclusion Clause attached
         hereto;

C.       Insolvency, in accordance with the Insolvency Funds Exclusion Clause
         attached hereto;

D.       Liability assumed by the Company as a member of any pool, association
         or syndicate, in accordance with the Pools, Associations and Syndicates
         Exclusion Clause attached hereto;

E.       Earthquake, when written as such;

F.       Liability arising out of ownership, maintenance or use of any aircraft
         or flight operations;

G.       Professional Liability, when written as such, however not to exclude
         when written as part of a package Policy or when written in conjunction
         with other Policies issued by the Company;

H.       Insolvency and Financial Guarantee;

I.       Any acquisitions of companies or books of business outside of the
         normal course of business ("agent rollovers") without the prior written
         consent of the Reinsurers hereon;

J.       Asbestos liabilities of any nature;

K.       Pollution liabilities of any nature;

L.       Assumed reinsurance with the exception of inter-affiliate reinsurance;

M.       Ex gratia payments in excess of $3,000 (three thousand dollars).

                                       3
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                                    ARTICLE 6

COVERAGE, RETENTION, PER RISK-PER LOSS OCCURRENCE LIMITS AND AGGREGATE LIMIT

A.       Coverage - The Reinsurers shall indemnify the Company for the Cession
         Percentage of the net retained liability of the Company for all
         Ultimate Net Loss and Loss Adjustment Expenses billed by in-house
         adjusters, defense attorneys, and other claims personnel of Tower
         Insurance Company of New York/Tower Risk Management who bill the
         Company for their services on an hourly basis, subject to the terms,
         conditions, and exclusions of this Agreement, the Retention, Per Risk -
         Per Loss Occurrence Limits and the Aggregate Limit hereon. The
         Reinsurers shall only be obligated to indemnify the Company for
         underlying Policies where the Reinsurers has been paid respective
         premiums for such underlying Policies by the Company.

B.       Retention - The Company shall retain net and unreinsured such portion
         of all Ultimate Net Loss in respect of the first 95.0% (ninety five
         point zero percent) of Ultimate Net Loss Ratio as shall equal 100% (one
         hundred percent) less the Cession Percentage and shall retain 100% (one
         hundred percent) of Ultimate Net Loss in excess of the first 95.0%
         (ninety five point zero percent) of Ultimate Net Loss Ratio.

C.       Per Risk - Per Loss Occurrence Limits - In no event shall the
         Reinsurers' limit of liability exceed its pro rata share of $1,000,000
         (one million dollars) per risk, per Loss Occurrence in respect of
         property business and $1,000,000 (one million dollars) per Loss
         Occurrence for liability business. In addition, in no event shall the
         Reinsurers' aggregate limit of liability exceed 10% (ten percent) of
         Reinsurance Premium earned for the Term in respect of any one Loss
         Occurrence in respect of ceded property catastrophe Ultimate Net Loss
         plus associated Loss Adjustment Expenses. Furthermore, in no event
         shall the Reinsurers' aggregate limit of liability exceed 10% (ten
         percent) of Reinsurance Premium earned for the Term in respect of the
         combined amounts of property and casualty Ultimate Net Loss plus
         associated Loss Adjustment Expenses emanating from Terrorist Acts
         whether one or multiple Terrorist Acts.

D.       Aggregate Limit- The Reinsurers' maximum overall aggregate Ultimate Net
         Loss and Loss Adjustment Expense liability under this Agreement shall
         be 95.0% (ninety five point zero percent) of ultimate Reinsurance
         Premium earned by the Reinsurers.

                                    ARTICLE 7

DEFINITIONS

A.       "Cession Percentage" as used in this Agreement shall be 60% (sixty
         percent) for the new and renewal Business Covered written during the
         period January 1, 2004 through December 31, 2004, both days inclusive.
         However, the Cession Percentage may be reduced to a minimum cession
         percentage of 25% (twenty five percent) for each quarter starting with
         the calendar quarter beginning July 1, 2004 and only if the Company has
         increased its December 31, 2003 Statutory Surplus Level by more than
         20% (twenty percent) on or before June 30, 2004. The Company must
         advise the Reinsurers, with 30 (thirty) days advance written notice, of
         its election to reduce the Cession Percentage for the forthcoming
         quarter.

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B.       "Declaratory Judgment Expenses" as used in this Agreement shall mean
         legal expenses paid by the Company in the investigation, analysis,
         evaluation or litigation of a coverage action between the Company and
         any other party to determine if there is coverage under a Policy or
         Policies issued by the Company for a specific claim or specific claims
         reinsured under this Agreement or which would be reinsured under this
         Agreement had the Company not been successful in the coverage action.

C.       "Loss Adjustment Expenses" as used in this Agreement shall mean all
         costs and expenses allocable to a specific claim that are incurred by
         the Company in the investigation, appraisal, adjustment, settlement,
         litigation, defense or appeal of a specific claim, including court
         costs and costs of supersedeas and appeal bonds and including a)
         pre-judgment interest, unless included as part of the award or
         judgment; b) post-judgment interest and c) legal expenses and costs
         incurred in connection with coverage questions and legal actions
         connected thereto, including pro rata Declaratory Judgment Expenses.

         Loss Adjustment Expenses shall include in-house adjusters, defense
         attorneys, and other claims personnel of Tower Insurance Company of New
         York/Tower Risk Management who bill the Company for their services on
         an hourly basis.

D.       "Loss Occurrence" shall have the following meanings:

         1.       As respects property losses, "Loss Occurrence" shall mean the
                  sum of all individual losses directly occasioned by any one
                  disaster, accident or loss or series of disasters, accidents
                  or losses arising out of one event which occurs within the
                  area of one state of the United States or province of Canada
                  and states or provinces contiguous thereto and to one another.
                  However, the duration and extent of any one "Loss Occurrence"
                  shall be limited to all individual losses sustained by the
                  Company occurring during any period of 168 (one hundred sixty
                  eight) consecutive hours arising out of and directly
                  occasioned by the same event except that the term "Loss
                  Occurrence" shall be further defined as follows:

                  a.  As regards windstorm, hail, tornado, hurricane, cyclone,
                      including ensuing collapse and water damage, all
                      individual losses sustained by the Company occurring
                      during any period of 72 (seventy two) consecutive hours
                      arising out of and directly occasioned by the same event.
                      However, the event need not be limited to one state or
                      province or states or provinces contiguous thereto.

                  b.  As regards riot, riot attending a strike, civil commotion,
                      vandalism and malicious mischief, all individual losses
                      sustained by the Company occurring during any period of 72
                      (seventy two) consecutive hours within the area of one
                      municipality or county and the municipalities or counties
                      contiguous thereto arising out of and directly occasioned
                      by the same event. The maximum duration of 72 (seventy
                      two) consecutive hours may be extended in respect of
                      individual losses which occur beyond such 72 (seventy two)
                      consecutive hours during the continued occupation of an
                      assured's premises by strikers, provided such occupation
                      commenced during the aforesaid period.

                                       5
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                  c.  As regards earthquake (the epicenter of which need not
                      necessarily be within the territorial confines referred to
                      in the opening paragraph of this article) and fire
                      following directly occasioned by the earthquake, only
                      those individual fire losses which commence during the
                      period of 168 (one hundred sixty eight) consecutive hours
                      may be included in the Company's "Loss Occurrence".

                  d.  As regards "Freeze", only individual losses directly
                      occasioned by collapse, breakage of glass and water damage
                      (caused by bursting of frozen pipes and tanks) may be
                      included in the Company's "Loss Occurrence".

                  For all "Loss Occurrences" the Company may choose the date and
                  time when any such period of consecutive hours commences
                  provided that it is not earlier than the date and time of the
                  occurrence of the first recorded individual loss sustained by
                  the Company arising out of that disaster, accident or loss and
                  provided that only one such period of 168 (one hundred sixty
                  eight) consecutive hours shall apply with respect to one event
                  except for those "Loss Occurrences" referred to in
                  sub-paragraphs 1 and 2 of this Article where only one such
                  period of 72 (seventy two) consecutive hours shall apply with
                  respect to one event.

                  No individual losses occasioned by an event that would be
                  covered by 72 (seventy two) hours clauses may be included in
                  any "Loss Occurrence" claimed under the 168 (one hundred sixty
                  eight) hours provision.

         2.       As respects casualty losses, "Loss Occurrence" shall mean any
                  one accident, disaster, casualty or happening, or series of
                  accidents, disasters, casualties or happenings arising out of
                  or following on one event, regardless of the number of
                  interests insured or the number of Policies responding.

                  Except where specifically provided otherwise in this
                  Agreement, each Loss Occurrence shall be deemed to take place
                  as of the earliest date of loss as determined by any original
                  Policy responding to the Loss Occurrence.

         3.       As respects liability losses (bodily injury and property
                  damage) other than Automobile and Products, and at the option
                  of the Company, "Loss Occurrence" shall mean the sum of all
                  damages sustained by each insured during a period of twelve
                  consecutive months arising out of a continuous or repeated
                  injurious exposure to substantially the same general
                  conditions. For purposes of this definition, the date of loss
                  shall be deemed to be the inception or renewal date of the
                  original Policy of insurance to which payment is charged.

                                       6
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         As respects occupational disease and cumulative trauma:

                  a.       In case the Company shall, within one original Policy
                           year, sustain several losses arising out of such and
                           occupational or other disease or cumulative trauma of
                           a specific kind or class, suffered by several
                           employees of one original insured, all such losses
                           shall be deemed to arise out of one `occurrence' and
                           the date of the occurrence for reinsurance purposes
                           shall be deemed to be the inception, anniversary or
                           renewal date of the Company's original Policy.

                  b.       With respect to an occupational disease or other
                           disease suffered by more than one employee of one or
                           more employers, such occupational disease or other
                           disease shall be covered under this Agreement if
                           resulting from a sudden and accidental event not
                           exceeding 48 (forty eight) hours in duration. For
                           purposes of this Agreement, a 48 (forty eight) hour
                           event will be deemed as one Loss Occurrence. All such
                           losses subsequently arising out of such event and not
                           otherwise classified except as occupational disease
                           or other disease shall be considered as one Loss
                           Occurrence or may be combined with losses classified
                           as other than occupational disease or other disease
                           which arise out of the same event, and the
                           combination of such losses shall be considered as one
                           Loss Occurrence within the meaning hereof.

E.       "Net Earned Premium" shall mean the Net Written Premium of the
         Company's Business Covered less the unearned premium reserve at the
         respective date of calculation.

F.       "Net Written Premium" shall mean gross premium of the Company's
         Business Covered less cancellations and returns and less premium paid
         for specific excess of loss reinsurance above $1,000,000 (one million
         dollars) and facultative reinsurances, if any.

G.       "Policy" or "Policies" shall mean all policies, binders, contracts,
         certificates, or agreements of insurance, whether written or oral, in
         accordance with Business Covered hereunder.

H.       "Terrorist Acts" shall mean any act, or preparation in respect of
         action, or threat of action designed to influence the government de
         jure or de facto of any nation or any political division thereof, or in
         pursuit of political, religious, ideological, or similar purposes to
         intimidate the public or a section of the public of any nation by any
         person or group(s) of persons whether acting alone or on behalf of or
         in connection with any organization(s) or government(s) de jure or de
         facto, and which:

         (i)      involves violence against one or more persons; or

         (ii)     involves damage to property; or

         (iii)    endangers life other than that of the person committing the
                  action; or

         (iv)     creates a risk to health or safety of the public or a section
                  of the public; or

         (v)      is designed to interfere with or to disrupt an electronic
                  system.

                                       7
<PAGE>

         Loss, damage, cost or expense arising out of or in connection with any
         action in controlling, preventing, suppressing, retaliating against, or
         responding to any act of terrorism shall be considered part of
         terrorism Ultimate Net Loss.

I.       "Ultimate Net Loss" shall mean, subject to all limitations in this
         Agreement including the Per Risk - Per Loss Occurrence Limits in
         Article 6, Coverage, Retention, Per Risk-Per Loss Occurrence Limits and
         Aggregate Limit, section C, actual loss or losses, arising out of
         Business Covered hereunder sustained by the Company in respect of
         losses occurring during the Term, including 100% (one hundred percent)
         of Extra Contractual Obligations and 100% (one hundred percent) of
         Excess Policy Limits, subject to the limitations in Article 19, Excess
         Policy Limits and Article 20, Extra Contractual Obligations, after
         making deductions for all recoveries and salvages and inuring specific
         and facultative reinsurance, whether collectible or not. The Reinsurers
         shall not be liable for more than $1,000,000 (one million dollars)
         additional subject Ultimate Net Loss for any one claim in respect of
         Excess of Policy Limits/Extra Contractual Obligations liability and
         $5,000,000 (five million dollars) in the aggregate for all Excess of
         Policy Limits/Extra Contractual Obligations liability.

J.       "Ultimate Net Loss Ratio" shall mean the ratio of aggregate Ultimate
         Net Losses incurred plus aggregate Loss Adjustment Expenses divided by
         Net Earned Premium as of the date of calculation.

                                    ARTICLE 8

NET RETAINED LINES

This Agreement applies only to that portion of Business Covered which the
Company retains net for its own account, and in calculating the amount of any
Ultimate Net Loss and Loss Adjustment Expenses hereunder and also in computing
the amounts in Article 6, Coverage, Retention, Per Risk-Per Loss Occurrence
Limits and Aggregate Limit, to which this Agreement applies, only Ultimate Net
Loss and Loss Adjustment Expenses in respect of that portion of Business Covered
which the Company retains net for its own account shall be included. The Company
warrants that it will have a maximum net retained line in accordance with
Article 6, Coverage, Per Risk-Per Loss Occurrence Limits and Aggregate Limit for
any one risk.

Recoveries from any form of insurance or reinsurance that protects the Company
against claims which are Subject Business shall inure to the benefit of the
Reinsurers and shall be deducted to arrive at the amount of the Company's
Ultimate Net Loss and Loss Adjustment Expenses.

The amount of the Reinsurers' liability hereunder in respect of any Ultimate Net
Loss and Loss Adjustment Expenses shall not be increased by reason of the
inability of the Company to collect from any other reinsurer, whether specific
or general, any amounts which may have become due from such reinsurer, whether
such inability arises from the insolvency of such reinsurer or otherwise.

                                       8
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                                    ARTICLE 9

REINSURANCE PREMIUM AND REINSURERS' MARGIN

A.       Reinsurance Premium - The Company shall pay to the Reinsurers the
         Cession Percentage of the Net Written Premium as collected for the Term
         of the Agreement (the "Reinsurance Premium"). The Company shall retain
         any and all Reinsurance Premium on a funds withheld basis. A notional
         Funds Withheld Account/Profit Sharing Account shall be calculated by
         the Company and maintained until there is a complete and final release
         of all the Reinsurers' past, present and future obligations and
         liabilities to the Company of any nature whatsoever arising under or
         related to this Agreement. The Company shall credit Net Written Premium
         to the Funds Withheld Account/Profit Sharing Account on a monthly
         basis, and settlements shall be made in accordance with Article 13,
         Accounts, Remittances and Loss Settlements.

         Notwithstanding any provision in this Agreement to the contrary, the
         Company shall assume 100% of the credit risk associated with all
         Reinsurance Premium amounts that it fails to collect from its insureds
         ("Delinquent Premium Amounts"). The Company shall include all
         Delinquent Premium Amounts in the Reinsurance Premium amounts that it
         pays the Reinsurers (or credits to the Funds Withheld Account/Profit
         Sharing Account, as applicable) on a monthly basis pursuant to Article
         13, Accounts, Remittances and Loss Settlements, section C.

         The Company shall have the option, subject to the Reinsurers' consent,
         to terminate this Agreement on a cut-off basis. If the Company elects,
         and the Reinsurers consents, to terminate this Agreement on a cut-off
         basis, in accordance with Article 3, Term, then the Reinsurers shall
         return to the Company the respective unearned premium less previously
         paid Reinsurers' Margin and Ceding Commissions on such unearned
         premium.

         The maximum overall Net Written Premium for this Agreement shall be
         $200,000,000 (two hundred million dollars) or so deemed. The maximum
         overall ceded Net Written Premium shall be $120,000,000 (one hundred
         twenty million dollars) (the "Aggregate Premium Cap"). To the extent
         the Company's overall ceded Net Written Premium exceeds the Aggregate
         Premium Cap, the Cession Percentage shall be reduced by dividing
         $200,000,000 (two hundred million dollars) by the actual Net Written
         Premium and multiplying that result by the Cession Percentage elected
         in Article 6, Coverage, Retention, Per Risk-Per Occurrence Limits and
         Aggregate Limit.

B.       Reinsurers' Margin - The Company shall pay to the Reinsurers a
         Reinsurers' Margin equal to 8.0% (eight point zero percent) of
         Reinsurance Premium. The Company shall pay the Reinsurers the full
         amount of the Reinsurers' Margin due each month on the date when
         Reinsurance Premium is reported each month. The Company shall effect
         payment of the Reinsurers' Margin due each month by direct wire
         transfer to the Intermediary to pay the Reinsurers.

                                       9
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         In the event the Company fails to pay the full amount of any
         Reinsurers' Margin due within 30 (thirty) business days of the payment
         due date, the Reinsurers shall provide the Company with a written
         demand for such outstanding Reinsurers' Margin. The Company shall have
         an additional 45 (forty five) days from the date the Reinsurers
         provides the written demand in which to pay to the Reinsurers the
         outstanding Reinsurers' Margin (the "Cure Period"). If the Company
         fails to pay the full amount of any Reinsurers' Margin by the end of
         the Cure Period, this Agreement shall be cancelled retroactively for
         nonpayment of premium, effective as of the date of the last day of the
         month preceding for which the Reinsurers received actual payment of its
         Reinsurers' Margin and the Reinsurers shall incur no liability for
         losses occurring subsequent to the effective date of cancellation.

                                   ARTICLE 10

CEDING COMMISSION

The Reinsurers shall allow the Company a provisional Ceding Commission equal to
39.1% (thirty nine point one percent) of the Reinsurance Premium hereon. The
provisional Ceding Commission shall be debited/credited, as applicable, to/from
the Funds Withheld Account/Profit Sharing Account as Reinsurance Premiums are
settled monthly and adjusted as the Ultimate Net Loss Ratio is re-determined
quarterly.

The first adjustment of Actual Ceding Commission for purposes of crediting the
interest due and owing to the Funds Withheld Account/Profit Sharing Account
shall be calculated no later than February 28, 2005 for the quarter ended
December 31, 2004. Thereafter the Actual Ceding Commission shall be recalculated
each quarter and based upon the Ultimate Net Loss Ratio re-determined each
quarter, in accordance with the following table which Ceding Commission may be
reduced by the provisions in Article 12, Trust Account:

<TABLE>
<CAPTION>
                                    Ceding Commission Rate                   Ultimate Net Loss Ratio
                                    ----------------------                   -----------------------

<S>                                         <C>                                    <C>
         Maximum                            48.1%                                  47.0% or Lower
                                                              .9 for 1
         Provisional                        39.1%                                  57.0%
                                                              .9 for 1
         Minimum                            29.2%                                  68.0% or Higher
</TABLE>

         If the Ultimate Net Loss Ratio exceeds 47.0% (forty seven point zero
         percent), the Ceding Commission shall be reduced .9% (point nine
         percent) and any portion thereof for each 1% (one percent) and any
         portion thereof that the Ultimate Net Loss Ratio exceeds 47.0% (forty
         seven point zero percent), down to a Ceding Commission of 39.1% (thirty
         nine point one percent) at a 57% (fifty seven percent) Ultimate Net
         Loss Ratio. If the Ultimate Net Loss Ratio exceeds 57% (fifty seven
         percent), the Ceding Commission shall be reduced .9% (point nine
         percent) and any portion thereof for each 1% (one percent) and any
         portion thereof that the Ultimate Net Loss Ratio exceeds 57% (fifty
         five percent), subject to a minimum Ceding Commission of 29.2% (twenty
         nine point two percent) at a 68.0% (sixty eight point zero percent) or
         higher Ultimate Net Loss Ratio.

                                       10
<PAGE>

         Beginning with the calendar quarter ending March 31, 2005, any
         adjustments to Ceding Commission shall result in a special interest
         credit calculation from the time of adjustment back to December 31,
         2004 at the annual Interest Credit of 2.5% (two point five percent).
         Such special interest credit shall be debited or credited, as
         applicable, to or from the Funds Withheld Account/Profit Sharing
         Account at the time of calculation.

The Reinsurers shall remain liable for payment of Ceding Commission whether or
not the Funds Withheld Account/Profit Sharing Account becomes depleted.

                                   ARTICLE 11

FUNDS WITHHELD ACCOUNT/PROFIT SHARING ACCOUNT AND INTEREST CREDIT

A.       Funds Withheld Account/Profit Sharing Account - For purposes of this
         Agreement, the Company shall establish on its books and maintain a
         cumulative Funds Withheld Account/Profit Sharing Account comprised of
         the following:

         1.       The Funds Withheld Account/Profit Sharing Account at December
                  31, 2003 shall be equal to $0 (zero dollars);

         2.       The Funds Withheld Account/Profit Sharing Account at each
                  subsequent month end shall be comprised of the following
                  cumulative amounts:

                  a)       The Funds Withheld Account/Profit Sharing Account at
                           the end of the prior month; plus

                  b)       Reinsurance Premium paid by the Company for such
                           month; less

                  c)       Ceding Commission for such month, when paid by the
                           Reinsurers, excluding the Return Ceding Commission as
                           per Article 12, Trust Account; plus or less (as
                           applicable)

                  d)       Special interest credit adjustments on Ceding
                           Commission Adjustments for such month; less

                  e)       Reinsurers' Margin for such month; less

                  f)       Ceded Ultimate Net Losses and Loss Adjustment
                           Expenses paid by the Reinsurers for such month; plus

                  g)       Interest Credit for such month.

