Document:

<PAGE>
                                                                  EXHIBIT 10.51
                                                                  EXECUTION COPY

                                 $750,000,000

                               CREDIT AGREEMENT

                           Dated as of June 11, 1999

                                     Among

                                  ACE LIMITED

                          ACE BERMUDA INSURANCE LTD.

                      TEMPEST REINSURANCE COMPANY LIMITED

                             ACE INA HOLDINGS INC.

                                 as Borrowers
                                 -- ---------

                                      and

                       THE INITIAL LENDERS NAMED HEREIN

                              as Initial Lenders
                              -- ------- -------

                                      and

              MERRILL LYNCH, PIERCE, FENNER & SMITH INCORPORATED

                    as Lead Arranger and Syndication Agent
                    --------------------------------------

                                      and

                   MORGAN GUARANTY TRUST COMPANY OF NEW YORK

                            as Administrative Agent
                            -- -------------- -----

                                      and

                          J.P. MORGAN SECURITIES INC.

                                as Co-Arranger
                                -- -----------

                                      and

             BANK OF AMERICA NATIONAL TRUST & SAVINGS ASSOCIATION

                             CHASE MANHATTAN BANK

                          as Co-Documentation Agents
                          -- ---------------- ------
<PAGE>

                       T A B L E   O F   C O N T E N T S

Section                                                                     Page

                                   ARTICLE I

                       DEFINITIONS AND ACCOUNTING TERMS
<TABLE>
<S>                                                                         <C>
SECTION 1.01.  Certain Defined Terms                                          1
SECTION 1.02.  Computation of Time Periods; Other Definitional Provisions    19
SECTION 1.03.  Accounting Terms and Determinations                           19
</TABLE>

                                  ARTICLE II

                  AMOUNTS AND TERMS OF THE COMMITTED ADVANCES
<TABLE>
<S>                                                                         <C>
SECTION 2.01.  The Committed Advances                                        20
SECTION 2.02.  Making the Committed Advances                                 20
SECTION 2.03.  The Competitive Bid Advances                                  22
SECTION 2.04.  Repayment of Committed Advances                               25
SECTION 2.05.  Termination or Reduction of the Commitments                   25
SECTION 2.06.  Prepayments                                                   26
SECTION 2.07.  Interest                                                      26
SECTION 2.08.  Fees                                                          28
SECTION 2.09.  Conversion of Advances                                        28
SECTION 2.10.  Increased Costs, Etc.                                         29
SECTION 2.11.  Payments and Computations                                     31
SECTION 2.12.  Taxes                                                         32
SECTION 2.13.  Sharing of Payments, Etc.                                     34
SECTION 2.14.  Use of Proceeds                                               34
SECTION 2.15.  Defaulting Lenders                                            34
SECTION 2.16.  Replacement of Affected Lender                                37
</TABLE>
                                  ARTICLE III

                             CONDITIONS OF LENDING
<TABLE>
<S>                                                                         <C>
SECTION 3.01.  Conditions Precedent to All Committed Borrowings in Respect
                    of the Acquisition                                       37
SECTION 3.02.  Conditions Precedent to Each Committed Borrowing in Respect
                    of the Acquisition                                       41
SECTION 3.03.  Conditions Precedent to Each Competitive Bid Borrowing        42
SECTION 3.04.  Determinations Under Section 3.01                             42
</TABLE>
                                  ARTICLE IV

                        REPRESENTATIONS AND WARRANTIES
<TABLE>
<S>                                                                         <C>
SECTION 4.01.  Representations and Warranties of the Borrowers               43
</TABLE>
<PAGE>
                                      ii
Section                                                                     Page
                                   ARTICLE V

                          COVENANTS OF THE BORROWERS
<TABLE>
<S>                                                                         <C>
SECTION 5.01.  Affirmative Covenants                                         47
SECTION 5.02.  Negative Covenants                                            49
SECTION 5.03.  Reporting Requirements                                        53
SECTION 5.04.  Financial Covenants                                           56
</TABLE>
                                  ARTICLE VI

                               EVENTS OF DEFAULT
<TABLE>
<S>                                                                         <C>
SECTION 6.01.  Events of Default                                             56
</TABLE>
                                  ARTICLE VII

                                 THE GUARANTY
<TABLE>
<S>                                                                         <C>
SECTION 7.01.  The Guaranty                                                  59
SECTION 7.02.  Guaranty Unconditional                                        59
SECTION 7.03.  Discharge Only upon Payment in Full; Reinstatement in
                    Certain Circumstances                                    60
SECTION 7.04.  Waiver by the Borrowers                                       60
SECTION 7.05.  Subrogation                                                   60
SECTION 7.06.  Stay of Acceleration                                          61
SECTION 7.07.  Continuing Guaranty; Assignments                              61
</TABLE>
                                  THE AGENTS
<TABLE>
<S>                                                                         <C>
SECTION 8.01.  Authorization and Action                                      61
SECTION 8.02.  Agents' Reliance, Etc.                                        62
SECTION 8.03.  MGT and Affiliates                                            62
SECTION 8.04.  Lender Credit Decision                                        62
SECTION 8.05.  Indemnification                                               63
SECTION 8.06.  Successor Agents                                              63
</TABLE>
                                  ARTICLE IX

                                 MISCELLANEOUS
<TABLE>
<S>                                                                         <C>
SECTION 9.01.  Amendments, Etc.                                              64
SECTION 9.02.  Notices, Etc.                                                 64
SECTION 9.03.  No Waiver; Remedies                                           64
SECTION 9.04.  Costs and Expenses                                            65
SECTION 9.05.  Right of Set-off                                              66
</TABLE>
<PAGE>
                                     iii
Section                                                                     Page
<TABLE>
<S>                                                                         <C>
SECTION 9.06.  Binding Effect                                                66
SECTION 9.07.  Assignments and Participations                                66
SECTION 9.08.  Execution in Counterparts                                     71
SECTION 9.09.  Confidentiality                                               71
SECTION 9.10.  Jurisdiction, Etc.                                            71
SECTION 9.11.  Governing Law                                                 72
SECTION 9.12.  Waiver of Jury Trial                                          72
</TABLE>

SCHEDULES

Schedule I        -  Commitments and Applicable Lending Offices
Schedule 4.01(b)  -  Subsidiaries
Schedule 5.02(a)  -  Lien

EXHIBITS

Exhibit A-1       -  Form of Committed Note
Exhibit A-2       -  Form of Competitive Bid Note
Exhibit B-1       -  Form of Notice of Committed Borrowing
Exhibit B-2       -  Form of Notice of Competitive Bid Borrowing
Exhibit C         -  Form of Assignment and Acceptance
Exhibit D         -  Form of Solvency Certificate
Exhibit E-1       -  Form of Opinion of Cayman Islands Counsel to the Parent
Exhibit E-2       -  Form of Opinion of New York Counsel to the Loan Parties
Exhibit E-3       -  Form of Opinion of Bermuda Counsel to Ace Bermuda and
                        Tempest
Exhibit G         -  Form of Designation Agreement

<PAGE>

                               CREDIT AGREEMENT

          CREDIT AGREEMENT dated as of June 11, 1999 among ACE Limited, a Cayman
Islands company (the "Parent") , ACE Bermuda Insurance Ltd ("ACE Bermuda"),
Tempest Reinsurance Company Limited ("Tempest"), ACE INA Holdings Inc. ("ACE
INA") (Ace Bermuda, Tempest and ACE INA together with the Parent, the
"Borrowers"), the banks, financial institutions and other institutional lenders
listed on the signature pages hereof as the Initial Lenders (the "Initial
Lenders") Merrill Lynch, Pierce, Fenner & Smith Incorporated ("ML&Co."), as
syndication agent (together with any successor syndication agent appointed
pursuant to Article VIII, the "Syndication Agent") and as lead arranger (the
"Lead Arranger"), Morgan Guaranty Trust Company of New York ("MGT"), as
administrative agent (together with any successor administrative agent appointed
pursuant to Article VIII, the "Administrative Agent" and, together with the
Syndication Agent, the "Agents") for the Lenders (as hereinafter defined), and
J.P. Morgan Securities Inc. ("J.P. Morgan"), as co-arranger (the "Co-Arranger").

PRELIMINARY STATEMENTS:

          (1) The Parent or one of its Affiliates (as hereinafter defined)
intends to acquire (the "Acquisition") the domestic and international property
and casualty businesses ("CIGNAP&C") of Cigna Corporation (the "Seller").
Currently, CIGNAP&C is a division of the Seller.

          (2) The Borrowers have requested that, immediately upon the
consummation of the Acquisition (or any portion thereof), the Lenders lend to
the Borrowers up to $750,000,000 to pay transaction fees and expenses, and that,
from time to time, the Lenders lend to the Borrowers to provide working capital
for the Borrowers and their Subsidiaries and for other general corporate
purposes. The Lenders have indicated their willingness to agree to lend such
amounts on the terms and conditions of this Agreement.

          NOW, THEREFORE, in consideration of the premises and of the mutual
covenants and agreements contained herein, the parties hereto hereby agree as
follows:

                                   ARTICLE I

                       DEFINITIONS AND ACCOUNTING TERMS

          SECTION 1.01. Certain Defined Terms. As used in this Agreement, the
following terms shall have the following meanings (such meanings to be equally
applicable to both the singular and plural forms of the terms defined):

          "ACE Bermuda" has the meaning specified in the recital of parties to
this Agreement.

          "ACE INA" has the meaning specified in the recital of parties to this
Agreement.
<PAGE>

                                       2

          "ACE INA 364-Day Revolving Credit Facility" means the 364-Day
     Revolving Credit Agreement dated as of the date hereof among the Parent,
     ACE INA, as borrower, the subsidiary guarantors referred to therein, the
     lenders party thereto, ML&Co. as syndication agent and lead arranger, MGT
     as administrative agent, and J.P. Morgan as co-arranger, as the same may be
     amended, modified or otherwise supplemented from time to time.

          "Acquisition" has the meaning specified in the Preliminary Statements.

          "Adjusted Consolidated Debt" means, at any time, an amount equal to
     (i) the then outstanding Consolidated Debt of the Parent and its
     Subsidiaries plus (ii) 50% of the then issued and outstanding amount of
     Preferred Securities (other than any Mandatorily Convertible Preferred
     Securities).

          "Administrative Agent" has the meaning specified in the recital of
     parties to this Agreement.

          "Administrative Agent's Account" means the account of the
     Administrative Agent maintained by the Administrative Agent with Morgan
     Guaranty Trust Company of New York, at its office at 60 Wall Street, New
     York, New York 10260, Account No. 999 99 090, Attention:  Bill Wood, or
     such other account as the Administrative Agent shall specify in writing to
     the Lenders.

          "Advance" means a Committed Advance or a Competitive Bid Advance.

          "Affected Lender" means any Lender that (i) has made, or notified any
     Borrower that an event or circumstance has occurred which may give rise to,
     a demand for compensation under Section 2.10(a) or (b) or Section 2.12 (but
     only so long as the event or circumstance giving rise to such demand or
     notice is continuing) or (ii) has notified any  Borrower (which notice has
     not been withdrawn) of any event or circumstance of a type described in
     Section 2.10(c) or (d).

          "Affiliate" means, as to any Person, any other Person that, directly
     or indirectly, controls, is controlled by or is under common control with
     such Person or is a director or officer of such Person.  For purposes of
     this definition, the term "control" (including the terms "controlling",
     "controlled by" and "under common control with") of a Person means the
     possession, direct or indirect, of the power to vote 5% or more of the
     Voting Interests of such Person or to direct or cause the direction of the
     management and policies of such Person, whether through the ownership of
     Voting Interests, by contract or otherwise.

          "Agents" has the meaning specified in the recital of parties to this
     Agreement.

          "Applicable Facility Fee Percentage" means, as of any date, a
     percentage per annum determined by reference to the Public Debt Rating in
     effect on such date as set forth below:
<PAGE>

                                       3

<TABLE>
<CAPTION>
Public Debt Rating    Applicable Facility Fee
S&P/Moody's                  Percentage
---------------------------------------------
<S>                   <C>
Level 1                                 0.100%
--------------------
A-/A3 and above
---------------------------------------------
Level 2                                 0.125%
--------------------
BBB+/Baa1
---------------------------------------------
Level 3                                 0.150%
--------------------
BBB/Baa2
---------------------------------------------
Level 4                                 0.200%
--------------------
BBB-/Baa3
---------------------------------------------
Level 5                                 0.300%
--------------------
Lower than Level 4
---------------------------------------------
</TABLE>

          "Applicable Lending Office" means, with respect to each Lender, such
     Lender's Domestic Lending Office in the case of a Base Rate Advance and
     such Lender's Eurodollar Lending Office in the case of a Eurodollar Rate
     Advance and, in the case of a Competitive Bid Advance, the office of such
     Lender notified by such Lender to the Administrative Agent as its
     Applicable Lending Office with respect to such Competitive Bid Advance.

          "Applicable Margin" means, as of any date, a percentage per annum
     determined by reference to the Public Debt Rating in effect on such date as
     set forth below:

<TABLE>
<CAPTION>
                                             Applicable Margin
                        Applicable Margin          for
 Public Debt Rating          for              Eurodollar Rate
    S&P/Moody's         Base Rate Advances        Advances
------------------------------------------------------------
<S>                   <C>                  <C>
Level 1                             0.00%              0.400%
--------------------
A-/A3 and above
------------------------------------------------------------
Level 2                             0.00%              0.500%
--------------------
BBB+/Baa1
------------------------------------------------------------
Level 3                             0.00%              0.600%
--------------------
BBB/Baa2
------------------------------------------------------------
Level 4                             0.00%              0.675%
--------------------
BBB-/Baa3
------------------------------------------------------------
Level 5                             0.00%              1.325%
--------------------
Lower than Level 4
------------------------------------------------------------
</TABLE>

     provided, however, that, if as of any date of determination the aggregate
     outstanding principal amount of Committed Advances on such day exceeds 33%
     of the aggregate Commitments on such day, the Applicable Margin for such
     date shall be the percentage per annum determined above plus 0.125%.
<PAGE>

                                       4

          "Approved Fund" means, with respect to any Lender that is a fund that
     invests in bank loans, any other fund that invests in bank loans and is
     advised or managed by the same investment advisor as such Lender or by an
     Affiliate of such investment advisor.

          "Approved Investment" means any Investment that was made by the Parent
     or any of its Subsidiaries pursuant to investment guidelines set forth by
     the board of directors of the Parent which are consistent with past
     practices.

          "Arrangers" means each of the Lead Arranger and the Co-Arranger.

          "Assignment and Acceptance" means an assignment and acceptance entered
     into by a Lender and an Eligible Assignee, and accepted by the
     Administrative Agent, in accordance with Section 9.07 and in substantially
     the form of Exhibit C hereto.

          "Bankruptcy Law" means any proceeding of the type referred to in
     Section 6.01(f) or Title 11, U.S. Code, or any similar foreign, federal or
     state law for the relief of debtors.

          "Base Rate" means a fluctuating interest rate per annum in effect from
     time to time, which rate per annum shall at all times be equal to the
     higher of:

               (a) the rate of interest announced publicly by MGT in New York,
          New York, from time to time, as MGT s prime rate; and

               (b) 1/2 of 1% per annum above the Federal Funds Rate.

          "Base Rate Advance" means a Committed Advance that bears interest as
     provided in Section 2.07(a)(i).

          "Borrowers"  has the meaning specified in the recital of parties to
     this Agreement.

          "Borrowers' Five-Year Revolving Credit Facility" means the Five-Year
     Revolving Credit Agreement dated as of the date hereof among the Borrowers,
     the lenders party thereto, ML&Co. as syndication agent and lead arranger,
     MGT as administrative agent and J.P. Morgan as co-arranger, as the same may
     be amended, modified or otherwise supplemented from time to time.

          "Borrowers' Account" means the account of one or more  Borrowers
     maintained by such Borrower(s) with The Bank of Bermuda Limited at its
     office at 6 Front Street, Hamilton, Bermuda HM12 Account No.18000035,
     Attention: Maria Aguiar, or such other account as the Parent shall specify
     in writing to the Administrative Agent or such other account as the
     Borrowers (or any one of them) shall specify in writing to the
     Administrative Agent.

          "Borrowing" means a Committed Borrowing or a Competitive Bid
     Borrowing.
<PAGE>

                                       5

          "Business Day" means a day of the year on which banks are not required
     or authorized by law to close in New York City and, if the applicable
     Business Day relates to any Eurodollar Rate Advances or LIBO Rate Advances,
     on which dealings are carried on in the London interbank market.

          "Capitalized Leases" means all leases that have been or should be, in
     accordance with GAAP, recorded as capitalized leases.

          "Change of Control" means the occurrence of any of the following:  (a)
     any Person or two or more Persons acting in concert shall have acquired
     beneficial ownership (within the meaning of Rule 13d-3 of the Securities
     and Exchange Commission under the Securities Exchange Act of 1934),
     directly or indirectly, of Voting Interests of the Parent (or other
     securities convertible into such Voting Interests) representing 30% or more
     of the combined voting power of all Voting Interests of the Parent; or (b)
     a majority of the board of directors of the Parent shall not be Continuing
     Members; or (c) any Person or two or more Persons acting in concert shall
     have acquired by contract or otherwise, or shall have entered into a
     contract or arrangement that results in its or their acquisition of the
     power to exercise, directly or indirectly, a controlling influence over the
     management or policies of the Parent.

          "CIGNAP&C" has the meaning specified in the Preliminary Statements.

          "Co-Arranger" has the meaning specified in the recital of parties to
     this Agreement.

          "Commitment" means, with respect to any Lender at any time, the amount
     set forth opposite such Lender's name on Schedule I hereto under the
     caption "Commitment" or, if such Lender has entered into one or more
     Assignment and Acceptances, set forth for such Lender in the Register
     maintained by the Administrative Agent pursuant to Section 9.07(d) as such
     Lender's "Commitment", as such amount may be reduced at or prior to such
     time pursuant to Section 2.05.

          "Committed Advance" has the meaning specified in Section 2.01(a).

          "Committed Borrowing" means a borrowing consisting of simultaneous
     Committed Advances of the same Type made by the Lenders to the same
     Borrower.

          "Committed Facility" means, at any time, the aggregate amount of the
     Lenders' Commitments at such time.

          "Committed Note" means a promissory note of any Borrower payable to
     the order of any Lender, in substantially the form of Exhibit A hereto,
     evidencing the aggregate indebtedness of such Borrower to such Lender
     resulting from the Committed Advances made by such Lender, as amended.
<PAGE>

                                       6

          "Competitive Bid Advance" means an advance by a Lender to any Borrower
     as part of a Competitive Bid Borrowing resulting from the competitive
     bidding procedure described in Section 2.03 and refers to a Fixed Rate
     Advance or a LIBO Rate Advance.

          "Competitive Bid Borrowing" means a borrowing consisting of
     simultaneous Competitive Bid Advances from each of the Lenders whose offer
     to make one or more Competitive Bid Advances as part of such borrowing has
     been accepted under the competitive bidding procedure described in Section
     2.03.

          "Competitive Bid Note" means a promissory note of any Borrower payable
     to the order of any Lender, in substantially the form of Exhibit A-2
     hereto, evidencing the indebtedness of such Borrower to such Lender
     resulting from Competitive Bid Advances made by such Lender.

          "Confidential Information" means information that any Loan Party
     furnishes to any Agent or any Lender, but does not include any such
     information that is or becomes generally available to the public other than
     as a result of a breach by such Agent or any Lender of its obligations
     hereunder or that is or becomes available to such Agent or such Lender from
     a source other than the Loan Parties that is not, to the best of such
     Agent's or such Lender's knowledge, acting in violation of a
     confidentiality agreement with a Loan Party.

          "Consolidated" refers to the consolidation of accounts in accordance
     with GAAP.

          "Consolidated Net Income" means, for any period, the net income of the
     Parent and its Consolidated Subsidiaries, determined on a Consolidated
     basis for such period.

          "Consolidated Tangible Net Worth" means at any date the Consolidated
     stockholder's equity of the Parent and its Consolidated Subsidiaries (plus,
     to the extent not included in such Consolidated stockholder's equity, the
     outstanding amount of all Mandatorily Convertible Preferred Securities)
     less their Consolidated Intangible Assets, all determined as of such date,
     provided that such determination for purposes of Section 5.04 shall be made
     without giving effect to adjustments pursuant to Statement No. 115 of the
     Financial Accounting Standards Board of the United States of America. For
     purposes of this definition, "Intangible Assets" means the amount (to the
     extent reflected in determining such Consolidated stockholder's equity) of
     (i) all write-ups (other than write-ups resulting from foreign currency
     translations and write-ups of assets of a going concern business made
     within twelve months after the acquisition of such business) subsequent to
     March 31, 1999 in the book value of any asset owned by the Parent or a
     Consolidated Subsidiary and (ii) all unamortized debt discount and expense,
     unamortized deferred charges, deferred acquisition cost relating to the
     acquisition of the stock or assets of any other Person, goodwill, patents,
     trademarks, service marks, trade names, anticipated future benefit of tax
     loss carry-forwards, copyrights, organization or developmental expense and
     other intangible assets.
<PAGE>

                                       7

          "Contingent Obligation" means, with respect to any Person, any
     obligation or arrangement of such Person to guarantee or intended to
     guarantee any Debt, leases, dividends or other payment obligations
     ("primary obligations") of any other Person (the "primary obligor") in any
     manner, whether directly or indirectly, including, without limitation, (a)
     the direct or indirect guarantee, endorsement (other than for collection or
     deposit in the ordinary course of business), co-making, discounting with
     recourse or sale with recourse by such Person of the obligation of a
     primary obligor, (b) the obligation to make take-or-pay or similar
     payments, if required, regardless of nonperformance by any other party or
     parties to an agreement or (c) any obligation of such Person, whether or
     not contingent, (i) to purchase any such primary obligation or any property
     constituting direct or indirect security therefor, (ii) to advance or
     supply funds (A) for the purchase or payment of any such primary obligation
     or (B) to maintain working capital or equity capital of the primary obligor
     or otherwise to maintain the net worth or solvency of the primary obligor,
     (iii) to purchase property, assets, securities or services primarily for
     the purpose of assuring the owner of any such primary obligation of the
     ability of the primary obligor to make payment of such primary obligation
     or (iv) otherwise to assure or hold harmless the holder of such primary
     obligation against loss in respect thereof; provided, however, that
     Contingent Obligations shall not include any obligations of any such Person
     arising under insurance contracts entered into in the ordinary course of
     business. The amount of any Contingent Obligation shall be deemed to be an
     amount equal to the stated or determinable amount of the primary obligation
     in respect of which such Contingent Obligation is made (or, if less, the
     maximum amount of such primary obligation for which such Person may be
     liable pursuant to the terms of the instrument evidencing such Contingent
     Obligation) or, if not stated or determinable, the maximum reasonably
     anticipated liability in respect thereof (assuming such Person is required
     to perform thereunder), as determined by such Person in good faith.

          "Continuing Member" means a member of the Board of Directors of the
     Parent who either (i) was a member of the Parent's Board of Directors on
     the date of execution and delivery of this Agreement by the Parent and has
     been such continuously thereafter or (ii) became a member of such Board of
     Directors after such date and whose election or nomination for election was
     approved by a vote of the majority of the Continuing Members then members
     of the Parent's Board of Directors.

          "Conversion", "Convert" and "Converted" each refer to a conversion of
     Committed Advances of one Type into Committed Advances of the other Type
     pursuant to Section 2.09 or 2.10.

          "Debenture" means debt securities issued by ACE INA or the Parent to
     the Special Purpose Trust in exchange for proceeds of Preferred Securities.

          "Debt" of any Person means, without duplication for purposes of
     calculating financial ratios, (a) all indebtedness of such Person for
     borrowed money, (b) all obligations of such Person for the deferred
     purchase price of property or services (other than trade payables incurred
     in the ordinary course of such Person's business), (c) all obligations of
     such Person evidenced by notes, bonds, debentures or other similar
     instruments, (d) all obligations of such Person created or arising under
     any conditional sale or other title retention agreement with respect to
     property
<PAGE>

                                       8

     acquired by such Person (even though the rights and remedies of the seller
     or lender under such agreement in the event of default are limited to
     repossession or sale of such property), (e) all obligations of such Person
     as lessee under Capitalized Leases (excluding imputed interest), (f) all
     obligations of such Person under acceptance, letter of credit or similar
     facilities, (g) all obligations of such Person to purchase, redeem, retire,
     defease or otherwise make any payment in respect of any Equity Interests in
     such Person or any other Person or any warrants, rights or options to
     acquire such capital stock (excluding payments under a contract for the
     forward sale of ordinary shares of such Person issued in a public
     offering), valued, in the case of Redeemable Preferred Interests, at the
     greater of its voluntary or involuntary liquidation preference plus accrued
     and unpaid dividends, (h) all Contingent Obligations of such Person in
     respect of Debt (of the types described above) of any other Person and (i)
     all indebtedness and other payment obligations referred to in clauses (a)
     through (h) above of another Person secured by (or for which the holder of
     such Debt has an existing right, contingent or otherwise, to be secured by)
     any Lien on property (including, without limitation, accounts and contract
     rights) owned by such Person, even though such Person has not assumed or
     become liable for the payment of such indebtedness or other payment
     obligations; provided, however, that the amount of Debt of such Person
     under clause (i) above shall, if such Person has not assumed or otherwise
     become liable for any such Debt, be limited to the lesser of the principal
     amount of such Debt or the fair market value of all property of such Person
     securing such Debt; provided further that "Debt" shall not include
     obligations in respect of insurance or reinsurance contracts entered into
     in the ordinary course of business; provided further that, solely for
     purposes of Section 5.04 and the definitions of "Adjusted Consolidated
     Debt" and "Total Capitalization", "Debt" shall not include (x) any
     contingent obligations of any Person under or in connection with
     acceptance, letter of credit or similar facilities or (y) obligations of
     the Parent or ACE INA under any Debentures or under any subordinated
     guaranty of any Preferred Securities or obligations of the Special Purpose
     Trust under any Preferred Securities.

          "Default" means any Event of Default or any event that would
     constitute an Event of Default but for the requirement that notice be given
     or time elapse or both.

          "Defaulted Advance" means, with respect to any Lender at any time, the
     portion of any Committed Advance required to be made by such Lender to any
     Borrower pursuant to Section 2.01 or 2.02 at or prior to such time that has
     not been made by such Lender or by the Administrative Agent for the account
     of such Lender pursuant to Section 2.02(d) as of such time.

          "Defaulted Amount" means, with respect to any Lender at any time, any
     amount required to be paid by such Lender to any Agent or any other Lender
     hereunder or under any other Loan Document at or prior to such time that
     has not been so paid as of such time, including, without limitation, any
     amount required to be paid by such Lender to (a) the Administrative Agent
     pursuant to Section 2.02(d) to reimburse the Administrative Agent for the
     amount of any Committed Advance made by the Administrative Agent for the
     account of such Lender, (b) any other Lender pursuant to Section 2.13 to
     purchase any participation in Committed Advances owing to such other Lender
     and (c) any Agent pursuant to Section 8.05 to reimburse such Agent for such
     Lender's ratable share of any amount required to be paid by the Lenders to
     such Agent as provided therein.
<PAGE>

                                       9

          "Defaulting Lender" means, at any time, any Lender that, at such time,
     (a) owes a Defaulted Advance or a Defaulted Amount or (b) shall take any
     action or be the subject of any action or proceeding of a type described in
     Section 6.01(f).

          "Designated Bidder" means (a) an Eligible Assignee or (b) a special
     purpose corporation that is engaged in making, purchasing or otherwise
     investing in commercial loans in the ordinary course of its business and
     that issues (or the parent of which issues) commercial paper rated at least
     "Prime-1" (or the then equivalent grade) by Moody's or "A-1" (or the then
     equivalent grade) by S&P that, in the case of either clause (a) or (b), (i)
     is organized under the laws of the United States or any State thereof, (ii)
     shall have become a party hereto pursuant to Section 9.07(f), (g) and (h)
     and (iii) is not otherwise a Lender.

          "Designation Agreement" means a designation agreement entered into by
     a Lender (other than a Designated Bidder) and a Designated Bidder, and
     accepted by the Administrative Agent and the Parent (such acceptance, in
     the case of the Parent, not to be unreasonably withheld), in substantially
     the form of Exhibit I hereto.

          "Domestic Lending Office" means, with respect to any Lender, the
     office of such Lender specified as its "Domestic Lending Office" opposite
     its name on Schedule I hereto or in the Assignment and Acceptance pursuant
     to which it became a Lender, as the case may be, or such other office of
     such Lender as such Lender may from time to time specify to any  Borrower
     and the Administrative Agent.

          "Effective Date" means the first date on which the conditions set
     forth in Article III shall have been satisfied.

          "Eligible Assignee" means (i) a Lender, (ii) an Affiliate of a Lender,
     or (iii) a commercial bank, a savings bank or other financial institution
     that is approved by the Administrative Agent and, unless an Event of a
     Default has occurred and is continuing at the time any assignment is
     effected pursuant to Section 9.07, the Parent (such approval of the Parent
     not to be unreasonably withheld or delayed); provided, however, that
     neither any Loan Party nor any Affiliate of a Loan Party shall qualify as
     an Eligible Assignee under this definition.

          "Environmental Action" means any action, suit, demand, demand letter,
     claim, notice of non-compliance or violation, notice of liability or
     potential liability, investigation, proceeding, consent order or consent
     agreement relating in any way to any Environmental Law, any Environmental
     Permit or Hazardous Material or arising from alleged injury or threat to
     health, safety or the environment, including, without limitation, (a) by
     any governmental or regulatory authority for enforcement, cleanup, removal,
     response, remedial or other actions or damages and (b) by any governmental
     or regulatory authority or third party for damages, contribution,
     indemnification, cost recovery, compensation or injunctive relief.

          "Environmental Law" means any Federal, state, local or foreign
     statute, law, ordinance, rule, regulation, code, order, writ, judgment,
     injunction, decree or judicial or agency interpretation, policy or guidance
     relating to pollution or protection of the environment, health,
<PAGE>

                                      10

     safety or natural resources, including, without limitation, those relating
     to the use, handling, transportation, treatment, storage, disposal, release
     or discharge of Hazardous Materials.

          "Environmental Permit" means any permit, approval, identification
     number, license or other authorization required under any Environmental
     Law.

          "Equity Interests" means, with respect to any Person, shares of
     capital stock of (or other ownership or profit interests in) such Person,
     warrants, options or other rights for the purchase or other acquisition
     from such Person of shares of capital stock of (or other ownership or
     profit interests in) such Person, securities convertible into or
     exchangeable for shares of capital stock of (or other ownership or profit
     interests in) such Person or warrants, rights or options for the purchase
     or other acquisition from such Person of such shares (or such other
     interests), and other ownership or profit interests in such Person
     (including, without limitation, partnership, member
     or trust interests therein), whether voting or nonvoting, and whether or
     not such shares, warrants, options, rights or other interests are
     authorized or otherwise existing on any date of determination.

          "Equity Issuance" means one or more issuances by the Parent and/or ACE
     INA of Equity Interests and/or equity-linked securities, the Net Cash
     Proceeds of which shall be at least $500,000,000.

          "ERISA" means the Employee Retirement Income Security Act of 1974, as
     amended from time to time, and the regulations promulgated and rulings
     issued thereunder.

          "ERISA Affiliate" means any Person that for purposes of Title IV of
     ERISA is a member of the controlled group of any Loan Party, or under
     common control with any Loan Party, within the meaning of Section 414 of
     the Internal Revenue Code or Section 4001 of ERISA.

          "Eurocurrency Liabilities" has the meaning specified in Regulation D
     of the Board of Governors of the Federal Reserve System, as in effect from
     time to time.

          "Eurodollar Lending Office" means, with respect to any Lender, the
     office of such Lender specified as its "Eurodollar Lending Office" opposite
     its name on Schedule I hereto or in the Assignment and Acceptance pursuant
     to which it became a Lender (or, if no such office is specified, its
     Domestic Lending Office), or such other office of such Lender as such
     Lender may from time to time specify to the Parent and the Administrative
     Agent.

          "Eurodollar Rate" means, for any Interest Period for all Eurodollar
     Rate Advances comprising part of the same Committed Borrowing, an interest
     rate per annum equal to the rate per annum (rounded upwards, if not an
     integral multiple of 1/32 or 1/100 of 1%, to the nearest 1/100 of 1%)
     appearing on Dow Jones Markets (Telerate) Page 3750 (or any successor page)
     as the London interbank offered rate for deposits in U.S. dollars at 11:00
     A.M. (London time) two Business Days before the first day of such Interest
     Period for a period equal to such Interest Period (provided that, if for
     any reason such rate is not available, the term "Eurodollar Rate" shall
     mean, for any Interest Period for all Eurodollar Rate Advances comprising
     part of the same
<PAGE>

                                      11

     Committed Borrowing, the rate per annum (rounded upwards,
     if not an integral multiple of 1/32 or 1/100 of 1% to the nearest 1/100 of
     1%) appearing on Reuters Screen LIBO Page as the London interbank offered
     rate for deposits in Dollars at approximately 11:00 A.M. (London time) two
     Business Days prior to the first day of such Interest Period for a term
     comparable to such Interest Period; provided, however, if more than one
     rate is specified on Reuters Screen LIBO Page, the applicable rate shall be
     the arithmetic mean of all such rates).

          "Eurodollar Rate Advance" means an Advance that bears interest as
     provided in Section 2.07(a)(ii).

          "Eurodollar Rate Reserve Percentage" for any Interest Period for all
     Eurodollar Rate Advances comprising part of the same Committed Borrowing
     means the reserve percentage applicable two Business Days before the first
     day of such Interest Period under regulations issued from time to time by
     the Board of Governors of the Federal Reserve System (or any successor)
     for determining the maximum reserve requirement (including, without
     limitation, any emergency, supplemental or other marginal reserve
     requirement) for a member bank of the Federal Reserve System in New York
     City with respect to liabilities or assets consisting of or including
     Eurocurrency Liabilities (or with respect to any other category of
     liabilities that includes deposits by reference to which the interest rate
     on Eurodollar Rate Advances is determined) having a term equal to such
     Interest Period.

          "Events of Default" has the meaning specified in Section 6.01.

          "Existing Debt" means Debt of each Loan Party and its Subsidiaries
     outstanding immediately before giving effect to the Acquisition.

          "Federal Funds Rate" means, for any period, a fluctuating interest
     rate per annum equal for each day during such period to the weighted
     average of the rates on overnight Federal funds transactions with members
     of the Federal Reserve System arranged by Federal funds brokers, as
     published for such day (or, if such day is not a Business Day, for the next
     preceding Business Day) by the Federal Reserve Bank of New York, or, if
     such rate is not so published for any day that is a Business Day, the
     average of the quotations for such day for such transactions received by
     the Administrative Agent from three Federal funds brokers of recognized
     standing selected by it.

          "Fee Letter" means the fee letter dated January 11, 1999 among the
     Parent, the Arrangers, the Administrative Agent and Merrill Lynch, as
     amended.

          "Fiscal Year" means a fiscal year of the Parent and its Consolidated
     Subsidiaries ending on September 30 in any calendar year.

          "Foreign Government Scheme or Arrangement" has the meaning specified
     in Section 4.01(n) (iv).

          "Foreign Plan" has the meaning specified in Section 4.01 (n) (iv).
<PAGE>

                                      12

          "Fixed Rate Advances" has the meaning specified in Section 2.03(a)(i).

          "GAAP" has the meaning specified in Section 1.03.

          "Granting Lender" has the meaning specified in Section 9.07(l).

          "Guaranty" means the undertaking by each of the Borrowers under
     Article VII.

          "Hazardous Materials" means (a) petroleum or petroleum products, by-
     products or breakdown products, radioactive materials, asbestos-containing
     materials, polychlorinated biphenyls and radon gas and (b) any other
     chemicals, materials or substances designated, classified or regulated as
     hazardous or toxic or as a pollutant or contaminant under any Environmental
     Law.

          "Hedge Agreements" means interest rate swap, cap or collar agreements,
     interest rate future or option contracts, currency swap agreements,
     currency future or option contracts and other hedging agreements.

          "Indemnified Party" has the meaning specified in Section 9.04(b).

          "Information Memorandum" means the information memorandum dated
     February, 1999 used by the Arrangers in connection with the syndication of
     the Commitments.

          "Initial Extension of Credit" means the initial Committed Borrowing
     hereunder.

          "Initial Lenders" has the meaning specified in the recital of parties
     to this Agreement.

          "Interest Period" means, for each Eurodollar Rate Advance comprising
     part of the same Committed Borrowing and each LIBO Rate Advance comprising
     part of the same Competitive Bid Borrowing, the period commencing on the
     date of such Eurodollar Rate Advance or LIBO Rate Advance or the date of
     the Conversion of any Base Rate Advance into such Eurodollar Rate Advance,
     and ending on the last day of the period selected by the Borrower
     requesting such Borrowing or Conversion pursuant to the provisions below
     and, thereafter, each subsequent period commencing on the last day of the
     immediately preceding Interest Period and ending on the last day of the
     period selected by the applicable Borrower pursuant to the provisions
     below. The duration of each such Interest Period shall be one or two weeks
     or one, two, three or six months, as the Borrower requesting such Borrowing
     or Conversion may, upon notice received by the Administrative Agent not
     later than 11:00 A.M. (New York City time) on the third Business Day prior
     to the first day of such Interest Period, select; provided, however, that:

               (a) such Borrower may not select any Interest Period with respect
          to any Eurodollar Rate Advance that ends after the Termination Date;

               (b) Interest Periods commencing on the same date for Eurodollar
          Rate Advances comprising part of the same Committed Borrowing or for
          LIBO Rate
<PAGE>

                                      13

          Advances comprising part of the same Competitive Bid Borrowing shall
     be of the same duration;

               (c) whenever the last day of any Interest Period would otherwise
          occur on a day other than a Business Day, the last day of such
          Interest Period shall be extended to occur on the next succeeding
          Business Day, provided, however, that, if such extension would cause
          the last day of such Interest Period to occur in the next following
          calendar month, the last day of such Interest Period shall occur on
          the next preceding Business Day; and

               (d) whenever the first day of any Interest Period (other than a
          one or two week Interest Period) occurs on a day of an initial
          calendar month for which there is no numerically corresponding day in
          the calendar month that succeeds such initial calendar month by the
          number of months equal to the number of months in such Interest
          Period, such Interest Period shall end on the last Business Day of
          such succeeding calendar month.

          "Internal Revenue Code" means the Internal Revenue Code of 1986, as
     amended from time to time, and the regulations promulgated and rulings
     issued thereunder.

          "Investment" in any Person means any loan or advance to such Person,
     any purchase or other acquisition of any Equity Interests or Debt or the
     assets comprising a division or business unit or a substantial part or all
     of the business of such Person, any capital contribution to such Person or
     any other direct or indirect investment in such Person, including, without
     limitation, any acquisition by way of a merger or consolidation and any
     arrangement pursuant to which the investor incurs Debt of the types
     referred to in clause (h) or (i) of the definition of "Debt" in respect of
     such Person; provided, however, that any purchase by any Loan Party or any
     Subsidiary of any catastrophe-linked instruments which are (x) issued for
     the purpose of transferring traditional reinsurance risk to the capital
     markets and (y) purchased by such Loan Party or Subsidiary in accordance
     with its customary reinsurance underwriting procedures, or the entry by any
     Loan Party or any Subsidiary into swap transactions relating to such
     instruments in accordance with such procedures, shall be deemed to be the
     entry by such Person into a reinsurance contract and shall not be deemed to
     be an Investment by such Person.

          "J.P. Morgan" has the meaning specified in the recital of parties to
     this Agreement.

          "Lead Arranger" has the meaning specified in the recital of parties to
     this Agreement.

          "Lenders" means the Initial Lenders and each Person that shall become
     a Lender hereunder pursuant to Section 9.07(a), (b) and (c) for so long as
     such Initial Lender or Person, as the case may be, shall be a party to this
     Agreement and, solely when used in reference to a Competitive Bid Advance,
     a Competitive Bid Borrowing, a Competitive Bid Note, or a related term,
     each Designated Bidder.
<PAGE>

                                      14

          "LIBO Rate" means, for any Interest Period for all LIBO Rate Advances
     comprising part of the same Competitive Bid Borrowing, an interest rate per
     annum equal to the rate per annum (rounded upwards, if not an integral
     multiple of 1/32 or 1/100 of 1%, to the nearest 1/100 of 1%) appearing on
     Dow Jones Markets (Telerate) Page 3750 (or any successor page) as the
     London interbank offered rate for deposits in U.S. dollars at 11:00 A.M.
     (London time) two Business Days before the first day of such Interest
     Period for a period equal to such Interest Period (provided that, if for
     any reason such rate is not available, the term "LIBO Rate" shall mean for
     any Interest Period for all LIBO Rate Advances comprising part of the same
     Competitive Bid Borrowing, the rate per annum (rounded upwards, if not an
     integral multiple of 1/32 or 1/100 of 1%, to the nearest 1/100 of 1%)
     appearing on Reuters Screen LIBO Page as the London interbank offered rate
     for deposits in Dollars at approximately 11:00 A.M. (London time) two
     Business Days prior to the first day of such Interest Period for a term
     comparable to such Interest Period; provided, however, if more than one
     rate is specified on Reuters Screen LIBO Page, the applicable rate shall be
     the arithmetic mean of all such rates).

          "LIBO Rate Advances" has the meaning specified in Section 2.03(a)(i).

          "Lien" means any lien, security interest or other charge or
     encumbrance of any kind, or any other type of preferential arrangement,
     including, without limitation, the lien or retained security title of a
     conditional vendor and any easement, right of way or other encumbrance on
     title to real property.

          "Loan Documents" means (i) this Agreement, (ii) the Notes and (iii)
     the Fee Letter, in each case as amended.

          "Loan Parties" means the Borrowers.

          "Mandatorily Convertible Preferred Securities" means units comprised
     of Preferred Securities and a contract for the sale of ordinary shares of
     the Parent (including "Feline Prides" or any substantially similar
     securities).

          "Margin Stock" has the meaning specified in Regulation U.

          "Material Adverse Change" means any material adverse change in the
     business, financial condition, operations or properties of the Parent and
     its Subsidiaries, taken as a whole.

          "Material Adverse Effect" means a material adverse effect on (a) the
     business, condition, operations or properties of the Parent and its
     Subsidiaries, taken as a whole, (b) the rights and remedies of any Agent or
     any Lender under any Transaction Document or (c) the ability of the Loan
     Parties, taken as a whole, to perform their obligations under the
     Transaction Documents.

          "Material Financial Obligation" means a principal amount of Debt
     and/or payment obligations in respect of any Hedge Agreement of the Parent
     and/or one or more of its
<PAGE>

                                      15

     Subsidiaries arising in one or more related or
     unrelated transactions exceeding in the aggregate $25,000,000.

          "Merrill Lynch" means Merrill Lynch Capital Corporation.

          "MGT " has the meaning specified in the recital of parties to this
     Agreement.

          "ML&Co." has the meaning specified in the recital of parties to this
     Agreement.

          "Moody's" means Moody's Investors Service, Inc.

          "Multiemployer Plan" means a multiemployer plan, as defined in Section
     4001(a)(3) of ERISA, to which any Loan Party or any ERISA Affiliate is
     making or accruing an obligation to make contributions, or has within any
     of the preceding five plan years made or accrued an obligation to make
     contributions.

          "Net Cash Proceeds" means, with respect to any sale, lease, transfer
     or other disposition of any asset or the incurrence or issuance of any Debt
     or the sale or issuance of any Equity Interests or Preferred Securities by
     any Person, the aggregate amount of cash received from time to time
     (whether as initial consideration or through payment or disposition of
     deferred consideration) by or on behalf of such Person in connection with
     such transaction after deducting therefrom only (without duplication) (a)
     reasonable and customary brokerage commissions, underwriting fees and
     discounts, legal fees, finder's fees and other similar fees and
     commissions, (b) the amount of taxes payable in connection with or as a
     result of such transaction and (c) the amount of any Debt secured by a Lien
     on such asset that, by the terms of the agreement or instrument governing
     such Debt, is required to be repaid upon such disposition, in each case to
     the extent, but only to the extent, that the amounts so deducted are, at
     the time of receipt of such cash, actually paid to a Person that is not an
     Affiliate of such Person or any Loan Party or any Affiliate of any Loan
     Party and are properly attributable to such transaction or to the asset
     that is the subject thereof; provided, however, that in the case of taxes
     that are deductible under clause (b) above but for the fact that, at the
     time of receipt of such cash, such taxes have not been actually paid or are
     not then payable, such Loan Party or such Subsidiary may deduct an amount
     (the "Reserved Amount") equal to the amount reserved in accordance with
     GAAP for such Loan Party's or such Subsidiary's reasonable estimate of such
     taxes, other than taxes for which such Loan Party or such Subsidiary is
     indemnified; provided further that, at the time such taxes are paid, an
     amount equal to the amount, if any, by which the Reserved Amount for such
     taxes exceeds the amount of such taxes actually paid shall constitute "Net
     Cash Proceeds" of the type for which such taxes were reserved for all
     purposes hereunder; provided further that, prior to the date on which the
     Public Debt Rating of the Parent falls to BBB/Baa2 or below, Net Cash
     Proceeds from the sale, lease, transfer or other disposition of any asset
     or Equity Interests shall not include any amount of cash proceeds received
     in connection with such transaction to the extent such cash proceeds are
     reinvested in the same or related line of business as the business of the
     Parent.

          "Note" means a Committed Note or a Competitive Bid Note.
<PAGE>

                                      16

          "Notice of Committed Borrowing" has the meaning specified in Section
     2.02(a).

          "Notice of Competitive Bid Borrowing" has the meaning specified in
     Section 2.03(a).

          "OECD" means the Organization for Economic Cooperation and
     Development.

          "Other Taxes" has the meaning specified in Section 2.12(b).

          "Parent" has the meaning specified in the recital of parties to this
     Agreement.

          "PBGC" means the Pension Benefit Guaranty Corporation (or any
     successor).

          "Pension Plan" means a "pension plan", as such term is defined in
     section 3(2) of ERISA, which is subject to title IV of ERISA (other than
     any "multiemployer plan" as such term is defined in section 4001(a)(3) of
     ERISA), and to which any Loan Party or any ERISA Affiliate may have any
     liability, including any liability by reason of having been a substantial
     employer within the meaning of section 4063 of ERISA at any time during the
     preceding five years, or by reason of being deemed to be a contributing
     sponsor under section 4069 of ERISA.

          "Permitted Liens" means such of the following as to which no
     enforcement, collection, execution, levy or foreclosure proceeding shall
     have been commenced or which are being contested in good faith by
     appropriate proceedings:  (a) Liens for taxes, assessments and governmental
     charges or levies not yet due and payable; (b) Liens imposed by law, such
     as materialmen's, mechanics', carriers', workmen's and repairmen's Liens
     and other similar Liens arising in the ordinary course of business securing
     obligations that are not overdue for a period of more than 90 days; (c)
     pledges or deposits to secure obligations under workers  compensation laws
     or similar legislation or to secure public or statutory obligations; and
     (d) easements, rights of way and other encumbrances on title to real
     property that do not render title to the property encumbered thereby
     unmarketable or materially adversely affect the use of such property for
     its present purposes.

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

          "Pre-Commitment Information" means all of the written information in
     the Information Memorandum provided by or on behalf of the Parent to the
     Administrative Agent and the Lenders (other than any information therein
     provided by ML&Co. and its Affiliates).

          "Preferred Interests" means, with respect to any Person, Equity
     Interests issued by such Person that are entitled to a preference or
     priority over any other Equity Interests issued by such Person upon any
     distribution of such Person's property and assets, whether by dividend or
     upon liquidation.
<PAGE>

                                      17

          "Preferred Securities" means (i) preferred securities issued by the
     Special Purpose Trust which shall provide, among other things, that
     dividends shall be payable only out of proceeds of interest payments on the
     Debentures, or (ii) other instruments that may be treated in whole or in
     part as equity for rating agency purposes while being treated as debt for
     tax purposes.

          "Pro Rata Share" of any amount means, with respect to any Lender at
     any time, the product of such amount times a fraction the numerator of
     which is the amount of such Lender's Commitment at such time (or, if the
     Commitments shall have been terminated pursuant to Section 2.05 or 6.01,
     such Lender's Commitment as in effect immediately prior to such
     termination) and the denominator of which is the Committed Facility at such
     time (or, if the Commitments shall have been terminated pursuant to Section
     2.05 or 6.01, the Committed Facility as in effect immediately prior to such
     termination).

          "Public Debt Rating" means, as of any date, the lower rating that has
     been most recently announced by either S&P or Moody's, as the case may be,
     for any class of non-credit enhanced long-term senior unsecured debt issued
     by the Parent. For purposes of the foregoing, (a) if only one of S&P and
     Moody's shall have in effect a Public Debt Rating, the Applicable Margin or
     the Applicable Facility Fee Percentage, as the case may be, shall be
     determined by reference to the available rating; (b) if (i) from and after
     January 11, 1999, the Parent and its Subsidiaries shall not have sold or
     issued Equity Interests and/or equity-linked securities or sold, leased,
     transferred or otherwise disposed of (including through liquidation)
     material assets generating, in the aggregate, $500,000,000 of Net Cash
     Proceeds which are used to permanently reduce the Committed Facility and
     the ACE INA 364-Day Revolving Credit Facility in accordance with their
     respective terms and (ii) neither S&P nor Moody's shall have in effect a
     Public Debt Rating, the Applicable Margin and the Applicable Facility Fee
     Percentage will be set in accordance with Level 3 under the definition of
     "Applicable Margin" and "Applicable Facility Fee Percentage" as the case
     may be; (c) if neither S&P nor Moody's shall have in effect a Public Debt
     Rating (other than under the circumstances described in clause (b) above),
     the Applicable Margin and the Applicable Facility Fee Percentage shall be
     set in accordance with the level which is three rating levels below the
     Parent's S&P financial strength rating at such time, provided that, in the
     event that the Parent's S&P financial strength rating is affirmed at (i)
     A+, the applicable Level will be Level 2 and (ii) A+ and on credit
     watch/review with negative implications, the applicable Level will be Level
     3; (d) if any rating established by S&P or Moody's shall be changed, such
     change shall be effective as of the date on which such change is first
     announced publicly by the rating agency making such change; and (e) if S&P
     or Moody's shall change the basis on which ratings are established, each
     reference to the Public Debt Rating announced by S&P or Moody's, as the
     case may be, shall refer to the then equivalent rating by S&P or Moody's,
     as the case may be.

          "Purchase Agreement" means the Purchase Agreement dated as of January
     11, 1999 among the Seller, Cigna Holdings, Inc. and the Parent.

          "Redeemable" means, with respect to any Equity Interest, any Debt or
     any other right or obligation, any such Equity Interest, Debt, right or
     obligation that (a) the issuer has undertaken to redeem at a fixed or
     determinable date or dates, whether by operation of a sinking fund or
<PAGE>

                                      18

     otherwise, or upon the occurrence of a condition not solely within the
     control of the issuer or (b) is redeemable at the option of the holder.

          "Register" has the meaning specified in Section 9.07(d).

          "Regulation U" means Regulation U of the Board of Governors of the
     Federal Reserve System, as in effect from time to time.

          "Required Lenders" means, at any time, Lenders owed or holding at
     least a majority in interest of aggregate principal amount of the Committed
     Advances outstanding at such time, or, if no such principal amount is
     outstanding at such time, Lenders holding at least a majority in interest
     of the aggregate of the Commitments; provided, however, that if any Lender
     shall be a Defaulting Lender at such time, there shall be excluded from the
     determination of Required Lenders at such time (A) the aggregate principal
     amount of the Committed Advances owing to such Lender (in its capacity as a
     Lender) and outstanding at such time, and (B) the Unused Commitment of such
     Lender at such time.

          "Responsible Officer" means the Chairman, Chief Executive Officer,
     President, Chief Financial Officer, Treasurer or Chief Investment Officer
     of the Parent.

          "S&P" means Standard & Poor's Ratings Services, a division of The
     McGraw-Hill Companies, Inc.

          "Seller" has the meaning specified in the Preliminary Statements to
     this Agreement.

          "Solvent" and "Solvency" mean, with respect to any Person on a
     particular date, that on such date (a) the fair value of the property of
     such Person is greater than the total amount of liabilities, including,
     without limitation, contingent liabilities, of such Person, (b) the present
     fair salable value of the assets of such Person is not less than the amount
     that will be required to pay the probable liability of such Person on its
     debts as they become absolute and matured, (c) such Person does not intend
     to, and does not believe that it will, incur debts or liabilities beyond
     such Person's ability to pay such debts and liabilities as they mature and
     (d) such Person is not engaged in business or a transaction, and is not
     about to engage in business or a transaction, for which such Person's
     property would constitute an unreasonably small capital. The amount of
     contingent liabilities at any time shall be computed as the amount that, in
     the light of all the facts and circumstances existing at such time,
     represents the amount that can reasonably be expected to become an actual
     or matured liability.

          "SPC" has the meaning specified in Section 9.07(l).

