Document:

CARL YANKOWSKI EMPLOYMENT AGREEMENT

         This Agreement is entered into as of August 24, 2004 (the "Effective
Date") by and between Majesco Sales Inc. ("Majesco"), Majesco Holdings Inc., a
Delaware corporation, ("Holdings") (Majesco and Holdings collectively referred
to herein as the "Company") and Carl Yankowski ("Executive").

     1. Duties and Scope of Employment.

     (a) Positions and Duties. As of the Effective Date, Executive will serve as
Chairman and Chief Executive Officer ("CEO") of each of Majesco and Holdings and
will report directly to the Holdings' Board of Directors (the "Holdings'
Board"). Executive will render such business and professional services in the
performance of his duties, consistent with Executive's position as the CEO, as
will reasonably be assigned to him by the Holdings' Board. The period of
Executive's employment under this Agreement is referred to herein as the
"Employment Term."

     (b) Board Membership. It is the intention of the parties that Executive
shall serve as a member of the Holdings' Board and the Company shall nominate
Executive to serve on the Holdings' Board in connection with each meeting of
Holdings' stockholders in which Executive would need to be re-elected in order
to continue serving on the Holdings' Board. Executive's service as a member of
the Holdings' Board will be subject to any required approval by Holdings'
shareholders.

     (c) Obligations.

     (I) During the Employment Term and except as provided in Section 1(c)(II)
below, Executive agrees that he will (i)devote Executive's full business efforts
and time to the Company, (ii) devote all of his business time and attention, his
best efforts, and apply his skill and ability to promote the interest of the
Company; (iii) carry out his duties in a professional and competent manner and
faithfully serve the Company and (iv) generally promote the interest of the
Company.

     (II) The Company may from time to time establish rules, regulations and
policies and Executive shall faithfully observe these in the performance of his
duties; provided that any such rules, regulations and policies shall not serve
to amend any provisions of this Agreement. For the duration of the Employment
Term, Executive agrees not to actively engage in any other incremental new
employment, occupation, or consulting activity for any direct or indirect
remuneration without the prior approval of the Holdings' Board (which approval
will not be unreasonably withheld); provided, however, that Executive may,
without the approval of the Holdings' Board, (i) serve in any capacity with any
civic, educational, or charitable organization, and (ii) continue to serve as a
chairman, director, member or partner of Avidyne, Inc., Informatica Corporation,
CRF, Inc., Westerham Group, LLC, Gemba, LLC, TNX, Inc. and Chase Corporation
provided such services do not interfere with Executive's obligations to the
Company.

     2. At-Will Employment. Executive and the Company agree that Executive's
employment with the Company constitutes "at-will" employment. Executive and the
Company acknowledge that this employment relationship may be terminated at any
time, upon written notice to the other party,

with or without Cause (as defined herein) or with or without Good Reason (as
defined herein), at the option either of the Company or Executive. However, as
described in this Agreement, Executive may be entitled to severance benefits
depending upon the circumstances of Executive's termination of employment as set
forth in Section 6. Upon the termination of Executive's employment with the
Company for any reason, subject to the terms of this Agreement, Executive will
be entitled to payment of any accrued but unpaid salary, accrued but unused
vacation, expense reimbursements, and other benefits due to Executive through
his termination date under any Company-provided or paid plans, policies, and
arrangements in accordance with and subject to the terms of such plans, policies
and arrangements. Executive agrees to resign from all positions that he holds
with the Company, including, without limitation, his position as a member of the
Holdings' Board, immediately following the termination of his employment if the
Holdings' Board so requests.

     Nothwithstanding the foregoing, in the event Executive voluntarily
terminates his employment without Good Reason, he must provide one (1) month
prior written notice of termination to the Company. If Executive terminates his
employment pursuant to the preceeding sentence, the Company shall have the right
at any time during the one (1)-month notice period to reduce his offices, duties
and responsibilites, or to relieve him of such offices, duties and
responsibilites and to place him on a paid leave-of-absence status, provided
that during such notice period he shall remain a full-time employee of the
Company and shall continue to receive his salary and all other compensation and
other benefits as provided in this Agreement.

     3. Compensation.

     (a) Base Salary. As of the Effective Date, Majesco will pay Executive an
annual salary of $375,000 as compensation for his services (the "Base Salary").
There will be a gross-up (which shall be a Tax-Effected Payment as provided in
Section 3(f)) of this Base Salary to provide for the Executive's costs as it
relates only to his New York City resident taxes. The Base Salary will be paid
periodically in accordance with Majesco's normal payroll practices (but no less
frequently than once per month) and be subject to the usual, required
withholding. Executive's salary will be subject to review and any increases will
be made based upon the Company's standard practices or the discretion of the
Compensation Committee of the Holdings' Board (the "Committee").

     (b) Interim Bonus. From the period commencing with the Effective Date
through October 31, 2004, Executive shall be eligible to receive a discretionary
bonus of up to $62,500 based on the evaluation by the Committee in its sole and
absolute discretion that the Executive achieved the Established Goals (as
hereinafter defined) (the "Interim Bonus") provided, however, Executive will be
given the opportunity to provide to the Committee his own evaluation of the
achievement of such Established Goals. The term "Established Goals" shall mean
the performance goals and objectives established for any bonus measuring period
by the Committee; provided, however, Executive will be given the opportunity to
discuss the nature of the Established Goals with the Committee prior to the
determination thereof by the Committee. For purposes of the Interim Bonus, the
Established Goals shall be reasonable short-term management objectives (not
including any revenue or financial goals). Any Interim Bonus is to be paid to
Executive by January 31, 2005 and is subject to Executive's being on active
working status with the Company at the time of payment. For purpose of this
Agreement, "active working status" means that Executive has not resigned (or
given written notice of his intentions to resign) or has not been terminated (or
been given written notice of his termination).

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     (c) Annual Bonus. Commencing with the annual period November 1, 2004
through October 31, 2005 (the "Annual Period" and where the Annual Period shall
represent Holdings' fiscal year) and for each Annual Period thereafter during
the Employment Term, Executive will be eligible to receive a discretionary bonus
(the "Annual Bonus). The target bonus for each Annual Period shall be 100% of
Executive's Base Salary (with such Base Salary determined as of the end of the
applicable performance period) unless such target bonus percentage is
subsequently increased by the Committee (the "Target Bonus"). Based on the
evaluation by the Committee in its sole and absolute discretion that the
Executive achieved some or all of the Established Goals for such Annual Period,
the Committee shall determine in its sole and absolute discretion the amount of
the Annual Bonus that will be paid to Executive and the Committee shall also
have the right in its sole and absolute discretion to increase the amount of
Executive's Annual Bonus for any Annual Period based upon its evaluation that
Executive exceeded the Established Goals provided, however, Executive will be
given the opportunity to provide to the Committee his own evaluation of the
achievement of such Established Goals. Any Annual Bonus shall be paid to
Executive within ninety (90) days after the end of the Annual Period and is
subject to Executive being on active working status with the Company at the time
of payment.

     (d) Equity Compensation. For purposes of this Section 3(d), the following
definitions shall apply: "Employed Percentage" means the fraction that is equal
to the number of calendar days that Executive was employed by the Company during
the twelve (12) month period beginning on the Effective Date, divided by 365.
"Option Number" means 2,780,000. "Exercised Percentage" means the aggregate
number of shares of the "Fully Vested Option" (as defined below) that Executive
has acquired by exercising the Fully Vested Option prior to his termination of
employment, divided by the Option Number.

     (I) On the Effective Date, Executive will be granted non-qualified stock
     options pursuant to the Company's 2004 Employee, Director and Consultant
     Stock Option Plan (the "Stock Plan") to purchase 6,950,000 shares of
     Holdings' common stock (the "Grant"). Of the Grant, options to purchase
     2,085,000 shares (i) will have a per-share exercise price equal to $1.00,
     and (ii) will vest and become exercisable as to 1/24th of such share grant
     amount each month commencing as of the Effective Date, subject to
     Executive's continuous "Service" with the Company. For purposes of this
     Agreement, "Service" shall mean providing service to the Company (or any
     Company affiliate) as either a director, employee and/or consultant. Of the
     Grant, options to purchase 2,085,000 shares (i) will have a per-share
     exercise price equal to $4.56 and (ii) will vest and become exercisable as
     to 1/24th of such share grant amount each month commencing immediately
     after the two-year anniversary of the Effective Date, subject to
     Executive's continuous Service with the Company. Of the Grant, options to
     purchase 2,780,000 shares (i) will have a per-share exercise price equal to
     $2.78, and (ii) will be immediately and fully vested and exercisable upon
     grant ("Fully Vested Option"). Before the first anniversary of the
     Effective Date (the "Anniversary") while Executive is serving as CEO,
     Executive agrees that his exercise(s) of the Fully Vested Option shall be
     such that the Exercised Percentage does not exceed the Employed Percentage.

     (II) In the event that Executive's employment with the Company is
     terminated for Cause by the Company within the twenty-four (24) month
     period beginning on the

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     Effective Date, the unexercised portion of the Fully Vested Option at the
     time of such termination shall be forfeited and cancelled.

     (III) In the event that Executive's employment with the Company terminates
     voluntarily by Executive without Good Reason before the Anniversary, then
     the following number of unexercised shares subject to the Fully Vested
     Option shall be forfeited and cancelled as of the termination of
     Executive's employment: (a) the Option Number multiplied by (b) the
     difference of 100% minus the Employed Percentage.

     (IV) Except as otherwise provided in this Agreement, the Grant will be
     subject to the Company's standard terms and conditions for executive stock
     option awards and will be issued pursuant to and consistent with the terms
     of the Stock Plan which includes a provision that options may be exercised
     in accordance with a cashless exercise program established with a
     securities brokerage firm. All options granted to Executive will have a
     ten-year maximum term and any vested options will remain exercisable after
     Executive's employment with the Company terminates as follows, subject to
     the ten-year term: (i) if Executive's employment with the Company
     terminates by the Executive with Good Reason or is terminated by the
     Company without Cause the options will remain exercisable for twenty-four
     (24) months, (ii) if Executive's employment with the Company terminates
     voluntarily by the Executive without Good Reason the options, other than
     the portion of the Fully Vested Option which is forfeited pursuant to
     Section 3(d)(III) above, will remain exercisable for 12 months, (iii) if
     Executive's employment with the Company is terminated for Cause by the
     Company the options, other than the Fully Vested Options which are
     forfeited pursuant to Section 3(d)(II) above, will be forfeited as soon as
     the Executive is notified that he has been terminated for Cause as set
     forth in the Stock Plan, and (iv) if Executive's employment with the
     Company terminates by reason of death or Disability (as defined in the
     Stock Plan) the options will remain exercisable for twelve (12) months.

