Document:

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                                                                   EXHIBIT 10.33

                           EMPLOYEE LEASING AGREEMENT

                                  by and among

                             ROYAL INDEMNITY COMPANY

                                       and

                        UNDERWRITERS REINSURANCE COMAPNY

                            Dated as of July 1, 2003

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                  EMPLOYEE LEASING AGREEMENT (this "Agreement"), dated as of
July 1, 2003, by and between ROYAL INDEMNITY COMPANY, a corporation organized
under the laws of the State of Delaware ("Royal Indemnity"), and UNDERWRITERS
REINSURANCE COMAPNY, a corporation organized under the laws of the State of New
Hampshire ("URC").

                  WHEREAS, URC is in the business of insurance and reinsurance
and requires individuals to perform services to permit the conduct of its
business; and

                  WHEREAS, Alleghany Insurance Holding LLC ("AIHL") has entered
into an agreement with Royal Group, Inc. ("Royal Group") denominated as the
Acquisition Agreement and dated as of June 6, 2003 (the "Acquisition
Agreement"), pursuant to which AIHL shall acquire from Royal Group, among other
things, all of the issued and outstanding stock of Royal Specialty Underwriting,
Inc. ("RSUI"); and

                  WHEREAS, Royal Indemnity currently employs individuals
experienced in performing services involved in the underwriting and
administering of insurance and reinsurance, and Royal Indemnity is willing to
lease those employees to URC until URC offers employment to such individuals
following the acquisition of RSUI by AIHL; and

                  WHEREAS, this is the Employee Leasing Agreement contemplated
by the Acquisition Agreement; and

                  WHEREAS, the Acquisition Agreement permits AIHL to assign its
rights under the Acquisition Agreement and any Ancillary Agreement without prior
written consent to any wholly owned Subsidiary, which term includes URC, and
AIHL has assigned its rights under the Employee Leasing Agreement to URC; and

                  WHEREAS, following the consummation of the acquisition of RSUI
pursuant to the Acquisition Agreement, URC will be an Affiliate of RSUI; and

                  WHEREAS, Royal Indemnity and URC acknowledge that, as a result
of this Agreement, URC and Royal Indemnity may be viewed as shared employers or
joint employers for the purposes of certain laws and regulations. It is not the
intent of either party to escape certain risks and responsibilities that flow
from URC's development and/or distribution of products or delivery of services
through employees. These risks and responsibilities include but are not
necessarily limited to, premises liability, workplace safety, professional
negligence, general negligence and both federal and state employment laws and
regulations. Royal Indemnity and URC recognize that under certain laws, both
parties may be covered as employers, while under other laws, only one of the
parties may be deemed to be the employer.

                  NOW, THEREFORE, in consideration of the foregoing premises,
the mutual agreements and covenants contained herein and other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the
parties hereby agree as follows:

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                                   ARTICLE I

                                   Definitions

                  Capitalized terms not otherwise defined herein shall have the
following meanings:

                  "Records" means copies of all records (including computer
generated, recorded or stored records) relating to the Leased Employees,
including all personnel records and such other employment-related records in the
possession or control of Royal Indemnity or any Affiliate relating to the Leased
Employees as URC shall reasonably request for URC to conduct its business or to
comply with any applicable employment law, rule or regulation.

                  "Cause" means (i) the failure or refusal of a Leased Employee
to substantially perform the material duties of his or her employment with Royal
Indemnity, as determined by URC with the consent of Royal Indemnity (which
consent shall not be unreasonably withheld, conditioned or delayed), (ii) the
commission by a Leased Employee of a crime involving moral turpitude or that
results in the loss, suspension or forfeiture of any license or registration
required by the Leased Employee for the performance of his or her duties, or
(iii) the Leased Employee's willful engagement in conduct which is materially
injurious to the business of URC. A Leased Employee shall be deemed to have been
terminated without cause if he or she terminates employment because of a refusal
to accept a transfer to a business location with URC after July 1, 2003, which
is more than fifty miles from his or her location of employment as of July 1,
2003, or if his or her job duties or employment status with RSUI are materially
and adversely altered by URC, without his or her consent, from his duties or
status immediately prior to July 1, 2003.

                  "COBRA" means Section 601 et seq. of ERISA and Section 4980B
of the Code and state and local laws of similar import, including all rules and
regulations promulgated thereunder.

                  "Leased Employee" means any RSUI Employee who performs
services on behalf of URC after July 1, 2003.

                  "RSUI Employee" means each of the active, full and part-time
employees of Royal Indemnity who are identified on Schedule 11.1(a) of the
Acquisition Agreement and any New Hire.

                  "Severance Costs" means the sum of (i) the amount paid by
Royal Indemnity to any Terminated Employee and the cost of any severance
benefits provided to such Terminated Employee pursuant to the severance plans
and policies of Royal Indemnity in effect during the Term, (ii) the additional
costs, if any, paid or incurred by Royal Indemnity as a result of COBRA coverage
with respect to any Terminated Employee and any "qualifying event" that occurs
with respect to any Leased Employee during the Term, (iii) the amount of the
payment, if any, to a Terminated Employee in

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respect of accrued Paid Time Off ("PTO") pursuant to the vacation pay/PTO plan
and policies of Royal Indemnity in effect at the time of termination of the
Terminated Employee, (iv) the Taxes payable (without duplication) in respect of
the amounts payable in respect of the Terminated Employee that are paid by Royal
Indemnity, and (v) the amount of any additional expense of Royal Indemnity
incurred on behalf of Terminated Employees at the request of URC.

                  "Taxes" means the amount of federal, state and local income
and employment taxes payable by Royal Indemnity (exclusive of any amount payable
or borne by, or deducted from, amounts otherwise payable to any Leased Employee
or Terminated Employee) and other withholdings or payments required by federal,
state or local law or regulations, including but not limited to, Social Security
taxes paid in accordance with the Federal Insurance Contribution Act, but not
including the Medicare portion of contributions in respect of the Federal
Insurance Contribution Act, Federal Unemployment Tax Act, and any taxes or other
charges in respect of workers' compensation and unemployment insurance benefits.

                  "Terminated Employee" means any Leased Employee who is
terminated at the request of URC other than for Cause, including any Leased
Employee who declines to accept URC's offer of employment (as contemplated by
Article IX) and does not become a Transferred Employee.

                  "Transferred Employee" means a Leased Employee who becomes an
active employee of URC on January 1, 2004.

                  Any other capitalized term used herein and not otherwise
defined shall have the meaning ascribed to such term in the Acquisition
Agreement.

                  Whenever the singular term is used in the Agreement, the same
shall include the plural, and whenever the plural is used in the Agreement, the
same shall include the singular, where appropriate.

                                   ARTICLE II

                                      Term

                  The term of this Agreement (the "Term") shall commence (or be
deemed to have commenced) on 12:01 a.m. (Eastern time) on July 1, 2003, and end
on 11:59:59 p.m. on December 31, 2003; provided that for each Leased Employee,
the time used to determine the expiration of the Term shall be the local time at
such Leased Employee's primary work location. Notwithstanding the expiration of
the Term, the obligations of Royal Indemnity and URC hereunder shall survive the
expiration of this Agreement.

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                                  ARTICLE III

                                    Staffing

                  (a)      During the Term, Royal Indemnity agrees to use its
reasonable best efforts to continue to employ the Leased Employees and to make
the Leased Employees available exclusively to URC (or its Affiliates) to perform
those services performed by the RSUI Employees prior to July 1, 2003, in
connection with the business and activities previously conducted by URC;
provided, however, that Royal Indemnity shall not be required to incur any
increased cost or expense not currently incurred or paid by Royal Indemnity
related to any Leased Employee to continue such Leased Employee's employment
except for those costs and expenses for which Royal Indemnity is entitled to
reimbursement by URC hereunder, and provided further, that during the Term, no
Leased Employee shall be transferred to, nor shall the services of any Leased
Employee be shared with, Royal Indemnity or its Affiliates. Further, upon the
request of URC, Royal Indemnity shall use reasonable efforts to hire individuals
requested by URC and shall terminate the employment of any Leased Employee as of
a date specified by URC, provided such employment and/or termination is not in
violation of Royal Indemnity's employment policies and procedures or applicable
law, as reasonably determined by Royal Indemnity. During the Term, Royal
Indemnity agrees that it shall not terminate the employment of any Leased
Employee without the prior consent of URC, which shall not be unreasonably
withheld. During the Term, Royal Indemnity shall use its reasonable best efforts
not to enter into any collective bargaining agreement or any labor contract with
any labor union or association representing any Leased Employees unless
otherwise required by applicable law.