          "Special Purpose Trust" means a special purpose business trust
     established by the Parent or ACE INA of which the Parent or ACE INA will
     hold all the common interests, which will be the issuer of the Preferred
     Securities, and which will loan to the Parent or ACE INA (such loan being
     evidenced by the Debentures) the net proceeds of the issuance and sale of
     the Preferred Securities.
<PAGE>

                                      19

          "Subsidiary" of any Person means any corporation, partnership, joint
     venture, limited liability company, trust or estate of which (or in which)
     more than 50% of (a) the issued and outstanding capital stock having
     ordinary voting power to elect a majority of the Board of Directors of such
     corporation (irrespective of whether at the time capital stock of any other
     class or classes of such corporation shall or might have voting power upon
     the occurrence of any contingency), (b) the interest in the capital or
     profits of such partnership, joint venture or limited liability company or
     (c) the beneficial interest in such trust or estate is at the time directly
     or indirectly owned or controlled by such Person, by such Person and one or
     more of its other Subsidiaries or by one or more of such Person's other
     Subsidiaries.

          "Surviving Debt" means Debt of each Loan Party and its Subsidiaries
     outstanding immediately before and after giving effect to the transactions
     contemplated by the Transaction Documents.

          "Syndication Agent" has the meaning specified in the recital of
     parties to this Agreement.

          "Taxes" has the meaning specified in Section 2.12(a).

          "Tempest" has the meaning specified in the recital of parties to this
     Agreement

          "Termination Date" means the earlier of June 9, 2000 and the date of
     termination in whole of the Commitments.

          "Total Capitalization" means, at any time, an amount (without
     duplication) equal to (i) the then outstanding Consolidated Debt of the
     Parent and its Subsidiaries plus (ii) Consolidated stockholders equity of
     the Parent and its Subsidiaries plus (iii) the then issued and outstanding
     amount of Preferred Securities and  (without duplication) Debentures.

          "Transaction Documents" means, collectively, the Loan Documents and
     the Purchase Agreement.

          "Type" refers to the distinction between Committed Advances bearing
     interest at the Base Rate and Committed Advances bearing interest at the
     Eurodollar Rate.

          "Unused Commitment" means, with respect to any Lender at any time, (a)
     such Lender's Commitment at such time minus (b) the sum of (i) the
     aggregate principal amount of all Committed Advances made by such Lender
     (in its capacity as a Lender) hereunder plus (ii) such Lender's Pro Rata
     Share of the aggregate principal amount of all Competitive Bid Advances
     hereunder.

          "Voting Interests" means shares of capital stock issued by a
     corporation, or equivalent Equity Interests in any other Person, the
     holders of which are ordinarily, in the absence of contingencies, entitled
     to vote for the election of directors (or persons performing similar

<PAGE>

                                      20

     functions) of such Person, even if the right so to vote has been suspended
     by the happening of such a contingency.

          "Welfare Plan" means a welfare plan, as defined in Section 3(1) of
     ERISA, that is maintained for employees of any Loan Party or in respect of
     which any Loan Party could have liability.

          "Withdrawal Liability" has the meaning specified in Part I of Subtitle
     E of Title IV of ERISA.

          SECTION 1.02.  Computation of Time Periods; Other Definitional
Provisions.  In this Agreement and the other Loan Documents in the computation
of periods of time from a specified date to a later specified date, the word
"from" means "from and including" and the words "to" and "until" each mean "to
but excluding".  References in the Loan Documents to any agreement or contract
"as amended" shall mean and be a reference to such agreement or contract as
amended, amended and restated, supplemented or otherwise modified from time to
time in accordance with its terms.

          SECTION 1.03.  Accounting Terms and Determinations.  Unless otherwise
specified herein, all accounting terms used herein shall be interpreted, all
accounting determinations hereunder shall be made, and all financial statements
required to be delivered hereunder shall be prepared in accordance with
generally accepted accounting principles as in effect from time to time
("GAAP"), applied on a basis consistent (except for changes concurred in by the
Parent's independent public accountants) with the most recent audited
consolidated financial statements of the Parent and its Subsidiaries delivered
to the Lenders; provided that, if the Parent notifies the Administrative Agent
that the Parent wishes to amend any covenant in Article V to eliminate the
effect of any change in generally accepted accounting principles on the
operation of such covenant (or if the Administrative Agent notifies
the Parent that the Required Lenders wish to amend Article V for such purpose),
then the Parent's compliance with such covenant shall be determined on the basis
of generally accepted accounting principles in effect immediately before the
relevant change in generally accepted accounting principles became effective
(and, concurrently with the delivery of any financial statements required to be
delivered hereunder, the Parent shall provide a statement of reconciliation
conforming such financial information to such generally accepted accounting
principles as previously in effect), until either such notice is withdrawn or
such covenant is amended in a manner satisfactory to the Parent and the Required
Lenders.

                                  ARTICLE II

                  AMOUNTS AND TERMS OF THE COMMITTED ADVANCES

          SECTION 2.01.  The Committed Advances.  Each Lender severally agrees,
on the terms and conditions hereinafter set forth, to make advances (each, a
"Committed Advance") to any Borrower from time to time on any Business Day
during the period from the date hereof until the Termination Date in an amount
for each such Committed Advance not to exceed such Lender's Unused Commitment at
such time; provided, however, that at any time until the Acquisition has been
fully consummated the sum of (i) the aggregate amount of Committed Advances
outstanding at such time plus (ii) the aggregate
<PAGE>

                                      21

amount of "Committed Advances"under the ACE INA 364-Day Revolving Credit
Facility outstanding at such time shall not exceed a percentage of the sum of
(i) the Commitments hereunder at the time immediately prior to the first
Borrowing hereunder plus the "Commitments" under the ACE INA 364-Day Revolving
Credit Facility at the time prior to the first Borrowing thereunder equal to the
percentage that the portion of the purchase price allocable (in the reasonable
judgment of the Administrative Agent) to the assets acquired at or prior to such
time in connection with the Acquisition bears to the aggregate purchase price
for all assets to be acquired in connection with the Acquisition. Each Committed
Borrowing shall be in an aggregate amount of $10,000,000 or an integral multiple
of $1,000,000 in excess thereof and shall consist of Committed Advances made
simultaneously by the Lenders ratably according to their Commitments. Within the
limits of each Lender's Unused Commitment in effect from time to time, the
Borrowers may borrow under this Section 2.01, prepay pursuant to Section 2.06(a)
and reborrow under this Section 2.01; provided that on and after the date of the
first reduction of the Commitments pursuant to Section 2.05(b), no Borrowing may
be made hereunder (other than a Borrowing which is necessary to repay maturing
commercial paper or a Borrowing to repay a Competitive Bid Advance) until the
date on which the "Commitments" under the ACE INA 364-Day Revolving Credit
Facility do not exceed $1,400,000,000 and the Commitments do not exceed
$500,000,000.

          SECTION 2.02.  Making the Committed Advances.  (a)  Except as
otherwise provided in Section 2.03, each Committed Borrowing shall be made on
notice, given not later than 11:00 A.M. (New York City time) on the third
Business Day prior to the date of the proposed Committed Borrowing in the case
of a Committed Borrowing consisting of Eurodollar Rate Advances, or the first
Business Day prior to the date of the proposed Committed Borrowing in the case
of a Committed Borrowing consisting of Base Rate Advances, by any Borrower to
the Administrative Agent, which shall give to each Lender prompt notice thereof
by telecopier.  Each such notice of a Committed Borrowing (a "Notice of
Committed Borrowing") shall be by telephone, confirmed immediately in writing or
telecopier, in substantially the form of Exhibit B-1 hereto, specifying therein
the requested (i) date of such Committed Borrowing, (ii) Type of Advances
comprising such Committed Borrowing, (iii) aggregate amount of such
Committed Borrowing and (iv) in the case of a Committed Borrowing consisting of
Eurodollar Rate Advances, initial Interest Period for such Committed Advances.
Each Lender shall, before 11:00 A.M. (New York City time) on the date of such
Committed Borrowing, make available for the account of its Applicable Lending
Office to the Administrative Agent at the Administrative Agent's Account, in
same day funds, such Lender's ratable portion of such Committed Borrowing in
accordance with the respective Commitments of such Lender and the other Lenders.
After the Administrative Agent's receipt of such funds and upon fulfillment of
the applicable conditions set forth in Article III, the Administrative Agent
will make such funds available to the Borrower requesting such Committed
Borrowing by crediting the applicable Borrower's Account.

          (b) Anything in subsection (a) above to the contrary notwithstanding,
(i) no Borrower may select Eurodollar Rate Advances if the obligation of the
Lenders to make Eurodollar Rate Advances shall then be suspended pursuant to
Section 2.09 or 2.10 and (ii) the Committed Advances may not be outstanding as
part of more than ten (10) separate Committed Borrowings.

          (c) Each Notice of Committed Borrowing shall be irrevocable and
binding on the Borrower that requested such Committed Borrowing.  In the case of
any Committed Borrowing that the
<PAGE>

                                      22

related Notice of Committed Borrowing specifies is to be comprised of Eurodollar
Rate Advances, the Borrower that requested such Committed Borrowing shall
indemnify each Lender against any loss, cost or expense incurred by such Lender
as a result of any failure to fulfill on or before the date specified in such
Notice of Committed Borrowing for such Committed Borrowing the applicable
conditions set forth in Article III, including, without limitation, any loss
(excluding loss of anticipated profits), cost or expense incurred by reason of
the liquidation or reemployment of deposits or other funds acquired by such
Lender to fund the Committed Advance to be made by such Lender as part of such
Committed Borrowing when such Committed Advance, as a result of such failure, is
not made on such date.

          (d) Unless the Administrative Agent shall have received notice from a
Lender prior to the date of any Committed Borrowing that such Lender will not
make available to the Administrative Agent such Lender's ratable portion of such
Committed Borrowing, the Administrative Agent may assume that such Lender has
made such portion available to the Administrative Agent on the date of such
Committed Borrowing in accordance with subsection (a) of this Section 2.02 and
the Administrative Agent may, in reliance upon such assumption, make available
to the Borrower requesting such Committed Borrowing on such date a corresponding
amount.  If and to the extent that such Lender shall not have so made such
ratable portion available to the Administrative Agent, such Lender and such
Borrower severally agree to repay or pay to the Administrative Agent forthwith
on demand such corresponding amount and to pay interest thereon, for each day
from the date such amount is made available to such Borrower until the date such
amount is repaid or paid to the Administrative Agent, at (i) in the case of such
Borrower, the interest rate applicable at such time under Section 2.07 to
Advances comprising such Committed Borrowing and (ii) in the case of such
Lender, the Federal Funds Rate.  If such Lender shall pay to the Administrative
Agent such corresponding amount, such amount so paid shall constitute such
Lender's Committed Advance as part of such Committed Borrowing for all purposes.

          (e) The failure of any Lender to make the Committed Advance to be made
by it as part of any Committed Borrowing shall not relieve any other Lender of
its obligation, if any, hereunder to make its Committed Advance on the date of
such Committed Borrowing, but no Lender shall be responsible for the failure of
any other Lender to make the Committed Advance to be made by such other Lender
on the date of any Committed Borrowing.

          SECTION 2.03.  The Competitive Bid Advances.  (a)  Each Lender
severally agrees that any Borrower may make Competitive Bid Borrowings under
this Section 2.03 from time to time on any Business Day during the period from
the date hereof until the date occurring 7 days prior to the Termination Date in
the manner set forth below; provided that, following the making of each
Competitive Bid Borrowing, the aggregate amount of the Advances then outstanding
shall not exceed the aggregate amount of the Commitments of the Lenders.

          (i) Any Borrower may request a Competitive Bid Borrowing under this
     Section 2.03 by delivering to the Administrative Agent, by telecopier, a
     notice of a Competitive Bid Borrowing (a "Notice of Competitive Bid
     Borrowing"), in substantially the form of Exhibit B-2 hereto, specifying
     therein the requested (v) date of such proposed Competitive Bid Borrowing,
     (w) aggregate amount of such proposed Competitive Bid Borrowing, (x) in the
     case of a Competitive Bid Borrowing consisting of LIBO Rate Advances,
     Interest Period, or in the
<PAGE>

                                      23

     case of a Competitive Bid Borrowing consisting of Fixed Rate Advances,
     maturity date for repayment of each Fixed Rate Advance to be made as part
     of such Competitive Bid Borrowing (which maturity date may not be earlier
     than the date occurring 7 days after the date of such Competitive Bid
     Borrowing or later than the earlier of (I) 180 days after the date of such
     Competitive Bid Borrowing and (II) the Termination Date), (y) interest
     payment date or dates relating thereto, and (z) other terms (if any) to be
     applicable to such Competitive Bid Borrowing, not later than 10:00 A.M.
     (New York City time) (A) at least one Business Day prior to the date of the
     proposed Competitive Bid Borrowing, if such Borrower shall specify in the
     Notice of Competitive Bid Borrowing that the rates of interest to be
     offered by the Lenders shall be fixed rates per annum (the Advances
     comprising any such Competitive Bid Borrowing being referred to herein as
     "Fixed Rate Advances") and (B) at least four Business Days prior to the
     date of the proposed Competitive Bid Borrowing, if such Borrower shall
     instead specify in the Notice of Competitive Bid Borrowing that the rates
     of interest to be offered by the Lenders are to be based on a margin above
     or below the LIBO Rate (the Advances comprising such Competitive Bid
     Borrowing being referred to herein as "LIBO Rate Advances"). Each Notice of
     Competitive Bid Borrowing shall be irrevocable and binding on such
     Borrower. The Administrative Agent shall in turn promptly notify each
     Lender of each request for a Competitive Bid Borrowing received by it from
     such Borrower by sending such Lender a copy of the related Notice of
     Competitive Bid Borrowing.

          (ii) Each Lender may, if, in its sole discretion, it elects to do so,
     irrevocably offer to make one or more Competitive Bid Advances to the
     Borrower requesting the Competitive Bid Advances as part of such proposed
     Competitive Bid Borrowing at a rate or rates of interest specified by such
     Lender in its sole discretion, by notifying the Administrative Agent (which
     shall give prompt notice thereof to the Borrower requesting the Competitive
     Bid Borrowing), before 9:30 A.M. (New York City time) on the date of such
     proposed Competitive Bid Borrowing, in the case of a Competitive Bid
     Borrowing consisting of Fixed Rate Advances and before 10:00 A.M. (New York
     City time) three Business Days before the date of such proposed Competitive
     Bid Borrowing, in the case of a Competitive Bid Borrowing consisting of
     LIBO Rate Advances, of the minimum amount and maximum amount of each
     Competitive Bid Advance which such Lender would be willing to make as part
     of such proposed Competitive Bid Borrowing (which amounts may, subject to
     the proviso to the first sentence of this Section 2.03(a), exceed such
     Lender's Commitment, if any), the rate or rates of interest therefor and
     such Lender's Applicable Lending Office with respect to such Competitive
     Bid Advance; provided that if the Administrative Agent in its capacity as a
     Lender shall, in its sole discretion, elect to make any such offer, it
     shall notify the Borrower requesting such Competitive Bid Borrowing of such
     offer at least 30 minutes before the time and on the date on which notice
     of such election is to be given to the Administrative Agent by the other
     Lenders. If any Lender shall elect not to make such an offer, such Lender
     shall so notify the Administrative Agent, before 10:00 A.M. (New York City
     time) on the date on which notice of such election is to be given to the
     Administrative Agent by the other Lenders, and such Lender shall not be
     obligated to, and shall not, make any Competitive Bid Advance as part of
     such Competitive Bid Borrowing; provided that the failure by any Lender to
     give such notice shall not cause such Lender to be obligated to make any
     Competitive Bid Advance as part of such proposed Competitive Bid Borrowing.
<PAGE>

                                      24

          (iii)  The Borrower requesting any particular Competitive Bid
     Borrowing shall, in turn, before 10:30 A.M. (New York City time) on the
     date of such proposed Competitive Bid Borrowing, in the case of a
     Competitive Bid Borrowing  consisting of Fixed Rate Advances and before
     11:00 A.M. (New York City time) three Business Days before the date of such
     proposed Competitive Bid Borrowing, in the case of a Competitive Bid
     Borrowing consisting of LIBO Rate Advances, either:

               (x) cancel such Competitive Bid Borrowing by giving the
          Administrative Agent notice to that effect, or

               (y) accept one or more of the offers made by any Lender or
          Lenders pursuant to paragraph (ii) above, in its sole discretion, by
          giving notice to the Administrative Agent of the amount of each
          Competitive Bid Advance (which amount shall be equal to or greater
          than the minimum amount, and equal to or less than the maximum amount,
          notified to such Borrower by the Administrative Agent on behalf of
          such Lender for such Competitive Bid Advance pursuant to paragraph
          (ii) above) to be made by each such Lender as part of such Competitive
          Bid Borrowing, and reject any remaining offers made by Lenders
          pursuant to paragraph (ii) above by giving the Administrative Agent
          notice to that effect. The Borrower that requested such Competitive
          Bid Borrowing shall accept the offers made by any Lender or Lenders to
          make Competitive Bid Advances in order of the lowest to the highest
          rates of interest offered by such Lenders. If two or more Lenders have
          offered the same interest rate, the amount to be borrowed at such
          interest rate will be allocated among such Lenders in proportion to
          the amount that each such Lender offered at such interest rate.

          (iv) If the Borrower that requested any particular Competitive Bid
     Borrowing notifies the Administrative Agent that such Competitive Bid
     Borrowing is cancelled pursuant to paragraph (iii)(x) above, the
     Administrative Agent shall give prompt notice thereof to the Lenders and
     such Competitive Bid Borrowing shall not be made.

          (v) If the Borrower that requested any particular Competitive Bid
     Borrowing accepts one or more of the offers made by any Lender or Lenders
     pursuant to paragraph (iii)(y) above, the Administrative Agent shall in
     turn promptly notify (A) each Lender that has made an offer as described in
     paragraph (ii) above, of the date and aggregate amount of such Competitive
     Bid Borrowing and whether or not any offer or offers made by such Lender
     pursuant to paragraph (ii) above have been accepted by such Borrower, (B)
     each Lender that is to make a Competitive Bid Advance as part of such
     Competitive Bid Borrowing, of the amount of each Competitive Bid Advance to
     be made by such Lender as part of such Competitive Bid Borrowing, and (C)
     each Lender that is to make a Competitive Bid Advance as part of such
     Competitive Bid Borrowing, upon receipt, that the Administrative Agent has
     received forms of documents appearing to fulfill the applicable conditions
     set forth in Article III.  Each Lender that is to make a Competitive Bid
     Advance as part of such Competitive Bid Borrowing shall, before 12:00 noon
     (New York City time) on the date of such Competitive Bid Borrowing
     specified in the notice received from the Administrative Agent pursuant to
     clause (A) of the preceding sentence or any later time when such Lender
     shall have received notice from the Administrative Agent pursuant to clause
     (C) of
<PAGE>

                                      25

     the preceding sentence, make available for the account of its Applicable
     Lending Office to the Administrative Agent at the Administrative Agent's
     Account, in same day funds, such Lender's portion of such Competitive Bid
     Borrowing. Upon fulfillment of the applicable conditions set forth in
     Article III and after receipt by the Administrative Agent of such funds,
     the Administrative Agent will make such funds available to the Borrower
     that requested such Borrowing at the Administrative Agent's address
     referred to in Section 8.02. Promptly after each Competitive Bid Borrowing
     the Administrative Agent will notify each Lender of the amount of the
     Competitive Bid Borrowing.

          (vi) If the Borrower that requested any particular Competitive Bid
     Borrowing notifies the Administrative Agent that it accepts one or more of
     the offers made by any Lender or Lenders pursuant to paragraph (iii)(y)
     above, such notice of acceptance shall be irrevocable and binding on such
     Borrower.  Such Borrower shall indemnify each Lender against any loss, cost
     or expense incurred by such Lender as a result of any failure to fulfill on
     or before the date specified in the related Notice of Competitive Bid
     Borrowing for such Competitive Bid Borrowing the applicable conditions set
     forth in Article III, including, without limitation, any loss (excluding
     loss of anticipated profits), cost or expense incurred by reason of the
     liquidation or reemployment of deposits or other funds acquired by such
     Lender to fund the Competitive Bid Advance to be made by such Lender as
     part of such Competitive Bid Borrowing when such Competitive Bid Advance,
     as a result of such failure, is not made on such date.

          (b) Each Competitive Bid Borrowing shall be in an aggregate amount of
$10,000,000 or an integral multiple of $1,000,000 in excess thereof and,
following the making of each Competitive Bid Borrowing, the Borrowers shall be
in compliance with the limitation set forth in the proviso to the first sentence
of subsection (a) above.

          (c) Within the limits and on the conditions set forth in this Section
2.03, any Borrower may from time to time borrow under this Section 2.03, repay
or prepay pursuant to subsection (d) below, and reborrow under this Section
2.03, provided that a Competitive Bid Borrowing shall not be made within three
Business Days of the date of any other Competitive Bid Borrowing.

          (d) The Borrower to which any particular Competitive Bid Borrowing is
made shall repay to the Administrative Agent for the account of each Lender that
has made a Competitive Bid Advance, on the maturity date of each Competitive Bid
Advance (such maturity date being that specified by such Borrower for repayment
of such Competitive Bid Advance in the related Notice of Competitive Bid
Borrowing delivered pursuant to subsection (a)(i) above, the then unpaid
principal amount of such Competitive Bid Advance.  No Borrower shall have any
right to prepay any principal amount of any Competitive Bid Advance unless, and
then only on the terms, specified by such Borrower for such Competitive Bid
Advance in the related Notice of Competitive Bid Borrowing delivered pursuant to
subsection (a)(i) above.

          (e) The Borrower to which any particular Competitive Bid Borrowing is
made shall pay interest on the unpaid principal amount of each Competitive Bid
Advance from the date of such Competitive Bid Advance to the date the principal
amount of such Competitive Bid Advance is repaid in full, at the rate of
interest for such Competitive Bid Advance specified by the Lender making such
<PAGE>

                                      26

Competitive Bid Advance in its notice with respect thereto delivered pursuant to
subsection (a)(ii) above, payable on the interest payment date or dates
specified by such Borrower for such Competitive Bid Advance in the related
Notice of Competitive Bid Borrowing delivered pursuant to subsection (a)(i)
above.  Upon the occurrence and during the continuance of an Event of Default
under Section 6.01(a) or 6.01(f) or at the request of the Required Lenders
during the existence of any other Event of Default, such Borrower shall pay
interest on the amount of unpaid principal of and interest on each Competitive
Bid Advance owing to a Lender, payable in arrears on the date or dates interest
is payable thereon, at a rate per annum equal at all times to 2% per annum above
the rate per annum otherwise required to be paid on such Competitive Bid
Advance.

          (f) The indebtedness of any Borrower resulting from any Competitive
Bid Advance made to such Borrower as part of a Competitive Bid Borrowing shall
be evidenced by the Competitive Bid Note of such Borrower payable to the order
of the Lender making such Competitive Bid Advance.

          (g) Upon delivery of each Notice of Competitive Bid Borrowing, the
Borrower that requested the applicable Competitive Bid Borrowing shall pay a
non-refundable fee of $1,500 to the Administrative Agent for its own account.

          SECTION 2.04.  Repayment of Committed Advances.  Each Borrower shall
repay to the Administrative Agent for the ratable account of the Lenders on the
Termination Date the aggregate outstanding principal amount of the Committed
Advances then outstanding.

          SECTION 2.05.  Termination or Reduction of the Commitments.  (a)
Optional.  The Parent may, upon at least three Business Days' notice to the
Administrative Agent, terminate in whole or reduce in part the Unused
Commitments; provided, however, that each partial reduction (i) shall be in an
aggregate amount of $10,000,000 or an integral multiple of $1,000,000 in excess
thereof and (ii) shall be made ratably among the Lenders in accordance with
their Commitments.

          (b) Mandatory.  The Committed Facility shall be automatically and
permanently reduced on each date on which prepayment thereof would be required
to be made pursuant to Section 2.06(b) in an amount equal to the amount of such
prepayment (irrespective of whether any Committed Advances are outstanding or
not); provided, however, that each such reduction of the Committed Facility
shall be made ratably among the Lenders in accordance with their Commitments;
provided further that the Committed Facility shall in no event be reduced
pursuant to this Section 2.05(b) below $500,000,000.

          SECTION 2.06.  Prepayments.   (a)  Optional. Each Borrower may, upon
at least one Business Day's notice in the case of Base Rate Advances and three
Business Days' notice in the case of Eurodollar Rate Advances, in each case to
the Administrative Agent stating the proposed date and aggregate principal
amount of the prepayment, and if such notice is given such Borrower shall,
prepay the outstanding aggregate principal amount of the Committed Advances
comprising part of the same Committed Borrowing in whole or ratably in part,
together with accrued interest to the date of such prepayment on the aggregate
principal amount prepaid; provided, however, that (x) each partial prepayment
shall be in an aggregate principal amount of $10,000,000 or an integral multiple
of $1,000,000 in excess thereof and (y) if any prepayment of a Eurodollar Rate
Advance is made on a date
<PAGE>

                                      27

other than the last day of an Interest Period for such Committed Advance, such
Borrower shall also pay any amounts owing pursuant to Section 9.04(c).

          (b) Mandatory.  (i) On and prior to the later of the date on which the
aggregate amount of the "Commitments" under the ACE INA 364-Day Revolving Credit
Facility is reduced to $1,400,000,000 and the date on which the aggregate amount
of Commitments is reduced to $500,000,000, the Parent shall, on the date of
receipt of the Net Cash Proceeds by the Parent or any of its Subsidiaries (other
than ACE INA and its Subsidiaries) from (A) the sale, lease, transfer or other
disposition of any assets of the Parent or any of such Subsidiaries (other than
any sale, lease, transfer or other disposition of assets pursuant to clause (i),
(ii), (iii) or (v) of Section 5.02(d)), (B) the incurrence or issuance by the
Parent or any of such Subsidiaries of any Debt for borrowed money (other than
under this Agreement) and (C) the sale or issuance by the Parent or any of such
Subsidiaries of any Equity Interests (including Preferred Securities) to Persons
that are not Affiliates of the Loan Parties, prepay an aggregate principal
amount of the Committed Advances comprising part of the same Committed
Borrowings in an amount equal to 100% of the amount of such Net Cash Proceeds;
provided that no prepayment shall be required to the extent of the first
$25,000,000 of Net Cash Proceeds generated by any of the events described under
(A), (B) or (C) of this Section 2.06, provided that no more than an aggregate
amount of Net Cash Proceeds equal to $75,000,000 shall be excluded from the
requirements of this Section 2.06(b)(i); provided further that any portion of
such prepayment that would be applied to any Eurodollar Rate Advance and would
be made on a date other than the last day of an Interest Period for such
Committed Advance shall be so paid and applied, at the option of the Parent,
within two weeks upon receipt.

          (ii) All prepayments under this subsection (b) in respect of
Eurodollar Rate Advances shall be made together with accrued interest to the
date of such prepayment on the principal amount prepaid.

          SECTION 2.07.  Interest.  (a)  Scheduled Interest.  Each Borrower
shall pay interest on the unpaid principal amount of each Committed Advance
owing by such Borrower to each Lender from the date of such Committed Advance
until such principal amount shall be paid in full, at the following rates per
annum:

          (i) Base Rate Advances.  During such periods as such Committed Advance
     is a Base Rate Advance, a rate per annum equal at all times to the sum of
     (A) the Base Rate in effect from time to time plus (B) the Applicable
     Margin in effect from time to time, payable in arrears quarterly on the
     last day of each March, June, September and December during such periods
     and on the Termination Date.

          (ii) Eurodollar Rate Advances.  During such periods as such Committed
     Advance is a Eurodollar Rate Advance, a rate per annum equal at all times
     during each Interest Period for such Committed Advance to the sum of (A)
     the Eurodollar Rate for such Interest Period for such Committed Advance
     plus (B) the Applicable Margin in effect from time to time, payable in
     arrears on the last day of such Interest Period and, if such Interest
     Period has a duration of more than three months, on each day that occurs
     during such Interest Period every three months from
<PAGE>

                                      28

     the first day of such Interest Period and on the date such Eurodollar Rate
     Advance shall be Converted or paid in full.

          (iii)  Regulation D Compensation. Each Lender that is subject to
     reserve requirements of the Board of Governors of the Federal Reserve
     System (or any successor) may require the applicable Borrower to pay,
     contemporaneously with each payment of interest on Eurodollar Rate
     Advances, additional interest on the related Eurodollar Rate Advances of
     such Lender at the rate per annum equal to the excess of (i)(A) the
     applicable Eurodollar Rate, divided by (B) one minus the Eurodollar Rate
     Reserve Requirement over (ii) the rate specified in clause (i)(A). Any
     Lender wishing to require payment of such additional interest shall so
     notify such Borrower directly, in which case such additional interest on
     the Eurodollar Rate Advances of such Lender shall be payable to such Lender
     at the place indicated in such notice with respect to each Interest Period
     commencing after the giving of such notice.

          (b) Default Interest.  Upon the occurrence and during the existence of
an Event of Default under Section 6.01(a) or 6.01(f) or at the request of the
Required Lenders during the existence of any other Event of Default, each
Borrower shall pay interest on (i) the unpaid principal amount of each Committed
Advance owing to each Lender, payable in arrears on the dates referred to in
clause (a)(i) or (a)(ii) above, at a rate per annum equal at all times to 2% per
annum above the rate per annum required to be paid on such Committed Advance
pursuant to clause (a)(i) or (a)(ii) above and (ii) to the fullest extent
permitted by law, the amount of any interest, fee or other amount payable under
the Loan Documents that is not paid when due, from the date such amount shall be
due until such amount shall be paid in full, payable in arrears on the date such
amount shall be paid in full and on demand, at a rate per annum equal at all
times to 2% per annum above the rate per annum required to be paid, in the case
of interest, on the Type of Committed Advance on which such interest has accrued
pursuant to clause (a)(i) or (a)(ii) above and, in all other cases, on Base Rate
Advances pursuant to clause (a)(i) above.

          (c) Notice of Interest Period and Interest Rate.  Promptly after
receipt of a Notice of Committed Borrowing pursuant to Section 2.02(a), a notice
of Conversion pursuant to Section 2.09 or a notice of selection of an Interest
Period pursuant to the terms of the definition of "Interest Period", the
Administrative Agent shall give notice to the Borrowers and each Lender of the
applicable Interest Period and the applicable interest rate determined by the
Administrative Agent for purposes of clause (a)(i) or (a)(ii) above.

          SECTION 2.08.  Fees.  (a)  Ticking Fee.  In respect of any portion of
the Commitments, each Borrower jointly and severally agrees that it shall pay to
the Administrative Agent for the account of the Lenders a ticking fee, from
April 6, 1999 in the case of each Initial Lender and from the effective date
specified in the Assignment and Acceptance pursuant to which it became a Lender
in the case of each other Lender until the date on which such portion of the
Commitments is available to be borrowed pursuant to the provisions of Section
3.01, payable in arrears on the date of the initial Committed Borrowing
hereunder, thereafter quarterly on the last day of each March, June, September
and December, commencing on June 30, 1999, and on the Termination Date, at the
rate of 1/10 of 1% per annum on the average daily unavailable Commitment of each
Lender during such quarter; provided, however, that no ticking fee shall accrue
on the Commitment of a Defaulting Lender so long as such
<PAGE>

                                      29

Lender shall be a Defaulting Lender; and provided further that no ticking fee
shall accrue on the portion of the Commitments on which the facility fee is
accruing pursuant to Section 2.08(b).

          (b) Facility Fee.  Each Borrower jointly and severally agrees to pay
to the Administrative Agent for the account of the Lenders a facility fee, from
the Effective Date in the case of each Initial Lender and from the effective
date specified in the Assignment and Acceptance pursuant to which it became a
Lender in the case of each other Lender until the Termination Date, payable in
arrears quarterly on the last day of each March, June, September and December,
commencing on June 30, 1999, and on the Termination Date, at the rate of the
Applicable Facility Fee Percentage on the average daily available Commitment of
each Lender during such quarter; provided, however, that no facility fee shall
accrue on any of the Commitments of a Defaulting Lender so long as such Lender
shall be a Defaulting Lender.

          (c) Agents'  Fees.  Each Borrower jointly and severally agrees that it
shall pay to each Agent for its own account such fees as may from time to time
be agreed between such Borrower and such Agent.

          SECTION 2.09.  Conversion of Advances.  (a)  Optional.  Each Borrower
may on any Business Day, upon notice given to the Administrative Agent not later
than 11:00 A.M. (New York City time) on the third Business Day prior to the date
of the proposed Conversion and subject to the provisions of Section 2.10,
Convert all or any portion of the Committed Advances of one Type comprising the
same Committed  Borrowing into Committed Advances of the other Type; provided,
however, that any Conversion of Eurodollar Rate Advances into Base Rate Advances
shall be made only on the last day of an Interest Period for such Eurodollar
Rate Advances, any Conversion of Base Rate Advances into Eurodollar Rate
Advances shall be in an amount not less than the minimum amount specified in
Section 2.01 for a Committed Borrowing, no Conversion of any Committed Advances
shall result in more separate Committed Borrowings than permitted under Section
2.02(b) and each Conversion of Committed Advances comprising part of the same
Committed Borrowing shall be made ratably among the Lenders in accordance with
their Commitments.  Each such notice of Conversion shall, within the
restrictions specified above, specify (i) the date of such Conversion, (ii) the
Committed Advances to be Converted and (iii) if such Conversion is into
Eurodollar Rate Advances, the duration of the initial Interest Period for such
Committed Advances.  Each notice of Conversion shall be irrevocable and binding
on such Borrower.

          (b) Mandatory.  (i)  On the date on which the aggregate unpaid
principal amount of Eurodollar Rate Advances comprising any Committed Borrowing
shall be reduced, by payment or prepayment or otherwise, to less than
$10,000,000, such Committed Advances shall automatically Convert into Base Rate
Advances at the end of the applicable Interest Period.

          (ii) If the Borrowers shall fail to select the duration of any
Interest Period for any Eurodollar Rate Advances in accordance with the
provisions contained in the definition of "Interest Period" in Section 1.01, the
Administrative Agent will forthwith so notify the Borrowers and the Lenders,
whereupon each such Eurodollar Rate Advance will automatically, on the last day
of the then existing Interest Period therefor, Convert into a Base Rate Advance.
<PAGE>

                                      30

          (iii)  Upon the occurrence and during the existence of an Event of
Default under Section 6.01(a) or 6.01(f) or at the request of the Required
Lenders during the existence of any other Event of Default, (x) each Eurodollar
Rate Advance will automatically, on the last day of the then existing Interest
Period therefor, Convert into a Base Rate Advance and (y) the obligation of the
Lenders to make, or to Convert Advances into, Eurodollar Rate Advances shall be
suspended.

          SECTION 2.10.  Increased Costs, Etc.  (a)  If, due to either (i) the
introduction of or any change in or in the interpretation of, in each case after
the date hereof, any law or regulation or (ii) the compliance with any guideline
or request issued after the date hereof from any central bank or other
governmental authority (whether or not having the force of law), there shall be
any increase in the cost to any Lender of agreeing to make or of making, funding
or maintaining Eurodollar Rate Advances or LIBO Rate Advances (excluding, for
purposes of this Section 2.10, any such increased costs resulting from (x) Taxes
or Other Taxes (as to which Section 2.12 shall govern) and (y) changes in the
basis of taxation of overall net income or overall gross income by the United
States or by the foreign jurisdiction or state under the laws of which such
Lender is organized or has its Applicable Lending Office or any political
subdivision thereof), then the Borrowers jointly and severally agree to pay,
from time to time, within five days after demand by such Lender (with a copy of
such demand to the Administrative Agent), which demand shall include a statement
of the basis for such demand and a calculation in reasonable detail of the
amount demanded, to the Administrative Agent for the account of such Lender
additional amounts sufficient to compensate such Lender for such increased cost.
A certificate as to the amount of such increased cost, submitted to the
Borrowers by such Lender, shall be conclusive and binding for all purposes,
absent manifest error.

          (b) If, due to either (i) the introduction of or any change in or in
the interpretation of any law or regulation, in each case after the date hereof,
or (ii) the compliance with any guideline or request issued after the date
hereof from any central bank or other governmental authority (whether or not
having the force of law), there shall be any increase in the amount of capital
required or expected to be maintained by any Lender or any corporation
controlling such Lender as a result of or based upon the existence of such
Lender's commitment to lend hereunder and other commitments of such type, then,
within five days after demand by such Lender or such corporation (with a copy of
such demand to the Administrative Agent), which demand shall include a statement
of the basis for such demand and a calculation in reasonable detail of the
amount demanded, the Borrowers jointly and severally agree to pay to the
Administrative Agent for the account of such Lender, from time to time as
specified by such Lender, additional amounts sufficient to compensate such
Lender in the light of such circumstances, to the extent that such Lender
reasonably determines such increase in capital to be allocable to the existence
of such Lender's commitment to lend hereunder.  A certificate as to such amounts
submitted to the Borrowers by such Lender shall be conclusive and binding for
all purposes, absent manifest error.

          (c) If, prior to the first day of any Interest Period with respect to
any Eurodollar Rate Advances, the Required Lenders notify the Administrative
Agent that the Eurodollar Rate for such Interest Period for such Committed
Advances will not adequately reflect the cost to such Lenders of making, funding
or maintaining their Eurodollar Rate Advances for such Interest Period, the
Administrative Agent shall forthwith so notify the Borrower and the Lenders,
whereupon each such Eurodollar Rate Advance will (i) in the case of requested
new Eurodollar Rate Advances, be made as or remain Base Rate Advances or as a
Eurodollar Rate Advance with a different Interest Period as to which
<PAGE>

                                      31

the Required Lenders have not given such a notice and (ii) in the case of
existing Eurodollar Rate Advances, automatically, on the last day of the then
existing Interest Period therefor, Convert into Base Rate Advances or be
continued as a Eurodollar Rate Advance with a different Interest Period as to
which the Required Lenders have not given such notice.

          (d) Notwithstanding any other provision of this Agreement, if the
introduction of or any change in or in the interpretation of any law or
regulation, in each case after the date hereof, shall make it unlawful, or any
central bank or other governmental authority shall assert that it is unlawful,
for any Lender or its Eurodollar Lending Office to perform its obligations
hereunder to make Eurodollar Rate Advances or LIBO Rate Advances or to continue
to fund or maintain Eurodollar Rate Advances or LIBO Rate Advances hereunder,
then, on notice thereof and demand therefor by such Lender to the Borrowers
through the Administrative Agent, (i) each Eurodollar Rate Advance or LIBO Rate
Advance, as the case may be, of such Lender will automatically, upon such
demand, Convert into a Base Rate Advance or an Advance that bears interest at
the rate set forth in Section 2.07(a)(i), as the case may be, and (ii) the
obligation of such Lender to make Eurodollar Rate Advances or LIBO Rate Advances
or to Convert Committed Advances into Eurodollar Rate Advances shall be
suspended until the Administrative Agent shall notify the Borrowers that such
Lender has determined that the circumstances causing such suspension no longer
exist (it being understood that such Lender shall make and maintain Base Rate
Advances in the amount that would otherwise be made and maintained by such
Lender as Eurodollar Advances absent the circumstances described above).

          (e) Each Lender shall promptly notify the Borrowers and the
Administrative Agent of any event of which it has actual knowledge which will
result in, and will use reasonable commercial efforts available to it (and not,
in such Lender's good faith judgment, otherwise disadvantageous to such Lender)
to mitigate or avoid, (i) any obligation by the Borrowers to pay any amount
pursuant to subsection (a) or (b) above or pursuant to Section 2.12 or (ii) the
occurrence of any circumstances of the nature described in subsection (c) or (d)
above (and, if any Lender has given notice of any event described in clause (i)
or (ii) above and thereafter such event ceases to exist, such Lender shall
promptly so notify the Borrowers and the Administrative Agent).  Without
limiting the foregoing, each Lender will designate a different Applicable
Lending Office if such designation will avoid (or reduce the cost to the
Borrowers of) any event described in clause (i) or (ii) of the preceding
sentence and such designation will not, in such Lender's good faith judgment, be
otherwise disadvantageous to such Lender.

          (f) Notwithstanding the provisions of subsections (a) and (b) above or
Section 2.12 (and without limiting subsection (e) above), if any Lender fails to
notify the Borrowers of any event or circumstance that will entitle such Lender
to compensation pursuant subsection (a) or (b) above or Section 2.12 within 120
days after such Lender obtains actual knowledge of such event or circumstance,
then such Lender shall not be entitled to compensation, from the Borrowers for
any amount arising prior to the date which is 120 days before the date on which
such Lender notifies the Borrowers of such event or circumstance.

          SECTION 2.11.  Payments and Computations.  (a)  The applicable
Borrower shall make each payment hereunder and under the applicable Notes,
irrespective of any right of counterclaim or set-off (except as otherwise
provided in Section 2.15), not later than 11:00 A.M. (New York City time) on the
day when due in U.S. dollars to the Administrative Agent at the Administrative
Agent's Account in
<PAGE>

                                      32

same day funds, with payments being received by the Administrative Agent after
such time being deemed to have been received on the next succeeding Business
Day. The Administrative Agent will promptly thereafter cause like funds to be
distributed (i) if such payment by such Borrower is in respect of principal,
interest, ticking fees, facility fees or any other amount then payable hereunder
and under the Notes to more than one Lender, to such Lenders for the account of
their respective Applicable Lending Offices ratably in accordance with the
amounts of such respective amounts then payable to such Lenders and (ii) if such
payment by such Borrower is in respect of any amount then payable hereunder to
one Lender, to such Lender for the account of its Applicable Lending Office, in
each case to be applied in accordance with the terms of this Agreement. Upon its
acceptance of an Assignment and Acceptance and recording of the information
contained therein in the Register pursuant to Section 9.07(d), from and after
the effective date of such Assignment and Acceptance, the Administrative Agent
shall make all payments hereunder and under the Notes in respect of the interest
assigned thereby to the Lender assignee thereunder, and the parties to such
Assignment and Acceptance shall make all appropriate adjustments in such
payments for periods prior to such effective date directly between themselves.

          (b) Each Borrower hereby authorizes each Lender, if an Event of
Default under Section 6.01(a) has occurred and is continuing, to charge from
time to time against any or all of such Borrower s accounts with such Lender any
amount that resulted in such Event of Default.

          (c) All computations of interest on Base Rate Advances (and any other
amount payable by reference to the Base Rate) when the Base Rate is determined
by reference to MGT's prime rate shall be made by the Administrative Agent on
the basis of a year of 365 or, if applicable, 366 days; all other computations
of interest and  fees shall be made by the Administrative Agent on the basis of
a year of 360 days.  All such computations shall be made for the actual number
of days (including the first day but excluding the last day) occurring in the
period for which such interest or fees are payable.  Each determination by the
Administrative Agent of an interest rate or fees hereunder shall be conclusive
and binding for all purposes, absent manifest error.

          (d) Whenever any payment hereunder or under the Notes shall be stated
to be due on a day other than a Business Day, such payment shall be made on the
next succeeding Business Day, and such extension of time shall in such case be
included in the computation of payment of interest or fee, as the case may be;
provided, however, that, if such extension would cause payment of interest on or
principal of Eurodollar Rate Advances or LIBO Rate Advances to be made in the
next following calendar month, such payment shall be made on the next preceding
Business Day.

          (e) Unless the Administrative Agent shall have received notice from
any Borrower required to make any payment prior to the date on which any payment
is due to any Lender hereunder that such Borrower will not make such payment in
full, the Administrative Agent may assume that such Borrower has made such
payment in full to the Administrative Agent on such date and the Administrative
Agent may, in reliance upon such assumption, cause to be distributed to each
such Lender on such due date an amount equal to the amount then due such Lender.
If and to the extent such Borrower shall not have so made such payment in full
to the Administrative Agent, each such Lender shall repay to the
Administrative Agent forthwith on demand such amount distributed to such Lender
together with interest thereon, for each day from the date such amount is
distributed to such Lender until the date such Lender repays such amount to the
Administrative Agent, at the Federal Funds Rate.
<PAGE>

                                      33

          SECTION 2.12.  Taxes.  (a)  Any and all payments by any Loan Party
hereunder or under the Notes shall be made, in accordance with Section 2.11,
free and clear of and without deduction for any and all present or future taxes,
levies, imposts, deductions, charges or withholdings, and all liabilities with
respect thereto, excluding, in the case of each Lender and each Agent, taxes
that are imposed on its overall net income by the United States and taxes that
are imposed on its overall net income (and franchise taxes imposed in lieu
thereof) by the state or foreign jurisdiction under the laws of which such
Lender or such Agent, as the case may be, is organized or any political
subdivision thereof and, in the case of each Lender, taxes that are imposed on
its overall net income (and franchise taxes imposed in lieu thereof) by the
state or foreign jurisdiction of such Lender's Applicable Lending Office or any
political subdivision thereof (all such non-excluded taxes, levies, imposts,
deductions, charges, withholdings and liabilities in respect of payments
hereunder or under the Notes being herein referred to as "Taxes").  If any Loan
Party shall be required by law to deduct any Taxes from or in respect of any sum
payable hereunder or under any Note to any Lender or any Agent, (i) the sum
payable by such Loan Party shall be increased as may be necessary so that after
such Loan Party and the Administrative Agent have made all required deductions
(including deductions applicable to additional sums payable under this Section
2.12) such Lender or such Agent, as the case may be, receives an amount equal to
the sum it would have received had no such deductions been made, (ii) such Loan
Party shall make all such deductions and (iii) such Loan Party shall pay the
full amount deducted to the relevant taxation authority or other authority in
accordance with applicable law.

          (b) In addition, each Loan Party shall pay any present or future
stamp, documentary, excise, property or similar taxes, charges or levies that
arise from any payment made hereunder or under the Notes or from the execution,
delivery or registration of, performance under, or otherwise with respect to,
this Agreement or the Notes (herein referred to as "Other Taxes").

          (c) Each Loan Party shall indemnify each Lender and each Agent for and
hold them harmless against the full amount of Taxes and Other Taxes, and for the
full amount of taxes of any kind imposed by any jurisdiction on amounts payable
under this Section 2.12, imposed on or paid by such Lender or such Agent (as the
case may be) and any liability (including penalties, additions to tax, interest
and expenses) arising therefrom or with respect thereto.  This indemnification
payment shall be made within 30 days from the date such Lender or such Agent (as
the case may be) makes written demand therefor.

          (d) Within 30 days after the date of any payment of Taxes, each Loan
Party shall furnish to the Administrative Agent, at its address referred to in
Section 9.02, the original or a certified copy of a receipt evidencing such
payment.  In the case of any payment hereunder or under the Notes by or on
behalf of a Loan Party through an account or branch outside the United States or
by or on behalf of a Loan Party by a payor that is not a United States person,
if such Loan Party determines that no Taxes are payable in respect thereof, such
Loan Party shall furnish, or shall cause such payor to furnish, to the
Administrative Agent, at such address, an opinion of counsel acceptable to the
Administrative Agent stating that such payment is exempt from Taxes. For
purposes of subsections (d) and (e) of this Section 2.12, the terms "United
States" and "United States person" shall have the meanings specified in Section
7701(a)9 and 7701(a)10 of the Internal Revenue Code, respectively.
<PAGE>

                                      34

          (e) Each Lender organized under the laws of a jurisdiction outside the
United States shall, on or prior to the date of its execution and delivery of
this Agreement in the case of each Initial Lender, and on the date of the
Assignment and Acceptance pursuant to which it becomes a Lender in the case of
each other Lender, and from time to time thereafter as requested in writing by
the Parent (but only so long thereafter as such Lender remains lawfully able to
do so), provide each of the Administrative Agent and the Parent with two
original Internal Revenue Service forms W-8BEN (or if delivered on or before
December 31, 1999, form 1001) or W-8ECI (or if delivered on or before December
31, 1999, form 4224) or (in the case of a Lender that has certified in writing
to the Administrative Agent that it is not a "bank" as defined in Section
881(c)(3)(A) of the Internal Revenue Code) form W-8 (and, if such Lender
delivers a form W-8, a certificate representing that such Lender is not a "bank"
for purposes of Section 881(c)(3)(A) of the Internal Revenue Code, is not a 10-
percent shareholder (within the meaning of Section 871(h)(3)(B) of the Internal
Revenue Code) of the Parent and is not a controlled foreign corporation related
to the Parent (within the meaning of Section 864(d)(4) of the Internal Revenue
Code)), as appropriate, or any successor or other form prescribed by the
Internal Revenue Service, certifying that such Lender is exempt from or entitled
to a reduced rate of United States withholding tax on payments pursuant to this
Agreement or the Notes or, in the case of a Lender providing a form W-8,
certifying that such Lender is a foreign corporation, partnership, estate or
trust.  If the forms provided by a Lender at the time such Lender first becomes
a party to this Agreement indicate a United States interest withholding tax rate
in excess of zero, withholding tax at such rate shall be considered excluded
from Taxes unless and until such Lender provides the appropriate forms
certifying that a lesser rate applies, whereupon withholding tax at such lesser
rate only shall be considered excluded from Taxes for periods governed by such
forms; provided, however, that if, at the effective date of the Assignment and
Acceptance pursuant to which a Lender becomes a party to this Agreement, the
Lender assignor was entitled to payments under subsection (a) of this Section
2.12 in respect of United States withholding tax with respect to interest paid
at such date, then, to such extent, the term Taxes shall include (in addition to
withholding taxes that may be imposed in the future or other amounts otherwise
includable in Taxes) United States withholding tax, if any, applicable with
respect to the Lender assignee on such date.  If any form or document referred
to in this subsection (e) requires the disclosure of information, other than
information necessary to compute the tax payable and information required on the
date hereof by Internal Revenue Service form W-8BEN, 1001, W-8ECI, 4224 or W-8
(and the related certificate described above), that the Lender reasonably
considers to be confidential, the Lender shall give notice thereof to the Parent
and shall not be obligated to include in such form or document such confidential
information.

          (f) For any period with respect to which a Lender which may lawfully
do so has failed to provide the Parent with the appropriate form described in
subsection (e) above (other than if such failure is due to a change in law
occurring after the date on which a form originally was required to be provided
or if such form otherwise is not required under subsection (e) above), such
Lender shall not be entitled to indemnification under subsection (a) or (c) of
this Section 2.12 with respect to Taxes imposed by the United States by reason
of such failure; provided, however, that should a Lender become subject to Taxes
because of its failure to deliver a form required hereunder, the Parent shall
take such steps as such Lender shall reasonably request to assist such Lender to
recover such Taxes.
<PAGE>

                                      35

          (g) Each Lender represents and warrants to the Borrowers that, as of
the date such Lender becomes a party to this Agreement, such Lender is entitled
to receive payments hereunder from the Borrowers without deduction or
withholding for or on account of any Taxes.

          SECTION 2.13.  Sharing of Payments, Etc.  If any Lender shall obtain
at any time any payment (whether voluntary, involuntary, through the exercise of
any right of set-off, or otherwise, other than as a result of an assignment
pursuant to Section 9.07) (a) on account of obligations due and payable to such
Lender hereunder and under the Notes at such time in excess of its ratable share
(according to the proportion of (i) the amount of such obligations due and
payable to such Lender at such time to (ii) the aggregate amount of the
obligations due and payable to all Lenders hereunder and under the Notes at such
time) of payments on account of the obligations due and payable to all Lenders
hereunder and under the Notes at such time obtained by all the Lenders at such
time or (b) on account of obligations owing (but not due and payable) to such
Lender hereunder and under the Notes at such time in excess of its ratable share
(according to the proportion of (i) the amount of such obligations owing to such
Lender at such time to (ii) the aggregate amount of the obligations owing (but
not due and payable) to all Lenders hereunder and under the Notes at such time)
of payments on account of the obligations owing (but not due and payable) to all
Lenders hereunder and under the Notes at such time obtained by all of the
Lenders at such time, such Lender shall forthwith purchase from the other
Lenders such interests or participating interests in the obligations due and
payable or owing to them, as the case may be, as shall be necessary to cause
such purchasing Lender to share the excess payment ratably with each of them;
provided, however, that if all or any portion of such excess payment is
thereafter recovered from such purchasing Lender, such purchase from each other
Lender shall be rescinded and such other Lender shall repay to the purchasing
Lender the purchase price to the extent of such Lender's ratable share
(according to the proportion of (i) the purchase price paid to such Lender to
(ii) the aggregate purchase price paid to all Lenders) of such recovery together
with an amount equal to such Lender's ratable share (according to the proportion
of (i) the amount of such other Lender's required repayment to (ii) the total
amount so recovered from the purchasing Lender) of any interest or other amount
paid or payable by the purchasing Lender in respect of the total amount so
recovered.  Each Borrower agrees that any Lender so purchasing an interest or
participating interest from another Lender pursuant to this Section 2.13 may, to
the fullest extent permitted by law, exercise all its rights of payment
(including the right of set-off) with respect to such interest or participating
interest, as the case may be, as fully as if such Lender were the direct
creditor of such Borrower in the amount of such interest or participating
interest, as the case may be.

          SECTION 2.14.  Use of Proceeds.  The proceeds of the Committed
Advances shall be available (and each Borrower agrees that it shall use such
proceeds) solely to pay to the Seller a portion of the cash consideration in
respect of the Acquisition, pay transaction fees and expenses, provide working
capital for such Borrower and its Subsidiaries and for other general corporate
purposes.