     (V) The Grant and the underlying shares of common stock and any other
     compensatory equity awards subsequently provided to Executive shall be
     covered by an effective registration statement on Form S-8 (or other
     applicable registration statement) filed by the Company with the Securities
     and Exchange Commission ("SEC"). With respect to the Grant, the
     registration statement shall be filed and effective with the SEC no later
     than 45 days after the Effective Date. The Grant (and any other
     compensatory equity awards subsequently awarded to Executive) shall be
     granted by either the Holdings' Board or by a committee of the Holdings'
     Board composed solely of two or more non-employee directors pursuant to
     Rule 16b-3(d) of the Securities Exchange Act of 1934 ("1934 Act") so that
     the Grant (and any other compensatory equity awards subsequently awarded to
     Executive) is exempt from liability under Section 16(b) of the 1934 Act.
     The terms specified in this Agreement shall govern if there is any conflict
     in terms between this Agreement and the Stock Plan or any stock option or
     stock purchase agreements between Executive and the Company.

     (e) "Change in Control" Bonus. In the event a "Change in Control" (as
defined

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herein) occurs during the Employment Term, Executive shall be entitled to
receive on the Change in Control a one-time cash lump sum payment directly from
the Change in Control proceeds (or from the Company) in the amount of One
Million Dollars ($1,000,000) (the "Change in Control Bonus") and where such
Change in Control Bonus is a Tax-Effected Payment as defined in Section 3(g)
below. In the event that both (i) the closing trading price of a Company common
share on the last business date immediately before the date of such Change in
Control and (ii) the change in control consideration that would accrue to
Company shareholders on a per share basis as a result of such Change in Control
are each less than $2.78, then the Change in Control Bonus shall not be paid out
with respect to that particular Change in Control. For purposes of the preceding
sentence, the share values/prices shall take into account and reflect all stock
splits, stock dividends, recapitalizations, reorganizations or similar
transactions which caused the Company's share price to be adjusted after the
Effective Date.

     (f) Vacation. During the Employment Term, Executive shall be eligible for
three (3) weeks paid vacation per year in accordance with Company policy in
effect from time to time.

     (g) Tax Adjustment. Certain payments or benefits, but only if labelled as
such in this Agreement, shall if necessary be "tax-effected" (a "Tax-Effected
Payment"). This means that, in addition to the Tax-Effected Payment, Executive
shall receive from the Company another contemporaneous cash payment in order to
make Executive whole, on an after-tax basis, for any taxes (including without
limitation any excise taxes) imposed on the Tax-Effected Payment. The additional
cash payment shall be calculated applying the highest marginal tax rates then in
effect for the applicable tax year and shall provide Executive with an after-tax
amount that is equal to the amount of any taxes (including any penalties and/or
interest) reasonably related to the Tax-Effected Payment.

     4. Employee Benefits. During the Employment Term, Executive (and his
dependents as applicable) will be eligible to participate in accordance with the
terms of all Company employee benefit plans, policies, and arrangements that are
applicable to other senior executives of Company, as such plans, policies, and
arrangements may exist from time to time and subject to the terms and conditions
of such plans, policies and arrangements. In the event that Executive declines
coverage under the Company's group health insurance plan, the Company agrees to
reimburse Executive for any premiums incurred by Executive for coverage under
any other group health insurance that he is currently covered under from another
company. The reimbursement set forth in the preceding sentence is a Tax-Effected
Payment as provided under Section 3(g).

     5. Expenses.

     (a) Majesco will reimburse Executive for reasonable travel, entertainment,
and other expenses incurred by Executive in the furtherance of the performance
of Executive's duties hereunder, in accordance with the Company's expense
reimbursement policy as in effect from time to time.

     (b) Majesco will provide an allowance of $1,500 monthly (which shall be a
Tax-Effected Payment as provided in Section 3(g)) for all costs associated with
the Executive's use of his automobile. In addition, the Company will also
provide the Executive with a garage space in New York City (whose location is
designated by Executive) at the Company's expense.

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6. Severance.

     (a) Termination Without Cause or Resignation for Good Reason. If
Executive's employment is terminated by the Company without Cause or by
Executive for Good Reason, then, subject to Section 7, Executive (or Executive's
heirs or estate in the event of Executive's death after Executive has become
entitled to the following payments and benefits) will receive from the Company:
(i) continued payment of Executive's then Base Salary for a period of 12 months
(the "Continuance Period") payable in accordance with Majesco's regular payroll
practices (except that the aggregate amount of the 12 months of Base Salary
shall instead be entirely made in a single cash lump sum payment upon
Executive's termination of employment if such employment is terminated within a
period three months prior to a Change in Control and 12 months after a Change in
Control), (ii) a cash lump sum payment, paid at the time the Annual Bonus is
generally paid, (but in no event later than 90 days after the end of the
Company's fiscal year), equal to the then Target Bonus percentage multiplied by
Executive's then Base Salary; (iii) for any such termination occurring within 90
days after an Annual Period, but prior to the payment of any Annual Bonus for
such Annual Period, an Annual Bonus with respect to such preceding Annual Period
(payable within 90 days following the end of such Annual Period), provided that
Executive would have otherwise received an Annual Bonus if he had remained
employed as of the date of the payment of such Annual Bonus for such Annual
Period; or for any such termination occurring after October 31, 2004 and before
February 1, 2005, but prior to the payment of any Interim Bonus, an Interim
Bonus (payable no later than January 31, 2005), provided that Executive would
have otherwise received an Interim Bonus if he had remained employed as of the
date of the payment of such Interim Bonus; (iv) a cash lump sum payment of the
Change in Control Bonus, if such termination occurs within three months prior to
a Change in Control or if earned at the time of termination, but not otherwise
paid pursuant to Section 3(e); (v) reimbursement for any applicable premiums
Executive pays to continue coverage for Executive and Executive's eligible
dependents under the Company's Benefit Plans for the Continuance Period or as
otherwise provided under Section 4, or, if earlier, until Executive is eligible
for similar benefits from another employer (excluding Executive's continuation
of his Section 4 arrangements with another employer) (provided Executive validly
elects to continue coverage under applicable law), and (vi) immediate vesting
and exercisability of Executive's unvested stock options (or other unvested
compensatory equity awards) as follows: Executive's stock options (or other
unvested compensatory equity awards) shall vest as if Executive remained in the
employ of the Company for 18 months following such termination of employment;
provided, however, that if such termination occurs during the period commencing
three months prior to a Change in Control and ending on the date that is 12
months after a Change in Control, Executive's stock options (or other unvested
compensatory equity) shall all be immediately and fully vested and exercisable.

     (i) Section 280G Gross-up. If any payment or benefit Executive would
receive (whether or not Executive's Service is or has been terminated), but
determined without regard to any additional payment required under this Section
6(a)(i), (collectively, the "Payment") would (x) constitute a "parachute
payment" within the meaning of Section 280G of the Internal Revenue Code of
1986, as amended (the "Code"), and (y) be subject to the excise tax imposed by
Section 4999 of the Code or any interest or penalties payable with respect to
such excise tax (such excise tax, together with any such interest and penalties,
are hereinafter collectively referred to as the "Excise Tax"), then Executive
will be entitled to receive from Majesco an additional payment (the "Gross-Up
Payment," and any iterative payments pursuant to this paragraph also shall be
"Gross-Up

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Payments") in an amount that shall fund the payment by Executive of any Excise
Tax on the Payment, as well as all income and employment taxes on the Gross-Up
Payment, any Excise Tax imposed on the Gross-Up Payment and any interest or
penalties imposed with respect to income and employment taxes imposed on the
Gross-Up Payment. For this purpose, all income taxes will be assumed to apply to
Executive at the highest marginal rate. Any Gross-Up Payment shall be paid to
Executive, or for his benefit, within 15 days following receipt by the Company
of the report of the accounting firm described below.

         The accounting firm engaged by the Company for general audit purposes
as of the day prior to the effective date of the Change in Control shall perform
the foregoing calculations. If the accounting firm so engaged by the Company is
also serving as accountant or auditor for the individual, entity or group which
will control the Company upon the occurrence of a Change in Control, the Company
shall appoint a nationally recognized accounting firm other than the accounting
firm engaged by the Company for general audit purposes to make the
determinations required hereunder. The Company shall bear all expenses with
respect to the determinations by such accounting firm required to be made
hereunder.

         The accounting firm engaged to make the determinations hereunder shall
provide its calculations, together with detailed supporting documentation, to
the Company and Executive within thirty calendar days after the date on which
such accounting firm has been engaged to make such determinations or such other
time as requested by the Company or Executive. If the accounting firm determines
that no Excise Tax is payable with respect to a Payment, it shall furnish the
Company and Executive with an opinion reasonably acceptable to Executive that no
Excise Tax will be imposed with respect to such Payment. Any good faith
determinations of the accounting firm made hereunder shall be final, binding,
and conclusive upon the Company and Executive.