                                       11
<PAGE>

         The Company shall determine and report the balance and activity of the
         Funds Withheld Account/Profit Sharing Account monthly within 45 (forty
         five) days of the month end.

B.       Interest Credit - The Funds Withheld Account/Profit Sharing Account
         shall be credited monthly, as of the end of the each month, with an
         Interest Credit rate equal to .206% (point two zero six percent)
         multiplied by the beginning monthly balance of the Funds Withheld
         Account/Profit Sharing Account for the respective month, to achieve an
         annual effective yield of 2.5% (two point five percent). In calculating
         the beginning monthly balance, all amounts due to either party shall be
         deemed settled, effective as of the actual date when such items were
         due pursuant to the terms of this Agreement in accordance with Article
         13, Accounts, Remittances and Loss Settlements.

         Interest Credit shall continue even in the event of the Company's
         insolvency.

                                   ARTICLE 12

TRUST ACCOUNT

The Company shall establish a segregated account (the "Segregated Account")
pursuant to a Segregated Account Trust Agreement acceptable to the Reinsurers
and maintain in such account assets with a market value equal to the balance of
the Funds Withheld Account/Profit Sharing Account. The Company shall deposit to
the Segregated Account Reinsurance Premium less provisional Ceding Commission,
plus downward adjustments of the provisional ceding commission, less Reinsurers'
Margin, all as contractually due hereunder. The Company shall be permitted to
withdraw assets from the Segregated Account for the following purposes only:
payment of Ceding Commission adjustments and ceded paid portion of Ultimate Net
Loss and Loss Adjustment Expense amounts when contractually due from the
Reinsurers. The Company shall be liable for all of the expenses arising out of
the Trust Account, including but not limited to, all expenses incurred by the
Trustee in administering the Trust Account and all compensation payable to the
Trustee (collectively, the "Trust Expenses").

If the market value of the assets in the Segregated Account at any calendar
quarter end is less than the Funds Withheld Account/Profit Sharing Account
balance at such calendar quarter end, the Company shall deposit assets to
achieve the required Funds Withheld Account/Profit Sharing Account balance at
such quarter end. If the market value of assets in the Segregated Account at any
calendar quarter end exceeds the balance of the Funds Withheld Account/Profit
Sharing Account at such calendar quarter end, such excess amount shall remain in
the Funds Withheld Account/Profit Sharing Account.

Within 60 (sixty) days of each calendar quarter end, beginning with the quarter
ending March 31, 2004, if the Company fails to maintain the Segregated Account
equal to the Funds Withheld Account/Profit Sharing Account required level, then
the cumulative amount of the shortfall shall be deemed "Return Ceding
Commission" due the Reinsurers. Such actual amount shall be paid in cash by the
Company to the Reinsurers within 60 (sixty) days of the respective calendar
quarter end to reduce the Ceding Commission that otherwise would have been due
at the respective Ultimate Net Loss Ratio as per the Ceding Commission table in
Article 10, Ceding Commission. The Company shall calculate the cumulative
shortfall, if any, and re-determine the Return Ceding Commission due, within 60
(sixty) days of each subsequent calendar quarter end until all liability under
this Agreement is finalized. The Company shall pay to the Reinsurers any
additional Return Ceding Commission due in excess of any previously paid Return
Ceding Commission and the Reinsurers shall pay to the Company any reduction of
Return Ceding Commission due over the previously paid Return Ceding Commission
within 60 (sixty) days of the calendar quarter end.

                                       12
<PAGE>

Upon the occurrence of a Triggering Event, the Company shall, at the Reinsurers'
sole option, withdraw all assets from the Segregated Account and transfer such
assets to a New York Regulation No. 114 compliant Trust Account established by
the Reinsurers. Notwithstanding the above, the Company is required to deposit
additional assets into such Trust Account to guarantee an investment return
equivalent to the .206% (point two zero six percent) monthly yield.

A "Triggering Event" is any of the following:

         1.       A.M. Best Rating of the Company falls below B+; or

         2.       a reduction of more than 20% (twenty percent) of the Company's
                  statutory surplus from the Company's statutory surplus level
                  at December 31, 2003; or

         3.       Insolvency, Rehabilitation, or Regulatory Supervision of the
                  Company; or

         4.       Company ceases underwriting new property and casualty
                  business;

         5.       Company fails to maintain the Trust Account at the minimum
                  balance required by this Agreement for a period of 75 (seventy
                  five) days;

         6.       Company sells 50% (fifty percent) or more of its assets or
                  reinsures 50% (fifty percent) or more of its Net Written
                  Premium or net liabilities (all as of January 1, 2004) to an
                  unaffiliated third party; or

         7.       An insurance regulatory authority or governmental entity in
                  any United States jurisdiction revokes, suspends or forces the
                  Company to withdraw its certificate of authority in such
                  jurisdiction

         8.       Company fails to pay Reinsurers' Margin in accordance with
                  Article 9, Reinsurance Premium and Reinsurers' Margin, section
                  B.

                                       13
<PAGE>

                                   ARTICLE 13

ACCOUNTS, REMITTANCES AND LOSS SETTLEMENTS

A.       Within 45 (forty five) days following the end of each month, the
         Company shall report to the Reinsurers the amount of the following with
         regards to such month and on a cumulative basis:

         1.       Net Written Premium and ceded Net Written Premium by line of
                  business;

         2.       Net Earned Premium and ceded Net Earned Premium by line of
                  business;

         3.       Ceding Commissions paid and unpaid;

         4.       Ceded Ultimate Net Loss and Loss Adjustment Expenses paid by
                  line of business;

         5.       Ceded Ultimate Net Loss and Loss Adjustment Expenses
                  outstanding by line of business (including IBNR);

         6.       Salvage recovered and ceded Salvage recovered by line of
                  business;

         7.       Premium amounts calculated in accordance with Article 9,
                  Reinsurance Premium and Reinsurers' Margin, including
                  applicable Reinsurers' Margin;

         8.       The balance of the Funds Withheld Account/Profit Sharing
                  Account as of that month end and activity in the Funds
                  Withheld Account/Profit Sharing Account during the month.

         9.       Ceded Net Written Premium and Ceded Net Earned Premium, Ceded
                  Ultimate Net Loss and Loss Adjustment Expenses paid and Ceded
                  Ultimate Net Loss and Loss Adjustment Expenses outstanding
                  (including IBNR) specifically allocable to Non-New York
                  Policies.

         Reports shall continue until the earlier of final settlement of all
         Ultimate Net Loss hereunder, or upon Commutation in accordance with
         Article 14, Commutation.

B.       In the event the Company fails to furnish the Reinsurers complete
         reports containing the information and data specified in this
         Agreement, within 45 (forty five) days after the end of the month, the
         Company shall have an additional 45 (forty five) days in which to
         furnish such reports to the Reinsurers (the "Cure Period"). Such Cure
         Period shall commence on the date that the Reinsurers provide the
         Company with a written demand for such outstanding reports. If the
         Company fails to provide such reports to the Reinsurers by the end of
         the Cure Period, the Company shall pay an interest penalty to the
         Reinsurers, utilizing an annual percentage rate of 200 (two hundred)
         basis points, that shall be applied to the cumulative amount of all
         payments/credits to the Funds Withheld Account/Profit Sharing Account
         that would have been set forth in the outstanding report. The interest
         penalty shall be calculated from the date such outstanding report was
         originally contractually due until the date of Reinsurers' actual
         receipt of the outstanding report. The interest penalty shall be in
         addition to the normal Interest Credit that is applied to the Funds
         Withheld Account/Profit Sharing Account in accordance with the Article
         11, Funds Withheld Account/Profit Sharing Account and Interest Credit,
         section B. of this Agreement. The Company shall pay the Reinsurers the
         interest penalty in cash by direct wire transfer to the Intermediary to
         pay the Reinsurers and such interest penalty amount shall not be
         credited to the Funds Withheld Account/Profit Sharing Account.

                                       14
<PAGE>

C.       The Company shall credit or debit the Funds Withheld Account/Profit
         Sharing Account by the amount of the balance of the monthly account.
         Such monthly account shall equal the Cession Percentage of Net Written
         Premiums collected for new and renewal business for the month, less
         Reinsurer's Margin due for the month, less applicable Ceding Commission
         due for the month (including all Delinquent Premium Amounts), less all
         reinsurance premiums due from the Company in respect of the inuring
         reinsurances, less the Cession Percentage of Ultimate Net Loss and Loss
         Adjustment Expenses paid for the month, plus the Cession Percentage of
         Salvage Recovered for the month. Such remittances shall be deemed
         settled by the debtor party to the creditor party 60 (sixty) days in
         arrears from the month end, except that amounts owed by the Reinsurer
         to the Company shall be paid the later of 60 (sixty) days in arrears
         from the month end or 15 (fifteen) days following the Reinsurer's
         receipt of the monthly report.

D.       Notwithstanding the above, the Company shall advise the Reinsurer
         promptly of all Ultimate Net Losses and Loss Adjustment Expenses, which
         in the opinion of the Company, may result in a claim hereunder and of
         all subsequent developments thereto which, in the opinion of the
         Company, may materially affect the position of the Reinsurer.
         Inadvertent omission or oversight in dispatching such advises shall in
         no way affect the liability of the Reinsurer. However, the Company
         shall notify the Reinsurer of such omission or oversight promptly upon
         its discovery.

E.       All Ultimate Net Loss settlements made by the Company on Business
         Covered, with exception of ex gratia payments, whether under Policy
         terms and conditions or by way of compromise, shall be in the sole
         discretion of the Company and shall be unconditionally binding on the
         Reinsurer, subject always to the terms conditions and exclusions of
         this Agreement. Upon satisfactory proof of loss, the Reinsurer shall
         pay or allow, as applicable, its proportional share of each such
         settlement in accordance with this Agreement. All Ultimate Net Loss and
         Loss Adjustment Expense amounts due to the Company from the Reinsurer
         under this Agreement shall first be paid by way of offset against the
         Funds Withheld Account/Profit Sharing Account consistent with Article
         13, Accounts, Remittances, and Loss Payments, section C. and such
         offset shall constitute payment under this Agreement. Only upon the
         exhaustion of the Funds Withheld Account/Profit Sharing Account shall
         the Company be entitled to receive cash payment from the Reinsurer.

                                       15
<PAGE>

                                   ARTICLE 14

COMMUTATION

The Company shall have the option, only with the consent of the Reinsurers,
effective at any calendar quarter end on or after the calendar quarter of
termination of this Agreement, to commute all ceded Ultimate Net Loss and ceded
Loss Adjustment Expenses outstanding hereunder. The date that the Company and
the Reinsurers mutually elect to commute shall be deemed the commutation date.

Upon Commutation, the Company shall retain 100% (one hundred percent) of the
balance of the Funds Withheld Account/Profit Sharing Account and shall be
entitled to the balance of the Segregated Account or such funds transferred into
a New York Regulation 114 complaint trust account, as applicable. Upon
Commutation, the Reinsurers shall be released from all past, current and future
liability under this Agreement.

                                   ARTICLE 15

SPECIAL TERMINATION CLAUSE

Either the Company or the Reinsurers may terminate this Agreement on a cut-off
basis upon the happening of any one of the following circumstances at any time
by the giving of 60 (sixty) days prior written notice to the other party:

         1.       The Company's A.M. Best rating drops below a "B+"; or

         2.       The Reinsurers' A.M. Best ratings drops below an "A-"; or

         3.       A reduction of more than 20% (twenty percent) of the Company's
                  statutory surplus from the Company's Statutory Surplus Level
                  at December 31, 2003; or

         4.       There is a change in the office of President and CEO of the
                  Company; or

         5.       Insolvency, Rehabilitation, or Regulatory Supervision of the
                  Company; or

         6.       Company ceases underwriting new property and casualty
                  business;

         7.       Company fails to maintain the Trust Account at the minimum
                  balance required by this Agreement for a period of
                  seventy-five (75) days;

         8.       Company sells 50% (fifty percent) or more of its assets or
                  reinsures 50% (fifty percent) or more of its Net Written
                  Premium or net liabilities (all as of January 1, 2004) to an
                  unaffiliated third party; or

                                       16
<PAGE>

         9.       An insurance regulatory authority or governmental entity in
                  any United States jurisdiction revokes, suspends or forces the
                  Company to withdraw its certificate of authority in such
                  jurisdiction; or

         10.      Company fails to pay Reinsurers' Margin in accordance with
                  Article 9, Reinsurance Premium and Reinsurers' Margin.

Upon election of Special Termination, the Reinsurers shall incur no liability
for losses occurring subsequent to the effective date of termination.

                                   ARTICLE 16

CURRENCY

A.       Whenever the word "dollars" or the "$" appears in this Agreement, they
         shall be construed to mean United States Dollars and all transactions
         under this Agreement shall be in United States Dollars.

B.       Amounts paid or received by the Company in any other currency shall be
         converted to United States Dollars at the rate of exchange at the date
         such transaction is entered on the books of the Company.

                                   ARTICLE 17

TAXES AND FEDERAL EXCISE TAX

A.       Taxes - In consideration of the terms under which this Agreement is
         issued, the Company undertakes not to claim any deduction of the
         Premium hereon when making Canadian tax returns or when making tax
         returns other than Income or Profits Tax returns, to any State or
         Territory of the United States of America or to the District of
         Columbia.

B.       Federal Excise Tax - (Applicable to those reinsurers, excepting
         Underwriters at Lloyd's London and other reinsurers exempt from Federal
         Excise Tax, who are domiciled outside the United States of America.)

         The Reinsurers has agreed to allow for the purpose of paying the
         Federal Excise Tax the applicable percentage of the Premium payable
         hereon (as imposed under Section 4371 of the Internal Revenue Code)
         from Reinsurers' Margin to the extent such Premium is subject to the
         Federal Excise Tax.

         In the event of any return of Premium becoming due hereunder, the
         Reinsurers shall deduct the applicable percentage from the return
         Premium payable hereon and the Company or its agent should take steps
         to recover the tax from the United States Government.

                                       17
<PAGE>

                                   ARTICLE 18

RESERVES

(This Clause only applies to Reinsurers domiciled outside the United States
and/or unauthorized in any state, territory or district of the United States
having jurisdiction over the Company.)

A.       If a jurisdiction of the United States shall not permit the Company, in
         the statements required to be filed with its regulatory authority(ies),
         to receive full credit as admitted reinsurance for any Reinsurers'
         share of obligations, the Company shall forward to such Reinsurers a
         statement of the Reinsurers' share of such obligations. Upon receipt of
         such statement, the Reinsurers shall promptly apply for and provide the
         Company with a "clean", unconditional and irrevocable Letter of Credit
         or alternative Trust Account pursuant to the trust agreement meeting
         the requirements of New York Regulation 114, in either event in the
         amount specified in the statement submitted in excess of the Funds
         Withheld Account/Profit Sharing Account, with terms and bank acceptable
         to the regulatory authority(ies) having jurisdiction over the Company.
         The form of collateral to be provided under this clause in excess of
         the Funds Withheld Account/Profit Sharing Account shall be solely at
         the option of the Reinsurers.

B.       "Obligations" as used in this Article, shall mean the sum of losses
         paid and Loss Adjustment Expenses paid by the Company but not yet
         recovered from the Reinsurers, plus reserves for reported losses, Loss
         Adjustment Expenses, losses incurred but not reported and premiums
         unearned, if any.

C.       If the Reinsurers choose to provide a Letter of Credit, the following
         shall be applicable:

         1.       The Reinsurers hereby agrees that the Letter of Credit shall
                  provide for automatic extension of the Letter of Credit
                  without amendment for one year from the date of expiration of
                  said Letter or any future expiration date unless 30 (thirty)
                  days prior to any expiration the issuing bank shall notify the
                  Company by registered mail that the issuing bank elects not to
                  consider the Letter of Credit renewed for any additional
                  period. An issuing bank, not a "qualified bank" as defined by
                  Regulation 133 promulgated by the Insurance Department of the
                  State of New York, shall provide 60 (sixty) days notice to the
                  Company prior to any expiration.

         2.       Notwithstanding any other provision of this Agreement, the
                  Company or any successor by operation of law of the Company
                  including, without limitation, any liquidator, rehabilitator,
                  receiver or conservator of the Company may draw upon such
                  credit, without diminution because of the insolvency of any
                  party hereto, at any time and undertakes to use and apply such
                  credit for one or more of the following purposes only:

                  i.       to pay the Reinsurers' share or to reimburse the
                           Company for the Reinsurers' share of any obligations,
                           as stipulated in the statement submitted by the
                           Company to the Reinsurers, which is due to the
                           Company and not otherwise paid by the Reinsurers;

                                       18
<PAGE>

                  ii.      in the event the Company has received effective
                           notice of non-renewal of the Letter of Credit and the
                           Reinsurers' liability remains unliquidated and
                           undischarged 30 (thirty) days prior to the expiry
                           date of the Letter of Credit to withdraw the balance
                           of the Letter of Credit and place such sums in an
                           interest bearing trust account (separate and apart
                           from any assets of the Company) to secure the
                           continuing liabilities of the Reinsurers under this
                           Agreement until a renewal Letter of Credit acceptable
                           to the regulatory authority(ies) having jurisdiction
                           over the Company, or a substitute in lieu thereof
                           acceptable to the regulatory authority(ies) having
                           jurisdiction over the Company, has been received by
                           the Company. The Company shall provide to the
                           Reinsurers payment of any interest thereon accruing
                           from such account.

                  iii.     to make refund of any sum which is in excess of the
                           actual amount required for sections 1 and 2 of this
                           paragraph.

                  In the event that any amounts drawn down (and any interest or
                  other earnings thereon) on the Letter of Credit are either in
                  excess of the actual amounts required under subparagraphs (i)
                  and (ii) above or subsequently determined not to be due under
                  this Agreement, such amounts shall constitute assets of the
                  Reinsurer for all purposes and shall be held by the Company in
                  trust (separate and apart from any assets of the Company). The
                  Company shall return all such amounts to the Reinsurer,
                  including interest accrued from the date drawn and calculated
                  at a rate not in excess of the prime rate of interest on the
                  amounts held pursuant to subparagraphs (i) and (ii) above.

         3.       At annual intervals or more frequently as determined by the
                  Company, but never more frequently than quarterly, the Company
                  shall prepare a specific statement, for the sole purpose of
                  amending the Letter of Credit, of the Reinsurers' share of any
                  Obligations. If the statement shows that the Reinsurers' share
                  of Obligations exceeds the balance of credit as of the
                  statement date, the Reinsurers shall, within 30 (thirty) days
                  after receipt of notice of such excess, secure delivery to the
                  Company of an amendment of the Letter of Credit increasing the
                  amount of credit by the amount of such difference. If the
                  statement shows, however, that the Reinsurers' share of
                  Obligations is less than the balance of credit as of the
                  statement date, the Company shall, within 30 (thirty) days
                  after receipt of written request from the Reinsurers, release
                  such excess credit by agreeing to secure an amendment to the
                  Letter of Credit reducing the amount of credit available by
                  the amount of such excess credit.

         4.       The bank shall have no responsibility whatsoever in connection
                  with the propriety of withdrawals made by the Company or the
                  disposition of funds withdrawn, except to assure that
                  withdrawals are made only upon the order of properly
                  authorized representatives of the Company. The Company shall
                  incur no obligation to the bank in acting upon the credit,
                  other than as appears in the express terms thereof.

                                       19
<PAGE>

D.       If the Reinsurers choose to provide a Trust Account the following shall
         be applicable:

         1.       The Reinsurers shall enter into a trust agreement and
                  establish a trust account (the "Trust Account") for the
                  benefit of the Company with respect to the Reinsurers' share
                  of Obligations with a bank (the "Trustee") acceptable to the
                  Superintendent of Insurance of the State of New York and the
                  Company.

         2.       The Reinsurers agree to deposit, and maintain in the Trust
                  Account, assets to be held in trust by the Trustee for the
                  benefit of the Company as security for the payment of the
                  Reinsurers' Obligations to the Company under this Agreement.

         3.       The parties agree that the assets so deposited shall be valued
                  according to their current fair market value and shall consist
                  only of cash (United States legal tender), certificates of
                  deposit (issued by a United States bank and payable in United
                  States legal tender), and other admitted assets of a
                  character, maturity, and value to fulfill the intent of this
                  Agreement; provided that such investments are issued by an
                  institution that is not the parent, subsidiary or affiliate of
                  either the Company or the Reinsurers; and provided, further
                  that such assets are of the type specified in paragraphs (1),
                  (2), (3), (8) and (10) of Section 1404(a) of the New York
                  Insurance Law ("Eligible Securities").

         4.       The Reinsurers, prior to depositing assets with the Trustee,
                  shall execute all assignments and endorsements in blank, or
                  transfer legal title to the Trustee of all shares, obligations
                  or any other assets requiring assignments, in order that the
                  Company, or the Trustee upon direction of the Company, may
                  whenever necessary negotiate any such assets without consent
                  or signature from the Reinsurers or any other entity.

