Document:

<PAGE>
                                                                    Exhibit 10.1

                                                                 EXECUTION DRAFT

================================================================================

                            ASSET PURCHASE AGREEMENT

                                  BY AND AMONG

                         INSURANCE PLUS AGENCY II, INC.,

                   YALE INTERNATIONAL INSURANCE AGENCY, INC.,

                         THE STOCKHOLDER OF THE SELLERS

                  ACCEPTANCE INSURANCE AGENCY OF ILLINOIS, INC.

                                       AND

                          FIRST ACCEPTANCE CORPORATION

                          DATED AS OF JANUARY 12, 2006

================================================================================

     THIS DOCUMENT IS NOT INTENDED TO CREATE, AND WILL NOT BE DEEMED TO CREATE,
A LEGALLY BINDING OR ENFORCEABLE OFFER OR AGREEMENT OF ANY TYPE OR NATURE,
UNLESS AND UNTIL IT IS EXECUTED AND DELIVERED BY EACH PARTY HERETO. UNTIL SO
EXECUTED AND DELIVERED, THIS DOCUMENT IS INTENDED SOLELY TO FACILITATE
DISCUSSIONS AMONG THE PARTIES. THE PROVISIONS CONTAINED HEREIN ARE SUBJECT TO
CHANGE BASED ON THE RESULTS OF THE PURCHASER'S ONGOING DUE DILIGENCE REVIEW OF
THE SELLERS.

<PAGE>

                                TABLE OF CONTENTS

                         (not a part of this Agreement)

<TABLE>
<CAPTION>
                                                                            PAGE
                                                                            ----
<S>                                                                         <C>
ARTICLE I DEFINITIONS....................................................     1
   1.1  Definitions......................................................     1
   1.2  Other Definitional Provisions....................................     5
   1.3  Cross Reference of Other Definitions.............................     6

ARTICLE II PURCHASE AND SALE; ASSUMPTION OF CERTAIN LIABILITIES;
   CLOSING...............................................................     7
   2.1  Purchase and Sale................................................     7
   2.2  Closing Transactions.............................................    11
   2.3  Performance Payments.............................................    12

ARTICLE III CONDITIONS TO CLOSING........................................    14
   3.1  Conditions to the Purchaser's Obligations........................    14
   3.2  Conditions to the Sellers' Obligation............................    16

ARTICLE IV REPRESENTATIONS AND WARRANTIES CONCERNING THE
   SELLER AND THE STOCKHOLDER............................................    17
   4.1  Incorporation, Organization and Corporate Power..................    17
   4.2  Authorization of Transactions....................................    17
   4.3  Capitalization...................................................    18
   4.4  Subsidiaries; Investments........................................    18
   4.5  Absence of Conflicts.............................................    18
   4.6  Financial Statements and Related Matters.........................    18
   4.7  Absence of Undisclosed Liabilities...............................    18
   4.8  No Material Adverse Effect.......................................    19
   4.9  Absence of Certain Developments..................................    19
   4.10 Assets...........................................................    20
   4.11 Title to Properties..............................................    21
   4.12 Taxes............................................................    22
   4.13 Contracts and Commitments........................................    23
   4.14 Proprietary Rights...............................................    24
   4.15 Litigation; Proceedings..........................................    25
   4.16 Brokerage........................................................    25
   4.17 Governmental Licenses and Permits................................    26
   4.18 Employees........................................................    26
   4.19 Employee Benefit Matters.........................................    26
   4.20 Insurance........................................................    27
   4.21 Affiliate Transactions...........................................    28
   4.22 Compliance with Laws.............................................    28
   4.23 Environmental Matters............................................    28
   4.24 Limitation on Warranties.........................................    29

ARTICLE V REPRESENTATIONS AND WARRANTIES CONCERNING THE PURCHASER........    29
   5.1  Incorporation, Organization and Corporate Power..................    29
</TABLE>

                                       -i-

<PAGE>

<TABLE>
<S>                                                                         <C>
   5.2  Authorization of Transaction.....................................    29
   5.3  No Violation.....................................................    29
   5.4  Governmental Authorities and Consents............................    29
   5.5  Litigation.......................................................    30
   5.6  Brokerage........................................................    30
   5.7  Solvency.........................................................    30