         Executive shall notify the Company in writing of any claim by the
Internal Revenue Service that, if successful, would require the payment of a
Gross-Up Payment. Such notice shall be given as soon as practicable after
Executive knows of such claim and shall apprise the Company of the nature of the
claim and the date on which the claim is requested to be paid. Executive agrees
not to pay the claim until the expiration of the thirty-day period following the
date on which Executive notifies the Company, or such shorter period ending on
the date the taxes with respect to such claim are due (the "Notice Period"). If
the Company notifies the Executive in writing prior to the expiration of the
Notice Period that it desires to contest the claim, Executive shall: (i) give
the Company any information reasonably requested by the Company relating to the
claim; (ii) take action in connection with the claim as the Company may
reasonably request, including, without limitation, accepting legal
representation with respect to such claim by an attorney reasonably selected by
the Company and reasonably acceptable to Executive; (iii) cooperate with the
Company in good faith in contesting the claim; and (iv) permit the Company to
participate in any proceedings relating to the claim. Executive shall permit the
Company to control all proceedings related to the claim and, at its option,
permit the Company to pursue or forgo any and all administrative appeals,
proceedings, hearings and conferences with the taxing authority in respect of
such claim. If requested by the Company, Executive agrees either to pay the tax
claimed and sue for a refund or contest the claim in any permissible manner and
to prosecute such contest to a determination before any administrative tribunal,
in a court of initial jurisdiction and in one or more appellate courts as the
Company shall determine; provided, however, that, if the Company directs
Executive to pay such claim and pursue a refund, the Company shall advance the
amount of such payment to Executive on an after-tax and

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interest-free basis (the "Advance"). The Company's control of the contest
related to the claim shall be limited to the issues related to the Gross-Up
Payment and Executive shall be entitled to settle or contest, as the case may
be, any other issues raised by the Internal Revenue Service or other taxing
authority. If the Company does not notify Executive in writing prior to the end
of the Notice Period of its desire to contest the claim, the Company shall pay
to Executive an additional Gross-Up Payment in respect of the excess parachute
payments that are the subject of the claim, and Executive agrees to pay the
amount of the Excise Tax that is the subject of the claim to the applicable
taxing authority in accordance with applicable law.

         If, after receipt by Executive of an Advance, Executive becomes
entitled to a refund with respect to the claim to which such Advance relates,
Executive shall pay the Company the amount of the refund (together with any
interest paid or credited thereon after taxes applicable thereto). If, after
receipt by Executive of an Advance, a determination is made that Executive shall
not be entitled to any refund with respect to the claim and the Company does not
promptly notify Executive of its intent to contest the denial of refund, then
the amount of the Advance shall not be required to be repaid by Executive and
the amount thereof shall offset the amount of the additional Gross-Up Payment
then owing to Executive.

     (b) Voluntary Termination without Good Reason. If Executive's employment
with the Company terminates voluntarily by Executive without Good Reason, then,
subject to the terms of this Agreement (including Section 3 (d)) (i) all further
vesting of Executive's outstanding equity awards will terminate immediately,
(ii) all payments of compensation by the Company to Executive hereunder will
terminate immediately, (iii) Executive will be paid any accrued but unpaid
salary, accrued but unused vacation, expense reimbursements and other benefits
due to Executive through his termination date under any Company-provided or paid
plans, policies, and arrangements in accordance with and subject to the terms of
such plans, policies and arrangements, and (iv) Executive will not be eligible
for severance benefits under this Agreement or otherwise.

     (c) Termination for Cause. If Executive's employment with the Company is
terminated for Cause by the Company, then, subject to the terms of this
Agreement (including Section 3 (d)) (i) all of Executive's vested and unvested
outstanding options will be forfeited and cancelled as soon as Executive is
notified that he has been terminated for Cause, (ii) all payments of
compensation by the Company to Executive hereunder will terminate immediately,
(iii) Executive will be paid any accrued but unpaid salary, accrued but unused
vacation, expense reimbursements and other benefits due to Executive through his
termination date under any Company-provided or paid plans, policies, and
arrangements in accordance with and subject to the terms of such plans, policies
and arrangements, and (iv) Executive will not be eligible for severance benefits
under this Agreement or otherwise.

     (d) Termination due to Death or Disability. If Executive's employment
terminates by reason of death or Disability (as defined in the Stock Plan), then
(i) Executive will be paid any accrued but unpaid salary, accrued but unused
vacation, expense reimbursements and other benefits due to Executive through his
termination date under any Company-provided or paid plans, policies, and
arrangements and will be entitled to receive benefits only in accordance with
the Company's then applicable plans, policies, and arrangements, and (ii)
subject to Section 3(d), Executive's outstanding equity awards will be governed
in accordance with the terms and conditions of this Agreement and the applicable
award agreement(s).

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     (e) Sole Right to Severance. This Agreement is intended to represent
Executive's sole entitlement to severance payments and benefits in connection
with the termination of his employment. To the extent Executive receives
severance or similar payments and/or benefits under any other Company plan,
program, agreement, policy, practice, or the like, severance payments and
benefits due to Executive under this Agreement will be correspondingly reduced
(and vice-versa).

     7. Conditions to Receipt of Severance; No Duty to Mitigate.

     (a) Separation Agreement and Release of Claims. The receipt of any
severance pursuant to Section 6 will be subject to Executive signing and not
revoking a separation agreement and release of claims in a form acceptable to
the Company, which includes a general release in favor of the Company and its
affiliates together with their respective officers, directors, shareholders,
employees, agents and successors and assigns from any and all claims Executive
may have against them including but not limited to, arising from Executive's
employment and/or termination of employment. The aforementioned general release
shall not include a waiver of claims against the shareholders, employees or
agents of the Company that do not arise out of or relate to Executive's
employment with the Company. In the event Executive breaches the provisions of
Section 8 of this Agreement, in addition to any other remedies of law or in
equity, the Company may cease making any payments or benefits to which Executive
otherwise may be entitled to under Section 6. No severance will be paid or
provided until the separation agreement and release agreement becomes effective.

     (b) No Duty to Mitigate. Executive will not be required to mitigate the
amount of any payment contemplated by this Agreement, nor will any earnings that
Executive may receive from any other source reduce any such payment.

     8. Confidential and Proprietary Information; Non-Competition;
Non-Solicitation.

     (a) Confidentiality. Except in the performance of Executive's duties
hereunder, at no time during the Term or any time thereafter, shall Executive,
individually or jointly with others, for his benefit or the benefit of any third
party, publish, disclose, use or authorize anyone else to publish, disclose or
use, any secret or confidential and proprietary information relating to any
aspect of the business or operations of the Company, including, without
limitation, any trade secrets, customer lists and programs, manuals and forms,
customer files, financial data, employee-related information, marketing or
business plans, suppliers, trade or industrial practices of the Company, and any
Company information concerning purchasing, finances, accounting, engineering,
methods, processes, compositions, technology, formulas, electronic information
processing procedures (including computer software), research and development
programs, potential client lists, marketing, affiliations, sales and inventions.
Executive acknowledges and agrees that such information is a valuable asset of
the Company and is the Company's sole and exclusive property. Upon the
termination of his employment, regardless of the reason for or circumstances
giving rise to such termination or at any other time at the request of the
Company, he shall immediately return to the Company all of the property of the
Company, including all such confidential and proprietary information, in his
possession or control and agrees not to retain any copies, duplicates,
reproductions or excerpts in whatsoever form of any Company property.

     (b) Non-Competition/Non-Solicitation.

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     (i) In the course of Executive's employment with the Company, he will
acquire and have access to confidential or proprietary information concerning
the Company. Furthermore, his position as CEO of the Company places him in a
position of confidence and trust with the clients and employees of the Company.
Executive also acknowledges that the clients serviced by the Company are located
throughout the world and accordingly, it is reasonable that the restrictive
covenants set forth below are not limited by specific geographic area but by the
location of the Company's clients. He further acknowledges that the rendering of
services to the Company's clients necessarily requires the disclosure of
confidential information and trade secrets of the Company and its subsidiaries
(such as without limitation, marketing plans, budgets, designs, client
preferences and policies, and identity of appropriate personnel of clients with
sufficient authority to influence a shift in suppliers.) Executive and the
Company agree that in the course of employment hereunder, he will develop a
personal acquaintanceship and relationship with the Company's clients, and
knowledge of those clients' affairs and requirements which may constitute the
Company's primary or only contact with such clients. Executive acknowledges that
the Company's relationships with its established clientele may therefore be
placed in his hands in confidence and trust. Executive consequently agrees that
it is reasonable and necessary for the protection of the goodwill and business
of the Company that he makes the covenants contained herein; and accordingly,
Executive agrees that while he is in the Company's employ and for a one year
period (and in the case of Section 8(b)(i)(c) a two-year period) after the
termination of his employment for any reason whatsoever, he shall not directly
or indirectly except on behalf of the Company:

     a) perform services that compete with the business or businesses conducted
   by the Company or any of its affiliates (or which business the Company can at
   the time of his termination of employment establish it will likely conduct
   within one (1) year following the date of his termination; provided that
   Executive participated in the planning or development of any such new
   business); or

     b) attempt in any manner to solicit from any client (as hereinafter
   defined) business of the type performed by the Company or to persuade any
   client of the Company to cease to do business or to reduce the amount of
   business which any such client has customarily done or, to the best of
   Executive's knowledge, that is likely to do with the Company (as of the date
   of termination of employment), whether or not the relationship between the
   Company and such client was originally established in whole or in part
   through his efforts; or

     c) employ (including to retain, engage or conduct business with) or attempt
   to employ or assist anyone else to employ any person who is then or at any
   time during the preceding year was in the Company's employ, with the
   exception of Patrick Flaherty; or

     d) render any services of the type rendered by the Company to its clients
   to or for any client of the Company; provided, however, that this Section
   8(b)(i)(d) shall not prevent Executive from becoming employed by a client.

         As used in this Section 8(b), the term "Company" shall include
subsidiaries of the Company and the term "client" shall mean (1) anyone who is a
client of the Company at the time of the termination of his employment with the
Company or, if his employment shall not have terminated, at

                                       10

the time of the alleged prohibited conduct; (2) anyone who was a client at any
time during the two year period immediately preceding the termination of his
employment with the Company or, if his employment shall not have terminated,
during the two year period immediately preceding the date of the alleged
prohibited conduct; and (3) any prospective clients to whom the Company had made
a presentation (or similar offering of services) within the one year period
immediately preceding the termination of his employment with the Company or if
his employment shall not have terminated, within the one year period immediately
preceding the date of the alleged prohibited conduct.

         For purposes of Section 8(b)(i)(a), upon a Change in Control, the
"business or businesses conducted by the Company or any of its affiliates" shall
not include any business of the successor or surviving corporation that
Executive had no involvement in as of the date of his termination of employment.