         5.       All settlements of account under the trust agreement between
                  the Company and the Reinsurers shall be made in cash or its
                  equivalent.

         6.       The aggregate fair market value of the assets held in the
                  Trust Account (the "Market Value") shall at all times be at
                  least equal to the Reinsurers' share of Obligations. The
                  amount of the Trust Account shall be adjusted on a quarterly
                  basis so as to equal the Reinsurer's share of Obligations. On
                  a quarterly basis, the Reinsurer shall prepare a specific
                  statement of the Reinsurer's share of Obligations and deliver
                  such report to the Company. If the statement shows that the
                  Reinsurer's share of Obligations exceed 100% (one hundred
                  percent) of the balance of the Trust Account as of the
                  statement date, the Reinsurer shall, within 10 (ten) days
                  after delivery of such notice of excess, secure delivery to
                  the Trustee of additional cash or Eligible Securities having a
                  current fair market value equal to such difference. If the
                  statement shows that the Reinsurers' share of Obligations are
                  less than 102% (one hundred two percent) of the balance of the
                  Trust Account as of the statement date, the Company shall,
                  within 10 (ten) days after receipt of such statement from the
                  Reinsurers, deliver a notice of withdrawal to the Trustee
                  directing the Trustee to withdraw from the Trust Account and
                  deliver to the Reinsurers assets from the Trust Account having
                  a current fair market value equal to such excess amount.

                                       20
<PAGE>

                                   ARTICLE 19

EXCESS OF POLICY LIMITS

This Agreement shall protect the Company, within the limits hereof, for 100%
(one hundred percent) of loss in excess of the limit of its original Policies of
insurance, such loss in excess of the limit having been incurred because of
failure by the Company or Tower Risk Management to settle within the Policies of
insurance limit or by reason of alleged or actual negligence or bad faith in
rejecting an offer of settlement or in the preparation of the defense or in the
trial of any action against its insured or reinsured or in the preparation or
prosecution of an appeal consequent upon such action. The Reinsurers shall not
be liable for more than $1,000,000 (one million dollars) additional subject
Ultimate Net Loss for any one claim in respect of Excess of Policy Limits/Extra
Contractual Obligations liability and $5,000,000 (five million dollars) in the
aggregate for all Excess of Policy Limits/Extra Contractual Obligations
liability.

However, this Article shall not apply where the loss has been incurred due to a
fraud by a member of the board of directors or a corporate officer of the
Company or Tower Risk Management acting individually or collectively or in
collusion with any individual or corporation or any other organization or party
involved in the presentation, defense or settlement of any claim covered
hereunder.

For the purpose of this Article, the word "loss" shall mean any amounts for
which the Company would have been contractually liable to pay had it not been
for the limit of the original policy.

                                   ARTICLE 20

EXTRA CONTRACTUAL OBLIGATIONS

This Agreement shall protect the Company for 100% (one hundred percent) of any
Extra Contractual Obligations. The term "Extra Contractual Obligations" is
defined as those liabilities not covered under any other provision of the
Company's original Policies of insurance and which arise from the handling of
any claim on Business Covered hereunder, such liabilities arising because of,
but not limited to, the following: failure by the Company or Tower Risk
Management to settle within the Policies of insurance limit, or by reason of
alleged or actual negligence or bad faith in rejecting an offer of settlement or
in the preparation of the defense or in the trial of any action against its
insured or reinsured or in the preparation or prosecution of an appeal
consequent upon such action. The Reinsurers shall not be liable for more than
$1,000,000 (one million dollars) additional subject Ultimate Net Loss for any
one claim in respect of Excess of Policy Limits/Extra Contractual Obligations
liability and $5,000,000 (five million dollars) in the aggregate for all Excess
of Policy Limits/Extra Contractual Obligations liability.

                                       21
<PAGE>

The date on which any Extra Contractual Obligation is incurred by the Company
shall be deemed, in all circumstances, to be the date of the original loss
event. However, this Article shall not apply where the loss has been incurred
due to fraud by a member of the board of directors or a corporate officer of the
Company or Tower Risk Management acting individually or collectively or in
collusion with any individual or corporation or any other organization or party
involved in the presentation, defense or settlement of any claim covered
hereunder.

                                   ARTICLE 21

OFFSET

The Company and the Reinsurers shall have the right to offset any balance or
amounts due from one party to the other under the terms of this Agreement or any
other agreement between the Company and the Reinsurers. The party asserting the
right of offset may exercise such right any time whether the balances due are on
account of Reinsurance Premiums, Ceding Commissions, Return Ceding Commissions,
Ultimate Net Losses, Interest Credit or any other balances due or owed between
the Company and the Reinsurers. In the event of insolvency of either party to
this agreement, then offsets shall only be allowed to the extent permitted by
the provisions of New York Insurance Law Section 7427.

                                   ARTICLE 22

ERRORS AND OMISSIONS

Inadvertent delays, errors or omissions made by the Company in connection with
this Agreement shall not relieve the Reinsurers from any liability which would
have attached had such delay, error or omission not occurred, provided always
that such delay, error or omission shall be rectified as soon as possible after
discovery by the Company's home office.

                                   ARTICLE 23

ACCESS TO RECORDS

The Company shall place at the disposal of the Reinsurers at all reasonable
times, and the Reinsurers shall have the right to inspect through its designated
representatives, during the Term of this Agreement and thereafter, all books,
records and papers of the Company in connection with any reinsurance hereunder,
or the subject matter hereof. Such right shall continue to exist as long as one
party has a claim against the other party arising out of this Agreement.

                                       22
<PAGE>

                                   ARTICLE 24

INSOLVENCY

A.       In the event of the insolvency of the Company, this reinsurance shall
         be payable directly to the Company, or to its liquidator, receiver,
         conservator, or statutory successor on the basis of the liability of
         the Company without diminution because of the insolvency of the Company
         or because the liquidator, receiver, conservator or statutory successor
         of the Company has failed to pay all or a portion of any claim. It is
         agreed, however, that the liquidator, receiver, conservator, or
         statutory successor of the Company shall give written notice to the
         Reinsurers of the pendency of a claim against the Company indicating
         the Policy insured which claim would involve a possible liability on
         the part of the Reinsurers with a reasonable time after such claims is
         filed in the conservation or liquidation proceeding or in the
         receivership, and that during the pendency of such claim, the
         Reinsurers may investigate such claim and interpose, at its own
         expense, in the proceeding where such claim is to be adjudicated, any
         defense or defenses that they may deem available to the Company or its
         liquidator, receiver, conservator or statutory successor. The expense
         thus incurred by the Reinsurers shall be chargeable, subject to the
         approval of the court, against the Company as part of the expense of
         conservation or liquidation to the extent of a pro rata share of the
         benefit which may accrue to the Company solely as a result of the
         defense undertaken by the Reinsurers.

B.       Where two or more reinsurers are involved in the same claim and a
         majority in interest elect to interpose defense to such claim, the
         expense shall be apportioned in accordance with the terms of this
         Agreement as though such expense had been incurred by the insolvent
         Company.

                                   ARTICLE 25

CONFIDENTIALITY

The parties acknowledge there may be portions of this Agreement, the Reinsurance
Agreement submission or the marketing package that may contain confidential,
proprietary information of the Company. The Reinsurers shall maintain the
confidentiality of such information concerning the Company and its business and
shall not disclose it to any third person without prior approval; provided,
however, that the Reinsurers may be required and are permitted under this
Agreement to disclose such information in answers to interrogatories, subpoenas
or other legal/arbitration processes as well as to the Company's Intermediaries,
to the Reinsurers' retrocessionaire, the Reinsurers' affiliates, and applicable
intermediaries, or in response to requests by governmental and regulatory
agencies. In addition, the Reinsurers may disclose such information to its
rating agencies, auditors, advisors and to its outside legal counsel as may be
necessary.

                                       23
<PAGE>

                                   ARTICLE 26

ARBITRATION

A.       Any dispute or other matter in question between the Company and the
         Reinsurers arising out of, or relating to, the formation,
         interpretation, performance or breach of this Agreement, whether such
         dispute arises before or after termination of this Agreement, shall be
         settled by arbitration. Arbitration shall be initiated by the delivery
         of a written notice of demand for arbitration by one party to the other
         within a reasonable time after the dispute has arisen.

B.       If more than one reinsurer is involved in the same dispute, all such
         reinsurers shall constitute and act as one party for the purposes of
         this Article, provided, however, that nothing herein shall impair the
         rights of such reinsurers to assert several, rather than joint,
         defenses or claims, nor be construed as changing the liability of the
         reinsurers under the terms of this Agreement from several to joint.

C.       Each party shall appoint an individual as arbitrator and the two so
         appointed shall then appoint a third arbitrator. If either party
         refuses or neglects to appoint an arbitrator within 60 (sixty) days,
         the other party may appoint the second arbitrator. If the two
         arbitrators do not agree on a third arbitrator within 60 (sixty) days
         of their appointment, each of the arbitrators shall nominate 3 (three)
         individuals. Each arbitrator shall then decline two of the nominations
         presented by the other arbitrator. The third arbitrator shall then be
         chosen form the remaining two nominations by drawing lots. The
         arbitrators shall be active or former officers of insurance or
         reinsurance companies or Lloyd's Underwriters; the arbitrators shall
         not have a personal or financial interest in the result of the
         arbitration.

D.       The arbitration hearings shall be held in New York, New York or such
         other place as may be mutually agreed. Each party shall submit its case
         to the arbitrators within 60 (sixty) days of the selection of the third
         arbitrator or within such longer period as may be agreed by the
         arbitrators. The arbitrators shall not be obliged to follow judicial
         formalities or the rules of evidence except to the extent required by
         governing law, that is, the state law of the situs of the arbitration
         as herein agreed; they shall make their decisions according to the
         practice of the reinsurance business. The decision rendered by a
         majority of the arbitrators shall be final and binding on both parties.
         Such decision shall be a condition precedent to any right of legal
         action arising out of the arbitrated dispute which either party may
         have against the other. Judgment upon the award rendered may be entered
         in any court having jurisdiction thereof.

E.       Each party shall pay the fee and expenses of its own arbitrator and
         one-half of the fee and expenses of the third arbitrator. All other
         expenses of the arbitration shall be equally divided between the
         parties.

F.       Except as provided above, arbitration shall be based, insofar as
         applicable, upon the procedures of the American Arbitration
         Association.

                                       24
<PAGE>

                                   ARTICLE 27

SERVICE OF SUIT

(This Article only applies to reinsurers domiciled outside the United States
and/or unauthorized in any state, territory or district of the United States
having jurisdiction over the Company.)

A.       It is agreed that in the event of the failure of the Reinsurers hereon
         to pay any amount claimed to be due hereunder, the Reinsurers hereon,
         at the request of the Company, shall submit to the jurisdiction of a
         court of competent jurisdiction within the United States. Nothing in
         this Article constitutes or should be understood to constitute a waiver
         of the Reinsurers' right to commence an action in any court of
         competent jurisdiction in the United States, to remove an action to a
         United States District Court, or to seek a transfer of a case to
         another court as permitted by the laws of the United States or of any
         state in the United States. It is further agreed that service of
         process in such suit may be made upon Lovells, 900 Third Avenue New
         York, New York 10022, and that in any suit instituted, the Reinsurers
         shall abide by the final decision of such court or of any Appellate
         Court in the event of an appeal.

B.       The above-named are authorized and directed to accept service of
         process on behalf of the Reinsurers in any such suit and/or upon the
         request of the Company to give a written undertaking to the Company
         that they shall enter a general appearance upon the Reinsurers' behalf
         in the event such a suit shall be instituted.

C.       Further, pursuant to any statute of any state, territory or district of
         the United States which makes provision therefor, the Reinsurers hereon
         hereby designate the Superintendent, Commissioner or Director of
         Insurance or other officer specified for that purpose in the statute,
         or his successor or successors in office, as their true and lawful
         attorney upon whom may be served any lawful process in any action, suit
         or proceeding instituted by or on behalf of the Company or any
         beneficiary hereunder arising out of this Agreement of reinsurance, and
         hereby designates the above-named as the person to whom the said
         officer is authorized to mail such process or a true copy thereof.

                                   ARTICLE 28

INTERMEDIARY

Tower Risk Management Corporation and Pegasus Advisors - Towers Perrin
Reinsurance are hereby recognized as the Intermediaries negotiating this
Agreement for all business hereunder and through whom all communications
relating hereto (including but not limited to notices, statements and reports)
shall be transmitted to both parties. It is understood, as regards remittances
due either party hereunder, that payment by the Company to the Intermediaries,
shall constitute payment to the Reinsurers but payment by the Reinsurers to the
Intermediaries shall only constitute payment to the Company to the extend such
payments are actually received by the Company.

                                       25
<PAGE>

                        NUCLEAR INCIDENT EXCLUSION CLAUSE
                       PHYSICAL DAMAGE - REINSURANCE - USA

         1. This Contract does not cover any loss or liability accruing to the
Reassured, directly or indirectly, and whether as Insurer or Reinsurer, from any
Pool of Insurers or Reinsurers formed for the purpose of covering Atomic or
Nuclear Energy risks.

         2. Without in any way restricting the operation of paragraph (1) of
this Clause, this Contract does not cover any loss or liability accruing to the
Reassured, directly or indirectly, and whether as Insurer or Reinsurer, from any
insurance against Physical Damage (including business interruption or
consequential loss arising out of such Physical Damage) to:

         I.       Nuclear reactor power plants including all auxiliary property
                  on the site, or

         II.      Any other nuclear reactor installation, including laboratories
                  handling radioactive materials in connection with reactor
                  installations, and "critical facilities" as such, or

         III.     Installations for fabricating complete fuel elements or for
                  processing substantial quantities of "special nuclear
                  material", and for reprocessing, salvaging, chemically
                  separating, storing or disposing of "spent" nuclear fuel or
                  waste materials, or

         IV.      Installations other than those listed in paragraph (2) III
                  above using substantial quantities of radioactive isotopes or
                  other products of nuclear fission.

         3. Without in any way restricting the operations of paragraphs (1) and
(2) hereof, this Contract does not cover any loss or liability by radioactive
contamination accruing to the Reassured, directly or indirectly, and whether as
Insurer or Reinsurer, from any insurance on property which is on the same site
as a nuclear reactor power plant or other nuclear installation and which
normally would be insured therewith except that this paragraph (3) shall not
operate

                  (a)      where the Reassured does not have knowledge of such
                           nuclear reactor power plant or nuclear installation,
                           or

                  (b)      where said insurance contains a provision excluding
                           coverage for damage to property caused by or
                           resulting from radioactive contamination, however
                           caused. However on and after 1st January 1960, this
                           sub-paragraph (b) shall only apply provided the said
                           radioactive contamination exclusion provision has
                           been approved by the Governmental Authority having
                           jurisdiction thereof.

         4.       Without in any way restricting the operations of paragraphs
                  (1), (2) and (3) hereof, this

                                       26
<PAGE>

Contract does not cover any loss or liability by radioactive contamination
accruing to the Reassured, directly or indirectly, and whether as Insurer or
Reinsurer, when such radioactive contamination is a named hazard specifically
insured against.

         5. It is understood and agreed that this Clause shall not extend to
risks using radioactive isotopes in any form where the nuclear exposure is not
considered by the Reassured to be the primary hazard.

         6. The term "special nuclear material" shall have the meaning given it
in the Atomic Energy Act of 1954 or by any law amendatory thereof.

         7. The Reassured to be sole judge of what constitutes:

         (a)      substantial quantities, and

         (b)      the extent of installation, plant or site

NOTE: - Without in any way restricting the operation of paragraph (1) hereof,
it is understood and agreed that

         (a)      all Policies issued by the Reassured on or before 31st
                  December 1957 shall be free from the application of the other
                  provisions of this Clause until expiry date or 31st December
                  1960 whichever first occurs whereupon all the provisions of
                  this Clause shall apply.

         (b)      with respect to any risk located in Canada Policies issued by
                  the Reassured on or before 31st December 1958 shall be free
                  from the application of the other provisions of this Clause
                  until expiry date or 31st December 1960 whichever first occurs
                  whereupon all the provisions of this Clause shall apply.

                                       27
<PAGE>

                        NUCLEAR INCIDENT EXCLUSION CLAUSE
                        LIABILITY - REINSURANCE - U.S.A.

1.       This Agreement does not cover any loss or liability accruing to the
         Cedent as a member of, or subscriber to, any association of insurers or
         reinsurers formed for the purpose of covering nuclear energy risks or
         as a direct or indirect reinsurer of any such member, subscriber or
         association.

2.       Without in any way restricting the operation of paragraph (1) of this
         Clause it is understood and agreed that for all purposes of this
         Agreement all the original Policies of the Cedent (new, renewal and
         replacement) of the classes specified in Clause II of this paragraph
         (2) from the time specified in Clause III of this paragraph (2) shall
         be deemed to include the following provision (specified as the Limited
         Exclusion Provision):

Limited Exclusion Provision*

         I.       It is agreed that the Policy does not apply under any
                  liability coverage, to
                  (injury, sickness, disease, death or destruction
                  (bodily injury or property damage
                  with respect to which an insured under the Policy is also an
                  insured under a nuclear energy liability Policy issued by
                  Nuclear Energy Liability Insurance Association, Mutual Atomic
                  Energy Liability Underwriters or Nuclear Insurance Association
                  of Canada, or would be an insured under any such Policy but
                  for its termination upon exhaustion of its limits of
                  liability.

         II.      Family Automobile Policies (liability only), Special
                  Automobile Policies (private passenger automobiles, liability
                  only), Farmers Comprehensive Personal Liability Policies
                  (liability only), Comprehensive Personal Liability Policies
                  (liability only) or Policies of a similar nature; and the
                  liability portion of combination forms related to the four
                  classes of Policies stated above, such as the Comprehensive
                  Dwelling Policy and the applicable types of Homeowners
                  Policies.

         III.     The inception dates and thereafter of all original Policies as
                  described in II above, whether new, renewal or replacement,
                  being Policies which either

         (a)      become effective on or after 1st May, 1960, or

         (b)      become effective before that date and contain the Limited
                  Exclusion Provision set out above; provided this paragraph (2)
                  shall not be applicable to Family Automobile Policies, Special
                  Automobile Policies or Policies or combination Policies of a
                  similar nature, issued by the Cedent on New York risks, until
                  90 days following approval of the Limited Exclusion Provision
                  by the Governmental Authority having jurisdiction thereof.

3.       Except for those classes of Policies specified in Clause II of
         paragraph (2) and without in any way restricting the operation of
         paragraph (1) of this Clause, it is understood and agreed that for all
         purposes of this Agreement the original liability Policies of the
         Cedent (new, renewal and replacement) affording the following
         coverages:

                                       28
<PAGE>

         Owners, Landlords and Tenants Liability, Contractual Liability,
         Elevator Liability, Owners or Contractors (including railroad),
         Protective Liability, Manufacturers and Contractors Liability,
         Product Liability, Professional and Malpractice Liability,
         Storekeepers Liability, Garage Liability, Automobile Liability
         (including Massachusetts Motor Vehicle or Garage Liability)

         shall be deemed to include, with respect to such coverages, from the
         time specified in Clause V of this paragraph (3), the following
         provision (specified as the Broad Exclusion Provision):

Broad Exclusion Provision*

It is agreed that the Policy does not apply:

         I.       Under any Liability Coverage, to
                  (injury, sickness, disease, death or destruction
                  (bodily injury or property damage

                  (a)      with respect to which an insured under the Policy is
                           also an insured under a nuclear energy liability
                           Policy issued by Nuclear Energy Liability Insurance
                           Association, Mutual Atomic Energy Liability
                           Underwriters or Nuclear Insurance Association of
                           Canada, or would be an insured under any such Policy
                           but for its termination upon exhaustion of its limit
                           of liability; or

                  (b)      resulting from the hazardous properties of nuclear
                           material and with respect to which (1) any person or
                           organization is required to maintain financial
                           protection pursuant to the Atomic Energy Act of 1954,
                           or any law amendatory thereof, or (2) the insured is,
                           or had this Policy not been issued would be, entitled
                           to indemnity from the United States of America, or
                           any agency thereof, under any agreement entered into
                           by the United States of America, or any agency
                           thereof, with any person or organization.

         II.      Under any Medical Payments Coverage, or under any
                  Supplementary Payments Provision relating to
                  (immediate medical or surgical relief,
                  (first aid,
                  to expenses incurred with respect to
                  (bodily injury, sickness, disease or death
                  (bodily injury
                  resulting from the hazardous properties of nuclear material
                  and arising out of the operation of a nuclear facility by any
                  person or organization.

         III.     Under any Liability Coverage, to
                  (injury, sickness, disease, death or destruction
                  (bodily injury or property damage
                  resulting from the hazardous properties of nuclear material if

                  (a)      the nuclear material (1) is at any nuclear facility
                           owned by, or operated by or on behalf of, an insured
                           or (2) has been discharged or dispersed therefrom;

                                       29
<PAGE>

                  (b)      the nuclear material is contained in spent fuel or
                           waste at any time possessed, handled, used,
                           processed, stored, transported or disposed or by or
                           on behalf of an insured; or

                  (c)      (the injury, sickness, disease, death or destruction
                           (the bodily injury or property damage
         arises out of the furnishing by an insured of services, materials,
         parts or equipment in connection with the planning, construction,
         maintenance, operation or use of any nuclear facility, but if such
         facility is located within the United States of America, its
         territories, or possessions or Canada, this exclusion (c) applies only
         to
         (injury to or destruction of property at such nuclear facility
         (property damage to such nuclear facility and any property thereat.