                  (b)      Nothing contained herein shall preclude URC (or any
Affiliate) from simultaneously employing any individual, (including any Leased
Employee) for all or any part of the Term, or from electing or appointing any
Leased Employee as an officer of, or to a position with, URC (or any Affiliate)
during the Term. No provision of this Agreement shall be construed as limiting
or modifying the terms of any employment agreement between URC (or any
Affiliate) and any Leased Employee. Notwithstanding any provision in this
Agreement to the contrary, during the Term and for a period of twelve (12)
months following the expiration of the Term, URC (or any Affiliate) may not
employ any RSUI Employee who does not become a Leased Employee.

                                   ARTICLE IV

                                    Payments

                  (a)      In exchange for Royal Indemnity's provision of
staffing services to URC hereunder, URC shall pay to Royal Indemnity, after
receiving a written statement from Royal Indemnity (not more frequently than
bi-weekly) setting forth the details and providing reasonable documentation
thereof, the following amounts paid or incurred by Royal Indemnity related to
the Leased Employees: (i) an amount equal to 135% of the Compensation (as such
term is defined in Article VI, below) paid to, or accrued by, the Leased
Employees during the Term, (ii) any and all Special Payments (as such term is

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defined in Article VI) paid by URC to or on behalf of the Leased Employees from
time to time during the Term, (iii) all Taxes payable on or with respect to the
employment of the Leased Employees or the compensation payable to them during
the Term, and (iv) all other reasonably documented out-of-pocket expenses
incurred by Royal Indemnity and previously approved or authorized by URC related
to the Leased Employees during the Term. For purposes of determining the amount
of Compensation earned in, or with respect to, any period, the Compensation
payable to an employee in respect of a particular period, i.e., annually,
monthly, weekly, shall be deemed earned ratably with respect to each calendar
day in such period.

                  (b)      In addition to the foregoing amounts payable to Royal
Indemnity for providing the staffing services to URC during the Term, URC shall
pay to Royal Indemnity all Severance Costs, whether incurred by Royal Indemnity
during or after the Term in connection with any Leased Employee. Royal Indemnity
shall periodically (not more frequently than bi-weekly) submit a written
statement to URC setting forth in reasonable detail the Severance Costs paid by
Royal Indemnity since the last such statement.

                  (c)      All amounts set forth on the statements submitted to
URC by Royal Indemnity shall be paid by URC within two (2) weeks after the date
such statement is submitted to URC. Notwithstanding any provision of this
Agreement or rule of law to the contrary, Royal Indemnity may terminate this
Agreement in the event URC fails after the Closing to pay at least 100% of any
Compensation provided by Royal Indemnity to Leased Employees at the time set
forth herein; provided that Royal Indemnity first provides URC at least thirty
(30) days' written notice of its failure to pay and Royal Indemnity's intent to
terminate the Agreement at the end of the 30-day period if such payment is not
made by the end of such 30-day period. In addition to all other relief
available, URC shall pay Royal Indemnity interest on any amounts payable beyond
the due date at the Applicable Rate.

                                    ARTICLE V

                                   Supervision

                  All Leased Employees shall be subject to the management and
direction of URC, including the designation of tasks to be performed and the
method of accomplishing such tasks. URC shall have reasonable access during
regular working hours to all Records relating to the Leased Employees; provided
that Royal Indemnity and URC shall observe all privacy laws with respect to the
Leased Employees' health and personnel information. Royal Indemnity shall
promptly notify URC if Royal Indemnity or any Affiliate receives notice of any
Leased Employee's actual, pending or threatened termination of employment with
Royal Indemnity (other than as a result of the request of URC) or intent not to
accept the offer of employment by URC or its specified Affiliates at the end of
the Term.

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                                   ARTICLE VI

                               Wages and Salaries

                  Royal Indemnity will be responsible for paying and shall pay
to or on behalf of each Leased Employee all wages, salaries and other
compensation earned during the Term (collectively "Compensation"), for deducting
all employment taxes, withholdings and other legally required contributions
(such as in the nature of social security payments) which are required to be
deducted from such Compensation, for paying all Taxes on or with respect to such
Compensation and for any reporting, disclosure or withholding obligations in
connection therewith. The rate of Compensation payable to each Leased Employee
immediately prior to July 1, 2003, (or, in the case of any individual hired at
the request of URC, the rate of Compensation as approved by URC) shall not be
increased or decreased by Royal Indemnity during the Term without the prior
consent of URC, unless otherwise required in accordance with applicable law;
provided, however, that Royal Indemnity shall implement such changes in the rate
of Compensation of the Leased Employees and Royal Indemnity shall make such
special, non-recurring, non-performance based payments (including, for example,
any retention payments or sign-on bonuses) or reimburse such other compensatory
amounts as directed by URC ("Special Payments"). Notwithstanding the foregoing,
the sum of all Compensation and any Special Payments (excluding a one-time
maximum aggregate payment of $2.250 million made to Leased Employees in the form
of a retention or non-performance based bonus) paid to the Leased Employees (1)
during any bi-weekly pay period shall not exceed $1,000,000; and (2) during the
Term shall not in the aggregate exceed $12,500,000. URC shall not be obligated
to pay any Compensation to the Leased Employees directly, nor shall URC be
responsible for paying directly to any governmental agency any Taxes,
withholdings, or other legally required contributions (such as in the nature of
social security payments due), or for reporting or disclosure obligations in
connection therewith with respect to the Leased Employees. Royal Indemnity shall
not be obligated to pay as Compensation, and shall not pay, the 2003 Bonus
Payment. Nothing herein shall be interpreted as limiting the obligation of URC
to make payments to Royal Indemnity pursuant to Article IV.

                                   ARTICLE VII

                                Employee Benefits

                  During the Term, the Leased Employees shall remain
participants in the same benefit plans and programs of Royal Indemnity provided
to similarly situated Royal Indemnity employees who are not Leased Employees.
During the Term, URC shall not be obligated to provide any employee benefits to
the Leased Employees. During the Term, Royal Indemnity shall also continue in
effect the current general liability and professional liability insurance
covering the Leased Employees to the same extent provided to similarly situated
Royal Indemnity employees, provided such coverage is permitted under the terms
of the applicable insurance policies. Royal Indemnity shall also retain during
the Term and thereafter: (i) responsibility and liability for any severance
amounts or benefits, including but not limited to COBRA coverage, to which

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any Leased Employee who does not become a Transferred Employee may be entitled;
and (ii) the obligation with respect to COBRA coverage for any "qualifying
event" occurring during the Term with respect to any RSUI Employee (but the
foregoing shall not be interpreted as limiting the obligation of URC to make
payments to Royal Indemnity pursuant to Article IV). No amount shall be payable
by URC to Royal Indemnity for providing any of the employee benefits, it being
intended that the amount payable to Royal Indemnity pursuant to Article IV will
fully compensate Royal Indemnity for all employee benefits earned by Leased
Employees and paid or provided by Royal Indemnity to the Leased Employees (and
their spouses and dependents) during or after the Term. In addition, Royal
Indemnity agrees not to make any change with respect to any severance plan and
policy or any vacation pay/PTO plan and policy for any Leased Employee other
than a change that is uniformly applicable to all similarly situated Royal
Indemnity employees.

                                  ARTICLE VIII

                               Personnel Policies

                  Except as specified herein, or as required by law, all terms
and conditions of employment applicable to the Leased Employees shall be
governed by the personnel policies and practices generally applicable to all
employees of Royal Indemnity, as such policies and practices may be amended from
time to time during the Term.

                                   ARTICLE IX

                                    Transfer

                  Under the terms of the Acquisition Agreement, RSUI or an
Affiliates, which includes URC, shall make an offer of employment to each Leased
Employee, such employment to commence during or immediately after the end of the
Term. Royal Indemnity and URC shall cooperate in all reasonable respects in
connection with, the transfer of employment of any Leased Employee to URC or its
specified Affiliates. Royal Indemnity shall not (and shall cause its Affiliates
not to) take any action to solicit, aid or encourage any Leased Employee not to
become a Transferred Employee.