     (c) Injunctive Relief. Executive acknowledges that a breach or threatened
breach of any of the terms set forth in this Section 8 shall result in an
irreparable and continuing harm to the Company for which there shall be no
adequate remedy of law. The Company shall, without posting a bond, be entitled
to obtain injunctive and other equitable relief, in addition to any other
remedies available to the Company.

     (d) Survival of Terms; Representations. Executive's and Company's
obligations under this Section 8 hereof shall remain in full force and effect
notwithstanding the termination of Executive's employment. Executive
acknowledges that he is sophisticated in business, and that the restrictions and
remedies set forth in this Section 8 do not create an undue hardship on him and
will not prevent him from earning a livelihood. Executive and the Company agree
that the restrictions and remedies contained in this Section 8 are reasonable
and necessary to protect the Company's legitimate business interests regardless
of the reason for or circumstances giving rise to such termination and that
Executive and the Company intend that such restrictions and remedies shall be
enforceable to the fullest extent permissible by law. If it shall be found by a
court of competent jurisdiction that any such restriction or remedy is
unenforceable but would be enforceable if some part thereof were deleted or
modified, then such restriction or remedy shall apply with such modification as
shall be necessary to make it enforceable to the fullest extent permissible
under law.

     9. Intellectual Property. Executive expressly understands and agrees that
any and all improvements, inventions, discoveries, processes, know-how or other
intellectual property (including without limitation patents, licenses,
copyrights, tradenames, trademarks, assumed names and service marks and
applications therefor, marketing and advertising campaigns, logos and slogans,
designs and software programs) developed, conceived or created by him in the
course of his employment hereunder, either individually or in collaboration with
others, and whether or not during normal working hours or on the premises of the
Company (collectively, "Developments") shall be, as between Executive and the
Company, the sole and absolute property of the Company, and he will, whenever
requested to do so (either during the Employment Term or thereafter), execute
and assign any and all applications, assignments and/or other instruments and do
all things which the Company may deem necessary or appropriate in order to apply
for, obtain, maintain, enforce and defend patents, copyrights, trade names or
trademarks of the United States or of foreign countries for said Developments,
or in order to assign and convey or otherwise make available to the Company the
sole and exclusive right, title, and interest in and to said Developments
(provided that where Executive is providing assistance to the Company pursuant
to this Section 9 after Executive's employment has terminated, the Company

                                       11

shall promptly reimburse Executive for any pre-approved reasonable out of pocket
expenses and reimburse him for pre-approved time over 5 hours per month at a
rate of $600 per hour).

     Executive agrees to make full and prompt disclosure to the Company of all
Developments conceived or created by him during his employment with the Company.

10.      Definitions.
         -----------

     (a) Benefit Plans. For purposes of this Agreement, "Benefit Plans" means
plans, policies, or arrangements that Company sponsors (or participates in) and
that immediately prior to Executive's termination of employment provide
Executive and Executive's eligible dependents with medical, dental, or vision
benefits. Benefit Plans do not include any other type of benefit (including, but
not by way of limitation, financial counseling, disability, life insurance, or
retirement benefits).

     (b) Cause. For purposes of this Agreement, "Cause" means (i) Executive's
act of dishonesty or fraud in connection with the performance of his
responsibilities to the Company with the intention that such act result in
Executive's substantial personal enrichment, (ii) Executive's conviction of, or
pleas of nolo contendere to, a felony, (iii) Executive's willful failure to
follow lawful, reasonable instructions of the Holdings' Board, (iv) Executive's
willful misconduct provided such misconduct is injurious to the Company, or (v)
Executive's violation or breach of any fiduciary or contractual duty to the
Company which results in material damage to the Company or its business;
provided that if any of the foregoing events is capable of being cured, the
Company will provide notice to Executive describing the specific nature of such
event and Executive will thereafter have 20 days to cure such event (including
the opportunity to present his case to the full Holdings' Board with the
assistance of his own counsel). During any cure period, Executive will continue
to receive all of the compensation and benefits provided under this Agreement.
For purposes of this Section 8(b), no lawful act or failure to act will be
considered "willful" unless the act or failure to act was committed/omitted by
Executive without a reasonable, good faith belief that it was in the best
interests of the Company and/or was inconsistent with prior direction of the
Holdings' Board or Company policy.

     (c) Change in Control. Means the occurrence of any of the following events:

          (i)  Ownership. Any "Person" (as such term is used in Sections 13(d)
               and 14(d) of the Securities Exchange Act of 1934, as amended)
               becomes the "Beneficial Owner" (as defined in Rule 13d-3 under
               said Act), directly or indirectly, of securities of the Company
               representing 50% or more of the total voting power represented by
               the Company's then outstanding voting securities (excluding for
               this purpose the Company or its Affiliates or any employee
               benefit plan of the Company) pursuant to a transaction or a
               series of related transactions which the Holdings' Board does not
               approve; or

          (ii) Merger/Sale of Assets. A merger or consolidation of the Company
               whether or not approved by the Holdings' Board, other than a
               merger or consolidation which would result in the voting
               securities of the Company outstanding immediately prior thereto
               continuing to represent (either by remaining outstanding or by
               being converted into voting securities of the surviving

                                       12

               entity or the parent of such corporation) at least 50% of the
               total voting power represented by the voting securities of the
               Company or such surviving entity or parent of such corporation
               outstanding immediately after such merger or consolidation, or
               the stockholders of the Company approve an agreement for the sale
               or disposition by the Company of all or substantially all of the
               Company's assets; or

          (iii) Change in Board Composition. A change in the composition of the
               Board of Directors, as a result of which fewer than a majority of
               the directors are Incumbent Directors. "Incumbent Directors"
               shall mean directors who either (A) are directors of the Company
               as of the Effective Date, or (B) are elected, or nominated for
               election, to the Board of Directors with the affirmative votes of
               at least a majority of the Incumbent Directors at the time of
               such election or nomination (but shall not include an individual
               whose election or nomination is in connection with an actual or
               threatened proxy contest relating to the election of directors to
               the Company).

          For purposes of this Section 10(c) and to determine whether a Change
          in Control has occurred, the term "Company" above shall be replaced by
          the term "Majesco" and also by the term "Holdings" so that a Change in
          Control of Majesco or a Change in Control of Holdings shall in either
          case represent a Change in Control under this Agreement.

     (d) Good Reason. For purposes of this Agreement, "Good Reason" means the
occurrence of any of the following without Executive's express prior written
consent: (i) a material reduction in Executive's position or duties (other than
a reduction caused by Executive ceasing to be a member of the Holdings' Board
due to applicable legal or listing requirements or stockholders failing to
reelect Executive to the Board) and where it will be deemed to be a material
reduction in such position or duties if Executive is not at all times the CEO of
Majesco and Holdings (or their successors) or if Holdings (or its successors)
has any parent entities then Executive must be the Chief Executive Officer of
the highest such parent entity, (ii) a reduction of Executive's Base Salary or
Target Bonus percentage other than a reduction that also is applied to
substantially all of the Company's other senior executives, (iii) a material
reduction in the aggregate level of benefits made available to Executive other
than a reduction that also is applied to substantially all of the Company's
other senior executives, (iv) relocation of Executive's primary place of
business for the performance of his duties to the Company to a location that is
more than 30 miles from its location as of the Effective Date, unless it is
closer to Executive's New York residence as of the Effective Date or (v) any
material breach or material violation of a material provision of this Agreement
by the Company (or any successor to the Company); provided that the Executive
must provide written notice to the Company of not more than thirty (30) days
after the occurrence of the event(s) constituting Good Reason and providing
further that if any of the foregoing events is capable of being cured, the
Executive will provide notice to Company describing the specific nature of such
event and Company will thereafter have 20 days to cure such event.

     11. Indemnification and Insurance. Executive will be covered under the
Company's insurance policies and, subject to applicable law, will be provided
indemnification to the maximum extent permitted by the Company's bylaws and
Certificates of Incorporation, with such insurance

                                       13

coverage and indemnification to be in accordance with the Company's standard
practices for senior executive officers but on terms no less favorable than
provided to any other Company senior executive officer or director.

     12. Confidential Information. Executive agrees to execute the Company's
standard form of employee confidential information agreement (the "Confidential
Information Agreement") upon commencement of employment. During the Employment
Term, Executive further agrees to execute any updated versions of the
Confidential Information Agreement (any such updated version also referred to as
the "Confidential Information Agreement") as may be required of substantially
all of the Company's executive officers.

     13. Assignment. This Agreement will be binding upon and inure to the
benefit of (a) the heirs, executors, and legal representatives of Executive upon
Executive's death and (b) any successor of the Company. Any such successor of
the Company will be deemed substituted for the Company under the terms of this
Agreement for all purposes. Any successor will expressly assume in writing all
of the Company's obligations under this Agreement. For this purpose, "successor"
means any person, firm, corporation, or other business entity which at any time,
whether by purchase, merger, or otherwise, directly or indirectly acquires all
or substantially all of the assets or business of the Company. None of the
rights of Executive to receive any form of compensation payable pursuant to this
Agreement may be assigned or transferred except by will or the laws of descent
and distribution. Any other attempted assignment, transfer, conveyance, or other
disposition of Executive's right to compensation or other benefits will be null
and void.

     14. Notices. All notices, requests, demands, and other communications
called for hereunder will be in writing and will be deemed given (a) on the date
of delivery if delivered personally, (b) one day after being sent by a well
established commercial overnight service, or (c) four days after being mailed by
registered or certified mail, return receipt requested, prepaid and addressed to
the parties or their successors at the following addresses, or at such other
addresses as the parties may later designate in writing:

               If to the Company:

               Attn: Chairman of the Compensation Committee
                     Majesco Holdings Inc.

               If to Executive:

               at the last residential address known by the Company as provided
               by Executive in writing.

     15. Severability; Obligations. If any provision hereof becomes or is
declared by a court of competent jurisdiction to be illegal, unenforceable, or
void, this Agreement will continue in full force and effect without said
provision. Each of Majesco and Holdings shall be jointly and severally liable
for any Company, Majesco or Holdings obligations and commitments under this
Agreement.