         IV.      As used in this endorsement:
                  "hazardous properties" include radioactive, toxic or explosive
                  properties; "nuclear material" means source material, special
                  nuclear material or by-product material; "source material",
                  "special nuclear material" and "by-product material" have the
                  meanings given to them in the Atomic Energy Act of 1954 or in
                  any law amendatory thereof; "spent fuel" means any fuel
                  element or fuel component, solid or liquid, which has been
                  used or exposed to radiation in a nuclear reactor; "waste"
                  means any waste material (1) containing by-product material
                  and (2) resulting from the operation by any person or
                  organization of any nuclear facility included within the
                  definition of nuclear facility under paragraph (a) or (b)
                  thereof; "nuclear facility" means

                  (a)      any nuclear reactor,

                  (b)      any equipment or device designed or used for (1)
                           separating the isotopes of uranium or plutonium, (2)
                           processing or utilizing spent fuel, or (3) handling,
                           processing or packaging waste,

                  (c)      any equipment or device used for the processing,
                           fabricating or alloying of special nuclear material
                           if at any time the total amount of such material in
                           the custody of the Insured at the premises where such
                           equipment or device is located consists of or
                           contains more than 25 grams of plutonium or uranium
                           233 or any combination thereof, or more than 250
                           grams of uranium 235,

                  (d)      any structure, basin, excavation, premises or place
                           prepared or used for the storage or disposal of
                           waste,

                  and includes the site on which any of the foregoing is
                  located, all operations conducted on such site and all
                  premises used for such operations; "nuclear reactor" means any
                  apparatus designed or used to sustain nuclear fission in a
                  self-supporting chain reaction or to contain a critical mass
                  of fissionable material;
                  (with respect to injury to or destruction of property, the
                  word "injury" or "destruction"
                  ("property damage" includes all forms of radioactive
                  contamination of property.
                  (includes all forms of radioactive contamination of property.

V.       The inception dates and thereafter of all original Policies affording
         coverages specified in this paragraph (3), whether new, renewal or
         replacement, being Policies which become effective on or after 1st May,
         1960, provided this paragraph (3) shall not be applicable to

         (i)      Garage and Automobile Policies issued by the Cedent on New
                  York risks, or

                                       30
<PAGE>

         (ii)     Statutory liability insurance required under Chapter 90,
                  General Laws of Massachusetts, until 90 days following
                  approval of the Board Exclusion Provision by the Governmental
                  Authority having jurisdiction thereof.

4.       Without in any way restricting the operation of paragraph (1) of this
         Clause, it is understood and agreed that paragraphs (2) and (3) above
         are not applicable to original liability Policies of the Cedent in
         Canada and that with respect of such Policies this Clause shall be
         deemed to include the Nuclear Energy Liability Exclusion Provisions
         adopted by the Canadian Underwriters' Association or the Independent
         Insurance Conference of Canada.

                              --------------------

*Note    The words printed in italics in the Limited Exclusion Provision and in
         the Broad Exclusion Provision shall apply only in relation to original
         liability Policies which include a Limited Exclusion Provision or a
         Broad Exclusion Provision containing those words.

                                       31
<PAGE>

                     WAR RISK EXCLUSION CLAUSE (REINSURANCE)

         As regards interests which at time of loss or damage are on shore, no
liability shall attach hereto in respect of any loss or damage which is
occasioned by war, invasion, hostilities, acts of foreign enemies, civil war,
rebellion, insurrection, military or usurped power, or martial law or
confiscation by order of any government or public authority.

         This War Exclusion Clause shall not, however, apply to interest which
at time of loss or damage are within the territorial limits of the United States
of America (comprising the fifty States of the Union and the District of
Columbia, its territories and possessions, including the Panama Canal Zone and
the Commonwealth of Puerto Rico and including Bridges between the United States
of America and Mexico provided they are under United States ownership), Canada,
St. Pierre and Miquelon, provided such interests are insured under original
Policies, endorsements or binders containing a standard war or hostilities or
warlike operations exclusion clause.

         Nevertheless, this clause shall not be construed to apply to loss or
damage occasioned by riots, strikes, civil commotion, vandalism, malicious
damage, including acts committed by agents of any government, party or faction
engaged in war, hostilities or other warlike operation, provided such agents are
acting secretly and not in connection with any operations of military or naval
armed forces in the country where the interests insured are situated.

                                       32
<PAGE>

                        INSOLVENCY FUND EXCLUSION CLAUSE

This Agreement excludes all liability of the Ceding Company arising by contract,
operation of law or otherwise, from its participation or membership, whether
voluntary or involuntary, in any insolvency fund. "Insolvency Fund" includes any
guarantee fund, insolvency fund, plan, pool, association, fund or other
arrangement, howsoever denominated, established or governed, which provides for
any assessment of or payment or assumption by the Ceding Company of part or all
of any claim, debt, charge, fee or other obligation of an insurer or its
successors or assigns which has been declared by any competent authority to be
insolvent or which is otherwise deemed unable to meet any claim, debt, charge,
fee or other obligation in whole or in part.

                                       33
<PAGE>

              POOLS, ASSOCIATIONS AND SYNDICATES EXCLUSION CLAUSE

Section A:

Excluding:

         (a)      All business derived directly or indirectly from any Pool,
                  Association, or Syndicate which maintains its own reinsurance
                  facilities.

         (b)      Any Pool or Scheme (whether voluntary or mandatory) formed
                  after March 1, 1968 for the purpose of insurance property
                  whether on a country-wide basis or in respect of designated
                  areas. This exclusion shall not apply to so-called Automobile
                  Insurance Plans or other Pools formed to provide coverage for
                  Automobile Physical Damage.

Section B:

It is agreed that business written by the Company for the same perils, which is
known at the time to be insured by, or in excess of underlying amounts placed in
the following Pools, Associations or Syndicates, whether by way of insurance or
reinsurance, is excluded hereunder:

         Industrial Risk Insurers,
         Associated Factory Mutuals Improved Risk Mutuals
         Any Pool, Association or Syndicate formed for the purpose of writing
         Oil, Gas or Petro-Chemical Plants and/or Oil or Gas Drilling Rigs,
         United States Aircraft Insurance Group, Canadian Aircraft Insurance
         Group,
         Associated Aviation Underwriters, American Aviation Underwriters

Section B does not apply:

         (a)      Where the Total Insured Value over all interests of the risk
                  in question is less than $250,000,000.

         (b)      To interests traditionally underwritten as Inland Marine or
                  stock and/or contents written on a blanket basis.

         (c)      To Contingent Business Interruption, except when the Company
                  is aware that the key location is known at the time to be
                  insured in any Pool, Association, or Syndicate named above
                  other than as provided for under Section B(a).

                                       34
<PAGE>

         (d)      To risks as follows:

                  Offices, Hotels, Apartments, Hospitals, Educational
                  Establishments, Public Utilities, (other than railroad
                  schedules) and builder's risks on the classes of risks
                  specified in this subsection (d) only. Where this clause
                  attaches to Catastrophe Excesses, the following Section C is
                  added:

Section C:

Nevertheless the Reinsurer specifically agrees that liability accruing to the
Company from its participation in:

         (1)      The following so-called "Coastal Pools":

                  Alabama Insurance Underwriting Association
                  Florida Windstorm Underwriting Association
                  Louisiana Insurance Underwriting Association
                  Mississippi Windstorm Underwriting Association
                  North Carolina Insurance Underwriting Association
                  South Carolina Windstorm and Hail Underwriting Association
                  Texas Catastrophe Property Insurance Association

                                            AND

         (2)      All "Fair Plan" and "Rural Risk Plan" business for all perils
                  otherwise protected hereunder shall not be excluded, except,
                  however, that this reinsurance does not include any increase
                  in such liability resulting from:

                  (i)      The inability of any other participant in such
                           "Coastal Pool" and/or "Fair Plan" and/or "Rural Risk
                           Plan" to meet its liability.

                  (ii)     Any claim against such "Coastal Pool" and/or "Fair
                           Plan" and/or "Rural Risk Plan" or any participant
                           therein, including the Company, whether by way of
                           subrogation or otherwise, brought by or on behalf of
                           any insolvency fund (as defined in the Insolvency
                           Fund Exclusion Clause incorporated in this Contract).

                                       35

<PAGE>

                                                                  Exhibit 10.23A

                       INTERESTS AND LIABILITIES AGREEMENT

                                     TO THE

                                   QUOTA SHARE
                              REINSURANCE AGREEMENT
                            EFFECTIVE JANUARY 1, 2004

            (HEREINAFTER REFERRED TO AS THE "REINSURANCE AGREEMENT")

                                     BETWEEN

                       TOWER INSURANCE COMPANY OF NEW YORK

                   (HEREINAFTER REFERRED TO AS THE "COMPANY")

                                       AND

                            TOKIO MILLENNIUM RE LTD.

            (HEREINAFTER REFERRED TO AS THE "SUBSCRIBING REINSURER")

It is hereby mutually agreed that the Subscribing Reinsurer shall have a 33.333%
(thirty three point three three three percent) share in the interests and
liabilities as set forth in the captioned Reinsurance Agreement. The share of
the Subscribing Reinsurer shall be separate and apart from the shares of the
other reinsurers and shall not be joint with those of the other reinsurers and
the Subscribing Reinsurer shall in no event participate in the interests and
liabilities of the other reinsurers.

In Witness Whereof, the parties hereto have caused this Interests and
Liabilities Agreement to be signed in triplicate by their duly authorized
representatives.

                                       1
<PAGE>

Signed this 20th day of April, 2004, For and on behalf of Tower Insurance
Company of New York

By:               /s/ Marina Contiero
         -----------------------------------------------------------------------

Title:            Vice President
         -----------------------------------------------------------------------

Signed this 26th day of March, 2004, For and on behalf of Tokio Millennium Re
Ltd.

By:               /s/ Tatsuhiko Hoshina
         -----------------------------------------------------------------------

Title:            CUO
         -----------------------------------------------------------------------

                                       2
<PAGE>

                                                                  Exhibit 10.23B

                       INTERESTS AND LIABILITIES AGREEMENT

                                     TO THE

                                   QUOTA SHARE
                              REINSURANCE AGREEMENT
                            EFFECTIVE JANUARY 1, 2004

            (HEREINAFTER REFERRED TO AS THE "REINSURANCE AGREEMENT")

                                     BETWEEN

                       TOWER INSURANCE COMPANY OF NEW YORK

                   (HEREINAFTER REFERRED TO AS THE "COMPANY")

                                       AND

                     HANNOVER REINSURANCE (IRELAND) LIMITED

                                       AND

                       E & S REINSURANCE (IRELAND) LIMITED

      (HEREINAFTER REFERRED TO COLLECTIVELY AS THE "SUBSCRIBING REINSURER")

It is hereby mutually agreed that the Subscribing Reinsurer shall have a 33.334%
(thirty three point three three four percent) share in the interests and
liabilities as set forth in the captioned Reinsurance Agreement. The share of
the Subscribing Reinsurer shall be separate and apart from the shares of the
other reinsurers and shall not be joint with those of the other reinsurers and
the Subscribing Reinsurer shall in no event participate in the interests and
liabilities of the other reinsurers.

In Witness Whereof, the parties hereto have caused this Interests and
Liabilities Agreement to be signed in triplicate by their duly authorized
representatives.

                                       1
<PAGE>

Signed this 20th day of April, 2004, For and on behalf of Tower Insurance
Company of New York

By:               /s/ Marina Contiero
         -----------------------------------------------------------------------

Title:            Vice President
         -----------------------------------------------------------------------

Signed this 13th day of April, 2004,
For and on behalf of Hannover Reinsurance (Ireland) Limited for an 80% (eighty
percent) share of a 33.334% (thirty three point three three four percent) their
participation of the terms and conditions herein.

By:               /s/ David Olagreir
         -----------------------------------------------------------------------

Title:            Underwriter
         -----------------------------------------------------------------------

Signed this 13th day of April, 2004,
For and on behalf of E+S Reinsurance (Ireland) Limited for a 20% (twenty
percent) share of a 33.334% (thirty three point three three four percent)
participation of the terms and conditions herein.

By:               /s/ David Olagreir
         -----------------------------------------------------------------------

Title:            Underwriter
         -----------------------------------------------------------------------

                                       2Exhibit 4.1

--------------------------------------------------------------------------------

                    CONVERTIBLE DEBENTURE PURCHASE AGREEMENT

                                     BETWEEN

                             ACIEM MANAGEMENT, INC.

                                       AND

                           THE PURCHASER(S) LISTED ON
                                SCHEDULE 1 HERETO

                            -----------------------

                                 AUGUST 12, 2004

                            -----------------------

--------------------------------------------------------------------------------

<PAGE>

                                TABLE OF CONTENTS

ARTICLE I CERTAIN DEFINITIONS..................................................1
   1.1   Certain Definitions...................................................1

ARTICLE II PURCHASE AND SALE OF CONVERTIBLE DEBENTURES.........................5
   2.2   Purchase and Sale; Purchase Price.....................................5
   2.2   Execution and Delivery of Documents; the Closing......................6
   2.3   The Post-Closing......................................................7
   2.4   First Debenture B ....................................................8

ARTICLE III REPRESENTATIONS AND WARRANTIES.....................................8
   3.1   Representations, Warranties and Agreements of the Company.............8
   3.2   Representations and Warranties of the Purchaser......................12

ARTICLE IV OTHER AGREEMENTS OF THE PARTIES....................................13
   4.1   Manner of Offering...................................................13
   4.2   Furnishing of Information............................................13
   4.3   Notice of Certain Events.............................................13
   4.4   Copies and Use of Disclosure Documents and Non-Public Filings........14
   4.5   Modification to Disclosure Documents.................................14
   4.6   Blue Sky Laws........................................................14
   4.7   Integration..........................................................14
   4.8   Furnishing of Rule 144(c) Materials..................................15
   4.9   Solicitation Materials...............................................15
   4.10  Subsequent Financial Statements......................................15
   4.11  Prohibition on Certain Actions.......................................15
   4.12  Listing of Common Stock..............................................15
   4.13  Escrow...............................................................16
   4.14  Converion Proceedures; Maintenance of Escrow Shares..................16
   4.15  Attorney-in-Fact.....................................................16
   4.16  Indemnification......................................................17
   4.17  Exclusivity..........................................................19
   4.18  Purchaser's Ownership of Common Stock................................19
   4.19  Purchaser's Rights if Trading in Common Stock is Suspended...........20
   4.20  No Violation of Applicable Law.......................................20
   4.21  Redemption Restrictions..............................................21
   4.22  No Other Registration Rights.........................................21
   4.23  Merger or Consolidation..............................................21
   4.24  Registration of Escrow Shares........................................22
   4.25  Liquidated Damages...................................................23
   4.26  Short Sales..........................................................24
   4.27  Fees.................................................................24
   4.28  Additional Fees......................................................24
   4.29  Changes to Federal and State Securities Laws.........................25
   4.30  Merger Agreement.....................................................25
   4.30  Future Financing.....................................................25
   4.30  Applicability of Agreements after Post-Offering......................25

                                       i

<PAGE>

ARTICLE V TERMINATION.........................................................26
   5.1   Termination by the Company or the Purchaser..........................26
   5.2   Remedies.............................................................27

ARTICLE VI LEGAL FEES AND DEFAULT INTEREST RATE...............................27

ARTICLE VII MISCELLANEOUS.....................................................27
   7.1   Fees and Expenses....................................................27
   7.2   Entire Agreement; Amendments.........................................28
   7.3   Notices..............................................................28
   7.4   Amendments; Waivers..................................................29
   7.5   Headings.............................................................29
   7.6   Successors and Assigns...............................................29
   7.7   No Third Party Beneficiaries.........................................29
   7.8   Governing Law; Venue; Service of Process.............................29
   7.9   Survival.............................................................29
   7.10  Counterpart Signatures...............................................30
   7.11  Publicity............................................................30
   7.12  Severability.........................................................30
   7.13  Limitation of Remedies...............................................30
   7.14  Omnibus Provision....................................................30

                                       ii

<PAGE>

         THIS CONVERTIBLE DEBENTURE PURCHASE AGREEMENT ("Agreement") is made and
entered  into  as  of  August  12,  2004,  between  Aciem  Management,  Inc.,  a
corporation  organized and existing under the laws of the State of New York (the
"Company"), and the purchaser(s) listed on SCHEDULE 1 hereto (the "Purchaser").

         WHEREAS,  subject  to the  terms  and  conditions  set  forth  in  this
Agreement,  the  Company  desires  to issue  and sell to the  Purchaser  and the
Purchaser desires to acquire from the Company (i) the Company's  $480,000,  1.5%
Convertible  Debentures,  due August 11,  2009 in the  aggregate  amount of Four
Hundred  Eighty  Thousand  Dollars  ($480,000),  at the aggregate  price of Four
Hundred Eighty Thousand Five Hundred Dollars  ($480,000) in the forms of EXHIBIT
A-1 ("First  Debenture A") and EXHIBIT A-2 ("First Debenture B"), annexed hereto
and made a part hereof (the "First  Debentures") and (ii) the Company's $20,000,
1.5% Convertible Debenture, due August 11, 2009, at the price of Twenty Thousand
Dollars ($20,000) in the form of EXHIBIT B annexed hereto and made a part hereof
(the "Second Debenture"; together, with the First Debentures, the "Debentures").

         IN CONSIDERATION  of the mutual covenants  contained in this Agreement,
the Company and each Purchaser agree as follows:

                                   ARTICLE I

                               CERTAIN DEFINITIONS

         1.1      Certain Definitions. As used in this Agreement, and unless the
context  requires a different  meaning,  the  following  terms have the meanings
indicated:

         "Affiliate"  means,  with  respect  to any  Person,  any  Person  that,
directly or  indirectly,  controls,  is controlled by or is under common control
with such Person.  For the purposes of this  definition,  "control"  (including,
with correlative  meanings,  the terms "controlled by" and "under common control
with") shall mean 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.

         "Agreement"  shall  have the  meaning  set  forth  in the  introductory
paragraph of this Agreement.

         "Attorney-in-Fact"   shall  have  the  meaning  set  forth  in  Section
2.2(a)(iv) hereof.

         "Business Day" means any day except Saturday,  Sunday and any day which
shall be a legal holiday or a day on which banking  institutions in the State of
New York are authorized or required by law or other government actions to close.

         "Closing" shall have the meaning set forth in Section 2.2(a).

         "Closing Date" shall have the meaning set forth in Section 2.2(a).

                                       1
<PAGE>

         "Commission" means the Securities and Exchange Commission.

         "Common Stock" means shares now or hereafter authorized of the class of
common stock,  par value $.001, of the Company and stock of any other class into
which such shares may hereafter have been reclassified or changed.

         "Company"  shall  have  the  meaning  set  forth  in  the  introductory
paragraph.

         "Control Person" shall have the meaning set forth in Section 4.16(a)(i)
hereof.

         "Conversion Date" shall have the meaning set forth in the Debentures.

         "Debenture  Notice"  shall have the meaning  set forth in Section  4.18
hereof.

         "Debentures" shall have the meaning set forth in the recital.

         "Default"  means any event or condition  which  constitutes an Event of
Default  or which  with the  giving of  notice  or lapse of time or both  would,
unless cured or waived, become an Event of Default.

         "Disclosure  Documents"  means (a) all documents and written  materials
provided to the Purchaser  and/or its  representatives  in  connection  with the
Company  and  this  offering,  including,  but not  limited  to,  the  Company's
unaudited  balance  sheet as at December 31, 2003 and profit and loss  statement
for the  period  from  inception  to  December  31,  2003 and (b) the  Schedules
required  to be  furnished  to the  Purchaser  by or on  behalf  of the  Company
pursuant to Section 3.1 hereof.

         "Effective  Date"  shall mean the date on which  certificate  of merger
(the  "Certificate  of  Merger")  annexed  as EXHIBIT D hereto is filed with the
Secretary  of  State  of the  State of New York to  effect  the  merger  of SCRH
Acquisition  Corp.  ("Acquistion"),  a New York  corporation  and a wholly owned
subsidiary of Scores Holding Company,  Inc. ("SCRH"),  a Utah corporation,  with
and into the Company (the "Merger")  pursuant to the Merger Agreement annexed as
EXHIBIT C hereto.

         "Escrow Agent" means  Gottbetter & Partners,  488 Madison Avenue,  12th
Floor, New York, NY 10022; Tel: 212-400-6900; Fax: 212-400-6901.

         "Escrow  Agreement"  shall have the meaning  set forth in Section  4.13
hereof.

         "Escrow  Shares"  means the  certificates  representing  Sixty  Million
(60,000,000) shares of duly issued Common Stock,  without restriction and freely
tradable  pursuant to Rule 504 of  Regulation  D of the  Securities  Act, in the
share  denominations  specified by the Purchaser,  registered in the name of the
Purchaser and/or its assigns to be held in escrow pursuant to this Agreement and
the Escrow Agreement.

         "Event of Default" shall have the meaning set forth in Section 5.1.

                                       2
<PAGE>

         "Exchange Act" means the Securities Exchange Act of 1934, as amended.

         "Execution Date" means the date of this Agreement first written above.

         "First Debentures" shall have the meaning set forth in the recitals.