          SECTION 2.15.  Defaulting Lenders.  (a)  In the event that, at any one
time, (i) any Lender shall be a Defaulting Lender, (ii) such Defaulting Lender
shall owe a Defaulted Advance to any Borrower and (iii) such Borrower shall be
required to make any payment hereunder or under any other Loan Document to or
for the account of such Defaulting Lender, then such Borrower may, to the
fullest extent permitted by applicable law, set off and otherwise apply the
obligation of such Borrower to make such payment to or for the account of such
Defaulting Lender against the obligation of such Defaulting Lender to make such
Defaulted Advance.  In the event that, on any date, any Borrower shall so set
off
<PAGE>

                                      36

and otherwise apply its obligation to make any such payment against the
obligation of such Defaulting Lender to make any such Defaulted Advance on or
prior to such date, the amount so set off and otherwise applied by such Borrower
shall constitute for all purposes of this Agreement and the other Loan Documents
a Committed Advance by such Defaulting Lender made on the date of such setoff.
Such Committed Advance shall be considered, for all purposes of this Agreement,
to comprise part of the Committed Borrowing in connection with which such
Defaulted Advance was originally required to have been made pursuant to Section
2.01, even if the other Committed Advances comprising such Committed Borrowing
shall be Eurodollar Rate Advances on the date such Advance is deemed to be made
pursuant to this subsection (a). Each Borrower shall notify the Administrative
Agent at any time such Borrower exercises its right of set-off pursuant to this
subsection (a) and shall set forth in such notice (A) the name of the Defaulting
Lender and the Defaulted Advance required to be made by such Defaulting Lender
and (B) the amount set off and otherwise applied in respect of such Defaulted
Advance pursuant to this subsection (a). Any portion of such payment otherwise
required to be made by such Borrower to or for the account of such Defaulting
Lender which is paid by such Borrower, after giving effect to the amount set off
and otherwise applied by such Borrower pursuant to this subsection (a), shall be
applied by the Administrative Agent as specified in subsection (b) or (c) of
this Section 2.15.

          (b) In the event that, at any one time, (i) any Lender shall be a
Defaulting Lender, (ii) such Defaulting Lender shall owe a Defaulted Amount to
any Agent or any of the other Lenders and (iii) any Borrower shall make any
payment hereunder or under any other Loan Document to the Administrative Agent
for the account of such Defaulting Lender, then the Administrative Agent may, on
its behalf or on behalf of such other Agents or such other Lenders and to the
fullest extent permitted by applicable law, apply at such time the amount so
paid by such Borrower to or for the account of such Defaulting Lender to the
payment of each such Defaulted Amount to the extent required to pay such
Defaulted Amount.  In the event that the Administrative Agent shall so apply any
such amount to the payment of any such Defaulted Amount on any date, the amount
so applied by the Administrative Agent shall constitute for all purposes of this
Agreement and the other Loan Documents payment, to such extent, of such
Defaulted Amount on such date.  Any such amount so applied by the Administrative
Agent shall be retained by the Administrative Agent or distributed by the
Administrative Agent to such other Agents or such other Lenders, ratably in
accordance with the respective portions of such Defaulted Amounts payable at
such time to the Administrative Agent, such other Agents and such other Lenders
and, if the amount of such payment made by such Borrower shall at such time be
insufficient to pay all Defaulted Amounts owing at such time to the
Administrative Agent, such other Agents and such other Lenders, in the following
order of priority:

          (i) first, to the Agents for any Defaulted Amounts then owing to the
     Agents, ratably in accordance with such respective Defaulted Amounts then
     owing to the Agents; and

          (ii) second, to any other Lenders for any Defaulted Amounts then owing
     to such other Lenders, ratably in accordance with such respective Defaulted
     Amounts then owing to such other Lenders.

Any portion of such amount paid by such Borrower for the account of such
Defaulting Lender remaining, after giving effect to the amount applied by the
Administrative Agent pursuant to this subsection (b), shall be applied by the
Administrative Agent as specified in subsection (c) of this Section 2.15.
<PAGE>

                                      37

          (c) In the event that, at any one time, (i) any Lender shall be a
Defaulting Lender, (ii) such Defaulting Lender shall not owe a Defaulted Advance
or a Defaulted Amount and (iii) any Borrower, any Agent or any other Lender
shall be required to pay or distribute any amount hereunder or under any other
Loan Document to or for the account of such Defaulting Lender, then such
Borrower or such Agent or such other Lender shall pay such amount to the
Administrative Agent to be held by the Administrative Agent, to the fullest
extent permitted by applicable law, in escrow or the Administrative Agent shall,
to the fullest extent permitted by applicable law, hold in escrow such amount
otherwise held by it.  Any funds held by the Administrative Agent in escrow
under this subsection (c) shall be deposited by the Administrative Agent in an
account with MGT, in the name and under the control of the Administrative Agent,
but subject to the provisions of this subsection (c).  The terms applicable to
such account, including the rate of interest payable with respect to the credit
balance of such account from time to time, shall be MGT s standard terms
applicable to escrow accounts maintained with it.  Any interest credited to such
account from time to time shall be held by the Administrative Agent in escrow
under, and applied by the Administrative Agent from time to time in accordance
with the provisions of, this subsection (c).  The Administrative Agent shall, to
the fullest extent permitted by applicable law, apply all funds so held in
escrow from time to time to the extent necessary to make any Committed Advances
required to be made by such Defaulting Lender and to pay any amount payable by
such Defaulting Lender hereunder and under the other Loan Documents to the
Administrative Agent or any other Lender, as and when such Committed Advances or
amounts are required to be made or paid and, if the amount so held in escrow
shall at any time be insufficient to make and pay all such Committed Advances
and amounts required to be made or paid at such time, in the following order of
priority:

          (i) first, to the Agents for any amounts then due and payable by such
     Defaulting Lender to the Agents hereunder, ratably in accordance with such
     amounts then due and payable to the Agents;

          (ii) second, to any other Lenders for any amount then due and payable
     by such Defaulting Lender to such other Lenders hereunder, ratably in
     accordance with such respective amounts then due and payable to such other
     Lenders; and

          (iii)  third, to such Borrower for any Advance then required to be
     made by such Defaulting Lender pursuant to the Commitment of such
     Defaulting Lender.

In the event that any Lender that is a Defaulting Lender shall, at any time,
cease to be a Defaulting Lender, any funds held by the Administrative Agent in
escrow at such time with respect to such Lender shall be distributed by the
Administrative Agent to such Lender and applied by such Lender to the
obligations owing to such Lender at such time under this Agreement and the other
Loan Documents ratably in accordance with the respective amounts of such
obligations outstanding at such time.

          (d) The rights and remedies against a Defaulting Lender under this
Section 2.15 are in addition to other rights and remedies any such Borrower may
have against such Defaulting Lender with respect to any Defaulted Advance and
that any Agent or any Lender may have against such Defaulting Lender with
respect to any Defaulted Amount.
<PAGE>

                                      38

          SECTION 2.16.  Replacement of Affected Lender.  At any time any Lender
is an Affected Lender, the Borrowers may replace such Affected Lender as a party
to this Agreement with one or more other Lenders and/or, with the consent of the
Administrative Agent (which shall not be unreasonably withheld) Eligible
Assignees, and upon notice from the Borrowers such Affected Lender shall assign
pursuant to an Assignment and Acceptance, and without recourse or warranty, its
Commitment, its Committed Advances, its Committed Note and all of its other
rights and obligations hereunder to such other Lenders and/or Eligible Assignees
for a purchase price equal to the sum of the principal amount of the Committed
Advances so assigned, all accrued and unpaid interest thereon, such Affected
Lender's ratable share of all accrued and unpaid fees payable pursuant to
Section 2.08, any amounts payable pursuant to Section 9.04(c) as a result of
such Affected Lender receiving payment of any Eurodollar Rate Advance prior to
the end of an Interest Period therefor (assuming for such purpose that receipt
of payment pursuant to such Assignment and Acceptance constitutes payment of
such Eurodollar Rate Advances) and all other obligations owed to such Affected
Lender hereunder.

                                  ARTICLE III

                             CONDITIONS OF LENDING

          SECTION 3.01.  Conditions Precedent to All Committed Borrowings in
Respect of the Acquisition.  (a)  Conditions Precedent to Initial Extension of
Credit.  The obligation of each Lender to make a Committed Advance on the
occasion of the Initial Extension of Credit hereunder is subject to the
satisfaction of the following conditions precedent before or concurrently with
the Initial Extension of Credit:

          (i) The Administrative Agent shall have received on or before the day
     of the Initial Extension of Credit the following, each dated such day
     (unless otherwise specified), in form and substance reasonably satisfactory
     to the Administrative Agent (unless otherwise specified) and (except for
     the Committed Notes) in sufficient copies for each Lender:

               (A) The Committed Notes payable to the order of the Lenders.

               (B) Certified copies of the resolutions of the Board of Directors
          of each Loan Party approving the Acquisition and the other
          transactions contemplated by the Transaction Documents and each
          Transaction Document to which it is or is to be a party, and of all
          documents evidencing other necessary corporate action and governmental
          and other third party approvals and consents, if any, with respect to
          the Acquisition and the other transactions contemplated by the
          Transaction Documents and each Transaction Document to which it is or
          is to be a party.

               (C) A copy of a certificate of the Secretary of State or other
          appropriate official of the jurisdiction of incorporation of (x) ACE
          INA dated reasonably near the date of the Initial Extension of Credit,
          certifying (A) as to a true and correct copy of the charter of ACE INA
          and each amendment thereto on file in such Secretary s office and (B)
          that (1) such amendments are the only amendments to ACE INA's charter
          on file in

<PAGE>

                                      39

          such Secretary's office, (2) ACE INA has paid all franchise taxes to
          the date of such certificate and (C) ACE INA is duly incorporated and
          in good standing or presently subsisting under the laws of the State
          of the jurisdiction of its incorporation and (y) each other Loan
          Party, dated reasonably near the Initial Extension of Credit,
          certifying as to the good standing (or existence) of such Loan Party.

               (D) A certificate of each Loan Party, signed on behalf of such
          Loan Party by its President or a Vice President and its Secretary or
          any Assistant Secretary, dated the date of the Initial Extension of
          Credit (the statements made in which certificate shall be true on and
          as of the date of the Initial Extension of Credit), certifying as to
          (1) in the case of ACE INA, the absence of any amendments to the
          charter of such Loan Party since the date of the Secretary of State's
          certificate referred to in Section 3.01(a)(i)(C), (2) a true and
          correct copy of the bylaws (in the case of ACE INA) or the
          constitutional documents (in the case of each other Loan Party) of
          such Loan Party as in effect on the date on which the resolutions
          referred to in Section 3.01(a)(i)(B) were adopted and on the date of
          the Initial Extension of Credit, (3) the due incorporation and good
          standing or valid existence of such Loan Party as a corporation
          organized under the laws of the jurisdiction of its incorporation, and
          the absence of any proceeding for the dissolution or liquidation of
          such Loan Party, (4) the truth of the representations and warranties
          contained in the Loan Documents as though made on and as of the date
          of the Initial Extension of Credit and (5) the absence of any event
          occurring and continuing, or resulting from the Initial Extension of
          Credit, that constitutes a Default.

               (E) A certificate of the Secretary or an Assistant Secretary of
          each Loan Party certifying the names and true signatures of the
          officers of such Loan Party authorized to sign each Transaction
          Document to which it is or is to be a party and the other documents to
          be delivered hereunder and thereunder.

               (F) Certified copy of the Purchase Agreement, duly executed by
          the parties thereto, together with all agreements, instruments and
          other documents delivered in connection therewith as the
          Administrative Agent shall reasonably request.

               (G) Certificates, in substantially the form of Exhibit D hereto,
          attesting to the Solvency of each Loan Party before and after giving
          effect to the Acquisition and the other transactions contemplated by
          the Transaction Documents, from its Chief Financial Officer.

               (H) A favorable opinion of (1) Maples and Calder, Cayman Islands
          counsel for the Parent, in substantially the form of Exhibit E-1
          hereto and as to such other matters as any Lender through the
          Administrative Agent may reasonably request, (2) Mayer, Brown & Platt,
          New York counsel for the Loan Parties, in substantially the form of
          Exhibit E-2 hereto and as to such other matters as any Lender through
          the Administrative Agent may reasonably request, and (3) Conyers Dill
          & Pearman, Bermuda counsel for ACE Bermuda and Tempest, in
          substantially the form of Exhibit E-
<PAGE>

                                      40

          3 hereto and as to such other matters as any Lender through the
          Administrative Agent may reasonably request.

               (I) A certificate of the Parent, signed by its President or Chief
          Financial Officer, dated the date of the Initial Extension of Credit,
          certifying as to (1) a description (in reasonable detail) of the
          portion of the Acquisition occurring on the date of the Initial
          Extension of Credit and (2) the percentage that the portion of the
          purchase price allocable to the assets acquired at such time in
          connection with the Acquisition bears to the aggregate purchase price
          for all assets to be acquired in connection with the Acquisition.

          (ii) (x) No development or change occurring after January 11, 1999,
     and no information becoming known after such date, that results in a
     material change in the post-Acquisition corporate and capitalization
     structure of the Parent or in the capitalization structure of the Parent's
     subsidiaries contemplated in the Pre-Commitment Information and (y) the
     Lenders shall be reasonably satisfied with the corporate and legal
     structure and capitalization of each Loan Party (other than the Parent),
     including the terms and conditions of the constitutional documents of each
     such Person and of each material agreement or instrument relating to such
     structure.

          (iii)  The Lenders shall be reasonably satisfied that all Existing
     Debt, other than Surviving Debt, has been (or concurrently will be)
     prepaid, redeemed or defeased in full or otherwise satisfied and
     extinguished and that all Surviving Debt shall be on terms and conditions
     reasonably satisfactory to the Lenders.

          (iv) Before giving effect to the Acquisition and the other
     transactions contemplated by the Transaction Documents, there shall have
     occurred no material adverse change since September 30, 1998 in the
     business, financial condition, operations or properties of (i) CIGNAP&C or
     (ii) the Parent and its Subsidiaries, taken as a whole.

          (v) There shall exist no action, suit, investigation, litigation or
     proceeding affecting any Loan Party or any of its Subsidiaries pending or
     threatened before any court, governmental agency or arbitrator that (x)
     could be reasonably expected to have a Material Adverse Effect or material
     adverse effect on the business, financial condition, operations or
     properties of CIGNAP&C or (y) would reasonably be expected to materially
     adversely affect the legality, validity or enforceability of any
     Transaction Document or the consummation of the Acquisition or the other
     transactions contemplated by the Transaction Documents.

          (vi) All governmental and third party consents and approvals necessary
     in connection with the portion of the Acquisition occurring on the date of
     the Initial Extension of Credit and the other transactions contemplated by
     the Transaction Documents to occur on such date shall have been obtained
     (without the imposition of any conditions that are not reasonably
     acceptable to the Lenders and that would reasonably be expected to have a
     Material Adverse Effect) and shall remain in effect, except for any such
     consents and approvals, the absence of which, either individually or in the
     aggregate, would not reasonably be likely to have a Material Adverse

<PAGE>

                                      41

     Effect; all applicable waiting periods in connection with the portion of
     the Acquisition occurring on the date of the Initial Extension of Credit
     and the other transactions contemplated by the Transaction Documents to
     occur on such date shall have expired without any negative action being
     taken by any competent authority; and no law or regulation shall be
     applicable in the reasonable judgment of the Lenders that restrains,
     prevents or imposes materially adverse conditions upon the portion of the
     Acquisition occurring on the date of the Initial Extension of Credit or the
     other transactions contemplated by the Transaction Documents to occur on
     such date.

          (vii)  The Pre-Commitment Information shall be true and correct in all
     material aspects, and no additional information shall have come to the
     attention of the Administrative Agent or the Lenders that is inconsistent
     in any material respect with the Pre-Commitment Information or that could
     reasonably be expected to have a Material Adverse Effect.

          (viii)  No development or change occurring after January 11, 1999, and
     no information becoming known after such date, that (x) results in or could
     reasonably be expected to result in a material change in, or material
     deviation from, the Pre-Commitment Information that is or could reasonably
     be expected to be materially adverse to any Borrower or any of its
     Subsidiaries or materially adverse to the Lenders or (y) has had or could
     reasonably be expected to have a Material Adverse Effect.

          (ix) The Borrowers shall have paid all accrued fees of the Agents and
     the Lenders and all accrued expenses of the Agents (including the accrued
     fees and expenses of counsel to the Administrative Agent and local counsel
     on behalf of all of the Lenders), in each case to the extent then due and
     payable.

          (x) The portion of the Acquisition occurring on the date of the
     Initial Extension of Credit shall have been consummated (or shall be
     concurrently consummated) in accordance with the terms of the Purchase
     Agreement, without any waiver or amendment not consented to by the Lenders
     of any material term, provision or condition set forth therein that would
     reasonably be expected to have a Material Adverse Effect, and in compliance
     with all material applicable laws.

          (xi) The Purchase Agreement shall be in full force and effect.

          (b) Conditions Precedent to All Other Committed Borrowings in Respect
of the Acquisition.  The obligation of each Lender to make a Committed Advance
on the occasion of each Committed Borrowing (other than in respect of the
Initial Extension of Credit) the proceeds of which shall be used to fund a
portion of the purchase price in respect of the Acquisition shall be subject to
the reasonable satisfaction of the following conditions precedent before or
concurrently with such Committed Borrowing:

          (i) The Administrative Agent shall have received on or before the day
     of such Committed Borrowing a certificate of the Parent,  in form and
     substance reasonably satisfactory to the Administrative Agent (unless
     otherwise specified) and in sufficient copies for each Lender, signed by
     its President or Chief Financial Officer, dated the date of such Committed
<PAGE>

                                      42

     Borrowing, certifying as to (1) a description (in reasonable detail) of the
     portion of the Acquisition occurring on the date of such Committed
     Borrowing and (2)  the percentage that the portion of the purchase price
     allocable to the assets acquired at such time in connection with the
     Acquisition bears to the aggregate purchase price for all assets to be
     acquired in connection with the Acquisition.

          (ii) All governmental and third party consents and approvals necessary
     in connection with the portion of the Acquisition occurring on the date of
     such Committed Borrowing and the other transactions contemplated by the
     Transaction Documents to occur on such date shall have been obtained
     (without the imposition of any conditions that are not reasonably
     acceptable to the Lenders and that would reasonably be expected to have a
     Material Adverse Effect) and shall remain in effect, except for any such
     consents and approvals, the absence of which, either individually or in the
     aggregate, would not reasonably be likely to have a Material Adverse
     Effect; all applicable waiting periods in connection with the portion of
     the Acquisition occurring on the date of such Committed Borrowing and the
     other transactions contemplated by the Transaction Documents to occur on
     such date shall have expired without any negative action being taken by any
     competent authority, and no law or regulation shall be applicable in the
     reasonable judgment of the Lenders, that restrains, prevents or imposes
     materially adverse conditions upon the portion of the Acquisition occurring
     on the date of such Committed Borrowing or the other transactions
     contemplated by the Transaction Documents to occur on such date.

          (iii)  The portion of the Acquisition occurring on the date of such
     Committed Borrowing shall have been consummated (or shall be concurrently
     consummated) in accordance with the terms of the Purchase Agreement,
     without any waiver or amendment not consented to by the Lenders of any
     material term, provision or condition set forth therein that would
     reasonably be expected to have a Material Adverse Effect and in compliance
     with all material applicable laws.

          (iv) The Purchase Agreement shall be in full force and effect.

          SECTION 3.02.  Conditions Precedent to Each Committed Borrowing in
Respect of the Acquisition.  The obligation of each Lender to make a Committed
Advance on the occasion of each Committed Borrowing (including the initial
Committed Borrowing) shall be subject to the further conditions precedent that
on the date of such Committed Borrowing (a) the following statements shall be
true (and each of the giving of the applicable Notice of Committed Borrowing,
and the acceptance by the Borrower that requested such Committed Borrowing of
the proceeds of such Committed Borrowing shall constitute a representation and
warranty by such Borrower that both on the date of such notice and on the date
of such Committed Borrowing such statements are true):

          (i) the representations and warranties contained in each Loan Document
     are correct in all material respects on and as of such date, before and
     after giving effect to such Committed Borrowing and to the application of
     the proceeds therefrom, as though made on and as of such date, other than
     any such representations or warranties that, by their terms, refer to a
     specific
<PAGE>

                                      43

     date other than the date of such Committed Borrowing, in which case as of
     such specific date; and

          (ii) no Default has occurred and is continuing, or would result from
     such Committed Borrowing or from the application of the proceeds therefrom;

and (b) the Administrative Agent shall have received such other approvals,
opinions or documents as any Lender through the Administrative Agent may
reasonably request.

          SECTION 3.03.  Conditions Precedent to Each Competitive Bid Borrowing.
The obligation of each Lender that is to make a Competitive Bid Advance on the
occasion of a Competitive Bid Borrowing to make such Competitive Bid Advance as
part of such Competitive Bid Borrowing is subject to the conditions precedent
that (i) the Administrative Agent shall have received the written confirmatory
Notice of Competitive Bid Borrowing with respect thereto, and (ii) on the date
of such Competitive Bid Borrowing the following statements shall be true (and
each of the giving of the applicable Notice of Competitive Bid Borrowing and the
acceptance by the Borrower that requested such Competitive Bid Borrowing of the
proceeds of such Competitive Bid Borrowing shall constitute a representation and
warranty by such Borrower that on the date of such Competitive Bid Borrowing
such statements are true):

          (a) the representations and warranties contained in Section 4.01 are
     correct in all material respects on and as of the date of such Competitive
     Bid Borrowing, before and after giving effect to such Competitive Bid
     Borrowing and to the application of the proceeds therefrom, as though made
     on and as of such date, other than any such representations or warranties
     that, by their terms, refer to a specific date other than the date of such
     Competitive Bid Borrowing, in which case as of such specific date, and

          (b) no Default has occurred and is continuing, or would result from
     such Competitive Bid Borrowing or from the application of the proceeds
     therefrom.

          SECTION 3.04.  Determinations Under Section 3.01.  For purposes of
determining compliance with the conditions specified in Section 3.01, each
Lender shall be deemed to have consented to, approved or accepted or to be
satisfied with each document or other matter required thereunder to be consented
to or approved by or acceptable or satisfactory to the Lenders unless an officer
of the Administrative Agent responsible for the transactions contemplated by the
Loan Documents shall have received notice from such Lender prior to the Initial
Extension of Credit specifying its objection thereto and such Lender shall not
have made available to the Administrative Agent such Lender's ratable portion of
such Committed Borrowing.
<PAGE>

                                      44

                                  ARTICLE IV

                        REPRESENTATIONS AND WARRANTIES

          SECTION 4.01.  Representations and Warranties of the Borrowers.  Each
Borrower represents and warrants as follows:

          (a) Each Loan Party and each of its Subsidiaries (i) is duly organized
     or formed, validly existing and, to the extent such concept applies, in
     good standing under the laws of the jurisdiction of its incorporation or
     formation, (ii) is duly qualified and in good standing as a foreign
     corporation or other entity in each other jurisdiction in which it owns or
     leases property or in which the conduct of its business requires it to so
     qualify or be licensed except where the failure to so qualify or be
     licensed would not be reasonably likely to have a Material Adverse Effect
     and (iii) has all requisite power and authority (including, without
     limitation, all governmental licenses, permits and other approvals) to own
     or lease and operate its properties and to carry on its business as now
     conducted and as proposed to be conducted, except where the failure to have
     any license, permit or other approval would not be reasonably likely to
     have a Material Adverse Effect. All of the outstanding Equity Interests in
     each Borrower (other than the Parent) have been validly issued, are fully
     paid and non-assessable and (except for any Preferred Securities issued
     after the date of this Agreement) are owned, directly or indirectly, by the
     Parent free and clear of all Liens.

          (b) Set forth on Schedule 4.01(b) hereto is a complete and accurate
     list of all Subsidiaries of each Loan Party.

          (c) The execution, delivery and performance by each Loan Party of each
     Transaction Document to which it is or is to be a party and the
     consummation of the Acquisition and the other transactions contemplated by
     the Transaction Documents (to the extent applicable), are within such Loan
     Party's corporate powers, have been duly authorized by all necessary
     corporate action, and do not (i) contravene such Loan Party's
     constitutional documents, (ii) violate any law, rule, regulation
     (including, without limitation, Regulation X of the Board of Governors of
     the Federal Reserve System), order, writ, judgment, injunction, decree,
     determination or award, (iii) conflict with or result in the breach of, or
     constitute a default under, any contract, loan agreement, indenture,
     mortgage, deed of trust, lease or other instrument binding on or affecting
     any Loan Party, any of its Subsidiaries or any of their properties or (iv)
     except for the Liens created under the Loan Documents, result in or require
     the creation or imposition of any Lien upon or with respect to any of the
     properties of any Loan Party or any of its Subsidiaries.  No Loan Party or
     any of its Subsidiaries is in violation of any such law, rule, regulation,
     order, writ, judgment, injunction, decree, determination or award or in
     breach of any such contract, loan agreement, indenture, mortgage, deed of
     trust, lease or other instrument, the violation or breach of which could be
     reasonably likely to have a Material Adverse Effect.

          (d) No authorization or approval or other action by, and no notice to
     or filing with, any governmental authority or regulatory body or any other
     third party is required for (i) the due execution, delivery, recordation,
     filing or performance by any Loan Party of any Transaction
<PAGE>

                                      45

     Document to which it is or is to be a party, or for the consummation of the
     Acquisition or the other transactions contemplated by the Transaction
     Documents, or (ii) the exercise by any Agent or any Lender of its rights
     under the Loan Documents, except for the authorizations, approvals,
     actions, notices and filings which have been duly obtained, taken, given or
     made and are in full force and effect. All applicable waiting periods in
     connection with the Acquisition and the other transactions contemplated by
     the Transaction Documents have expired without any action having been taken
     by any competent authority restraining, preventing or imposing materially
     adverse conditions upon the Acquisition or the rights of the Loan Parties
     or their Subsidiaries freely to transfer or otherwise dispose of, or to
     create any Lien on, any properties now owned or hereafter acquired by any
     of them.

          (e) This Agreement has been, and each other Transaction Document when
     delivered hereunder will have been, duly executed and delivered by each
     Loan Party party thereto.  This Agreement is, and each other Transaction
     Document when delivered hereunder will be, the legal, valid and binding
     obligation of each Loan Party party thereto, enforceable against such Loan
     Party in accordance with its terms.

          (f) There is no action, suit, investigation, litigation or proceeding
     affecting any Loan Party or any of its Subsidiaries, including any
     Environmental Action, pending or threatened before any court, governmental
     agency or arbitrator that (i) could be reasonably likely to have a Material
     Adverse Effect or (ii) would reasonably be expected to affect the legality,
     validity or enforceability of any Transaction Document or the consummation
     of the Acquisition or the other transactions contemplated by the
     Transaction Documents.

          (g) The Consolidated balance sheets of the Parent and its Subsidiaries
     as at September 30, 1998, and the related Consolidated statements of income
     and of cash flows of the Parent and its Subsidiaries for the fiscal year
     then ended, accompanied by an unqualified opinion of PricewaterhouseCoopers
     LLP, independent public accountants, and the Consolidated balance sheets of
     the Parent and its Subsidiaries as at December 31, 1998, and the related
     Consolidated statements of income and cash flows of the Parent and its
     Subsidiaries for the three months then ended, duly certified by the Chief
     Financial Officer of the Parent, copies of which have been furnished to
     each Lender, fairly present, subject, in the case of said balance sheet as
     at December 31, 1998, and said statements of income and cash flows for the
     three months then ended, to year-end audit adjustments, the Consolidated
     financial condition of the Parent and its Subsidiaries as at such dates and
     the Consolidated results of operations of the Parent and its Subsidiaries
     for the periods ended on such dates, all in accordance with generally
     accepted accounting principles applied on a consistent basis (subject, in
     the case of the December 31, 1998 balance sheet and statements, to the
     absence of footnotes), and since December 31, 1998, there has been no
     Material Adverse Change.

          (h) The Consolidated forecasted balance sheet, statements of income
     and statements of cash flows of the Parent and its Subsidiaries contained
     in the Information Memorandum were prepared in good faith on the basis of
     the assumptions stated therein, which assumptions were fair in light of the
     conditions existing at the time of delivery of such forecasts, and
     represented, at the time of delivery, the Parent's best estimate of its
     future financial performance.
<PAGE>

                                      46

          (i) Neither the Information Memorandum nor any other written
     information, exhibit or report furnished by or on behalf of any Loan Party
     to any Agent or any Lender in connection with the negotiation and
     syndication of the Loan Documents or pursuant to the terms of the Loan
     Documents contained any untrue statement of a material fact or omitted to
     state a material fact necessary to make the statements made therein not
     misleading as at the date it was dated (or if not dated, so delivered).

          (j) None of the Borrowers is engaged in the business of extending
     credit for the purpose of purchasing or carrying Margin Stock, and no
     proceeds of any Advance will be used to purchase or carry any Margin Stock
     or to extend credit to others for the purpose of purchasing or carrying any
     Margin Stock.

          (k) Neither any Loan Party nor any of its Subsidiaries is an
     "investment company", or an "affiliated person" of, or "promoter" or
     "principal underwriter" for, an "investment company", as such terms are
     defined in the Investment Company Act of 1940, as amended. Neither the
     making of any Advances nor the application of the proceeds or repayment
     thereof by any Borrower, nor the consummation of the other transactions
     contemplated by the Transaction Documents, will violate any provision of
     such Act or any rule, regulation or order of the Securities and Exchange
     Commission thereunder.

          (l) Neither any Loan Party nor any of its Subsidiaries is a party to
     any indenture, loan or credit agreement or any lease or other agreement or
     instrument or subject to any charter or corporate restriction that is
     reasonably likely to have a Material Adverse Effect.

          (m) Each Loan Party is, individually and together with its
     Subsidiaries, Solvent.

          (n) Except to the extent that any and all events and conditions under
     clauses (i) through (vi) below of this paragraph (n) in the aggregate are
     not reasonably expected to have a Material Adverse Effect: (i)  Schedule B
     (Actuarial Information) to the most recent annual report (Form 5500 Series)
     for each Pension Plan, copies of which have been filed with the Internal
     Revenue Service, is complete and accurate and fairly presents the funding
     status of such Pension Plan, and since the date of such Schedule B there
     has been no material adverse change in such funding status.

          (ii) Neither any Loan Party nor any ERISA Affiliate has incurred or is
     reasonably expected to incur any Withdrawal Liability to any Multiemployer
     Plan.

          (iii)  Neither any Loan Party nor any ERISA Affiliate has been
     notified by the sponsor of a Multiemployer Plan that such Multiemployer
     Plan is in reorganization or has been terminated, within the meaning of
     Title IV of ERISA, and no such Multiemployer Plan is reasonably expected to
     be in reorganization or to be terminated, within the meaning of Title IV of
     ERISA.

          (iv) With respect to each scheme or arrangement mandated by a
     government other than the United States (a "Foreign Government Scheme or
     Arrangement") and with respect to
<PAGE>

                                      47

     each employee benefit plan that is not subject to United States law
     maintained or contributed to by any Loan Party or with respect to which any
     Subsidiary of any Loan Party may have liability under applicable local law
     (a "Foreign Plan"):

               (x) Any employer and employee contributions required by law or by
          the terms of any Foreign Government Scheme or Arrangement or any
          Foreign Plan have been made, or, if applicable, accrued, in accordance
          with normal accounting practices.

               (y) The fair market value of the assets of each funded Foreign
          Plan, the liability of each insurer for any Foreign Plan funded
          through insurance or the book reserve established for any Foreign
          Plan, together with any accrued contributions, is sufficient to
          procure or provide for the accrued benefit obligations, as of the date
          hereof, with respect to all current and former participants in such
          Foreign Plan according to the actuarial assumptions and valuations
          most recently used to account for such obligations in accordance with
          applicable generally accepted accounting principles.

               (z) Each Foreign Plan required to be registered has been
          registered and has been maintained in good standing with applicable
          regulatory authorities.

          (v) To the extent the assets of any Loan Party are or are deemed under
     applicable law to be "plan assets" within the meaning of Department of
     Labor Regulation (S) 2510.3-101, the execution, delivery and performance of
     the Loan Documents and the consummation of the transactions contemplated
     therein will not result in a non-exempt prohibited transaction within the
     meaning of Section 406 of ERISA or Section 4975 of the Internal Revenue
     Code.

          (vi) During the twelve-consecutive-month period to the date of the
     execution and delivery of this Agreement and prior to any Borrowing
     hereunder, no steps have been taken to terminate any Pension Plan, no
     contribution failure has occurred with respect to any Pension Plan
     sufficient to give rise to a lien under section 302(f) of ERISA and no
     minimum funding waiver has been applied for or is in effect with respect to
     any Pension Plan.  No condition exists or event or transaction has occurred
     or is reasonably expected to occur with respect to any Pension Plan which
     could result in any Loan Party or any ERISA Affiliate incurring any
     liability, fine or penalty.

          (o)  (i)  In the ordinary course of its business, the Parent reviews
     the effect of Environmental Laws on the operations and properties of the
     Parent and its Subsidiaries, in the course of which it identifies and
     evaluates associated liabilities and costs (including, without limitation,
     any capital or operating expenditures required for clean-up or closure of
     properties presently or previously owned, any capital or operating
     expenditures required to achieve or maintain compliance with environmental
     protection standards imposed by law or as a condition of any license,
     permit or contract, any related constraints on operating activities,
     including any periodic or permanent shutdown of any facility or reduction
     in the level of or change in the nature of operations conducted thereat,
     and any actual or potential liabilities to third parties and any related
     costs and expenses).  On the basis of this review, the Parent has
     reasonably
<PAGE>

                                      48

     concluded that such associated liabilities and costs, including the costs
     of compliance with Environmental Laws, are unlikely to have a Material
     Adverse Effect.

          (ii) The operations and properties of each Loan Party and each of its
     Subsidiaries comply in all material respects with all applicable
     Environmental Laws and Environmental Permits, except for non-compliances
     which would not, individually or in the aggregate, reasonably be expected
     to have a Material Adverse Effect; Hazardous Materials have not been
     released, discharged or disposed of on any property currently or formerly
     owned or operated by any Loan Party or any of its Subsidiaries that would
     reasonably be expected to have a Material Adverse Effect; and there are no
     Environmental Actions pending or threatened against any Loan Party or its
     Subsidiaries, and no circumstances exist that could be reasonably likely to
     form the basis of any such Environmental Action, which (in either case),
     individually or in the aggregate with all other such pending or threatened
     actions and circumstances would reasonably be expected to have a Material
     Adverse Effect.

          (p) Each Loan Party and each of its Subsidiaries has filed, has caused
     to be filed or has been included in all material Federal tax returns and
     all other material tax returns required to be filed and has paid all taxes
     shown thereon to be due, together with applicable interest and penalties,
     except to the extent contested in good faith and by appropriate proceedings
     (in which case adequate reserves have been established therefor in
     accordance with GAAP).

          (q) Each Borrower has (i) initiated a review and assessment of all
     areas within its and each of its Subsidiaries' business and operations
     (including those affected by material suppliers, vendors and customers)
     that could be adversely affected by the risk that computer applications
     used by such Borrower or any of its Subsidiaries (or material suppliers,
     vendors and customers other than those affecting customers that may give
     rise to claims under insurance policies issued by any Borrower or a
     Subsidiary) may be unable to recognize and perform properly date-sensitive
     functions involving certain dates prior to and any date after December 31,
     1999 (the "Year 2000 Problem"), (ii) developed a plan and timetable for
     addressing the Year 2000 Problem on a timely basis and (iii) to date,
     implemented that plan substantially in accordance with such timetable.
     Based on the foregoing, each Borrower believes that all computer
     applications of such Borrower and its Subsidiaries that are material to its
     or any of its Subsidiaries' business and operations are reasonably expected
     on a timely basis to be able to perform properly date-sensitive functions
     for all dates before and after January 1, 2000 ("Year 2000 Compliant"),
     except to the extent that a failure to do so could not reasonably be
     expected to have a Material Adverse Effect.
<PAGE>

                                      49

                                   ARTICLE V

                          COVENANTS OF THE BORROWERS

          SECTION 5.01.  Affirmative Covenants.  So long as any Advance or any
other obligation of any Loan Party under any Loan Document shall remain unpaid
or any Lender shall have any Commitment hereunder, each Borrower will:

          (a) Compliance with Laws, Etc.  Comply, and cause each of its
     Subsidiaries to comply, in all material respects, with all applicable laws,
     rules, regulations and orders, such compliance to include, without
     limitation, compliance with Environmental Laws, Environmental Permits,
     ERISA and the Racketeer Influenced and Corrupt Organizations Chapter of the
     Organized Crime Control Act of 1970.

          (b) Payment of Taxes, Etc.  Pay and discharge, and cause each of its
     Subsidiaries to pay and discharge, before the same shall become delinquent,
     (i) all material taxes, assessments and governmental charges or levies
     imposed upon it or upon its property and (ii) all lawful material claims
     that, if unpaid, might by law become a Lien upon its property; provided,
     however, that neither any Borrower nor any of its Subsidiaries shall be
     required to pay or discharge any such tax, assessment, charge or claim that
     is being contested in good faith and by proper proceedings and as to which
     appropriate reserves are being maintained.

          (c) Maintenance of Insurance.  Maintain, and cause each of its
     Subsidiaries to maintain, insurance with responsible and reputable
     insurance companies or associations in such amounts and covering such risks
     as is usually carried by companies engaged in similar businesses and owning
     similar properties in the same general areas in which such Borrower or such
     Subsidiary operates (it being understood that the foregoing shall not apply
     to maintenance of reinsurance or similar matters which shall be solely
     within the reasonable business judgment of the Parent and its
     Subsidiaries).

          (d) Preservation of Corporate Existence, Etc.  Preserve and maintain,
     and cause each of its Subsidiaries to preserve and maintain, its existence,
     legal structure, legal name, rights (charter and statutory), permits,
     licenses, approvals, privileges and franchises; provided, however, that the
     Parent and its Subsidiaries may consummate any merger or consolidation
     permitted under Section 5.02(c) and provided further that neither the
     Parent nor its Subsidiaries shall be required to preserve any right,
     permit, license, approval, privilege or franchise if the Board of Directors
     of the Parent or such Subsidiary shall determine that the preservation
     thereof is no longer desirable in the conduct of the business of the Parent
     or such Subsidiary, as the case may be, and that the loss thereof is not
     disadvantageous in any material respect to such Borrower, such Subsidiary
     or the Lenders.

          (e) Visitation Rights.  At any reasonable time and from time to time
     upon prior notice, permit the Agents (upon request made by any Agent or any
     Lender), or any agents or representatives thereof, at the expense (so long
     as no Default has occurred and is continuing) of such Agents (or such
     Lender, as the case may be), to examine and make copies of and abstracts

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                                      50

     from the records and books of account of, and visit the properties of, the
     Parent and  its Subsidiaries, and to discuss the affairs, finances and
     accounts of the Parent and any of its Subsidiaries with any of their
     officers or directors and with, so long as a representative of the Parent
     is present, their independent certified public accountants.

          (f) Keeping of Books.  Keep, and cause each of its Subsidiaries to
     keep, proper books of record and account, in which full and correct entries
     shall be made of all financial transactions and the assets and business of
     the Parent and each such Subsidiary sufficient to permit the preparation of
     financial statements in accordance with GAAP.

          (g) Maintenance of Properties, Etc.  Maintain and preserve, and cause
     each of its Subsidiaries to maintain and preserve, all of its properties
     that are used or useful in the conduct of its business in good working
     order and condition, ordinary wear and tear excepted.

          (h) Transactions with Affiliates.  Conduct, and cause each of its
     Subsidiaries to conduct, all transactions otherwise permitted under the
     Loan Documents with any of their Affiliates (other than such transactions
     between Loan Parties) on terms that are fair and reasonable and no less
     favorable than it would obtain in a comparable arm's length transaction
     with a Person not an Affiliate.

          (i) Pari Passu ranking.  Each Borrower shall procure that its
     obligations under the Loan Documents will rank at least pari passu with all
     its other present and future unsecured and unsubordinated obligations,
     except for obligations which are mandatorily preferred by law applying to
     companies generally.

          SECTION 5.02.  Negative Covenants.  So long as any Advance or any
other obligation of any Loan Party under any Loan Document shall remain unpaid
or any Lender shall have any Commitment hereunder, each of the Borrowers will
not, at any time:

          (a) Liens, Etc.  Create, incur, assume or suffer to exist, or permit
     any of its Subsidiaries to create, incur, assume or suffer to exist, any
     Lien on or with respect to any of its properties of any character
     (including, without limitation, accounts) whether now owned or hereafter
     acquired, or assign or permit any of its Subsidiaries to assign, any
     accounts or other right to receive income, except:

               (i) Liens created under the Loan Documents or in respect of the
          Borrowers' Five-Year Revolving Credit Facility or the ACE INA 364-Day
          Revolving Credit Facility;

               (ii) Permitted Liens;

               (iii)  Liens described on Schedule 5.02(a) hereto and other Liens
          arising in the ordinary course of business of CIGNAP&C;

<PAGE>

                                      51

               (iv) purchase money Liens upon or in real property or equipment
          acquired or held by the Parent or any of its Subsidiaries in the
          ordinary course of business to secure the purchase price of such
          property or equipment or to secure Debt incurred solely for the
          purpose of financing the acquisition, construction or improvement of
          any such property or equipment to be subject to such Liens, or Liens
          existing on any such property or equipment at the time of acquisition
          or within 180 days following such acquisition (other than any such
          Liens created in contemplation of such acquisition that do not secure
          the purchase price), or extensions, renewals or replacements of any of
          the foregoing for the same or a lesser amount; provided, however, that
          no such Lien shall extend to or cover any property other than the
          property or equipment being acquired, constructed or improved, and no
          such extension, renewal or replacement shall extend to or cover any
          property not theretofore subject to the Lien being extended, renewed
          or replaced;

               (v) Liens arising in connection with Capitalized Leases; provided
          that no such Lien shall extend to or cover any assets other than the
          assets subject to such Capitalized Leases;

               (vi) (A) any Lien existing on any asset of any Person at the time
          such Person becomes a Subsidiary and not created in contemplation of
          such event, (B) any Lien on any asset of any Person existing at the
          time such Person is merged or consolidated with or into the Parent or
          any of it Subsidiaries in accordance with Section 5.02(c) and not
          created in contemplation of such event and (C) any Lien existing on
          any asset prior to the acquisition thereof by the Parent or any of its
          Subsidiaries and not created in contemplation of such acquisition;

               (vii)  Liens securing obligations under credit default swap
          transactions determined by reference to, or Contingent Obligations in
          respect of,  Debt issued by the Parent or one of its Subsidiaries;
          such Debt not to exceed an aggregate principal amount of $550,000,000;

               (viii)  Liens arising in the ordinary course of its business
          which (A) do not secure Debt and (B) do not in the aggregate
          materially detract from the value of its assets or materially impair
          the use thereof in the operation of its business;

               (ix) Liens on cash and Approved Investments securing Hedge
          Agreements arising in the ordinary course of business;

               (x) other Liens securing Debt or other obligations outstanding in
          an aggregate principal or face amount not to exceed at any time 10% of
          Consolidated Tangible Net Worth;

               (xi) Liens consisting of deposits made by the Parent or any
          insurance Subsidiary with any insurance regulatory authority or other
          statutory Liens or Liens or claims imposed or required by applicable
          insurance law or regulation against the assets

<PAGE>

                                      52

          of the Parent or any insurance Subsidiary, in each case in favor of
          policyholders of the Parent or such insurance Subsidiary or an
          insurance regulatory authority and in the ordinary course of the
          Parent's or such insurance Subsidiary's business;

               (xii)  Liens on Investments and cash balances of the Parent or
          any insurance Subsidiary (other than capital stock of any Subsidiary)
          securing obligations of the Parent or any insurance Subsidiary in
          respect of (i) letters of credit obtained in the ordinary course of
          business and/or (ii) trust arrangements formed in the ordinary course
          of business for the benefit of cedents to secure reinsurance
          recoverables owed to them by the Parent or any insurance Subsidiary;

               (xiii)  the replacement, extension or renewal of any Lien
          permitted by clause (iii) or (vi) above upon or in the same property
          theretofore subject thereto or the replacement, extension or renewal
          (without increase in the amount (other than in respect of fees,
          expenses and premiums, if any) or change in any direct or contingent
          obligor) of the Debt secured thereby;

               (xiv)  Liens securing obligations owed by any Loan Party to any
          other Loan Party or owed by any Subsidiary of the Parent (other than a
          Loan Party) to the Parent or any other Subsidiary;

               (xv) Liens incurred in the ordinary course of business in favor
          of financial intermediaries and clearing agents pending clearance of
          payments for investment or in the nature of set-off, banker's lien or
          similar rights as to deposit accounts or other funds; and

               (xvi)  judgment or judicial attachment Liens, provided that the
          enforcement of such Liens is effectively stayed.

          (b) Change in Nature of Business.  Make any material change in the
     nature of the business of the Parent and its Subsidiaries taken as a whole
     as carried on at the date hereof (and giving effect to the Acquisition).

          (c) Mergers, Etc.  Merge into or consolidate with any Person or permit
     any Person to merge into it, or permit any of its Subsidiaries to do so,
     except that:

               (i) any Subsidiary of the Parent may merge into or consolidate
          with any other Subsidiary of the Parent, provided that, in the case of
          any such merger or consolidation, the Person formed by such merger or
          consolidation shall be a wholly owned Subsidiary of the Parent,
          provided further that, in the case of any such merger or consolidation
          to which a Borrower is a party, the Person formed by such merger or
          consolidation shall be such Borrower;

               (ii) any Subsidiary of any Borrower may merge into or consolidate
          with any other Person or permit any other Person to merge into or
          consolidate with it; provided
<PAGE>

                                      53

          that the Person surviving such merger shall be a wholly owned
          Subsidiary of such Borrower; and

               (iii)  in connection with any sale or other disposition permitted
          under Section 5.02(d) (other than clause (ii) thereof), any Subsidiary
          of the Parent may merge into or consolidate with any other Person or
          permit any other Person to merge into or consolidate with it; and

               (iv) the Parent or any other Borrower may merge into or
          consolidate with any other Person; provided that, in the case of any
          such merger or consolidation, the Person formed by such merger or
          consolidation shall be the Parent or such Borrower, as the case may
          be;

     provided, however, that in each case, immediately after giving effect
     thereto, no event shall occur and be continuing that constitutes a Default.

          (d) Sales, Etc., of Assets.  Sell, lease, transfer or otherwise
     dispose of, or permit any of its Subsidiaries to sell, lease, transfer or
     otherwise dispose of, any assets, or grant any option or other right to
     purchase, lease or otherwise acquire any, assets except:

               (i) sales of inventory in the ordinary course of its business;

               (ii) in a transaction authorized by Section 5.02(c);

               (iii)  sales of Approved Investments in the ordinary course of
          business on a basis consistent with past practices;

               (iv) sales of assets for fair value;

               (v) sales, leases, transfers or other dispositions of any assets
          by the Parent or a Subsidiary to the Parent or another Subsidiary; and

               (vi) so long as no Default shall occur and be continuing, the
          grant of any option or other right to purchase any asset in a
          transaction that would be permitted under the provisions of clauses
          (i) through (iv) above.

          (e) Restricted Payments.  In the case of the Parent, declare or pay
     any dividends, purchase, redeem, retire, defease or otherwise acquire for
     value any of its Equity Interests now or hereafter outstanding, return any
     capital to its stockholders, partners or members (or the equivalent Persons
     thereof) as such, make any distribution of assets, Equity Interests,
     obligations or securities to its stockholders, partners or members (or the
     equivalent Persons thereof) as such or issue or sell any Equity Interests
     or accept any capital contributions, or permit any of its Subsidiaries to
     do any of the foregoing, or permit any of its Subsidiaries to purchase,
     redeem, retire, defease or otherwise acquire for value any Equity Interests
     in the Parent or to issue or sell any Equity Interests therein, except
     that, so long as no Default shall have occurred and be
<PAGE>

                                      54

     continuing at the time of any action described in clause (i) or (ii) below
     or would result therefrom:

               (i) the Parent may (A) declare and pay dividends and
          distributions payable only in common stock of the Parent, (B) issue
          and sell shares of its capital stock so long as the Net Cash Proceeds
          thereof shall be applied in the manner set forth in Section
          2.06(b)(i), (C) purchase, redeem, retire, defease or otherwise acquire
          for value any of its Equity Interests in an aggregate amount during
          the term of this Agreement not exceeding $300,000,000 and (D) declare
          and pay cash dividends to its stockholders,

               (ii) (A) any Loan Party (other than the Parent) may declare and
          pay cash dividends to another Loan Party and (B) any Subsidiary of the
          Parent (other than any Loan Party) may (x) declare and pay cash
          dividends to the Parent or any other wholly owned Subsidiary of the
          Parent of which it is a Subsidiary and (y) accept capital
          contributions from its parent, and

               (iii)  the Special Purpose Trust may issue Preferred Securities
          and pay dividends thereon with the proceeds of payments of interest on
          the Debentures.

          (f) Accounting Changes.  Make or permit, or permit any of its
     Subsidiaries to make or permit, any change in accounting policies or
     reporting practices, except as permitted by GAAP.

          (g) Amendment, Etc., of Purchase Agreement.  (i) Cancel or terminate
     the Purchase Agreement or consent to or accept any cancellation or
     termination thereof, or (ii) amend, modify or change in any manner any term
     or condition of the Purchase Agreement or give any consent, waiver or
     approval thereunder, waive any default under or any breach of any term or
     condition of the Purchase Agreement, agree in any manner to any other
     amendment, modification or change of any term or condition of the Purchase
     Agreement or take any other action in connection with the Purchase
     Agreement that, in any case described in this clause (ii), would reasonably
     be expected to have a Material Adverse Effect, or permit any of its
     Subsidiaries to do any of the foregoing.

          SECTION 5.03.  Reporting Requirements.  So long as any Advance or any
other obligation of any Loan Party under any Loan Document shall remain unpaid
or any Lender shall have any Commitment hereunder, the Parent will furnish to
the Agents and the Lenders:

          (a) Default Notice.  As soon as possible and in any event within two
     days after the occurrence of each Default or any event, development or
     occurrence reasonably likely to have a Material Adverse Effect continuing
     on the date of such statement, a statement of the chief financial officer
     of the Parent setting forth details of such Default, event, development or
     occurrence and the action that the Parent or the applicable Subsidiary has
     taken and proposes to take with respect thereto.
<PAGE>

                                      55

          (b) Annual Financials.  (i)  As soon as available and in any event
     within 90 days after the end of each Fiscal Year, a copy of the annual
     Consolidated audit report for such year for the Parent and its
     Subsidiaries, including therein a Consolidated balance sheet of the Parent
     and its Subsidiaries as of the end of such Fiscal Year and Consolidated
     statements of income and cash flows of the Parent and its Subsidiaries for
     such Fiscal Year, all reported on in a manner reasonably acceptable to the
     Securities and Exchange Commission in each case and accompanied by an
     opinion of PricewaterhouseCoopers LLP or other independent public
     accountants of recognized standing reasonably acceptable to the Required
     Lenders, together with (i) a certificate of the Chief Financial Officer of
     the Parent stating that no Default has occurred and is continuing, or if a
     Default has occurred and is continuing, a statement as to the nature
     thereof and the action that the Parent has taken a proposes to take with
     respect thereto, and (ii) a schedule in form reasonably satisfactory to the
     Administrative Agent of the computations used by the Parent in determining,
     as of the end of such Fiscal Year, compliance with the covenants contained
     in Section 5.04.

          (ii) As soon as available and in any event within 120 days after the
     end of each Fiscal Year, a copy of the annual Consolidated audit report for
     such year for each Subsidiary Guarantor and its Subsidiaries, including
     therein a Consolidated balance sheet of such Subsidiary Guarantor and its
     Subsidiaries as of the end of such Fiscal Year and a Consolidated statement
     of income and a Consolidated statement of cash flows of such Subsidiary
     Guarantor and its Subsidiaries for such Fiscal Year, in each case
     accompanied by an opinion acceptable to the Required Lenders of
     PricewaterhouseCoopers LLP or other independent public accountants of
     recognized standing acceptable to the Required Lenders.

          (c) Quarterly Financials.  As soon as available and in any event
     within 45 days after the end of each of the first three quarters of each
     Fiscal Year, Consolidated balance sheets of the Parent and its Subsidiaries
     as of the end of such quarter and Consolidated statements of income and a
     Consolidated statement of cash flows of the Parent and its Subsidiaries for
     the period commencing at the end of the previous fiscal quarter and ending
     with the end of such fiscal quarter and Consolidated statements of income
     and a Consolidated statement of cash flows of the Parent and its
     Subsidiaries for the period commencing at the end of the previous Fiscal
     Year and ending with the end of such quarter, setting forth in each case in
     comparative form the corresponding figures for the corresponding date or
     period of the preceding Fiscal Year, all in reasonable detail and duly
     certified (subject to the absence of footnotes and normal year-end audit
     adjustments) by the Chief Financial Officer of the Parent as having been
     prepared in accordance with GAAP, together with (i) a certificate of said
     officer stating that no Default has occurred and is continuing or, if a
     Default has occurred and is continuing, a statement as to the nature
     thereof and the action that the Parent has taken and proposes to take with
     respect thereto and (ii) a schedule in form reasonably satisfactory to the
     Administrative Agent of the computations used by the Parent in determining
     compliance with the covenants contained in Section 5.04.