                                   ARTICLE X

                    Covenants, Warranties and Indemnification

                  Each of URC and Royal Indemnity warrants to the other that it
will not discriminate against candidates for leased employment or Leased
Employees on the basis of race, gender, color, religion, national origin, age,
disability, veteran's status, or any other protected classification, or because
a Leased Employee has reported or is about to report a violation or suspected
violation of any law. Each of URC and Royal Indemnity further warrants to the
other that it will not sexually or otherwise harass any Leased Employee.

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                  URC shall indemnify and hold Royal Indemnity and its
shareholders, directors, employees, agents, successors, and assigns harmless for
any consequences or liabilities, including attorney's fees, costs, and other
expenses, which arise from allegations with respect to candidates for leased
employment or Leased Employees, including but not limited to allegations that
candidates for leased employment or Leased Employees were harassed,
discriminated against, made to work in an unsafe work environment, not paid
properly due to URC's failure to provide accurate information or verify
information as accurate, not properly supervised, or not properly licensed or
certified. This hold harmless provision shall also extend to any claims for any
damages or injunctive relief against Royal Indemnity or its agents which arise
out of URC's acts, errors, omissions, negligent acts, statutory violations or
failure to adhere to some other duty or obligation.

                  Royal Indemnity agrees that it will use its good faith best
efforts to comply with all legal and regulatory requirements in connection with
the employment of the Leased Employees.

                                   ARTICLE XI

                            Miscellaneous Provisions

         SECTION 11.1. No Third Party Beneficiaries. This Agreement and all
conditions and provisions hereof are for the sole and exclusive benefit of the
parties hereto and their respective successors and assigns and are not intended
for the benefit of any other person. In particular, nothing in this Agreement,
express or implied, is intended to or shall confer upon any person other than
the parties hereto any rights, benefits or remedies of any nature whatsoever
under or by reason of this Agreement or shall be construed to give any Leased
Employee or his or her respective heirs, assigns or beneficiaries any legal or
equitable right, remedy or claim under or in respect to this Agreement or any
provision contained herein.

         SECTION 11.2. Notices. All notices, requests, claims, demands and other
communications hereunder shall be in writing and shall be given (and shall be
deemed to have been duly given upon receipt) by delivery in person, by telecopy
(delivery of which is confirmed), by courier (delivery of which is confirmed) or
by registered or certified mail (postage prepaid, return receipt requested) to
the respective parties to this Agreement as follows:

                       If to URC:

                       James A. Dixon
                       Chairman
                       Underwriters Reinsurance Company
                       945 East Paces Ferry Road
                       Atlanta, GA 30326
                       Telephone: (404) 266-3020
                       Facsimile: (404) 364-6480

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                       With concurrent copies to (which shall not
                       constitute notice to URC):

                       Robert M. Hart, Esq.
                       General Counsel
                       Alleghany Corporation
                       375 Park Avenue
                       Suite 3201
                       New York, New York  10152
                       Telephone: (212) 752-1356
                       Facsimile: (212) 759-8149

                       Richard D. Belford, Esq.
                       Swidler Berlin Shereff Friedman, LLP
                       The Chrysler Building, 405 Lexington Avenue
                       New York, N.Y. 10017
                       Telephone: (212) 891-9449
                       Facsimile: (212) 891-9598

                       If to Royal Indemnity:

                       Laura Lawrence, Esq.
                       General Counsel
                       Royal Indemnity Company
                       9300 Arrowpoint Road
                       Charlotte, NC 28273
                       Telephone: (704) 522-2851
                       Facsimile: (704) 522-2313

                       With concurrent copies to (which shall not
                       constitute notice to Royal Indemnity):

                       Michael Ott, Esq.
                       Assistant General Counsel
                       Royal Indemnity Company
                       9300 Arrowpoint Road
                       Charlotte, NC 28273
                       Telephone: (704) 522-3522
                       Facsimile: (704) 522-2688

                       and

                       Robert J. Sullivan, Esq.
                       Skadden, Arps, Slate, Meagher & Flom LLP
                       Four Times Square
                       New York, New York 10036

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                       Telephone: (212) 735-3000
                       Facsimile: 212-735-2000

or to such other address as the person to whom notice is given may have
previously furnished to the others in writing in the manner set forth above. In
no event shall the provision of notice pursuant to this Section 11.2 constitute
notice for service of any writ, process or summons in any suit, action or other
proceeding.

         SECTION 11.3. Governing Law. This Agreement shall be governed by and
construed in accordance with the laws of the State of Delaware, regardless of
the laws that might otherwise govern under applicable principles of conflicts of
laws thereof.

         SECTION 11.4. Descriptive Headings. The descriptive article and section
headings herein are inserted for convenience of reference only and are not
intended to be part of or to affect the meaning or interpretation of this
Agreement.

         SECTION 11.5. Severability. Any term or provision of this Agreement
which is invalid or unenforceable in any jurisdiction shall, as to that
jurisdiction, be ineffective to the extent of such invalidity or
unenforceability without rendering invalid or unenforceable the remaining terms
and provisions of this Agreement or affecting the validity or enforceability of
any of the terms or provisions of this Agreement in any other jurisdiction. If
any provision of this Agreement is so broad as to be unenforceable, the
provision shall be interpreted to be only so broad as would be enforceable.

         SECTION 11.6. Relationship of Parties. Nothing herein contained shall
constitute Royal Indemnity or any of its respective Affiliates, on the one hand,
and URC or any of its Affiliates, on the other hand, as members of any
partnership, joint venture, association, syndicate, or other entity, or be
deemed to confer on any of them any express, implied, or apparent authority to
incur any obligation or liability on behalf of another party, except as
otherwise expressly provided herein.

         SECTION 11.7. Assignment; Binding Effect. Neither this Agreement, nor
any of the rights, interests or obligations hereunder, may be assigned, in whole
or in part, by any party without the prior written consent of the other parties
hereto and any such assignment that is not consented to shall be null and void;
provided, that upon prior written notice, either party may assign to any of its
Affiliates all or any part of its rights, interests or obligations under this
Agreement (including, without limitation, the staffing services of all or any
Leased Employee for all or any part of the Term); provided, further, that no
such assignment shall relieve any party of any liability under this Agreement.
It being understood for the avoidance of doubt that in the event either party
shall merge or consolidate with another person or entity, such merger or
consolidation shall not be deemed to be an assignment and, accordingly, no
consent of any person shall be required hereunder. This Agreement shall be
binding upon and inure to the benefit of the parties and their respective
successors, permitted assigns and legal representatives.

         SECTION 11.8. Integration. This Agreement and the Acquisition Agreement
constitute the entire agreement among Royal Indemnity and URC relating to

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the subject matter hereof and supersede all prior and contemporaneous
agreements, understandings, negotiations, and discussions, whether oral or
written, of Royal Indemnity and URC with respect thereto and there are no
general or specific warranties, representations or other agreements by or among
Royal Indemnity and URC in connection with the entering into of this Agreement
or the subject matter hereof except as specifically set forth or contemplated
herein or in the Acquisition Agreement. Notwithstanding the foregoing, except as
specifically set forth herein, this Agreement shall not be interpreted as
modifying the obligations and rights of the parties as set forth in the
Acquisition Agreement.

         SECTION 11.9. Amendments. This Agreement may not be amended, modified
or waived except by an instrument or instruments in writing signed and delivered
on behalf of each of the parties hereto.

         SECTION 11.10. Counterparts. This Agreement may be executed in
counterparts, each of which shall be deemed to be an original, but all of which
shall constitute one and the same agreement.

         SECTION 11.11. Consent to Jurisdiction. Each of the parties hereto
irrevocably and unconditionally submits to the exclusive jurisdiction of the
state and federal courts located in the State of Delaware for the purpose of
enforcing this Agreement. The parties shall take such actions as are within
their control to cause any matter contemplated hereby to be assigned to the
Chancery Court of the State of Delaware. In any action, suit or other
proceeding, each of the parties hereto irrevocably and unconditionally waives
and agree not to assert by way of motion, as a defense or otherwise any claims
that it is not subject to the jurisdiction of the above courts, that such action
or suit is brought in an inconvenient forum or that the venue of such action,
suit or other proceeding is improper. Each of the parties hereto also agrees
that any final and unappealable judgment against a party hereto in connection
with any action, suit or other proceeding shall be conclusive and binding on
such party and that such award or judgment may be enforced in any court of
competent jurisdiction, either within or outside the United States. A certified
or exemplified copy of such award or judgment shall be conclusive evidence of
the fact and amount of such award or judgment.