         "Full  Conversion  Shares"  shall have the meaning set forth in Section
4.14(b) hereof.

         "G&P" means Gottbetter & Partners, LLP.

         "Indemnified Party" shall have the meaning set forth in Section 4.16(b)
hereof.

         "Indemnifying  Party"  shall  have the  meaning  set  forth in  Section
4.16(b) hereof.

         "Limitation on Conversion"  shall have the meaning set forth in Section
4.18 hereof.

         "Losses" shall have the meaning set forth in Section 4.16(a) hereof.

         "Lump Sum  Payment"  shall have the meaning  set forth in Section  4.31
hereof.

         "Material"  shall  mean  having a  financial  consequence  in excess of
$100,000.

         "Material  Adverse  Effect" shall have the meaning set forth in Section
3.1(e).

         "Maximum  Share  Limit"  shall  have the  meaning  set forth in Section
4.14(c).

         "Merger  Agreement" means the Merger Agreement among SCRH,  Acquisition
and the Company, annexed as EXHIBIT C hereto.

         "NASD" means the National Association of Securities Dealers, Inc.

         "Nasdaq" shall mean the Nasdaq Stock Market, Inc.(R)

         "Non-Public  Filings"  shall have the  meaning set forth in Section 4.2
hereof.

         "Note" shall have the meaning set forth in Section 2.1(b)(ii) hereof.

         "Notice of Conversion"  shall have the meaning set forth in paragraph 1
of EXHIBIT E annexed hereto.

         "Original  Issuance  Date,"  shall  have the  meaning  set forth in the
Debentures.

         "OTCBB"  shall mean the NASD  over-the  counter  Bulletin  Board(R)  or
similar organization or agency succeeding to its functions.

                                       3
<PAGE>

         "Per Share Market  Value" of the Common  Stock means on any  particular
date (a) the last sale  price of  shares of Common  Stock on such date or, if no
such sale takes place on such date, the last sale price on the most recent prior
date, in each case as officially  reported on the principal national  securities
exchange on which the Common Stock is then listed or admitted to trading, or (b)
if the Common  Stock is not then listed or  admitted to trading on any  national
securities  exchange,  the closing bid price per share as reported by Nasdaq, or
(c) if the Common Stock is not then listed or admitted to trading on the Nasdaq,
the closing bid price per share of the Common  Stock on such date as reported on
the OTCBB or if there is no such price on such date,  then the last bid price on
the date nearest  preceding  such date, or (d) if the Common Stock is not quoted
on the OTCBB,  the closing bid price for a share of Common Stock on such date in
the  over-the-counter  market as  reported  by the  Pinksheets  LLC (or  similar
organization  or agency  succeeding to its functions of reporting  prices) or if
there is no such price on such date, then the last bid price on the date nearest
preceding such date, or (e) if the Common Stock is not publicly traded, the fair
market value of a share of the Common Stock as  determined  by an Appraiser  (as
defined in and pursuant to the procedures  set forth in Section  4(c)(iv) of the
Debentures)  selected  in  good  faith  by  the  holders  of a  majority  of the
Debentures;   provided,   however,  that  the  Company,  after  receipt  of  the
determination  by such  Appraiser,  shall have the right to select an additional
Appraiser, in which case, the fair market value shall be equal to the average of
the determinations by each such Appraiser.

         "Person"  means an individual  or a  corporation,  partnership,  trust,
incorporated or  unincorporated  association,  joint venture,  limited liability
company, joint stock company,  government (or an agency or political subdivision
thereof) or other entity of any kind.

         "Post-Closing" shall have the meaning set forth in Section 2.3(a).

         "Post-Closing Date" shall have the meaning set forth in Section 2.3(a).

         "Power of Attorney"  means the power of attorney in the form of EXHIBIT
G annexed hereto.

         "Proceeding" means an action, claim, suit,  investigation or proceeding
(including,  without limitation, an investigation or partial proceeding, such as
a deposition), whether commenced or threatened.

         "Purchase Price" shall have the meaning set forth in Section 2.1(a).

         "Purchaser"  shall  have the  meaning  set  forth  in the  introductory
paragraph.

         "Registrable  Securities"  means the  Underlying  Shares and the Escrow
Shares entitled to registration pursuant to Section 4.24 and Section 4.29.

         "Reporting  Issuer"  means a company  that is subject to the  reporting
requirements of Section 13 or 15(d) of the Exchange Act.

         "Required  Approvals"  shall  have the  meaning  set  forth in  Section
3.1(f).

                                       4
<PAGE>

         "Restriction  Period"  shall  have the  meaning  set  forth in  Section
4.17(a).

         "Second Debenture" shall have the meaning set forth in the recital.

         "Securities" means the Debentures, the Underlying Shares and the Escrow
Shares.

         "SEC" means the Securities and Exchange Commission.

         "Securities Act" means the Securities Act of 1933, as amended.

         "Short Sale" shall have the meaning set forth in Section 4.26 hereof.

         "Successors-in-Interest"  shall have the  meaning  set forth in Section
4.31 hereof.

         "Trading  Day" means (a) a day on which the  Common  Stock is quoted on
the Nasdaq,  the OTCBB or the principal stock exchange on which the Common Stock
has been  listed,  or (b) if the Common  Stock is not quoted on the Nasdaq,  the
OTCBB or any stock  exchange,  a day on which the Common  Stock is quoted in the
over-the-counter  market,  as  reported  by the  Pinksheets  LLC (or any similar
organization or agency succeeding its functions of reporting prices).

         "Transaction  Documents"  means this  Agreement  and all  exhibits  and
schedules hereto and all other agreements executed pursuant to this Agreement.

         "Underlying  Shares"  means the  shares of duly  issued  Common  Stock,
without  restriction and freely tradable pursuant to Rule 504 of Regulation D of
the Securities  Act, into which the First  Debentures  and Second  Debenture are
convertible in accordance  with the terms hereof,  the First  Debentures and the
Second Debenture.

                                   ARTICLE II

                   PURCHASE AND SALE OF CONVERTIBLE DEBENTURES

         2.1      Purchase and Sale; Purchase Price.

                  (a)      Subject to the terms and conditions set forth herein,
the Company shall issue and sell and the Purchaser  shall  purchase an aggregate
principal  amount of Five Hundred  Thousand  Dollars  ($500,000)  (the "Purchase
Price")  of the  Debentures,  of which  Four  Hundred  Eighty  Thousand  Dollars
($480,000)  shall be  attributable  to the First  Debentures and Twenty Thousand
Dollars ($20,000) shall be attributable to the Second Debenture.  The Debentures
shall have the respective rights, preferences and privileges as set forth in the
respective Debentures annexed as EXHIBIT A-1, EXHIBIT A-2 and EXHIBIT B hereto.

                                       5
<PAGE>

                  (b)      The Purchase Price shall be paid and  attributable as
follows:

                           (i)      for the First Debenture A  substantially  in
         the form of  EXHIBIT  A-1  annexed  hereto  cash in the  amount  of Two
         Hundred Thirty Thousand Dollars ($230,000);

                           (ii)     for the First  Debenture  B, one  promissory
         note of the  Purchaser  in the  aggregate  amount of Two Hundred  Fifty
         Thousand Dollars  ($250,000)  annexed hereto as EXHIBIT K (the "Note"),
         to be paid in accordance with the terms of the Note; and

                           (iii)    for the Second  Debenture  substantially  in
         the form of EXHIBIT B, cash in the  amount of Twenty  Thousand  Dollars
         ($20,000).

         2.2      Execution and Delivery of Documents; The Closing.

                  (a)      The  Closing  of  the   purchase   and  sale  of  the
Debentures (the "Closing")  shall take place  simultaneously  with the execution
and delivery of this Agreement (the "Closing Date"). On the Closing Date,

                           (i)      the  parties  shall  execute and deliver the
         Escrow Agreement to the Escrow Agent;

                           (ii)     the Company  shall  deliver to the Purchaser
         the (A)  the  Disclosure  Documents,  (B) a duly  executed  copy of the
         Merger  Agreement and (B) the legal  opinions of counsel to the Company
         substantially  in the form of EXHIBIT H and  EXHIBIT I annexed  hereto,
         addressed to the Purchaser and dated the date hereof;

                           (iii)    the  Company  shall  deliver  to the  Escrow
         Agent (A) original and duly  executed  Debentures  (First  Debenture A,
         First Debenture B and the Second  Debenture)  registered in the name of
         the Purchaser and/or its assigns in the amount set forth in SCHEDULE 1,
         (B)  an  original  and  duly   executed   Power  of  Attorney  and  (C)
         certificates representing the original Escrow Shares;

                           (iv)     the Company shall execute and deliver to the
         Purchaser a certificate of its Chief Executive Officer,  in the form of
         EXHIBIT J annexed hereto, certifying that attached thereto is a copy of
         resolutions  duly  adopted  by the Board of  Directors  of the  Company
         authorizing   the  Company  to  execute  and  deliver  the  Transaction
         Documents and to enter into the transactions  contemplated  thereby and
         the   appointment,   pursuant   to   Section   4.14   hereof,   of  the
         attorney-in-fact pursuant to the Power of Attorney annexed as EXHIBIT F
         hereto (the "Attorney-in-Fact"); and

                           (v)      the  Purchaser  shall  deliver to the Escrow
         Agent the Purchase Price by (A) wire transfer of immediately  available
         funds in the amount of Two Hundred Fifty Thousand  ($250,000)  pursuant
         to written wire transfer instructions  delivered by the Escrow Agent to
         the Purchaser at least three (3) Business Days prior to the Closing and
         (B) delivery of the original executed Note.

                                       6
<PAGE>

                  (b)      If this  Agreement is terminated  pursuant to Section
5.1 hereof,  then,  within two (2) Business  Days from the date of  termination,
either the Company or the Purchaser shall notify the Escrow Agent of same, and

                           (i)      the  Escrow  Agent  shall,  within  two  (2)
         Business Days of its receipt of such notice,

                                    (A)      return  the  Purchase  Price to the
                  Purchaser;

                                    (B)      return the Note to the Purchaser;

                                    (C)      return   the   Debentures   to  the
                  Company; and

                                    (D)      return  the  Escrow  Shares  to the
                  Company.

         2.3      The Post-Closing.

                  (a)      The  post-closing  of the  purchase  and  sale of the
Debentures (the "Post-Closing") shall take place immediately after the Effective
Date (the  "Post-Closing  Date") at the offices of  Gottbetter  & Partners,  488
Madison  Avenue,  New  York,  NY  10022;  provided,  however,  that  all  of the
transactions  contemplated by the Merger  Agreement  annexed as EXHIBIT C hereto
shall have been consummated in accordance with the terms of the Merger Agreement
prior to the Post-Closing;  and further, provided, that the Post-Closing may not
occur later than ten (10) days after the Closing  Date  (except if such 10th day
is not a Business Day, then the next Business Day),  unless the Purchaser agrees
in writing in advance to an  extension,  which  writing  shall set forth the new
Post-Closing Date. The Merger Agreement shall be executed  immediately after the
Closing.

                  (b)      At the Post-Closing,

                           (i)      the  Escrow  Agent  shall   deliver  to  the
         Purchaser  and/or  its  assigns  an  original  and  duly  issued  First
         Debenture A and Second  Debenture,  each  registered in the name of the
         Purchaser  and  in  denominations  specified  by the  Purchaser  in the
         amounts  set forth in SCHEDULE 1 hereto or with  written  notice to the
         Escrow Agent prior to the Post-Closing ;

                           (ii)     the Company  shall  deliver to the Purchaser
         the following:

                                    (A)      certified copies of the Certificate
                  of Merger as filed with the Secretary of State of the State of
                  New York;

                                    (B)      a   certificate   in  the  form  of
                  EXHIBIT L annexed  hereto,  dated  the  Post-Closing  Date and
                  signed by the  Secretary of the Company,  certifying  (1) that
                  attached thereto are true,  correct and complete copies of (a)
                  the Company's Certificate of Incorporation,  as amended to the
                  date  thereof,  (b) the Company's  by-laws,  as amended to the
                  date thereof,  and (c) a certificate of good standing from the
                  Secretary of State of New York and (2) the  incumbency  of the
                  officer executing this Agreement;

                                       7
<PAGE>

                                    (C)      a  certificate   of  the  Company's
                  Chief Executive  Officer,  dated the Post-Closing Date, in the
                  form  of  EXHIBIT  M  annexed  hereto,   certifying  that  the
                  representations  and  warranties  of the Company  contained in
                  Article  III  hereof  are true  and  correct  in all  material
                  respects on the Post-Closing Date (except for  representations
                  and  warranties   that  speak  of  a  specific   date,   which
                  representations  and  warrants  shall  be  true,  correct  and
                  complete in all material respects as of such date); and

                                    (D)      all  other  documents,  instruments
                  and writings required to have been delivered by the Company at
                  or prior to the Post-Closing pursuant to this Agreement.

                  (c)      Upon  receipt  by the  Purchaser  of those  items set
forth in Sections  2.3(b)(i)  through (ii) above, the Escrow Agent shall as soon
as practicable deliver the following to or on behalf of SCRH, as applicable:

                           (i)      the  Purchase  Price,  (A)  attributable  to
         First  Debenture  A and  the  Second  Debenture,  by wire  transfer  of
         immediately available funds in the amount of Two Hundred Fifty Thousand
         Dollars  ($250,000),   minus  all  fees  and  expenses  due  under  the
         Transaction  Documents,  to SCRH  pursuant  to  written  wire  transfer
         instructions  delivered  by SCRH to the Escrow Agent at least three (3)
         Business Days prior to the  Post-Closing  Date and (B)  attributable to
         First  Debenture  B by delivery of the  original  executed  Note to the
         promisee of the Note; and

                           (ii)     all  documents,  instruments,  and  writings
         required  to have  been  delivered  or  necessary  at or  prior  to the
         Post-Closing by the Purchaser pursuant to this Agreement.

                  (d)      The  Escrow  Agent  shall  retain and hold the Escrow
Shares and the First  Debenture B, all of which shall be held in accordance with
the terms of this Agreement, the Note and the Escrow Agreement.

         2.4      First  Debenture B. Subject to Section 4.28,  the Escrow Agent
will hold the First Debenture B in escrow until either (i) the obligations under
the Note by its terms becomes due and payable and  subsequently  paid in full by
the Purchaser,  whereupon the Escrow Agent will deliver the First Debenture B to
the  Purchaser  or (ii) the  obligations  under the Note expire under its terms,
whereupon  the  First   Debenture  B  will  be  delivered  to  the  Company  for
cancellation.

                                  ARTICLE III

                         REPRESENTATIONS AND WARRANTIES

         3.1      Representations, Warranties and Agreements of the Company. The
Company  hereby  makes  the  following  representations  and  warranties  to the
Purchaser, all of which shall survive the Post-Closing;

                  (a)      Organization and  Qualification.  The  Company  is  a
corporation, duly incorporated,  validly existing and in good standing under the
laws of the State of New York, with the requisite  corporate power and authority

                                       8
<PAGE>

to own and use its  properties  and  assets  and to  carry  on its  business  as
currently  conducted.  The  Company  has no  subsidiaries.  The  Company is duly
qualified to do business  and is in good  standing as a foreign  corporation  in
each  jurisdiction  in which the nature of the  business  conducted  or property
owned by it makes such qualification  necessary,  except where the failure to be
so qualified or in good standing, as the case may be, would not, individually or
in the aggregate,  have a material  adverse effect on the results of operations,
assets,  prospects,  or financial condition of the Company,  taken as a whole (a
"Material Adverse Effect").

                  (b)      Authorization,   Enforcement.  The  Company  has  the
requisite  corporate  power and  authority to enter into and to  consummate  the
transactions  contemplated hereby and by each other Transaction  Document and to
otherwise to carry out its obligations  hereunder and thereunder.  The execution
and delivery of this  Agreement and each of the other  Transaction  Documents to
which  it is a  party  by  the  Company  and  the  consummation  by  it  of  the
transactions  contemplated  hereby and thereby have been duly  authorized by all
necessary action on the part of the Company.  Each of this Agreement and each of
the other Transaction  Documents to which it is a party has been or will be duly
executed by the Company and when  delivered in accordance  with the terms hereof
or thereof  will  constitute  the valid and  binding  obligation  of the Company
enforceable  against the Company in  accordance  with its terms,  except as such
enforceability   may  be   limited   by   applicable   bankruptcy,   insolvency,
reorganization,   moratorium,  liquidation  or  similar  laws  relating  to,  or
affecting  generally the  enforcement of,  creditors'  rights and remedies or by
other equitable principles of general application.

                  (c)      Capitalization.    The    authorized,    issued   and
outstanding  capital  stock of the Company is set forth on SCHEDULE  3.1(C).  No
Debentures have been issued as of the date hereof. No shares of Common Stock are
entitled to preemptive or similar rights,  nor is any holder of the Common Stock
entitled  to  preemptive  or similar  rights  arising  out of any  agreement  or
understanding with the Company by virtue of this Agreement.  Except as described
in this  Agreement,  or disclosed in SCHEDULE  3.1(C),  there are no outstanding
options, voting agreements or merger agreements, arrangements, warrants, script,
rights  to  subscribe  to,  registration  rights,  calls or  commitments  of any
character  whatsoever  relating  to, or,  except as a result of the purchase and
sale of the Debentures hereunder,  securities, rights or obligations convertible
into or  exchangeable  for, or giving any person any right to  subscribe  for or
acquire,  any  shares  of  Common  Stock  or  other  securities,  or  contracts,
commitments,  understandings,  or  arrangements  by which the  Company is or may
become bound to issue additional shares of Common Stock or other securities,  or
securities or rights  convertible or exchangeable into shares of Common Stock or
other  securities.  The Company is not in violation of any of the  provisions of
its Certificate of Incorporation, bylaws or other charter documents.

                  (d)      Issuance of Securities. The Debentures and the Escrow
Shares  have been  duly and  validly  authorized  for  issuance,  offer and sale
pursuant to this Agreement and, when issued and delivered as provided  hereunder
or in the Debentures against payment in accordance with the terms hereof,  shall
be valid and binding  obligations of the Company enforceable against the Company
in  accordance  with their  respective  terms.  The Company has and at all times
while the  Debentures  are  outstanding  will  continue  to maintain an adequate
reserve of shares of Common Stock to enable it to perform its obligations  under
this  Agreement  and  the  Debentures  except  as  otherwise  permitted  in this
Agreement or the Debentures. When issued in accordance with the terms hereof and

                                       9
<PAGE>

the Debentures,  the Securities will be duly authorized,  validly issued,  fully
paid and  non-assessable.  Except as set forth in  SCHEDULE  3.1(D) or  SCHEDULE
3.1(C) hereto, there is no equity,  equity equivalent  security,  debt or equity
lines of credit  outstanding  that is  substantially  similar to the Debentures,
including any security having a floating conversion substantially similar to the
Debentures;  provided,  however,  that,  except,  as otherwise  provided herein,
nothing  contained in this Section  3.1(d) shall be deemed to permit the Company
to issue any convertible security or instrument or equity line of credit.

                  (e)      No Conflicts. The execution, delivery and performance
of this  Agreement  and the other  Transaction  Documents by the Company and the
consummation by the Company of the transactions  contemplated hereby and thereby
do not  and  will  not  (i)  conflict  with  or  violate  any  provision  of its
Certificate of Incorporation or bylaws (each as amended through the date hereof)
or (ii) be subject  to  obtaining  any of the  consents  referred  to in Section
3.1(f), conflict with, or constitute a default (or an event which with notice or
lapse of time or both  would  become a  default)  under,  or give to others  any
rights  of  termination,   amendment,   acceleration  or  cancellation  of,  any
agreement,  indenture or  instrument  to which the Company is a party,  or (iii)
result in a violation of any law, rule, regulation, order, judgment, injunction,
decree or other restriction of any court or governmental  authority to which the
Company is subject (including,  but not limited to, those of other countries and
the federal and state securities laws and regulations), or by which any property
or asset of the Company is bound or affected, except in the case of clause (ii),
such conflicts, defaults, terminations, amendments, accelerations, cancellations
and violations as would not,  individually or in the aggregate,  have a Material
Adverse Effect.  The business of the Company is not being conducted in violation
in any material respect of any law,  ordinance or regulation of any governmental
authority.

                  (f)      Consents  and  Approvals.  Other than the approval of
its board of directors and stockholders, which have been obtained, and Except as
specifically set forth in SCHEDULE 3.1(F), the Company is not required to obtain
any  consent,  waiver,  authorization  or  order  of,  or  make  any  filing  or
registration   with,  any  court  or  other  federal,   state,  local  or  other
governmental  authority  or other  Person  in  connection  with  the  execution,
delivery and  performance by the Company of this Agreement and each of the other
Transaction  Documents,  except for the filing of the Certificate of Merger with
the Secretary of State of the State of New York to effect the Merger pursuant to
the Merger Agreement,  which shall be filed no later than ten (10) days from the
Closing Date  (together  with the  consents,  waivers,  authorizations,  orders,
notices and filings referred to in SCHEDULE 3.1(F), the "Required Approvals").

                  (g)      Litigation;   Proceedings.   Except  as  specifically
disclosed in SCHEDULE  3.1(G),  there is no action,  suit,  notice of violation,
proceeding or  investigation  pending or, to the best  knowledge of the Company,
threatened  against the Company or any of its properties before or by any court,
governmental or administrative  agency or regulatory authority (federal,  state,
county,  local or foreign)  which (i)  relates to or  challenges  the  legality,
validity or enforceability of any of the Transaction  Documents,  the Debentures
and the Underlying Shares (ii) could,  individually or in the aggregate,  have a
Material  Adverse  Effect  or (iii)  could,  individually  or in the  aggregate,
materially  impair the ability of the Company to perform fully on a timely basis
its obligations under the Transaction Documents.