                                       14

16. Arbitration.

     (a) If any dispute arises between the Company and Executive that the
parties cannot resolve themselves, including any dispute over the application,
validity, construction, or interpretation of this Agreement, arbitration in
accordance with the then-applicable National Rules for the Resolution of
Employment disputes of the American Arbitration Association shall provide the
exclusive remedy for resolving any such dispute, regardless of its nature;
provided, however, the Company may enforce Executive's obligations under
Sections 8 and 12 hereof by an action for injunctive relief and damages in a
court of competent jurisdiction.

     (b) This Section 16 shall apply to claims arising under state and federal
statutes, local ordinances, and the common law. The arbitrator shall apply the
same substantive law that a court with jurisdiction over the parties and their
dispute would apply under the terms of this Agreement. The arbitrator's remedial
authority shall equal the remedial power that a court with jurisdiction over the
parties and their dispute would have. If the then-applicable rules of the
American Arbitration Association conflict with the procedures of this Section
16, the latter shall apply.

     (c) If the parties cannot agree upon an arbitrator, the parties shall
select a single arbitrator from a list of seven arbitrators provided by the
American Arbitration Association ("AAA"). The names of the seven listed
arbitrators shall be derived from the AAA employment law roster. If the parties
cannot agree on selecting an arbitrator from that list, then the parties shall
alternately strike names from the list, with the first party to strike being
determined by lot. After each party has used three strikes, the remaining name
on the list shall be the arbitrator.

     (d) Each party may be represented by counsel or by another representative
of the party's choice and each party shall pay the costs and fees of its counsel
or other representative and its own filing and administrative fees provided,
however, that Executive will only be responsible to pay those costs and fees
which he would have had to pay for had the disputed matter been initiated in
court.

     (e) The arbitrator shall render an award and opinion in the form typical of
those rendered in labor arbitrations, and that award shall be final and binding
and non-appealable except as specifically provided by law. To the extent that
any part of this Section 16 is found to be legally unenforceable for any reason,
that part shall be modified or deleted in such a manner as to render this
Section 16 (or the remainder of this Section 16) legally enforceable and as to
ensure that except as provided in clause (b) of this Section 16, all conflicts
between the Company and Executive shall be resolved by neutral, binding
arbitration. The remainder of this Section 16 shall not be affected by any such
modification or deletion but shall be construed as severable and independent. If
a court finds that the arbitration procedures of this Section 16 are not
absolutely binding, then the parties intend any arbitration decision to be fully
admissible in evidence, given great weight by any finder of fact, and treated as
determinative to the maximum extent permitted by law.

     (f) Unless the parties agree otherwise, any arbitration shall take place in
the American Arbitration Association's offices in Somerset, New Jersey.

                                       15

     (g) EXECUTIVE HAS READ AND UNDERSTANDS THIS SECTION 16, WHICH DISCUSSES
ARBITRATION. EXECUTIVE UNDERSTANDS THAT BY SIGNING THIS AGREEMENT, EXECUTIVE
AGREES TO SUBMIT ANY CLAIMS ARISING OUT OF, RELATING TO, OR IN CONNECTION WITH
THIS AGREEMENT, OR THE INTERPRETATION, VALIDITY, CONSTRUCTION, PERFORMANCE,
BREACH OR TERMINATION THEREOF, OR EXECUTIVE'S EMPLOYMENT OR THE TERMINATION
THEREOF, TO BINDING ARBITRATION, AND THAT THIS ARBITRATION PROVISION CONSTITUTES
A WAIVER OF EXECUTIVE'S RIGHT TO A JURY TRIAL AND RELATES TO THE RESOLUTION OF
ALL DISPUTES RELATING TO ALL ASPECTS OF THE EMPLOYER/EMPLOYEE RELATIONSHIP,
INCLUDING BUT NOT LIMITED TO THE FOLLOWING:

          (I) ANY AND ALL CLAIMS FOR WRONGFUL DISCHARGE OF EMPLOYMENT, BREACH OF
     CONTRACT, BOTH EXPRESS AND IMPLIED; BREACH OF THE COVENANT OF GOOD FAITH
     AND FAIR DEALING, BOTH EXPRESS AND IMPLIED; NEGLIGENT OR INTENTIONAL
     INFLICTION OF EMOTIONAL DISTRESS; NEGLIGENT OR INTENTIONAL
     MISREPRESENTATION; NEGLIGENT OR INTENTIONAL INTERFERENCE WITH CONTRACT OR
     PROSPECTIVE ECONOMIC ADVANTAGE; AND DEFAMATION;

          (II) ANY AND ALL CLAIMS FOR VIOLATION OF ANY FEDERAL, STATE OR
     MUNICIPAL STATUTE, INCLUDING, WITHOUT LIMITATION, TITLE VII OF THE CIVIL
     RIGHTS ACT OF 1964, AS AMENDED, THE CIVIL RIGHTS ACT OF 1991, THE EQUAL PAY
     ACT, THE EMPLOYEE RETIREMENT INCOME SECURITY ACT, AS AMENDED, THE AGE
     DISCRIMINATION IN EMPLOYMENT ACT OF 1967, THE AMERICANS WITH DISABILITIES
     ACT OF 1990, THE FAMILY AND MEDICAL LEAVE ACT OF 1993, THE FAIR LABOR
     STANDARDS ACT, THE NEW JERSEY FAMILY LEAVE ACT, THE NEW JERSEY
     CONSCIENTIOUS EMPLOYEE PROTECTION ACT AND THE NEW JERSEY LAW AGAINST
     DISCRIMINATION; AND

          (III) ANY AND ALL CLAIMS ARISING OUT OF ANY OTHER FEDERAL, STATE OR
     LOCAL LAWS OR REGULATIONS RELATING TO EMPLOYMENT OR EMPLOYMENT
     DISCRIMINATION.

     (h) EXECUTIVE (I) UNDERSTANDS THAT OTHER OPTIONS SUCH AS FEDERAL AND STATE
ADMINISTRATIVE REMEDIES AND JUDICIAL REMEDIES EXIST AND (II) KNOWS THAT BY
SIGNING THIS AGREEMENT THOSE REMEDIES ARE FOREVER PRECLUDED AND THAT REGARDLESS
OF THE NATURE OF EXECUTIVE'S COMPLAINT, HE KNOWS THAT IT CAN ONLY BE RESOLVED BY
ARBITRATION.

     (i) To the extent Executive asserts a claim that would otherwise require
filing the claim with a governmental agency, Executive may, but need not, file
such claim with the applicable agency (including, without limitation, the Equal
Employment Opportunity Commission), and if Executive fails to do so, the Company
shall not assert a defense of failure to exhaust administrative remedies.

     17. No Conflict. Executive represents and warrants that he is not subject
to any agreement, instrument, order, judgment or decree of any kind, or any
other restrictive agreement of any character, which would prevent him from
entering into this Agreement or which would be breached by him upon the
performance of his duties pursuant to this Agreement.

     18. Legal and Tax Expenses. The Company will directly pay Executive's
counsel up to $20,000 for reasonable legal and tax advice expenses incurred in
connection with the negotiation and execution of this Agreement. Such payment
shall be made in full within 45 days after the Company's receipt of any
applicable invoices.

                                       16

     19. Integration. Except as otherwise provided herein, this Agreement
represents the entire agreement and understanding between the parties as to the
subject matter herein and supersedes all prior or contemporaneous agreements
whether written or oral. No waiver, alteration, or modification of any of the
provisions of this Agreement will be binding unless in a writing that
specifically references this Section and is signed by duly authorized
representatives of all of the parties hereto.

     20. Waiver of Breach. The waiver of a breach of any term or provision of
this Agreement, which must be in writing signed by all of the parties, will not
operate as or be construed to be a waiver of any other previous or subsequent
breach of this Agreement.

     21. Survival. The Confidential Information Agreement, the Company's and
Executive's responsibilities under Sections 3, 6, 7, 8, 9, 11, 12, 16 and
Section 18 will survive the termination of this Agreement.

     22. Headings. All captions and section headings used in this Agreement are
for convenient reference only and do not form a part of this Agreement.

     23. Tax Withholding. All payments made pursuant to this Agreement will be
subject to withholding of applicable taxes.

     24. Governing Law. This Agreement will be governed by the laws of the State
of New Jersey (with the exception of its conflict of laws provisions).

     25. Jurisdiction. The State of New Jersey shall have exclusive jurisdiction
to entertain any legal or equitable action with respect to Sections 8 or 12 of
this Agreement except that the Company may institute any such suit against
Executive in any jurisdiction in which he may be at the time. In the event suit
is instituted in New Jersey, it is agreed that service of summons or other
appropriate legal process may be effected upon any party by delivery it has to
the last known address.

     26. Acknowledgment. Executive acknowledges that he has had the opportunity
to discuss this matter with and obtain advice from his private attorney, has had
sufficient time to, and has carefully read and fully understands all the
provisions of this Agreement, and is knowingly and voluntarily entering into
this Agreement.

     27. Counterparts. This Agreement may be executed in counterparts, and each
counterpart will have the same force and effect as an original and will
constitute an effective, binding agreement on the part of each of the
undersigned.

         28. No Strict Construction: The language used in this Agreement will be
deemed to be the language chosen by the Company and Executive to express the
parties' mutual intent, and no rule of law or contract interpretation that
provides that in the case of ambiguity or uncertainty a provision should be
construed against the draftsperson will be applied against any party.

         IN WITNESS WHEREOF, each of the parties has executed this Agreement, in
the case of the Company by a duly authorized officer, as of the day and year
written below.

                                       17

COMPANY:

Majesco Sales Inc.

By:                                                        Date: August 24, 2004
    --------------------------------------

Title:
       -----------------------------------

Majesco Holdings Inc.

By:                                                        Date: August 24, 2004
   --------------------------------------

Title:
       ----------------------------------

EXECUTIVE:

                                                           Date: August 24, 2004
-----------------------------------------
Carl Yankowski

                                       18SUPPLEMENTAL EXECUTIVE
                                 RETIREMENT PLAN

                                  PREPARED FOR

                        ASPEN INSURANCE US SERVICES, INC.

                        ASPEN INSURANCE US SERVICES, INC.