         SECTION 11.12. WAIVER OF JURY TRIAL. EACH OF THE PARTIES HERETO HEREBY
IRREVOCABLY WAIVES ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING
ARISING OUT OF OR RELATED TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED
HEREBY.

         SECTION 11.13. Interpretation.

                  (a)      When a reference is made in this Agreement to a
Section or Article, such reference shall be to a section or article of this
Agreement unless otherwise clearly indicated to the contrary. Whenever the words
"include," "includes" or "including" are used in this Agreement they shall be
deemed to be followed by the words "without limitation." The words "hereof,"
"herein" and "herewith" and words of similar import shall, unless otherwise
stated, be construed to refer to this Agreement as a whole

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and not to any particular provision of this Agreement. The meaning assigned to
each term used in this Agreement shall be equally applicable to both the
singular and the plural forms of such term, and words denoting any gender shall
include all genders. Where a word or phrase is defined herein, each of its other
grammatical forms shall have a corresponding meaning.

                  (b)      URC and Royal Indemnity have participated jointly in
the negotiation and drafting of this Agreement; consequently, in the event an
ambiguity or question of intent or interpretation arises, this Agreement shall
be construed as if drafted jointly by the parties thereto, and no presumption or
burden of proof shall arise favoring or disfavoring any party by virtue of the
authorship of any provisions of this Agreement.

         SECTION 11.14. Waiver. No consent or waiver, express or implied, by any
party to or of any breach or default by any other party in the performance by
such other party of its obligations hereunder shall be deemed or construed to be
a consent or waiver to or of any other breach or default in the performance of
obligations hereunder by such other party hereunder. Failure on the part of any
party to complain of any act or failure to act of any other party or to declare
any other party in default, irrespective of how long such failure continues,
shall not constitute a waiver by such first party of any of its rights
hereunder.

         SECTION 11.15. IP. Royal Indemnity hereby transfers, conveys and
assigns to URC its entire right, title and interest in and to all copyrights,
patents, trade secrets, trademarks and other intellectual property (in each
case, both in the United States and foreign countries), including, without
limitation, any and all writings, drawings, inventions, designs, processes,
discoveries, ideas and computer programs (including software codes), including
any improvements and modifications and any other work product, documentation,
notes and materials related to the foregoing (whether or not copyrightable or
patentable), developed or created by one or more of the Leased Employees during
the Term (collectively, the "Developments"). Royal Indemnity hereby agrees to
cooperate fully with URC, both during and after the Term in whatever respect URC
reasonably deems necessary or desirable with regard to the procurements,
maintenance and enforcement of all rights relating to any of the Developments,
including, without limitation, executing, acknowledging and delivering and
causing its applicable employees to execute, acknowledge and deliver all papers
and relevant information, including, without limitation, copyright applications,
patent applications, affidavits, declarations, oaths, testimony in connection
with a proceeding, formal assignments and conveyances, assignments of priority
rights and powers of attorney. Royal Indemnity further agrees that if URC is
unable, after reasonable effort, to secure Royal Indemnity's signature on any
such papers, any executive officer of URC shall be entitled to execute any such
papers as the agent and the attorney in fact of Royal Indemnity, and Royal
Indemnity hereby irrevocably designates and appoints each executive officer of
URC as its agent and attorney-in-fact to execute any such papers on its behalf,
and to take any and all actions as URC, with the full power of substitution
therein, may reasonably deem necessary or desirable to protect its rights and
interests in any Development, under the conditions described in this sentence.

                                       12
<PAGE>

                  IN WITNESS WHEREOF, the parties hereto have caused this
Agreement to be executed by their duty authorized representatives as the date
first above written.

                                            ROYAL INDEMNITY COMPANY

                                            By: /s/ Stephen M. Mulready
                                                ----------------------------
                                                Name:  Stephen M. Mulready
                                                Title: President and Chief
                                                       Executive Officer

                                            UNDERWRITERS REINSURANCE COMPANY

                                            By: /s/ James P. Slattery
                                                -----------------------------
                                                Name:  James P. Slattery
                                                Title: President<PAGE>

                                                                   EXHIBIT 10.34

                        MANAGING GENERAL AGENCY AGREEMENT

                                 BY AND BETWEEN

                       ROYAL SPECIALTY UNDERWRITING, INC.,

                           (As Managing General Agent)

                            ROYAL INDEMNITY COMPANY,

                     ROYAL SURPLUS LINES INSURANCE COMPANY,

                       ROYAL INSURANCE COMPANY OF AMERICA,

                                       AND

                       LANDMARK AMERICAN INSURANCE COMPANY

                               DATED JULY 1, 2003

<PAGE>

                                TABLE OF CONTENTS

<TABLE>
<S>                                                                                 <C>
ARTICLE I DEFINITIONS...........................................................     2
   SECTION 1.1 DEFINITIONS......................................................     2

ARTICLE II APPOINTMENT..........................................................     3

ARTICLE III TERM OF MGA AGREEMENT...............................................     4

ARTICLE IV MGA SERVICES TO BE PERFORMED BY RSUI.................................     4
   SECTION 4.1 MGA SERVICES.....................................................     4
   SECTION 4.2 UNDERWRITING SERVICES............................................     4
   SECTION 4.3 ADMINISTRATIVE SERVICES..........................................     4
   SECTION 4.4 HANDLING OF ROYAL INSURER AFFILIATES' FUNDS......................     5
   SECTION 4.5 BOOKS AND RECORDS................................................     5

ARTICLE V UNAUTHORIZED ACTIONS..................................................     6

ARTICLE VI TERMINATION..........................................................     6

ARTICLE VII CONFIDENTIALITY.....................................................     7
   SECTION 7.1 USE OF CONFIDENTIAL INFORMATION..................................     7
   SECTION 7.2 CONFIDENTIALITY OF INDIVIDUALS...................................     7
   SECTION 7.3 DISCLOSURE.......................................................     7

ARTICLE VIII INDEMNIFICATION....................................................     8
   SECTION 8.1 INDEMNIFICATION BY THE ROYAL INSURER AFFILIATES..................     8
   SECTION 8.2 INDEMNIFICATION BY RSUI..........................................     8
   SECTION 8.3 INDEMNIFICATION PROCEDURE........................................     8

ARTICLE IX ARBITRATION..........................................................     8
   SECTION 9.1 ARBITRATION......................................................     9
   SECTION 9.2 NOTICE OF ARBITRATION............................................     9
   SECTION 9.3 ARBITRATION PANEL................................................     9
   SECTION 9.4 SUBMISSION OF BRIEFS.............................................     9
   SECTION 9.5 ARBITRATION BOARD'S DECISION.....................................    10
   SECTION 9.6 JURISDICTION.....................................................    10
   SECTION 9.7 EXPENSES.........................................................    10
   SECTION 9.8 PRODUCTION OF DOCUMENTS AND WITNESSES............................    10
   SECTION 9.9 RELIEF AVAILABLE.................................................    10
   SECTION 9.10 CONSOLIDATION...................................................    11

ARTICLE X MISCELLANEOUS.........................................................    11
   SECTION 10.1 COOPERATION.....................................................    11
   SECTION 10.2 AMENDMENT, MODIFICATION AND WAIVER..............................    11
   SECTION 10.3 ENTIRE AGREEMENT................................................    11
   SECTION 10.4 GOVERNING LAW...................................................    11
   SECTION 10.5 SEVERABILITY....................................................    11
   SECTION 10.6 COUNTERPARTS....................................................    12
   SECTION 10.7 CONSENT TO JURISDICTION.........................................    12
   SECTION 10.8 THIRD PARTY BENEFICIARIES.......................................    12
   SECTION 10.9 NON-ASSIGNABILITY...............................................    12
</TABLE>

                                        i
<PAGE>

<TABLE>
<S>                                                                                 <C>
   SECTION 10.10 SPECIFIC PERFORMANCE...........................................    12
   SECTION 10.11 DESCRIPTIVE HEADINGS...........................................    12
   SECTION 10.12 USE OF NAME....................................................    12
   SECTION 10.13 NOTICES........................................................    13
   SECTION 10.14 INTERPRETATION.................................................    14
</TABLE>

   EXHIBIT A          LIST OF ROYAL INSURER AFFILIATES

   EXHIBIT B          UNDERWRITING GUIDELINES

                                       ii
<PAGE>

                        MANAGING GENERAL AGENCY AGREEMENT

         This Managing General Agency Agreement (the "MGA Agreement"), dated
July 1, 2003 is being entered into by and between Royal Specialty Underwriting,
Inc., a Georgia business corporation ("RSUI"), and certain insurer affiliates of
Royal Group, Inc, a Delaware business corporation ("Royal"), listed on Exhibit A
hereto (the "Royal Insurer Affiliates").