          (d) Litigation.  Promptly after the commencement thereof, notice of
     all actions, suits, investigations, litigation and proceedings before any
     court or governmental department,
<PAGE>

                                      56

     commission, board, bureau, agency or instrumentality, domestic or foreign,
     affecting any Loan Party or any of its Subsidiaries of the type described
     in Section 4.01(f).

          (e) Securities Reports.  Promptly after the sending or filing thereof,
     copies of all proxy statements, financial statements and reports that the
     Parent sends to its stockholders generally, and copies of all regular,
     periodic and special reports, and all registration statements, that any
     Loan Party or any of its Subsidiaries files with the Securities and
     Exchange Commission or any governmental authority that may be substituted
     therefor, or with any national securities exchange.

          (f) ERISA.  (i)   ERISA Events.  Promptly and in any event within 10
     days after any Loan Party or any ERISA Affiliate institutes any steps to
     terminate any Pension Plan or becomes aware of the institution of any steps
     or any threat by the PBGC to terminate any Pension Plan, or the failure to
     make a required contribution to any Pension Plan if such failure is
     sufficient to give rise to a lien under section 302(f) of ERISA, or the
     taking of any action with respect to a Pension Plan which could result in
     the requirement that any Loan Party or any ERISA Affiliate furnish a bond
     or other security to the PBGC or such Pension Plan, or the occurrence of
     any event with respect to any Pension Plan which could result in any Loan
     Party or any ERISA Affiliate incurring any material liability, fine or
     penalty, or any material increase in the contingent liability of any Loan
     Party or any ERISA Affiliate with respect to any post-retirement Welfare
     Plan benefit, notice thereof and copies of all documentation relating
     thereto.

          (ii) Plan Annual Reports.  Promptly upon request of any Agent or any
     Lender, copies of each Schedule B (Actuarial Information) to the annual
     report (Form 5500 Series) with respect to each Pension Plan.

          (iii)  Multiemployer Plan Notices.  Promptly and in any event within
     15 Business Days after receipt thereof by any Loan Party or any ERISA
     Affiliate from the sponsor of a Multiemployer Plan, copies of each notice
     concerning (A) the imposition of Withdrawal Liability by any such
     Multiemployer Plan, (B) the reorganization or termination, within the
     meaning of Title IV of ERISA, of any such Multiemployer Plan or (C) the
     amount of liability incurred, or that may be incurred, by such Loan Party
     or any ERISA Affiliate in connection with any event described in clause (A)
     or (B); provided, however, that such notice and documentation shall not be
     required to be provided (except at the specific request of any Agent or
     Lender, in which case such notice and documentation shall be promptly
     provided following such request) if such condition or event is not
     reasonably expected to result in any Loan Party or any ERISA Affiliate
     incurring any material liability, fine or penalty.

          (g) Year 2000 Compliance.  Promptly after the Parent's discovery or
     determination thereof, notice (in reasonable detail) that any computer
     application that is material to its or any of its Subsidiaries' business
     and operations will not be Year 2000 Compliant (as defined in
     Section 4.01(q)), except to the extent that such failure could not
     reasonably be expected to have a Material Adverse Effect.
<PAGE>

                                      57

          (h) Statutory Statements.  As soon as available and in any event
     within 20 days after submission, each statutory statement of the Loan
     Parties (or any of them) in the form submitted to The Insurance Division of
     the Office of Registrar of Companies of Bermuda.

          (i) Regulatory Notices, Etc.  Promptly after any Responsible Officer
     of the Parent obtains knowledge thereof, (i) a copy of any notice from the
     Bermuda Minister of Finance or the Registrar of Companies or any other
     person of the revocation, the suspension or the placing of any restriction
     or condition on the registration as an insurer of any Borrower under the
     Bermuda Insurance Act 1978 (and related regulations) or of the institution
     of any proceeding or investigation which could result in any such
     revocation, suspension or placing of such a restriction or condition, (ii)
     copies of any correspondence by, to or concerning any Loan Party relating
     to an investigation conducted by the Bermuda Minister of Finance, whether
     pursuant to Section 132 of the Bermuda Companies Act 1981 (and related
     regulations) or otherwise and (iii) a copy of any notice of or requesting
     or otherwise relating to the winding-up or any similar proceeding of or
     with respect to any Loan Party.

          (j) Other Information.  Such other information respecting the
     business, condition (financial or otherwise), operations, performance,
     properties or prospects of any Loan Party or any of its Subsidiaries as any
     Agent, or any Lender through the Administrative Agent, may from time to
     time reasonably request.

          SECTION 5.04.  Financial Covenants.  So long as any Advance or any
other obligation of any Loan Party under any Loan Document shall remain unpaid
or any Lender shall have any Commitment hereunder, the Parent will:

          (a) Adjusted Consolidated Debt to Total Capitalization Ratio.
     Maintain at all times a ratio of Adjusted Consolidated Debt to Total
     Capitalization of not more than the lesser of (a) 0.50 to 1 or (b) the
     Specified Ratio.  For purposes of the foregoing, the Specified Ratio shall
     be the greater of 0.35 to 1 or the ratio determined by multiplying 1.25
     times the numerator of the lowest ratio of Adjusted Consolidated Debt to
     Total Capitalization as of the last day of any fiscal quarter of the Parent
     after completion of the Acquisition.

          (b) Tangible Net Worth.  Maintain at all times Consolidated Tangible
     Net Worth in an amount equal to the sum of (i) $1,000,000,000 plus (ii) 25%
     of Consolidated Net Income for each fiscal quarter of the Parent ending on
     and after June 30, 1999 for which such Consolidated Net Income is positive
     plus (iii) 75% (or, after the Equity Issuance (so long as the Net Cash
     Proceeds received by the Parent and its Subsidiaries are at least
     $500,000,000), 50%) of the aggregate amount by which Consolidated Tangible
     Net Worth shall have been increased by reason of the issuance and sale of
     any Equity Interests or Mandatorily Convertible Preferred Securities or,
     without duplication, the conversion or exchange of any Debt of the Parent
     into or with Equity Interests of the Parent.
<PAGE>

                                      58

                                  ARTICLE VI

                               EVENTS OF DEFAULT

          SECTION 6.01.  Events of Default.  If any of the following events
("Events of Default") shall occur and be continuing:

          (a) (i) any Borrower shall fail to pay any principal of any Advance
     when the same shall become due and payable or (ii) any Borrower shall fail
     to pay any interest on any Advance, or any Loan Party shall fail to make
     any other payment under any Loan Document, in each case under this clause
     (ii) within five Business Days after the same becomes due and payable; or

          (b) any representation or warranty made by any Loan Party (or any of
     its officers) under or in connection with any Loan Document shall prove to
     have been incorrect in any material respect when made; or

          (c) any Borrower shall fail to perform or observe any term, covenant
     or agreement contained in Section 2.14, 5.01(d) (with respect to the
     Parent) or (e), 5.02 or 5.04; or

          (d) any Loan Party shall fail to perform or observe any other term,
     covenant or agreement contained in any Loan Document on its part to be
     performed or observed if such failure shall remain unremedied for 30 days
     after the earlier of the date on which (i) a Responsible Officer becomes
     aware of such failure or (ii) written notice thereof shall have been given
     to such Loan Party by any Agent or any Lender; or

          (e) the Parent or any of its Subsidiaries shall fail to pay any
     Material Financial Obligation (but excluding Debt outstanding hereunder) of
     the Parent or such Subsidiary (as the case may be), when the same becomes
     due and payable (whether by scheduled maturity, required prepayment,
     acceleration, demand or otherwise), and such failure shall continue after
     the applicable grace period, if any, specified in the agreement or
     instrument relating to such Material Financial Obligation; or any other
     event shall occur or condition shall exist under any agreement or
     instrument relating to any such Material Financial Obligation and shall
     continue after the applicable grace period, if any, specified in such
     agreement or instrument, if the effect of such event or condition is to
     accelerate, or to permit the acceleration of, the maturity of such Material
     Financial Obligation or otherwise to cause, or to permit the holder thereof
     to cause, such Material Financial Obligation to mature; or any such
     Material Financial Obligation shall be declared to be due and payable or
     required to be prepaid or redeemed (other than by a regularly scheduled
     required prepayment or redemption), purchased or defeased, or an offer to
     prepay, redeem, purchase or defease such Material Financial Obligation
     shall be required to be made, in each case prior to the stated maturity
     thereof; or

          (f) any Loan Party or any of its Subsidiaries shall generally not pay
     its debts as such debts become due, or shall admit in writing its inability
     to pay its debts generally, or shall make a general assignment for the
     benefit of creditors; or any proceeding shall be instituted by or against
     any Loan Party or any of its Subsidiaries seeking to adjudicate it a
     bankrupt or insolvent, or
<PAGE>

                                      59

     seeking liquidation, winding up, reorganization, arrangement, adjustment,
     protection, relief, or composition of it or its debts under any law
     relating to bankruptcy, insolvency or reorganization or relief of debtors,
     or seeking the entry of an order for relief or the appointment of a
     receiver, trustee, or other similar official for it or for any substantial
     part of its property and, in the case of any such proceeding instituted
     against it (but not instituted by it) that is being diligently contested by
     it in good faith, either such proceeding shall remain undismissed or
     unstayed for a period of 60 days or any of the actions sought in such
     proceeding (including, without limitation, the entry of an order for relief
     against, or the appointment of a receiver, trustee, custodian or other
     similar official for, it or any substantial part of its property) shall
     occur; or any Loan Party or any of its Subsidiaries shall take any
     corporate action to authorize any of the actions set forth above in this
     subsection (f); or

          (g) any judgment or order for the payment of money in excess of
     $100,000,000 shall be rendered against any Loan Party or any of its
     Subsidiaries and either (i) enforcement proceedings shall have been
     commenced by any creditor upon such judgment or order or (ii) there shall
     be any period of 30 consecutive days during which a stay of enforcement of
     such judgment or order, by reason of a pending appeal or otherwise, shall
     not be in effect; or

          (h) any non-monetary judgment or order shall be rendered against any
     Loan Party or any of its Subsidiaries that could be reasonably likely to
     have a Material Adverse Effect, and there shall be any period of 30
     consecutive days during which a stay of enforcement of such judgment or
     order, by reason of a pending appeal or otherwise, shall not be in effect;
     or

          (i) any provision of any Loan Document after delivery thereof pursuant
     to Section 3.01 shall for any reason cease to be valid and binding on or
     enforceable against any Loan Party party to it (other than as a result of a
     transaction permitted hereunder), or any such Loan Party shall so state in
     writing; or

          (j) a Change of Control shall occur; or

          (k) Any Loan Party or any ERISA Affiliate shall incur or shall be
     reasonably expected to incur liability in excess of $25,000,000 in the
     aggregate with respect to any Pension Plan or any Multiemployer Plan in
     connection with the occurrence of any of the following events or existence
     of any of the following conditions:

               (i) Institution of any steps by any Loan Party, any ERISA
          Affiliate or any other Person, including, without limitation, the PBGC
          to terminate a Pension Plan if as a result of such termination a Loan
          Party or any ERISA Affiliate could be required to make a contribution
          to such Pension Plan, or could incur a liability or obligation;

               (ii) A contribution failure occurs with respect to any Pension
          Plan sufficient to give rise to a lien under section 302(f) of ERISA;
          or

               (iii)  Any condition shall exist or event shall occur with
          respect to a Pension Plan that is reasonably expected to result in any
          Loan Party or any ERISA Affiliate being
<PAGE>

                                      60

          required to furnish a bond or security to the PBGC or such Pension
          Plan, or incurring a liability or obligation.

               (iv) any Loan Party or any ERISA Affiliate shall have been
          notified by the sponsor of a Multiemployer Plan that it has incurred
          Withdrawal Liability to such Multiemployer Plan; or

               (v) any Loan Party or any ERISA Affiliate shall have been
          notified by the sponsor of a Multiemployer Plan that such
          Multiemployer Plan is in reorganization or is being terminated, within
          the meaning of Title IV of ERISA, and as a result of such
          reorganization or termination the aggregate annual contributions of
          the Loan Parties and the ERISA Affiliates to all Multiemployer Plans
          that are then in reorganization or being terminated have been or will
          be increased over the amounts contributed to such Multiemployer Plans
          for the plan years of such Multiemployer Plans immediately preceding
          the plan year in which such reorganization or termination occurs;

then, and in any such event, the Administrative Agent (i) shall at the request,
or may with the consent, of the Required Lenders, by notice to the Borrowers,
declare the Commitment of each Lender and the obligation of each Lender to make
Advances to be terminated, whereupon the same shall forthwith terminate, and/or
(ii) shall at the request, or may with the consent, of the Required Lenders, by
notice to the Borrowers, declare the Notes, all interest thereon and all other
amounts payable under this Agreement and the other Loan Documents to be
forthwith due and payable, whereupon the Notes, all such interest and all such
amounts shall become and be forthwith due and payable, without presentment,
demand, protest or further notice of any kind, all of which are hereby expressly
waived by the Borrowers; provided, however, that in the event of an actual or
deemed entry of an order for relief with respect to any Borrower under the
Federal Bankruptcy Code, (x) the Commitments of each Lender and the obligation
of each Lender to make Advances shall automatically be terminated and (y) the
Notes, all such interest and all such amounts shall automatically become and be
due and payable, without presentment, demand, protest or any notice of any kind,
all of which are hereby expressly waived by the Borrowers.

                                  ARTICLE VII

                                 THE GUARANTY

          SECTION 7.01.  The Guaranty.  (a)  Each Borrower jointly and
severally, hereby unconditionally, absolutely and irrevocably guarantees the
full and punctual payment (whether at stated maturity, upon acceleration or
otherwise) of all amounts payable by each of the other Borrowers under the Loan
Documents including, without limitation, the principal of and interest on each
Note issued by such other Borrowers pursuant to this Agreement.  Upon failure by
a Borrower to pay punctually any such amount, each other Borrower agrees to pay
forthwith on demand the amount not so paid at the place and in the manner
specified in this Agreement.
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                                      61

          (b) Each Borrower (other than the Parent), and by its acceptance of
this Guaranty, the Administrative Agent and each other Lender, hereby confirms
that it is the intention of all such Persons that this Guaranty and the
obligations of each Borrower hereunder not constitute a fraudulent transfer or
conveyance for purposes of Bankruptcy Law, the Uniform Fraudulent Conveyance
Act, the Uniform Fraudulent Transfer Act or any similar foreign, federal or
state law to the extent applicable to this Guaranty and the obligations of each
Borrower (other than the Parent) hereunder. To effectuate the foregoing
intention, the Administrative Agent, the other Lenders and the Borrowers hereby
irrevocably agree that the obligations of each Borrower (other than the Parent)
under this Article VII at any time shall be limited to the maximum amount as
will result in the obligations of such Borrower under this Guaranty not
constituting a fraudulent transfer or conveyance.

          SECTION 7.02.  Guaranty Unconditional.  The obligations of each
Borrower under this Article VII shall be unconditional, absolute and irrevocable
and, without limiting the generality of the foregoing, shall not be released,
discharged or otherwise affected by:

          (i) any extension, renewal, settlement, compromise, waiver or release
     in respect of any obligation of any other obligor under any of the Loan
     Documents, by operation of law or otherwise;

          (ii) any modification or amendment of or supplement to any of the Loan
     Documents;

          (iii)  any release, non-perfection or invalidity of any direct or
     indirect security for any obligation of any other obligor under any of the
     Loan Documents;

          (iv) any change in the corporate existence, structure or ownership of
     any obligor, or any insolvency, bankruptcy, reorganization or other similar
     proceeding affecting any other obligor or its assets or any resulting
     release or discharge of any obligation of any other obligor contained in
     any of the Loan Documents;

          (v) the existence of any claim, set-off or other rights which any
     obligor may have at any time against any other obligor, the Administrative
     Agent, any Lender or any other corporation or person, whether in connection
     with any of the Loan Documents or any unrelated transactions, provided that
     nothing herein shall prevent the assertion of any such claim by separate
     suit or compulsory counterclaim;

          (vi) any invalidity or unenforceability relating to or against any
     other obligor for any reason of any of the Loan Documents, or any provision
     of applicable law or regulation purporting to prohibit the payment by any
     other obligor of the principal of or interest on any Note or any other
     amount payable under any of the Loan Documents; or

          (vii)  any other act or omission to act or delay of any kind by any
     obligor, the Administrative Agent, any Lender or any other corporation or
     person or any other circumstance whatsoever which might, but for the
     provisions of this paragraph, constitute a legal or equitable discharge of
     or defense to a Borrower's obligations under this Article VII.
<PAGE>

                                      62

          SECTION 7.03.  Discharge Only upon Payment in Full; Reinstatement in
Certain Circumstances.  Each Borrower's obligations under this Article VII shall
remain in full force and effect until the Commitments shall have terminated and
the principal of and interest on the Notes and all other amounts payable by the
other Borrowers under the Loan Documents shall have been paid in full.  If at
any time any payment of the principal of or interest on any Note or any other
amount payable by a Borrower under the Loan Documents is rescinded or must be
otherwise restored or returned upon the insolvency, bankruptcy or reorganization
of such Borrower or otherwise, each other Borrower's obligations under this
Article VII with respect to such payment shall be reinstated as though such
payment had been due but not made at such time.

          SECTION 7.04.  Waiver by the Borrowers.  Each Borrower irrevocably
waives acceptance hereof, presentment, demand, protest and any notice not
provided for herein, as well as any requirement that at any time any action be
taken by any corporation or person against any other obligor or any other
corporation or person.

          SECTION 7.05.  Subrogation.  Each Borrower hereby unconditionally and
irrevocably agrees not to exercise any rights that it may now have or hereafter
acquire against any other Borrower, any other Loan Party or any other insider
guarantor that arise from the existence, payment, performance or enforcement of
such Borrower's obligations under or in respect of this Guaranty or any other
Loan Document, including, without limitation, any right of subrogation,
reimbursement, exoneration, contribution or indemnification and any right to
participate in any claim or remedy of any Lender against any other Borrower, any
other Loan Party or any other insider guarantor or any collateral, whether or
not such claim, remedy or right arises in equity or under contract, statute or
common law, including, without limitation, the right to take or receive from any
other Borrower, any other Loan Party or any other insider guarantor, directly or
indirectly, in cash or other property or by set-off or in any other manner,
payment or security on account of such claim, remedy or right, unless and until
all  amounts payable under this Guaranty shall have been paid in full in cash,
and the Commitments shall have expired or been terminated.  If any amount shall
be paid to any Borrower in violation of the immediately preceding sentence at
any time prior to the latest of (a) the payment in full in cash of all amounts
payable under this Guaranty, and (b) the Termination Date, such amount shall be
received and held in trust for the benefit of the Lenders, shall be segregated
from other property and funds of such Borrower and shall forthwith be paid or
delivered to the Administrative Agent in the same form as so received (with any
necessary endorsement or assignment) to be credited and applied to all amounts
payable under this Guaranty, whether matured or unmatured, in accordance with
the terms of the Loan Documents, or to be held as collateral for any  amounts
payable under this Guaranty thereafter arising.  If (i) any Borrower shall make
payment to any Lender of all or any amounts payable under this Guaranty, (ii)
all amounts payable under this Guaranty shall have been paid in full in cash,
and (iii) the Termination Date shall have occurred, the Lenders will, at such
Borrower's request and expense, execute and deliver to such Borrower appropriate
documents, without recourse and without representation or warranty, necessary to
evidence the transfer by subrogation to such Borrower of an interest in the
obligations resulting from such payment made by such Borrower pursuant to this
Guaranty.

          SECTION 7.06.  Stay of Acceleration.  If acceleration of the time for
payment of any amount payable by any Borrower under any of the Loan Documents is
stayed upon the insolvency, bankruptcy or reorganization of such Borrower, all
such amounts otherwise subject to acceleration under
<PAGE>

                                      63

the terms of this Agreement shall nonetheless by payable by the other Borrowers
under this Article VII forthwith on demand by the Administrative Agent made at
the request of the requisite proportion of the Lenders.

          SECTION 7.07.  Continuing Guaranty; Assignments.  This Guaranty is a
continuing guaranty and shall (a) remain in full force and effect until the
latest of (i) the payment in full in cash of all amounts payable under this
Guaranty and (ii) the Termination Date, (b) be binding upon each Borrower, its
successors and assigns and (c) inure to the benefit of and be enforceable by the
Lenders and their successors, transferees and assigns. Without limiting the
generality of clause (c) of the immediately preceding sentence, any Lender may
assign or otherwise transfer all or any portion of its rights and obligations
under this Agreement (including, without limitation, all or any portion of its
Commitments, the Advances owing to it and the Note or Notes held by it) to any
other Person, and such other Person shall thereupon become vested with all the
benefits in respect thereof granted to such Lender herein or otherwise, in each
case as and to the extent provided in Section 9.07. No Borrower shall have the
right to assign its rights hereunder or any interest herein without the prior
written consent of the Required Lenders.

                                 ARTICLE VIII

                                  THE AGENTS

          SECTION 8.01.  Authorization and Action.  Each Lender (in its capacity
as a Lender) hereby appoints and authorizes each Agent to take such action as
agent on its behalf and to exercise such powers and discretion under this
Agreement and the other Loan Documents as are delegated to such Agent by the
terms hereof and thereof, together with such powers and discretion as are
reasonably incidental thereto.  As to any matters not expressly provided for by
the Loan Documents (including, without limitation, enforcement or collection of
the Notes), no Agent shall be required to exercise any discretion or take any
action, but shall be required to act or to refrain from acting (and shall be
fully protected in so acting or refraining from acting) upon the instructions of
the Required Lenders, or all the Lenders where unanimity is required and such
instructions shall be binding upon all Lenders and all holders of Notes;
provided, however, that no Agent shall be required to take any action that
exposes such Agent to personal liability or that is contrary to this Agreement
or applicable law.  Each Agent agrees to give to each Lender prompt notice of
each notice given to it by any Borrower pursuant to the terms of this Agreement.

          SECTION 8.02.  Agents' Reliance, Etc.  Neither any Agent nor any of
their respective directors, officers, agents or employees shall be liable for
any action taken or omitted to be taken by it or them under or in connection
with the Loan Documents, except for its or their own gross negligence or willful
misconduct.  Without limitation of the generality of the foregoing, each Agent:
(a) may treat the payee of any Note as the holder thereof until, in the case of
the Administrative Agent, the Administrative Agent receives and accepts an
Assignment and Acceptance entered into by the Lender that is the payee of such
Note, as assignor, and an Eligible Assignee, as assignee, or, in the case of any
other Agent, such Agent has received notice from the Administrative Agent that
it has received and accepted such Assignment and Acceptance, in each case as
provided in Section 9.07; (b) may consult with legal counsel
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                                      64

(including counsel for any Loan Party), independent public accountants and other
experts selected by it and shall not be liable for any action taken or omitted
to be taken in good faith by it in accordance with the advice of such counsel,
accountants or experts; (c) makes no warranty or representation to any Lender
and shall not be responsible to any Lender for any statements, warranties or
representations (whether written or oral) made in or in connection with the Loan
Documents; (d) shall not have any duty to ascertain or to inquire as to the
performance or observance of any of the terms, covenants or conditions of any
Loan Document on the part of any Loan Party or to inspect the property
(including the books and records) of any Loan Party; (e) shall not be
responsible to any Lender for the due execution, legality, validity,
enforceability, genuineness, sufficiency or value of, or the perfection or
priority of any lien or security interest created or purported to be created
under or in connection with, any Loan Document or any other instrument or
document furnished pursuant thereto; and (f) shall incur no liability under or
in respect of any Loan Document by acting upon any notice, consent, certificate
or other instrument or writing (which may be by telegram or telecopy) reasonably
believed by it to be genuine and signed or sent by the proper party or parties.

          SECTION 8.03.  MGT and Affiliates.  With respect to its Commitments,
the Committed Advances made by it and the Committed Notes issued to it, MGT
shall have the same rights and powers under the Loan Documents as any other
Lender and may exercise the same as though it were not an Agent; and the term
"Lender" or "Lenders" shall, unless otherwise expressly indicated, include MGT
in its individual capacity.  MGT and its affiliates may accept deposits from,
lend money to, act as trustee under indentures of, accept investment banking
engagements from and generally engage in any kind of business with, any Loan
Party, any of its Subsidiaries and any Person that may do business with or own
securities of any Loan Party or any such Subsidiary, all as if MGT were not
Agent and without any duty to account therefor to the Lenders.

          SECTION 8.04.  Lender Credit Decision.  Each Lender acknowledges that
it has, independently and without reliance upon any Agent or any other Lender
and based on the financial statements referred to in Section 4.01 and such other
documents and information as it has deemed appropriate, made its own credit
analysis and decision to enter into this Agreement.  Each Lender also
acknowledges that it will, independently and without reliance upon any Agent or
any other Lender and based on such documents and information as it shall deem
appropriate at the time, continue to make its own credit decisions in taking or
not taking action under this Agreement.

          SECTION 8.05.  Indemnification.  (a)  Each Lender severally agrees to
indemnify each Agent (to the extent not promptly reimbursed by the Borrowers)
from and against such Lender's ratable share (determined as provided below) of
any and all liabilities, obligations, losses, damages, penalties, actions,
judgments, suits, costs, expenses or disbursements of any kind or nature
whatsoever that may be imposed on, incurred by, or asserted against such Agent
in any way relating to or arising out of the Loan Documents or any action taken
or omitted by such Agent under the Loan Documents; provided, however, that no
Lender shall be liable for any portion of such liabilities, obligations, losses,
damages, penalties, actions, judgments, suits, costs, expenses or disbursements
resulting from such Agent's gross negligence or willful misconduct. Without
limitation of the foregoing, each Lender agrees to reimburse each Agent promptly
upon demand for its ratable share of any costs and expenses (including, without
limitation, fees and expenses of counsel) payable by the Borrowers under Section
9.04, to the extent that such Agent is not promptly reimbursed for such costs
and expenses by the Borrowers.
<PAGE>

                                      65

          (b) For purposes of this Section 8.05, the Lenders' respective ratable
shares of any amount shall be determined, at any time, according to the sum of
(i) the aggregate principal amount of the Advances outstanding at such time and
owing to the respective Lenders and (ii) their respective Unused Commitments at
such time.  The failure of any Lender to reimburse any Agent promptly upon
demand for its ratable share of any amount required to be paid by the Lenders to
such Agent as provided herein shall not relieve any other Lender of its
obligation hereunder to reimburse such Agent for its ratable share of such
amount, but no Lender shall be responsible for the failure of any other Lender
to reimburse such Agent for such other Lender's ratable share of such amount.
Without prejudice to the survival of any other agreement of any Lender
hereunder, the agreement and obligations of each Lender contained in this
Section 8.05 shall survive the payment in full of principal, interest and all
other amounts payable hereunder and under the other Loan Documents.

          SECTION 8.06.  Successor Agents.  Any Agent may resign at any time by
giving written notice thereof to the Lenders and the Parent and may be removed
at any time with or without cause by the Required Lenders.  Upon any such
resignation or removal, the Required Lenders shall have the right to appoint a
successor Agent, subject (so long as no Event of Default exists) to the consent
of the Parent (which consent shall not be unreasonably withheld).  If no
successor Agent shall have been so appointed by the Required Lenders, and shall
have accepted such appointment, within 30 days after the retiring Agent's giving
of notice of resignation or the Required Lenders' removal of the retiring Agent,
then the retiring Agent may, on behalf of the Lenders, appoint a successor
Agent, which shall be a commercial bank organized under the laws of the United
States or of any State thereof and having a combined capital and surplus of at
least $250,000,000.  Upon the acceptance of any appointment as Agent hereunder
by a successor Agent such successor Agent shall succeed to and become vested
with all the rights, powers, discretion, privileges and duties of the retiring
Agent, and the retiring Agent shall be discharged from its duties and
obligations under the Loan Documents.  If within 45 days after written notice is
given of the retiring Agent's resignation or removal under this Section 8.06 no
successor Agent shall have been appointed and shall have accepted such
appointment, then on such 45th day (i) the retiring Agent's resignation or
removal shall become effective, (ii) the retiring Agent shall thereupon be
discharged from its duties and obligations under the Loan Documents and (iii)
the Required Lenders shall thereafter perform all duties of the retiring Agent
under the Loan Documents until such time, if any, as the Required Lenders
appoint a successor Agent as provided above.  After any retiring Agent's
resignation or removal hereunder as Agent shall have become effective, the
provisions of this Article VIII shall inure to its benefit as to any actions
taken or omitted to be taken by it while it was Agent under this Agreement.

                                  ARTICLE IX

                                 MISCELLANEOUS

          SECTION 9.01.  Amendments, Etc.  No amendment or waiver of any
provision of this Agreement or the Notes or any other Loan Document, nor consent
to any departure by any Loan Party therefrom, shall in any event be effective
unless the same shall be in writing and signed by the Required Lenders (and, in
the case of an amendment, the Parent), and then any such waiver or consent shall
be effective only in the specific instance and for the specific purpose for
which given; provided, however, that no amendment, waiver or consent shall,
unless in writing and signed by all of the Lenders (other
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                                      66

than any Lender that is, at such time, a Defaulting Lender), do any of the
following at any time: (i) waive any of the conditions specified in Section 3.01
or, in the case of the Initial Extension of Credit, Section 3.02, (ii) change
the number of Lenders or the percentage of (x) the Commitments or (y) the
aggregate unpaid principal amount of the Advances that, in each case, shall be
required for the Lenders or any of them to take any action hereunder, (iii)
reduce or limit the obligations of any Borrower under Section 7.01 or release
such Borrower or otherwise limit such Borrower's liability with respect to the
obligations owing to the Agents and the Lenders (iv) amend this Section 9.01,
(v) increase the Commitments of the Lenders or subject the Lenders to any
additional obligations, (vi) reduce the principal of, or interest on, the Notes
or any fees or other amounts payable hereunder (other than under Section
2.06(b)), (vii) postpone any date fixed for any payment of principal of, or
interest on, the Notes or any fees or other amounts payable hereunder (other
than under Section 2.06(b)), or (viii) limit the liability of any Loan Party
under any of the Loan Documents; provided further that no amendment, waiver or
consent shall, unless in writing and signed by an Agent in addition to the
Lenders required above to take such action, affect the rights or duties of such
Agent under this Agreement or the other Loan Documents.

          SECTION 9.02.  Notices, Etc.  All notices and other communications
provided for hereunder shall be in writing (including telegraphic or telecopy
communication) and mailed, telegraphed, telecopied or delivered, if to any
Borrower, at its address set forth below on the signature pages hereof; if to
any Initial Lender, at its Domestic Lending Office specified opposite its name
on Schedule I hereto; if to any other Lender, at its Domestic Lending Office
specified in the Assignment and Acceptance pursuant to which it became a Lender;
if to the Syndication Agent, at its address at World Financial Center, North
Tower, 250 Vesey Street, New York, New York  10281, Attention:  Carol Feley; and
if to the Administrative Agent, at its address at 500 Stanton Christiana Road,
Newark, DE 19713, Attention:  Bill Wood; or, as to any party, at such other
address as shall be designated by such party in a written notice to the other
parties.  All such notices and communications shall, when mailed, telegraphed or
telecopied, be effective when deposited in the mails, delivered to the telegraph
company or transmitted by telecopier, respectively, except that notices and
communications to any Agent pursuant to Article II, III or VIII shall not be
effective until received by such Agent.  Manual delivery by telecopier of an
executed counterpart of any amendment or waiver of any provision of this
Agreement or the Notes or of any Exhibit hereto to be executed and delivered
hereunder shall be effective as delivery of an original executed counterpart
thereof.

          SECTION 9.03.  No Waiver; Remedies.  No failure on the part of any
Lender or any Agent to exercise, and no delay in exercising, any right hereunder
or under any Note shall operate as a waiver thereof; nor shall any single or
partial exercise of any such right preclude any other or further exercise
thereof or the exercise of any other right.  The remedies herein provided are
cumulative and not exclusive of any remedies provided by law.

          SECTION 9.04.  Costs and Expenses.  (a)  Each of the Borrowers jointly
and severally agrees to pay on demand (i) all reasonable costs and expenses of
the Agents in connection with the preparation, execution, delivery,
administration, modification and amendment of the Loan Documents (including,
without limitation, (A) all due diligence, collateral review, syndication,
transportation, computer, duplication, appraisal, audit, insurance, consultant,
search, filing and recording fees and expenses and (B) the reasonable fees and
expenses of a single counsel for the Agents with respect
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                                      67

thereto, with respect to advising the Agents as to its rights and
responsibilities, or the perfection, protection or preservation of rights or
interests, under the Loan Documents, with respect to negotiations with any Loan
Party or with other creditors of any Loan Party or any of its Subsidiaries
arising out of any Default or any events or circumstances that may give rise to
a Default and with respect to presenting claims in or otherwise participating in
or monitoring any bankruptcy, insolvency or other similar proceeding involving
creditors' rights generally and any proceeding ancillary thereto) and (ii) all
reasonable costs and expenses of each Agent and each Lender in connection with
the enforcement of the Loan Documents, whether in any action, suit or
litigation, or any bankruptcy, insolvency or other similar proceeding affecting
creditors' rights generally (including, without limitation, the reasonable fees
and expenses of counsel for the Administrative Agent and each Lender with
respect thereto).

          (b) Each of the Borrowers jointly and severally agrees to indemnify
and hold harmless each Agent, each Lender and each of their Affiliates and their
respective officers, directors, employees, agents and advisors (each, an
"Indemnified Party") from and against any and all claims, damages, losses,
liabilities and expenses (including, without limitation, reasonable fees and
expenses of counsel) that may be incurred by or asserted or awarded against any
Indemnified Party, in each case arising out of or in connection with or by
reason of (including, without limitation, in connection with any investigation,
litigation or proceeding or preparation of a defense in connection therewith)
this Agreement, the actual or proposed use of the proceeds of the Advances, the
Transaction Documents or any of the transactions contemplated thereby,
including, without limitation, any acquisition or proposed acquisition
(including, without limitation, the Acquisition and any of the other
transactions contemplated by the Transaction Documents) by any Borrower or any
of its Subsidiaries or Affiliates of all or any portion of the Equity Interests
in or Debt securities or substantially all of the assets of CIGNAP&C, except to
the extent such claim, damage, loss, liability or expense is found in a final,
non-appealable judgment by a court of competent jurisdiction to have resulted
from such Indemnified Party's gross negligence or willful misconduct. In the
case of an investigation, litigation or other proceeding to which the indemnity
in this Section 9.04(b) applies, such indemnity shall be effective whether or
not such investigation, litigation or proceeding is brought by any Loan Party,
its directors, shareholders or creditors or an Indemnified Party or any
Indemnified Party is otherwise a party thereto and whether or not the
transactions contemplated by the Transaction Documents are consummated. Each of
the Borrowers also agrees not to assert any claim against any Agent, any Lender
or any of their Affiliates, or any of their respective officers, directors,
employees, attorneys and agents, on any theory of liability, for special,
indirect, consequential or punitive damages arising out of or otherwise relating
to the credit facilities provided hereunder, the actual or proposed use of the
proceeds of the Advances or the Letters of Credit, the Transaction Documents or
any of the transactions contemplated by the Transaction Documents.

          (c) If any payment of principal of, or Conversion of, any Eurodollar
Rate Advance or LIBO Rate Advance is made by any Borrower to or for the account
of a Lender other than on the last day of the Interest Period for such Advance,
as a result of a payment or Conversion pursuant to Section 2.06, 2.09(b)(i) or
2.10(d), acceleration of the maturity of the Notes pursuant to Section 6.01 or
for any other reason, or if any Borrower fails to make any payment or prepayment
of an Advance for which a notice of prepayment has been given or that is
otherwise required to be made, whether pursuant to Section 2.04, 2.06 or 6.01 or
otherwise, the Borrowers jointly and severally agree, within 10 days after
demand by such Lender (with a copy of such demand to the Administrative Agent),
which demand shall
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                                       68

include a calculation in reasonable detail of the amount demanded, to pay to the
Administrative Agent for the account of such Lender any amounts required to
compensate such Lender for any additional losses, costs or expenses that it may
reasonably incur as a result of such payment or Conversion or such failure to
pay or prepay, as the case may be, including, without limitation, any loss
(excluding loss of anticipated profits), cost or expense incurred by reason of
the liquidation or reemployment of deposits or other funds acquired by any
Lender to fund or maintain such Advance.

          (d) Without prejudice to the survival of any other agreement of any
Loan Party hereunder or under any other Loan Document, the agreements and
obligations of the Borrowers contained in Sections 2.10 and 2.12 and this
Section 9.04 shall survive the payment in full of principal, interest and all
other amounts payable hereunder and under any of the other Loan Documents.

          SECTION 9.05.  Right of Set-off.  Upon (a) the occurrence and during
the continuance of any Event of Default and (b) the making of the request or the
granting of the consent specified by Section 6.01 to authorize the
Administrative Agent to declare the Notes due and payable pursuant to the
provisions of Section 6.01, each Agent and each Lender and each of their
respective Affiliates is hereby authorized at any time and from time to time, to
the fullest extent permitted by law, to set off and otherwise apply any and all
deposits (general or special, time or demand, provisional or final) at any time
held and other indebtedness at any time owing by such Agent, such Lender or such
Affiliate to or for the credit or the account of any Borrower against any and
all of the obligations of such Borrower now or hereafter existing under the Loan
Documents, irrespective of whether such Agent or such Lender shall have made any
demand under this Agreement or such Note or Notes and although such obligations
may be unmatured.  Each Agent and each Lender agrees promptly to notify each
Borrower after any such set-off and application; provided, however, that the
failure to give such notice shall not affect the validity of such set-off and
application.  The rights of each Agent and each Lender and their respective
Affiliates under this Section are in addition to other rights and remedies
(including, without limitation, other rights of set-off) that such Agent, such
Lender and their respective Affiliates may have.

          SECTION 9.06.  Binding Effect.  This Agreement shall become effective
when it shall have been executed by each Borrower and each Agent and the
Administrative Agent shall have been notified by each Initial Lender that such
Initial Lender and has executed it and thereafter shall be binding upon and
inure to the benefit of each  Borrower, each Agent and each Lender and their
respective successors and assigns, except that no Borrower shall  have the right
to assign its rights hereunder or any interest herein without the prior written
consent of the Lenders.

          SECTION 9.07.  Assignments and Participations.  (a)  Each Lender may
and, so long as no Default shall have occurred and be continuing, if demanded by
any Borrower (following a demand by such Lender pursuant to Section 2.16), (i)
upon at least five Business Days' notice to such Lender and the Administrative
Agent, will assign to one or more Eligible Assignee, all or a portion of its
rights and obligations under this Agreement (including, without limitation, all
or a portion of its Commitment, the Committed Advances owing to it and the Note
or Notes held by it); provided, however, that (i) each such assignment shall be
of a uniform, and not a varying, percentage of all rights and obligations under
and in respect of the Committed Facility, the "Committed Facility" under the ACE
INA 364-Day Revolving Credit Facility and the "Committed Facility" under the
Borrowers' Five-Year Revolving Credit Facility, except  for any non-pro rata
assignment by a "Downgraded Lender" under the Borrowers' Five-Year
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                                      69

Revolving Credit Facility of its commitment thereunder pursuant to Sections 2.17
and 2.19 and any non-pro rata assignments to a SPC pursuant to Section 9.07(l)
and any other non-pro rata assignment approved by the Administrative Agent and
any Borrower, (ii) except in the case of an assignment to a Person that,
immediately prior to such assignment, was a Lender, an Affiliate of any Lender
or an Approved Fund of any Lender or an assignment of all of a Lender's rights
and obligations under this Agreement, the aggregate amount of the Commitments
being assigned to such Eligible Assignee pursuant to such assignment (determined
as of the date of the Assignment and Acceptance with respect to such assignment)
shall in no event be less than $10,000,000, (iii) each such assignment shall be
to an Eligible Assignee, (iv) each assignment made as a result of a demand by
any Borrower pursuant to Section 2.16 shall be arranged by such Borrower after
consultation with the Administrative Agent and shall be either an assignment of
all of the rights and obligations of the assigning Lender under this Agreement
or an assignment of a portion of such rights and obligations made concurrently
with another such assignment or other such assignments that together cover all
of the rights and obligations of the assigning Lender under this Agreement, (v)
no Lender shall be obligated to make any such assignment as a result of a demand
by any Borrower pursuant to Section 2.16 unless and until such Lender shall have
received one or more payments from either such Borrower or other Eligible
Assignees in an aggregate amount at least equal to the aggregate outstanding
principal amount of the Committed Advances owing to such Lender, together with
accrued interest thereon to the date of payment of such principal amount and all
other amounts payable to such Lender under this Agreement, (vi) as a result of
such assignment, no Borrower shall be subject to additional amounts under
Section 2.10 or 2.12, (vii) no such assignment shall be permitted without the
consent of the Administrative Agent and, so long as no Default shall have
occurred and be continuing, the Parent (which consents shall not be unreasonably
withheld) and (viii) the parties to each such assignment shall execute and
deliver to the Administrative Agent, for its acceptance and recording in the
Register, an Assignment and Acceptance, together with any Note or Notes subject
to such assignment and a processing and recordation fee of $2,500.00.

          (b) Upon such execution, delivery, acceptance and recording, from and
after the effective date specified in such Assignment and Acceptance, (i) the
assignee thereunder shall be a party hereto and, to the extent that rights and
obligations hereunder have been assigned to it pursuant to such Assignment and
Acceptance, have the rights and obligations of a Lender hereunder and (ii) the
Lender or assignor thereunder shall, to the extent that rights and obligations
hereunder have been assigned by it pursuant to such Assignment and Acceptance,
relinquish its rights (other than its rights under Sections 2.10, 2.12 and 9.04
to the extent any claim thereunder relates to an event arising prior to such
assignment) and be released from its obligations under this Agreement (and, in
the case of an Assignment and Acceptance covering all of the remaining portion
of an assigning Lender's rights and obligations under this Agreement, such
Lender shall cease to be a party hereto).

          (c) By executing and delivering an Assignment and Acceptance, each
Lender assignor thereunder and each assignee thereunder confirm to and agree
with each other and the other parties thereto and hereto as follows:  (i) other
than as provided in such Assignment and Acceptance, such assigning Lender makes
no representation or warranty and assumes no responsibility with respect to any
statements, warranties or representations made in or in connection with any Loan
Document or the execution, legality, validity, enforceability, genuineness,
sufficiency or value of, or the perfection or priority of any lien or security
interest created or purported to be created under or in connection with, any
Loan Document or any other instrument or document furnished pursuant thereto;
(ii) such assigning
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                                      70

Lender makes no representation or warranty and assumes no responsibility with
respect to the financial condition of any Loan Party or the performance or
observance by any Loan Party of any of its obligations under any Loan Document
or any other instrument or document furnished pursuant thereto; (iii) such
assignee confirms that it has received a copy of this Agreement, together with
copies of the financial statements referred to in Section 4.01 and such other
documents and information as it has deemed appropriate to make its own credit
analysis and decision to enter into such Assignment and Acceptance; (iv) such
assignee will, independently and without reliance upon any Agent, such assigning
Lender or any other Lender and based on such documents and information as it
shall deem appropriate at the time, continue to make its own credit decisions in
taking or not taking action under this Agreement; (v) such assignee confirms
that it is an Eligible Assignee; (vi) such assignee appoints and authorizes each
Agent to take such action as agent on its behalf and to exercise such powers and
discretion under the Loan Documents as are delegated to such Agent by the terms
hereof and thereof, together with such powers and discretion as are reasonably
incidental thereto; and (vii) such assignee agrees that it will perform in
accordance with their terms all of the obligations that by the terms of this
Agreement are required to be performed by it as a Lender.

          (d) The Administrative Agent, acting for this purpose (but only for
this purpose) as the agent of the Borrowers, shall maintain at its address
referred to in Section 9.02 a copy of each Assignment and Acceptance and each
Designation Agreement delivered to and accepted by it and a register for the
recordation of the names and addresses of the Lenders and, with respect to
Lenders other than Designated Bidders, the Commitment of, and principal amount
of the Advances owing to, each Lender from time to time (the "Register").  The
entries in the Register shall be conclusive and binding for all purposes, absent
manifest error, and the Borrowers, the Agents and the Lenders shall treat each
Person whose name is recorded in the Register as a Lender hereunder for all
purposes of this Agreement.  The Register shall be available for inspection by
any Borrower or any Agent or any Lender at any reasonable time and from time to
time upon reasonable prior notice.

          (e) Upon its receipt of an Assignment and Acceptance executed by an
assigning Lender and an assignee, together with any Note or Notes subject to
such assignment, the Administrative Agent shall, if such Assignment and
Acceptance has been completed and is in substantially the form of Exhibit C
hereto, (i) accept such Assignment and Acceptance, (ii) record the information
contained therein in the Register and (iii) give prompt notice thereof to the
Parent and each other Agent.  No Assignment and Acceptance shall be effective
unless and until it shall have been recorded in the Register. In the case of any
assignment by a Lender, within five Business Days after its receipt of such
notice, each Borrower, at its own expense, shall execute and deliver to the
Administrative Agent in exchange for the surrendered Note or Notes a new Note to
the order of such Eligible Assignee in an amount equal to the Commitment assumed
by it pursuant to such Assignment and Acceptance and, if any assigning Lender
has retained a Commitment hereunder, a new Note to the order of such assigning
Lender in an amount equal to the Commitment retained by it hereunder.  Such new
Note or Notes shall be in an aggregate principal amount equal to the aggregate
principal amount of such surrendered Note or Notes, shall be dated the effective
date of such Assignment and Acceptance and shall otherwise be in substantially
the form of Exhibit A-1 hereto.

          (f) Each Lender (other than the Designated Bidders) may designate one
or more banks or other entities to have a right to make Competitive Bid Advances
as a Lender pursuant to Section
<PAGE>

                                      71

2.03; provided, however, that (i) no such Lender shall be entitled to make more
than 3 such designations, (ii) each such Lender making one or more such
designations shall retain the right to make Competitive Bid Advances as a Lender
pursuant to Section 2.03, (iii) each such designation shall be to a Designated
Bidder and (iv) the parties to each such designation shall execute and deliver
to the Agent, for its acceptance and recording in the Register, a Designation
Agreement. Upon such execution, delivery, acceptance and recording, from and
after the effective date specified in each Designation Agreement, the designee
thereunder shall be a party hereto with a right to make Competitive Bid Advances
as a Lender pursuant to Section 2.03 and the obligations related thereto.

          (g) By executing and delivering a Designation Agreement, the Lender
making the designation thereunder and its designee thereunder confirm and agree
with each other and the other parties hereto as follows:  (i) such Lender makes
no representation or warranty and assumes no responsibility with respect to any
statements, warranties or representations made in or in connection with this
Agreement or the execution, legality, validity, enforceability, genuineness,
sufficiency or value of this Agreement or any other instrument or document
furnished pursuant hereto; (ii) such Lender makes no representation or warranty
and assumes no responsibility with respect to the financial condition of any
Borrower or the performance or observance by any Borrower of any of its
obligations under this Agreement or any other instrument or document furnished
pursuant hereto; (iii) such designee confirms that it has received a copy of
this Agreement, together with copies of the financial statements referred to in
Section 4.01 and such other documents and information as it has deemed
appropriate to make its own credit analysis and decision to enter into such
Designation Agreement; (iv) such designee will, independently and without
reliance upon the Agent, such designating Lender or any other Lender and based
on such documents and information as it shall deem appropriate at the time,
continue to make its own credit decisions in taking or not taking action under
this Agreement; (v) such designee confirms that it is a Designated Bidder; (vi)
such designee appoints and authorizes the Agent to take such action as agent on
its behalf and to exercise such powers and discretion under this Agreement as
are delegated to the Agent by the terms hereof, together with such powers and
discretion as are reasonably incidental thereto; and (vii) such designee agrees
that it will perform in accordance with their terms all of the obligations which
by the terms of this Agreement are required to be performed by it as a Lender.

          (h) Upon its receipt of a Designation Agreement executed by a
designating Lender and a designee representing that it is a Designated Bidder,
the Administrative Agent shall, if such Designation Agreement has been completed
and is substantially in the form of Exhibit I hereto, (i) accept such
Designation Agreement, (ii) record the information contained therein in the
Register and (iii) give prompt notice thereof to the Parent.

          (i) Each Lender may sell participations to one or more Persons (other
than any Loan Party or any of its Affiliates) in or to all or a portion of its
rights and obligations under this Agreement (including, without limitation, all
or a portion of its Commitment, the Committed Advances owing to it and the
Committed Note or Notes (if any) held by it); provided, however, that (i) such
Lender's obligations under this Agreement (including, without limitation, its
Commitment) shall remain unchanged, (ii) such Lender shall remain solely
responsible to the other parties hereto for the performance of such obligations,
(iii) such Lender shall remain the holder of any such Committed Note for all
purposes of this Agreement, (iv) the Borrowers, the Agents and the other Lenders
shall continue to deal solely and directly with such Lender in connection with
such Lender's rights and obligations under
<PAGE>

                                      72

this Agreement and (v) no participant under any such participation shall have
any right to approve any amendment or waiver of any provision of any Loan
Document, or any consent to any departure by any Loan Party therefrom, except to
the extent that such amendment, waiver or consent would reduce the principal of,
or interest on, the Committed Notes or any fees or other amounts payable
hereunder, in each case to the extent subject to such participation, postpone
any date fixed for any payment of principal of, or interest on, the Committed
Notes or any fees or other amounts payable hereunder, in each case to the extent
subject to such participation. Each Lender shall, as agent of the Borrowers
solely for the purposes of this Section, record in book entries maintained by
such Lender, the name and amount of the participating interest of each Person
entitled to receive payments in respect of any participating interests sold
pursuant to this Section.

          (j) Any Lender may, in connection with any assignment or participation
or proposed assignment or participation pursuant to this Section 9.07, disclose
to the assignee or participant or proposed assignee or participant any
information relating to any Borrower furnished to such Lender by or on behalf of
any Borrower; provided, however, that, prior to any such disclosure, the
assignee or participant or proposed assignee or participant shall agree to
preserve the confidentiality of any Confidential Information received by it from
such Lender.

          (k) Notwithstanding any other provision set forth in this Agreement,
any Lender may at any time create a security interest in all or any portion of
its rights under this Agreement (including, without limitation, the Advances
owing to it and the Note or Notes held by it) in favor of any Federal Reserve
Bank in accordance with Regulation A of the Board of Governors of the Federal
Reserve System.

          (l) Notwithstanding anything to the contrary contained herein, any
Lender (a "Granting Lender") may grant to a special purpose funding vehicle (an
"SPC"), identified as such in writing from time to time by the Granting Lender
to the Administrative Agent and the Parent, the option to provide to the
Borrowers all or any part of any Committed Advance that such Granting Lender
would otherwise be obligated to make to the Borrowers pursuant to this
Agreement; provided that (i) nothing herein shall constitute a commitment by any
SPC to make any Committed Advance, (ii) if an SPC elects not to exercise such
option or otherwise fails to provide all or any part of such Committed Advance,
the Granting Lender shall be obligated to make such Committed Advance pursuant
to the terms hereof.  The making of a Committed Advance by an SPC hereunder
shall utilize the Commitment of the Granting Lender to the same extent, and as
if, such Committed Advance were made by such Granting Lender. Each party hereto
hereby agrees that no SPC shall be liable for any indemnity or similar payment
obligation under this Agreement (all liability for which shall remain with the
Granting Lender).  In furtherance of the foregoing, each party hereto hereby
agrees (which agreement shall survive the termination of this Agreement) that,
prior to the date that is one year and one day after the payment in full of all
outstanding commercial paper or other senior indebtedness of any SPC, it will
not institute against, or join any other person in instituting against, such SPC
any bankruptcy, reorganization, arrangement, insolvency or liquidation
proceedings under the laws of the United States or any State thereof.  In
addition, notwithstanding anything to the contrary contained in this Section
9.07(l), any SPC may (i) with notice to, but without the prior written consent
of, the Parent and the Administrative Agent and without paying any processing
fee therefor, assign all or a portion of its interests in any Committed Advances
to the Granting Lender or to any financial institutions (consented to by the
Parent and
<PAGE>

                                      73

Administrative Agent) providing liquidity and/or credit support to or for the
account of such SPC to support the funding or maintenance of Committed Advances
and (ii) disclose on a confidential basis any non-public information relating to
its Committed Advances to any rating agency, commercial paper dealer or provider
of any surety, guarantee or credit or liquidity enhancement to such SPC. This
section may not be amended without the written consent of each SPC.

          SECTION 9.08.  Execution in Counterparts.  This Agreement may be
executed in any number of counterparts and by different parties hereto in
separate counterparts, each of which when so executed shall be deemed to be an
original and all of which taken together shall constitute one and the same
agreement.  Delivery of an executed counterpart of a signature page to this
Agreement by telecopier shall be effective as delivery of an original executed
counterpart of this Agreement.