ARTICLE VI INDEMNIFICATION AND RELATED MATTERS...........................    30
   6.1  Survival.........................................................    30
   6.2  Indemnification..................................................    31
   10.9 Indemnification Exclusive Remedy.................................    35

ARTICLE VII ADDITIONAL AGREEMENTS........................................    36
   7.1  Continuing Assistance............................................    36
   7.2  Tax Matters......................................................    36
   7.3  Press Releases and Announcements.................................    37
   7.4  Further Transfers................................................    37
   7.5  Transition Assistance............................................    37
   7.6  Expenses.........................................................    38
   7.7  Exclusivity......................................................    38
   7.8  Books and Records................................................    38
   7.9  Noncompetition, Nonsolicitation and Confidentiality..............    38
   7.10 Employees........................................................    41
   7.11 Seller's Name Change.............................................    41
   7.12 Allocation of Purchase Price.....................................    41
   7.13 Third Party Consents.............................................    42
   7.14 Insurance........................................................    42
   7.15 Bulk Sales.......................................................    43

ARTICLE VIII MISCELLANEOUS...............................................    43
   8.1  Amendment and Waiver.............................................    43
   8.2  Notices..........................................................    43
   8.3  Binding Agreement; Assignment....................................    44
   8.4  Severability.....................................................    45
   8.5  No Strict Construction...........................................    45
   8.6  Construction.....................................................    45
   8.7  Captions.........................................................    45
   8.8  Entire Agreement.................................................    46
   8.9  Counterparts.....................................................    46
   8.10 Governing Law....................................................    46
   8.11 Parties in Interest..............................................    46
   8.12 Guaranty.........................................................    46
</TABLE>

                                      -ii-

<PAGE>

                               INDEX OF SCHEDULES

<TABLE>
<S>                                     <C>
Terminated Leases Schedule              Schedule 1.1
Assumed Contracts Schedule              Schedule 2.1(c)
Fixed Assets Schedule                   Schedule 2.1(a)(xiv)
Pro-Ration Schedule                     Schedule 2.2
Prepayment Schedule                     Schedule 2.1(e)
Proprietary Rights Schedule             Schedule 4.14(a)
Contracts Schedule                      Schedule 4.13(a)
Retained Assets Schedule                Schedule 2.1(b)(iii)
Conflicts Schedule                      Schedule 4.5
Financial Statements Schedule           Schedule 4.6
Developments Schedule                   Schedule 4.8, 4.9
Leases Schedule                         Schedule 4.11(b); 4.11(c)
Assets Schedule                         Schedule 4.10
Taxes Schedule                          Schedule 4.12
Litigation Schedule                     Schedule 4.15
Brokerage Schedule                      Schedule 4.16
Permits Schedule                        Schedule 4.17
Employees Schedule                      Schedule 4.18
Benefit Plans Schedule                  Schedule 4.19(a)
Insurance Schedule                      Schedule 4.20
Affiliated Transactions Schedule        Schedule 4.21
Governmental Authorities and Consents   Schedule 5.4
Excluded Computer Software Schedule     Schedule 2.1(b)(xii)
</TABLE>

                                      -iii-

<PAGE>

                                INDEX OF EXHIBITS

<TABLE>
<S>                                     <C>
Exhibit A............................   Form of Escrow Agreement
Exhibit B............................   Form of New Leases
Exhibit C............................   Form of Transition Services Agreement
</TABLE>

                                      -iv-

<PAGE>

                            ASSET PURCHASE AGREEMENT

          THIS ASSET PURCHASE AGREEMENT (this "Agreement") is made as of January
12, 2006, by and among Insurance Plus Agency II, Inc., an Illinois corporation
("Insurance Plus"), Yale International Insurance Agency, Inc., an Illinois
corporation ("Yale" and together with Insurance Plus, the "Sellers"),
Constantine Danos, the sole stockholder of the Sellers and the "Stockholder"),
Acceptance Insurance Agency of Illinois, Inc., an Illinois corporation (the
"Purchaser") and First Acceptance Corporation, a Delaware corporation
("Parent"). The Sellers, the Stockholder, Purchaser and Parent are referred to
herein collectively as the "Parties" and individually as a "Party."