                                    RECITALS:

         WHEREAS, prior to the date hereof, RSUI has underwritten certain
insurance and reinsurance contracts on behalf of the Royal Insurer Affiliates
and administered the claims and reinsurance recoverables relating to such
contracts;

         WHEREAS, pursuant to the Acquisition Agreement ("Acquisition
Agreement"), dated as of June 6, 2003, by and between Royal and Alleghany
Insurance Holdings LLC, a Delaware limited liability company ("AIHL"), the
parties agreed, among other things, that Royal will sell to Alleghany, and
Alleghany will purchase from Royal, all of the issued and outstanding shares of
common stock of RSUI; and

         WHEREAS, as part of such Acquisition Agreement, Royal and Alleghany
have agreed that Royal shall cause the Royal Insurer Affiliates, and Alleghany
shall cause RSUI, to enter into this MGA Agreement; and

         WHEREAS, in connection with the Acquisition Agreement, certain of
Royal's insurer affiliates, namely, Royal Indemnity Company, a Delaware property
and casualty insurance company ("RIC"), Royal Surplus Lines Insurance Company, a
Connecticut surplus lines insurer ("RSLIC") and Landmark American Insurance
Company, an Oklahoma insurance company ("Landmark"), will each enter into a
quota share reinsurance agreement with Underwriters Reinsurance Company, a New
Hampshire stock insurance company ("URC").

         NOW, THEREFORE, in consideration of these promises and the terms of
conditions set forth herein, and in consideration of the parties and certain of
their affiliates entering into the RIC Quota Share Reinsurance Agreement, the
RSLIC Quota Share Reinsurance Agreement, the Landmark Quota Share Reinsurance
Agreement (defined below) (collectively, the "Quota Share Reinsurance
Agreements"), the RIC Administrative Services Agreement, the RSLIC
Administrative Services Agreement, the RICA Administrative Services Agreement
and the Landmark Administrative Services Agreement (collectively, the
"Administrative Services Agreements") and the Landmark Purchase Agreement, the
receipt and sufficiency of which are hereby acknowledged, RSUI and the Royal
Insurer Affiliates agree as follows:

                                       1
<PAGE>

                                    ARTICLE I

                                   DEFINITIONS

          SECTION 1.1 DEFINITIONS Capitalized terms used but not defined herein
and which are defined in the Quota Share Reinsurance Agreements shall have the
meanings ascribed to them in such agreements. As used in this MGA Agreement, the
following terms shall have the meanings set forth herein:

                  "Acquisition Agreement" shall have the meaning set forth in
                  the recitals.

                  "Administrative Services Agreements" shall mean the RIC
                  Administrative Services Agreement, the RSLIC Administrative
                  Services Agreement, the RICA Administrative Services Agreement
                  and the Landmark Administrative Services Agreement,
                  collectively.

                  "AIHL" shall have the meaning set forth in the recitals.

                  "Books and Records" shall have the meaning set forth in the
                  Administrative Services Agreements.

                  "GNIC" shall mean Guaranty National Insurance Company, a
                  Colorado insurance company and an indirect, wholly-owned
                  subsidiary of Royal.

                  "Governmental Entity" shall have the meaning set forth in the
                  Acquisition Agreement.

                  "Landmark Ancillary Agreement" shall have the meaning set
                  forth in the Landmark Purchase Agreement.

                  "Landmark Purchase Agreement" shall mean the stock purchase
                  agreement by and between AIHL and GNIC, dated June 6, 2003.

                  "Landmark Quota Share Reinsurance Agreement" shall have the
                  meaning set forth in the Landmark Quota Share Reinsurance
                  Agreement.

                  "MGA Services" shall have the meaning set forth in Section
                  4.1.

                  "Permits" shall mean all permits, licenses, authorizations,
                  variances, exemptions, orders, registrations and approvals of
                  all Governmental Entities which are necessary for the conduct
                  of RSUI's business relative to its performance of the MGA
                  Services under this MGA Agreement.

                  "Person" shall have the meaning set forth in the Acquisition
                  Agreement.

                  "Quota Share Reinsurance Agreements" shall mean the RIC Quota
                  Share Reinsurance Agreement, the RSLIC Quota Share Reinsurance
                  Agreement and the Landmark Quota Share Reinsurance Agreement,
                  collectively.

                                       2
<PAGE>

                  "Representative" shall have the meaning set forth in the
                  Acquisition Agreement.

                  "RIC" shall have the meaning set forth in the recitals.

                  "RICA" shall mean Royal Insurance Company of America.

                  "RSLIC" shall have the meaning set forth in the recitals.

                  "Royal" shall have the meaning set forth in the introduction.

                  "Royal Affiliate Insurers Indemnified Party" shall have the
                  meaning in Section 8.2.

                  "Royal Insurer Affiliates" shall have the meaning set forth in
                  the introduction.

                  "RSUI" shall have the meaning set forth in the introduction
                  hereto.

                  "RSUI Indemnified Party" shall have the meaning set forth in
                  Section 8.1.

                  "Underwriting Guidelines" shall have the meaning set forth in
                  Section 4.2.

                  "URC" shall have meaning set forth in the recitals.

                                    ARTICLE II

                                   APPOINTMENT

         SECTION 2.1 The Royal Insurer Affiliates hereby appoint RSUI as their
managing general agent to perform on and after the Closing Date the services set
forth in Article IV of this MGA Agreement with respect to the Reinsured
Contracts ("MGA Services"). RSUI hereby accepts such appointment and agrees to
render the MGA Services to the Royal Insurer Affiliates in the manner and to the
extent set forth herein. The Royal Insurer Affiliates shall have ultimate
responsibility for, and control, of all services performed hereunder by RSUI.

         SECTION 2.2 RSUI shall, at all times, act as an independent contractor.
The relationship created herein is not to be construed as a joint venture
between RSUI and the Royal Insurer Affiliates or any form of partnership between
RSUI and the Royal Insurer Affiliates.

         SECTION 2.3 In entering into this MGA Agreement, RSUI warrants and
represents that it has the requisite Permits to carry out the duties and
obligations required of it under this MGA Agreement. For the duration of this
MGA Agreement, RSUI hereby covenants that it will: (i) employ and retain an
adequate number of employees with the experience, skill and expertise to perform
the MGA Services RSUI is obligated to perform under this

                                       3
<PAGE>

MGA Agreement; (ii) maintain any and all Permits required under Applicable Law
to perform its obligations under the MGA Agreement and (iii) perform the MGA
Services hereunder in accordance with all Applicable Law.

                                   ARTICLE III

                              TERM OF MGA AGREEMENT

         SECTION 3.1 This MGA Agreement shall be continuous in nature and shall
remain in effect until terminated in accordance with the provisions set forth in
Article VI; provided, however, notwithstanding anything in this Article III or
this MGA Agreement to the contrary, RSUI shall automatically cease underwriting,
issuing or binding all Reinsured Contracts in the name of the Royal Insurer
Affiliates twelve months from the date of this MGA Agreement. Notwithstanding
the termination of RSUI's underwriting authority, however, all of the other
authority granted to RSUI under this MGA Agreement shall continue until the
earlier of when: (i) all of the Reinsured Liabilities are extinguished or (ii)
this MGA Agreement is terminated.

                                   ARTICLE IV

                      MGA SERVICES TO BE PERFORMED BY RSUI

         SECTION 4.1 MGA SERVICES. RSUI shall perform all the services set forth
in Sections 4.2, 4.3, 4.4 and 4.5 of this Article IV (collectively, the "MGA
Services").