                     SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN

                       ARTICLE I - PURPOSE; EFFECTIVE DATE

1.1.  PURPOSE. The purpose of this Supplemental Executive Retirement Plan
      (hereinafter, the "Plan") is to permit the company to provide selected
      individuals employed by Aspen Insurance US Services, Inc. with an
      additional benefit payable at termination of employment. It is intended
      that this plan, by providing this benefit, will assist the Company in
      attracting, motivating and retaining individuals of exceptional ability.

1.2.  EFFECTIVE DATE. The Plan shall be effective as of January 1, 2004.

                            ARTICLE II - DEFINITIONS

         For the purpose of this Plan, the following terms shall have the
meanings indicated, unless the context clearly indicates otherwise:

2.1.  ACCOUNT. "Account" means the account maintained on the books of the
      Company used solely to calculate the amount payable to each Participant
      under this Plan and shall not constitute a separate fund of assets.

2.2.  ACTUARIAL EQUIVALENT. "Actuarial Equivalent" means an equivalence in value
      between two (2) or more forms and/or times of payment based on a
      determination by an actuary chosen by the Company, using sound actuarial
      assumptions as of the time of such determination.

2.3.  AFFILIATE. "Affiliate" means any member of a controlled group of
      corporations, or a group of trades or businesses or other organizations
      under common control, with the Company as defined under Section 414 of the
      Code.

2.4.  BENEFICIARY. "Beneficiary" means the person, persons or entity as
      designated by the Participant, entitled under Article VI to receive any
      Plan benefits payable after the Participant's death.

2.5.  BOARD. "Board" means the Board of Directors of the Company.

2.6.  CHANGE IN CONTROL. A "Change in Control" shall occur if:

      a)    Any "person" or "group" (within the meaning of Sections 13(d) and
            14(d)(2) of the

            Securities Exchange Act of 1934, as amended) becomes the "beneficial
            owner" (as defined in Rule 13-d under such Act) of more than fifty
            (50%) of the then outstanding voting stock of the Company or of the
            parent company of the Company, other than through a transaction
            arranged by, or consummated with the prior approval of, the Board or
            the board of directors of the parent company of the Company,
            respectively; or

      b)    During any period of two (2) consecutive years, individuals who at
            the beginning of such period constitute the Board or the board of
            directors of the parent company of the Company (the "Incumbent
            Directors"), and any new director whose election or whose nomination
            for election by the shareholders of the Company or the shareholders
            of the parent company of the Company, as the case may be, was
            approved by a vote of at least two-thirds (2/3) of the Incumbent
            Directors of such board at the beginning of such period or whose
            election or nomination for election was previously so approved,
            cease for any reason to constitute a majority thereof; or

      c)    The shareholders of the parent company of the Company and/or
            shareholders of the Company approve a merger or consolidation of
            Company and/or the parent company of the Company, respectively, with
            any other corporation, other than a merger or consolidation which
            would result in the voting securities of a Company or the parent
            company of the Company (as applicable) outstanding immediately prior
            thereto continuing to represent (either by remaining outstanding or
            by being converted into voting securities of the surviving entity)
            more than eighty percent (80%) of the combined voting power of the
            voting securities of Company or the parent company of the Company
            (as applicable) or such surviving entity outstanding immediately
            after such merger or consolidation; or

      d)    The shareholders of Company and/or the parent company of the Company
            approve a plan of complete liquidation of Company and/or the parent
            company of the Company, or an agreement for the sale or disposition
            by Company and/or its parent company, as applicable, of all or
            substantially all of the assets of the Company or its parent
            company, as applicable.

2.7.  COMMITTEE. "Committee" means the Committee appointed by the Board to
      administer the Plan pursuant to Article VII. The initial Committee so
      designated shall consist of the President of the Company, the Vice
      President of Finance of the Company, and the Senior Director of Human
      Resources of the Company. In addition, the President may name additional
      individuals to the Committee.

2.8.  COMPANY. "Company" means ASPEN INSURANCE US SERVICES, INC., a Delaware
      corporation, and any successor to the business thereof.

2.9.  COMPANY CONTRIBUTION. "Company Contribution" means the Company
      contribution credited annually to a Participant's Account as described in
      Sections 4.1 and 4.3, below.

2.10. DETERMINATION DATE. "Determination Date" means the last business day of
      each calendar month.

2.11. DISCRETIONARY CONTRIBUTION. "Discretionary Contribution" means the Company
      contribution credited to a Participant's Account under Sections 4.1 and
      4.3, below.

2.12. DISTRIBUTION ELECTION. "Distribution Election" means the form prescribed
      by the Committee and completed by the Participant, indicating the timing
      for the commencement of benefit payments under this Plan in the event of
      termination of employment, as elected by the Participant.

2.13. FINANCIAL HARDSHIP. "Financial Hardship" means a severe financial hardship
      of the Participant resulting from a sudden and unexpected illness or
      accident of the Participant or of a dependent of the Participant, loss of
      the Participant's property due to casualty, or other similar extraordinary
      and unforeseeable circumstance arising as a result of events beyond the
      control of the Participant. Financial Hardship shall be determined based
      upon such standards as are, from time to time, established by the
      Committee, and such determination shall be in the sole discretion of the
      Committee.

2.14. INTEREST. "Interest" means the amount credited to a Participant's Account
      on each Determination Date. The rate of Interest so credited to the
      Participant's Account shall be equal to an annual yield of six percent
      (6%) compounded monthly. The Committee shall be permitted to alter the
      rate of Interest credited in subsequent calendar years provided that the
      Participant is given at least ninety (90) days notice prior to the time
      the change in rate of Interest shall become effective, except that the
      Committee shall not alter or change the rate of Interest applicable to a
      Participant after that Participant's termination of employment.

2.15. NORMAL RETIREMENT AGE. "Normal Retirement Age" means age sixty (60).

2.16. PARTICIPANT. "Participant" means any employee who is eligible, pursuant to
      Section 3.1, below, to participate in this Plan, and who has elected to do
      so in accordance with Article III, below. Such employee shall remain a
      Participant in this Plan until such time as all benefits payable under
      this Plan have been paid in accordance with the provisions hereof.

2.17. PLAN. "Plan" means this Supplemental Executive Retirement Plan as may be
      amended from time to time.

                   ARTICLE III - ELIGIBILITY AND PARTICIPATION

3.1.  ELIGIBILITY AND PARTICIPATION.

      a)    ELIGIBILITY. Eligibility to participate in the Plan shall be limited
            to those select group of management and/or highly compensated
            employees of Company who are designated and approved by the
            Committee, from time to time.

      b)    PARTICIPATION. An employee's participation in the Plan shall be
            effective upon notification to

            the employee by the Committee of eligibility to participate, and
            completion and submission of a Participation Agreement and a
            Distribution Election to the Committee no later than thirty (30)
            days after receiving notification of participation.

3.2.  DISTRIBUTION ELECTION. A Participant shall specify the form of benefits as
      permitted by Section 5.5 below.

3.3.  CHANGE IN EMPLOYMENT STATUS. If the Committee determines that a
      Participant's employment performance is no longer at a level that warrants
      reward through participation in this Plan, but does not terminate the
      Participant's employment with Company, the Participant's benefits under
      this Plan shall be limited to the Account Balance as of the date so
      specified by the Committee, and no new Company Contributions or
      Discretionary Contributions shall be made on behalf of such Participant
      after notice of such determination is given by the Committee, unless the
      Participant later satisfies the requirements of ss.3.1, above. If the
      Committee, in its sole discretion, determines that the Participant no
      longer qualifies as a member of a select group of management or highly
      compensated employees, as determined in accordance with the Employee
      Retirement Income Security Act of 1974, as amended, the Committee may, in
      its sole discretion terminate participation in the Plan and distribute the
      Participant's Account Balance in accordance with Article V of this Plan as
      if the Participant had terminated employment with the Company as of that
      time.

                          ARTICLE IV - BENEFIT ACCOUNT

4.1.  ACCOUNTS. Subject to satisfactory performance of the Company and the
      Participant, as determined by the Committee in its sole discretion,
      Company Contributions shall be credited to the Participant's Account as of
      January 1 of each year, provided that the Participant is employed by the
      Company on such date. The amount of the Participant's annual Company
      Contribution shall be set forth in his or her Participation Agreement.
      Notwithstanding the foregoing, in no event shall Company Contributions be
      made following the Participant's attainment of Normal Retirement Age.
      Discretionary Contributions and Interest thereon shall be credited to the
      Participant's Account at such times and in such amounts as recommended by
      the Committee. The Accounts and the Contributions to them shall be used
      solely to calculate the amount payable to each Participant under this Plan
      and shall not constitute a separate fund of assets.

4.2.  WITHHOLDING. Any withholding of taxes or other amounts with respect to
      such Company Contributions or Discretionary Contributions that are
      required by local, state or federal law shall be withheld from
      compensation otherwise payable to the Participant to the maximum extent
      possible, and any remaining amount shall reduce the amount credited to the
      Participant's Account in a manner specified by the Committee.

4.3.  DETERMINATION OF ACCOUNTS. Each Participant's Account as of each
      Determination Date shall consist of the balance of the Account as of the
      immediately preceding Determination Date, adjusted as follows:

      a)    CONTRIBUTIONS. Each Account shall be increased by any Company
            Contributions and Discretionary Contributions credited since such
            prior Determination Date as set forth above and as directed by the
            Committee.

      b)    DISTRIBUTIONS. Each Account shall be reduced by the amount of each
            benefit payment made from that Account since the prior Determination
            Date.

      c)    INTEREST. Each Account shall be increased by the Interest credited
            to such Account since such Determination Date.

4.4.  VESTING OF ACCOUNTS. Each Participant shall be one hundred percent (100%)
      vested in the Company Contributions and Interest thereon at all times;
      each Participant shall be vested in the Discretionary Contributions and
      Interest thereon as provided by the Committee in their discretion.
      Notwithstanding the forgoing, a Participant shall be one hundred percent
      (100%) vested in the entire Account and Interest thereon in the event of
      Normal Retirement, or death prior to the commencement of payments under
      this Plan.

4.5.  STATEMENT OF ACCOUNTS. The Committee shall give to each Participant a
      statement showing the balances in the Participant's Account on an annual
      basis.