          WHEREAS, the Stockholder owns beneficially and of record 100% of the
issued and outstanding shares of capital stock of the Sellers;

          WHEREAS, the Sellers are engaged in the business of operating retail
insurance agencies to market, sell, distribute and service private automobile
insurance products (the "Business"); and

          WHEREAS, upon the terms and subject to the conditions set forth in
this Agreement, the Purchaser desires to acquire from the Sellers, and the
Sellers desire to sell to the Purchaser, all of the Sellers' business, assets
and properties (operating as a going concern) constituting the Business, as more
specifically described in this Agreement.

          WHEREAS, Purchaser is a wholly-owned direct subsidiary of USAuto
Holdings, Inc., which is a wholly-owned direct subsidiary of Parent.

          NOW, THEREFORE, for good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the Parties, intending to be
legally bound, agree as follows:

                                    ARTICLE I
                                   DEFINITIONS

          1.1 DEFINITIONS. For purposes hereof, the following terms, when used
herein with initial capital letters, shall have the respective meanings set
forth herein:

          "Affiliated Group" means an affiliated group as defined in Section
1504 of the Code (or any similar combined, consolidated or unitary group defined
under state, local or non-U.S. Tax law).

          "Agreement" means this Asset Purchase Agreement, including all
Exhibits and Schedules hereto, as it may be amended from time to time in
accordance with its terms.

          "Business Day" means a day other than a Saturday, Sunday or other day
on which commercial banks are authorized or required to close under the laws of
the United States.

<PAGE>

          "Cash" means cash, cash equivalents and marketable securities
(including, without limitation, all money market accounts, mutual fund accounts
and repurchase agreements).

          "Code" means the United States Internal Revenue Code of 1986, as
amended.

          "Environmental and Safety Requirements" means whenever in effect all
federal, state, local and foreign statutes, regulations, ordinances and similar
provisions having the force or effect of law, all judicial and administrative
orders and determinations, all contractual obligations and all common law and
civil law concerning public health and safety, worker health and safety,
pollution or protection of the environment, including all such standards of
conduct, guidelines and bases of obligations relating to the presence, use,
production, generation, handling, transport, treatment, storage, disposal,
distribution, labeling, testing, processing, discharge, release, threatened
release, control, or cleanup of any hazardous materials, hazardous substances or
hazardous wastes, chemical substances or mixtures, pesticides, pollutants,
contaminants, toxic chemicals, petroleum products or by-products, asbestos,
mold, polychlorinated biphenyls (or PCBs), noise, odor or radiation.

          "GAAP" means, at a given time, United States generally accepted
accounting principles, as consistently applied by Sellers to the extent such
application by Sellers did not violate United States generally accepted
accounting principles.

          "Indebtedness" of any Person means, without duplication: (a)
indebtedness for borrowed money or for the deferred purchase price of property
or services in respect of which such Person is liable, contingently or
otherwise, as obligor or otherwise (other than trade payables and accrued
expenses incurred in the Ordinary Course of Business) and any commitment by
which such Person assures a creditor against loss, including contingent
reimbursement obligations with respect to letters of credit; (b) indebtedness
guaranteed in any manner by such Person, including a guarantee in the form of an
agreement to repurchase or reimburse; (c) obligations under capitalized leases
in respect of which such Person is liable, contingently or otherwise, as
obligor, guarantor or otherwise, or in respect of which obligations such Person
assures a creditor against loss; (d) indebtedness due to the Stockholder; and
(e) obligations under deferred compensation programs or for dividends owed.

          "Insider" means, any officer, director, stockholder, partner or
Affiliate, as applicable, of the Sellers or any individual related by marriage
or adoption to any such individual or any entity in which any such Person owns a
5% or greater direct or indirect beneficial interest.