                                       10
<PAGE>

                  (h)      No  Default  or  Violation.  Except  as set  forth in
SCHEDULE 3.1(H) hereto,  the Company (i) is not in default under or in violation
of any indenture,  loan or credit agreement or any other agreement or instrument
to which it is a party or by which it or any of its properties is bound,  except
such defaults or violations as do not have a Material  Adverse  Effect,  (ii) is
not in violation of any order of any court,  arbitrator  or  governmental  body,
except for such violations as do not have a Material Adverse Effect, or (iii) is
not  in  violation  of any  statute,  rule  or  regulation  of any  governmental
authority which could  (individually  or in the aggregate) (x) adversely  affect
the legality,  validity or enforceability of this Agreement, (y) have a Material
Adverse  Effect or (z) adversely  impair the Company's  ability or obligation to
perform fully on a timely basis its obligations under this Agreement.

                  (i)      Certain Fees.  No fees or commission  will be payable
by the Company to any investment  banker,  broker,  placement agent or bank with
respect to the  consummation of the transactions  contemplated  hereby except as
provided in Section 4.27 hereof.

                  (j)      Disclosure Documents.  The Disclosure Documents taken
as a whole are accurate in all  material  respects and do not contain any untrue
statement  of a material  fact or omit to state any material  fact  necessary in
order to make the statements made therein,  in light of the circumstances  under
which they were made, not misleading.

                  (k)      Manner  of   Offering.   Assuming   the   Purchaser's
representations and warranties contained in Section 3.2 are true and correct (a)
the Securities are being offered and sold to the Purchaser without  registration
under the Securities Act in a private placement that is exempt from registration
pursuant  to  Rule  504  of  Regulation  D of the  Securities  Act  and  without
registration under the Minnesota Revised Statues,  1986 (the "Minnesota Act") in
reliance upon the exemption provided by Section  80A.15.2(a)(1) of the Minnesota
Act; and (b)  accordingly,  the Securities are being issued without  restriction
and may be freely traded  pursuant to Rule 504 of Regulation D of the Securities
Act.

                  (l)      Non-Registered Offering.  Neither the Company nor any
Person  acting  on its  behalf  has taken or will  take any  action  (including,
without  limitation,  any  offering  of  any  securities  of the  Company  under
circumstances  which would  require the  integration  of such  offering with the
offering of the  Securities  under the  Securities  Act) which might subject the
offering, issuance or sale of the Securities to the registration requirements of
Section 5 of the Securities Act.

                  (m)      Not a Reporting Company; Eligibility to use Exemption
under  504(b).  The  Company is not  subject to the  reporting  requirements  of
Section 13 or Section  15(d) of the  Exchange  Act. The Company has not sold any
securities under Rule 504(b) in the last twelve months.  The Company is eligible
to issue securities exempt from registration  pursuant to Rule 504 of Regulation
D  promulgated  under the  Securities  Act. The Company is a  development  stage
company  that has a  specific  business  plan that is other  than to engage in a
merger or acquisition with an unidentified company or companies.

                  (n)      No   Undisclosed   Liabilities.    Except   for   the
transactions contemplated in this Agreement and the Merger Agreement,  there are
no  material  liabilities  of  OS,  whether  absolute,  accrued,  contingent  or
otherwise.

                                       11
<PAGE>

The Purchaser  acknowledges and agrees that the Company makes no  representation
or warranty with respect to itself or the transactions contemplated hereby other
than those specifically set forth in Section 3.1 hereof.

         3.2      Representations and Warranties of the Purchaser. The Purchaser
hereby represents and warrants to the Company as follows:

                  (a)      Organization;  Authority.  The Purchaser is a limited
liability company,  duly organized,  validly existing and in good standing under
the laws of Minnesota  with the requisite  power and authority to enter into and
to consummate the transactions  contemplated hereby and by the other Transaction
Documents and otherwise to carry out its  obligations  hereunder and thereunder.
The acquisition of the Debentures to be purchased by the Purchaser hereunder has
been duly authorized by all necessary action on the part of the Purchaser.  This
Agreement has been duly executed and delivered by the Purchaser and  constitutes
the valid and legally binding obligation of the Purchaser,  enforceable  against
it in accordance with its terms, except as such enforceability may be limited by
applicable bankruptcy,  insolvency,  reorganization,  moratorium or similar laws
relating to, or affecting  generally the  enforcement of,  creditors  rights and
remedies or by other general principles of equity.

                  (b)      Investment  Intent.  The  Purchaser is acquiring  the
Debentures  to be purchased  by it  hereunder,  and will acquire the  Underlying
Shares relating to such Debentures,  for its own account for investment purposes
only and not with a view to or for  distributing or reselling such Debentures or
Underlying  Shares or any part thereof or interest therein,  without  prejudice,
however, to such Purchaser's right, subject to the provisions of this Agreement,
at all times to sell or otherwise  dispose of all or any part of such Debentures
or Underlying Shares in compliance with applicable  federal and state securities
laws.

                  (c)      Purchaser  Status.  At the  time  the  Purchaser  was
offered  the  Debentures  to be acquired  by it  hereunder,  it was, at the date
hereof it is and at the  Post-Closing  it will be an  "accredited  investor"  as
defined in Rule 501(a) under the Securities Act.  Purchaser is a resident in the
State of Minnesota and no other jurisdiction.

                  (d)      Experience of Purchaser. The Purchaser,  either alone
or together with its  representatives,  has such knowledge,  sophistication  and
experience in business and  financial  matters so as to be capable of evaluating
the merits and risks of an  investment  in the  Securities  to be acquired by it
hereunder, and has so evaluated the merits and risks of such investment.

                  (e)      Ability of Purchaser to Bear Risk of Investment.  The
Purchaser is able to bear the economic risk of an  investment in the  Securities
to be acquired by it  hereunder  and, at the present  time,  is able to afford a
complete loss of such investment.

                  (f)      Prohibited   Transactions.   The   securities  to  be
acquired  by the  Purchaser  hereunder  are  not  being  acquired,  directly  or
indirectly,  with the assets of any "employee  benefit plan," within the meaning
of Section 3(3) of the  Employment  Retirement  Income  Security Act of 1974, as
amended.

                  (g)      Access to  Information.  The  Purchaser  acknowledges
receipt of the Disclosure  Documents and further  acknowledges  that it has been
afforded (i) the  opportunity to ask such  questions as it has deemed  necessary

                                       12
<PAGE>

of, and to receive answers from,  representatives  of the Company concerning the
terms and  conditions of the Securities and the merits and risks of investing in
the Securities;  (ii) access to information  about the Company and the Company's
financial condition, results of operations, business, properties, management and
prospects  sufficient to enable it to evaluate its investment in the Securities;
and (iii)  the  opportunity  to obtain  such  additional  information  which the
Company possesses or can acquire without  unreasonable effort or expense that is
necessary to make an informed investment decision with respect to the investment
and to verify the accuracy and completeness of the information  contained in the
Disclosure Documents.

                  (h)      Reliance.  The Purchaser understands and acknowledges
that (i) the Debentures being offered and sold to it hereunder are being offered
and sold without  registration  under the Securities Act in a private  placement
that is exempt from the registration provisions of the Securities Act under Rule
504 of Regulation D under the Securities Act and (ii) the  availability  of such
exemption  depends in part on, and that the Company  will rely upon the accuracy
and  truthfulness  of, the foregoing  representations  and such Purchaser hereby
consents to such reliance.

         The  Company  acknowledges  and  agrees  that  the  Purchaser  makes no
representations  or  warranties  with respect to the  transactions  contemplated
hereby other than those specifically set forth in this Section 3.2.

                                   ARTICLE IV

                         OTHER AGREEMENTS OF THE PARTIES

         4.1      Manner of Offering.  The Securities are being issued  pursuant
to Rule 504 (b) of Regulation D of the Securities  Act. The  Securities  will be
exempt from restrictions on transfer,  and will carry no restrictive legend with
respect to the exemption from registration under the Securities Act. The Company
will  use its best  efforts  to  insure  that it takes  no  actions  that  would
jeopardize the availability of the exemption from registration under Rule 504(b)
for the Securities and, if for any reason such exemption becomes unavailable due
to the  Company's  action  or  failure  to act,  the  Company  shall  cause  the
Securities  to be  registered  under the  Securities  Act as required by Section
4.29.

         4.2      Furnishing of  Information.  As long as the Purchaser owns any
of the  Securities,  and unless and until the  Securities are assumed by SCRH or
the Company becomes subject to the reporting requirements under Section 13(a) or
15(b) of the Exchange  Act, the Company will  promptly  furnish to the Purchaser
financial  information  similar to that  required  to be  reported in annual and
quarterly reports  comparable to those required by Section 13(a) or 15(d) of the
Exchange Act (the "Non-Public Filings").

         4.3      Notice of Certain  Events.  The Company shall, on a continuing
basis,  as long as the  Purchaser  owns any of the  Securities,  (i)  advise the
Purchaser  promptly  after  obtaining  knowledge  of, and, if  requested  by the
Purchaser,  confirm  such  advice in writing,  of (A) the  issuance by any state
securities  commission  of  any  stop  order  suspending  the  qualification  or

                                       13
<PAGE>

exemption  from  qualification  of the  Securities,  for offering or sale in any
jurisdiction,  or the initiation of any proceeding for such purpose by any state
securities commission or other regulatory authority, or (B) any event that makes
any  statement  of a material  fact made by the Company in Section 3.1 or in the
Disclosure  Documents  untrue or that requires the making of any additions to or
changes  in  Section  3.1 or in the  Disclosure  Documents  in order to make the
statements  therein,  in each case at the time such  Disclosure  Documents  were
delivered to the  Purchaser  and in the light of the  circumstances  under which
they were  made,  not  misleading,  (ii) use its  commercially  reasonable  best
efforts to  prevent  the  issuance  of any stop  order or order  suspending  the
qualification or exemption from  qualification of the Securities under any state
securities  or Blue Sky  laws,  and  (iii) if at any time any  state  securities
commission or other  regulatory  authority  shall issue an order  suspending the
qualification  or exemption from  qualification of the Securities under any such
laws, use its  commercially  reasonable best efforts to obtain the withdrawal or
lifting of such order at the earliest possible time.

         4.4      Copies and Use of Disclosure Documents and Non-Public Filings.
The Company (or, following the Post-Closing,  SCRH) shall furnish the Purchaser,
without  charge,  as many copies of the Disclosure  Documents and the Non-Public
Filings  and  any  amendments  or  supplements  thereto  as  the  Purchaser  may
reasonably request.  The Company consents to the use of the Disclosure Documents
and the Non-Public  Filings and any amendments and supplements to any of them by
the Purchaser in connection with resales of the Securities.

         4.5      Modification to Disclosure Documents. If any event shall occur
as a  result  of  which,  in  the  reasonable  judgment  of the  Company  or the
Purchaser,  it becomes  necessary or advisable to amend or supplement any of the
Disclosure  Documents or the Non-Public  Filings in order to make the statements
therein,  at the time such Disclosure  Documents or the Non-Public  Filings were
delivered to the  Purchaser  and in the light of the  circumstances  under which
they  were  made,  not  misleading,  or if it  becomes  necessary  to  amend  or
supplement any of the Disclosure  Documents or the Non-Public  Filings to comply
with  applicable  law,  the  Company  shall as soon as  practicable  prepare  an
appropriate  amendment or supplement to each such document in form and substance
reasonably  satisfactory  to both the  Purchaser  and  Company so that (i) as so
amended or supplemented, each such document will not include an untrue statement
of material fact or omit to state a material fact necessary in order to make the
statements therein, in the light of the circumstances existing at the time it is
delivered to the Purchaser, not misleading and (ii) the Disclosure Documents and
the Non-Public Filings will comply with applicable law in all material respects.

         4.6      Blue Sky Laws. The Company shall  cooperate with the Purchaser
in connection with the exemption from  registration of the Securities  under the
securities or Blue Sky laws of such  jurisdictions as the Purchaser may request;
provided,  however,  that  the  Company  shall  be not  required  in  connection
therewith  to (a)  qualify  as a foreign  corporation  where they are not now so
qualified,  or (b)  submit to  taxation  or  general  service of process in such
jurisdiction.  The Company  agrees that it will execute all necessary  documents
and pay all necessary  state filing or notice fees to enable the Company to sell
the Securities to the Purchaser.

         4.7      Integration.  The  Company  shall  not and  shall use its best
efforts to ensure that no Affiliate shall sell, offer for sale or solicit offers
to buy or otherwise  negotiate in respect of any security (as defined in Section
2 of the Securities  Act) that would be integrated with the offer or sale of the
Securities in a manner that would require the registration  under the Securities
Act of the sale of the Securities to the Purchaser.

                                       14
<PAGE>

         4.8      Furnishing of Rule 144(c) Materials. The Company shall, for so
long as any of the Securities remain  outstanding and during any period in which
the  Company is not  subject to Section 13 or 15(d) of the  Exchange  Act,  make
available to any registered holder of the Securities  ("Holder" or "Holders") in
connection  with  any  sale  thereof  and  any  prospective  purchaser  of  such
Securities from such Person,  such information in accordance with Rule 144(c)(2)
promulgated under the Securities Act as is required to sell the Securities under
Rule 144 promulgated under the Securities Act.

         4.9      Solicitation  Materials.  The Company shall not (i) distribute
any  offering  materials  in  connection  with  the  offering  and  sale  of the
Debentures or the Underlying Shares other than the Disclosure  Documents and any
amendments  and  supplements  thereto  prepared in  compliance  herewith or (ii)
solicit  any offer to buy or sell the  Debentures  or the  Underlying  Shares by
means of any form of general solicitation or advertising.

         4.10     Subsequent  Financial  Statements.  (a) Until the Post-Closing
Date,  if  not  otherwise  publicly  available,  upon  the  written  request  of
Purchaser,  the Company  shall  promptly  furnish to the Purchaser a copy of all
financial  statements  for any period  subsequent  to the period  covered by the
financial  statements  included  in the  Disclosure  Documents  until  the  full
conversion of the Debentures.

                  (b)      After  the   Post-Closing   Date,  if  not  otherwise
publicly  available,  upon written  request of  Purchaser,  SCRH shall  promptly
furnish to the Purchaser a copy of all financial statements relating to SCRH for
any period subsequent to the period covered by the financial statements included
in the Disclosure Documents until the full conversion of the Debentures.

         4.11     Prohibition on Certain  Actions.  From the date hereof through
the Post-Closing  Date, the Company shall not, without the prior written consent
of the  Purchaser,  (i) amend its  certificate  or  articles  of  incorporation,
by-laws or other charter  documents so as to adversely  affect any rights of the
Purchaser;  (ii) split,  combine or reclassify  its  outstanding  capital stock;
(iii) declare,  authorize,  set aside or pay any dividend or other  distribution
with respect to the Common Stock; (iv) redeem, repurchase or offer to repurchase
or otherwise acquire shares of its Common Stock; or (v) enter into any agreement
with respect to any of the foregoing other than the Merger Agreement.

         4.12     Listing of Common Stock.  Until the Post-Closing  Date, if the
Common  Stock  shall  become  listed on the OTCBB or on  another  exchange,  the
Company shall (a) use its  commercially  reasonable best efforts to maintain the
listing of its Common  Stock on the OTCBB or such  other  exchange  on which the
Common Stock is then listed until expiration of each of the periods during which
the Debentures may be converted and (b) shall provide to the Purchaser  evidence
of such listing.  After the  Post-Closing  Date,  the references in this Section
4.12 to Company  and Common  Stock  shall be deemed  references  to SCRH and the
common stock of SCRH, respectively.

                                       15
<PAGE>

         4.13     Escrow.  The  Company and the  Purchaser  agree to execute and
deliver,  simultaneously with the execution and delivery of this Agreement,  the
escrow agreement  attached hereto and made part hereof as EXHIBIT F (the "Escrow
Agreement"),  and to issue into  escrow (A) the  certificates  to be held by the
Escrow  Agent,  registered  in  the  name  of  the  Purchaser  and  without  any
restrictive legend of any kind, pursuant to the terms of such escrow and (B) the
Note.

         4.14     Conversion  Procedures;  Maintenance  of  Escrow  Shares.  (a)
EXHIBIT E attached  hereto and made a part hereof sets forth the procedures with
respect to the  conversion of the  Debentures,  including the forms of Notice of
Conversion to be provided upon conversion  instructions as to the procedures for
conversion  and such other  information  and  instructions  as may be reasonably
necessary to enable the Purchaser or its permitted transferee(s) to exercise the
right of conversion smoothly and expeditiously.

                  (b)      The Company  agrees that, at any time the  conversion
price of the  Debentures  is such  that the  number  of  Escrow  Shares  for the
Debentures  is less than 200% of the number of shares of Common Stock that would
be needed to satisfy full conversion of all of such Debentures then outstanding,
given the then current  conversion  price (the "Full Conversion  Shares"),  upon
five (5) Business Days written notice of such circumstance to the Company by the
Purchaser  and/or the Escrow  Agent,  the Company shall issue  additional  share
certificates  in the name of the Purchaser  and/or its assigns in  denominations
specified by the Purchaser,  and deliver same to the Escrow Agent, such that the
new number of Escrow  Shares with respect to the  Debentures is equal to 200% of
the Full Conversion Shares.

                  (c)      Subject to Section  4.14(d),  the Purchaser shall not
be entitled to convert the First  Debenture A, First  Debenture B and the Second
Debenture into a number of shares of Common Stock  exceeding  10,000,000  Escrow
Shares (the "Maximum Shares Limit").

                  (d)      If the Per Share  Market Value of the Common Stock is
such  that the  aggregate  number of shares  of  Common  Stock  issued  and then
issuable upon conversion of the Debentures  would exceed  10,000,000  shares (as
adjusted for stock splits, reverse stock splits, and the like), then the Company
shall,  at its  option,  (a)  increase  the  Maximum  Share Limit to comply with
Section 4.14(b) or (b) redeem the unconverted  amount of the Debentures in whole
or in part at one hundred twenty five percent (125%) of the  unconverted  amount
of the Debentures being redeemed plus accrued interest thereon.

         4.15     Attorney-in-Fact.  To effectuate  the terms and  provisions of
this Agreement,  the Escrow Agreement and the Note, the Company hereby agrees to
give a power of attorney as is evidenced by EXHIBIT G annexed  hereto.  All acts
done under such power of attorney  are hereby  ratified and approved and neither
the  Attorney-in-Fact  nor any designee or agent thereof shall be liable for any
acts of commission or omission,  for any error of judgment or for any mistake of
fact or law, as long as the  Attorney-in-Fact  is operating  within the scope of
the  power of  attorney  and  this  Agreement  and its  exhibits.  The  power of
attorney,  being coupled with an interest, shall be irrevocable while any of the
Debentures  remain  unconverted  or any portion of this  Agreement or the Escrow
Agreement  remains  unsatisfied.   In  addition,  the  Company  shall  give  the
Attorney-in-Fact  resolutions  executed by the Board of Directors of the Company
which authorize transfers of the Debentures,  future issuances of the Underlying
Shares for the Debentures, and which resolutions state that they are irrevocable
while any of the Debentures remain unconverted, or any portion of this Agreement
or the Escrow Agreement remains unsatisfied.

                                       16
<PAGE>

         4.16     Indemnification.

                  (a)      Indemnification

                           (i)      The    Company    shall,     notwithstanding
         termination  of  this  Agreement,   indemnify  and  hold  harmless  the
         Purchaser  and  its   officers,   directors,   agents,   employees  and
         affiliates,  each Person who controls the Purchaser (within the meaning
         of Section 15 of the  Securities Act or Section 20 of the Exchange Act)
         (each such Person,  a "Control  Person") and the  officers,  directors,
         agents,  employees and affiliates of each such Control  Person,  to the
         fullest  extent  permitted by applicable  law, from and against any and
         all losses, claims,  damages,  liabilities,  costs (including,  without
         limitation,  costs of preparation and reasonable  attorneys'  fees) and
         expenses  (collectively,  "Losses"),  as  incurred,  arising out of, or
         relating  to, a breach or  breaches  of any  representation,  warranty,
         covenant or agreement by the Company under this  Agreement or any other
         Transaction Document.

                           (ii)     The   Purchaser    shall,    notwithstanding
         termination of this Agreement, indemnify and hold harmless the Company,
         its officers,  directors,  agents and employees, each Control Person of
         the Company and the officers,  directors,  agents and employees of each
         Control Person, to the fullest extent permitted by applicable law, from
         and  against  any and all  Losses,  as  incurred,  arising  out of,  or
         relating  to, a breach or  breaches  of any  representation,  warranty,
         covenant or  agreement  by the  Purchaser  under this  Agreement or any
         other Transaction Documents.