          SECTION 9.09.  Confidentiality.  Neither any Agent nor any Lender
shall disclose any Confidential Information to any Person without the consent of
the Parent, other than (a) to such Agent's or such Lender's Affiliates and their
officers, directors, employees, agents and advisors and to actual or prospective
Eligible Assignees and participants, and then only on a confidential basis, (b)
as required by any law, rule or regulation or judicial process, (c) as requested
or required by any state, Federal or foreign authority or examiner regulating
such Lender and (d) to any rating agency when required by it, provided that,
prior to any such disclosure, such rating agency shall undertake to preserve the
confidentiality of any Confidential Information relating to the Loan Parties
received by it from such Lender.

          SECTION 9.10.  Jurisdiction, Etc.  (a)  Each of the parties hereto
hereby irrevocably and unconditionally submits, for itself and its property, to
the nonexclusive jurisdiction of any New York State court or Federal court of
the United States of America sitting in New York City, and any appellate court
from any thereof, in any action or proceeding arising out of or relating to this
Agreement or any of the other Loan Documents to which it is a party, or for
recognition or enforcement of any judgment, and each of the parties hereto
hereby irrevocably and unconditionally agrees that all claims in respect of any
such action or proceeding may be heard and determined in any such New York State
court or, to the extent permitted by law, in such Federal court.  Each of the
parties hereto agrees that a final judgment in any such action or proceeding
shall be conclusive and may be enforced in other jurisdictions by suit on the
judgment or in any other manner provided by law.  Nothing in this Agreement
shall affect any right that any party may otherwise have to bring any action or
proceeding relating to this Agreement or any of the other Loan Documents in the
courts of any jurisdiction.

          (b) Each of the parties hereto irrevocably and unconditionally waives,
to the fullest extent it may legally and effectively do so, any objection that
it may now or hereafter have to the laying of venue of any suit, action or
proceeding arising out of or relating to this Agreement or any of the other Loan
Documents to which it is a party in any New York State or Federal court.  Each
of the parties hereto hereby irrevocably waives, to the fullest extent permitted
by law, the defense of an inconvenient forum to the maintenance of such action
or proceeding in any such court.

          SECTION 9.11.  Governing Law.  This Agreement and the Notes shall be
governed by, and construed in accordance with, the laws of the State of New
York.
<PAGE>

                                      74

          SECTION 9.12.  Waiver of Jury Trial.  Each of the Borrowers, the
Agents and the Lenders irrevocably waives all right to trial by jury in any
action, proceeding or counterclaim (whether based on contract, tort or
otherwise) arising out of or relating to any of the Loan Documents, the Advances
or the actions of any Agent or any Lender in the negotiation, administration,
performance or enforcement thereof.
<PAGE>

          IN WITNESS WHEREOF, the parties hereto have caused this Agreement to
be executed by their respective officers thereunto duly authorized, as of the
date first above written.

                                       ACE LIMITED

The Common Seal of ACE Limited was
hereunto affixed in the presence of:

------------------------------
Director

------------------------------
Secretary

                                       ACE BERMUDA INSURANCE LTD.

The Common Seal of ACE Bermuda
Insurance Ltd. was hereunto affixed
in the presence of:

------------------------------
Director

------------------------------
Secretary

                                       TEMPEST REINSURANCE COMPANY LIMITED

The Common Seal of Tempest Reinsurance
Company Limited was hereunto affixed in
the presence of:

------------------------------
Director

------------------------------
Secretary

                                       ACE INA HOLDINGS INC

                                       By:
                                           ------------------------------------
                                           Title:
<PAGE>

                                       MERRILL LYNCH, PIERCE, FENNER & SMITH
                                        INCORPORATED,
                                        as Lead Arranger and Syndication Agent

                                       By:
                                           ------------------------------------
                                           Title:

                                       MORGAN GUARANTY TRUST COMPANY
                                         OF NEW YORK,
                                         as Administrative Agent

                                       By:
                                           ------------------------------------
                                           Title:

                                       BANK OF AMERICA NATIONAL TRUST &
                                        SAVINGS ASSOCIATION,
                                        as Documentation Agent

                                       By:
                                           ------------------------------------
                                           Title:
<PAGE>

                                   Initial Lenders

                                       MERRILL LYNCH CAPITAL CORPORATION

                                       By:
                                           ------------------------------------
                                           Title:
<PAGE>

                                       MORGAN GUARANTY TRUST COMPANY OF
                                        NEW YORK

                                       By:
                                           ------------------------------------
                                           Title:
<PAGE>

                                       BANK OF AMERICA NATIONAL TRUST &
                                        SAVINGS ASSOCIATION

                                       By:
                                           ------------------------------------
                                           Title:
<PAGE>

                                       CHASE MANHATTAN BANK

                                       By:
                                           ------------------------------------
                                           Title:
<PAGE>

                                       MELLON BANK, N.A.

                                       By:
                                           ------------------------------------
                                           Title:
<PAGE>

                                       ABN-AMRO BANK N.V.

                                       By:
                                           ------------------------------------
                                           Title:
<PAGE>

                                       BANCO SANTANDER CENTRAL HISPANO, S.A.

                                       By:
                                           ------------------------------------
                                           Title:
<PAGE>

                                       THE BANK OF NEW YORK

                                       By:
                                           ------------------------------------
                                           Title:
<PAGE>

                                       THE BANK OF NOVA SCOTIA

                                       By:
                                           ------------------------------------
                                           Title:
<PAGE>

                                       THE FIRST NATIONAL BANK OF CHICAGO

                                       By:
                                           ------------------------------------
                                           Title:
<PAGE>

                                       BARCLAYS BANK PLC

                                       By:
                                           ------------------------------------
                                           Title:
<PAGE>

                                       BANQUE NATIONALE DE PARIS

                                       By:
                                           ------------------------------------
                                           Title:

                                       By:
                                           ------------------------------------
                                           Title:
<PAGE>

                                       THE BANK OF TOKYO-MITSUBISHI, LTD.

                                       By:
                                           ------------------------------------
                                           Title:
<PAGE>

                                       CIBC INC.

                                       By:
                                           ------------------------------------
                                           Title:
<PAGE>

                                       CITIBANK, N.A.

                                       By:
                                           ------------------------------------
                                           Title:
<PAGE>

                                       COMERICA BANK

                                       By:
                                           ------------------------------------
                                           Title:
<PAGE>

                                       COMMERZBANK AKTIENGESELLSCHAFT
                                         NEW YORK BRANCH

                                       By:
                                           ------------------------------------
                                           Title:

                                       By:
                                           ------------------------------------
                                           Title:
<PAGE>

                                       CREDIT LYONNAIS NEW YORK BRANCH

                                       By:
                                           ------------------------------------
                                           Title:
<PAGE>

                                       CREDIT SUISSE FIRST BOSTON

                                       By:
                                           ------------------------------------
                                           Title:

                                       By:
                                           ------------------------------------
                                           Title:
<PAGE>

                                       DEUTSCHE BANK AG, NEW YORK AND/OR
                                         CAYMAN ISLANDS BRANCHES

                                       By:
                                           ------------------------------------
                                           Title:

                                       By:
                                           ------------------------------------
                                           Title:
<PAGE>

                                       FIRST UNION NATIONAL BANK

                                       By:
                                           ------------------------------------
                                           Title:
<PAGE>

                                       FLEET NATIONAL BANK

                                       By:
                                           ------------------------------------
                                           Title:
<PAGE>

                                       ING BANK N.V., LONDON BRANCH

                                       By:
                                           ------------------------------------
                                           Title:

                                       By:
                                           ------------------------------------
                                           Title:
<PAGE>

                                       KBC BANK

                                       By:
                                           ------------------------------------
                                           Title:

                                       By:
                                           ------------------------------------
                                           Title:
<PAGE>

                                       LLOYDS BANK PLC

                                       By:
                                           ------------------------------------
                                           Title:

                                       By:
                                           ------------------------------------
                                           Title:
<PAGE>

                                       ROYAL BANK OF CANADA

                                       By:
                                           ------------------------------------
                                           Title:
<PAGE>

                                       SOCIETE GENERALE

                                       By:
                                           ------------------------------------
                                           Title:
<PAGE>

                                       STATE STREET BANK AND TRUST COMPANY

                                       By:
                                           ------------------------------------
                                           Title:
<PAGE>

                                       STANDARD CHARTERED BANK

                                       By:
                                           ------------------------------------
                                           Title:

                                       By:
                                           ------------------------------------
                                           Title:<PAGE>

9.8.99                                                             EXHIBIT 10.52

                            REIMBURSEMENT AGREEMENT

          REIMBURSEMENT AGREEMENT dated as of  September 8, 1999 among ACE
Limited, a Cayman Islands company (the "Parent"), ACE Bermuda Insurance Ltd
("ACE Bermuda") and Tempest Reinsurance Company Limited ("Tempest") (ACE Bermuda
and Tempest, together with the Parent, the "Account Parties" and individually an
"Account Party"), the banks, financial institutions and other institutional
lenders listed on the signature pages hereof as the Initial Banks (the "Initial
Banks"), Mellon Bank, N.A., as issuing bank (the "Issuing Bank"), Deutsche Bank
AG, New York and/or Cayman Islands Branches ("Deutsche") and Fleet National Bank
("Fleet") as documentation agents (Deutsche and Fleet, together with any
successor documentation agent appointed pursuant to Article VIII, the
"Documentation Agents" and individually a "Documentation Agent") and Mellon
Bank, N.A., as administrative agent (together with any successor administrative
agent appointed pursuant to Article VIII, the "Administrative Agent" and,
together with the Documentation Agents, the "Agents") for the Banks.

                            PRELIMINARY STATEMENTS:

          The Account Parties have requested that the Issuing Bank and the Banks
make available to the Account Parties a credit facility in an amount up to
$430,000,000 to provide for the issuance of letters of credit for the account of
one or more of the Account Parties.  The Issuing Bank and the Banks have
indicated their willingness to agree to make such letters of credit available on
the terms and conditions of this Agreement.

          NOW, THEREFORE, in consideration of the premises and of the mutual
covenants and agreements contained herein, the parties hereto hereby agree as
follows:

                                   ARTICLE I

                       DEFINITIONS AND ACCOUNTING TERMS

          SECTION 1.01.  Certain Defined Terms.  As used in this Agreement, the
following terms shall have the following meanings (such meanings to be equally
applicable to both the singular and plural forms of the terms defined):

          "Account Parties"  has the meaning specified in the recital of parties
     to this Agreement.

          "ACE Bermuda" has the meaning specified in the recital of parties to
     this Agreement.

                                      -1-
<PAGE>

          "ACE INA" means ACE INA Holdings Inc., a Delaware corporation.

          "Acquisition" means the acquisition by the Parent or one of its
     Affiliates from the Seller of CIGNAP&C, which was a division of the Seller.

          "Adjusted Consolidated Debt" means, at any time, an amount equal to
     (i) the then outstanding Consolidated Debt of the Parent and its
     Subsidiaries plus (ii) 50% of the then issued and outstanding amount of
     Preferred Securities (other than any Mandatorily Convertible Securities).

          "Administrative Agent" has the meaning specified in the recital of
     parties to this Agreement.

          "Administrative Agent's Account" means the account of the
     Administrative Agent maintained by the Administrative Agent at Mellon Bank,
     N.A., One Mellon Bank Center, Pittsburgh, PA  15258, Account No. 990867201
     attn: Mary K. Jones or such other account as the Administrative Agent shall
     specify in writing to the Banks.

          "Advance" means a Letter of Credit Advance.

          "Affected Bank" means any Bank that (i) has made, or notified any
     Account Party that an event or circumstance has occurred which may give
     rise to, a demand for compensation under Section 2.06(a) or (b) or Section
     2.08 (but only so long as the event or circumstance giving rise to such
     demand or notice is continuing) or (ii) is a Downgraded Bank.

          "Affiliate" means, as to any Person, any other Person that, directly
     or indirectly, controls, is controlled by or is under common control with
     such Person or is a director or officer of such Person.  For purposes of
     this definition, the term "control" (including the terms "controlling",
     "controlled by" and "under common control with") of a Person means the
     possession, direct or indirect, of the power to vote 5% or more of the
     Voting Interests of such Person or to direct or cause the direction of the
     management and policies of such Person, whether through the ownership of
     Voting Interests, by contract or otherwise.

          "Agent" has the meaning specified in the recital of parties to this
     Agreement.

          "Agreement Currency" has the meaning specified in Section 2.16(g).

          "Applicable Account Party" with respect to any outstanding or proposed
     Letter of Credit means the Account Party for the account of which such
     Letter of Credit was or is proposed to be issued.

          "Applicable Commitment Fee Percentage" means, as of any date, a
     percentage per annum determined by reference to the Public Debt Rating in
     effect on such date as set forth below:

                                      -2-
<PAGE>

<TABLE>
<CAPTION>
--------------------------------------------------------------------
Public Debt Rating                       Applicable Commitment Fee
S&P/Moody's                                      Percentage
--------------------------------------------------------------------
<S>                                    <C>
Level 1                                            0.100%
-------
A-/A3 and above

Level 2                                            0.125%
-------
BBB+/Baa1

Level 3                                            0.150%
-------
BBB/Baa2

Level 4                                            0.175%
-------
BBB-/Baa3

Level 5                                            0.250%
-------
Lower than Level 4
--------------------------------------------------------------------
</TABLE>

          "Applicable Lending Office" means, with respect to each Bank, such
     Bank's Domestic Lending Office.

          "Applicable Margin" means, as of any date, a percentage per annum
     determined by reference to the Public Debt Rating in effect on such date as
     set forth below:

<TABLE>
<CAPTION>

    Public Debt Rating           Applicable Margin           Applicable Margin
        S&P/Moody's                     for                         for
                                    Case 1 days                 Case 2 days
--------------------------------------------------------------------------------
<S>                              <C>                         <C>

Level 1                                0.425%                      0.500%
-------
A-/A3 and above

Level 2                                0.500%                      0.575%
-------
BBB+/Baa1

Level 3                                0.600%                      0.725%
-------
BBB/Baa2

Level 4                                0.700%                      0.875%
-------
BBB-/Baa3

Level 5                                1.000%                      1.250%
-------
Lower than Level 4
--------------------------------------------------------------------------------
</TABLE>

     it being understood that Case 1 shall be applicable to each day on which
     (x) the sum of the aggregate Available Amount of all Letters of Credit plus
     the aggregate principal amount of all outstanding Letter of Credit Advances
     made by the Issuing Bank pursuant to Section 2.02(f) (whether held by the
     Issuing Bank or the Banks) is equal to or less than (y) 33.0% of the
     aggregate LC Commitment Amounts of the Banks and Case 2 shall be applicable
     to each other day.

          "Approved Fund" means, with respect to any Bank that is a fund that
     invests in bank loans, any other fund that invests in bank loans and is
     advised or managed by the same investment advisor as such Bank or by an
     Affiliate of such investment advisor.

          "Approved Investment" means any Investment that was made by the Parent
     or any of its Subsidiaries pursuant to investment guidelines set forth by
     the board of directors of the Parent which are consistent with past
     practices.

                                      -3-
<PAGE>

          "Assignment and Acceptance" means an assignment and acceptance entered
     into by a Bank and an Eligible Assignee, and accepted by the Administrative
     Agent, in accordance with Section 9.07 and in substantially the form of
     Exhibit C hereto.

          "Available Amount" of any Letter of Credit means, at any time, the
     maximum amount available to be drawn under such Letter of Credit at such
     time or at any future time (assuming compliance at such time or such future
     time with all conditions to drawing) (including without limitation amounts
     which have been the subject of drawings by the applicable beneficiary but
     which have not yet been paid by the Issuing Bank).

          "Bankruptcy Law" means any proceeding of the type referred to in
     Section 6.01(f) or Title 11, U.S. Code, or any similar foreign, federal or
     state law for the relief of debtors.

          "Banks" means the Initial Banks and each Person that shall become a
     Bank hereunder pursuant to Section 9.07(a), (b) and (c) for so long as such
     Initial Bank or Person, as the case may be, shall be a party to this
     Agreement.

          "Base Rate" means a fluctuating interest rate per annum in effect from
     time to time, which rate per annum shall at all times be equal to the rate
     of interest announced publicly by Mellon in Pittsburgh, Pennsylvania from
     time to time, as Mellon's prime rate.

          "Business Day" means a day of the year on which banks are not required
     or authorized by law to close in Pittsburgh, Pennsylvania.

          "Capitalized Leases" means all leases that have been or should be, in
     accordance with GAAP, recorded as capitalized leases.

          "Change of Control" means the occurrence of any of the following:  (a)
     any Person or two or more Persons acting in concert shall have acquired
     beneficial ownership (within the meaning of Rule 13d-3 of the Securities
     and Exchange Commission under the Securities Exchange Act of 1934),
     directly or indirectly, of Voting Interests of the Parent (or other
     securities convertible into such Voting Interests) representing 30% or more
     of the combined voting power of all Voting Interests of the Parent; or (b)
     a majority of the board of directors of the Parent shall not be Continuing
     Members; or (c) any Person or two or more Persons acting in concert shall
     have acquired by contract or otherwise, or shall have entered into a
     contract or arrangement that results in its or their acquisition of the
     power to exercise, directly or indirectly, a controlling influence over the
     management or policies of the Parent.

          "CIGNAP&C" means the domestic and international property and casualty
     business of the Seller.

          "Commitment Amount" means an LC Commitment Amount or the Letter of
     Credit Issuance Commitment Amount.

          "Commitment Banks" has the meaning specified in Section 2.18.

          "Committed Facility" means, at any time, the aggregate amount of the
     Banks' LC Commitment Amounts at such time.

                                      -4-
<PAGE>

          "Confidential Information" means information that any Loan Party
     furnishes to any Agent or any Bank, but does not include any such
     information that is or becomes generally available to the public other than
     as a result of a breach by any Agent or any Bank of its obligations
     hereunder or that is or becomes available to such Agent or such Bank from a
     source other than the Loan Parties that is not, to the best of such Agent's
     or such Bank's knowledge, acting in violation of a confidentiality
     agreement with a Loan Party.

          "Consolidated" refers to the consolidation of accounts in accordance
     with GAAP.

          "Consolidated Net Income" means, for any period, the net income of the
     Parent and its Consolidated Subsidiaries, determined on a Consolidated
     basis for such period.

          "Consolidated Tangible Net Worth" means at any date the Consolidated
     stockholder's equity of the Parent and its Consolidated Subsidiaries (plus,
     to the extent not included in such Consolidated stockholder's equity, the
     outstanding amount of all Mandatorily Convertible Preferred Securities)
     less their Consolidated Intangible Assets, all determined as of such date,
     provided that such determination for purposes of Section 5.04 shall be made
     without giving effect to adjustments pursuant to Statement No. 115 of the
     Financial Accounting Standards Board of the United States of America.  For
     purposes of this definition, "Intangible Assets" means the amount (to the
     extent reflected in determining such Consolidated stockholder's equity) of
     (i) all write-ups (other than write-ups resulting from foreign currency
     translations and write-ups of assets of a going concern business made
     within twelve months after the acquisition of such business) subsequent to
     March 31, 1999 in the book value of any asset owned by the Parent or a
     Consolidated Subsidiary and (ii) all unamortized debt discount and expense,
     unamortized deferred charges, deferred acquisition cost relating to the
     acquisition of the stock or assets of any other Person, goodwill, patents,
     trademarks, service marks, trade names, anticipated future benefit of tax
     loss carry-forwards, copyrights, organization or developmental expense and
     other intangible assets.

          "Conversion to Tranche System" has the meaning specified in Section
     2.18.

          "Contingent Obligation" means, with respect to any Person, any
     obligation or arrangement of such Person to guarantee or intended to
     guarantee any Debt, leases, dividends or other payment obligations
     ("primary obligations") of any other Person (the "primary obligor") in any
     manner, whether directly or indirectly, including, without limitation, (a)
     the direct or indirect guarantee, endorsement (other than for collection or
     deposit in the ordinary course of business), co-making, discounting with
     recourse or sale with recourse by such Person of the obligation of a
     primary obligor, (b) the obligation to make take-or-pay or similar
     payments, if required, regardless of nonperformance by any other party or
     parties to an agreement or (c) any obligation of such Person, whether or
     not contingent, (i) to purchase any such primary obligation or any property
     constituting direct or indirect security therefor, (ii) to advance or
     supply funds (A) for the purchase or payment of any such primary obligation
     or (B) to maintain working capital or equity capital of the primary obligor
     or otherwise to maintain the net worth or solvency of the primary obligor,
     (iii) to purchase property, assets, securities or services primarily for
     the purpose of assuring the owner of any such primary obligation of the
     ability of the primary obligor to make payment of such primary obligation
     or (iv) otherwise to assure or hold harmless the holder of such primary
     obligation against loss in respect thereof; provided, however, that
     Contingent Obligations shall not include any obligations of any such Person
     arising under

                                      -5-
<PAGE>

     insurance contracts entered into in the ordinary course of business. The
     amount of any Contingent Obligation shall be deemed to be an amount equal
     to the stated or determinable amount of the primary obligation in respect
     of which such Contingent Obligation is made (or, if less, the maximum
     amount of such primary obligation for which such Person may be liable
     pursuant to the terms of the instrument evidencing such Contingent
     Obligation) or, if not stated or determinable, the maximum reasonably
     anticipated liability in respect thereof (assuming such Person is required
     to perform thereunder), as determined by such Person in good faith.

          "Continuing Member" means a member of the Board of Directors of the
     Parent who either (i) was a member of the Parent's Board of Directors on
     the date of execution and delivery of this Agreement by the Parent and has
     been such continuously thereafter or (ii) became a member of such Board of
     Directors after such date and whose election or nomination for election was
     approved by a vote of the majority of the Continuing Members then members
     of the Parent's Board of Directors.

          "Current Expiration Date" has the meaning specified in Section 2.17.

          "Debenture" means debt securities issued by ACE INA or the Parent to
     the Special Purpose Trust in exchange for proceeds of Preferred Securities.

          "Debt" of any Person means, without duplication for purposes of
     calculating financial ratios, (a) all indebtedness of such Person for
     borrowed money, (b) all obligations of such Person for the deferred
     purchase price of property or services (other than trade payables incurred
     in the ordinary course of such Person's business), (c) all obligations of
     such Person evidenced by notes, bonds, debentures or other similar
     instruments, (d) all obligations of such Person created or arising under
     any conditional sale or other title retention agreement with respect to
     property acquired by such Person (even though the rights and remedies of
     the seller or lender under such agreement in the event of default are
     limited to repossession or sale of such property), (e) all obligations of
     such Person as lessee under Capitalized Leases (excluding imputed
     interest), (f) all obligations of such Person under acceptance, letter of
     credit or similar facilities, (g) all obligations of such Person to
     purchase, redeem, retire, defease or otherwise make any payment in respect
     of any Equity Interests in such Person or any other Person or any warrants,
     rights or options to acquire such capital stock (excluding payments under a
     contract for the forward sale of ordinary shares of such Person issued in a
     public offering), valued, in the case of Redeemable Preferred Interests, at
     the greater of its voluntary or involuntary liquidation preference plus
     accrued and unpaid dividends, (h) all Contingent Obligations of such Person
     in respect of Debt (of the types described above) of any other Person and
     (i) all indebtedness and other payment obligations referred to in clauses
     (a) through (h) above of another Person secured by (or for which the holder
     of such Debt has an existing right, contingent or otherwise, to be secured
     by) any Lien on property (including, without limitation, accounts and
     contract rights) owned by such Person, even though such Person has not
     assumed or become liable for the payment of such indebtedness or other
     payment obligations; provided, however, that the amount of Debt of such
     Person under clause (i) above shall, if such Person has not assumed or
     otherwise become liable for any such Debt, be limited to the lesser of the
     principal amount of such Debt or the fair market value of all property of
     such Person securing such Debt; provided further that "Debt" shall not
     include obligations in respect of insurance or reinsurance contracts
     entered into in the ordinary course of business; provided further that,
     solely for purposes of Section 5.04 and the definitions of "Adjusted
     Consolidated Debt" and "Total Capitalization", "Debt" shall not include (x)
     any contingent obligations of any Person under or in connection with
     acceptance, letter of credit or

                                      -6-
<PAGE>

     similar facilities or (y) obligations of the Parent or ACE INA under any
     Debentures or under any subordinated guaranty of any Preferred Securities
     or obligations of the Special Purpose Trust under any Preferred Securities.

          "Default" means any Event of Default or any event that would
     constitute an Event of Default but for the requirement that notice be given
     or time elapse or both.

          "Defaulted Amount" means, with respect to any Bank at any time, any
     amount required to be paid by such Bank to any Agent or any other Bank
     hereunder or under any other Loan Document at or prior to such time that
     has not been so paid as of such time, including, without limitation, any
     amount required to be paid by such Bank to (a) the Issuing Bank pursuant to
     Section 2.02(e) to purchase a portion of a Letter of Credit Advance made by
     the Issuing Bank and (b) any Agent or the Issuing Bank pursuant to Section
     8.05 to reimburse such Agent or the Issuing Bank for such Bank's ratable
     share of any amount required to be paid by the Banks to such Agent or the
     Issuing Bank as provided therein.

          "Defaulting Bank" means, at any time, any Bank that, at such time, (a)
     owes a Defaulted Amount or (b) shall take any action or be the subject of
     any action or proceeding of a type described in Section 6.01(f).

          "Deutsche" has the meaning specified in the recital of parties to this
     Agreement.

          "Documentation Agent" has the meaning specified in the recital of
     parties to this Agreement.

          "Dollar Equivalent" has the meaning specified in Section 2.16(h).

          "Domestic Lending Office" means, with respect to any Bank, the office
     of such Bank specified as its "Domestic Lending Office" opposite its name
     on Schedule I hereto or in the Assignment and Acceptance pursuant to which
     it became a Bank, as the case may be, or such other office of such Bank as
     such Bank may from time to time specify to any  Account Party and the
     Administrative Agent.

          "Downgrade Account" has the meaning specified in Section 2.14(a).

          "Downgrade Event" means, with respect to any Bank, a reduction of the
     credit rating for the senior unsecured unsupported long-term debt of such
     Bank by S&P or Moody's.

          "Downgraded Bank" means any Bank which has a credit rating of less
     than A- (in the case of S&P) or A3 (in the case of Moody's) for its senior
     unsecured unsupported long-term debt or which does not have any credit
     rating on such debt from one of S&P or Moody's.

          "Downgrade Notice" has the meaning specified in Section 2.14(a).

          "Effective Date" means the first date on which the conditions set
     forth in Article III shall have been satisfied.

          "Eligible Assignee" means (i) a Bank, (ii) an Affiliate of a Bank, or
     (iii) a commercial bank, a savings bank or other financial institution that
     is approved by the Administrative Agent

                                      -7-
<PAGE>

     and the Issuing Bank and, unless an Event of a Default has occurred and is
     continuing at the time any assignment is effected pursuant to Section 9.07,
     the Parent (such approval of the Parent not to be unreasonably withheld or
     delayed); provided, however, that neither any Loan Party nor any Affiliate
     of a Loan Party shall qualify as an Eligible Assignee under this
     definition.

          "Environmental Action" means any action, suit, demand, demand letter,
     claim, notice of non-compliance or violation, notice of liability or
     potential liability, investigation, proceeding, consent order or consent
     agreement relating in any way to any Environmental Law, any Environmental
     Permit or Hazardous Material or arising from alleged injury or threat to
     health, safety or the environment, including, without limitation, (a) by
     any governmental or regulatory authority for enforcement, cleanup, removal,
     response, remedial or other actions or damages and (b) by any governmental
     or regulatory authority or third party for damages, contribution,
     indemnification, cost recovery, compensation or injunctive relief.

          "Environmental Law" means any Federal, state, local or foreign
     statute, law, ordinance, rule, regulation, code, order, writ, judgment,
     injunction, decree or judicial or agency interpretation, policy or guidance
     relating to pollution or protection of the environment, health, safety or
     natural resources, including, without limitation, those relating to the
     use, handling, transportation, treatment, storage, disposal, release or
     discharge of Hazardous Materials.

          "Environmental Permit" means any permit, approval, identification
     number, license or other authorization required under any Environmental
     Law.

          "Equity Interests" means, with respect to any Person, shares of
     capital stock of (or other ownership or profit interests in) such Person,
     warrants, options or other rights for the purchase or other acquisition
     from such Person of shares of capital stock of (or other ownership or
     profit interests in) such Person, securities convertible into or
     exchangeable for shares of capital stock of (or other ownership or profit
     interests in) such Person or warrants, rights or options for the purchase
     or other acquisition from such Person of such shares (or such other
     interests), and other ownership or profit interests in such Person
     (including, without limitation, partnership, member or trust interests
     therein), whether voting or nonvoting, and whether or not such shares,
     warrants, options, rights or other interests are authorized or otherwise
     existing on any date of determination.

          "Equity Issuance" means one or more issuances by the Parent and/or ACE
     INA of Equity Interests and/or equity-linked securities, the Net Cash
     Proceeds of which shall be at least $500,000,000.

          "ERISA" means the Employee Retirement Income Security Act of 1974, as
     amended from time to time, and the regulations promulgated and rulings
     issued thereunder.

          "ERISA Affiliate" means any Person that for purposes of Title IV of
     ERISA is a member of the controlled group of any Loan Party, or under
     common control with any Loan Party, within the meaning of Section 414 of
     the Internal Revenue Code or Section 4001 of ERISA.

          "Events of Default" has the meaning specified in Section 6.01.

          "Existing Letters of Credit" means the letters of credit issued by the
     Issuing Bank prior to the date hereof listed on Schedule II hereto.

                                      -8-
<PAGE>

          "Expiration Date" shall mean September 6, 2000, as such date may be
     extended in accordance with Section 2.17 hereof.

          "Extension Request" has the meaning specified in Section 2.17.

          "Federal Funds Rate" means, for any period, a fluctuating interest
     rate per annum equal for each day during such period to the weighted
     average of the rates on overnight Federal funds transactions with members
     of the Federal Reserve System arranged by Federal funds brokers, as
     published for such day (or, if such day is not a Business Day, for the next
     preceding Business Day) by the Federal Reserve Bank of New York, or, if
     such rate is not so published for any day that is a Business Day, the
     average of the quotations for such day for such transactions received by
     the Administrative Agent from three Federal funds brokers of recognized
     standing selected by it.

          "Fee Letter" means the fee letter dated on or about the date hereof
     among the Parent and the Issuing Bank, as amended.

          "Fiscal Year" means a fiscal year of the Parent and its Consolidated
     Subsidiaries ending on September 30 in any calendar year.

          "Fleet" has the meaning specified in the recital of parties to this
     Agreement.

          "Foreign Government Scheme or Arrangement" has the meaning specified
     in Section 4.01 (n) (iv).

          "Foreign Plan" has the meaning specified in Section 4.01 (n) (iv).

          "GAAP" has the meaning specified in Section 1.03.

          "Granting Bank" has the meaning specified in Section 9.07(l).

          "Guaranty" means the undertaking by each of the Account Parties under
     Article VII.

          "Hazardous Materials" means (a) petroleum or petroleum products, by-
     products or breakdown products, radioactive materials, asbestos-containing
     materials, polychlorinated biphenyls and radon gas and (b) any other
     chemicals, materials or substances designated, classified or regulated as
     hazardous or toxic or as a pollutant or contaminant under any Environmental
     Law.

          "Hedge Agreements" means interest rate swap, cap or collar agreements,
     interest rate future or option contracts, currency swap agreements,
     currency future or option contracts and other hedging agreements.

          "Indemnified Party" has the meaning specified in Section 9.04(b).

          "Information Memorandum" means the information memorandum dated
     February 1999 which may be used in connection with the syndication of the
     commitments hereunder.

                                      -9-
<PAGE>

          "Initial Banks" has the meaning specified in the recital of parties to
     this Agreement.

          "Initial Extension of Credit" means the agreement of the Issuing Bank
     to maintain the Existing Letters of Credit outstanding as Letters of Credit
     hereunder, which agreement shall be deemed to be an issuance of Letters of
     Credit hereunder.

          "Internal Revenue Code" means the Internal Revenue Code of 1986, as
     amended from time to time, and the regulations promulgated and rulings
     issued thereunder.

          "Investment" in any Person means any loan or advance to such Person,
     any purchase or other acquisition of any Equity Interests or Debt or the
     assets comprising a division or business unit or a substantial part or all
     of the business of such Person, any capital contribution to such Person or
     any other direct or indirect investment in such Person, including, without
     limitation, any acquisition by way of a merger or consolidation and any
     arrangement pursuant to which the investor incurs Debt of the types
     referred to in clause (h) or (i) of the definition of "Debt" in respect of
     such Person; provided, however, that any purchase by any Loan Party or any
     Subsidiary of any catastrophe-linked instruments which are (x) issued for
     the purpose of transferring traditional reinsurance risk to the capital
     markets and (y) purchased by such Loan Party or Subsidiary in accordance
     with its customary reinsurance underwriting procedures, or the entry by any
     Loan Party or any Subsidiary into swap instruments relating to such
     instruments in accordance with such procedures, shall be deemed to be the
     entry by such Person into a reinsurance contract and shall not be deemed to
     be an Investment by such Person.

          "Issuing Bank" means Mellon Bank, N.A. and any "New Issuing Bank"
     appointed in accordance with Section 2.15.

          "Judgment Currency" has the meaning specified in Section 2.16(g).

          "LC Commitment Amount" means, with respect to any Bank at any time,
     the amount set forth opposite such Bank's name on Schedule I hereto under
     the caption "LC Commitment Amount" or, if such Bank has entered into one or
     more Assignment and Acceptances, set forth for such Bank in the Register
     maintained by the Administrative Agent pursuant to Section 9.07(d) as such
     Bank's "LC Commitment Amount", as such amount may be reduced at or prior to
     such time pursuant to Section 2.04.  If the Conversion to Tranche System
     shall have occurred, the LC Commitment Amount of a Bank which is not a
     Commitment Bank will also be reduced, in the event of a reduction of the
     Available Amount under (except, for so long as a drawing is not reimbursed,
     as a result of a drawing under) any Letter of Credit (including upon
     expiration or termination thereof) with respect to which such Bank has a
     funding obligation (or with respect to which such Bank would have had a
     funding obligation if a drawing had occurred prior to such expiration or
     termination), by an amount equal to such reduction.

          "LC Participation Obligations" has the meaning specified in Section
     2.14(a).

          "L/C Related Documents" has the meaning specified in Section
     2.03(a)(ii).

          "L/C Termination Date" has the meaning specified in Section 2.18.

          "Letter of Credit Advance" has the meaning specified in Section
     2.02(f).

                                     -10-
<PAGE>

          "Letter of Credit Agreement" has the meaning specified in Section
     2.02(a).

          "Letter of Credit Business Day" means a Business Day.

          "Letter of Credit Exposure" at any time means the sum at such time of
     (a) the aggregate outstanding amount of Letter of Credit Advances, (b) the
     aggregate Available Amounts of all outstanding Letters of Credit and (c)
     the aggregate Available Amounts of all Letters of Credit which have been
     requested by an Account Party to be issued hereunder but have not yet been
     so issued.

          "Letter of Credit Issuance Commitment Amount" means at any time the
     lesser of (a) $430,000,000 (or such lesser amount as may be agreed in
     writing among the Account Parties, the Administrative Agent and the Issuing
     Bank) and (b) the aggregate amount of the LC Commitment Amounts then in
     effect.

          "Letter of Credit Participating Interest" has the meaning specified in
     Section 2.02(d).

          "Letter of Credit Participating Interest Commitment" has the meaning
     specified in Section 2.02(d).

          "Letter of Credit Participating Interest Percentage" means, for any
     Bank, a fraction, expressed as a percentage, the numerator of which is such
     Bank's LC Commitment Amount and the denominator of which is the aggregate
     LC Commitment Amounts of all the Banks.

          "Letters of Credit" has the meaning specified in Section 2.01.

          "Lien" means any lien, security interest or other charge or
     encumbrance of any kind, or any other type of preferential arrangement,
     including, without limitation, the lien or retained security title of a
     conditional vendor and any easement, right of way or other encumbrance on
     title to real property.

          "Loan Documents" means (i) this Agreement, (ii) the Fee Letter and
     (iii) each Letter of Credit Agreement, in each case as amended.

          "Loan Parties" means the Account Parties.

          "Mandatorily Convertible Preferred Securities" means units comprised
     of Preferred Securities and a contract for the sale of ordinary shares of
     the Parent (including "Feline Prides(TM)" or any substantially similar
     securities).

          "Margin Stock" has the meaning specified in Regulation U.

          "Material Adverse Change" means any material adverse change in the
     business, financial condition, operations or properties of the Parent and
     its Subsidiaries, taken as a whole.

          "Material Adverse Effect" means a material adverse effect on (a) the
     business, condition, operations or properties of the Parent and its
     Subsidiaries, taken as a whole, (b) the rights and remedies of the
     Administrative Agent or any Bank under any Loan Document or (c) the ability
     of the Loan Parties, taken as a whole, to perform their obligations under
     the Loan

                                     -11-
<PAGE>

     Documents.

          "Material Financial Obligation" means a principal amount of Debt
     and/or payment obligations in respect of any Hedge Agreement of the Parent
     and/or one or more of its Subsidiaries arising in one or more related or
     unrelated transactions exceeding in the aggregate $25,000,000.

          "Mellon" means Mellon Bank, N.A.

          "Moody's" means Moody's Investors Service, Inc.

          "Multiemployer Plan" means a multiemployer plan, as defined in Section
     4001(a)(3) of ERISA, to which any Loan Party or any ERISA Affiliate is
     making or accruing an obligation to make contributions, or has within any
     of the preceding five plan years made or accrued an obligation to make
     contributions.

          "Net Cash Proceeds" means, with respect to any sale, lease, transfer
     or other disposition of any asset or the incurrence or issuance of any Debt
     or the sale or issuance of any Equity Interests or Preferred Securities by
     any Person, the aggregate amount of cash received from time to time
     (whether as initial consideration or through payment or disposition of
     deferred consideration) by or on behalf of such Person in connection with
     such transaction after deducting therefrom only (without duplication) (a)
     reasonable and customary brokerage commissions, underwriting fees and
     discounts, legal fees, finder's fees and other similar fees and
     commissions, (b) the amount of taxes payable in connection with or as a
     result of such transaction and (c) the amount of any Debt secured by a Lien
     on such asset that, by the terms of the agreement or instrument governing
     such Debt, is required to be repaid upon such disposition, in each case to
     the extent, but only to the extent, that the amounts so deducted are, at
     the time of receipt of such cash, actually paid to a Person that is not an
     Affiliate of such Person or any Loan Party or any Affiliate of any Loan
     Party and are properly attributable to such transaction or to the asset
     that is the subject thereof; provided, however, that in the case of taxes
     that are deductible under clause (b) above but for the fact that, at the
     time of receipt of such cash, such taxes have not been actually paid or are
     not then payable, such Loan Party or such Subsidiary may deduct an amount
     (the "Reserved Amount") equal to the amount reserved in accordance with
     GAAP for such Loan Party's or such Subsidiary's reasonable estimate of such
     taxes, other than taxes for which such Loan Party or such Subsidiary is
     indemnified; provided further that, at the time such taxes are paid, an
     amount equal to the amount, if any, by which the Reserved Amount for such
     taxes exceeds the amount of such taxes actually paid shall constitute "Net
     Cash Proceeds" of the type for which such taxes were reserved for all
     purposes hereunder; provided further that, prior to the date on which the
     Public Debt Rating of the Parent falls to BBB/Baa2 or below, Net Cash
     Proceeds from the sale, lease, transfer or other disposition of any asset
     or Equity Interests shall not include any amount of cash proceeds received
     in connection with such transaction to the extent such cash proceeds are
     reinvested in the same or related line of business as the business of the
     Parent.

          "Non-Dollar Letters of Credit" has the meaning specified in Section
     2.16(a).

          "OECD" means the Organization for Economic Cooperation and
     Development.

          "Other Taxes" has the meaning specified in Section 2.08(b).

                                     -12-
<PAGE>

          "Overnight Rate" has the meaning specified in Section 2.16(h).

          "Parent" has the meaning specified in the recital of parties to this
     Agreement.

          "PBGC" means the Pension Benefit Guaranty Corporation (or any
     successor).

          "Pension Plan" means a "pension plan", as such term is defined in
     section 3(2) of ERISA, which is subject to title IV of ERISA (other than
     any "multiemployer plan" as such term is defined in section 4001(a)(3) of
     ERISA), and to which any Loan Party or any ERISA Affiliate may have any
     liability, including any liability by reason of having been a substantial
     employer within the meaning of section 4063 of ERISA at any time during the
     preceding five years, or by reason of being deemed to be a contributing
     sponsor under section 4069 of ERISA.

          "Permitted Liens" means such of the following as to which no
     enforcement, collection, execution, levy or foreclosure proceeding shall
     have been commenced or which are being contested in good faith by
     appropriate proceedings:  (a) Liens for taxes, assessments and governmental
     charges or levies not yet due and payable; (b) Liens imposed by law, such
     as materialmen's, mechanics', carriers', workmen's and repairmen's Liens
     and other similar Liens arising in the ordinary course of business securing
     obligations that are not overdue for a period of more than 90 days; (c)
     pledges or deposits to secure obligations under workers' compensation laws
     or similar legislation or to secure public or statutory obligations; and
     (d) easements, rights of way and other encumbrances on title to real
     property that do not render title to the property encumbered thereby
     unmarketable or materially adversely affect the use of such property for
     its present purposes.

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

          "Pre-Commitment Information" means all of the written information in
     the Information Memorandum provided by or on behalf of the Parent to the
     Administrative Agent and the Banks.

          "Preferred Interests" means, with respect to any Person, Equity
     Interests issued by such Person that are entitled to a preference or
     priority over any other Equity Interests issued by such Person upon any
     distribution of such Person's property and assets, whether by dividend or
     upon liquidation.

          "Preferred Securities" means (i) preferred securities issued by the
     Special Purpose Trust which shall provide, among other things, that
     dividends shall be payable only out of proceeds of interest payments on the
     Debentures, or (ii) other instruments that may be treated in whole or in
     part as equity for rating agency purposes while being treated as debt for
     tax purposes.

          "Pro Rata" has the meaning specified in Section 2.18.

          "Pro Rata Share" means, for any Bank, its share determined Pro Rata,
     in accordance with the definition of the term "Pro Rata" in Section 2.18
     hereof.

          "Public Debt Rating" means, as of any date, the lower rating that has
     been most recently

                                     -13-
<PAGE>

     announced by either S&P or Moody's, as the case may be, for any class of
     non-credit enhanced long-term senior unsecured debt issued by the Parent.
     For purposes of the foregoing, (a) if only one of S&P and Moody's shall
     have in effect a Public Debt Rating, the Applicable Margin or the
     Applicable Commitment Fee Percentage, as the case may be, shall be
     determined by reference to the available rating; (b) if neither S&P nor
     Moody's shall have in effect a Public Debt Rating the Applicable Margin and
     the Applicable Commitment Fee Percentage shall be set in accordance with
     the level which is three rating levels below the Parent's S&P financial
     strength rating at such time, provided that, in the event that the Parent's
     S&P financial strength rating is affirmed at (i) A+, the applicable Level
     will be Level 2 and (ii) A+ and on credit watch/review with negative
     implications, the applicable Level will be Level 3; (c) if any rating
     established by S&P or Moody's shall be changed, such change shall be
     effective as of the date on which such change is first announced publicly
     by the rating agency making such change; and (d) if S&P or Moody's shall
     change the basis on which ratings are established, each reference to the
     Public Debt Rating announced by S&P or Moody's, as the case may be, shall
     refer to the then equivalent rating by S&P or Moody's, as the case may be.

          "Purchase Agreement" means the Purchase Agreement dated as of January
     11, 1999 among the Seller, Cigna Holdings, Inc. and the Parent.

          "Redeemable" means, with respect to any Equity Interest, any Debt or
     any other right or obligation, any such Equity Interest, Debt, right or
     obligation that (a) the issuer has undertaken to redeem at a fixed or
     determinable date or dates, whether by operation of a sinking fund or
     otherwise, or upon the occurrence of a condition not solely within the
     control of the issuer or (b) is redeemable at the option of the holder.

          "Register" has the meaning specified in Section 9.07(d).

          "Regulation U" means Regulation U of the Board of Governors of the
     Federal Reserve System, as in effect from time to time.

          "Required Commitment Banks" has the meaning specified in Section 2.18.

          "Required Banks" means, at any time, Banks owed or holding at least a
     majority in interest of the sum of (a) aggregate principal amount of the
     Letter of Credit Advances outstanding at such time and (b) the aggregate
     Available Amount of all Letters of Credit outstanding at such time, or, if
     no such principal amount and no Letters of Credit are outstanding at such
     time, Banks having LC Commitment Amounts constituting at least a majority
     in interest of the aggregate of the LC Commitment Amounts; provided,
     however, that if any Bank shall be a Defaulting Bank at such time, there
     shall be excluded from the determination of Required Banks at such time (A)
     the aggregate principal amount of the interest of such Bank in Letter of
     Credit Advances and outstanding at such time, (B) such Bank's Pro Rata
     Share of the aggregate Available Amount of all Letters of Credit
     outstanding at such time and (C) the Unused LC Commitment Amount of such
     Bank at such time.

          "Responsible Officer" means the Chairman, Chief Executive Officer,
     President, Chief Financial Officer, Treasurer or Chief Investment Officer
     of the Parent.

          "S&P" means Standard & Poor's Ratings Services, a division of The
     McGraw-Hill Companies, Inc.

                                     -14-
<PAGE>

          "Seller" means Cigna Corporation.

          "Solvent" and "Solvency" mean, with respect to any Person on a
     particular date, that on such date (a) the fair value of the property of
     such Person is greater than the total amount of liabilities, including,
     without limitation, contingent liabilities, of such Person, (b) the present
     fair salable value of the assets of such Person is not less than the amount
     that will be required to pay the probable liability of such Person on its
     debts as they become absolute and matured, (c) such Person does not intend
     to, and does not believe that it will, incur debts or liabilities beyond
     such Person's ability to pay such debts and liabilities as they mature and
     (d) such Person is not engaged in business or a transaction, and is not
     about to engage in business or a transaction, for which such Person's
     property would constitute an unreasonably small capital.  The amount of
     contingent liabilities at any time shall be computed as the amount that, in
     the light of all the facts and circumstances existing at such time,
     represents the amount that can reasonably be expected to become an actual
     or matured liability.

          "Special Expiration Date" has the meaning specified in Section 2.18.

          "Special Purpose Trust" means a special purpose business trust
     established by the Parent or ACE INA of which the Parent or ACE INA will
     hold all the common securities, which will be the issuer of the Preferred
     Securities, and which will loan to the Parent or ACE INA (such loan being
     evidenced by the Debentures) the net proceeds of the issuance and sale of
     the Preferred Securities.

          "Subsidiary" of any Person means any corporation, partnership, joint
     venture, limited liability company, trust or estate of which (or in which)
     more than 50% of (a) the issued and outstanding capital stock having
     ordinary voting power to elect a majority of the Board of Directors of such
     corporation (irrespective of whether at the time capital stock of any other
     class or classes of such corporation shall or might have voting power upon
     the occurrence of any contingency), (b) the interest in the capital or
     profits of such partnership, joint venture or limited liability company or
     (c) the beneficial interest in such trust or estate is at the time directly
     or indirectly owned or controlled by such Person, by such Person and one or
     more of its other Subsidiaries or by one or more of such Person's other
     Subsidiaries.

          "Supplement to Tranche System" has the meaning specified in Section
     2.18.

          "Taxes" has the meaning specified in Section 2.08(a).

          "Tempest" has the meaning specified in the recital of parties to this
     Agreement.

          "Total Capitalization" means, at any time, an amount (without
     duplication) equal to (i) the then outstanding Consolidated Debt of the
     Parent and its Subsidiaries plus (ii) Consolidated stockholders equity of
     the Parent and its Subsidiaries plus (without duplication) (iii) the then
     issued and outstanding amount of Preferred Securities and (without
     duplication) Debentures.

          "Tranche 1 Bank" and other defined terms beginning with the word
     "Tranche" have the respective meanings specified in Section 2.18.

          "Unused LC Commitment Amount" means, with respect to any Bank at any
     time,

                                     -15-
<PAGE>

     (a) such Bank's LC Commitment Amount at such time minus (b) such
     Bank's Pro Rata Share of (i) the aggregate Available Amount of all Letters
     of Credit hereunder and (ii) the aggregate principal amount of all Letter
     of Credit Advances made by the Issuing Bank pursuant to Section 2.02(f) and
     outstanding at such time (whether held by the Issuing Bank or the Banks).
     If the Conversion to Tranche System shall have occurred, the Unused LC
     Commitment Amount of any Bank which is not a Commitment Bank shall be zero.

          "Voting Interests" means shares of capital stock issued by a
     corporation, or equivalent Equity Interests in any other Person, the
     holders of which are ordinarily, in the absence of contingencies, entitled
     to vote for the election of directors (or persons performing similar
     functions) of such Person, even if the right so to vote has been suspended
     by the happening of such a contingency.

          "Welfare Plan" means a welfare plan, as defined in Section 3(1) of
     ERISA, that is maintained for employees of any Loan Party or in respect of
     which any Loan Party could have liability.

          "Withdrawal Liability" has the meaning specified in Part I of Subtitle
     E of Title IV of ERISA.

          SECTION 1.02.  Computation of Time Periods; Other Definitional
Provisions.  In this Agreement and the other Loan Documents in the computation
of periods of time from a specified date to a later specified date, the word
"from" means "from and including" and the words "to" and "until" each mean "to
but excluding".  References in the Loan Documents to any agreement or contract
"as amended" shall mean and be a reference to such agreement or contract as
amended, amended and restated, supplemented or otherwise modified from time to
time in accordance with its terms.

          SECTION 1.03.  Accounting Terms and Determinations.  Unless otherwise
specified herein, all accounting terms used herein shall be interpreted, all
accounting determinations hereunder shall be made, and all financial statements
required to be delivered hereunder shall be prepared in accordance with
generally accepted accounting principles as in effect from time to time
("GAAP"), applied on a basis consistent (except for changes concurred in by the
Parent's independent public accountants) with the most recent audited
consolidated financial statements of the Parent and its Subsidiaries delivered
to the Banks; provided that, if the Parent notifies the Administrative Agent
that the Parent wishes to amend any covenant in Article V to eliminate the
effect of any change in generally accepted accounting principles on the
operation of such covenant (or if the Administrative Agent notifies the Parent
that the Required Banks wish to amend Article V for such purpose), then the
Parent's compliance with such covenant shall be determined on the basis of
generally accepted accounting principles in effect immediately before the
relevant change in generally accepted accounting principles became effective
(and, concurrently with the delivery of any financial statements required to be
delivered hereunder, the Parent shall provide a statement of reconciliation
conforming such financial information to such generally accepted accounting
principles as previously in effect), until either such notice is withdrawn or
such covenant is amended in a manner satisfactory to the Parent and the Required
Banks.

                                  ARTICLE II

                             AMOUNTS AND TERMS OF
                             THE LETTERS OF CREDIT

                                     -16-
<PAGE>

          SECTION 2.01.  The Letters of Credit.  The Issuing Bank agrees, on the
terms and subject to the conditions herein set forth, to issue letters of credit
(the "Letters of Credit") for the account of any Account Party on any Letter of
Credit Business Day from time to time during the period from the date hereof to
the Expiration Date, including by agreeing to maintain the Existing Letters of
Credit as Letters of Credit hereunder.  From and after the Initial Extension of
Credit, the Existing Letters of Credit shall be Letters of Credit hereunder.
The Issuing Bank shall have no obligation to issue, and no Account Party will
request the issuance of, any Letter of Credit hereunder if, at the time of
issuance of such Letter of Credit and after giving effect thereto, the Letter of
Credit Exposure would exceed the Issuing Bank's Letter of Credit Issuance
Commitment Amount.  The Issuing Bank shall have no obligation to issue, and no
Account Party shall request the issuance of, any Letter of Credit hereunder if
the Available Amount of such Letter of Credit exceeds, immediately before the
time of such issuance, an amount equal to the total Unused LC Commitment Amounts
of the Banks at such time (as such amount shall be advised by the Administrative
Agent to the Issuing Bank as contemplated by Section 2.02).  The Issuing Bank
shall have no obligation to issue, and no Account Party shall request the
issuance of, any Letter of Credit except within the following limitations:  (i)
each Letter of Credit shall be denominated in U.S. dollars, (ii) each Letter of
Credit shall be payable only against sight drafts (and not time drafts) and
(iii) no Letter of Credit shall have an expiration date (including all rights of
the Applicable Account Party or the beneficiary to require renewal) later than
one year after the date of issuance thereof, but a Letter of Credit may by its
terms be automatically renewable annually unless the Issuing Bank notifies the
beneficiary thereof of its election not to renew such Letter of Credit.  The
Issuing Bank shall have no obligation to issue any letter of credit which is
unsatisfactory in form, substance or beneficiary to the Issuing Bank in the
exercise of its reasonable judgment consistent with its customary practice.