          "Insurance Company" means any underwriter of private passenger
automobile insurance for whom the Sellers act as brokers prior to the Closing
for their insurance products and shall include, without limitation, Founders
Insurance Company, Delphi Casualty Company, Interstate Bankers Casualty Company,
American Country Insurance Company, Apollo Casualty Company, Ark Insurance
Agency Inc., American Service Insurance Company, Auto Help Line of America,
Inc., Safeway Insurance Company, United Automobile Insurance Company, American
Access Casualty Company, Unique Insurance Company, American Service Insurance
Company, Gallant Insurance Company and Universal Casualty Co.

                                      -2-

<PAGE>

          "knowledge", "best knowledge" or words of similar import, when
referring to Sellers and/or the Stockholder, means the actual knowledge (without
independent investigation or imputed knowledge) of the Stockholder.

          "Licenses" means all permits, licenses, franchises, certificates,
approvals and other authorizations of foreign, federal, state and local
governments or any department, agency or political subdivision thereof, or other
similar rights.

          "Liens" means any mortgage, pledge, security interest, encumbrance,
prior claim, adverse claim, lien or charge of any kind (including, without
limitation, any conditional sale or other title retention agreement or lease in
the nature thereof), any sale of receivables with recourse against a Seller or
any Affiliate, any filing or agreement to file a financing statement as a debtor
under the Uniform Commercial Code or any similar statute other than to reflect
ownership by a third party of property leased to a Seller under a lease which is
not in the nature of a conditional sale or title retention agreement, or any
subordination arrangement in favor of another Person.

          "Loss" means, with respect to any Person, any diminution in value,
damage, liability, demand, claim, action, cause of action, cost, damage,
deficiency, Tax, penalty, fine or other loss or expense, whether or not arising
out of a third party claim, including all interest, penalties, reasonable
attorneys' fees and expenses and all amounts paid or incurred in connection with
any action, demand, proceeding, investigation or claim by any third party
(including any governmental entity or any department, agency or political
subdivision thereof) against or affecting such Person or which, if determined
adversely to such Person, would give rise to, evidence the existence of, or
relate to, any other Loss and the investigation, defense or settlement of any of
the foregoing.

          "Material Adverse Effect" on any Person means any event, circumstance,
change, occurrence, fact or effect (other than the entry by a Person into this
Agreement or the consummation of the transactions contemplated hereby or
otherwise in the Transaction Documents) that, individually or in the aggregate
with all other events, circumstances, changes, occurrences, facts and/or
effects, (i) is, or is reasonably likely to be, materially adverse to the
financial condition or operations of such Person or (ii) will, or is reasonably
likely to, prevent or materially delay such Person from performing its
obligations under this Agreement or the other Transaction Documents to which it
is a party.

          "Net Premiums Written" means, with respect to any period, the sum of
all insurance premiums, towing and labor fees, bond card fees and motor club
membership fees and agency and all other fees associated with the provision of
such services (except for in each case, billing fees) written (net of
cancellations) by the Purchaser during such period that are (w) renewals of
existing insurance policies written by Sellers that are included in the Excluded
Assets, (x) for customers who contact the Purchaser by visiting any location
listed on the Leases Schedule, (y) for customers who contact the Purchaser by
telephone to any phone number previously advertised or listed for the Seller (or
advertised by Purchaser in replacement of such numbers), or (z) renewals of the
policies described in clauses (x) and (y) immediately above. Notwithstanding the
foregoing, if Purchaser voluntarily terminates the operation of any location
listed on the Leases Schedule (for the avoidance of doubt, termination by the
landlord of such

                                      -3-

<PAGE>

location shall not be deemed to be Purchaser's voluntary termination of
operations with respect to such location) during any time commencing on the
Closing Date and ending on the last day of the Performance Period, Net Premiums
Written for that location shall be no less than all Net Premiums Written for
that location in calendar year 2005.

          "Ordinary Course of Business" means the manner that the Sellers have
conducted their business consistent with past practice (including, without
limitation, with respect to collection of accounts receivable, purchases of
supplies, payment of accounts payable and accrued expenses, levels of capital
expenditures and operation of cash management practices generally) over the past
three (3) years (but taking into account the expansion of the Business over that
time period).