         SECTION 4.2 UNDERWRITING SERVICES. RSUI shall solicit, underwrite, bind
and issue Reinsured Contracts strictly in accordance with Royal Insurance
Affiliates' underwriting guidelines, which are attached as Exhibit B, as those
guidelines may be modified or amended from time-to-time by mutual agreement of
RSUI and the Royal Insurer Affiliates ("Underwriting Guidelines"). Each of RSUI
and the Royal Insurer Affiliates shall notify the other in writing of any
proposed changes that either RSUI or the Royal Insurer Affiliates would like to
be reflected in the Underwriting Guidelines.

         SECTION 4.3 ADMINISTRATIVE SERVICES

         (a)      RSUI shall investigate, adjust, settle, handle and process all
claims with respect to the Reinsured Contacts, including performing all the
services set forth in Section 3.1 of each of the Administrative Services
Agreements, subject to precisely the same terms and conditions, restrictions and
limitations set forth in the Administrative Services Agreements.

                                       4
<PAGE>

         (b)      (i) Notwithstanding anything in this Article IV of this MGA
Agreement or the Underwriting Guidelines to the contrary:

                  (A)      All claims relating to the Reinsured Contracts must
be reported to the Royal Insurer Affiliates in a timely manner.

                  (B)      At the request of any of the Royal Insurer
Affiliates, RSUI shall provide a report of any claim involving any Reinsured
Contract that is of a type set forth in Section 4(7) of Chapter 47 of Title 33
of the Georgia Insurance Code.

         SECTION 4.4 HANDLING OF ROYAL INSURER AFFILIATES' FUNDS

         (a)      All money received by RSUI on behalf of the Royal Insurer
Affiliates under this MGA Agreement shall be held by RSUI in a fiduciary
capacity in a segregated account at a bank which is a member of the Federal
Reserve System. Within five days of RSUI receiving any money on behalf of the
Royal Insurer Affiliates under this MGA Agreement, RSUI shall transfer such
money to such trust account.

         (b)      Prior to the transfer of any monies into the trust account,
RSUI shall place all funds its receives on behalf of the Royal Insurer
Affiliates in an account segregated from all other funds or monies held by RSUI
either on behalf of itself or on behalf of other third parties. RSUI shall not
commingle any of monies it receives on behalf of the Royal Insurer Affiliates
with any other funds.

         (c)      RSUI shall render accounts to the Royal Insurer Affiliates and
URC detailing all transactions under this MGA Agreement on a monthly basis. Such
accounting shall be performed on the same basis and in the same manner that RSUI
rendered such accounting to the Royal Insurer Affiliates immediately prior to
the Closing Date.

         SECTION 4.5 BOOKS AND RECORDS

         The duties and obligations of RSUI and the Royal Insurer Affiliates
with respect to the Books and Records shall be performed in accordance with the
requirements set forth under the Administrative Services Agreements.

         SECTION 4.6 PAYMENT FOR MGA SERVICES

         All of RSUI's compensation for the performance of the MGA Services
hereunder, as well as all expenses of any kind incurred by RSUI in the
performance of the MGA Services, shall be determined and paid solely by AIHL and
its Affiliates. Neither the Royal Insurer Affiliates nor any of their Affiliates
shall have any obligation whatsoever under this MGA Agreement to pay RSUI for
the MGA Services, or for any expenses incurred by RSUI in performing the MGA
Services.

                                       5
<PAGE>

                                    ARTICLE V

                              UNAUTHORIZED ACTIONS

         SECTION 5.1 Notwithstanding any other provision of this MGA Agreement
or the Administrative Services Agreements to the contrary, without the prior
written approval of the Royal Insurer Affiliates, RSUI shall not:

         (a)      issue, underwrite or bind any Reinsured Contracts in the name
of the Royal Insurer Affiliates on and after the first anniversary of this
Agreement;

         (b)      commit the Royal Insurer Affiliates to participate in any
insurance or reinsurance syndicates;

         (c)      appoint any producer without assuring that the producer is
lawfully licensed to transact the type of insurance for which he is appointed;

         (d)      collect any payment from a reinsurer or pay or commit a Royal
Insurer Affiliate to any claim settlement with a reinsurer, without the prior
approval of the applicable Royal Insurer Affiliate. If prior approval is given,
a report must be promptly forwarded to the applicable Royal Insurer Affiliate;
or

         (e)      jointly employ an individual who is employed with any of the
Royal Insurer Affiliates.

         Notwithstanding anything in this Section 5.1 to the contrary, RSUI
shall have the authority to bind reinsurance or retrocessions on behalf of the
Royal Insurer Affiliates pursuant to the terms and conditions of the
Administrative Services Agreements.

                                   ARTICLE VI

                                   TERMINATION

SECTION 6.1

         (a) The parties may terminate this Agreement on the same basis that the
parties may terminate the Administrative Services Agreement.

                                       6
<PAGE>

                                   ARTICLE VII

                                 CONFIDENTIALITY

         SECTION 7.1 USE OF CONFIDENTIAL INFORMATION. RSUI acknowledges that it
will have access to confidential and proprietary information concerning the
Royal Insurer Affiliates and their businesses, which information is not readily
available to the public, and acknowledge that RSUI and its Affiliates has taken
and will continue to take reasonable actions to ensure such information is not
made available to the public. RSUI further agrees that it will not at any time
(during the term hereof or thereafter) disclose to any Person (except its
Affiliates and the officers, directors, employees, agents and representatives of
RSUI and its Affiliates who require such information in order to perform their
duties in connection with the services provided hereunder), directly or
indirectly, or make any use of, for any purpose other than those contemplated by
this MGA Agreement, the Administrative Services Agreements and the Quota Share
Reinsurance Agreements, any information or trade secrets relating to the
Reinsured Contracts or the business affairs of the Royal Insurer Affiliates,
including the identity of and/or the compensation arrangements with, any
Affiliates of the Royal Insurer Affiliates and, so long as such information
remains confidential.

         SECTION 7.2 CONFIDENTIALITY OF INDIVIDUALS. Information that identifies
a Person covered under one of the Reinsured Contracts may be confidential. RSUI
shall take all reasonable precautions to prevent disclosure or use of
information identifying individuals covered under such Reinsured Contracts for a
purpose unrelated to the performance of its obligations under this MGA
Agreement. RSUI shall comply with all Applicable Laws as in effect on the date
hereof or as hereafter adopted or amended. With respect to Reinsured Contracts,
RSUI shall take all reasonable precautions to prevent disclosure or use of
information identifying individuals for a purpose unrelated to the performance
of its obligations under this MGA Agreement.

         SECTION 7.3 DISCLOSURE. RSUI may disclose confidential information in
the following circumstances:

                  (i)      to URC;

                  (ii)     in response to a court order or formal discovery
request after notice to the other party (to the extent such notice is reasonably
practicable); provided, however, that such disclosure shall be limited only to
the extent that is required by such court order or formal disclosure request;

                  (iii)    if a proper request is made by any regulatory
authority after notice to the other party (to the extent such notice is
reasonably practicable); provided, however, that such disclosure shall be
limited only to the extent that is required by such regulatory authority;

                  (iv)     as otherwise required by Applicable Law; or

                                       7
<PAGE>

                  (v)      as otherwise provided by the provisions of this MGA
Agreement.

                                  ARTICLE VIII

                                 INDEMNIFICATION

         SECTION 8.1 INDEMNIFICATION BY THE ROYAL INSURER AFFILIATES. The Royal
Insurer Affiliates shall indemnify RSUI and its officers, directors (each, an
"RSUI Indemnified Party") and shall hold each RSUI Indemnified Party harmless
from and against all Damages which are asserted against, imposed upon or
incurred by any RSUI Indemnified Party as a result of or in connection with the
performance by RSUI of the MGA Services, except to the extent that such Damages
are attributable to: (i) the negligence or willful misconduct of RSUI, its
officers, directors, employees or Representatives; or (ii) a breach by RSUI, its
officers, directors, employees or Representatives of its obligations under this
MGA Agreement.

         SECTION 8.2 INDEMNIFICATION BY RSUI. RSUI shall indemnify the Royal
Insurer Affiliates and its officers, directors and employees (each, a "Royal
Insurer Affiliates Indemnified Party") and shall hold each Royal Insurer
Affiliates Indemnified Party harmless from all Damages asserted against, imposed
upon or incurred by any of the Royal Insurer Affiliates Indemnified Party in the
performance by RSUI of the MGA Services to the extent such Damage is
attributable to: (i) the negligence or willful misconduct of RSUI, its officers,
directors, employees or Representatives; or (ii) a breach by RSUI, its officers,
directors employees or Representatives of its obligations under this MGA
Agreement.