                  (b)      Conduct  of  Indemnification   Proceedings.   If  any
Proceeding shall be brought or asserted against any Person entitled to indemnity
hereunder (an "Indemnified Party"), such Indemnified Party promptly shall notify
the Person from whom indemnity is sought (the "Indemnifying  Party") in writing,
and the  Indemnifying  Party shall  assume the defense  thereof,  including  the
employment of counsel  reasonably  satisfactory to the Indemnified Party and the
payment of all fees and expenses  incurred in connection  with defense  thereof;
provided,  that the failure of any  Indemnified  Party to give such notice shall
not relieve the Indemnifying Party of its obligations or liabilities pursuant to
this  Agreement,  except  (and  only) to the  extent  that it  shall be  finally
determined  by a court of competent  jurisdiction  (which  determination  is not
subject to appeal or further  review) that such failure  shall have  proximately
and materially adversely prejudiced the Indemnifying Party.

         An Indemnified Party shall have the right to employ separate counsel in
any such]  Proceeding  and to  participate  in,  but not  control,  the  defense
thereof,  but the fees and expenses of such  counsel  shall be at the expense of
such Indemnified Party or Parties unless:  (1) the Indemnifying Party has agreed
to pay such fees and expenses;  or (2) the Indemnifying  Party shall have failed
promptly  to  assume  the  defense  of such  Proceeding  and to  employ  counsel
reasonably satisfactory to such Indemnified Party in any such Proceeding; or (3)
the named parties to any such Proceeding (including any impeded parties) include
both such  Indemnified  Party and the  Indemnifying  Party, and such Indemnified
Party shall have been  advised by counsel  that a conflict of interest is likely

                                       17
<PAGE>

to exist if the same counsel were to represent  such  Indemnified  Party and the
Indemnifying  Party (in which  case,  if such  Indemnified  Party  notifies  the
Indemnifying  Party in writing that it elects to employ separate  counsel at the
expense of the Indemnifying  Party,  the  Indemnifying  Party shall not have the
right to assume the defense of the claim against the Indemnified  Party but will
retain the right to control the overall Proceedings out of which the claim arose
and  such  counsel  employed  by  the  Indemnified  Party  shall  be  reasonably
acceptable  to  the  Indemnifying  Party  and  shall  be at the  expense  of the
Indemnifying  Party).  The  Indemnifying  Party  shall  not be  liable  for  any
settlement  of any such  Proceeding  effected  without its written  consent.  No
Indemnifying  Party shall,  without the prior written consent of the Indemnified
Party,  effect any settlement of any pending  Proceeding in respect of which any
Indemnified Party is a party,  unless such settlement  includes an unconditional
release of such  Indemnified  Party from all  liability  on claims  that are the
subject matter of such Proceeding, provided, however, the Indemnifying Party may
settle  or  compromise  any  asserted  liability  without  the  consent  of  the
Indemnitee so long as such settlement or compromise  releases the Indemnitee and
does not include any admission or statement of fault against the Indemnitee.

         All fees and expenses of the Indemnified Party to which the Indemnified
Party is  entitled  hereunder  (including  reasonable  fees and  expenses to the
extent  incurred in connection  with  investigating  or preparing to defend such
Proceeding in a manner not inconsistent  with this Section) shall be paid to the
Indemnified Party, as incurred,  within ten (10) Business Days of written notice
thereof to the Indemnifying Party.

         No right of indemnification  under this Section 4.16 shall be available
as to a particular Indemnified Party if there is a non-appealable final judicial
determination  that  such  Losses  arise  solely  or  substantially  out  of the
negligence or bad faith of such Indemnified  Party in performing the obligations
of such  Indemnified  Party under this Agreement or a breach by such Indemnified
Party of its obligations under this Agreement.

                  (c)      Contribution.  If a claim for  indemnification  under
Section  4.16(a) is unavailable to an Indemnified  Party or is  insufficient  to
hold such  Indemnified  Party  harmless  for any Losses in respect of which this
Section  4.16  would  apply by its terms  (other  than by  reason of  exceptions
provided  in this  Section  4.16),  then  each  Indemnifying  Party,  in lieu of
indemnifying  such  Indemnified  Party,  shall  contribute to the amount paid or
payable by such Indemnified  Party as a result of such Losses in such proportion
as is appropriate to reflect the relative  benefits received by the Indemnifying
Party on the one hand and the  Indemnified  Party on the other and the  relative
fault of the  Indemnifying  Party and  Indemnified  Party in connection with the
actions or omissions  that resulted in such Losses as well as any other relevant
equitable  considerations.  The relative  fault of such  Indemnifying  Party and
Indemnified  Party shall be  determined  by reference  to,  among other  things,
whether there was a judicial determination that such Losses arise in part out of
the  negligence  or bad  faith  of  the  Indemnified  Party  in  performing  the
obligations of such  Indemnified  Party under this Agreement or the  Indemnified
Party's  breach of its  obligations  under this  Agreement.  The amount  paid or
payable  by a party as a result of any  Losses  shall be deemed to  include  any
attorneys' or other fees or expenses  incurred by such party in connection  with
any  Proceeding  to the extent such party would have been  indemnified  for such
fees  or  expenses  if the  indemnification  provided  for in this  Section  was
available to such party.

                                       18
<PAGE>

                  (d)      Non-Exclusivity.   The  indemnity  and   contribution
agreements  contained  in this  Section  are in addition  to any  obligation  or
liability that the Indemnifying Parties may have to the Indemnified Parties.

         4.17     Exclusivity.  During the five year  period  commencing  on the
Post-Closing Date (the "Restriction Period") or until the Debentures are paid in
full which ever comes first,  (A) except for the First  Debenture B, the Company
and its  Affiliates  shall not issue or offer (i) any  convertible  security and
(ii) any security issued pursuant to Rule 504 of Regulation D promulgated  under
the Securities  Act and (B) the Company and its  Affiliates  shall not offer any
equity lines of credit.  The Company may request that the  restrictions  in this
Section 4.17 be waived.  Except as specifically set forth above, the Company may
engage in any other debt or equity financing during the Restriction Period.

         4.18     Purchaser's  Ownership of Common Stock. (a) In addition to and
not in lieu of the  limitations on conversion set forth in the  Debentures,  the
conversion rights of the Purchaser set forth in the Debentures shall be limited,
solely  to the  extent  required,  from  time to time,  such  that,  unless  the
Purchaser  gives  written  notice  75  days in  advance  to the  Company  of the
Purchaser's  intention to exceed the Limitation on Conversion as defined herein,
with  respect  to  all  or  a  specified   amount  of  the  Debentures  and  the
corresponding number of the Underlying Shares in no instance shall the Purchaser
(singularly,  together  with  any  Persons  who  in  the  determination  of  the
Purchaser,  together with the  Purchaser,  constitute a group as defined in Rule
13d-5 of the Exchange  Act) be entitled to convert the  Debentures to the extent
such conversion would result in the Purchaser beneficially owning more than five
percent (5%) of the outstanding shares of Common Stock of the Company. For these
purposes,  beneficial  ownership  shall be defined and  calculated in accordance
with Rule 13d-3,  promulgated under the Exchange Act (the foregoing being herein
referred to as the  "Limitation on  Conversion");  provided,  however,  that the
Limitation on Conversion  shall not apply to any forced or automatic  conversion
pursuant to this Agreement or the Debentures;  and provided, further that if the
Purchaser  shall have  declared  an Event of Default  and,  if a cure  period is
provided,  the  Company  shall not have  properly  and fully cured such Event of
Default  within any such cure period,  the provisions of this Section 4.18 shall
be null and void from and after such date. The Company shall,  promptly upon its
receipt  of a  Notice  of  Conversion  tendered  by the  Purchaser  (or its sole
designee) for the Debentures,  as applicable,  notify the Purchaser by telephone
and by  facsimile  (the  "Debenture  Notice")  of the number of shares of Common
Stock outstanding on such date and the number of Underlying Shares,  which would
be issuable to the Purchaser (or its sole  designee,  as the case may be) if the
conversion  requested in such Notice of Conversion were effected in full and the
number  of  shares  of  Common  Stock  outstanding  giving  full  effect to such
conversion  whereupon,  in  accordance  with  the  Debentures,   notwithstanding
anything to the  contrary set forth in the  Debentures,  the  Purchaser  may, by
notice  to the  Company  within  one  (1)  Business  Day of its  receipt  of the
Debenture Notice by facsimile, revoke such conversion to the extent (in whole or
in part) that such Purchaser determines that such conversion would result in the
ownership  by such  Purchaser  of  shares  of  Common  Stock  in  excess  of the
Limitation on  Conversion.  The Debenture  Notice shall begin the 75 day advance
notice required in this Section 4.18.

                  (b)      The  Purchaser  acknowledges  that it is aware of the
"antidilution" provisions contained in the Acquisition Agreement dated March 31,
2003, as amended by Amendment No. 1 to the Acquisition  Agreement,  dated August

                                       19
<PAGE>

12, 2004,  both among Go West  Entertainment,  Inc.,  Richard  Goldring,  Elliot
Osher,  William Osher and SCRH in which SCRH may issue more shares of its common
stock without  consideration  to maintain William Osher's 8.8% share interest in
SCRH,  Elliot  Osher's 8.8% share  interest in SCRH and Richard  Goldring's  46%
share interest in SCRH.

         4.19     Purchaser's Rights if Trading in Common Stock is Suspended. If
the  Common  Stock  is  listed  on any  exchange,  then at any  time  after  the
Post-Closing  if trading in the shares of the Common Stock is suspended (and not
reinstated  within ten (10) Trading Days) on such stock  exchange or market upon
which the Common Stock is then listed for trading (other than as a result of the
suspension  of trading in  securities  on such  market  generally  or  temporary
suspensions pending the release of material information), or the Common Stock is
delisted from the OTCBB (and not reinstated within ten (10) Trading Days), then,
at the  option of the  Purchaser  exercisable  by giving  written  notice to the
Company (the "Redemption Notice"), the Company shall redeem, as applicable,  all
of the Debentures and Underlying Shares owned by such Purchaser within seven (7)
Business Days at an aggregate purchase price equal to the sum of:

                  (i)      the product of (1) the average Per Share Market Value
for the  five  (5)  Trading  Days  immediately  preceding  (a)  the  date of the
Redemption Notice, (b) the date of payment in full of the repurchase price under
this Section 4.19  recalculated as of such payment date, or (c) the day when the
Common  Stock was  suspended,  delisted or deleted  from  trading,  whichever is
greater,  multiplied by (2) the aggregate number of Underlying  Shares then held
and owned by such Purchaser;

                  (ii)     the greater of (A) the outstanding  principal  amount
and accrued and unpaid  interest on the  Debentures  owned by such Purchaser and
(B) the  product  of (1) the  average  Per Share  Market  Value for the five (5)
Trading Days immediately  preceding (a) the date of the Redemption  Notice,  (b)
the date of payment in full of the  repurchase  price  under this  Section  4.19
recalculated  as of such payment  date, or (c) the day when the Common Stock was
suspended,  delisted or deleted from trading,  whichever is greater, and (2) the
aggregate  number of  Underlying  Shares  issuable  upon the  conversion  of the
outstanding  Debentures  then  held and  owned by the  Purchaser  utilizing  the
conversion  procedures  contained in the Debentures (without taking into account
the Limitation on Conversion described in Section 4.18 hereof); and

                  (iii)    interest  on such  amounts  set forth in (i) and (ii)
above  accruing  from the  seventh  (7th)  Business  Day  after  the date of the
Redemption  Notice until the repurchase price under this Section 4.19 is paid in
full, at the rate of fifteen percent (15%) per annum;

provided,  however,  if the Note have not been paid in full by the  Purchaser to
the Company  (whether or not it is otherwise  then due or payable by its terms),
(i) any payments from the Company to the Purchaser pursuant to this Section 4.19
will be  offset  by the  principal  amount of the Note then not paid in full and
(ii) "Debentures" shall specifically refer to First Debenture A, First Debenture
B and the Second Debenture.

         4.20     No Violation of Applicable Law.  Notwithstanding any provision
of this  Agreement to the contrary,  if the  redemption of the Debentures or the
Underlying  Shares  otherwise  required  under this  Agreement or the Debentures

                                       20
<PAGE>

would be prohibited by the relevant  provisions of New York law, such redemption
shall be effected as soon as it is permitted under such law; provided,  however,
that interest  payable by the Company with respect to any such redemption  shall
accrue in accordance with Section 4.19.

         4.21     Redemption Restrictions. Notwithstanding any provision of this
Agreement to the contrary, if any redemption of the Debentures or the Underlying
Shares  otherwise  required  under this  Agreement  or the  Debentures  would be
prohibited  in the absence of consent from any lender to the Company,  or by the
holders of any class of  securities  of the Company,  the Company  shall use its
best  efforts to obtain such consent as promptly as  practicable  after any such
redemption is required. Interest payable by the Company with respect to any such
redemption  shall accrue in  accordance  with Section 4.19 until such consent is
obtained.  Nothing contained in this Section 4.21 shall be construed as a waiver
by the  Purchaser  of any  rights  it may have by  virtue  of any  breach of any
representation  or  warranty  of the  Company  herein as to the  absence  of any
requirement to obtain any such consent.

         4.22     No Other Registration Rights.  During the period commencing on
the date hereof and ending on the Post-Closing  Date, the Company shall not file
any  registration  statement  that  provides for the  registration  of shares of
Common  Stock to be sold by  security  holders  of the  Company,  other than the
Purchaser and/or its respective Affiliates or assigns, without the prior written
consent of the Purchaser or its assigns, provided,  however, that the limitation
on the right to file  registration  statements  contained  in this  Section 4.22
shall not  apply to  registration  statements  relating  solely to (i)  employee
benefit  plans,  notwithstanding  the  inclusion  of  a  resale  prospectus  for
securities  received  under any such  employee  benefit  plan,  or (ii) business
combinations  not  otherwise  prohibited  by the terms of this  Agreement or the
other Transaction Documents. This registration restriction is in addition to the
Company's registration restrictions set forth in Section 4.24.

         4.23     Merger or  Consolidation.  Until the  earlier  of (a) the full
conversion of the  Debentures  and (b) the Maturity Date of the  Debentures  (as
that term is defined  in the  Debentures),  the  Company  will not,  in a single
transaction  or a series of related  transactions  (other than the Merger),  (i)
consolidate  with or merge  with or into any other  Person,  or (ii)  permit any
other  Person to  consolidate  with or merge into it,  unless (w) either (A) the
Company  shall  be the  survivor  of such  merger  or  consolidation  or (B) the
surviving  Person shall expressly  assume by  supplemental  agreement all of the
obligations  of the Company under the  Debentures,  this Agreement and the other
Transaction  Documents;  (x)  immediately  before and  immediately  after giving
effect to such transactions  (including any indebtedness incurred or anticipated
to be incurred in connection with the  transactions),  no Event of Default shall
have occurred and be continuing; (y) if the Company is not the surviving entity,
such  surviving  entity's  common  shares  will be listed on either The New York
Stock  Exchange,  American  Stock  Exchange,  Nasdaq  National  Market or Nasdaq
SmallCap Market, or the OTCBB on or prior to the closing of such  transaction(s)
and  (z)  the  Company  shall  have  delivered  to the  Purchaser  an  officer's
certificate and opinion of counsel, each stating that such consolidation, merger
(other than the  Merger) or  transfer  complies  with this  Agreement,  that the
agreements  relating to such  transaction(s)  provide that the surviving  Person
agrees to be bound by this Agreement and that all  conditions  precedent in this
Agreement relating to such transaction(s) have been satisfied.

                                       21
<PAGE>

         4.24     Registration  of Escrow  Shares.  (a) So long as the Purchaser
and/or its assigns owns any of the Securities  and the  Underlying  Shares would
not be freely transferable without registration,  the Company agrees not to file
a  registration  statement  with the SEC  without  Purchaser's  express  written
consent,  other than on Form 10,  Form S-4 (except  for a public  reoffering  or
resale)  or  Form  S-8  without  first  having   registered   (or   simultaneous
registering) the Registrable  Securities for resale under the Securities Act and
in such states of the United  States as the  holders  thereof  shall  reasonably
request.

                  (b)      If the Company shall propose to file with the SEC any
registration  statement  other  than a Form 10,  Form S-4  (except  for a public
reoffering  or  resale)  or Form S-8 which  would  cause,  or have the effect of
causing,  the Company to become a Reporting  Issuer or to take any other action,
other than the sale of the Debentures to the Purchaser hereunder,  the effect of
which would be to cause the  Underlying  Shares to be restricted  securities (as
such term is defined in Rule 144  promulgated  under the  Securities  Act),  the
Company  agrees  to give  written  notification  of such to the  holders  of the
Securities  at least two weeks  prior to such  filing or taking of the  proposed
action.  If any of the  Securities are then  outstanding,  the Company agrees to
include in such  registration  statement the Registrable  Securities  unless the
Underlying Shares would be freely transferable upon conversion of the Debentures
without such registration, so as to permit the public resale thereof.

         If  the  registration  of  which  the  Company  gives  notice  is for a
registered public offering involving an underwriting, the Company will so advise
the holders of the Securities. In such event, these registration rights shall be
conditioned  upon  such  holder's  participation  in such  underwriting  and the
inclusion of such holder's  Registrable  Securities in the  underwriting  to the
extent provided herein.  All holders  proposing to distribute their  Registrable
Securities through such underwriting shall enter into an underwriting  agreement
in customary  form with the  underwriter  selected by the Company.  In the event
that the lead or managing underwriter in its good faith judgment determines that
material  adverse market factors require a limitation on the number of shares to
be underwritten, the underwriter may limit the number of Registrable Securities.
In such event, the Company shall so advise all holders of securities  requesting
registration,  and the number of shares of the  Registrable  Securities that are
entitled to be included in the registration and underwriting  shall be allocated
pro rata among all holders and other  participants,  including  the Company,  in
proportion,  as nearly as practicable,  to the respective amounts of Registrable
Securities and other  securities which they had requested to be included in such
registration statement at the time of filing the registration  statement. If any
holder  disapproves  of the  terms of any  such  underwriting,  he may  elect to
withdraw  therefrom  by  written  notice  to the  Company  and the  underwriter,
provided such notice is delivered  within sixty (60) days of full  disclosure of
such terms to such holder, without thereby affecting the right of such holder to
participate in subsequent offerings hereunder.

                  (c)      Notwithstanding the foregoing, if the Company for any
reason shall have taken any action, other than the sale of the Debentures to the
Purchaser  hereunder,  the  effect of which  would be to cause  the  Registrable
Securities  to be  restricted  securities  (as such term is  defined in Rule 144
promulgated  under  the  Securities  Act),  the  Company  agrees to use its best
efforts to file a  registration  statement with the SEC and use its best efforts
to have such registration  statement  declared  effective by the SEC which would
permit the public resale of the Registrable  Securities under the Securities Act
and in such states of the United States as the holders thereof shall  reasonably
request.

                                       22
<PAGE>

                  (d)      The Company agrees to keep any registration  required
pursuant to this Section 4.24  continuously  effective  under the Securities Act
and with such  states of the United  States as the  holders  of the  Registrable
Securities shall  reasonably  request until the earlier of (i) the date on which
all of the Registrable  Securities  covered by any such  registration  have been
sold,  (ii) two (2) years from the effective date of any such  registration,  or
(iii) the date on which all of the  Registrable  Securities  may be sold without
restriction  pursuant to Rule 144 of the Securities  Act. All costs and expenses
of any such registration and related Blue Sky filings and maintaining continuous
effectiveness  of such  registration  and filings shall be borne by the Company,
other than underwriters and brokers, fees and commissions.

                  (e)      The Escrow  Shares shall be registered by the Company
under  the  Securities  Act if  required  by  Section  4.29 and  subject  to the
conditions stated therein.

                  (f)      Each  holder  of  Registrable  Securities  agrees  to
cooperate  and  assist  the  Company in  preparing  and filing any  registration
statement  required to be filed pursuant to this Agreement,  including,  without
limitation,  providing  the Company with such  information  about the holder and
answering such questions as deemed reasonably  necessary by the Company in order
to complete such  registration  statement.  Until such time as the Company is no
longer required to keep the  registration  statement  effective,  each holder of
Registrable Securities agrees to immediately notify the Company of any change to
the  information  provided to the Company in connection  with the preparation or
maintenance  of the  registration  statement,  and each  such  holder  agrees to
certify to the accuracy and  completeness of all  information  provided by it to
the  Company  or  its  representatives  in  connection  with  such  registration
statement.

         4.25     Liquidated Damages.  The Company understands and agrees that a
breach by the Company of Section 4.1, Section 4.24,  Section 4.29,  Section 4.30
or an  Event  of  Default  as  contained  in this  Agreement  and/or  any  other
Transaction  Document will result in substantial economic loss to the Purchaser,
which loss will be extremely  difficult to calculate with precision.  Therefore,
if, for any reason the Company  breaches  Sections 4.1,  Section  4.24,  Section
4.29,  Section 4.30 or fails to cure any Event of Default  under Section 5.1 (a)
(iii), (v), (vi) and (viii) within the time, if any, given to cure such Event of
Default, as compensation and liquidated damages for such breach or default,  and
not as a penalty, the Company agrees to pay the Purchaser an amount equal to the
Purchase Price and the Purchaser, upon receipt of such payment, shall return any
unconverted  Debentures to the Company.  The Company shall, upon demand, pay the
Purchaser  such  liquidated  damages by wire transfer of  immediately  available
funds to an account designated by the Purchaser.  Nothing herein shall limit the
right of the  Purchaser  to  pursue  actual  damages  (less  the  amount  of any
liquidated  damages received pursuant to the foregoing) for the Company's breach
of Section 4.1, Section 4.24,  Section 4.29,  Section 4.30 or failure to cure an
Event of Default  under  Section 5.1 (a) (iii) (v) (vi) and  (viii),  consistent
with the  terms of this  Agreement.  NOTWITHSTANDING  ANYTHING  TO THE  CONTRARY
CONTAINED IN THIS AGREEMENT OR THE OTHER  TRANSACTION  DOCUMENTS,  THE COMPANY'S
OBLIGATIONS  UNDER THIS SECTION SHALL SURVIVE ANY  TERMINATION OF THIS AGREEMENT
OR THE OTHER TRANSACTION DOCUMENTS.