          "Permitted Encumbrances" means (i) statutory liens for Taxes not yet
due, (ii) statutory liens of landlords, liens of carriers, warehousemen,
mechanics and materialmen incurred in the ordinary course of business for sums
not yet due; (iii) liens incurred or deposits made in the Ordinary Course of
Business in connection with workers' compensation, unemployment insurance and
other types of social security or to secure the performance of tenders,
statutory obligations, surety and appeal bonds, bids, leases, government
contracts, performance and return of money bonds and similar obligations; and
(iv) minor irregularities of title which do not in the aggregate materially
detract from the value or use of the Acquired Assets.

          "Person" means an individual, a partnership, a corporation, an
association, a limited liability company, a joint stock company, a trust, a
joint venture, an unincorporated organization, a governmental entity or any
department, agency or political subdivision thereof and any other entity.

          "Proprietary Rights" means all of the following in any jurisdiction
throughout the world (i) patents, patent applications, patent disclosures and
industrial designs, (ii) trademarks, service marks, trade dress, trade or
business names, logos and corporate names (and all translations, adaptations,
derivations and combinations of the foregoing) and Internet domain names,
together with all of the goodwill associated with each of the foregoing, (iii)
copyrights and copyrightable works, including moral rights, (iv) mask works and
topographies, (v) registrations and applications for registration and renewal
for any of the foregoing, (vi) computer software (including, without limitation,
source code, executable code, data, data bases and documentation to the extent
within Seller's possession), and (vii) trade secrets and other confidential
information (including, without limitation, ideas, formulas, recipes,
compositions, inventions (whether patentable or unpatentable and whether or not
reduced to practice), know-how, manufacturing and production processes and
techniques, research and development information, drawings, specifications,
designs, plans, proposals, technical data, financial and marketing plans and
customer and supplier lists and information).

          "Subsidiary" means, with respect to any Person, any corporation a
majority of the total voting power of shares of stock of which is entitled
(without regard to the occurrence of any contingency) to vote in the election of
directors, managers or trustees thereof is at the time owned or controlled,
directly or indirectly, by that Person or one or more of the other Subsidiaries
of that Person or a combination thereof, or any partnership, limited liability

                                      -4-

<PAGE>

company, association or other business entity a majority of the partnership or
other similar ownership interest of which is at the time owned or controlled,
directly or indirectly, by that Person or one or more Subsidiaries of that
Person or a combination thereof. For purposes of this definition, a Person is
deemed to have a majority ownership interest in a partnership, limited liability
company, association or other business entity if such Person is allocated a
majority of the gains or losses of such partnership, limited liability company,
association or other business entity or is or controls the managing director or
general partner of such partnership, limited liability company, association or
other business entity.

          "Tax Returns" means returns, declarations, estimates, reports, claims
for refund, information returns and statements or other documents (including any
related or supporting schedules, statements or information) filed or required to
be filed in connection with the determination, assessment or collection of Taxes
of any party or the administration of any laws, regulations or administrative
requirements relating to any Taxes.

          "Taxes" means any federal, state, local, or foreign income, gross
receipts, license, payroll, employment, excise, severance, stamp, occupation,
premium, windfall profits, environmental, customs duties, capital stock,
franchise, profits, withholding, social security, unemployment, disability, real
property, personal property, sales, use, transfer, registration, value added,
goods and services, ad valorem, alternative or add-on minimum, or other tax,
fee, assessment or charge of any kind whatsoever, including any interest,
penalty, or addition thereto, whether disputed or not.

          "Terminated Leases" means each of the leases set forth on the
Terminated Leases Schedule attached hereto pursuant to which the Sellers lease
real estate from the Stockholder or his Affiliates, as the case may be, and that
will be replaced by the New Leases.

          "Transaction Documents" means this Agreement, and all other
agreements, instruments, certificates and other documents to be signed or
delivered by any Party in connection with the transactions contemplated to be
consummated pursuant to this Agreement including, without limitation, the Escrow
Agreement and the New Leases.

          "Treasury Regulations" means the United States Treasury Regulations
promulgated pursuant to the Code.