          SECTION 2.02.  Issuance and Renewals and Drawings, Participations and
Reimbursement with Respect to Letters of Credit.  (a)  Request for Issuance.  An
Account Party may from time to time request, upon at least three Letter of
Credit Business Days' written notice (given not later than 11:00 A.M. New York
City time on the last day permitted therefor), the Issuing Bank to issue or
renew (other than any automatic renewal thereof) a Letter of Credit by:

          (i) delivering to the Issuing Bank and the Administrative Agent a
     written request to such effect, specifying the date on which such Letter of
     Credit is to be issued (which shall be a Letter of Credit Business Day),
     the expiration date thereof, the Available Amount thereof, the name and
     address of the beneficiary thereof and the form thereof, and

          (ii) in the case of the issuance of a Letter of Credit, delivering to
     the Issuing Bank a completed agreement and application with respect to such
     Letter of Credit as the Issuing Bank may specify for use in connection with
     such requested Letter of Credit (a "Letter of Credit Agreement"), together
     with such other certificates, documents and other papers as are specified
     in such Letter of Credit Agreement.

The Administrative Agent shall, promptly upon receiving such notice, notify the
Banks of such proposed Letter of Credit (which notice shall specify the
Available Amount and term of such proposed Letter of Credit) or such proposed
renewal of a Letter of Credit (which notice shall specify the term of such
renewal), and shall determine, as of 11:00 A.M. (Pittsburgh time) on the
Business Day immediately preceding such proposed issuance, whether such proposed
Letter of Credit complies with the limitations set forth in Section 2.01 hereof.
If such limitations set forth in Section 2.01 are not satisfied or if the
Required Banks have given notice to the Administrative Agent to cease issuing or
renewing Letters of Credit as contemplated by this Agreement, the Administrative
Agent shall immediately notify the Issuing

                                     -17-
<PAGE>

Bank (in writing or by telephone immediately confirmed in writing) that the
Issuing Bank is not authorized to issue or renew, as the case may be, such
Letter of Credit. If the Issuing Bank issues or renews a Letter of Credit, it
shall deliver the original of such Letter of Credit to the beneficiary thereof
or as the Applicable Account Party shall otherwise direct, and shall promptly
notify the Administrative Agent thereof and furnish a copy thereof to the
Administrative Agent.

          (b) Request for Extension or Increase.  An Account Party may from time
to time request the Issuing Bank to extend the expiration date of an outstanding
Letter of Credit issued for its account or increase (or, with the consent of the
beneficiary, decrease) the Available Amount of or the amount available to be
drawn on such Letter of Credit.  Such extension or increase shall for all
purposes hereunder be treated as though such Account Party had requested
issuance of a replacement Letter of Credit (except only that the Issuing Bank
may, if it elects, issue a notice of extension or increase in lieu of issuing a
new Letter of Credit in substitution for the outstanding Letter of Credit).

          (c) Limitations on Issuance, Extension, Renewal and Amendment.  As
between the Issuing Bank, on the one hand, and the Agents and the Banks, on the
other hand, the Issuing Bank shall be justified and fully protected in issuing
or renewing a proposed Letter of Credit unless it shall have received notice
from the Administrative Agent as provided in Section 2.02(a) hereof that it is
not authorized to do so (and, in the case of automatic renewals, ten days shall
have passed following the date of the Issuing Bank's receipt of such notice),
notwithstanding any subsequent notices to the Issuing Bank, any knowledge of a
Default, any knowledge of failure of any condition specified in Article III
hereof to be satisfied, any other knowledge of the Issuing Bank, or any other
event, condition or circumstance whatsoever.  The Issuing Bank may amend, modify
or supplement Letters of Credit or Letter of Credit Agreements, or waive
compliance with any condition of issuance, renewal or payment, without the
consent of, and without liability to, any Agent or any Bank, provided that any
such amendment, modification or supplement that extends the expiration date or
increases the Available Amount of or the amount available to be drawn on an
outstanding Letter of Credit shall be subject to Section 2.01.

          (d) Letter of Credit Participating Interests.  Concurrently with the
issuance of each Letter of Credit, the Issuing Bank automatically shall be
deemed, irrevocably and unconditionally, to have sold, assigned, transferred and
conveyed to each other Bank, and each other Bank automatically shall be deemed,
irrevocably and unconditionally, severally to have purchased, acquired, accepted
and assumed from the Issuing Bank, without recourse to, or representation or
warranty by, the Issuing Bank, an undivided interest, in a proportion equal to
such Bank's Pro Rata Share, in all of the Issuing Bank's rights and obligations
in, to or under such Letter of Credit, the related Letter of Credit Agreement,
all reimbursement obligations with respect to such Letter of Credit, and all
collateral, guarantees and other rights from time to time directly or indirectly
securing the foregoing (such interest of each Bank being referred to herein as a
"Letter of Credit Participating Interest", it being understood that the Letter
of Credit Participating Interest of the Issuing Bank is the interest not
otherwise attributable to the Letter of Credit Participating Interests of the
other Banks).  Each Bank irrevocably and unconditionally agrees to the
immediately preceding sentence, such agreement being herein referred to as such
Bank's "Letter of Credit Participating Interest Commitment".  Amounts, other
than Letter of Credit Advances made by a Bank other than the Issuing Bank and
other than Letter of Credit commissions under Section 2.05(c)(i), payable from
time to time under or in connection with a Letter of Credit or Letter of Credit
Agreement shall be for the sole account of the Issuing Bank.  On the date that
any assignee becomes a party to this Agreement in accordance with Section 9.07
hereof, Letter of Credit Participating Interests in all outstanding Letters of
Credit held by the Bank from which such assignee acquired its interest hereunder
shall be proportionately reallocated between such assignee and such assignor
Bank (and, to the extent

                                     -18-
<PAGE>

such assignor Bank is the Issuing Bank, the assignee Bank shall be deemed to
have acquired a Letter of Credit Participating Interest from the Issuing Bank to
such extent). Notwithstanding any other provision hereof, each Bank hereby
agrees that its obligation to participate in each Letter of Credit, its
obligation to make the payments specified in Section 2.02(e), and the right of
the Issuing Bank to receive such payments in the manner specified therein, are
each absolute, irrevocable and unconditional and shall not be affected by any
event, condition or circumstance whatever. The failure of any Bank to make any
such payment shall not relieve any other Bank of its funding obligation
hereunder on the date due, but no Bank shall be responsible for the failure of
any other Bank to meet its funding obligations hereunder.

          (e) Payment by Banks on Account of Unreimbursed Draws.  If the Issuing
Bank makes a payment under any Letter of Credit and is not reimbursed in full
therefor on such payment date in accordance with Section 2.03(a), the Issuing
Bank may notify the Administrative Agent thereof (which notice may be by
telephone), and the Administrative Agent shall forthwith notify each Bank (which
notice may be by telephone promptly confirmed in writing) thereof.  No later
than the Administrative Agent's close of business on the date such notice is
given (if notice is given by 2:00 P.M. Pittsburgh time) or 10:00 A.M. Pittsburgh
time the following day (if notice is given after 2:00 P.M. Pittsburgh time or in
the case of any Bank whose Applicable Lending Office is located in Europe), each
Bank will pay to the Administrative Agent, for the account of the Issuing Bank,
in immediately available funds, an amount equal to such Bank's Pro Rata Share of
the unreimbursed portion of such payment by the Issuing Bank.  Amounts received
by the Administrative Agent for the account of the Issuing Bank shall be
forthwith transferred, in immediately available funds, to the Issuing Bank.  If
and to the extent that any Bank fails to make such payment to the Administrative
Agent for the account of the Issuing Bank on such date, such Bank shall pay such
amount on demand, together with interest, for the Issuing Bank's own account,
for each day from and including the date of the Issuing Bank's payment to but
not including the date of repayment to the Issuing Bank (before and after
judgment) at a rate per annum for each day (i) from and including the date of
such payment by the Issuing Bank to and including the second Business Day
thereafter equal to the Federal Funds Rate and (ii) thereafter equal to the Base
Rate.

          (f) Letter of Credit Advances.  The term "Letter of Credit Advance" is
used in this Agreement in accordance with the meanings set forth in this
paragraph 2.02(f).  The making of any payment by the Issuing Bank under a Letter
of Credit is sometimes referred to herein as the making of a Letter of Credit
Advance by the Issuing Bank in the amount of such payment.  The making of any
payment by a Bank for the account of the Issuing Bank under Section 2.02(e) on
account of an unreimbursed drawing on a Letter of Credit is sometimes referred
to herein as the making of a Letter of Credit Advance to the Applicable Account
Party by such Bank.  The making of such a Letter of Credit Advance by a Bank
with respect to an unreimbursed drawing on a Letter of Credit shall reduce, by a
like amount, the outstanding Letter of Credit Advance of the Issuing Bank with
respect to such unreimbursed drawing.

          (g) Letter of Credit Reports.  The Issuing Bank will furnish to the
Administrative Agent prompt written notice of each issuance of a Letter of
Credit (including the Available Amount and expiration date thereof), amendment
to a Letter of Credit, cancellation of a Letter of Credit and payment on a
Letter of Credit.  The Administrative Agent will furnish (A) to each Bank prior
to the tenth Business Day of each month a written report summarizing issuance
and expiration dates of Letters of Credit issued during the preceding month and
payments and reductions in Available Amount during such month on all Letters of
Credit and (B) to each Bank prior to the tenth Business Day of each calendar
quarter a written report setting forth the average daily aggregate Available
Amount during the preceding calendar quarter of all Letters of Credit.

                                     -19-
<PAGE>

          SECTION 2.03  Repayment of Advances.

          (a) Account Party's Reimbursement Obligation.  (i) Each Account Party
hereby agrees to reimburse the Issuing Bank (by making payment to the
Administrative Agent for the account of the Issuing Bank in accordance with
Section 2.07) in the amount of each payment made by the Issuing Bank under any
Letter of Credit issued for such Account Party's account, such reimbursement to
be made on the date such payment under such Letter of Credit is made by the
Issuing Bank (but not earlier than the date which is one Business Day after
notice of such payment under such Letter of Credit or of the drawing giving rise
to such payment under such Letter of Credit is given to such Account Party).
Such reimbursement obligation shall be payable without further notice, protest
or demand, all of which are hereby waived, and an action therefor shall
immediately accrue.  To the extent such payment by such Account Party is not
timely made, such Account Party hereby agrees to pay to the Administrative
Agent, for the respective accounts of the Issuing Bank and the Banks which have
funded their respective shares of such amount remaining unpaid by such Account
Party, on demand, interest thereon at a rate per annum for each day equal to 2%
plus the Base Rate in effect on such day.

          (ii) The obligation of each Account Party to reimburse the Issuing
     Bank for any payment made by the Issuing Bank under any Letter of Credit,
     and the obligation of each Bank under Section 2.02(e) with respect thereto,
     shall be unconditional and irrevocable, and shall be paid strictly in
     accordance with the terms of this Agreement, the applicable Letter of
     Credit Agreement and any other applicable agreement or instrument under all
     circumstances, including, without limitation, the following circumstances:

          (A) any lack of validity or enforceability of any Loan Document, any
     Letter of Credit Agreement, any Letter of Credit or any other agreement or
     instrument relating thereto (all of the foregoing being, collectively, the
     "L/C Related Documents");

          (B) any change in the time, manner or place of payment of, or in any
     other term of, all or any of the obligations of any Account Party or any
     other Person in respect of any L/C Related Document or any other amendment
     or waiver of or any consent to departure from all or any of the L/C Related
     Documents;

          (C) the existence of any claim, set-off, defense or other right that
     any Account Party or any other Person may have at any time against any
     beneficiary or any transferee of a Letter of Credit (or any Persons for
     which any such beneficiary or any such transferee may be acting), the
     Issuing Bank or any other Person, whether in connection with the
     transactions contemplated by the L/C Related Documents or any unrelated
     transaction;

          (D) any statement or any other document presented under a Letter of
     Credit proving to be forged, fraudulent, invalid or insufficient in any
     respect or any statement therein being untrue or inaccurate in any respect;

          (E) payment by the Issuing Bank under a Letter of Credit against
     presentation of a draft or certificate that does not strictly comply with
     the terms of such Letter of Credit;

          (F) any exchange, release or non-perfection of any collateral, or any
     release or amendment or waiver of or consent to departure from the Guaranty
     or any other guarantee, for all or any of the obligations of any Account
     Party or any other Person in respect of the L/C Related Documents; or

                                     -20-
<PAGE>

          (G) any other circumstance or happening whatsoever, whether or not
     similar to any of the foregoing, including, without limitation, any other
     circumstance that might otherwise constitute a defense available to, or a
     discharge of, any Account Party or a guarantor.

          (b) Rescission.  If any amount received by the Issuing Bank on account
of any Letter of Credit Advance shall be avoided, rescinded or otherwise
returned or paid over by the Issuing Bank for any reason at any time, whether
before or after the termination of this Agreement (or the Issuing Bank believes
in good faith that such avoidance, rescission, return or payment is required,
whether or not such matter has been adjudicated), each Bank will (except to the
extent a corresponding amount received by such Bank on account of its Letter of
Credit Advance relating to the same payment on a Letter of Credit has been
avoided, rescinded or otherwise returned or paid over by such Bank), promptly
upon notice from the Administrative Agent or the Issuing Bank, pay over to the
Administrative Agent for the account of the Issuing Bank its Pro Rata Share of
such amount, together with its Pro Rata Share of any interest or penalties
payable with respect thereto.

          SECTION 2.04.  Termination or Reduction of the LC Commitment Amounts.
The Parent may, upon at least three Business Days' notice to the Administrative
Agent, terminate in whole or reduce in part the unused portion of the LC
Commitment Amounts; provided, however, that each partial reduction (i) shall be
in an aggregate amount of $10,000,000 or an integral multiple of $1,000,000 in
excess thereof, (ii) shall be made ratably among the Banks in accordance with
their LC Commitment Amounts and (iii) shall automatically reduce the Issuing
Bank's Letter of Credit Issuance Commitment Amount, as contemplated by the
definition of that term.

          SECTION 2.05  Fees.

          (a) Commitment Fee.  The Account Parties jointly and severally agree
to pay to the Administrative Agent for the account of the Banks a commitment
fee, from the Effective Date in the case of each Initial Bank and from the
effective date specified in the Assignment and Acceptance pursuant to which it
became a Bank in the case of each other Bank until the Expiration Date, payable
in arrears quarterly on the last day of each March, June, September and December
and on the Expiration Date, at the rate of the Applicable Commitment Fee
Percentage on the average daily Unused LC Commitment Amount of each Bank during
such quarter (or shorter period); provided, however, that no commitment fee
shall accrue on the LC Commitment Amount of a Defaulting Bank so long as such
Bank shall be a Defaulting Bank.

          (b) Administrative Agent's Fees.  The Account Parties jointly and
severally agree to pay to the Administrative Agent for its own account such fees
as may from time to time be agreed between the Parent and the Administrative
Agent.

          (c) Letter of Credit Fees, Etc.  (i)  The Account Parties jointly and
severally agree to pay to the Administrative Agent for the account of each Bank
a commission, payable in arrears quarterly on the last day of each calendar
quarter commencing September 30, 1999, on the date of the earliest to occur of
the full drawing, expiration, termination or cancellation of any Letter of
Credit, and on the Expiration Date, on such Bank's Pro Rata Share of the average
daily aggregate Available Amount during such quarter (or shorter period) of all
Letters of Credit outstanding from time to time at the rate equal to the then
Applicable Margin.

          (ii) Each Account Party agrees that it shall pay to the Issuing Bank,
for its own

                                     -21-
<PAGE>

account, such commissions, issuance fees, fronting fees, transfer fees and other
fees and charges in connection with the issuance or administration of each
Letter of Credit as such Account Party and the Issuing Bank shall agree in the
Fee Letter.

          SECTION 2.06.  Increased Costs, Etc.  (a)  If, due to either (i) the
introduction of or any change in or in the interpretation of, in each case after
the date hereof, any law or regulation or (ii) the compliance with any guideline
or request issued after the date hereof from any central bank or other
governmental authority (whether or not having the force of law), there shall be
any increase in the cost to any Bank of agreeing to issue or of issuing or
maintaining or participating in Letters of Credit (excluding, for purposes of
this Section 2.06, any such increased costs resulting from (x) Taxes or Other
Taxes (as to which Section 2.08 shall govern) and (y) changes in the basis of
taxation of overall net income or overall gross income by the United States or
by the foreign jurisdiction or state under the laws of which such Bank is
organized or has its Applicable Lending Office or any political subdivision
thereof), then the Account Parties jointly and severally agree to pay, from time
to time, within five days after demand by such Bank (with a copy of such demand
to the Administrative Agent), which demand shall include a statement of the
basis for such demand and a calculation in reasonable detail of the amount
demanded, to the Administrative Agent for the account of such Bank additional
amounts sufficient to compensate such Bank for such increased cost.  A
certificate as to the amount of such increased cost, submitted to the Account
Parties by such Bank, shall be conclusive and binding for all purposes, absent
manifest error.

          (b) If, due to either (i) the introduction of or any change in or in
the interpretation of any law or regulation, in each case after the date hereof,
or (ii) the compliance with any guideline or request issued after the date
hereof from any central bank or other governmental authority (whether or not
having the force of law), there shall be any increase in the amount of capital
required or expected to be maintained by any Bank or any corporation controlling
such Bank as a result of or based upon the existence of such Bank's commitment
to lend hereunder and other commitments of such type, then, within five days
after demand by such Bank or such corporation (with a copy of such demand to the
Administrative Agent), which demand shall include a statement of the basis for
such demand and a calculation in reasonable detail of the amount demanded, the
Account Parties jointly and severally agree to pay to the Administrative Agent
for the account of such Bank, from time to time as specified by such Bank,
additional amounts sufficient to compensate such Bank in the light of such
circumstances, to the extent that such Bank reasonably determines such increase
in capital to be allocable to the existence of such Bank's commitment to issue
or participate in Letters of Credit hereunder or to the issuance or maintenance
of or participation in any Letters of Credit.  A certificate as to such amounts
submitted to the Account Parties by such Bank shall be conclusive and binding
for all purposes, absent manifest error.

          (c) Each Bank shall promptly notify the Account Parties and the
Administrative Agent of any event of which it has actual knowledge which will
result in, and will use reasonable commercial efforts available to it (and not,
in such Bank's good faith judgment, otherwise disadvantageous to such Bank) to
mitigate or avoid  any obligation by the Account Parties to pay any amount
pursuant to subsection (a) or (b) above or pursuant to Section 2.08 (and, if any
Bank has given notice of any such event and thereafter such event ceases to
exist, such Bank shall promptly so notify the Account Parties and the
Administrative Agent).  Without limiting the foregoing, each Bank will designate
a different Applicable Lending Office if such designation will avoid (or reduce
the cost to the Account Parties of) any event described in the preceding
sentence and such designation will not, in such Bank's good faith judgment, be
otherwise disadvantageous to such Bank.

          (d) Notwithstanding the provisions of subsections (a) and (b) above or
Section 2.08

                                     -22-
<PAGE>

(and without limiting subsection (c) above), if any Bank fails to notify the
Account Parties of any event or circumstance that will entitle such Bank to
compensation pursuant subsection (a) or (b) above or Section 2.08 within 120
days after such Bank obtains actual knowledge of such event or circumstance,
then such Bank shall not be entitled to compensation from the Account Parties
for any amount arising prior to the date which is 120 days before the date on
which such Bank notifies the Account Parties of such event or circumstance. For
avoidance of doubt, it is noted that the term "Bank" as used in this Section
2.06 and in other Sections of this Agreement includes the Issuing Bank in its
capacity as such.

          SECTION 2.07.  Payments and Computations.  (a)  The Account Parties
shall make each payment hereunder irrespective of any right of counterclaim or
set-off (except as otherwise provided in Section 2.11), not later than 11:00
A.M. (Pittsburgh time) on the day when due in U.S. dollars to the Administrative
Agent at the Administrative Agent's Account in same day funds, with payments
being received by the Administrative Agent after such time being deemed to have
been received on the next succeeding Business Day.  The Administrative Agent
will promptly thereafter cause like funds to be distributed (i) if such payment
by such Account Party is in respect of principal, interest, commitment fees or
any other amount then payable hereunder to more than one Bank, to such Banks for
the account of their respective Applicable Lending Offices ratably in accordance
with the amounts of such respective amount then payable to such Banks and (ii)
if such payment by such Account Party is in respect of any amount then payable
hereunder to one Bank, to such Bank for the account of its Applicable Lending
Office, in each case to be applied in accordance with the terms of this
Agreement.  Upon its acceptance of an Assignment and Acceptance and recording of
the information contained therein in the Register pursuant to Section 9.07(d),
from and after the effective date of such Assignment and Acceptance, the
Administrative Agent shall make all payments hereunder in respect of the
interest assigned thereby to the Bank assignee thereunder, and the parties to
such Assignment and Acceptance shall make all appropriate adjustments in such
payments for periods prior to such effective date directly between themselves.

          (b) Each Account Party hereby authorizes each Bank, if an Event of
Default under Section 6.01(a) has occurred and is continuing, to charge from
time to time against any or all of such Account Party's accounts with such Bank
any amount that resulted in such Event of Default.

          (c) All computations of interest on Letter of Credit Advances (and any
other amount payable by reference to the Base Rate) when the Base Rate is
determined by reference to Mellon's prime rate shall be made by the
Administrative Agent on the basis of a year of 365 or, if applicable, 366 days;
all other computations of interest, fees and Letter of Credit commissions shall
be made by the Administrative Agent on the basis of a year of 360 days.  All
such computations shall be made for the actual number of days (including the
first day but excluding the last day) occurring in the period for which such
interest, fees or commissions are payable.  Each determination by the
Administrative Agent of an interest rate, fee or commission hereunder shall be
conclusive and binding for all purposes, absent manifest error.

          (d) Whenever any payment hereunder shall be stated to be due on a day
other than a Business Day, such payment shall be made on the next succeeding
Business Day, and such extension of time shall in such case be included in the
computation of payment of interest or fee, as the case may be.

          SECTION 2.08.  Taxes. (a)  Any and all payments by any Loan Party
hereunder shall be made, in accordance with Section 2.07, free and clear of and
without deduction for any and all present or future taxes, levies, imposts,
deductions, charges or withholdings, and all liabilities with respect thereto,
excluding, in the case of each Bank and each Agent, taxes that are imposed on
its overall net income by the United States and taxes that are imposed on its
overall net income (and franchise taxes imposed in

                                     -23-
<PAGE>

lieu thereof) by the state or foreign jurisdiction under the laws of which such
Bank or such Agent, as the case may be, is organized or any political
subdivision thereof and, in the case of each Bank, taxes that are imposed on its
overall net income (and franchise taxes imposed in lieu thereof) by the state or
foreign jurisdiction of such Bank's Applicable Lending Office or any political
subdivision thereof (all such non-excluded taxes, levies, imposts, deductions,
charges, withholdings and liabilities in respect of payments hereunder being
herein referred to as "Taxes"). If any Loan Party shall be required by law to
deduct any Taxes from or in respect of any sum payable hereunder or to any Bank
or any Agent, (i) the sum payable by such Loan Party shall be increased as may
be necessary so that after such Loan Party and the Administrative Agent have
made all required deductions (including deductions applicable to additional sums
payable under this Section 2.08) such Bank or such Agent, as the case may be,
receives an amount equal to the sum it would have received had no such
deductions been made, (ii) such Loan Party shall make all such deductions and
(iii) such Loan Party shall pay the full amount deducted to the relevant
taxation authority or other authority in accordance with applicable law.

          (b) In addition, each Loan Party shall pay any present or future
stamp, documentary, excise, property or similar taxes, charges or levies that
arise from any payment made hereunder or from the execution, delivery or
registration of, performance under, or otherwise with respect to, this Agreement
or any other Loan Document (herein referred to as "Other Taxes").

          (c) Each Loan Party shall indemnify each Bank and each Agent for and
hold them harmless against the full amount of Taxes and Other Taxes, and for the
full amount of taxes of any kind imposed by any jurisdiction on amounts payable
under this Section 2.08, imposed on or paid by such Bank or such Agent (as the
case may be) and any liability (including penalties, additions to tax, interest
and expenses) arising therefrom or with respect thereto.  This indemnification
payment shall be made within 30 days from the date such Bank or such Agent (as
the case may be) makes written demand therefor.

          (d) Within 30 days after the date of any payment of Taxes, each Loan
Party shall furnish to the Administrative Agent, at its address referred to in
Section 9.02, the original or a certified copy of a receipt evidencing such
payment.  In the case of any payment hereunder by or on behalf of a Loan Party
through an account or branch outside the United States or by or on behalf of a
Loan Party by a payor that is not a United States person, if such Loan Party
determines that no Taxes are payable in respect thereof, such Loan Party shall
furnish, or shall cause such payor to furnish, to the Administrative Agent, at
such address, an opinion of counsel acceptable to the Administrative Agent
stating that such payment is exempt from Taxes.  For purposes of subsections (d)
and (e) of this Section 2.08, the terms "United States" and "United States
person" shall have the meanings specified in Section 7701(a)(9) and 7701(a)(10)
of the Internal Revenue Code, respectively.

          (e) Each Bank organized under the laws of a jurisdiction outside the
United States shall, on or prior to the date of its execution and delivery of
this Agreement in the case of each Initial Bank or the Issuing Bank, as the case
may be, and on the date of the Assignment and Acceptance pursuant to which it
becomes a Bank in the case of each other Bank, and from time to time thereafter
as requested in writing by the Parent (but only so long thereafter as such Bank
remains lawfully able to do so), provide each of the Administrative Agent and
the Parent with two original Internal Revenue Service forms W-8BEN (or if
delivered on or before December 31, 1999, form 1001) or W-8ECI (or if delivered
on or before December 31, 1999, form 4224) or (in the case of a Bank that has
certified in writing to the Administrative Agent that it is not a "bank" as
defined in Section 881(c)(3)(A) of the Internal Revenue Code) form W-8 (and, if
such Bank delivers a form W-8, a certificate representing that such Bank is not
a "bank" for purposes of Section 881(c)(3)(A) of the Internal Revenue Code, is
not a 10-percent

                                     -24-
<PAGE>

shareholder (within the meaning of Section 871(h)(3)(B) of the Internal Revenue
Code) of the Parent and is not a controlled foreign corporation related to the
Parent (within the meaning of Section 864(d)(4) of the Internal Revenue Code)),
as appropriate, or any successor or other form prescribed by the Internal
Revenue Service, certifying that such Bank is exempt from or entitled to a
reduced rate of United States withholding tax on payments pursuant to this
Agreement or, in the case of a Bank providing a form W-8, certifying that such
Bank is a foreign corporation, partnership, estate or trust. If the forms
provided by a Bank at the time such Bank first becomes a party to this Agreement
indicate a United States interest withholding tax rate in excess of zero,
withholding tax at such rate shall be considered excluded from Taxes unless and
until such Bank provides the appropriate forms certifying that a lesser rate
applies, whereupon withholding tax at such lesser rate only shall be considered
excluded from Taxes for periods governed by such forms; provided, however, that
if, at the effective date of the Assignment and Acceptance pursuant to which a
Bank becomes a party to this Agreement, the Bank assignor was entitled to
payments under subsection (a) of this Section 2.08 in respect of United States
withholding tax with respect to interest paid at such date, then, to such
extent, the term Taxes shall include (in addition to withholding taxes that may
be imposed in the future or other amounts otherwise includable in Taxes) United
States withholding tax, if any, applicable with respect to the Bank assignee on
such date. If any form or document referred to in this subsection (e) requires
the disclosure of information, other than information necessary to compute the
tax payable and information required on the date hereof by Internal Revenue
Service form W-8BEN, 1001, W-8ECI, 4224 or W-8 (and the related certificate
described above), that the Bank reasonably considers to be confidential, the
Bank shall give notice thereof to the Parent and shall not be obligated to
include in such form or document such confidential information.

          (f) For any period with respect to which a Bank which may lawfully do
so has failed to provide the Parent with the appropriate form described in
subsection (e) above (other than if such failure is due to a change in law
occurring after the date on which a form originally was required to be provided
or if such form otherwise is not required under subsection (e) above), such Bank
shall not be entitled to indemnification under subsection (a) or (c) of this
Section 2.08 with respect to Taxes imposed by the United States by reason of
such failure; provided, however, that should a Bank become subject to Taxes
because of its failure to deliver a form required hereunder, the Parent shall
take such steps as such Bank shall reasonably request to assist such Bank to
recover such Taxes.

          (g) Each Bank represents and warrants to the Account Parties that, as
of the date such Bank becomes a party to this Agreement, such Bank is entitled
to receive payments hereunder from the Account Parties without deduction or
withholding for or on account of any Taxes.

          SECTION 2.09.  Sharing of Payments, Etc.  If any Bank shall obtain at
any time any payment (whether voluntary, involuntary, through the exercise of
any right of set-off, or otherwise, other than as a result of an assignment
pursuant to Section 9.07) (a) on account of obligations due and payable to such
Bank hereunder at such time in excess of its ratable share (according to the
proportion of (i) the amount of such obligations due and payable to such Bank at
such time to (ii) the aggregate amount of the obligations due and payable to all
Banks hereunder at such time) of payments on account of the obligations due and
payable to all Banks hereunder at such time obtained by all the Banks at such
time or (b) on account of obligations owing (but not due and payable) to such
Bank hereunder at such time in excess of its ratable share (according to the
proportion of (i) the amount of such obligations owing to such Bank at such time
to (ii) the aggregate amount of the obligations owing (but not due and payable)
to all Banks hereunder at such time) of payments on account of the obligations
owing (but not due and payable) to all Banks hereunder at such time obtained by
all of the Banks at such time, such Bank shall forthwith purchase from the other
Banks such interests or participating interests in the obligations due and
payable or owing to them, as the case may be, as shall be necessary to cause
such purchasing Bank to

                                     -25-
<PAGE>

share the excess payment ratably with each of them; provided, however, that if
all or any portion of such excess payment is thereafter recovered from such
purchasing Bank, such purchase from each other Bank shall be rescinded and such
other Bank shall repay to the purchasing Bank the purchase price to the extent
of such Bank's ratable share (according to the proportion of (i) the purchase
price paid to such Bank to (ii) the aggregate purchase price paid to all Banks)
of such recovery together with an amount equal to such Bank's ratable share
(according to the proportion of (i) the amount of such other Bank's required
repayment to (ii) the total amount so recovered from the purchasing Bank) of any
interest or other amount paid or payable by the purchasing Bank in respect of
the total amount so recovered. Each Account Party agrees that any Bank so
purchasing an interest or participating interest from another Bank pursuant to
this Section 2.09 may, to the fullest extent permitted by law, exercise all its
rights of payment (including the right of set-off) with respect to such interest
or participating interest, as the case may be, as fully as if such Bank were the
direct creditor of such Account Party in the amount of such interest or
participating interest, as the case may be.

          SECTION 2.10.  Use of Letters of Credit.  The Letters of Credit shall
be used for the general corporate purposes of the Account Parties and their
respective Subsidiaries.

          SECTION 2.11.  Defaulting Banks.  (a)  In the event that, at any one
time, (i) any Bank shall be a Defaulting Bank, (ii) such Defaulting Bank shall
owe a Defaulted Amount to any Agent or any of the other Banks and (iii) any
Account Party shall make any payment hereunder or under any other Loan Document
to the Administrative Agent for the account of such Defaulting Bank, then the
Administrative Agent may, on its behalf or on behalf of such other Banks and to
the fullest extent permitted by applicable law, apply at such time the amount so
paid by such Account Party to or for the account of such Defaulting Bank to the
payment of each such Defaulted Amount to the extent required to pay such
Defaulted Amount.  In the event that the Administrative Agent shall so apply any
such amount to the payment of any such Defaulted Amount on any date, the amount
so applied by the Administrative Agent shall constitute for all purposes of this
Agreement and the other Loan Documents payment, to such extent, of such
Defaulted Amount on such date.  Any such amount so applied by the Administrative
Agent shall be retained by the Administrative Agent or distributed by the
Administrative Agent to such other Banks, ratably in accordance with the
respective portions of such Defaulted Amounts payable at such time to the
Administrative Agent and such other Banks and, if the amount of such payment
made by such Account Party shall at such time be insufficient to pay all
Defaulted Amounts owing at such time to the Administrative Agent, such other
Agents and such other Banks, in the following order of priority:

          (i) first, to the Agents for any Defaulted Amounts then owing to the
     Agents;

          (ii) second, to the Issuing Bank for any amount then due and payable
     to it, in its capacity as such, by such Defaulting Bank, ratably in
     accordance with such amounts then due and payable to the Issuing Bank; and

          (iii)  third, to any other Banks for any Defaulted Amounts then owing
     to such other Banks, ratably in accordance with such respective Defaulted
     Amounts then owing to such other Banks.

Any portion of such amount paid by such Account Party for the account of such
Defaulting Bank remaining, after giving effect to the amount applied by the
Administrative Agent pursuant to this subsection (b), shall be applied by the
Administrative Agent as specified in subsection (c) of this Section 2.11.

                                     -26-
<PAGE>

          (b) In the event that, at any one time, (i) any Bank shall be a
Defaulting Bank, (ii) such Defaulting Bank shall not owe a Defaulted Amount and
(iii) any Account Party, any Agent or other Bank shall be required to pay or
distribute any amount hereunder or under any other Loan Document to or for the
account of such Defaulting Bank, then such Account Party or such Agent or such
other Bank shall pay such amount to the Administrative Agent to be held by the
Administrative Agent, to the fullest extent permitted by applicable law, in
escrow or the Administrative Agent shall, to the fullest extent permitted by
applicable law, hold in escrow such amount otherwise held by it.  Any funds held
by the Administrative Agent in escrow under this subsection (b) shall be
deposited by the Administrative Agent in an account with Mellon in the name and
under the control of the Administrative Agent, but subject to the provisions of
this subsection (b).  The terms applicable to such account, including the rate
of interest payable with respect to the credit balance of such account from time
to time, shall be Mellon's standard terms applicable to escrow accounts
maintained with it.  Any interest credited to such account from time to time
shall be held by the Administrative Agent in escrow under, and applied by the
Administrative Agent from time to time in accordance with the provisions of,
this subsection (b).  The Administrative Agent shall, to the fullest extent
permitted by applicable law, apply all funds so held in escrow from time to time
to the extent necessary to make any Advances required to be made by such
Defaulting Bank and to pay any amount payable by such Defaulting Bank hereunder
and under the other Loan Documents to the Administrative Agent or any other
Bank, as and when such Advances or amounts are required to be made or paid and,
if the amount so held in escrow shall at any time be insufficient to make and
pay all such Advances and amounts required to be made or paid at such time, in
the following order of priority:

          (i) first, to the Agents for any amounts then due and payable by such
     Defaulting Bank to the Agents hereunder;

          (ii) second, to the Issuing Bank for any amount then due and payable
     to it, in its capacity as such, by such Defaulting Bank, ratably in
     accordance with such amounts then due and payable to such Issuing Bank; and

          (iii)  third, to any other Banks for any amount then due and payable
     by such Defaulting Bank to such other Banks hereunder, ratably in
     accordance with such respective amounts then due and payable to such other
     Banks.

In the event that any Bank that is a Defaulting Bank shall, at any time, cease
to be a Defaulting Bank, any funds held by the Administrative Agent in escrow at
such time with respect to such Bank shall be distributed by the Administrative
Agent to such Bank and applied by such Bank to the obligations owing to such
Bank at such time under this Agreement and the other Loan Documents ratably in
accordance with the respective amounts of such obligations outstanding at such
time.

          (c) The rights and remedies against a Defaulting Bank under this
Section 2.11 are in addition to other rights and remedies that any Agent or any
Bank may have against such Defaulting Bank with respect to any Defaulted Amount.

          SECTION 2.12.  Replacement of Affected Bank.  At any time any Bank is
an Affected Bank, the Account Parties may replace such Affected Bank as a party
to this Agreement with one or more other Banks and/or Eligible Assignees, and
upon notice from the Account Parties such Affected Bank shall assign pursuant to
an Assignment and Acceptance, and without recourse or warranty, its LC
Commitment Amount, its Letter of Credit Advances, its obligations to fund Letter
of Credit payments, its participation in, and its rights and obligations with
respect to, Letters of Credit, and all of its other rights

                                     -27-
<PAGE>

and obligations hereunder to such other Banks and/or Eligible Assignees for a
purchase price equal to the sum of the principal amount of the Letter of Credit
Advances so assigned, all accrued and unpaid interest thereon, such Affected
Bank's ratable share of all accrued and unpaid fees payable pursuant to Section
2.05 and all other obligations owed to such Affected Bank hereunder.

          SECTION 2.13.  Certain Provisions Relating to the Issuing Bank and
Letters of Credit.

          (a) Letter of Credit Agreements.  The representations, warranties and
covenants by the Account Parties under, and the rights and remedies of the
Issuing Bank under, any Letter of Credit Agreement relating to any Letter of
Credit are in addition to, and not in limitation or derogation of,
representations, warranties and covenants by the Account Parties under, and
rights and remedies of the Issuing Bank and the Banks under, this Agreement and
applicable law. Each Account Party acknowledges and agrees that all rights of
the Issuing Bank under any Letter of Credit Agreement shall inure to the benefit
of each Bank to the extent of its Letter of Credit Participating Interest
Commitment as fully as if such Bank was a party to such Letter of Credit
Agreement. In the event of any inconsistency between the terms of this Agreement
and any Letter of Credit Agreement, this Agreement shall prevail.

          (b) Certain Provisions.  The Issuing Bank shall have no duties or
responsibilities to any Agent or any Bank except those expressly set forth in
this Agreement, and no implied duties or responsibilities on the part of the
Issuing Bank shall be read into this Agreement or shall otherwise exist.  The
duties and responsibilities of the Issuing Bank to the Banks and the Agents
under this Agreement and the other Loan Documents shall be mechanical and
administrative in nature, and the Issuing Bank shall not have a fiduciary
relationship in respect of any Agent, any Bank or any other Person.  The Issuing
Bank shall not be liable for any action taken or omitted to be taken by it under
or in connection with this Agreement or any Loan Document or Letter of Credit,
except as specifically set forth in Section 9.09.  The Issuing Bank shall not be
under any obligation to ascertain, inquire or give any notice to any Agent or
any Bank relating to (i) the performance or observance of any of the terms or
conditions of this Agreement or any other Loan  Document on the part of any
Account Party, (ii) the business, operations, condition (financial or otherwise)
or prospects of the Account Parties or any other Person, or (iii) the existence
of any Default.  The Issuing Bank shall not be under any obligation, either
initially or on a continuing basis, to provide any Agent or any Bank with any
notices, reports or information of any nature, whether in its possession
presently or hereafter, except for such notices, reports and other information
expressly required by this Agreement to be so furnished.  The Issuing Bank shall
not be responsible for the execution, delivery, effectiveness, enforceability,
genuineness, validity or adequacy of this Agreement or any Loan Document.

          (c) Administration.  The Issuing Bank may rely upon any notice or
other communication of any nature (written or oral, including but not limited to
telephone conversations, whether or not such notice or other communication is
made in a manner permitted or required by this Agreement or any other Loan
Document) purportedly made by or on behalf of the proper party or parties, and
the Issuing Bank shall not have any duty to verify the identity or authority of
any Person giving such notice or other communication.  The Issuing Bank may
consult with legal counsel (including, without limitation, in-house counsel for
the Issuing Bank or in-house or other counsel for the Account Parties),
independent public accountants and any other experts selected by it from time to
time, and the Issuing Bank shall not be liable for any action taken or omitted
to be taken in good faith in accordance with the advice of such counsel,
accountants or experts.  Whenever the Issuing Bank shall deem it necessary or
desirable that a matter be proved or established with respect to any Account
Party, any Agent or any Bank, such matter may be established by a certificate of
such Account Party, such Agent or such Bank,

                                     -28-
<PAGE>

as the case may be, and the Issuing Bank may conclusively rely upon such
certificate. The Issuing Bank shall not be deemed to have any knowledge or
notice of the occurrence of any Default unless the Issuing Bank has received
notice from a Bank, an Agent or an Account Party referring to this Agreement,
describing such Default, and stating that such notice is a "notice of default".

          (d) Indemnification of Issuing Bank by Banks.  Each Bank hereby agrees
to reimburse and indemnify the Issuing Bank and each of its directors, officers,
employees and agents (to the extent not reimbursed by the Account Parties and
without limitation of the obligations of the Account Parties to do so), in
accordance with its Pro Rata Share, from and against any and all amounts,
losses, liabilities, claims, damages, expenses, obligations, penalties, actions,
judgments, suits, costs or disbursements of any kind or nature (including,
without limitation, the reasonable fees and disbursements of counsel (other than
in-house counsel) for the Issuing Bank or such other Person in connection with
any investigative, administrative or judicial proceeding commenced or
threatened, whether or not the Issuing Bank or such other Person shall be
designated a party thereto) that may at any time be imposed on, incurred by or
asserted against the Issuing Bank, in its capacity as such, or such other
Person, as a result of, or arising out of, or in any way related to or by reason
of, this Agreement, any other Loan Document or any Letter of Credit, any
transaction from time to time contemplated hereby or thereby, or any transaction
financed in whole or in part or directly or indirectly with the proceeds of any
Letter of Credit, provided, that no Bank shall be liable for any portion of such
amounts, losses, liabilities, claims, damages, expenses, obligations, penalties,
actions, judgments, suits, costs or disbursements to the extent resulting from
the gross negligence or willful misconduct of the Issuing Bank or such other
Person, as finally determined by a court of competent jurisdiction.

          (e) Issuing Bank in its Individual Capacity.  With respect to its
commitments and the obligations owing to it, the Issuing Bank shall have the
same rights and powers under this Agreement and each other Loan Document as any
other Bank and may exercise the same as though it were not the Issuing Bank, and
the term "Banks" and like terms shall include the Issuing Bank in its individual
capacity as such.  The Issuing Bank and its affiliates may, without liability to
account to any Person, make loans to, accept deposits from, acquire debt or
equity interests in, act as trustee under indentures of, act as agent under
other credit facilities for, and engage in any other business with, any Account
Party and any stockholder, subsidiary or affiliate of any Account Party, as
though the Issuing Bank were not the Issuing Bank hereunder.

          SECTION 2.14.  Downgrade Event with Respect to a Bank.  (a)  If a
Downgrade Event shall occur with respect to (i) any Downgraded Bank or (ii) any
other Bank and, as a result thereof, such other Bank becomes a Downgraded Bank,
then the Issuing Bank may, by notice to such Downgraded Bank, the Administrative
Agent and the Parent within 45 days after such Downgrade Event (any such notice,
a "Downgrade Notice"), request that the Account Parties use reasonable efforts
to replace such Bank as a party to this Agreement pursuant to Section 2.12.  If
such Bank is not so replaced within 45 days after receipt by the Account Parties
of such Downgrade Notice, then (x) if no Default exists and such Downgraded Bank
has not exercised its right to remain a Bank hereunder pursuant to clause (y)
below, the following shall occur concurrently:

          (A) the Committed Facility shall be reduced by the amount of the LC
     Commitment Amount of such Downgraded Bank,

          (B) the Account Parties shall prepay all amounts owed to such
     Downgraded Bank hereunder or in connection herewith

                                     -29-
<PAGE>

          (C) if, upon the reduction of the Committed Facility under clause (A)
     above and the payment under clause (B) above, the sum of the principal
     amount of all Advances plus the Available Amount of all Letters of Credit
     (valuing the Available Amount of, and Letter of Credit Advances of the
     Issuing Bank in respect of, any Non-Dollar Letter of Credit at the Dollar
     Equivalent thereof as of the time of such calculation) would exceed the
     amount of the Committed Facility, then the Account Parties will immediately
     eliminate such excess by paying Advances and/or causing the Available
     Amount of one or more Letters of Credit to be reduced, and

          (D) upon completion of the events described in clauses (A), (B) and
     (C) above, such Downgraded Bank shall cease to be a party to this
     Agreement;

or (y) if a Default exists or, not later than 30 days after receipt of such
Downgrade Notice, such Downgraded Bank notifies the Account Parties, the Issuing
Bank and the Administrative Agent that such Downgraded Bank elects to provide
(in a manner reasonably satisfactory to the Issuing Bank) cash collateral to the
Issuing Bank for (or if such Downgraded Bank is unable, without regulatory
approval, to provide cash collateral, a letter of credit reasonably satisfactory
to the Issuing Bank covering) its contingent obligations to reimburse the
Issuing Bank for any payment under any Letter of Credit as provided in Section
2.02(e) (its "LC Participation Obligations"), such Downgraded Bank shall be
obligated to (and each Bank agrees that in such circumstances it will) deliver
to the Issuing Bank (I) immediately, cash collateral (or, as aforesaid, a letter
of credit) in an amount equal to its LC Participation Obligations and (II) from
time to time thereafter (so long as it is a Downgraded Bank), cash collateral
(or, as aforesaid, a letter of credit) sufficient to cover any increase in its
LC Participation Obligations as a result of any proposed issuance of or increase
in a Letter of Credit.  Any funds provided by a Downgraded Bank for such purpose
shall be maintained in a segregated deposit account in the name of the Issuing
Bank at the Issuing Bank's principal office in the United States (a "Downgrade
Account").  The funds so deposited in any Downgrade Account shall be used only
in accordance with the following provisions of this Section 2.14.

          (b) If any Downgraded Bank shall be required to fund its participation
in a payment under a Letter of Credit pursuant to Section 2.02(e), then the
Issuing Bank shall apply the funds deposited in the applicable Downgrade Account
by such Downgraded Bank to fund such participation.  The deposit of funds in a
Downgrade Account by any Downgraded Bank shall not constitute a Letter of Credit
Advance (and the Downgraded Bank shall not be entitled to interest on such funds
except as provided in clause (c) below) unless and until (and then only to the
extent that) such funds are used by the Issuing Bank to fund the participation
of such Downgraded Bank pursuant to the first sentence of this clause (b).

          (c) Funds in a Downgrade Account shall be invested in such investments
as may be agreed between the Issuing Bank and the applicable Downgraded Bank,
and the income from such investments shall be distributed to such Downgraded
Bank from time to time (but not less often than monthly) as agreed between the
Issuing Bank and such Downgraded Bank.  The Issuing Bank will (i) from time to
time, upon request by a Downgraded Bank, release to such Downgraded Bank any
amount on deposit in the applicable Downgrade Account in excess of the LC
Participation Obligations of such Downgraded Bank and (ii) upon the earliest to
occur of (A) the  effective date of any replacement of such Downgraded Bank as a
party hereto pursuant to an Assignment and Acceptance, (B) the termination of
such Downgraded Bank's LC Commitment Amount pursuant to clause (a) or (C) the
first Letter of Credit Business Day after receipt by the Issuing Bank of
evidence (reasonably satisfactory to the Issuing Bank)

                                     -30-
<PAGE>

that such Bank is no longer a Downgraded Bank, release to such Bank all amounts
on deposit in the applicable Downgrade Account.

          (d) At any time any Downgraded Bank is required to maintain cash
collateral with the Issuing Bank pursuant to this Section 2.14, the Issuing Bank
shall have no obligation to issue or increase any Letter of Credit unless such
Downgraded Bank has provided sufficient funds as cash collateral to the Issuing
Bank to cover all LC Participation Obligations of such Downgraded Bank
(including in respect of the Letter of Credit to be issued or increased).

          SECTION 2.15.  Downgrade Event or Other Event with Respect to the
Issuing Bank.  At any time that the Issuing Bank is a Downgraded Bank or at such
other times as the Issuing Bank and the Account Parties may agree, the Account
Parties may, upon not less than three Letter of Credit Business Days' notice to
the Issuing Bank (in this Section sometimes referred to as the "Old Issuing
Bank") and the Administrative Agent, designate any Bank (so long as such Bank
has agreed to such designation) as an additional "Issuing Bank" hereunder (in
this Section sometimes referred to as the "New Issuing Bank").  Such notice
shall specify the date (which shall be a Letter of Credit Business Day) on which
the New Issuing Bank is to become an additional "Issuing Bank" hereunder.  From
and after such date, all new Letters of Credit requested to be issued hereunder
shall be issued by the New Issuing Bank.  From and after such date (and until
the first date on which no Letters of Credit issued by the Old Issuing Bank are
outstanding and no reimbursement obligations are owed to the Old Issuing Bank,
on which date the Old Issuing Bank shall cease to be an Issuing Bank hereunder),
references in this Agreement to the "Issuing Bank" shall be deemed to refer (a)
to the Old Issuing Bank, with respect to Letters of Credit issued by it, (b) to
the New Issuing Bank, with respect to Letters of Credit issued or to be issued
by it, and (c) to each of the Old Issuing Bank and the New Issuing Bank, with
respect to other matters.  Notwithstanding the fact that an Old Issuing Bank
shall cease to be an "Issuing Bank" hereunder, all of the exculpatory,
indemnification and similar provisions hereof in favor of the "Issuing Bank"
shall inure to such Old Issuing Bank's benefit as to any actions taken or
omitted by it while it was an "Issuing Bank" under this Agreement.  The Account
Parties agree that after any appointment of a New Issuing Bank hereunder, the
Account Parties shall use reasonable commercial efforts to promptly replace (or
otherwise cause the applicable beneficiary to return to the Old Issuing Bank for
cancellation) each letter of credit issued by the Old Issuing Bank.

          SECTION 2.16.  Non-Dollar Letters of Credit.  (a)  The Account
Parties, the Administrative Agent, the Issuing Bank and the Banks (i) agree that
the Issuing Bank may (in its sole discretion) issue Letters of Credit ("Non-
Dollar Letters of Credit") in currencies other than U.S. dollars and (ii)
further agree as set forth in the following paragraphs of this Section with
respect to such Non-Dollar Letters of Credit.

          (b) The Account Parties agree that their reimbursement obligations
under Section 2.03(a) and any resulting Letter of Credit Advance, in each case
in respect of a drawing under any Non-Dollar Letter of Credit, (i) shall be
payable in Dollars at the Dollar Equivalent of such obligation in the currency
in which such Non-Dollar Letter of Credit was issued (determined on the date of
payment) and (ii) shall bear interest at a rate per annum equal to the Base Rate
plus 2%, for each day from and including the date on which the Applicable
Account Party is to reimburse the Issuing Bank pursuant to Section 2.03(a) to
but excluding the date such obligation is paid in full.

          (c) Each Bank agrees that its obligation to pay the Issuing Bank such
Bank's Pro Rata Share of the unreimbursed portion of any payment by the Issuing
Bank under Section 2.02(e) in respect of a drawing under any Non-Dollar Letter
of Credit shall be payable in Dollars at the Dollar

                                     -31-
<PAGE>

Equivalent of such obligation in the currency in which such Non-Dollar Letter of
Credit was issued (calculated on the date of payment) (and any such amount which
is not paid when due shall bear interest at a rate per annum equal to the
Overnight Rate plus, beginning on the third Business Day after such amount was
due, 2%).

          (d) For purposes of determining whether there is availability for the
Account Parties to request any Advance or to request the issuance or extension
of, or any increase in, any Letter of Credit, the Dollar Equivalent amount of
the Available Amount of each Non-Dollar Letter of Credit shall be calculated as
of the date such Advance is to be made or such Letter of Credit is to be issued,
extended or increased.

          (e) For purposes of determining the letter of credit fee under Section
2.05(c), the Dollar Equivalent amount of the Available Amount of any Non-Dollar
Letter of Credit shall be determined on each of (1) the date of an issuance,
extension or change in the Available Amount of such Non-Dollar Letter of Credit,
(2) the date of any payment by the Issuing Bank in respect of a drawing under
such Non-Dollar Letter of Credit, (3) the last day of each calendar month and
(4) each day on which the LC Commitment Amounts are to be reduced pursuant to
Section 2.04 (it being understood that no requested reduction shall be permitted
to the extent that, after making a calculation pursuant this clause (e), such
reduction would be greater than the unused portion of the LC Commitment
Amounts).

          (f) If, on the last day of any calendar month, the sum of the
principal amount of all Advances plus the Available Amount of all Letters of
Credit (valuing the Available Amount of, and Letter of Credit Advances in
respect of, any Non-Dollar Letter of Credit at the Dollar Equivalent thereof as
of such day) would exceed the amount of the Committed Facility, then the Account
Parties will immediately eliminate such excess by paying Advances and/or causing
the Available Amount of one or more Letters of Credit to be reduced.

          (g) If, for the purposes of obtaining judgment in any court, it is
necessary to convert a sum due in respect of any Non-Dollar Letter of Credit in
one currency into another currency, the rate of exchange used shall be that at
which in accordance with its normal banking procedures the Issuing Bank could
purchase the first currency with such other currency on the Letter of Credit
Business Day preceding that on which final judgment is given.  The obligation of
any Account Party in respect of any such sum due from it to the Issuing Bank or
any Bank hereunder shall, notwithstanding any judgment in a currency (the
"Judgment Currency") other than that in which such sum is denominated in
accordance with the applicable provisions of this Agreement and the applicable
Non-Dollar Letter of Credit (the "Agreement Currency"), be discharged only to
the extent that on the Letter of Credit Business Day following receipt by the
Issuing Bank or such Bank of any sum adjudged to be so due in the Judgment
Currency, the Issuing Bank or such Bank may in accordance with normal banking
procedures purchase the Agreement Currency with the Judgment Currency.  If the
amount of the Agreement Currency so purchased is less than the sum originally
due to the Issuing Bank or such Bank in the Agreement Currency, the Applicable
Account Party agrees, as a separate obligation and notwithstanding any such
judgment, to indemnify the Issuing Bank or such Bank, as applicable, against
such loss.  If the amount of the Agreement Currency so purchased is greater than
the sum originally due to the Issuing Bank or such Bank in such currency, the
Issuing Bank and each Bank agrees to return the amount of any excess to the
Applicable Account Party (or to any other Person who may be entitled thereto
under applicable law).