                                       23
<PAGE>

         4.26     Short Sales.  The Purchaser  agrees it will not enter into any
Short Sales (as hereinafter defined) until the earlier to occur of the date that
the Purchaser no longer owns the  Debentures  and the Maturity Date. For purpose
hereof,  a "Short Sale" shall mean a sale of Common Stock by the Purchaser  that
is marked as a short sale and that is made at a time when there is no equivalent
offsetting long position in the Common Stock by the Purchaser.  For the purposes
of determining  whether there is an equivalent  offsetting  long position in the
Common  Stock  held by the  Purchaser,  shares of  Common  Stock  issuable  upon
conversion  of the  Debentures  shall be deemed to be held long by the Purchaser
with  respect  to the  Underlying  Shares  for which a Notice of  Conversion  is
delivered  within two (2) Trading Days following the Trading Day that such Short
Sale is entered into.

         4.27     Fees.  The Company will pay the following fees and expenses in
connection with the transactions  contemplated hereby: (a) to G&P (i) legal fees
for  document  production  in the  amount  of  $20,000  and (ii) all  reasonable
out-of-pocket expenses incurred in connection with such document production, (b)
to the Escrow  Agent,  $5,000 for the escrow agent fee, and (c) to Jehu Hand (i)
legal  fees in the  amount  of  $5,000  and  (ii) all  reasonable  out-of-pocket
expenses  incurred.  Unless paid prior,  all fees and  expenses  will be paid at
Post-Closing  and the Company and the Purchaser  hereby authorize and direct the
Escrow  Agent to deduct such fees and  expenses  directly  from escrow  prior to
distributing any funds to the Company. Except with respect to the fees set forth
in part (b) of this  Section  4.27 and  except  as  otherwise  set  forth in the
Retainer  Agreement,  all fees and expenses shall be paid  regardless of whether
the transactions contemplated hereby are closed or otherwise completed. All fees
to  be  paid  hereunder   shall  have  no  offsets,   are   non-refundable   and
non-cancelable.

         4.28     First Debenture B and Note. Notwithstanding anything contained
herein, in the Debentures, or in the Note to the contrary, the First Debenture B
shall not accrue interest, shall not be convertible, and shall not be subject to
repayment  by the  Company  at its  maturity,  and the Note shall not be due and
payable and shall not be deemed  part of the  "Purchase  Price" for  purposes of
Section 4.25 hereof, unless and until:

                  (i) the  Purchaser  elects  that  Note  shall  become  due and
                  payable; and

                  (ii) the number of Escrow Shares for the  aggregate  principal
                  amount of the Debentures then  outstanding and First Debenture
                  B is at least 200% of the number of shares of common  stock of
                  SCRH that would be needed to satisfy  full  conversion  of all
                  such unconverted Debentures,

                  provided,  however,  that if subparagraph (i) is satisfied and
                  subparagraph  (ii) is not,  SCRH shall  increase in accordance
                  with Section  4.14,  the number of Escrow Shares to cover 200%
                  of the number of shares of common  stock of SCRH that would be
                  needed to satisfy full  conversion  of all of such  Debenture;
                  provided,  further, that,  notwithstanding the foregoing,  the
                  First  Debenture  B shall not  accrue  interest,  shall not be
                  convertible,  and shall not be  subject  to  repayment  by the
                  Company at its maturity, and the Note shall not be deemed part
                  of the  "Purchase  Price" for purposes of Section 4.25 hereof,
                  unless and until the Note is paid in full by the  Purchaser or
                  its successors and assigns.

                                       24
<PAGE>

         4.29     Changes to Federal and State  Securities  Laws.  If any of the
Securities require  registration with or approval of any governmental  authority
under any federal  (including  but not limited to the  Securities Act or similar
federal  statute  then in  force)  or state  law,  or  listing  on any  national
securities  exchange,  before  they may be resold  or  transferred  without  any
restrictions on their resale or transfer for reasons including,  but not limited
to, a  material  change  in Rule  504 of  Regulation  D  promulgated  under  the
Securities  Act or a  change  to the  exemption  for  sales  made to  Accredited
Investors in the state in which the Purchaser resides,  the Company will, at its
expense, (a) as expeditiously as possible cause the Registrable Securities to be
duly  registered  or  approved  or listed on the  relevant  national  securities
exchange,  as the  case may be,  and (b) keep  such  registration,  approval  or
listing, as the case may be, continuously effective until the earlier of (i) the
date on which all of the  Registrable  Securities  have been sold,  (ii) two (2)
years from the  effective  date of any such  registration,  or (iii) the date on
which all of the Securities may be sold without restriction pursuant to Rule 144
of the Securities Act; subject to the terms and limitations set forth in section
4.24. The  Registrable  Securities  shall be registered by the Company under the
Securities Act if required by Section 4.24 and subject to the conditions  stated
therein.

         4.30     Merger Agreement.  Immediately upon the Effective Date, all of
the transactions  contemplated by the Merger Agreement annexed hereto as EXHIBIT
C shall be consummated in accordance with the terms thereof.

         4.31     Future  Financing.  If, at any time any of the  Debentures are
outstanding,  the  Company,  or its  successors  in  interest  due  to  mergers,
consolidations and/or acquisitions (the "Successors-in-Interest"),  is funded an
amount equal to or exceeding Five Million  United States  Dollars  ($5,000,000),
the Company or the Successors-in-Interest, as the case may be, agrees to pay the
Purchaser  an  amount  equal to One  Hundred  Fifty  Percent  (150%) of the then
outstanding Debentures (the "Lump Sum Payment"). Upon the Purchaser's receipt of
the Lump Sum Payment, any and all remaining obligations then outstanding between
the Company or the Successors-in-Interest,  as the case may be, and Purchaser in
connection with this Agreement and the Debentures  shall be deem satisfied,  and
the Agreement and the  Debentures  shall be  terminated.  This  provision  shall
survive both Closing and Post-Closing.

         4.32     Applicability  of  Agreements  after   Post-Closing.   At  the
Effective Date or upon the consummation of any other merger or other transaction
pursuant to which the Company's  obligations under the Debentures are assumed by
another party (whether or not such assumption is joint and several), the Company
shall be released from, and have no further obligation  pursuant to Sections 4.1
through 4.6, 4.8, 4.10, 4.12, 4.14, 4.16 through 4.27, 4.29 and 4.31 hereof, and
any reference to the Company in such  sections  shall instead be deemed to refer
solely to the party that assumes the Debentures.

         4.33     Company's Right of Redemption. In addition to any right of the
Company to redeem any unconverted amount of the Debentures, in whole or in parts
set forth in this  Agreement,  the Company shall have any  redemption  right set
forth in the Debentures.

                                       25
<PAGE>

                                   ARTICLE V

                                   TERMINATION

         5.1      Termination  by the Company or the  Purchaser.  This Agreement
shall be  terminated  as follows  upon the  occurrence  of any of the  following
events (each an "Event of Default"):

                  (a)      Automatically terminated prior to Post-Closing if:

                           (i)      there shall be in effect any statute,  rule,
         law  or  regulation,  including  an  amendment  to  Regulation  D or an
         interpretive  release promulgated or issued thereunder,  that prohibits
         the  consummation  of the  Post-Closing  or if the  consummation of the
         Post-Closing  would violate any non-appealable  final judgment,  order,
         decree, ruling or injunction of any court of or governmental  authority
         having competent jurisdiction;

                           (ii)     the Post-Closing  shall not have occurred by
         the Post-Closing Date through no fault of the Company; (iii) the common
         stock of SCRH is not registered under Section 12 of the Exchange Act;

                           (iv)     SCRH  is  not   current  in  its   reporting
         obligations under Section 13 or 15(d) of the Exchange Act;

                           (v)      an event  occurs  prior to the  Post-Closing
         requiring  SCRH to  report  such  event  to the SEC on Form 8-K and not
         otherwise  set forth in SCHEDULE  5.1,  provided,  however,  such event
         shall only include the  following  items under Form 8-K: Item 1; Item 2
         to the extent that any event is reported  under Item 2 that  involves a
         change  in the  nature  of SCRH's  business;  Item 3; Item 4  (provided
         further, that as to Item 4, only if the event requires disclosure under
         Item 304 (a)(1)(iv) or under Regulation S-K); Item 9; or Item 12;

                           (vi)     the Company causes the  Post-Closing  to not
         occur by the Post-Closing Date;

                           (vii)    trading in the common stock of SCRH has been
         suspended,  delisted, or otherwise ceased by the Commission or the NASD
         or other  exchange  or the  Nasdaq  (whether  the  National  Market  or
         otherwise),  except  for (a)  any  suspension  of  trading  of  limited
         duration  solely  to  permit   dissemination  of  material  information
         regarding SCRH, and not reinstated within ten (10) Trading Days and (b)
         any general  suspension  of trading for all  companies  trading on such
         exchange or market or OTCBB; or

                           (viii)   the Company  fails to deliver or cause to be
         delivered  the  Debentures  and Escrow Shares as required by and by the
         date set forth in Section 2.2 hereof.

                                       26
<PAGE>

                  (b)      Prior to  Post-Closing  by the  Purchaser,  by giving
written notice of such termination to the Company, if the Company has materially
breached any representation,  warranty,  covenant or agreement contained in this
Agreement or the other Transaction Documents and such breach is not cured within
five (5)  Business  Days  following  receipt  by the  Company  of notice of such
breach.

                  (c)      Prior  to  Post-Closing  by the  Company,  by  giving
written  notice of such  termination  to the  Purchaser,  if the  Purchaser  has
materially  breached  any  representation,   warranty,   covenant  or  agreement
contained in this Agreement or the other  Transaction  Documents and such breach
is not cured within five (5) Business Days following receipt by the Purchaser of
notice of such breach.

         5.2      Remedies.  Notwithstanding  anything else contained  herein to
the contrary,  if an Event of Default has occurred  pursuant to Section 5.1, and
only with  respect to Section  5.1(b) has not been cured  within the cure period
provided for therein, the defaulting party shall be deemed in default hereof and
the  non-defaulting  party  shall be  entitled  to pursue all  available  rights
without further notice.  The defaulting  party shall pay all attorney's fees and
costs incurred in enforcing this Agreement and the other Transaction  Documents.
In  addition,  all unpaid  amounts  shall  accrue  interest at a rate of 15% per
annum.

                                   ARTICLE VI

                      LEGAL FEES AND DEFAULT INTEREST RATE

         In the event any party  hereto  commences  legal  action to enforce its
rights  under  this   Agreement   or  any  other   Transaction   Document,   the
non-prevailing  party shall pay all reasonable costs and expenses (including but
not limited to reasonable attorney's fees,  accountant's fees,  appraiser's fees
and  investigative  fees) incurred in enforcing such rights.  In the event of an
uncured Event of Default by any party  hereunder,  interest  shall accrue on all
unpaid amounts due the aggrieved party at the rate of 12% per annum,  compounded
annually.

                                  ARTICLE VII

                                  MISCELLANEOUS

         7.1      Fees and Expenses.  Except as set forth in this Agreement each
party shall pay the fees and expenses of its advisers, counsel,  accountants and
other experts, if any, and all other expenses incurred by such party incident to
the  negotiation,  preparation,  execution,  delivery  and  performance  of this
Agreement.  The Company  shall pay the fees of $5,000 to the Escrow Agent as set
forth in Section 4.27 hereto and all stamp and similar  taxes and duties  levied
in connection  with the issuance of the Debentures  (and, upon  conversion,  the
Underlying  Shares) pursuant hereto.  The Purchaser shall be responsible for any
taxes (other than income  taxes)  payable by the  Purchaser  that may arise as a
result of the  investment  hereunder or the  transactions  contemplated  by this
Agreement or any other  Transaction  Document.  Whether or not the  transactions
contemplated hereby and thereby are consummated or this Agreement is terminated.
The Company shall pay (i) all costs,  expenses,  fees and all taxes  incident to
and in connection  with: (A) the  preparation,  printing and distribution of any

                                       27
<PAGE>

registration  statement  required  hereunder and all amendments and  supplements
thereto (including, without limitation,  financial statements and exhibits), and
all  preliminary  and  final  Blue  Sky  memoranda  and  all  other  agreements,
memoranda,   correspondence  and  other  documents  prepared  and  delivered  in
connection  herewith,  (B) the issuance and delivery of the Securities,  (C) the
exemption  from  registration  of the  Securities  for  offer  and  sale  to the
Purchaser under the securities or Blue Sky laws of the applicable  jurisdiction,
(D) furnishing such copies of any registration statement required hereunder, the
preliminary and final  prospectuses and all amendments and supplements  thereto,
as may  reasonably  be  requested  for use in  connection  with  resales  of the
Securities,   and  (E)  the  preparation  of  certificates  for  the  Securities
(including,  without limitation,  printing and engraving thereof), (ii) all fees
and  expenses of counsel and  accountants  of the Company and (iii) all expenses
and fees of listing on securities exchanges, if any.

         7.2      Entire Agreement;  Amendments.  This Agreement,  together with
all of the Exhibits and  Schedules  annexed  hereto,  and any other  Transaction
Document  contain the entire  understanding  of the parties  with respect to the
subject  matter hereof and supersede all prior  agreements  and  understandings,
oral or written, with respect to such matters. This Agreement shall be deemed to
have been drafted and negotiated by both parties hereto and no  presumptions  as
to  interpretation,  construction or enforceability  shall be made by or against
either party in such regard.

         7.3      Notices.  Any  notice,   request,   demand,  waiver,  consent,
approval,  or other  communication which is required or permitted to be given to
any party  hereunder  shall be in writing  and shall be deemed to have been duly
given  only if  delivered  to the  party  personally  or sent  to the  party  by
facsimile  upon  electronic  confirmation  and receipt  (promptly  followed by a
hard-copy  delivered  in  accordance  with this Section 7.3) or three days after
being mailed by registered or certified mail (return  receipt  requested),  with
postage and registration or if sent by nationally  recognized overnight courier,
one day after being mailed certification fees thereon prepaid,  addressed to the
party at its address set forth below:

                  If to the Company:        Aciem Management, Inc.
                                            200 West 58th Street, Suite 18E
                                            New York, New York 10019
                                            Tel:
                                            Fax:

                  If to the Purchaser:      See SCHEDULE 1 attached hereto

                  With copies to:           Gottbetter & Partners, LLP
                                            488 Madison Avenue
                                            New York, NY 10017
                                            Attn:  Adam S. Gottbetter, Esq.
                                            Tel:  (212) 400-6900
                                            Fax:  (212) 400-6901

                  If to Escrow Agent:       Gottbetter & Partners, LLP
                                            488 Madison Avenue
                                            New York, NY 10017
                                            Attn:  Adam S. Gottbetter, Esq.
                                            Tel:  (212) 400-6900
                                            Fax:  (212) 400-6901

                                       28
<PAGE>

or such other address as may be designated hereafter by notice given pursuant to
the terms of this Section 7.3.

         7.4      Amendments;  Waivers.  No provision of this  Agreement  may be
waived  or  amended  except in a written  instrument  signed,  in the case of an
amendment,  by both the Company and the Purchaser,  or, in the case of a waiver,
by the party against whom enforcement of any such waiver is sought. No waiver of
any default with respect to any  provision,  condition  or  requirement  of this
Agreement shall be deemed to be a continuing waiver in the future or a waiver of
any other  provision,  condition or requirement  hereof,  nor shall any delay or
omission of either  party to exercise any right  hereunder in any manner  impair
the exercise of any such right accruing to it thereafter.

         7.5      Headings. The headings herein are for convenience only, do not
constitute a part of this  Agreement  and shall not be deemed to limit or affect
any of the provisions hereof.

         7.6      Successors and Assigns.  This Agreement  shall be binding upon
and inure to the  benefit of the  parties and their  respective  successors  and
permitted  assigns.  This  Agreement  and  any  of  the  rights,   interests  or
obligations hereunder may be assigned by the Purchaser to an accredited investor
without the consent of the Company as long as such  assignee  agrees to be bound
by  this  Agreement.  This  Agreement  and  any  of  the  rights,  interests  or
obligations  hereunder  may not be  assigned  by the  Company  without the prior
written  consent of the Purchaser.  It is agreed that the Company may assign all
of the rights,  interests  and  obligations  hereunder  to SCRH  pursuant to the
Merger Agreement.

         7.7      No Third Party  Beneficiaries.  This Agreement is intended for
the benefit of the parties hereto and their respective  permitted successors and
assigns and is not for the benefit of, nor may any provision  hereof be enforced
by, any other person.

         7.8      Governing Law; Venue;  Service of Process.  The parties hereto
acknowledge  that  the  transactions  contemplated  by  this  Agreement  and the
exhibits hereto bear a reasonable relation to the State of New York. The parties
hereto agree that the  internal  laws of the State of New York shall govern this
Agreement  and the exhibits  hereto,  including,  but not limited to, all issues
related to usury.  Any action to enforce the terms of this  Agreement  or any of
its exhibits  shall be brought  exclusively  in the state and/or  federal courts
situated  in the County and State of New York.  Service of process in any action
by the Purchaser to enforce the terms of this Agreement may be made by serving a
copy of the summons and complaint,  in addition to any other relevant documents,
by  commercial  overnight  courier to the Company at its  principal  address set
forth in this Agreement.

         7.9      Survival.   The   agreements  and  covenants  of  the  parties
contained in Article IV and this Article VII shall survive the  Post-Closing (or
any earlier termination of this Agreement).

                                       29
<PAGE>

         7.10     Counterpart Signatures.  This Agreement may be executed in two
or more  counterparts,  all of which when taken together shall be considered one
and the same agreement and shall become  effective when  counterparts  have been
signed by each party and delivered to the other party, it being  understood that
both parties need not sign the same counterpart. In the event that any signature
is delivered by facsimile transmission,  such signature shall create a valid and
binding  obligation of the party executing (or on whose behalf such signature is
executed) the same with the same force and effect as if such facsimile signature
page were an original thereof.

         7.11     Publicity.  The Company and the  Purchaser  shall consult with
each other in issuing any press releases or otherwise  making public  statements
with respect to the  transactions  contemplated  hereby and neither  party shall
issue any such press release or otherwise make any such public statement without
the prior written consent of the other,  which consent shall not be unreasonably
withheld or delayed,  unless counsel for the disclosing  party deems such public
statement to be required by applicable  federal  and/or state  securities  laws.
Except as otherwise  required by applicable law or regulation,  the Company will
not disclose to any third party the names of the Purchaser.

         7.12     Severability.  In case  any one or more of the  provisions  of
this Agreement shall be invalid or  unenforceable  in any respect,  the validity
and enforceability of the remaining terms and provisions of this Agreement shall
not in any way be affected or impaired  thereby and the parties  will attempt to
agree  upon a valid  and  enforceable  provision  which  shall  be a  reasonable
substitute  therefore,  and upon so agreeing,  shall incorporate such substitute
provision in this Agreement.

         7.13     Limitation of Remedies.  With respect to claims by the Company
or the Purchaser or any person acting by or through the Company or the Purchaser
for remedies at law or at equity  relating to or arising out of a breach of this
Agreement,  liability,  if any, shall,  in no event,  include loss of profits or
incidental,  indirect, exemplary,  punitive, special or consequential damages of
any kind.

         7.14     Omnibus  Provision.  Anything contained herein or in the other
Transaction Documents notwithstanding,  in the event that the Common Stock shall
become  listed on the  American  Stock  Exchange and  subsequently  ceases to be
listed for trading on the American Stock Exchange, then any reference thereto in
this  Agreement  or the  other  Transaction  Documents  shall be  deemed to be a
reference to (a) the principal national  securities exchange on which the Common
Stock is then listed or admitted to trading,  or (b) if the Common  Stock is not
then listed or admitted to trading on any national securities exchange,  Nasdaq,
or (c) if the Common  Stock is not then listed or admitted to trading on Nasdaq,
OTCBB,  or (d) if the Common  Stock is not then listed or admitted to trading on
OTCBB,  then the  over-the-counter  market  reported by the  Pinksheets  LLC (or
similar organization or agency succeeding to its functions of reporting prices).

                            [SIGNATURE PAGE FOLLOWS]

                                       30
<PAGE>

         IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
duly executed as of the date first indicated above.

                                    Company:

                                    ACIEM MANAGEMENT, INC.

                                    By:  /s/ John Neilson
                                      ------------------------------------------
                                      Name:  John Neilson
                                      Title: President

                                    Purchaser:

                                    HEM MUTUAL ASSURANCE LLC

                                    By:  /s/ Pierce Loughran
                                      ------------------------------------------
                                      Name:  Pierce Loughran
                                      Title: Manager

                                    HIGHGATE HOUSE, LLC

                                    By:  HH Advisors, LLC, its Managing Member

                                    By: /s/ Adam S. Gottbetter
                                      ------------------------------------------
                                      Name:   Adam S. Gottbetter
                                      Title:  Managing Member

                                       31

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