                            ARTICLE V - PLAN BENEFITS

5.1.  NORMAL RETIREMENT. Upon termination of employment with the Company and all
      of its Affiliates at or after Normal Retirement Age, the Participant's
      Account shall be distributed to the Participant in the manner chosen by
      the Participant and set forth in his or her Distribution Election, and
      payments shall commence as soon as is administratively practical after
      termination of employment; provided, however, that if no election is made
      by the Participant with respect to the form of payment, payment of
      benefits under this section shall be made in twenty-three (23) annual
      installments.

5.2.  TERMINATION PRIOR TO RETIREMENT. Upon termination of employment with the
      Company and all of its Affiliates prior to Normal Retirement Age, the
      vested portion of the Participant's Account shall be distributed to the
      Participant in the manner chosen by the Participant and set forth in his
      or her Distribution Election, and payments shall commence as soon as is
      administratively practical after termination of employment; provided,
      however, that if no election is made by the Participant with respect to
      the form of payment, payment of benefits under this section shall be made
      in ten (10) annual installments.

5.3.  DEATH BENEFIT. Upon the death of a Participant prior to the termination of
      employment with the Company and commencement of benefits under this Plan,
      Company shall pay to the Participant's Beneficiary an amount equal to the
      Participant's Account balance in the form of a lump sum payment, except
      that the Committee may grant, in its sole discretion, a request made by
      the Participant's Beneficiary(ies) for payment to be made in an Actuarial
      Equivalent form. In the event of the death of the Participant after the
      commencement of benefits under this Plan from any Account, the benefits
      from that Account shall be paid to the Participant's designated
      Beneficiary from that Account at the same time and in the same manner as
      if the Participant had survived, except that the Committee may, in its
      sole discretion, approve a request for payment in an Actuarial Equivalent
      form.

5.4.  HARDSHIP DISTRIBUTIONS. Upon a finding that a Participant has suffered a
      Financial Hardship, the Committee may permit, in its sole discretion, a
      distributions from the Participant's Account. The amount of such
      distribution shall be limited to the amount reasonably necessary to meet
      the Participant's needs resulting from the Financial Hardship, and will
      not exceed the Participant's vested Account balance.

5.5.  FORM OF PAYMENT. Except as otherwise provided in Sections 5.1, 5.2, or
      5.3, benefits payable from any Account under this Plan shall be paid in
      the form of benefit specified by the Participant in his or her
      Distribution Election. The most recently submitted Distribution Election
      shall be effective for the entire vested Account balance unless amended in
      writing by the Participant and delivered to the Committee. If, at the time
      payment of benefits under this Plan becomes due and payable, the
      Participant's most recent election as to the form of payment was made
      within one (1) year of such payment, then the most recent election made by
      the Participant more that one year prior to the time of payment shall be
      used to determine the form of payment. The permitted forms of benefit
      payments that may be specified in the Participant's Distribution Election
      are:

      a)    A lump sum amount which is equal to the vested Account balance;

      b)    Annual installments for a period of up to twenty-three (23) years
            (or in the event of a termination prior to Normal Retirement Age, a
            maximum of ten (10) years) where the amount of the annual payment
            shall be equal to the balance of the Account immediately prior to
            the payment, multiplied by a fraction, the numerator of which is one
            (1) and the denominator of which commences at the number of annual
            payments initially chosen and is reduced by one (1) in each
            succeeding year. Interest on the unpaid balance shall be based on
            the most recent allocation among the available Valuation Funds
            chosen by the Participant, made in accordance with Section 4.3,
            above; or,

      c)    Any Actuarial Equivalent form of payment which is requested by the
            Participant and approved by the Committee in its sole discretion.

5.6.  WITHHOLDING; PAYROLL TAXES. Company shall withhold from any payment made
      pursuant to this Plan any taxes required to be withheld from such payments
      under local, state or federal law. A Beneficiary, however, may elect not
      to have withholding of federal income tax pursuant to Section 3405(a)(2)
      of the Code, or any successor provision thereto.

5.7.  PAYMENT TO GUARDIAN. If a Plan benefit is payable to a minor or a person
      declared incompetent or

      to a person incapable of handling the disposition of the property, the
      Committee may direct payment to the guardian, legal representative or
      person having the care and custody of such minor, incompetent or person.
      The Committee may require proof of incompetency, minority, incapacity or
      guardianship as it may deem appropriate prior to distribution. Such
      distribution shall completely discharge the Committee and Company from all
      liability with respect to such benefit.

5.8.  EFFECT OF PAYMENT. The full payment of the applicable benefit under this
      Article V shall completely discharge all obligations on the part of the
      Company to the Participant (and the Participant's Beneficiary) with
      respect to the operation of this Plan, and the Participant's (and
      Participant's Beneficiary's) rights under this Plan shall terminate.

                      ARTICLE VI - BENEFICIARY DESIGNATION

6.1.  BENEFICIARY DESIGNATION. Each Participant shall have the right, at any
      time, to designate one (1) or more persons or entity as Beneficiary (both
      primary as well as secondary) to whom benefits under this Plan shall be
      paid in the event of Participant's death prior to complete distribution of
      the Participant's vested Account balance. Each Beneficiary designation
      shall be in a written form prescribed by the Committee and shall be
      effective only when filed with the Committee during the Participant's
      lifetime.

6.2.  CHANGING BENEFICIARY. Any Beneficiary designation may be changed by an
      unmarried Participant without the consent of the previously named
      Beneficiary by the filing of a new Beneficiary designation with the
      Committee.

6.3.  NO BENEFICIARY DESIGNATION. If any Participant fails to designate a
      Beneficiary in the manner provided above, if the designation is void, or
      if the Beneficiary designated by a deceased Participant dies before the
      Participant or before complete distribution of the Participant's benefits,
      the Participant's Beneficiary shall be the person in the first of the
      following classes in which there is a survivor:

      a)    The Participant's surviving spouse;

      b)    The Participant's children in equal shares, except that if any of
            the children predeceases the Participant but leaves surviving issue,
            then such issue shall take by right of representation the share the
            deceased child would have taken if living;

      c)    The Participant's estate.

6.4.  EFFECT OF PAYMENT. Payment to the Beneficiary shall completely discharge
      the Company's obligations under this Plan.

                          ARTICLE VII - ADMINISTRATION

7.1.  COMMITTEE; DUTIES. This Plan shall be administered by the Committee, which
      shall consist of not less than three (3) persons named as the initial
      Committee in this Plan or as subsequently appointed by the President,
      except in the event of a Change in Control as provided in Section 7.5
      below. The Committee shall have the authority to make, amend, interpret
      and enforce all appropriate rules and regulations for the administration
      of the Plan and decide or resolve any and all questions, including
      interpretations of the Plan, as they may arise in such administration. A
      majority vote of the Committee members shall control any decision. Members
      of the Committee may be Participants under this Plan, except that
      notwithstanding anything to the contrary, a member of the Committee shall
      not vote on any issue which directly affects the determination, payment or
      valuation of a benefit due to that Committee member under this Plan.

7.2.  AGENTS. The Committee may, from time to time, employ agents and delegate
      to them such administrative duties as it sees fit, and may from time to
      time consult with counsel who may be counsel to the Company.

7.3.  BINDING EFFECT OF DECISIONS. The decision or action of the Committee with
      respect to any question arising out of or in connection with the
      administration, interpretation and application of the Plan and the rules
      and regulations promulgated hereunder shall be final, conclusive and
      binding upon all persons having any interest in the Plan.

7.4.  INDEMNITY OF COMMITTEE. The Company shall indemnify and hold harmless the
      members of the Committee against any and all claims, loss, damage, expense
      or liability arising from any action or failure to act with respect to
      this Plan on account of such member's service on the Committee, except in
      the case of gross negligence or willful misconduct.

7.5.  ELECTION OF COMMITTEE AFTER CHANGE IN CONTROL. After a Change in Control,
      vacancies on the Committee shall be filled by majority vote of the
      remaining Committee members and Committee members may be removed only by
      such a vote. If no Committee members remain, a new Committee shall be
      elected by majority vote of the Participants in the Plan immediately
      preceding such Change in control. No amendment shall be made to Article
      VII or other Plan provisions regarding Committee authority with respect to
      the Plan without prior approval by the Committee.

                         ARTICLE VIII - CLAIMS PROCEDURE

8.1.  CLAIM. Any person or entity claiming a benefit, requesting an
      interpretation or ruling under the Plan (hereinafter referred to as
      "Claimant"), or requesting information under the Plan shall

      present the request in writing to the Committee, which shall respond in
      writing as soon as practical.

8.2.  DENIAL OF CLAIM. If the claim or request is denied, the written notice of
      denial shall state:

      a)    The reasons for denial, with specific reference to the Plan
            provisions on which the denial is based;

      b)    A description of any additional material or information required and
            an explanation of why it is necessary; and

      c)    An explanation of the Plan's claim review procedure.

8.3.  REVIEW OF CLAIM. Any Claimant whose claim or request is denied or who has
      not received a response within sixty (60) days may request a review by
      notice given in writing to the Committee. Such request must be made within
      sixty (60) days after receipt by the Claimant of the written notice of
      denial, or in the event Claimant has not received a response sixty (60)
      days after receipt by the Committee of Claimant's claim or request. The
      claim or request shall be reviewed by the Committee which may, but shall
      not be required to, grant the Claimant a hearing. On review, the claimant
      may have representation, examine pertinent documents, and submit issues
      and comments in writing.

8.4.  FINAL DECISION. The decision on review shall normally be made within sixty
      (60) days after the Committee's receipt of claimant's claim or request. If
      an extension of time is required for a hearing or other special
      circumstances, the Claimant shall be notified and the time limit shall be
      one hundred twenty (120) days. The decision shall be in writing and shall
      state the reasons and the relevant Plan provisions. All decisions on
      review shall be final and bind all parties concerned.