          (h) For purposes of this Section, "Dollar Equivalent" means, in
relation to an amount denominated in a currency other than U.S. dollars, the
amount of U.S. dollars which could be purchased with such amount by the Issuing
Bank in accordance with its customary procedures (and

                                     -32-
<PAGE>

giving effect to any transaction costs) at the quoted foreign exchange spot rate
of the Issuing Bank at the time of determination; and "Overnight Rate" means,
for any day, the rate of interest per annum at which overnight deposits in the
applicable currency, in an amount approximately equal to the amount with respect
to which such rate is being determined, would be offered for such day by the
Issuing Bank to major banks in the London or other applicable offshore interbank
market. The Overnight Rate for any day which is not a Letter of Credit Business
Day (or on which dealings are not carried on in the applicable offshore
interbank market) shall be the Overnight Rate for the immediately preceding
Letter of Credit Business Day.

          SECTION 2.17.  Extensions of Expiration Date.  The Parent may, at its
option, give the Administrative Agent and the Issuing Bank written notice (an
"Extension Request") at any time not more than ninety days, nor less than sixty
days, prior to the Expiration Date in effect at such time (the "Current
Expiration Date") of the Parent's desire to extend the Expiration Date to a date
which is not later than 364 days after the Current Expiration Date.  The
Administrative Agent shall promptly inform the Banks of such Extension Request.
Each Bank which agrees to such Extension Request shall deliver to the
Administrative Agent its express written consent thereto no later than thirty
days prior to the Current Expiration Date.  No extension shall become effective
unless the express written consent thereto by the Required Commitment Banks and
the Issuing Bank is received by the Administrative Agent on or before the
thirtieth day prior to the Current Expiration Date.  If the Issuing Bank and the
Required Commitment Banks, but not all Commitment Banks, have expressly
consented in writing to such Extension Request by such thirtieth day, then the
Administrative Agent shall so notify the Parent and the Parent may, effective as
of the Current Expiration Date, take one or both of the following actions: (i)
replace (as a party to, and for all purposes of, this Agreement) any Commitment
Bank which has not agreed to such Extension Request (a "Nonextending Bank") with
another commercial lending institution satisfactory to the Issuing Bank (a
"Replacement Bank") by giving notice of the name of such Replacement Bank to the
Administrative Agent and the Issuing Bank not later than five Business Days
prior to the then Current Expiration Date and (ii) elect to implement a
Conversion to Tranche System as contemplated by Section 2.18 hereof (or, if the
Conversion to Tranche System has previously been implemented, elect to implement
a Supplement to Tranche System as contemplated by Section 2.18 hereof).  In the
event that a Nonextending Bank is to be replaced by a Replacement Bank, such
Nonextending Bank shall, upon payment to it of all amounts owing to it on the
date of its replacement, assign all of its interests hereunder to such
Replacement Bank in accordance with the provisions of Section 9.07(c) hereof.
If the Issuing Bank and the Required Commitment Banks shall have consented to
such Extension Request, then, on the Current Expiration Date, the Expiration
Date shall be deemed to have been extended to, and shall be, the date specified
in such Extension Request.  The Administrative Agent shall promptly after any
such extension advise the Banks of any changes in the LC Commitment Amounts and
the Letter of Credit Participating Interest Percentages, as well as any changes
effected by the election of the Conversion to Tranche System or a Supplement to
Tranche System.

          SECTION 2.18.  Tranches.  (a)  Certain Definitions.  As used in this
Agreement the following terms have the meanings ascribed thereto:

               "Commitment Banks" at any time means Banks which have Letter of
          Credit Participating Interest Commitments at such time and "Commitment
          Bank" means any one of them.

               "Conversion to Tranche System" means the election by the Parent,
          at a time when the Parent has made an Extension Request pursuant to
          Section 2.17 hereof and such Extension Request has been consented to
          in writing by the Issuing Bank and the

                                     -33-
<PAGE>

          Required Commitment Banks, but not by all of the Commitment Banks, to
          classify Letters of Credit as Tranche 1 Letters of Credit and Tranche
          2 Letters of Credit, all in accordance with Section 2.18(b) hereof.

               "L/C Termination Date" means, with respect to a Letter of Credit,
          the date which is stated therein to be the last day on which the
          beneficiary thereof may draw thereon.

               "Pro Rata" means: (i) until the first Special Expiration Date,
          from and to the Banks in accordance with their respective Letter of
          Credit Participating Interest Percentages and (ii) thereafter, (x)
          with respect to Tranche 1 Letters of Credit, from and to the Tranche 1
          Banks in accordance with their respective Tranche 1 Letter of Credit
          Participating Interest Percentages, (y) with respect to Tranche 2
          Letters of Credit and Tranche 2 Letter of Credit Participating
          Interest Commitments, from and to the Tranche 2 Banks in accordance
          with their respective Tranche 2 Letter of Credit Participating
          Interest Percentages and (z) with respect to each additional Tranche
          of Letters of Credit (i.e., Tranche 3 Letters of Credit, Tranche 4
          Letters of Credit, and so on), if any, from and to the Banks which
          have Letter of Credit Participating Interest Commitments or Letter of
          Credit Participating Interests, as applicable, with respect to such
          Tranche in accordance with their respective related Letter of Credit
          Participating Interest Percentages.

               "Required Commitment Banks" at any time means Commitment Banks
          which have, in the aggregate, LC Commitment Amounts in excess of 50%
          of the total outstanding LC Commitment Amounts at such time.

               "Special Expiration Date" means the Expiration Date which is in
          effect immediately prior to the occurrence of the event described in
          the following clause (iii) after the occurrence of the events
          described in the following clauses (i) and (ii):  (i) the Parent has
          made an Extension Request pursuant to Section 2.17 hereof,  (ii) such
          Extension Request has been consented to in writing by the Issuing Bank
          and the Required Commitment Banks, but not by all of the Commitment
          Banks, and (iii) the Parent has elected to implement a Conversion to
          Tranche System or a Supplement to Tranche System with respect to such
          Extension Request and Expiration Date.

               "Supplement to Tranche System" means the election by the Parent,
          at a time when the Conversion to Tranche System has been previously
          made and when the Parent has made an Extension Request pursuant to
          Section 2.17 hereof and such Extension Request has been consented to
          in writing by the Issuing Bank and the Required Commitment Banks, but
          not by all of the Commitment Banks, to classify additional Letters of
          Credit as Tranche X Letters of Credit.

               "Tranche 1 Bank" shall mean each Bank which is a Bank immediately
          prior to the first Special Expiration Date.

               "Tranche 1 Letter of Credit" means each Letter of Credit which is
          issued prior to the first Special Expiration Date, but shall not
          include any such Letter of Credit as to which the L/C Termination Date
          has been extended to a date after the L/C Termination Date which was
          in effect on such first Special Expiration Date.

                                     -34-
<PAGE>

               "Tranche 1 Letter of Credit Participating Interest Percentage"
          for each Tranche 1 Bank means such Bank's Letter of Credit
          Participating Interest Percentage immediately prior to the first
          Special Expiration Date.

               "Tranche 2 Bank" shall mean each Bank which has a Tranche 2
          Letter of Credit Participating Interest Commitment.

               "Tranche 2 Letter of Credit" means each Letter of Credit which is
          issued prior to the second Special Expiration Date, but shall not
          include any such Letter of Credit as to which the L/C Termination Date
          has been extended to a date after the L/C Termination Date which was
          in effect on such second Special Expiration Date and shall not include
          any Tranche 1 Letter of Credit (it being understood that a Letter of
          Credit may change from a Tranche 1 Letter of Credit to a Tranche 2
          Letter of Credit as a result of the extension, after the first Special
          Expiration Date, of its L/C Termination Date).

               "Tranche 3 Letter of Credit" and "Tranche 4 Letter of Credit"
          have the meanings set forth in the definition of the term "Tranche X".

               "Tranche X" shall mean Tranche 3 if there are existing Tranche 2
          Letters of Credit but not Tranche 3 Letters of Credit, Tranche 4 if
          there are existing Tranche 3 Letters of Credit but not Tranche 4
          Letters of Credit, and so on in consecutive integral succession.  The
          terms "Tranche X Bank", "Tranche X Letter of Credit Participating
          Interest Commitment", "Tranche X LC Commitment Amount" and "Tranche X
          Letter of Credit Participating Interest Percentage" shall have
          comparable meanings.  The term "Tranche X Letter of Credit" shall have
          a comparable meaning, but such meaning shall be consistent with the
          following:  (i) the term "Tranche 3 Letter of Credit" means each
          Letter of Credit which is issued prior to the third Special Expiration
          Date, but shall not include any such Letter of Credit as to which the
          L/C Termination Date has been extended to a date after the L/C
          Termination Date which was in effect on such third Special Expiration
          Date and shall not include any Tranche 1 Letter or Credit or any
          Tranche 2 Letter of Credit; (ii) the term "Tranche 4 Letter of Credit"
          means each Letter of Credit which is issued prior to the fourth
          Special Expiration Date, but shall not include any such Letter of
          Credit as to which the L/C Termination Date has been extended to a
          date after the L/C Termination Date which was in effect on such fourth
          Special Expiration Date and shall not include any Tranche 1 Letter of
          Credit, any Tranche 2 Letter of Credit or any Tranche 3 Letter of
          Credit; (iii) the terms "Tranche 5 Letter of Credit", "Tranche 6
          Letter of Credit", and so on shall have comparable meanings (it being
          understood that a Letter of Credit can change from one Tranche to
          another as a result of an extension of its L/C Termination Date).

          (b)  Conversion to Tranche System.  If the Parent elects the
Conversion to Tranche System with respect to an Extension Request, the following
shall occur:  (i) the Letter of Credit Participating Interest Commitments of
Banks which, with respect to such Extension Request, are Nonextending Banks
shall terminate as of the Special Expiration Date related to such Extension
Request, but such Nonextending Banks (other than Nonextending Banks which have
been replaced as contemplated by Section 2.17 hereof) shall remain parties to
this Agreement and shall retain all of their respective obligations with respect
to Tranche 1 Letters of Credit and shall retain their respective Letter of
Credit Participating Interests in and with respect to Tranche 1 Letters of
Credit; (ii) from and after the

                                     -35-
<PAGE>

Special Expiration Date related to such Extension Request, the Letter of Credit
Participating Interest Commitment of each Bank which has consented in writing to
such Extension Request shall be a "Tranche 2 Letter of Credit Participating
Interest Commitment" and the LC Commitment Amount of such Bank shall be its
"Tranche 2 LC Commitment Amount" (in addition to being its LC Commitment Amount
applicable to Tranche 1 Letters of Credit); (iii) the "Tranche 2 Letter of
Credit Participating Interest Percentage" for each Tranche 2 Bank shall mean a
fraction, expressed as percentage, the numerator of which is such Tranche 2
Bank's Tranche 2 LC Commitment Amount and the denominator of which is the
aggregate Tranche 2 LC Commitment Amounts of all of the Tranche 2 Banks.

          (c)  Supplement to Tranche System. If the Parent elects a Supplement
to Tranche System with respect to an Extension Request, the following shall
occur:  (i) the Letter of Credit Participating Interest Commitments of Banks
which, with respect to such Extension Request, are Nonextending Banks shall
terminate, but such Nonextending Banks shall remain parties to this Agreement
and shall retain all of their respective obligations with respect to Letters of
Credit under existing Tranches and shall retain their respective Letter of
Credit Participating Interests in and with respect to existing Letters of
Credit; (ii) from and after the Special Expiration Date related to such
Extension Request, the Letter of Credit Participating Interest Commitment of
each Bank which has consented in writing to such Extension Request shall be a
"Tranche X Letter of Credit Participating Interest Commitment" and the LC
Commitment Amount of such Lender shall be its "Tranche X LC Commitment Amount"
(in addition to being its LC Commitment Amount applicable to prior Tranches of
Letters of Credit); (iii) the "Tranche X Letter of Credit Participating Interest
Percentage" for each Tranche X Bank shall mean a fraction, expressed as
percentage, the numerator of which is such Tranche X Bank's Tranche X LC
Commitment Amount and the denominator of which is the aggregate Tranche X LC
Commitment Amounts of all of the Tranche X Banks, all as contemplated by the
definition of the term "Tranche X" contained in paragraph (a) of this Section
2.18.

          SECTION 2.19.  Future Amendment to Provide Collateral.  It is
contemplated that after the Effective Date the Account Parties may (but are not
obligated to) propose to the Issuing Bank, the Agents and the Banks amendments
to this Agreement to provide for collateral (consisting of securities accounts
to which, among other things, security entitlements meeting certain eligibility
requirements are credited) with respect to their reimbursement obligations as to
certain Letters of Credit issued hereunder and for a reduction of the Applicable
Margin hereunder with respect to such Letters of Credit, all as contemplated by
the term sheet distributed to the Banks prior to their execution and delivery of
this Agreement.  The effectiveness of such amendments shall require the written
consent of each Agent, the Issuing Bank and all of the Banks.

                                  ARTICLE III

           CONDITIONS OF LENDING AND ISSUANCES OF LETTERS OF CREDIT

          SECTION 3.01.  Conditions Precedent to Initial Extension of Credit.
The obligation of the Issuing Bank to issue a Letter of Credit on the occasion
of the Initial Extension of Credit hereunder is subject to the satisfaction of
the following conditions precedent before or concurrently with the Initial
Extension of Credit:

          (i) The Administrative Agent shall have received on or before the day
     of the Initial Extension of Credit the following, each dated such day
     (unless otherwise specified), in form and

                                     -36-
<PAGE>

     substance reasonably satisfactory to the Administrative Agent (unless
     otherwise specified) and in sufficient copies for each Bank:

               (A) Certified copies of the resolutions of the Board of Directors
          of each Loan Party approving the transactions contemplated by the Loan
          Documents and each Loan Document to which it is or is to be a party,
          and of all documents evidencing other necessary corporate action and
          governmental and other third party approvals and consents, if any,
          with transactions contemplated by the Loan Documents and each Loan
          Document to which it is or is to be a party.

               (B) A copy of a certificate of the Secretary of State or other
          appropriate official of the jurisdiction of incorporation of each Loan
          Party, dated reasonably near the date of the Initial Extension of
          Credit, certifying as to the good standing (or existence) of such Loan
          Party.

               (C) A certificate of each Loan Party, signed on behalf of such
          Loan Party by its President or a Vice President (or equivalent officer
          if such Loan Party has no Vice President) and its Secretary or any
          Assistant Secretary, dated the date of the Initial Extension of Credit
          (the statements made in which certificate shall be true on and as of
          the date of the Initial Extension of Credit), certifying as to (1) a
          true and correct copy of the constitutional documents of such Loan
          Party as in effect on the date on which the resolutions referred to in
          Section 3.01(a)(i)(A) were adopted and on the date of the Initial
          Extension of Credit, (2) the due incorporation and good standing or
          valid existence of such Loan Party as a corporation organized under
          the laws of the jurisdiction of its incorporation, and the absence of
          any proceeding for the dissolution or liquidation of such Loan Party,
          (3) the truth of the representations and warranties contained in the
          Loan Documents as though made on and as of the date of the Initial
          Extension of Credit and (4) the absence of any event occurring and
          continuing, or resulting from the Initial Extension of Credit, that
          constitutes a Default.

               (D) A certificate of the Secretary or an Assistant Secretary of
          each Loan Party certifying the names and true signatures of the
          officers of such Loan Party authorized to sign each Loan Document to
          which it is or is to be a party and the other documents to be
          delivered hereunder and thereunder.

               (E) A favorable opinion of (1) Maples and Calder, Cayman Islands
          counsel for the Parent, in substantially the form of Exhibit D-1
          hereto and as to such other matters as any Bank through the
          Administrative Agent may reasonably request, (2) Mayer, Brown & Platt,
          New York counsel for the Loan Parties, in substantially the form of
          Exhibit D-2 hereto and as to such other matters as any Bank through
          the Administrative Agent may reasonably request, and (3) Conyers Dill
          & Pearman, Bermuda counsel for ACE Bermuda and Tempest, in
          substantially the form of Exhibit D-3 hereto and as to such other
          matters as any Bank through the Administrative Agent may reasonably
          request.

          (ii) (x) No development or change occurring after January 11, 1999 and
     no information becoming known after such date (except as described in
     information released by the Parent to the public), that results in a
     material change in the planned post-Acquisition corporate

                                     -37-
<PAGE>

     and capitalization structure of the Parent or in the capitalization
     structure of the Parent's subsidiaries contemplated in the Pre-Commitment
     Information and (y) the Banks shall be reasonably satisfied with the
     corporate and legal structure and capitalization of each Loan Party (other
     than the Parent), including the terms and conditions of the constitutional
     documents of each such Person and of each material agreement or instrument
     relating to such structure.

          (iii)  There shall have occurred no material adverse change since
     September 30, 1998 in the business, financial condition, operations or
     properties of (i) CIGNAP&C or (ii) the Parent and its Subsidiaries, taken
     as a whole.

          (iv) There shall exist no action, suit, investigation, litigation or
     proceeding affecting any Loan Party or any of its Subsidiaries pending or
     threatened before any court, governmental agency or arbitrator that (x)
     could be reasonably expected to have a Material Adverse Effect or (y) would
     reasonably be expected to materially adversely affect the legality,
     validity or enforceability of any Loan Document or the other transactions
     contemplated by the Loan Documents.

          (v) The Pre-Commitment Information shall be true and correct in all
     material aspects, and no additional information shall have come to the
     attention of the Administrative Agent or the Banks that is inconsistent in
     any material respect with the Pre-Commitment Information or that could
     reasonably be expected to have a Material Adverse Effect.

          (vi) No development or change occurring after January 11, 1999, and no
     information becoming known after such date, that has had or could
     reasonably be expected to have a Material Adverse Effect.

          (vii)  The Account Parties shall have paid all accrued fees of the
     Administrative Agents and the Banks and all accrued expenses of the
     Administrative Agent (including the accrued fees and expenses of counsel to
     the Administrative Agent and local counsel on behalf of all of the Banks),
     in each case to the extent then due and payable.

          SECTION 3.02.  Conditions Precedent to Each Issuance, Extension or
Increase of a Letter of Credit.  The obligation of the Issuing Bank to issue,
extend or increase a Letter of Credit (including the initial issuance), shall be
subject to the further conditions precedent that on the date of such issuance,
extension or increase (a) the following statements shall be true (and each
request for issuance, extension, or increase, and the acceptance by the Account
Party that requested such issuance, extension or increase shall constitute a
representation and warranty by such Account Party that both on the date of such
notice and on the date of such issuance, extension or increase such statements
are true):

          (i) the representations and warranties contained in each Loan Document
     are correct in all material respects on and as of such date, before and
     after giving effect to such issuance, extension or increase, as though made
     on and as of such date, other than any such representations or warranties
     that, by their terms, refer to a specific date other the date of such
     issuance, extension or increase, in which case as of such specific date;
     and

          (ii) no Default has occurred and is continuing, or would result from
     such issuance, extension or increase;

and (b) the Administrative Agent shall have received such other approvals,
opinions or documents as any

                                     -38-
<PAGE>

Bank or the Issuing Bank through the Administrative Agent may reasonably
request.

          SECTION 3.03.  Determinations Under Section 3.01.  For purposes of
determining compliance with the conditions specified in Section 3.01, each Bank
shall be deemed to have consented to, approved or accepted or to be satisfied
with each document or other matter required thereunder to be consented to or
approved by or acceptable or satisfactory to the Banks unless an officer of the
Administrative Agent responsible for the transactions contemplated by the Loan
Documents shall have received notice from such Bank prior to the Initial
Extension of Credit specifying its objection thereto.

          SECTION 3.04.  Termination of Commitments under Prior Agreement.  Upon
the consummation of the Initial Extension of Credit, the unused LC Commitment
Amounts under and as defined in the Reimbursement Agreement, dated as of July
21, 1999, among the Parent, ACE Bermuda, Tempest, Mellon Bank, N. A. and The
Bank of Bermuda Limited shall be terminated, with the result that the no further
letters of credit will be issued thereunder.

                                  ARTICLE IV

                        REPRESENTATIONS AND WARRANTIES

          SECTION 4.01.  Representations and Warranties of the Account Parties.
Each Account Party represents and warrants as follows:

          (a) Each Loan Party and each of its Subsidiaries (i) is duly organized
     or formed, validly existing and, to the extent such concept applies, in
     good standing under the laws of the jurisdiction of its incorporation or
     formation, (ii) is duly qualified and in good standing as a foreign
     corporation or other entity in each other jurisdiction in which it owns or
     leases property or in which the conduct of its business requires it to so
     qualify or be licensed except where the failure to so qualify or be
     licensed would not be reasonably likely to have a Material Adverse Effect
     and (iii) has all requisite power and authority (including, without
     limitation, all governmental licenses, permits and other approvals) to own
     or lease and operate its properties and to carry on its business as now
     conducted and as proposed to be conducted, except where the failure to have
     any license, permit or other approval would not be reasonably likely to
     have a Material Adverse Effect. All of the outstanding Equity Interests in
     each Account Party (other than the Parent) have been validly issued, are
     fully paid and non-assessable and (except for any Preferred Securities
     issued after the date of this Agreement) are owned, directly or indirectly,
     by the Parent free and clear of all Liens.

          (b) Set forth on Schedule 4.01(b) hereto is a complete and accurate
     list of all Subsidiaries of each Loan Party.

          (c) The execution, delivery and performance by each Loan Party of each
     Loan Document to which it is or is to be a party and the consummation of
     the transactions contemplated by the Loan Documents, are within such Loan
     Party's corporate powers, have been duly authorized by all necessary
     corporate action, and do not (i) contravene such Loan Party's
     constitutional documents, (ii) violate any law, rule, regulation
     (including, without limitation, Regulation X of the Board of Governors of
     the Federal Reserve System), order, writ, judgment, injunction, decree,
     determination or award, (iii) conflict with or result in the breach of, or
     constitute a default under, any contract, loan agreement, indenture,
     mortgage, deed of trust, lease

                                     -39-
<PAGE>

     or other instrument binding on or affecting any Loan Party, any of its
     Subsidiaries or any of their properties or (iv) except for the Liens
     created under the Loan Documents, result in or require the creation or
     imposition of any Lien upon or with respect to any of the properties of any
     Loan Party or any of its Subsidiaries. No Loan Party or any of its
     Subsidiaries is in violation of any such law, rule, regulation, order,
     writ, judgment, injunction, decree, determination or award or in breach of
     any such contract, loan agreement, indenture, mortgage, deed of trust,
     lease or other instrument, the violation or breach of which could be
     reasonably likely to have a Material Adverse Effect.

          (d) No authorization or approval or other action by, and no notice to
     or filing with, any governmental authority or regulatory body or any other
     third party is required for (i) the due execution, delivery, recordation,
     filing or performance by any Loan Party of any Loan Document to which it is
     or is to be a party or the other transactions contemplated by the Loan
     Documents (other than the Acquisition), or (ii) the exercise by the
     Administrative Agent or any Bank of its rights under the Loan Documents,
     except for the authorizations, approvals, actions, notices and filings
     which have been duly obtained, taken, given or made and are in full force
     and effect.

          (e) This Agreement has been, and each other Loan Document when
     delivered hereunder will have been, duly executed and delivered by each
     Loan Party party thereto.  This Agreement is, and each other Loan Document
     when delivered hereunder will be, the legal, valid and binding obligation
     of each Loan Party party thereto, enforceable against such Loan Party in
     accordance with its terms.

          (f) There is no action, suit, investigation, litigation or proceeding
     affecting any Loan Party or any of its Subsidiaries, including any
     Environmental Action, pending or threatened before any court, governmental
     agency or arbitrator that (i) could be reasonably likely to have a Material
     Adverse Effect or (ii) would reasonably be expected to affect the legality,
     validity or enforceability of any Loan Document or the transactions
     contemplated by the Loan Documents.

          (g) The Consolidated balance sheets of the Parent and its Subsidiaries
     as at September 30, 1998, and the related Consolidated statements of income
     and of cash flows of the Parent and its Subsidiaries for the fiscal year
     then ended, accompanied by an unqualified opinion of PricewaterhouseCoopers
     LLP, independent public accountants, and the Consolidated balance sheets of
     the Parent and its Subsidiaries as at March 31, 1999, and the related
     Consolidated statements of income and cash flows of the Parent and its
     Subsidiaries for the three months then ended, duly certified by the Chief
     Financial Officer of the Parent, copies of which have been furnished to
     each Bank, fairly present, subject, in the case of said balance sheet as at
     March 31, 1999, and said statements of income and cash flows for the three
     months then ended, to year-end audit adjustments, the Consolidated
     financial condition of the Parent and its Subsidiaries as at such dates and
     the Consolidated results of operations of the Parent and its Subsidiaries
     for the periods ended on such dates, all in accordance with generally
     accepted accounting principles applied on a consistent basis (subject, in
     the case of the March 31, 1999 balance sheet and statements, to the absence
     of footnotes), and since March  31, 1999, there has been no Material
     Adverse Change.

          (h) The Consolidated forecasted balance sheet, statements of income
     and statements of cash flows of the Parent and its Subsidiaries contained
     in the Information Memorandum were prepared in good faith on the basis of
     the assumptions stated therein, which assumptions were fair in light of the
     conditions existing at the time of delivery of such forecasts, and
     represented,

                                     -40-
<PAGE>

     at the time of delivery, the Parent's best estimate of its future financial
     performance.

          (i) Neither the Information Memorandum nor any other written
     information,  exhibit or report furnished by or on behalf of any Loan Party
     to any Agent or any Bank in connection with the negotiation and syndication
     of the Loan Documents or pursuant to the terms of the Loan Documents
     contained any untrue statement of a material fact or omitted to state a
     material fact necessary to make the statements made therein not misleading
     as at the date it was dated (or if not dated, so delivered).

          (j) None of the Account Parties is engaged in the business of
     extending credit for the purpose of purchasing or carrying Margin Stock,
     and no proceeds of any Advance or drawings under any Letter of Credit will
     be used to purchase or carry any Margin Stock or to extend credit to others
     for the purpose of purchasing or carrying any Margin Stock.

          (k) Neither any Loan Party nor any of its Subsidiaries is an
     "investment company", or an "affiliated person" of, or "promoter" or
     "principal underwriter" for, an "investment company", as such terms are
     defined in the Investment Company Act of 1940, as amended.  Neither the
     making of any Advances, nor the issuance of any Letters of Credit, nor the
     application of the proceeds or repayment thereof by any Account Party, nor
     the consummation of the other transactions contemplated by the Loan
     Documents, will violate any provision of such Act or any rule, regulation
     or order of the Securities and Exchange Commission thereunder.

          (l) Neither any Loan Party nor any of its Subsidiaries is a party to
     any indenture, loan or credit agreement or any lease or other agreement or
     instrument or subject to any charter or corporate restriction that is
     reasonably likely to have a Material Adverse Effect.

          (m) Each Loan Party is, individually and together with its
     Subsidiaries, Solvent.

          (n) Except to the extent that any and all events and conditions under
     clauses (i) through (vi) below of this paragraph (n) in the aggregate are
     not reasonably expected to have a Material Adverse Effect:

               (i) Schedule B (Actuarial Information) to the most recent annual
          report (Form 5500 Series) for each Pension Plan, copies of which have
          been filed with the Internal Revenue Service, is complete and accurate
          and fairly presents the funding status of such Pension Plan, and since
          the date of such Schedule B there has been no material adverse change
          in such funding status.

               (ii) Neither any Loan Party nor any ERISA Affiliate has incurred
          or is reasonably expected to incur any Withdrawal Liability to any
          Multiemployer Plan.

               (iii)  Neither any Loan Party nor any ERISA Affiliate has been
          notified by the sponsor of a Multiemployer Plan that such
          Multiemployer Plan is in reorganization or has been terminated, within
          the meaning of Title IV of ERISA, and no such Multiemployer Plan is
          reasonably expected to be in reorganization or to be terminated,
          within the meaning of Title IV of ERISA.

               (iv) With respect to each scheme or arrangement mandated by a
          government other than the United States (a "Foreign Government Scheme
          or Arrangement") and

                                     -41-
<PAGE>

          with respect to each employee benefit plan that is not subject to
          United States law maintained or contributed to by any Loan Party or
          with respect to which any Subsidiary of any Loan Party may have
          liability under applicable local law (a "Foreign Plan"):

                    (x) Any employer and employee contributions required by law
               or by the terms of any Foreign Government Scheme or Arrangement
               or any Foreign Plan have been made, or, if applicable, accrued,
               in accordance with normal accounting practices.

                    (y) The fair market value of the assets of each funded
               Foreign Plan, the liability of each insurer for any Foreign Plan
               funded through insurance or the book reserve established for any
               Foreign Plan, together with any accrued contributions, is
               sufficient to procure or provide for the accrued benefit
               obligations, as of the date hereof, with respect to all current
               and former participants in such Foreign Plan according to the
               actuarial assumptions and valuations most recently used to
               account for such obligations in accordance with applicable
               generally accepted accounting principles.

                    (z) Each Foreign Plan required to be registered has been
               registered and has been maintained in good standing with
               applicable regulatory authorities.

               (v) To the extent the assets of any Loan Party are or are deemed
          under applicable law to be "plan assets" within the meaning of
          Department of Labor Regulation (S) 2510.3-101, the execution, delivery
          and performance of the Loan Documents and the consummation of the
          transactions contemplated therein will not result in a non-exempt
          prohibited transaction within the meaning of Section 406 of ERISA or
          Section 4975 of the Internal Revenue Code.

               (vi)  During the twelve-consecutive-month period to the date of
          the execution and delivery of this Agreement and prior to the request
          for any Letter of Credit to be issued hereunder, no steps have been
          taken to terminate any Pension Plan, no contribution failure has
          occurred with respect to any Pension Plan sufficient to give rise to a
          lien under section 302(f) of ERISA and no minimum funding waiver has
          been applied for or is in effect with respect to any Pension Plan.  No
          condition exists or event or transaction has occurred or is reasonably
          expected to occur with respect to any Pension Plan which could result
          in any Loan Party or any ERISA Affiliate incurring any material
          liability, fine or penalty.

          (o)  (i)  In the ordinary course of its business, each Account Party
     reviews the effect of Environmental Laws on the operations and properties
     of such Account Party and its Subsidiaries, in the course of which it
     identifies and evaluates associated liabilities and costs (including,
     without limitation, any capital or operating expenditures required for
     clean-up or closure of properties presently or previously owned, any
     capital or operating expenditures required to achieve or maintain
     compliance with environmental protection standards imposed by law or as a
     condition of any license, permit or contract, any related constraints on
     operating activities, including any periodic or permanent shutdown of any
     facility or reduction in the level of or change in the nature of operations
     conducted thereat, and any actual or potential liabilities

                                     -42-
<PAGE>

     to third parties and any related costs and expenses). On the basis of this
     review, each Account Party has reasonably concluded that such associated
     liabilities and costs, including the costs of compliance with Environmental
     Laws, are unlikely to have a Material Adverse Effect.

          (ii) The operations and properties of each Loan Party and each of its
     Subsidiaries comply in all material respects with all applicable
     Environmental Laws and Environmental Permits, except for non-compliances
     which would not, individually or in the aggregate, reasonably be expected
     to have a Material Adverse Effect; Hazardous Materials have not been
     released, discharged or disposed of on any property currently or formerly
     owned or operated by any Loan Party or any of its Subsidiaries that would
     reasonably be expected to have a Material Adverse Effect; and there are no
     Environmental Actions pending or threatened against any Loan Party or its
     Subsidiaries, and no circumstances exist that could be reasonably likely to
     form the basis of any such Environmental Action, which (in either case),
     individually or in the aggregate with all other such pending or threatened
     actions and circumstances would reasonably be expected to have a Material
     Adverse Effect.

          (p) Each Loan Party and each of its Subsidiaries has filed, has caused
     to be filed or has been included in all material federal tax returns and
     all other material tax returns required to be filed and has paid all taxes
     shown thereon to be due, together with applicable interest and penalties,
     except to the extent contested in good faith and by appropriate proceedings
     (in which case adequate reserves have been established therefor in
     accordance with GAAP).

          (q) Each Account Party has (i) initiated a review and assessment of
     all areas within its and each of its Subsidiaries' business and operations
     (including those affected by suppliers, vendors and customers) that could
     be adversely affected by the risk that computer applications used by such
     Account Party or any of its Subsidiaries (or material suppliers, vendors
     and customers other than those affecting customers that may give rise to
     claims under insurance policies issued by any Account Party or a
     Subsidiary) may be unable to recognize and perform properly date-sensitive
     functions involving certain dates prior to and any date after December 31,
     1999 (the "Year 2000 Problem"), (ii) developed a plan and timetable for
     addressing the Year 2000 Problem on a timely basis and (iii) to date,
     implemented that plan substantially in accordance with such timetable.
     Based on the foregoing, each Account Party believes that all computer
     applications of such Account Party and its Subsidiaries that are material
     to its or any of its Subsidiaries' business and operations are reasonably
     expected on a timely basis to be able to perform properly date-sensitive
     functions for all dates before and after January 1, 2000 ("Year 2000
     Compliant"), except to the extent that a failure to do so could not
     reasonably be expected to have a Material Adverse Effect.

                                   ARTICLE V

                       COVENANTS OF THE ACCOUNT PARTIES

          SECTION 5.01.  Affirmative Covenants.  So long as any Advance or any
other obligation of any Loan Party under any Loan Document shall remain unpaid,
any Letter of Credit shall be outstanding or any Bank shall have any Letter of
Credit Participating Interest Commitment or commitment to issue a Letter of
Credit hereunder, each Account Party will:

          (a) Compliance with Laws, Etc.  Comply, and cause each of its
     Subsidiaries to comply, in all material respects, with all applicable laws,
     rules, regulations and orders, such

                                     -43-
<PAGE>

     compliance to include, without limitation, compliance with Environmental
     Laws, Environmental Permits, ERISA and the Racketeer Influenced and Corrupt
     Organizations Chapter of the Organized Crime Control Act of 1970.

          (b) Payment of Taxes, Etc.  Pay and discharge, and cause each of its
     Subsidiaries to pay and discharge, before the same shall become delinquent,
     (i) all material taxes, assessments and governmental charges or levies
     imposed upon it or upon its property and (ii) all lawful material claims
     that, if unpaid, might by law become a Lien upon its property; provided,
     however, that neither any Account Party nor any of its Subsidiaries shall
     be required to pay or discharge any such tax, assessment, charge or claim
     that is being contested in good faith and by proper proceedings and as to
     which appropriate reserves are being maintained.

          (c) Maintenance of Insurance.  Maintain, and cause each of its
     Subsidiaries to maintain, insurance with responsible and reputable
     insurance companies or associations in such amounts and covering such risks
     as is usually carried by companies engaged in similar businesses and owning
     similar properties in the same general areas in which the Parent or such
     Subsidiary operates (it being understood that the foregoing shall not apply
     to maintenance of reinsurance or similar matters which shall be solely
     within the reasonable business judgment of the Parent and its
     Subsidiaries).

          (d) Preservation of Corporate Existence, Etc.  Preserve and maintain,
     and cause each of its Subsidiaries to preserve and maintain, its existence,
     legal structure, legal name, rights (charter and statutory), permits,
     licenses, approvals, privileges and franchises; provided, however, that the
     Parent and its Subsidiaries may consummate any merger or consolidation
     permitted under Section 5.02(c) and provided further that neither the
     Parent nor any of its Subsidiaries shall be required to preserve any right,
     permit, license, approval, privilege or franchise if the Board of Directors
     of the Parent or such Subsidiary shall determine that the preservation
     thereof is no longer desirable in the conduct of the business of the Parent
     or such Subsidiary, as the case may be, and that the loss thereof is not
     disadvantageous in any material respect to the Parent, such Subsidiary or
     the Banks.

          (e) Visitation Rights.  At any reasonable time and from time to time
     upon prior notice, permit the Administrative Agent (upon request made by
     any Agent or any Bank), or any agents or representatives thereof, at the
     expense (so long as no Default has occurred and is continuing) of such
     Agent or such Bank, as the case may be, to examine and make copies of and
     abstracts from the records and books of account of, and visit the
     properties of, the Parent and any of its Subsidiaries, and to discuss the
     affairs, finances and accounts of the Parent and any of its Subsidiaries
     with any of their officers or directors and with, so long as a
     representative of the Parent is present, their independent certified public
     accountants.

          (f) Keeping of Books.  Keep, and cause each of its Subsidiaries to
     keep, proper books of record and account, in which full and correct entries
     shall be made of all financial transactions and the assets and business of
     the Parent and each such Subsidiary sufficient to permit the preparation of
     financial statements in accordance with GAAP.

          (g) Maintenance of Properties, Etc.  Maintain and preserve, and cause
     each of its Subsidiaries to maintain and preserve, all of its properties
     that are used or useful in the conduct of its business in good working
     order and condition, ordinary wear and tear excepted.

                                     -44-
<PAGE>

          (h) Transactions with Affiliates.  Conduct, and cause each of its
     Subsidiaries to conduct, all transactions otherwise permitted under the
     Loan Documents with any of their Affiliates (other than any transaction
     between Loan Parties) on terms that are fair and reasonable and no less
     favorable than it would obtain in a comparable arm's-length transaction
     with a Person not an Affiliate.

          (i) Pari Passu ranking.  Each Account Party  shall procure that its
     obligations under the Loan Documents will rank at least pari passu with all
     its other present and future unsecured and unsubordinated obligations,
     except for obligations which are mandatorily preferred by law applying to
     companies generally.

          SECTION 5.02.  Negative Covenants.  So long as any Advance or any
other obligation of any Loan Party under any Loan Document shall remain unpaid,
any Letter of Credit shall be outstanding or any Bank shall have any Letter of
Credit Participating Interest Commitment or commitment to issue a Letter of
Credit hereunder, each of the Account Parties will not, at any time:

          (a) Liens, Etc.  Create, incur, assume or suffer to exist, or permit
     any of its Subsidiaries to create, incur, assume or suffer to exist, any
     Lien on or with respect to any of its properties of any character
     (including, without limitation, accounts) whether now owned or hereafter
     acquired, or assign or permit any of its Subsidiaries to assign, any
     accounts or other right to receive income, except:

               (i)  Permitted Liens;

               (ii) Liens described on Schedule 5.02(a) hereto and other Liens
          arising in the ordinary course of business of CIGNAP&C;

               (iii)  purchase money Liens upon or in real property or equipment
          acquired or held by the Parent or any of its Subsidiaries in the
          ordinary course of business to secure the purchase price of such
          property or equipment or to secure Debt incurred solely for the
          purpose of financing the acquisition, construction or improvement of
          any such property or equipment to be subject to such Liens, or Liens
          existing on any such property or equipment at the time of acquisition
          or within 180 days following such acquisition (other than any such
          Liens created in contemplation of such acquisition that do not secure
          the purchase price), or extensions, renewals or replacements of any of
          the foregoing for the same or a lesser amount; provided, however, that
          no such Lien shall extend to or cover any property other than the
          property or equipment being acquired, constructed or improved, and no
          such extension, renewal or replacement shall extend to or cover any
          property not theretofore subject to the Lien being extended, renewed
          or replaced;

               (vi) Liens arising in connection with Capitalized Leases;
          provided that no such Lien shall extend to or cover any assets other
          than the assets subject to such Capitalized Leases;

               (v) (A) any Lien existing on any asset of any Person at the time
          such Person becomes a Subsidiary and not created in contemplation of
          such event, (B) any Lien on any asset of any Person existing at the
          time such Person is merged or consolidated with or into the Parent or
          any of it Subsidiaries in accordance with Section 5.02(c) and not

                                     -45-
<PAGE>

          created in contemplation of such event and (C) any Lien existing on
          any asset prior to the acquisition thereof by the Parent or any of its
          Subsidiaries and not created in contemplation of such acquisition;

               (vi)  Liens securing obligations under credit default swap
          transactions determined by reference to, or Contingent Obligations in
          respect of,  Debt issued by the Parent or one of its Subsidiaries;
          such Debt not to exceed an aggregate principal amount of $550,000,000;

               (vii)  Liens arising in the ordinary course of its business which
          (A) do not secure Debt and (B) do not in the aggregate materially
          detract from the value of its assets or materially impair the use
          thereof in the operation of its business;

               (viii)  Liens on cash and Approved Investments securing Hedge
          Agreements arising in the ordinary course of business;

               (ix) other Liens securing Debt or other obligations outstanding
          in an aggregate principal or face amount not to exceed at any time 10%
          of Consolidated Tangible Net Worth;

               (x) Liens consisting of deposits made by the Parent or any
          insurance Subsidiary with any insurance regulatory authority or other
          statutory Liens or Liens or claims imposed or required by applicable
          insurance law or regulation against the assets of the Parent or any
          insurance Subsidiary, in each case in favor of policyholders of the
          Parent or such insurance Subsidiary or an insurance regulatory
          authority and in the ordinary course of the Parent's or such insurance
          Subsidiary's business;

               (xi) Liens on Investments and cash balances of the Parent or any
          insurance Subsidiary (other than capital stock of any Subsidiary)
          securing obligations of the Parent or any insurance Subsidiary in
          respect of (i) letters of credit obtained in the ordinary course of
          business and/or (ii) trust arrangements formed in the ordinary course
          of business for the benefit of cedents to secure reinsurance
          recoverables owed to them by the Parent or any insurance Subsidiary;

               (xii)  the replacement, extension or renewal of any Lien
          permitted by clause (iii) or (vi) above upon or in the same property
          theretofore subject thereto or the replacement, extension or renewal
          (without increase in the amount (other than in respect of fees,
          expenses and premiums, if any) or change in any direct or contingent
          obligor) of the Debt secured thereby;

               (xiii)  Liens securing obligations owed by any Loan Party to any
          other Loan Party or owed by any Subsidiary of the Parent (other than a
          Loan Party) to the Parent or any other Subsidiary;

               (xiv)  Liens incurred in the ordinary course of business in favor
          of financial intermediaries and clearing agents pending clearance of
          payments for investment or in the nature of set-off, banker's lien or
          similar rights as to deposit accounts or other funds; and

                                     -46-
<PAGE>

               (xvi)  judgment or judicial attachment Liens, provided that the
          enforcement of such Liens is effectively stayed.

          (b) Change in Nature of Business.  Make any material change in the
     nature of the business of the Parent and its Subsidiaries, taken as a
     whole, as carried on at the date hereof but assuming that the Acquisition
     had occurred.

          (c) Mergers, Etc.  Merge into or consolidate with any Person or permit
     any Person to merge into it, or permit any of its Subsidiaries to do so,
     except that:

               (i) any Subsidiary of the Parent may merge into or consolidate
          with any other Subsidiary of the Parent, provided that, in the case of
          any such merger or consolidation, the Person formed by such merger or
          consolidation shall be a wholly owned Subsidiary of the Parent,
          provided further that, in the case of any such merger or consolidation
          to which an Account Party is a party, the Person formed by such merger
          or consolidation shall be such Account Party;

               (ii) any Subsidiary of any Account Party may merge into or
          consolidate with any other Person or permit any other Person to merge
          into or consolidate with it; provided that the Person surviving such
          merger shall be a wholly owned Subsidiary of the Account Party;

               (iii)  in connection with any sale or other disposition permitted
          under Section 5.02(d) (other than clause (ii) thereof), any Subsidiary
          of the Parent may merge into or consolidate with any other Person or
          permit any other Person to merge into or consolidate with it; and

               (iv) the Parent or any Account Party may merge into or
          consolidate with any other Person; provided that, in the case of any
          such merger or consolidation, the Person formed by such merger or
          consolidation shall be the Parent or such Account Party, as the case
          may be;

     provided, however, that in each case, immediately after giving effect
     thereto, no event shall occur and be continuing that constitutes a Default.

          (d) Sales, Etc., of Assets.  Sell, lease, transfer or otherwise
     dispose of, or permit any of its Subsidiaries to sell, lease, transfer or
     otherwise dispose of, any assets, or grant any option or other right to
     purchase, lease or otherwise acquire any, assets except:

               (i) sales of inventory in the ordinary course of its business;

               (ii) in a transaction authorized by Section 5.02(c);

               (iii)  sales of Approved Investments in the ordinary course of
          business on a basis consistent with past practices;

               (iv)  sales of assets for fair value;

                                     -47-
<PAGE>

               (v) sales, leases, transfers or other dispositions of any assets
          by the Parent or a Subsidiary to the Parent or another Subsidiary; and

               (vi) so long as no Default shall occur and be continuing, the
          grant of any option or other right to purchase any asset in a
          transaction that would be permitted under the provisions of clauses
          (i) through (iv) above.

          (e) Restricted Payments.  In the case of the Parent, declare or pay
     any dividends, purchase, redeem, retire, defease or otherwise acquire for
     value any of its Equity Interests now or hereafter outstanding, return any
     capital to its stockholders, partners or members (or the equivalent Persons
     thereof) as such, make any distribution of assets, Equity Interests,
     obligations or securities to its stockholders, partners or members (or the
     equivalent Persons thereof) as such or issue or sell any Equity Interests
     or accept any capital contributions, or permit any of its Subsidiaries to
     do any of the foregoing, or permit any of its Subsidiaries to purchase,
     redeem, retire, defease or otherwise acquire for value any Equity Interests
     in the Parent or to issue or sell any Equity Interests therein, except
     that, so long as no Default shall have occurred and be continuing at the
     time of any action described in clause (i) or (ii) below or would result
     therefrom:

               (i) the Parent may (A) declare and pay dividends and
          distributions payable only in common stock of the Parent, (B) issue
          and sell shares of its capital stock, (C) purchase, redeem, retire,
          defease or otherwise acquire for value any of its Equity Interests in
          an aggregate amount during the term of this Agreement not exceeding
          $300,000,000 and (D) declare and pay cash dividends to its
          stockholders,

               (ii) (A) any Loan Party (other than the Parent) may declare and
          pay cash dividends to another Loan Party and (B) any Subsidiary of the
          Parent (other than any Loan Party) may (x) declare and pay cash
          dividends to the Parent or any other wholly owned Subsidiary of the
          Parent of which it is a Subsidiary and (y) accept capital
          contributions from its parent, and

               (iii)  the Special Purpose Trust may issue Preferred Securities
          and pay dividends thereon with the proceeds of payments of interest on
          the Debentures.

          (f) Accounting Changes.  Make or permit, or permit any of its
     Subsidiaries to make or permit, any change in accounting policies or
     reporting practices, except as permitted by GAAP.

          SECTION 5.03.  Reporting Requirements.  So long as any Advance or any
other obligation of any Loan Party under any Loan Document shall remain unpaid,
any Letter of Credit shall be outstanding or any Bank shall have any Letter of
Credit Participating Interest Commitment or commitment to issue a Letter of
Credit hereunder, the Parent will furnish to the Agents and the Banks:

          (a) Default Notice.  As soon as possible and in any event within two
     days after the occurrence of each Default or any event, development or
     occurrence reasonably likely to have a Material Adverse Effect continuing
     on the date of such statement, a statement of the chief financial officer
     of the Parent setting forth details of such Default, event, development or
     occurrence and the action that the Parent or the applicable Subsidiary has
     taken and proposes to take with respect thereto.

                                     -48-
<PAGE>

          (b) Annual Financials.  (i)  As soon as available and in any event
     within 90 days after the end of each Fiscal Year, a copy of the annual
     Consolidated audit report for such year for the Parent and its
     Subsidiaries, including therein a Consolidated balance sheet of the Parent
     and its Subsidiaries as of the end of such Fiscal Year and Consolidated
     statements of income and cash flows of the Parent and its Subsidiaries for
     such Fiscal Year, all reported on in a manner reasonably acceptable to the
     Securities and Exchange Commission in each case and accompanied by an
     opinion of Pricewaterhouse Coopers LLP or other independent public
     accountants of recognized standing reasonably acceptable to the Required
     Banks, together with (i) a certificate of the Chief Financial Officer of
     the Parent stating that no Default has occurred and is continuing, or if a
     Default has occurred and is continuing, a statement as to the nature
     thereof and the action that the Parent has taken a proposes to take with
     respect thereto, and (ii) a schedule in form reasonably satisfactory to the
     Administrative Agent of the computations used by the Parent in determining,
     as of the end of such Fiscal Year, compliance with the covenants contained
     in Section 5.04.

          (ii) As soon as available and in any event within 120 days after the
     end of each Fiscal Year, a copy of the annual Consolidated audit report for
     such year for each Subsidiary Guarantor and its Subsidiaries, including
     therein a Consolidated balance sheet of such Subsidiary Guarantor and its
     Subsidiaries as of the end of such Fiscal Year and a Consolidated statement
     of income and a Consolidated statement of cash flows of such Subsidiary
     Guarantor and its Subsidiaries for such Fiscal Year, in each case
     accompanied by an opinion acceptable to the Required Banks of
     PricewaterhouseCoopers LLP or other independent public accountants of
     recognized standing acceptable to the Required Banks.

          (c) Quarterly Financials.  As soon as available and in any event
     within 45 days after the end of each of the first three quarters of each
     Fiscal Year, Consolidated balance sheets of the Parent and its Subsidiaries
     as of the end of such quarter and Consolidated statements of income and a
     Consolidated statement of cash flows of the Parent and its Subsidiaries for
     the period commencing at the end of the previous fiscal quarter and ending
     with the end of such fiscal quarter and Consolidated statements of income
     and a Consolidated statement of cash flows of the Parent and its
     Subsidiaries for the period commencing at the end of the previous Fiscal
     Year and ending with the end of such quarter, setting forth in each case in
     comparative form the corresponding figures for the corresponding date or
     period of the preceding Fiscal Year, all in reasonable detail and duly
     certified (subject to the absence of footnotes and normal year-end audit
     adjustments) by the Chief Financial Officer of the Parent as having been
     prepared in accordance with GAAP, together with (i) a certificate of said
     officer stating that no Default has occurred and is continuing or, if a
     Default has occurred and is continuing, a statement as to the nature
     thereof and the action that the Parent has taken and proposes to take with
     respect thereto and (ii) a schedule in form reasonably satisfactory to the
     Administrative Agent of the computations used by the Parent in determining
     compliance with the covenants contained in Section 5.04.

          (d) Litigation.  Promptly after the commencement thereof, notice of
     all actions, suits, investigations, litigation and proceedings before any
     court or governmental department, commission, board, bureau, agency or
     instrumentality, domestic or foreign, affecting any Loan Party or any of
     its Subsidiaries of the type described in Section 4.01(f).

          (e) Securities Reports.  Promptly after the sending or filing thereof,
     copies of all

                                     -49-
<PAGE>

     proxy statements, financial statements and reports that the Parent sends to
     its stockholders generally, and copies of all regular, periodic and special
     reports, and all registration statements, that any Loan Party or any of its
     Subsidiaries files with the Securities and Exchange Commission or any
     governmental authority that may be substituted therefor, or with any
     national securities exchange.

          (f) ERISA.  (i)  ERISA Events.  Promptly and in any event within 10
     days after any Loan Party or any ERISA Affiliate institutes any steps to
     terminate any Pension Plan or becomes aware of the institution of any steps
     or any threat by the PBGC to terminate any Pension Plan, or the failure to
     make a required contribution to any Pension Plan if such failure is
     sufficient to give rise to a lien under section 302(f) of ERISA, or the
     taking of any action with respect to a Pension Plan which could result in
     the requirement that any Loan Party or any ERISA Affiliate furnish a bond
     or other security to the PBGC or such Pension Plan, or the occurrence of
     any event with respect to any Pension Plan which could result in any Loan
     Party or any ERISA Affiliate incurring any material liability, fine or
     penalty, or any material increase in the contingent liability of any Loan
     Party or any ERISA Affiliate with respect to any post-retirement Welfare
     Plan benefit, notice thereof and copies of all documentation relating
     thereto.

          (ii) Plan Annual Reports.  Promptly upon request of any Agent or any
     Bank, copies of each Schedule B (Actuarial Information) to the annual
     report (Form 5500 Series) with respect to each Pension Plan.

          (iii)  Multiemployer Plan Notices.  Promptly and in any event within
     15 Business Days after receipt thereof by any Loan Party or any ERISA
     Affiliate from the sponsor of a Multiemployer Plan, copies of each notice
     concerning (A) the imposition of Withdrawal Liability by any such
     Multiemployer Plan, (B) the reorganization or termination, within the
     meaning of Title IV of ERISA, of any such Multiemployer Plan or (C) the
     amount of liability incurred, or that may be incurred, by such Loan Party
     or any ERISA Affiliate in connection with any event described in clause (A)
     or (B); provided, however, that such notice and documentation shall not be
     required to be provided (except at the specific request of any Agent or any
     Bank, in which case such notice and documentation shall be promptly
     provided following such request) if such condition or event is not
     reasonably expected to result in any Loan Party or any ERISA Affiliate
     incurring any material liability, fine, or penalty..

          (g) Year 2000 Compliance.  Promptly after the Parent's discovery or
     determination thereof, notice (in reasonable detail) that any computer
     application that is material to its or any of its Subsidiaries' business
     and operations will not be Year 2000 Compliant (as defined in Section
     4.01(q)), except to the extent that such failure could not reasonably be
     expected to have a Material Adverse Effect.