         SECTION 8.3 INDEMNIFICATION PROCEDURE. In the event either the Royal
Insurer Affiliates or RSUI shall have a claim for indemnity against the other
party under the terms of this MGA Agreement, the parties shall follow the
procedures set forth in Article XIV of the Acquisition Agreement.

         SECTION 8.4 NO DUPLICATION. Any liability for indemnification hereunder
shall be determined without duplication of recovery by reason of (i) the state
of facts giving rise to such liability constituting a breach of more than one
representation, warranty, covenant or agreement or (ii) the liability of the
RSUI Indemnified Party or the Royal Insurer Affiliates Indemnified Party or any
Affiliate thereof under a Landmark Ancillary Agreement, the Acquisition
Agreement or an Ancillary Agreement (as such term is defined in the Acquisition
Agreement).

                                   ARTICLE IX

                                   ARBITRATION

                                       8
<PAGE>

         SECTION 9.1 ARBITRATION. As a condition precedent to any cause of
action, any and all disputes between RSUI and the Royal Insurer Affiliates
arising out of, relating to, or concerning this MGA Agreement, whether sounding
in contract or tort and whether arising during or after termination of this MGA
Agreement, shall be submitted to the decision of a board of arbitration composed
of two arbitrators and an umpire ("Board") meeting at a site in Wilmington,
Delaware. The arbitration shall be conducted under the Federal Arbitration Act
and shall proceed as set forth below.

         SECTION 9.2 NOTICE OF ARBITRATION. A notice requesting arbitration, or
any other notice made in connection therewith, shall be in writing and shall be
sent certified or registered mail, return receipt requested to the affected
parties. The notice requesting arbitration shall state in particulars all issues
to be resolved in the view of the claimant, shall appoint the arbitrator
selected by the claimant and shall set a tentative date for the hearing, which
date shall be no sooner than ninety (90) days and no later than one hundred
fifty (150) days from the date that the notice requesting arbitration is mailed.
Within thirty (30) days of receipt of claimant's notice, the respondent shall
notify claimant of any additional issues to be resolved in the arbitration and
of the name of its appointed arbitrator.

         SECTION 9.3 ARBITRATION PANEL. Unless otherwise mutually agreed, the
members of the Board shall be impartial and disinterested and shall be active or
former executive officers of property-casualty insurance companies, reinsurance
companies, or Lloyd's Underwriters or active or inactive lawyers with at least
twenty (20) years of experience in insurance and reinsurance. RSUI and the Royal
Insurer Affiliates shall each appoint an arbitrator and the two (2) arbitrators
shall choose an umpire before instituting the hearing. If the respondent fails
to appoint its arbitrator within thirty (30) days after having received
claimant's written request for arbitration, the claimant is authorized to and
shall appoint the second arbitrator. If the two arbitrators fail to agree upon
the appointment of an umpire within thirty (30) days after notification of the
appointment of the second arbitrator, within ten (10) days thereof, the two (2)
arbitrators shall request the American Arbitration Association ("AAA") to
appoint an umpire for the arbitration with the qualifications set forth in this
Article. If the AAA fails to name an umpire, either party may apply to the court
named below to appoint an umpire with the above required qualifications. The
umpire shall promptly notify in writing all parties to the arbitration of his
selection and of the scheduled date for the hearing. Upon resignation or death
of any member of the Board, a replacement shall be appointed in the same fashion
as the resigning or deceased member was appointed.

         SECTION 9.4 SUBMISSION OF BRIEFS. The claimant and respondent shall
each submit initial briefs to the Board outlining the issues in dispute and the
basis, authority and reasons for their respective positions within thirty (30)
days of the date of notice of appointment of the umpire. The claimant and the
respondent may submit reply briefs to the Board within ten (10) days after
filing of the initial brief(s). Initial and reply briefs may be amended by the
submitting party at any time, but not later than ten (10) days prior to the date
of commencement of the arbitration hearing. Reasonable responses shall be
allowed at the arbitration hearing to new material contained in any amendments
filed to the briefs but not previously responded to.

                                       9
<PAGE>

         SECTION 9.5 ARBITRATION BOARD'S DECISION. The Board shall make a
decision and award with regard to the terms of this MGA Agreement and the
original intentions of the parties to the extent reasonably ascertainable. The
Board's decision and award shall be in writing and shall state the factual and
legal basis for the decision and award. The decision and award shall be based
upon a hearing in which evidence shall be allowed and which the formal rules of
evidence shall not strictly apply but in which cross examination and rebuttal
shall be allowed. At its own election or at the request of the Board, either
party may submit a post-hearing brief for consideration of the Board within
twenty (20) days of the close of the hearing. The Board shall make its decision
and award within thirty (30) days following the close of the hearing or the
submission of post-hearing briefs, whichever is later, unless the parties
consent to an extension. Every decision by the Board shall be by a majority of
the members of the Board and each decision and award by the majority of the
members of the Board shall be final and binding upon all parties to the
proceeding.

         SECTION 9.6 JURISDICTION. Either party may apply to the Chancery Court
of the State of Delaware for an order compelling arbitration or confirming any
decision and the award; a judgment of that Court shall thereupon be entered on
any decision or award. If such an order is issued, the attorneys' fees of the
party so applying and court costs will be paid by the party against whom
confirmation is sought. The Board may award interest calculated from the date
the Board determines that any amounts due the prevailing party should have been
paid to the prevailing party.

         SECTION 9.7 EXPENSES. Each party shall bear the expense of the one
arbitrator appointed by it and shall jointly and equally bear with the other
party the expense of any stenographer requested, and of the umpire.

         SECTION 9.8 PRODUCTION OF DOCUMENTS AND WITNESSES. Subject to customary
and recognized legal rules of privilege, each party participating in the
arbitration shall have the obligation to produce those documents and as
witnesses to the arbitration those of its employees as any other participating
party reasonably requests providing always that the same witnesses and documents
be obtainable and relevant to the issues before the arbitration and not be
unduly burdensome or excessive. The parties may mutually agree as to pre-hearing
discovery prior to the arbitration hearing and in the absence of agreement, upon
the request of any party, pre-hearing discovery may be conducted as the Board
shall determine in its sole discretion to be in the interest of fairness, full
disclosure, and a prompt hearing, decision and award by the Board. The Board
shall be the final judge of the procedures of the Board, the conduct of the
arbitration, of the rules of evidence, the rules of privilege and production and
of excessiveness and relevancy of any witnesses and documents upon the petition
of any participating party. To the extent permitted by law, the Board shall have
the authority to issue subpoenas and other orders to enforce their decisions.

         SECTION 9.9 RELIEF AVAILABLE. Nothing herein shall be construed to
prevent any participating party from applying to the Chancery Court of the State
of Delaware to issue a restraining order or other equitable relief to maintain
the "status quo" of the parties participating in the arbitration pending the
decision and award by the Board or to prevent

                                       10
<PAGE>

any party from incurring irreparable harm or damage at any time prior to the
decision and award of the Board. The Board shall also have the authority to
issue interim decisions or awards in the interest of fairness, full disclosure,
and a prompt and orderly hearing and decision and award by the Board.

         SECTION 9.10 CONSOLIDATION. In the event that there is a dispute
between the Royal Insurer Affiliates and RSUI under this MGA Agreement as well
as one or more disputes involving any of the Ancillary Agreements, RSUI, URC and
the Royal Insurer Affiliates agree to consolidate all such disputes under such
agreements in a single arbitration proceeding.

                                    ARTICLE X

                                  MISCELLANEOUS

         SECTION 10.1 COOPERATION. The parties hereto shall cooperate in a
commercially reasonable manner in order that the duties assumed by RSUI
hereunder will be effectively, efficiently and promptly discharged. The parties
hereto will use their best efforts to (i) give effect to the intent of this MGA
Agreement and (ii) refrain from conduct which would frustrate the intent of any
such MGA Agreement. Each party shall, at all reasonable times under the
circumstances, make available to the other party properly authorized personnel
for the purpose of consultation and decision.

         SECTION 10.2 AMENDMENT, MODIFICATION AND WAIVER. This MGA Agreement may
not be amended, modified or waived except by an instrument or instruments in
writing signed and delivered on behalf of each of the parties hereto.