          1.2 OTHER DEFINITIONAL PROVISIONS.

          (a) Accounting Terms. Accounting terms which are not otherwise defined
in this Agreement have the meanings given to them under GAAP. To the extent that
the definition of the accounting term that is defined in this Agreement is
inconsistent with the meaning of such term under GAAP, the definition set forth
in this Agreement will control.

          (b) "Hereof," etc. The terms "hereof," "herein" and "hereunder" and
terms of similar import are references to this Agreement as a whole and not to
any particular provision of this Agreement. Section, clause, Schedule and
Exhibit references contained in this Agreement

                                      -5-

<PAGE>

are references to Sections, clauses, Schedules and Exhibits in or to this
Agreement, unless otherwise specified.

          (c) Successor Laws. Any reference to any particular Code section or
any other law or regulation will be interpreted to include any revision of or
successor to that section regardless of how it is numbered or classified.

          1.3 CROSS REFERENCE OF OTHER DEFINITIONS. Each capitalized term listed
below is defined in the corresponding Section of this Agreement:

<TABLE>
<CAPTION>
Term                                      Section
----                                      -------
<S>                                       <C>
Acquired Assets                           2.1(a)
Agreement                                 Preface
Allocation                                7.12
Applicable Limitation Date                6.1
Assumed Liabilities                       2.1(c)
Business                                  Recitals
Business Proprietary Rights               4.14(a)(iii)
Cap                                       6.2(b)(vi)
Closing Payment                           2.1(e)
Closing                                   2.2(a)
Closing Date                              2.2(a)
Closing Transactions                      2.2(b)
COBRA                                     4.19(a)
Escrow Agreement                          2.1(e)
Escrow Account                            2.1(e)
ERISA                                     4.19(a)
Excluded Assets                           2.1(e)
Excluded Liabilities                      2.1(d)
Financial Statements                      4.6
Indemnified Party                         6.2(e)
Indemnified Party Controlled Proceeding   6.2(e)
Indemnifying Party                        6.2(e)
Latest Balance Sheet                      4.6
Leased Real Property                      4.11(b)
Leases                                    4.11(b)
Noncompete Period                         7.9(a)
Notice of Objection                       2.3(d)
Notice of Disagreement                    6.2(g)
Party                                     Preface
Performance Payment                       2.3(a)
Performance Payment Arbitration Firm      2.3(d)
Performance Payment Statement             2.3(d)
Performance Period                        2.3(a)
Plans                                     4.19(a)
</TABLE>

                                      -6-

<PAGE>

<TABLE>
<S>                                       <C>
Purchase Price                            2.1(e)
Purchaser                                 Preface
Purchaser Confidential Information        7.9(c)(i)
Purchaser Parties                         6.2(a)
Real Property                             2.1(a)(iii)
Real Property Permits                     4.11(e)
Sellers                                   Preface
Seller Confidential Information           7.9(c)(ii)
Seller Parties                            6.2(c)
Set-Off Amount                            6.2(g)
Set-Off Notice                            6.2(g)
Set-Off Right                             6.2(g)
Stockholder                               Preface
Transition Services Agreement             3.1(i)
Unassigned Contracts                      7.13
WARN                                      4.18
</TABLE>

                                   ARTICLE II
          PURCHASE AND SALE; ASSUMPTION OF CERTAIN LIABILITIES; CLOSING

          2.1 PURCHASE AND SALE.

          (a) Acquired Assets. Upon the terms and subject to the conditions set
forth in this Agreement, at the Closing the Sellers shall sell, assign, transfer
and deliver to the Purchaser, and the Purchaser shall purchase, all properties,
assets, rights, titles and interests of every kind and nature, whether tangible
or intangible, whether real or personal and wherever located and by whomever
possessed, related to the Business and owned by the Sellers free and clear of
any and all Liens as of the Closing Date (other than Permitted Encumbrances),
except as set forth in Section 2.1(b) below (collectively, the "Acquired
Assets"), including, without limitation:

               (i) all Proprietary Rights owned by either Seller or those
     Proprietary Rights owned by Stockholder and used in the Business, including
     without limitation those Proprietary Rights set forth on the Proprietary
     Rights Schedule, together with all income, royalties, damages and payments
     due or payable as of the Closing or thereafter, including, without
     limitation, damages and payments for past, present or future infringements
     or misappropriations thereof, the right to sue and recover for past
     infringements or misappropriations thereof and any and all corresponding
     rights that, now or hereafter, may be secured throughout the world and all
     copies and tangible embodiments of any such Proprietary Rights (in whatever
     form or medium);

               (ii) all of the Sellers' rights existing under leases (other than
     the Terminated Leases), contracts, distribution arrangements, sales and
     purchase agreements, other agreements and business arrangements associated
     with or used by the Business, including, without limitation, all contracts
     and agreements described on the Contracts

                                      -7-

<PAGE>

     Schedule attached hereto, including renewal rights related thereto
     (collectively "Contracts");

               (iii) all real property leased by the Sellers, and all rights to
     easements, servitudes, licenses, rights of way, permits and all
     appurtenances to such leased property, including, without limitation, all
     appurtenant rights in and to public streets, whether or not vacated
     pursuant to the leases for that real property, held by Seller and
     associated with or used by the Business (collectively, the "Real
     Property");

               (iv) all leasehold improvements and all equipment (including all
     transportation and office equipment), fixtures, trade fixtures and
     furniture owned by the Sellers wherever located, including, without
     limitation, all such items which are located in any building, office or
     other space leased, owned or occupied by the Sellers or used in connection
     with the Real Property (the "Leasehold Improvements"), regardless of
     whether title to the Leasehold Improvements is subject to reversion to the
     landlord or other third party upon the expiration or termination of such
     Lease (but subject to those provisions);

               (v) all office supplies, other miscellaneous supplies, and other
     tangible property of any kind wherever located, including, without
     limitation, all property of any kind located in any building, office or
     other space leased, owned or occupied by the Sellers or where any of the
     Sellers' properties and assets may be situated that are used by or
     associated with the Business;

               (vi) all of the Sellers' claims, deposits, prepayments, prepaid
     expenses, warranties, guarantees, refunds, causes of action, choses in
     action, rights of recovery, rights of set-off and rights of recoupment of
     any kind with respect to the Acquired Assets (other than Cash);

               (vii) the right to receive and retain mail and other
     communications relating to the Business;

               (viii) all lists, records and other information pertaining to
     accounts, personnel and referral sources, suppliers and customers (whether
     past or current); and all books, ledgers, files, correspondence and
     business records of every kind; whether evidenced in writing,
     electronically (including, without limitation, by computer) or otherwise
     (the "Business Records") associated with the Business, provided, however,
     that Sellers may retain copies of and access to the Business Records
     necessary to collect all accounts receivable and service accounts payable
     of Sellers;

               (ix) all advertising, marketing and promotional materials and all
     other printed or written materials;

               (x) all transferable permits, Licenses, franchises, orders,
     registrations, certifications, variances and approvals from all permitting,
     licensing, accrediting and certifying agencies, and the rights to all data
     and records held by such permitting, licensing and certifying agencies
     (collectively "Permits") and all non-transferable Permits pursuant to
     Section 7.13;

                                      -8-

<PAGE>

               (xi) all telephone numbers, including toll-free numbers, used by
     the Sellers;

               (xii) all goodwill as a going concern and all other intangible
     properties;

               (xiii) the names "Insurance Plus," "Yale International Insurance"
     and "Yale Insurance;"

               (xiv) the fixed assets listed on the Fixed Assets Schedule; and

               (xv) except as specified in Section 2.1(b) below, all other
     property owned by the Sellers, or in which any Seller has an interest on
     the Closing Date in any way associated with the Business, including without
     limitation, all personal computers, signage and fixed assets related to the
     Business and any and all subsequent improvements or additions thereon
     through the Closing Date.