                 ARTICLE IX - AMENDMENT AND TERMINATION OF PLAN

9.1.  AMENDMENT. The Committee may at any time amend the Plan by written
      instrument executed by all Committee members, notice of which shall be
      given to all Participants and to any Beneficiary receiving installment
      payments, subject to the following:

      a)    PRESERVATION OF ACCOUNT BALANCE. No amendment shall reduce the
            amount accrued in any Account as of the date such notice of the
            amendment is given.

      b)    CHANGES IN INTEREST RATE. No amendment shall reduce, either
            prospectively or retroactively, the rate of Interest to be credited
            to the amount already accrued in any of the Participant's Account
            and any amounts credited to the Account.

      c)    CHANGE IN CONTROL. Notwithstanding the foregoing, the Plan may not
            be amended in any material respect, including the definition of
            Interest, during the two (2) year period following a Change in
            Control.

9.2.  COMPANY'S RIGHT TO TERMINATE. The Committee may at any time partially or
      completely terminate the Plan if, in its judgment, the tax, accounting or
      other effects of the continuance of the Plan, or potential payments
      thereunder would not be in the best interests of Company.

      a)    PARTIAL TERMINATION. The Committee may partially terminate the Plan
            by instructing the Committee not to accept any additional Company or
            Discretionary Contributions. If such a partial termination occurs,
            the Plan shall continue to operate and be effective with regard to
            Discretionary Contributions made prior to the effective date of such
            partial termination.

      b)    COMPLETE TERMINATION. The Committee may completely terminate the
            Plan by written instrument executed by all Committee members and
            approved by the Board instructing the Committee not to accept any
            additional Company or Discretionary Contributions. In the event of
            complete termination, the Plan shall cease to operate and Company
            shall distribute the Account to the appropriate Participant. Payment
            shall be made as a lump sum as soon as is practical but no later
            than ninety (90) days following termination of the Plan.

                            ARTICLE X - MISCELLANEOUS

10.1. UNFUNDED PLAN. This plan is an unfunded plan maintained primarily to
      provide deferred compensation benefits for a select group of "management
      or highly-compensated employees" within the meaning of Sections 201, 301,
      and 401 of the Employee Retirement Income Security Act of 1974, as amended
      ("ERISA"), and therefore is exempt from the provisions of Parts 2, 3 and 4
      of Title I of ERISA. Accordingly, the Committee may terminate the Plan and
      make no further benefit payments or remove certain employees as
      Participants if it is determined by the United States Department of Labor,
      a court of competent jurisdiction, or an opinion of counsel that the Plan
      constitutes an employee pension benefit plan within the meaning of Section
      3 (2) of ERISA (as currently in effect or hereafter amended) which is not
      so exempt.

10.2. COMPANY OBLIGATION. The obligation to make benefit payments to any
      Participant under the Plan shall be an obligation solely of the Company
      with respect to the benefits receivable from, and contributions by, that
      Company and shall not be an obligation of another company.

10.3. UNSECURED GENERAL CREDITOR. Notwithstanding any other provision of this
      Plan, Participants and Participants' Beneficiary shall be unsecured
      general creditors, with no secured or preferential rights to any assets of
      Company or any other party for payment of benefits under this Plan. Any
      property held by Company for the purpose of generating the cash flow for
      benefit payments shall remain its general, unpledged and unrestricted
      assets. Company's obligation under the Plan shall be an unfunded and
      unsecured promise to pay money in the future.

10.4. TRUST FUND. Company shall be responsible for the payment of all benefits
      provided under the Plan. At its discretion, Company may establish one (1)
      or more trusts, with such trustees as the Committee may approve, for the
      purpose of assisting in the payment of such benefits. Although such a
      trust may be irrevocable, its assets shall be held for payment of all
      Company's general

       creditors in the event of insolvency. To the extent any benefits provided
       under the Plan are paid from any such trust, Company shall have no
       further obligation to pay them. If not paid from the trust, such benefits
       shall remain the obligation of Company.

10.5.  NONASSIGNABILITY. Neither a Participant nor any other person shall have
       any right to commute, sell, assign, transfer, pledge, anticipate,
       mortgage or otherwise encumber, transfer, hypothecate or convey in
       advance of actual receipt the amounts, if any, payable hereunder, or any
       part thereof, which are, and all rights to which are, expressly declared
       to be unassignable and non-transferable. No part of the amounts payable
       shall, prior to actual payment, be subject to seizure or sequestration
       for the payment of any debts, judgments, alimony or separate maintenance
       owed by a Participant or any other person, nor be transferable by
       operation of law in the event of a Participant's or any other person's
       bankruptcy or insolvency.

10.6.  NOT A CONTRACT OF EMPLOYMENT. This Plan shall not constitute a contract
       of employment between Company and the Participant. Nothing in this Plan
       shall give a Participant the right to be retained in the service of
       Company or to interfere with the right of the Company to discipline or
       discharge a Participant at any time.

10.7.  PROTECTIVE PROVISIONS. A Participant will cooperate with Company by
       furnishing any and all information requested by Company, in order to
       facilitate the payment of benefits hereunder, and by taking such physical
       examinations as Company may deem necessary and taking such other action
       as may be requested by Company.

10.8.  GOVERNING LAW. The provisions of this Plan shall be construed and
       interpreted according to the laws of the State of Massachusetts except as
       preempted by federal law.

10.9.  VALIDITY. If any provision of this Plan shall be held illegal or invalid
       for any reason, said illegality or invalidity shall not affect the
       remaining parts hereof, but this Plan shall be construed and enforced as
       if such illegal and invalid provision had never been inserted herein.

10.10. NOTICE. Any notice required or permitted under the Plan shall be
       sufficient if in writing and hand delivered or sent by registered or
       certified mail. Such notice shall be deemed given as of the date of
       delivery or, if delivery is made by mail, as of the date shown on the
       postmark on the receipt for registration or certification. Mailed notice
       to the Committee shall be directed to the company's address. Mailed
       notice to a Participant or Beneficiary shall be directed to the
       individual's last known address in company's records.

10.11. SUCCESSORS. The provisions of this Plan shall bind and inure to the
       benefit of Company and its successors and assigns. The term successors as
       used herein shall include any corporate or other business entity which
       shall, whether by merger, consolidation, purchase or otherwise acquire
       all or substantially all of the business and assets of Company, and
       successors of any such corporation or other business entity.

                                    ASPEN INSURANCE US SERVICES, INC.

                                    BY:

                                    BY: Christian J. Maciejewski
                                        -------------------------------------

                                    BY: /s/  Christian J. Maciejewski
                                        -------------------------------------

                                    DATED: August 25, 2004
                                           ----------------------------------

                       ASPEN INSURANCE US SERVICES, INC.
                     SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN
                             PARTICIPATION AGREEMENT

Participant: Peter P. Coghlan                    SSN:
             ----------------------------------  -------------------------------

--------------------------------------------------------------------------------
ACKNOWLEDGMENT

I, the undersigned Participant, hereby acknowledge receiving notification of my
eligibility to participate in the Aspen Insurance US Services, Inc. Supplemental
Executive Retirement Plan, effective January 1, 2004. I acknowledge that I have
received a copy of the Plan document and Plan summary materials, which include a
description of the Plan provisions.

By signing this Participation Agreement, I agree to be bound by the terms of the
Supplemental Executive Retirement Plan as set forth in the Plan document. If
there is a conflict between the Plan document and any other communication,
written or oral, including the Plan summary, then the terms of the Plan document
will control.
--------------------------------------------------------------------------------

--------------------------------------------------------------------------------
COMPANY CONTRIBUTION

The Plan provides for annual contributions to be made to the Participant's
Account as determined by the Committee in its sole discretion. The amount of the
Company Contribution as defined by the Plan shall be $ 119,500.

The Company Contribution and the Participant's Account shall be used solely to
calculate the amount payable under the Plan and shall not constitute a separate
fund of assets. Nothing in the Plan or in this Participation Agreement shall
imply that the Participant has any secured or preferential rights to any assets
of Aspen Insurance US Services, Inc. (the "Company") or any other party for
payment of benefits under this Plan. The obligation under the Plan shall be an
unfunded and unsecured promise to pay money in the future.
--------------------------------------------------------------------------------

--------------------------------------------------------------------------------
DISTRIBUTION ELECTION

Retirement: In the event of my termination of employment with the Company at or
after Normal Retirement Age (as defined in the Plan document), the benefit shall
be paid at the time and manner elected below:

[       ]  as soon as administratively practical after termination of employment
           in the form of a lump sum.

[   X   ]  annual installments
enter #    (up to 23 years)
of years

Termination: In the event of my termination of employment with the Company prior
to Normal Retirement Age (as defined in the Plan document), the benefit shall be
paid at the time and in the manner elected below:

[       ]  as soon as administratively practical after termination of employment
           in the form of a lump sum.

[   X   ]  annual installments
enter #    (up to 10 years)
of years
--------------------------------------------------------------------------------

I hereby designate the following as beneficiary(ies) to receive the death
benefits payable under the Aspen Insurance US Services, Inc. Supplemental
Executive Retirement Plan as a result of my death:

--------------------------------------------------------------------------------
BENEFICIARY DESIGNATION
PRIMARY BENEFICIARY(IES):

  ----------------------------  -----------------  ---------------  ------------
  Name                          Date of Birth      Relationship     % Share

  ------------------------------------------------------------------------------
  Address

  ----------------------------  -----------------  ---------------  ------------
  Name                          Date of Birth      Relationship     % Share

  ------------------------------------------------------------------------------
  Address

CONTINGENT BENEFICIARY(IES):

  ----------------------------  -----------------  ---------------  ------------
  Name                          Date of Birth      Relationship     % Share

  ------------------------------------------------------------------------------
  Address

  ----------------------------  -----------------  ---------------  ------------
  Name                          Date of Birth      Relationship     % Share

  ------------------------------------------------------------------------------
  Address

  ----------------------------  -----------------  ---------------  ------------
  Unless otherwise indicated above, payment to two or more beneficiaries shall
be paid in equal shares. The share of any beneficiary who dies before the
Participant shall be divided among the surviving beneficiaries in proportion to
their interests. If no beneficiary survives the Participant, payment shall be
made to the estate of the Participant.
--------------------------------------------------------------------------------

In witness hereof, the Participant and the Company have executed this
Participation Agreement in duplicate as of the date noted below.

/s/ Peter Coghlan                                             8/25/2004
-------------------------------------------           --------------------------

Signature of Participant                              Date

/s/ Chris Maciejewski                                         8/25/2004
-------------------------------------------           --------------------------

Company                                     Date

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