         SECTION 10.3 ENTIRE AGREEMENT. This MGA Agreement, the Acquisition
Agreement and the Ancillary Agreements among the parties with respect to the
subject matter hereof and thereof and supersede all other prior agreements and
understandings, both written and verbal, among the parties or any of them with
respect to the subject matter hereof.

         SECTION 10.4 GOVERNING LAW. This MGA Agreement shall be governed by and
construed in accordance with the laws of the State of Delaware, regardless of
the laws that might otherwise govern under applicable principles of conflicts of
laws thereof.

         SECTION 10.5 SEVERABILITY. Any term or provision of this MGA Agreement
which is invalid or unenforceable in any jurisdiction shall, as to that
jurisdiction, be ineffective to the extent of such invalidity or
unenforceability without rendering invalid or unenforceable the remaining terms
and provisions of this MGA Agreement or affecting the validity or enforceability
of any of the terms or provisions of this MGA Agreement in any other
jurisdiction. If any provision of this MGA Agreement is so broad as to be
unenforceable, the provision shall be interpreted to be only so broad as would
be enforceable.

                                       11
<PAGE>

         SECTION 10.6 COUNTERPARTS. This MGA Agreement may be executed in
counterparts, each of which shall be deemed to be an original, but all of which
shall constitute one and the same MGA Agreement.

         SECTION 10.7 CONSENT TO JURISDICTION. Each of the parties hereto
irrevocably and unconditionally submits to the exclusive jurisdiction of the
Chancery Court for the State of Delaware for the purposes of enforcing this MGA
Agreement. In any action, suit or other proceeding, each of the parties hereto
irrevocably and unconditionally waives and agrees not to assert by way of
motion, as a defense or otherwise any claims that it is not subject to the
jurisdiction of the above courts, that such action or suit is brought in an
inconvenient forum or that the venue of such action, suit or other proceeding is
improper. Each of the parties hereto also agrees that any final and unappealable
judgment against a party hereto in connection with any action, suit or other
proceeding shall be conclusive and binding on such party and that such award or
judgment may be enforced in any court of competent jurisdiction, either within
or outside of the United States. A certified or exemplified copy of such award
or judgment shall be conclusive evidence of the fact and amount of such award or
judgment.

         SECTION 10.8 THIRD PARTY BENEFICIARIES. Except as set forth in Article
VIII of this MGA Agreement, and except with respect to URC, nothing in this MGA
Agreement, express or implied, is intended to or shall confer upon any Person
other than the parties hereto any rights, benefits or remedies of any nature
whatsoever under or by reason of this MGA Agreement.

         SECTION 10.9 NON-ASSIGNABILITY. Neither RSUI nor the Royal Insurer
Affiliates may assign, in whole or in part, any of their obligations or duties
under this MGA Agreement.

         SECTION 10.10 SPECIFIC PERFORMANCE. The parties recognize and agree
that if for any reason any of the provisions of this MGA Agreement are not
performed in accordance with their specific terms or are otherwise breached,
immediate and irreparable harm or injury would be caused for which money damages
would not be an adequate remedy. Accordingly, each party agrees that, in
addition to any other available remedies, each other party shall be entitled to
an injunction restraining any violation or threatened violation of any of the
provisions of this MGA Agreement without the necessity of posting a bond or
other form of security. In the event that any action should be brought in equity
to enforce any of the provisions of this MGA Agreement, no party will allege,
and each party hereby waives the defense, that there is an adequate remedy at
law.

         SECTION 10.11 DESCRIPTIVE HEADINGS. The descriptive article and section
headings herein are inserted for convenience of reference only and are not
intended to be part of or to affect the meaning or interpretation of this MGA
Agreement.

         SECTION 10.12 USE OF NAME. Except as otherwise set forth in the
Acquisition Agreement, RSUI shall not use the name, trademark, service mark,
logo or identification of the Royal Insurer Affiliates without the Royal Insurer
Affiliates' prior written consent.

                                       12
<PAGE>

         SECTION 10.13 NOTICES. All notices, requests, claims, demands and other
communications hereunder shall be in writing and shall be given (and shall be
deemed to have been duly given upon receipt) by delivery in person, by telecopy
(which is confirmed), or by registered or certified mail (postage prepaid,
return receipt requested) to the respective parties to this MGA Agreement as
follows:

         If to the Royal Insurer Affiliates:

                  Laura S. Lawrence, Esq.
                  General Counsel
                  Royal Group, Inc.
                  9300 Arrowpoint Blvd.
                  Charlotte, NC 28273
                  Telephone No.: (704) 522-2851
                  Facsimile No.: (704) 522-2313

         With a copy to (which shall not constitute notice to the Royal Insurer
Affiliates for purposes of this Section 10.13):

                  Robert J. Sullivan, Esq.
                  Skadden, Arps, Slate, Meagher & Flom LLP
                  Four Times Square
                  New York, New York 10036
                  Telephone No.: (212) 735-2930
                  Facsimile No.: (212) 735-2000

         If to RSUI:

                  James Dixon
                  President and Chief Executive Officer
                  Royal Specialty Underwriting, Inc.
                  945 East Paces Ferry Road
                  Atlanta, Georgia 30326
                  Telephone No.: (404) 231-2360
                  Facsimile No.: (404) 231-3755

         With a copy to (which shall not constitute notice to the RSUI for
purposes of this Section 10.13):

                  Aileen Meehan, Esq.
                  Dewey Ballantine LLP
                  1301 Avenue of the Americas
                  New York, New York 10019
                  Telephone No.: (212) 259-8000
                  Telecopy No.: (212) 259-6333

                                       13
<PAGE>

or to such other address as the person to whom notice is given may have
previously furnished to the others in writing in the manner set forth above. In
no event shall the provision of notice pursuant to this Section 10.13 constitute
notice for service of any writ, process or summons in any suit, action or other
proceeding.

         SECTION 10.14 INTERPRETATION.When a reference is made in this MGA
Agreement to a Section or Article, such reference shall be to a section or
article of this MGA Agreement unless otherwise clearly indicated to the
contrary. Whenever the words "include," "includes" or "including" are used in
this MGA Agreement, they shall be deemed to be followed by the words "without
limitation." The words "hereof," "herein" and "herewith" and words of similar
import shall, unless otherwise stated, be construed to refer to this MGA
Agreement as a whole and not to any particular provision of this MGA Agreement.
The meaning assigned to each term used in this MGA Agreement shall be equally
applicable to both the singular and the plural forms of such term, and words
denoting any gender shall include all genders. Where a word or phrase is defined
herein, each of its other grammatical forms shall have a corresponding meaning.

         The parties have participated jointly in the negotiation and drafting
of this MGA Agreement; consequently, in the event an ambiguity or question of
intent or interpretation arises, this MGA Agreement shall be construed as if
drafted jointly by the parties thereto, and no presumption or burden of proof
shall arise favoring or disfavoring any party by virtue of the authorship of any
provisions of this MGA Agreement.

                                       14
<PAGE>

         IN WITNESS WHEREOF, this Managing General Agency Agreement has been
duly executed by a duly authorized officer of each party hereto as of the date
first above written.

                                      ROYAL SPECIALTY UNDERWRITING, INC.

                                               By: /s/ James A. Dixon
                                                   -------------------------
                                                   Name:  James A. Dixon
                                                   Title: Chairman

                                      ROYAL INDEMNITY COMPANY

                                               By: /s/ Stephen M. Mulready
                                                   --------------------------
                                                   Name:  Stephen M. Mulready
                                                   Title: President and Chief
                                                          Executive Officer

                                      ROYAL SURPLUS LINES INSURANCE COMPANY

                                               By: /s/ Stephen M. Mulready
                                                   ---------------------------
                                                   Name:  Stephen M. Mulready
                                                   Title: President and Chief
                                                          Executive Officer

                                      ROYAL INSURANCE COMPANY OF AMERICA

                                               By: /s/ Stephen M. Mulready
                                                   ----------------------------
                                                   Name:  Stephen M. Mulready
                                                   Title: President and Chief
                                                          Executive Officer

                                      LANDMARK AMERICAN INSURANCE COMPANY

                                               By: /s/ Stephen M. Mulready
                                                   -----------------------------
                                                   Name:  Stephen M. Mulready
                                                   Title: President and Chief
                                                          Executive Officer

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