          (h) Statutory Statements.  As soon as available and in any event
     within 20 days after submission, each statutory statement of the Loan
     Parties (or any of them) in the form submitted to The Insurance Division of
     the Office of Registrar of Companies of Bermuda.

          (i) Regulatory Notices, Etc.  Promptly after any Responsible Officer
     of the Parent obtains knowledge thereof, (i) a copy of any notice from the
     Bermuda Minister of Finance or the Registrar of Companies or any other
     person of the revocation, the suspension or the placing of any restriction
     or condition on the registration as an insurer of any Account Party under
     the Bermuda Insurance Act 1978 (and related regulations) or of the
     institution of any proceeding or

                                     -50-
<PAGE>

     investigation which could result in any such revocation, suspension or
     placing of such a restriction or condition, (ii) copies of any
     correspondence by, to or concerning any Loan Party relating to an
     investigation conducted by the Bermuda Minister of Finance, whether
     pursuant to Section 132 of the Bermuda Companies Act 1981 (and related
     regulations) or otherwise and (iii) a copy of any notice of or requesting
     or otherwise relating to the winding-up or any similar proceeding of or
     with respect to any Loan Party.

          (j) Other Information.  Such other information respecting the
     business, condition (financial or otherwise), operations, performance,
     properties or prospects of any Loan Party or any of its Subsidiaries as the
     Administrative Agent, or any Bank through the Administrative Agent, may
     from time to time reasonably request.

          SECTION 5.04.  Financial Covenants.  So long as any Advance or any
other obligation of any Loan Party under any Loan Document shall remain unpaid,
any Letter of Credit shall be outstanding or any Bank shall have any Letter of
Credit Participating Interest Commitment or commitment to issue a Letter of
Credit hereunder, the Parent will:

          (a) Adjusted Consolidated Debt to Total Capitalization Ratio.
     Maintain at all times a ratio of Adjusted Consolidated Debt to Total
     Capitalization of not more than the lesser of (a) 0.50 to 1 or (b) the
     Specified Ratio.  For purposes of the foregoing, the Specified Ratio shall
     be the greater of 0.35 to 1 or the ratio determined by multiplying 1.25
     times the numerator of the lowest ratio of Adjusted Consolidated Debt to
     Total Capitalization as of the last day of any fiscal quarter of the Parent
     after completion of the Acquisition.

          (b) Tangible Net Worth.  Maintain at all times Consolidated Tangible
     Net Worth in an amount equal to the sum of (i) $1,000,000,000 plus (ii) 25%
     of Consolidated Net Income for each fiscal quarter of the Parent ending on
     and after June 30, 1999 for which such Consolidated Net Income is positive
     plus (iii) 75% (or, after the Equity Issuance (so long as the Net Cash
     Proceeds received by the Parent and its Subsidiaries are at least
     $500,000,000) 50%) of the aggregate amount by which Consolidated Tangible
     Net Worth shall have been increased by reason of the issuance and sale of
     any Equity Interests or Mandatorily Convertible Preferred Securities or,
     without duplication, the conversion or exchange of any Debt of the Parent
     into or with Equity Interests of the Parent.

                                  ARTICLE VI
                               EVENTS OF DEFAULT

          SECTION 6.01.  Events of Default.  If any of the following events
("Events of Default") shall occur and be continuing:

          (a)  (i) any Account Party shall fail to pay any principal of any
     Advance when the same shall become due and payable or (ii) any Account
     Party shall fail to pay any interest on any Advance, or any Loan Party
     shall fail to make any other payment under any Loan Document, in each case
     under this clause (ii) within five Business Days after the same becomes due
     and payable; or

          (b) any representation or warranty made by any Loan Party (or any of
     its officers) under or in connection with any Loan Document shall prove to
     have been incorrect in any

                                     -51-
<PAGE>

     material respect when made; or

          (c) any Account Party shall fail to perform or observe any term,
     covenant or agreement contained in Section 2.10, 5.01(d) (with respect to
     the Parent) or (e), 5.02 or 5.04; or

          (d) any Loan Party shall fail to perform or observe any other term,
     covenant or agreement contained in any Loan Document on its part to be
     performed or observed if such failure shall remain unremedied for 30 days
     after the earlier of the date on which (i) a Responsible Officer becomes
     aware of such failure or (ii) written notice thereof shall have been given
     to such Loan Party by any Agent or any Bank; or

          (e) the Parent or any of its Subsidiaries shall fail to pay any
     Material Financial Obligation (but excluding Debt outstanding hereunder) of
     the Parent or such Subsidiary (as the case may be), when the same becomes
     due and payable (whether by scheduled maturity, required prepayment,
     acceleration, demand or otherwise), and such failure shall continue after
     the applicable grace period, if any, specified in the agreement or
     instrument relating to such Material Financial Obligation; or any other
     event shall occur or condition shall exist under any agreement or
     instrument relating to any such Material Financial Obligation and shall
     continue after the applicable grace period, if any, specified in such
     agreement or instrument, if the effect of such event or condition is to
     accelerate, or to permit the acceleration of, the maturity of such Material
     Financial Obligation or otherwise to cause, or to permit the holder thereof
     to cause, such Material Financial Obligation to mature; or any such
     Material Financial Obligation shall be declared to be due and payable or
     required to be prepaid or redeemed (other than by a regularly scheduled
     required prepayment or redemption), purchased or defeased, or an offer to
     prepay, redeem, purchase or defease such Material Financial Obligation
     shall be required to be made, in each case prior to the stated maturity
     thereof; or

          (f) any Loan Party or any of its Subsidiaries shall generally not pay
     its debts as such debts become due, or shall admit in writing its inability
     to pay its debts generally, or shall make a general assignment for the
     benefit of creditors; or any proceeding shall be instituted by or against
     any Loan Party or any of its Subsidiaries seeking to adjudicate it a
     bankrupt or insolvent, or seeking liquidation, winding up, reorganization,
     arrangement, adjustment, protection, relief, or composition of it or its
     debts under any law relating to bankruptcy, insolvency or reorganization or
     relief of debtors, or seeking the entry of an order for relief or the
     appointment of a receiver, trustee, or other similar official for it or for
     any substantial part of its property and, in the case of any such
     proceeding instituted against it (but not instituted by it) that is being
     diligently contested by it in good faith, either such proceeding shall
     remain undismissed or unstayed for a period of 30 days or any of the
     actions sought in such proceeding (including, without limitation, the entry
     of an order for relief against, or the appointment of a receiver, trustee,
     custodian or other similar official for, it or any substantial part of its
     property) shall occur; or any Loan Party or any of its Subsidiaries shall
     take any corporate action to authorize any of the actions set forth above
     in this subsection (f); or

          (g) any judgment or order for the payment of money in excess of
     $100,000,000 shall be rendered against any Loan Party or any of its
     Subsidiaries and either (i) enforcement proceedings shall have been
     commenced by any creditor upon such judgment or order or (ii) there shall
     be any period of 30 consecutive days during which a stay of enforcement of
     such judgment or order, by reason of a pending appeal or otherwise, shall
     not be in effect; or

                                     -52-
<PAGE>

          (h) any non-monetary judgment or order shall be rendered against any
     Loan Party or any of its Subsidiaries that could be reasonably likely to
     have a Material Adverse Effect, and there shall be any period of 30
     consecutive days during which a stay of enforcement of such judgment or
     order, by reason of a pending appeal or otherwise, shall not be in effect;
     or

          (i) any provision of any Loan Document after delivery thereof pursuant
     to Section 3.01 shall for any reason cease to be valid and binding on or
     enforceable against any Loan Party party to it (other than as a result of a
     transaction permitted hereunder), or any such Loan Party shall so state in
     writing; or

          (j) a Change of Control shall occur; or

          (k) Any Loan Party or any ERISA Affiliate shall incur or shall be
     reasonably expected to incur liability in excess of $25,000,000 in the
     aggregate with respect to any Pension Plan or any Multiemployer Plan in
     connection with the occurrence of any of the following events or existence
     of any of the following conditions:

               (i) Institution of any steps by any Loan Party, any ERISA
          Affiliate or any other Person, including, without limitation, the PBGC
          to terminate a Pension Plan if as a result of such termination a Loan
          Party or any ERISA Affiliate could be required to make a contribution
          to such Pension Plan, or could incur a liability or obligation;

               (ii) A contribution failure occurs with respect to any Pension
          Plan sufficient to give rise to a lien under section 302(f) of ERISA;
          or

               (iii)  Any condition shall exist or event shall occur with
          respect to a Pension Plan that is reasonably expected to result in any
          Loan Party or any ERISA Affiliate being required to furnish a bond or
          security to the PBGC or such Pension Plan, or incurring a liability or
          obligation.

          (l) any Loan Party or any ERISA Affiliate shall have been notified by
     the sponsor of a Multiemployer Plan that it has incurred Withdrawal
     Liability to such Multiemployer Plan; or

          (m) any Loan Party or any ERISA Affiliate shall have been notified by
     the sponsor of a Multiemployer Plan that such Multiemployer Plan is in
     reorganization or is being terminated, within the meaning of Title IV of
     ERISA, and as a result of such reorganization or termination the aggregate
     annual contributions of the Loan Parties and the ERISA Affiliates to all
     Multiemployer Plans that are then in reorganization or being terminated
     have been or will be increased over the amounts contributed to such
     Multiemployer Plans for the plan years of such Multiemployer Plans
     immediately preceding the plan year in which such reorganization or
     termination occurs;

then, and in any such event, the Administrative Agent (i) shall at the request,
or may with the consent, of the Required Banks, by notice to the Account
Parties, declare the obligation of the Issuing Bank to issue Letters of Credit
to be terminated, whereupon the same shall forthwith terminate, and/or (ii)
shall at the request, or may with the consent, of the Required Banks, by notice
to the Account Parties, declare all amounts payable under this Agreement and the
other Loan Documents to be forthwith due and payable, whereupon all such amounts
shall become and be forthwith due and payable, without presentment, demand,
protest or further notice of any kind, all of which are hereby expressly waived
by the Account

                                     -53-
<PAGE>

Parties; provided, however, that in the event of an actual or deemed entry of an
order for relief with respect to any Account Party under the Federal Bankruptcy
Code, (x) the obligation of the Issuing Bank to issue Letters of Credit shall
automatically be terminated and (y) all such amounts shall automatically become
and be due and payable, without presentment, demand, protest or any notice of
any kind, all of which are hereby expressly waived by the Account Parties.

          SECTION 6.02.  Actions in Respect of the Letters of Credit upon
Default.  If any Event of Default shall have occurred and be continuing, the
Administrative Agent may, or shall at the request of the Required Banks, after
having taken any of the actions described in Section 6.01(ii) or otherwise, make
demand upon the Account Party to, and forthwith upon such demand the Account
Party will, pay to the Administrative Agent on behalf of the Banks in same day
funds at the Administrative Agent's office designated in such demand, an amount
equal to the aggregate Available Amount of all Letters of Credit then
outstanding as cash collateral.  If at any time during the continuance of an
Event of Default the Administrative Agent determines that such funds are subject
to any right or claim of any Person other than the Administrative Agent and the
Banks or that the total amount of such funds is less than the aggregate
Available Amount of all Letters of Credit, the Account Party will, forthwith
upon demand by the Administrative Agent, pay to the Administrative Agent, as
additional cash collateral, an amount equal to the excess of (a) such aggregate
Available Amount over (b) the total amount of funds, if any, that the
Administrative Agent determines to be free and clear of any such right and
claim.  Upon the drawing of any Letter of Credit, such funds shall be applied to
reimburse the Issuing Bank or Banks, as applicable, to the extent permitted by
applicable law.

                                  ARTICLE VII

                                 THE GUARANTY

          SECTION 7.01.  The Guaranty.  (a)  Each Account Party hereby jointly
and severally, unconditionally, absolutely and irrevocably guarantees the full
and punctual payment (whether at stated maturity, upon acceleration or
otherwise) of all amounts payable by each of the other Account Parties under the
Loan Documents including, without limitation, the principal of and interest on
reimbursement obligations owing by such other Account Parties pursuant to this
Agreement with respect to Letters of Credit.  Upon failure by an Account Party
to pay punctually any such amount, each other Account Party agrees to pay
forthwith on demand the amount not so paid at the place and in the manner
specified in this Agreement.

          (b) Each Account Party (other than the Parent), and by its acceptance
of this Guaranty, the Administrative Agent and each other Bank, hereby confirms
that it is the intention of all such Persons that this Guaranty and the
obligations of each Account Party hereunder not constitute a fraudulent transfer
or conveyance for purposes of Bankruptcy Law, the Uniform Fraudulent Conveyance
Act, the Uniform Fraudulent Transfer Act or any similar foreign, federal or
state law to the extent applicable to this Guaranty and the obligations of each
Account Party (other than the Parent) hereunder.  To effectuate the foregoing
intention, the Administrative Agent, the other Banks and the Account Parties
hereby irrevocably agree that the obligations of each Account Party (other than
the Parent) under this Article VII at any time shall be limited to the maximum
amount as will result in the obligations of such Account Party under this
Guaranty not constituting a fraudulent transfer or conveyance.

          SECTION 7.02.  Guaranty Unconditional.  The obligations of each
Account Party under this Article VII shall be unconditional, absolute and
irrevocable and, without limiting the generality of

                                     -54-
<PAGE>

the foregoing, shall not be released, discharged or otherwise affected by:

          (i) any extension, renewal, settlement, compromise, waiver or release
     in respect of any obligation of any other obligor under any of the Loan
     Documents, by operation of law or otherwise;

          (ii) any modification or amendment of or supplement to any of the Loan
     Documents;

          (iii)  any release, non-perfection or invalidity of any direct or
     indirect security for any obligation of any other obligor under any of the
     Loan Documents;

          (iv) any change in the corporate existence, structure or ownership of
     any obligor, or any insolvency, bankruptcy, reorganization or other similar
     proceeding affecting any other obligor or its assets or any resulting
     release or discharge of any obligation of any other obligor contained in
     any of the Loan Documents;

          (v) the existence of any claim, set-off or other rights which any
     obligor may have at any time against any other obligor, the Administrative
     Agent, any Bank or any other corporation or person, whether in connection
     with any of the Loan Documents or any unrelated transactions, provided that
     nothing herein shall prevent the assertion of any such claim by separate
     suit or compulsory counterclaim;

          (vi) any invalidity or unenforceability relating to or against any
     other obligor for any reason of any of the Loan Documents, or any provision
     of applicable law or regulation purporting to prohibit the payment by any
     other obligor of principal interest or any other amount payable under any
     of the Loan Documents; or

          (vii)  any other act or omission to act or delay of any kind by any
     obligor, the Administrative Agent, any Bank or any other corporation or
     person or any other circumstance whatsoever which might, but for the
     provisions of this paragraph, constitute a legal or equitable discharge of
     or defense to an Account Party's obligations under this Article VII.

          SECTION 7.03.  Discharge Only upon Payment in Full; Reinstatement in
Certain Circumstances.  Each Account Party's obligations under this Article VII
shall remain in full force and effect until the commitments of the Banks
hereunder shall have terminated, no Letters of Credit shall be outstanding and
all amounts payable by the other Account Parties under the Loan Documents shall
have been paid in full.  If at any time any payment of the principal of or
interest on any reimbursement obligation or any other amount payable by an
Account Party under the Loan Documents is rescinded or must be otherwise
restored or returned upon the insolvency, bankruptcy or reorganization of such
Account Party or otherwise, each other Account Party's obligations under this
Article VII with respect to such payment shall be reinstated as though such
payment had been due but not made at such time.

          SECTION 7.04.  Waiver by the Account Parties.  Each Account Party
irrevocably waives acceptance hereof, presentment, demand, protest and any
notice not provided for herein, as well as any requirement that at any time any
action be taken by any corporation or person against any other obligor or any
other corporation or person.

          SECTION 7.05.  Subrogation.  Each Account Party hereby unconditionally
and irrevocably agrees not to exercise any rights that it may now have or
hereafter acquire against any other

                                     -55-
<PAGE>

Account Party, any other Loan Party or any other insider guarantor that arise
from the existence, payment, performance or enforcement of such Account Party's
obligations under or in respect of this Guaranty or any other Loan Document,
including, without limitation, any right of subrogation, reimbursement,
exoneration, contribution or indemnification and any right to participate in any
claim or remedy of any Bank against any other Account Party, any other Loan
Party or any other insider guarantor or any collateral, whether or not such
claim, remedy or right arises in equity or under contract, statute or common
law, including, without limitation, the right to take or receive from any other
Account Party, any other Loan Party or any other insider guarantor, directly or
indirectly, in cash or other property or by set-off or in any other manner,
payment or security on account of such claim, remedy or right, unless and until
all amounts payable under this Guaranty shall have been paid in full in cash, no
Letters of Credit shall be outstanding and the commitments of the Banks
hereunder shall have expired or been terminated. If any amount shall be paid to
any Account Party in violation of the immediately preceding sentence at any time
prior to the latest of (a) the payment in full in cash of all amounts payable
under this Guaranty, and (b) the Expiration Date, such amount shall be received
and held in trust for the benefit of the Banks, shall be segregated from other
property and funds of such Account Party and shall forthwith be paid or
delivered to the Administrative Agent in the same form as so received (with any
necessary endorsement or assignment) to be credited and applied to all amounts
payable under this Guaranty, whether matured or unmatured, in accordance with
the terms of the Loan Documents, or to be held as collateral for any amounts
payable under this Guaranty thereafter arising. If (i) any Account Party shall
make payment to any Bank of all or any amounts payable under this Guaranty, (ii)
all amounts payable under this Guaranty shall have been paid in full in cash,
and (iii) the final Expiration Date shall have occurred, the Banks will, at such
Account Party's request and expense, execute and deliver to such Account Party
appropriate documents, without recourse and without representation or warranty,
necessary to evidence the transfer by subrogation to such Account Party of an
interest in the obligations resulting from such payment made by such Account
Party pursuant to this Guaranty.

          SECTION 7.06.  Stay of Acceleration.  If acceleration of the time for
payment of any amount payable by any Account Party under any of the Loan
Documents is stayed upon the insolvency, bankruptcy or reorganization of such
Account Party, all such amounts otherwise subject to acceleration under the
terms of this Agreement shall nonetheless be payable by the other Account
Parties under this Article VII forthwith on demand by the Administrative Agent
made at the request of the requisite proportion of the Banks.

          SECTION 7.07.  Continuing Guaranty; Assignments.  This Guaranty is a
continuing guaranty and shall (a) remain in full force and effect until the
latest of (i) the payment in full in cash of all amounts payable under this
Guaranty and (ii) the final Expiration Date, (b) be binding upon each Account
Party, its successors and assigns and (c) inure to the benefit of and be
enforceable by the Banks and their successors, transferees and assigns.  Without
limiting the generality of clause (c) of the immediately preceding sentence, any
Bank may assign or otherwise transfer all or any portion of its rights and
obligations under this Agreement (including, without limitation, all or any
portion of its Letter of Credit Participating Interest Commitment and the
Advances owing to it) to any other Person, and such other Person shall thereupon
become vested with all the benefits in respect thereof granted to such Bank
herein or otherwise, in each case as and to the extent provided in Section 9.07.
No Account Party shall have the right to assign its rights hereunder or any
interest herein without the prior written consent of the Required Banks.

                                 ARTICLE VIII

                                     -56-
<PAGE>

                                  THE AGENTS

          SECTION 8.01.  Authorization and Action.  Each Bank (in its capacity
as a Bank) hereby appoints and authorizes each Agent to take such action as
agent on its behalf and to exercise such powers and discretion under this
Agreement and the other Loan Documents as are delegated to such Agent by the
terms hereof and thereof, together with such powers and discretion as are
reasonably incidental thereto.  As to any matters not expressly provided for by
the Loan Documents, no Agent shall be required to exercise any discretion or
take any action, but shall be required to act (in the case of the Administrative
Agent) or to refrain from acting (and shall be fully protected in so acting or
refraining from acting) upon the instructions of the Required Banks or all the
Banks where unanimity is required, and such instructions shall be binding upon
all Banks; provided, however, that no Agent shall be required to take any action
that exposes such Agent to personal liability or that is contrary to this
Agreement or applicable law.  The Administrative Agent agrees to give to each
Bank prompt notice of each notice given to it by any Account Party pursuant to
the terms of this Agreement.

          SECTION 8.02.  Agents' Reliance, Etc.  Neither any Agent nor any of
its respective directors, officers, agents or employees shall be liable for any
action taken or omitted to be taken by it or them under or in connection with
the Loan Documents, except for its or their own gross negligence or willful
misconduct.  Without limitation of the generality of the foregoing, each Agent:
(a) may consult with legal counsel (including counsel for any Loan Party),
independent public accountants and other experts selected by it and shall not be
liable for any action taken or omitted to be taken in good faith by it in
accordance with the advice of such counsel, accountants or experts; (b) makes no
warranty or representation to any Bank and shall not be responsible to any Bank
for any statements, warranties or representations (whether written or oral) made
in or in connection with the Loan Documents; (c) shall not have any duty to
ascertain or to inquire as to the performance or observance of any of the terms,
covenants or conditions of any Loan Document on the part of any Loan Party or to
inspect the property (including the books and records) of any Loan Party; (d)
shall not be responsible to any Bank for the due execution, legality, validity,
enforceability, genuineness, sufficiency or value of, or the perfection or
priority of any lien or security interest created or purported to be created
under or in connection with, any Loan Document or any other instrument or
document furnished pursuant thereto; and (e) shall incur no liability under or
in respect of any Loan Document by acting upon any notice, consent, certificate
or other instrument or writing (which may be by telegram or telecopy) reasonably
believed by it to be genuine and signed or sent by the proper party or parties.

          SECTION 8.03.  Mellon and Affiliates.  With respect to its LC
Commitment Amounts, and the Advances, Mellon shall have the same rights and
powers under the Loan Documents as any other Bank and may exercise the same as
though it were not an Agent; and the term "Bank" or "Banks" shall, unless
otherwise expressly indicated, include Mellon in its individual capacity.
Mellon and its affiliates may accept deposits from, lend money to, act as
trustee under indentures of, accept investment banking engagements from and
generally engage in any kind of business with, any Loan Party, any of its
Subsidiaries and any Person that may do business with or own securities of any
Loan Party or any such Subsidiary, all as if Mellon were not an Agent and
without any duty to account therefor to the Banks.

          SECTION 8.04.  Bank Credit Decision.  Each Bank acknowledges that it
has, independently and without reliance upon any Agent or any other Bank and
based on the financial statements referred to in Section 4.01 and such other
documents and information as it has deemed appropriate, made its own credit
analysis and decision to enter into this Agreement.  Each Bank also acknowledges
that it will, independently and without reliance upon any Agent or any other
Bank and based on such documents and information as it shall deem appropriate at
the time, continue to make its own credit decisions in taking or not taking
action under this Agreement.

                                     -57-
<PAGE>

          SECTION 8.05.  Indemnification.  (a)  Each Bank severally agrees to
indemnify each Agent (to the extent not promptly reimbursed by the Account
Parties) from and against such Bank's ratable share (determined as provided
below) of any and all liabilities, obligations, losses, damages, penalties,
actions, judgments, suits, costs, expenses or disbursements of any kind or
nature whatsoever that may be imposed on, incurred by, or asserted against such
Agent in any way relating to or arising out of the Loan Documents or any action
taken or omitted by such Agent under the Loan Documents; provided, however, that
no Bank shall be liable for any portion of such liabilities, obligations,
losses, damages, penalties, actions, judgments, suits, costs, expenses or
disbursements resulting from such Agent's gross negligence or willful
misconduct.  Without limitation of the foregoing, each Bank agrees to reimburse
each Agent promptly upon demand for its ratable share of any costs and expenses
(including, without limitation, fees and expenses of counsel) payable by the
Account Parties under Section 9.04, to the extent that such Agent is not
promptly reimbursed for such costs and expenses by the Account Parties.

          (b) For purposes of this Section 8.05, the Banks' respective ratable
shares of any amount shall be determined, at any time, according to the sum of
(i) the aggregate principal amount of the Advances outstanding at such time and
owing to the respective Banks, (ii) their respective Pro Rata Shares of the
aggregate Available Amounts of all Letters of Credit outstanding at such time
and (iii) their respective Unused LC Commitment Amounts at such time.  The
failure of any Bank to reimburse any Agent promptly upon demand for its ratable
share of any amount required to be paid by the Banks to such Agent as provided
herein shall not relieve any other Bank of its obligation hereunder to reimburse
such Agent for its ratable share of such amount, but no Bank shall be
responsible for the failure of any other Bank to reimburse such Agent for such
other Bank's ratable share of such amount.  Without prejudice to the survival of
any other agreement of any Bank hereunder, the agreement and obligations of each
Bank contained in this Section 8.05 shall survive the payment in full of
principal, interest and all other amounts payable hereunder and under the other
Loan Documents.

          SECTION 8.06.  Successor Administrative Agent.  Any Agent may resign
at any time by giving written notice thereof to the Banks and the Parent and may
be removed at any time with or without cause by the Required Banks.  Upon any
such resignation or removal of the Administrative Agent, the Required Banks
shall have the right to appoint a successor Administrative Agent, subject (so
long as no Event of Default exists) to the consent of the Parent (which consent
shall not be unreasonably withheld).  If no successor Administrative Agent shall
have been so appointed by the Required Banks, and shall have accepted such
appointment, within 30 days after the retiring Administrative Agent's giving of
notice of resignation or the Required Banks' removal of the retiring
Administrative Agent, then the retiring Administrative Agent may, on behalf of
the Banks, appoint a successor Administrative Agent, which shall be a commercial
bank organized under the laws of the United States or of any State thereof and
having a combined capital and surplus of at least $250,000,000.  Upon the
acceptance of any appointment as Administrative Agent hereunder by a successor
Administrative Agent such successor Administrative Agent shall succeed to and
become vested with all the rights, powers, discretion, privileges and duties of
the retiring Administrative Agent, and the retiring Administrative Agent shall
be discharged from its duties and obligations under the Loan Documents.  If
within 45 days after written notice is given of the retiring Administrative
Agent's resignation or removal under this Section 8.06 no successor
Administrative Agent shall have been appointed and shall have accepted such
appointment, then on such 45th day (i) the retiring Administrative Agent's
resignation or removal shall become effective, (ii) the retiring Administrative
Agent shall thereupon be discharged from its duties and obligations under the
Loan Documents and (iii) the Required Banks shall thereafter perform all duties
of the retiring Administrative Agent under the Loan Documents until such time,
if any, as the Required

                                     -58-
<PAGE>

Banks appoint a successor Administrative Agent as provided above. After any
retiring Agent's resignation or removal hereunder as Agent shall have become
effective, the provisions of this Article VIII shall inure to its benefit as to
any actions taken or omitted to be taken by it while it was Agent under this
Agreement. If Deutsche or Fleet ceases to be a Bank hereunder, it shall be
deemed to have resigned as a Documentation Agent and no replacement shall be
appointed.

                                  ARTICLE IX

                                 MISCELLANEOUS

          SECTION 9.01.  Amendments, Etc.  No amendment or waiver of any
provision of this Agreement or any other Loan Document, nor consent to any
departure by any Loan Party therefrom, shall in any event be effective unless
the same shall be in writing and signed by the Issuing Bank and the Required
Banks (and, in the case of an amendment, the Parent), and then any such waiver
or consent shall be effective only in the specific instance and for the specific
purpose for which given; provided, however, that no amendment, waiver or consent
shall, unless in writing and signed by all of the Banks (other than (A) any Bank
that is, at such time, a Defaulting Bank, (B) in the case of clause (v) below,
any Bank which is not a Commitment Bank and which is not affected by such
amendment, waiver or consent and (C) in the case of clauses (ii), (iii), (vi)
and (vii) below, any Bank which is not and will not be (and is not and will not
be owed any obligation which is or will be) affected thereby), do any of the
following at any time:  (i) waive any of the conditions specified in Section
3.01 or, in the case of the Initial Extension of Credit, Section 3.02, (ii)
change the number of Banks or the percentage of (x) the LC Commitment Amounts,
(y) the aggregate unpaid principal amount of the Advances or (z) the aggregate
Available Amount of outstanding Letters of Credit that, in each case, shall be
required for the Banks or any of them to take any action hereunder, (iii) reduce
or limit the obligations of any Account Party under Section 7.01 or release such
Account Party or otherwise limit such Account Party's liability with respect to
the obligations owing to the Agents and the Banks, (iv) amend this Section 9.01,
(v) increase the LC Commitment Amounts of the Banks, extend the then applicable
Expiration Date or subject the Banks to any additional obligations, (vi) reduce
the principal of, or interest on, any reimbursement obligation or any fees or
other amounts payable hereunder, (vii) postpone any date fixed for any payment
of principal of, or interest on, any reimbursement obligation or any fees or
other amounts payable hereunder, or (viii) limit the liability of any Loan Party
under any of the Loan Documents; provided further that no amendment, waiver or
consent shall, unless in writing and signed by an Agent in addition to the Banks
required above to take such action, affect the rights or duties of such Agent
under this Agreement or the other Loan Documents.

          SECTION 9.02.  Notices, Etc.  All notices and other communications
provided for hereunder shall be in writing (including telegraphic or telecopy
communication) and mailed, telegraphed, telecopied or delivered, if to any
Account Party, at its address set forth below on the signature pages hereof; if
to any Initial Bank, at its Domestic Lending Office specified opposite its name
on Schedule I hereto; if to any other Bank, at its Domestic Lending Office
specified in the Assignment and Acceptance pursuant to which it became a Bank;
if to the Issuing Bank at its address at One Mellon Bank Center, Pittsburgh,
Pennsylvania 15258, attention: Karen McConomy; and if to the Administrative
Agent, at its address at One Mellon Bank Center, Pittsburgh, Pennsylvania 15258,
attention: Karen McConomy; or, as to any party, at such other address as shall
be designated by such party in a written notice to the other parties.  All such
notices and communications shall, when mailed, telegraphed or telecopied, be
effective when deposited in the mails, delivered to the telegraph company or
transmitted by telecopier, respectively, except that notices and communications
to the Administrative Agent pursuant to Article II,

                                     -59-
<PAGE>

III or VIII shall not be effective until received by the Administrative Agent.
Manual delivery by telecopier of an executed counterpart of any amendment or
waiver of any provision of this Agreement or of any Exhibit hereto to be
executed and delivered hereunder shall be effective as delivery of an original
executed counterpart thereof.

          SECTION 9.03.  No Waiver; Remedies.  No failure on the part of any
Bank or any Agent to exercise, and no delay in exercising, any right hereunder
shall operate as a waiver thereof; nor shall any single or partial exercise of
any such right preclude any other or further exercise thereof or the exercise of
any other right.  The remedies herein provided are cumulative and not exclusive
of any remedies provided by law.

          SECTION 9.04.  Costs and Expenses.  (a) Each of the Account Parties
agrees to pay on demand (i) all reasonable costs and expenses of the
Administrative Agent and of the Issuing Bank in connection with the preparation,
execution, delivery, administration, modification and amendment of the Loan
Documents (including, without limitation, (A) all due diligence, collateral
review, syndication, transportation, computer, duplication, appraisal, audit,
insurance, consultant, search, filing and recording fees and expenses and (B)
the reasonable fees and expenses of a single counsel for the Administrative
Agent and a single counsel for the Issuing Bank with respect thereto, with
respect to advising the Administrative Agent as to its rights and
responsibilities, or the perfection, protection or preservation of rights or
interests, under the Loan Documents, with respect to negotiations with any Loan
Party or with other creditors of any Loan Party or any of its Subsidiaries
arising out of any Default or any events or circumstances that may give rise to
a Default and with respect to presenting claims in or otherwise participating in
or monitoring any bankruptcy, insolvency or other similar proceeding involving
creditors' rights generally and any proceeding ancillary thereto) and (ii) all
reasonable costs and expenses of each Agent, the Issuing Bank and each Bank in
connection with the enforcement of the Loan Documents, whether in any action,
suit or litigation, or any bankruptcy, insolvency or other similar proceeding
affecting creditors' rights generally (including, without limitation, the
reasonable fees and expenses of counsel for the Administrative Agent, the
Issuing Bank and each Bank with respect thereto).

          (b) Each of the Account Parties jointly and severally agrees to
indemnify and hold harmless each Agent, the Issuing Bank, each Bank and each of
their Affiliates and their respective officers, directors, employees, agents and
advisors (each, an "Indemnified Party") from and against any and all claims,
damages, losses, liabilities and expenses (including, without limitation,
reasonable fees and expenses of counsel) that may be incurred by or asserted or
awarded against any Indemnified Party, in each case arising out of or in
connection with or by reason of (including, without limitation, in connection
with any investigation, litigation or proceeding or preparation of a defense in
connection therewith) this Agreement, the actual or proposed use of the proceeds
of the Advances, the Loan Documents or any of the transactions contemplated
thereby, including, without limitation, any acquisition or proposed acquisition
(including, without limitation, the Acquisition and any of the other
transactions contemplated by the Loan Documents) by any Account Party or any of
its Subsidiaries or Affiliates of all or any portion of the Equity Interests in
or Debt securities or substantially all of the assets of CIGNAP&C, except to the
extent such claim, damage, loss, liability or expense is found in a final, non-
appealable judgment by a court of competent jurisdiction to have resulted from
such Indemnified Party's gross negligence or willful misconduct.  In the case of
an investigation, litigation or other proceeding to which the indemnity in this
Section 9.04(b) applies, such indemnity shall be effective whether or not such
investigation, litigation or proceeding is brought by any Loan Party, its
directors, shareholders or creditors or an Indemnified Party or any Indemnified
Party is otherwise a party thereto and whether or not the transactions
contemplated by the Loan Documents are consummated.  Each of the Account Parties
also agrees not to assert any claim against any Agent, any Bank or any of their

                                     -60-
<PAGE>

Affiliates, or any of their respective officers, directors, employees, attorneys
and agents, on any theory of liability, for special, indirect, consequential or
punitive damages arising out of or otherwise relating to the credit facilities
provided hereunder, the actual or proposed use of the proceeds of the Advances
or the Letters of Credit, the Loan Documents or any of the transactions
contemplated by the Loan Documents.

          (c) Without prejudice to the survival of any other agreement of any
Loan Party hereunder or under any other Loan Document, the agreements and
obligations of the Account Parties contained in Section 2.07 and this Section
9.04 shall survive the payment in full of principal, interest and all other
amounts payable hereunder and under any of the other Loan Documents.

          SECTION 9.05.  Right of Set-off.  Upon (a) the occurrence and during
the continuance of any Event of Default and (b) the making of the request or the
granting of the consent specified by Section 6.01 to authorize the
Administrative Agent to declare amounts owing hereunder to be due and payable
pursuant to the provisions of Section 6.01, each Agent and each Bank and each of
their respective Affiliates is hereby authorized at any time and from time to
time, to the fullest extent permitted by law, to set off and otherwise apply any
and all deposits (general or special, time or demand, provisional or final) at
any time held and other indebtedness at any time owing by such Agent, such Bank
or such Affiliate to or for the credit or the account of any Account Party
against any and all of the obligations of such Account Party now or hereafter
existing under the Loan Documents, irrespective of whether such Agent or such
Bank shall have made any demand under this Agreement and although such
obligations may be unmatured.  Each Agent and each Bank agrees promptly to
notify each Account Party after any such set-off and application; provided,
however, that the failure to give such notice shall not affect the validity of
such set-off and application.  The rights of each Agent and each Bank and their
respective Affiliates under this Section are in addition to other rights and
remedies (including, without limitation, other rights of set-off) that such
Agent, such Bank and their respective Affiliates may have.

          SECTION 9.06.  Binding Effect.  This Agreement shall become effective
when it shall have been executed by each Account Party, the Issuing Bank and
each Agent and the Administrative Agent shall have been notified by each Initial
Bank that such Initial Bank has executed it and thereafter shall be binding upon
and inure to the benefit of each  Account Party, each Agent and each Bank and
their respective successors and assigns, except that no Account Party shall
have the right to assign its rights hereunder or any interest herein without the
prior written consent of the Banks.

          SECTION 9.07.  Assignments and Participations.  (a)  Each Bank may,
and so long as no Default shall have occurred and be continuing, if demanded by
any Account Party (following a demand by such Bank pursuant to Section 2.12)
upon at least five Business Days notice to such Bank and the Administrative
Agent, will, assign to one or more Eligible Assignee all or a portion of its
rights and obligations under this Agreement (including, without limitation, all
or a portion of its LC Commitment Amount, its Letter of Credit Participating
Interest Commitment and the Letter of Credit Advances owing to it); provided,
however, that (i) each such assignment shall be of a uniform, and not a varying,
percentage of all rights and obligations of such Bank hereunder, except for any
non-pro rata assignment made by a Downgraded Bank after a request by the Issuing
Bank pursuant to Section 2.14 (and any subsequent non-pro rata assignment of the
interest so assigned or by the Downgraded Bank) and any other non-pro rata
assignment approved by the Administrative Agent and any Account Party, (ii)
except in the case of an assignment to a Person that, immediately prior to such
assignment, was a Bank, an Affiliate of any Bank or an Approved Fund of any Bank
or an assignment of all of a Bank's rights and obligations under this Agreement,
the aggregate amount of the LC Commitment Amounts being assigned to such
Eligible Assignee pursuant to such assignment (determined as of the date of the
Assignment and Acceptance with respect to such assignment) shall in no event be
less than $10,000,000, (iii) each such

                                     -61-
<PAGE>

assignment shall be to an Eligible Assignee, (iv) each assignment made as a
result of a demand by any Account Party pursuant to Section 2.12 shall be
arranged by such Account Party after consultation with the Administrative Agent
and shall be either an assignment of all of the rights and obligations of the
assigning Bank under this Agreement or an assignment of a portion of such rights
and obligations made concurrently with another such assignment or other such
assignments that together cover all of the rights and obligations of the
assigning Bank under this Agreement, (v) no Bank shall be obligated to make any
such assignment as a result of a demand by any Account Party pursuant to Section
2.12 unless and until such Bank shall have received one or more payments from
either such Account Party or other Eligible Assignees in an aggregate amount at
least equal to the aggregate outstanding principal amount of the Advances made
by such Bank, together with accrued interest thereon to the date of payment of
such principal amount and all other amounts payable to such Bank under this
Agreement, (vi) as a result of such assignment, no Account Party shall be
subject to additional amounts under Section 2.06 or 2.08, (vii) no such
assignment shall be permitted without the consent of the Administrative Agent
and, so long as no Default shall have occurred and be continuing, the Parent
(which consents shall not be unreasonably withheld) and (viii) the parties to
each such assignment shall execute and deliver to the Administrative Agent, for
its acceptance and recording in the Register, an Assignment and Acceptance,
together with a processing and recordation fee of $2,500.00.

          (b) Upon such execution, delivery, acceptance and recording, from and
after the effective date specified in such Assignment and Acceptance, (i) the
assignee thereunder shall be a party hereto and, to the extent that rights and
obligations hereunder have been assigned to it pursuant to such Assignment and
Acceptance, have the rights and obligations of a Bank, hereunder and (ii) the
Bank assignor thereunder shall, to the extent that rights and obligations
hereunder have been assigned by it pursuant to such Assignment and Acceptance,
relinquish its rights (other than its rights under Sections 2.06, 2.08 and 9.04
to the extent any claim thereunder relates to an event arising prior to such
assignment) and be released from its obligations under this Agreement (and, in
the case of an Assignment and Acceptance covering all of the remaining portion
of an assigning Bank's rights and obligations under this Agreement, such Bank
shall cease to be a party hereto).

          (c) By executing and delivering an Assignment and Acceptance, each
Bank assignor thereunder and each assignee thereunder confirm to and agree with
each other and the other parties thereto and hereto as follows:  (i) other than
as provided in such Assignment and Acceptance, such assigning Bank makes no
representation or warranty and assumes no responsibility with respect to any
statements, warranties or representations made in or in connection with any Loan
Document or the execution, legality, validity, enforceability, genuineness,
sufficiency or value of, or the perfection or priority of any lien or security
interest created or purported to be created under or in connection with, any
Loan Document or any other instrument or document furnished pursuant thereto;
(ii) such assigning Bank makes no representation or warranty and assumes no
responsibility with respect to the financial condition of any Loan Party or the
performance or observance by any Loan Party of any of its obligations under any
Loan Document or any other instrument or document furnished pursuant thereto;
(iii) such assignee confirms that it has received a copy of this Agreement,
together with copies of the financial statements referred to in Section 4.01 and
such other documents and information as it has deemed appropriate to make its
own credit analysis and decision to enter into such Assignment and Acceptance;
(iv) such assignee will, independently and without reliance upon any Agent, such
assigning Bank or any other Bank and based on such documents and information as
it shall deem appropriate at the time, continue to make its own credit decisions
in taking or not taking action under this Agreement; (v) such assignee confirms
that it is an Eligible Assignee; (vi) such assignee appoints and authorizes each
Agent to take such action as agent on its behalf and to exercise such powers and
discretion under the Loan Documents as are delegated to such Agent by the terms
hereof and thereof, together with such

                                     -62-
<PAGE>

powers and discretion as are reasonably incidental thereto; and (vii) such
assignee agrees that it will perform in accordance with their terms all of the
obligations that by the terms of this Agreement are required to be performed by
it as a Bank.

          (d) The Administrative Agent, acting for this purpose (but only for
this purpose) as the agent of the Account Parties, shall maintain at its address
referred to in Section 9.02 a copy of each Assignment and Acceptance delivered
to and accepted by it and a register for the recordation of the names and
addresses of the Banks and the LC Commitment Amount of, and principal amount of
the Advances owing to, each Bank from time to time (the "Register").  The
entries in the Register shall be conclusive and binding for all purposes, absent
manifest error, and the Account Parties, the Agents and the Banks shall treat
each Person whose name is recorded in the Register as a Bank hereunder for all
purposes of this Agreement.  The Register shall be available for inspection by
any Account Party or any Agent or any Bank at any reasonable time and from time
to time upon reasonable prior notice.

          (e) Upon its receipt of an Assignment and Acceptance executed by an
assigning Bank and an assignee, the Administrative Agent shall, if such
Assignment and Acceptance has been completed and is in substantially the form of
Exhibit C hereto, (i) accept such Assignment and Acceptance, (ii) record the
information contained therein in the Register and (iii) give prompt notice
thereof to the Parent.

          (f) Each Bank may sell participations to one or more Persons (other
than any Loan Party or any of its Affiliates) in or to all or a portion of its
rights and obligations under this Agreement (including, without limitation, all
or a portion of its LC Commitment Amount, its Letter of Credit Participating
Interest Commitment and the Advances owing to it; provided, however, that (i)
such Bank's obligations under this Agreement (including, without limitation, its
Letter of Credit Participating Interest Commitment) shall remain unchanged, (ii)
such Bank shall remain solely responsible to the other parties hereto for the
performance of such obligations, (iii) the Account Parties, the Agents and the
other Banks shall continue to deal solely and directly with such Bank in
connection with such Bank's rights and obligations under this Agreement and (iv)
no participant under any such participation shall have any right to approve any
amendment or waiver of any provision of any Loan Document, or any consent to any
departure by any Loan Party therefrom, except to the extent that such amendment,
waiver or consent would reduce the principal of, or interest on, reimbursement
obligations or any fees or other amounts payable hereunder, in each case to the
extent subject to such participation, postpone any date fixed for any payment of
principal of, or interest on, the reimbursement obligations or any fees or other
amounts payable hereunder, in each case to the extent subject to such
participation.  Each Bank shall, as agent of the Account Parties solely for the
purposes of this Section, record in book entries maintained by such Bank, the
name and amount of the participating interest of each Person entitled to receive
payments in respect of any participating interests sold pursuant to this
Section.

          (g) Any Bank may, in connection with any assignment or participation
or proposed assignment or participation pursuant to this Section 9.07, disclose
to the assignee or participant or proposed assignee or participant any
information relating to any Account Party furnished to such Bank by or on behalf
of any Account Party; provided, however, that, prior to any such disclosure, the
assignee or participant or proposed assignee or participant shall agree to
preserve the confidentiality of any Confidential Information received by it from
such Bank.

          (h) Notwithstanding any other provision set forth in this Agreement,
any Bank may at any time create a security interest in all or any portion of its
rights under this Agreement (including, without limitation, the Advances owing
to it) in favor of any Federal Reserve Bank in accordance with

                                     -63-
<PAGE>

Regulation A of the Board of Governors of the Federal Reserve System.

          SECTION 9.08.  Execution in Counterparts.  This Agreement may be
executed in any number of counterparts and by different parties hereto in
separate counterparts, each of which when so executed shall be deemed to be an
original and all of which taken together shall constitute one and the same
agreement.  Delivery of an executed counterpart of a signature page to this
Agreement by telecopier shall be effective as delivery of an original executed
counterpart of this Agreement.

          SECTION 9.09.  No Liability of the Issuing Bank.  Each Account Party
assumes all risks of the acts or omissions of any beneficiary or transferee of
any Letter of Credit with respect to its use of such Letter of Credit.  Neither
the Issuing Bank nor any of its officers, directors, employees or agents shall
be liable or responsible for:  (a) the use that may be made of any Letter of
Credit or any acts or omissions of any beneficiary or transferee in connection
therewith; (b) the validity, sufficiency or genuineness of documents, or of any
endorsement thereon, even if such documents should prove to be in any or all
respects invalid, insufficient, fraudulent or forged; (c) payment by the Issuing
Bank against presentation of documents that do not strictly comply with the
terms of a Letter of Credit, including failure of any documents to bear any
reference or adequate reference to the Letter of Credit; or (d) any other
circumstances whatsoever in making or failing to make payment under any Letter
of Credit, except that such Account Party shall have a claim against the Issuing
Bank, and the Issuing Bank shall be liable to such Account Party, to the extent
of any direct, but not consequential, damages suffered by such Account Party
that such Account Party proves were caused by (i)  the Issuing Bank's willful
misconduct or gross negligence as determined in a final, non-appealable judgment
by a court of competent jurisdiction in determining whether documents presented
under any Letter of Credit comply with the terms of the Letter of Credit or (ii)
the Issuing Bank's willful failure to make lawful payment under a Letter of
Credit after the presentation to it of a draft and certificates strictly
complying with the terms and conditions of the Letter of Credit.  In furtherance
and not in limitation of the foregoing, the Issuing Bank may accept documents
that appear on their face to be in order, without responsibility for further
investigation, regardless of any notice or information to the contrary.

          SECTION 9.10.  Confidentiality.  Neither any Agent nor any Bank shall
disclose any Confidential Information to any Person without the consent of the
Parent, other than (a) to such Agent's or such Bank's Affiliates and their
officers, directors, employees, agents and advisors and to actual or prospective
Eligible Assignees and participants, and then only on a confidential basis, (b)
as required by any law, rule or regulation or judicial process, (c) as requested
or required by any state, Federal or foreign authority or examiner regulating
such Bank and (d) to any rating agency when required by it, provided that, prior
to any such disclosure, such rating agency shall undertake to preserve the
confidentiality of any Confidential Information relating to the Loan Parties
received by it from such Bank.

          SECTION 9.11.  Jurisdiction, Etc.  (a)  Each of the parties hereto
hereby irrevocably and unconditionally submits, for itself and its property, to
the nonexclusive jurisdiction of any New York State court or Federal court of
the United States of America sitting in New York City, and any appellate court
from any thereof, in any action or proceeding arising out of or relating to this
Agreement or any of the other Loan Documents to which it is a party, or for
recognition or enforcement of any judgment, and each of the parties hereto
hereby irrevocably and unconditionally agrees that all claims in respect of any
such action or proceeding may be heard and determined in any such New York State
court or, to the extent permitted by law, in such Federal court.  Each of the
parties hereto agrees that a final judgment in any such action or proceeding
shall be conclusive and may be enforced in other jurisdictions by suit on the
judgment or in any other manner provided by law.  Nothing in this Agreement
shall affect any right

                                     -64-
<PAGE>

that any party may otherwise have to bring any action or proceeding relating to
this Agreement or any of the other Loan Documents in the courts of any
jurisdiction.

          (b) Each of the parties hereto irrevocably and unconditionally waives,
to the fullest extent it may legally and effectively do so, any objection that
it may now or hereafter have to the laying of venue of any suit, action or
proceeding arising out of or relating to this Agreement or any of the other Loan
Documents to which it is a party in any New York State or Federal court.  Each
of the parties hereto hereby irrevocably waives, to the fullest extent permitted
by law, the defense of an inconvenient forum to the maintenance of such action
or proceeding in any such court.

          SECTION 9.12.  Governing Law.  This Agreement shall be governed by,
and construed in accordance with, the laws of the State of New York.

          SECTION 9.13.  Waiver of Jury Trial.  Each of the Account Parties, the
Agents and the Banks irrevocably waives all right to trial by jury in any
action, proceeding or counterclaim (whether based on contract, tort or
otherwise) arising out of or relating to any of the Loan Documents, the Advances
or the actions of any Agent or any Bank in the negotiation, administration,
performance or enforcement thereof.

          [Remainder of page intentionally left blank]

                                     -65-
<PAGE>

          IN WITNESS WHEREOF, the parties hereto have caused this Agreement to
be executed by their respective officers thereunto duly authorized, as of the
date first above written.

                                    ACE LIMITED
                                    The Common Seal of ACE Limited was
                                    hereunto affixed in the presence of:

                                    Director

                                    Secretary

                                    ACE BERMUDA INSURANCE LTD.
                                    The Common Seal of ACE Bermuda
                                    Insurance Ltd. was hereunto affixed
                                    in the presence of:

                                    Director

                                    Secretary

                                    TEMPEST REINSURANCE COMPANY LIMITED

                                    The Common Seal of Tempest Reinsurance
                                    Company Limited was hereunto affixed in
                                    the presence of:

                                    Director

                                    Secretary

                                    Address for each Account Party:
                                    The ACE Building
                                    30 Woodbourne Avenue
                                    Hamilton HM08 Bermuda

                                     -66-
<PAGE>

                                    MELLON BANK, N.A., as Administrative Agent,
                                    as Issuing Bank and as an Initial Bank

                                    By:
                                    Title:

                                    DEUTSCHE BANK AG, NEW YORK
                                    AND/OR CAYMAN ISLANDS BRANCHES, as
                                    Documentation Agent and as an Initial Bank

                                    By:
                                    Title:

                                    FLEET NATIONAL BANK, as Documentation Agent
                                    and as an Initial Bank

                                    By:
                                    Title:

                                    THE BANK OF BERMUDA LIMITED, as an Initial
                                    Bank

                                    By:
                                    Title:

                                    THE BANK OF NEW YORK, as an Initial Bank

                                    By:
                                    Title:

                                    BANQUE NATIONALE DE PARIS, as an Initial
                                    Bank

                                    By:
                                    Title:

                                    SOCIETE GENERALE, as an Initial Bank

                                    By:
                                    Title:

                                     -67-
<PAGE>

                                  SCHEDULE I

                             LC COMMITMENT AMOUNTS
                             ---------------------

<TABLE>
<CAPTION>

<S>                               <C>
Mellon Bank, N. A.                $ 71,500,000.00

The Bank of Bermuda Limited       $ 71,500,000.00

Deutsche Bank AG, New York
and/or Cayman Islands Branches    $ 71,500,000.00

Fleet National Bank               $ 71,500,000.00

The Bank of New York              $ 48,000,000.00

Banque Nationale de Paris         $ 48,000,000.00

Societe Generale                  $ 48,000,000.00
                                  ---------------

     Total                        $430,000,000.00
                                  ===============

</TABLE>

                                     -68-
<PAGE>

                              SCHEDULE I - Part 2

                           Domestic Lending Offices
                           ------------------------

Mellon Bank, N. A.                      One Mellon Bank Center
                                        Room 4440
                                        Pittsburgh, PA 15258-0001
                                        Attn: Karen McConomy

The Bank of Bermuda Limited             6 Front Street
                                        Hamilton HMII, Bermuda
                                        Attn: Hanne Frost

Deutsche Bank AG, New York
and/or Cayman Islands Branches          31 West 52nd Street
                                        New York, NY 10019
                                        Attn: John McGill

Fleet National Bank                     777 Main Street
                                        Hartford, CT 06115-2001
                                        Attn: Anson Harris

The Bank of New York                    1 Wall Street
                                        17th Floor
                                        New York, NY 10286
                                        Attn: Louis DiFranco

Banque Nationale de Paris               499 Park Avenue
                                        New York, NY 10022
                                        Attn: Phil Truesdale

Societe Generale                        1221 Avenue of the Americas
                                        New York, NY 10020
                                        Attn: Laura Hope

                                     -69-
<PAGE>

                                  SCHEDULE II

                          Existing Letters of Credit
                          --------------------------

1.   Mellon Letter of Credit # S864386
     Face Amount:  $74,500,000
     Account Party:  Ace Bermuda Insurance Ltd.
     Beneficiary:  State Industrial Insurance System DBA Employers Insurance
     Company of Nevada

2.   Mellon Letter of Credit # S856602
     Face Amount:  $427,000

     Account Party:  Westchester Surpluys Lines Insurance Co. and Westchester
          Fire Insurance Company (for purposes of the Reimbursement Agreement,
          the account party for this letter of credit will be deemed to be Ace
          Limited or, if so desired by the Account Parties on the closing date,
          another Account Party)

     Beneficiary:  International Insurance Company

                                     -70-

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