          (b) Excluded Assets. Notwithstanding Section 2.1(a) above, the
following assets are expressly excluded from the purchase and sale contemplated
hereby and, as such, are not Acquired Assets (collectively, the "Excluded
Assets"):

               (i) all Cash;

               (ii) all accounts and notes receivables (whether current or
     noncurrent) (including, without limitation, all trade accounts receivable,
     notes receivable from customers, vendor credits and accounts receivable
     from employees and all other obligations from customers with respect to
     sales of goods or services, whether or not evidenced by a note);

               (iii) all tangible assets listed on the Retained Assets Schedule;

               (iv) all monies and securities to be received by the Sellers from
     the Purchaser;

               (v) all rights of the Sellers under this Agreement;

               (vi) all qualifications to do business as foreign corporations;

               (vii) all arrangements with registered agents relating to foreign
     qualifications;

               (viii) all prepaid but unearned commissions;

               (ix) all taxpayer and other identification numbers;

               (x) all seals, minute books, stock transfer books, blank stock
     certificates, tax returns and supporting documentation, tax refunds, bank
     account records, accounts receivable records and all original accounting
     records and other documents

                                      -9-

<PAGE>

     relating to the organization, operation, maintenance, and existence of the
     Sellers as corporations;

               (xi) All contracts with the Insurance Companies, all lists and
     records pertaining to Insurance Companies, and all rights associated with
     such contracts, including, without limitation, the right to receive
     commissions with respect to the right to commissions with respect to
     endorsements to insurance policies written pursuant to such contracts
     following the Closing; and

               (xii) the computer software listed on the Excluded Computer
     Software Schedule;

               (xiii) all Business Records not associated with the Business,
     including, without limitation, the Business Records of Highland Financial
     Services, Inc., Interamerican Insurance Services, Inc., Interamerican
     Insurance Agencies, Inc., and COMAR Industries, Inc., d/b/a COMAR
     Properties;

               (xiv) all assets exclusively used for the Stockholder's
     commercial insurance business (including, without limitation, the provision
     of insurance to taxi cab drivers);

               (xv) all of the Sellers' claims, deposits, prepayments,
     warranties, guarantees, refunds, causes of action, choses in action, rights
     of recovery, rights of set-off and rights of recoupment of any kind with
     respect to the Excluded Assets or the Excluded Liabilities;

               (xvi) Sellers' polices of insurance and all rights in connection
     therewith;

               (xvii) Sellers' bank accounts, checkbooks and cancelled checks;

               (xviii) deposits of Seller with, and refunds from, the Internal
     Revenue Service and state taxing authorities (including the Illinois
     Department of Revenue), including tax deposits, prepayments and estimated
     payments; deposits made pursuant to, and refunds under, Section 444 or 7519
     of the Code; and all rights to and in such deposits and refunds and all
     interest upon such deposits and refunds;

               (xix) The employees of Sellers (the status of which are addressed
     in the Transition Services Agreement), together with all Plans, deposits
     (including, without limitation, those regarding Tax withholding, FICA, FUTA
     and unemployment insurance on behalf of such employees) and other assets
     associated with such employees.

          (c) Assumed Liabilities. Subject to Section 2.1(d) below, as
additional consideration for the Acquired Assets, at the Closing the Purchaser
will assume only the following specific liabilities and obligations of the
Sellers (the "Assumed Liabilities"): all post-Closing performance of the Sellers
pursuant to Contracts (other than Contracts that are not related to the Business
or are Excluded Assets or relate to Excluded Assets) and transferable Permits
and all other executory contracts, agreements, leases, permits and licenses of
the Sellers with respect to which Purchaser receives the benefits thereof
pursuant to Section 7.13. The

                                      -10-

<PAGE>

Purchaser will not assume any other liabilities or obligations of the Sellers,
including, for the avoidance of doubt, any liability or obligation relating to
or arising out of such Contracts and Permits as a result of (A) any transaction,
status, event, condition, occurrence or situation existing, occurring or arising
on or prior to the Closing Date, (B) any transaction, status, event, condition,
occurrence or situation existing, occurring or arising through any action or
failure to act by Sellers, their officers, directors, employees or agents or the
Stockholder on or prior to the Closing Date, (C) any breach of such Contracts
and Permits occurring on or prior to the Closing Date, (D) any violation of law,
breach of warranty, tort or infringement occurring on or prior to the Closing
Date, or (E) any related charge, complaint, action, suit, proceeding, hearing,
investigation, claim or demand.

          (d) Excluded Liabilities. Except as set forth in Section 2.1(c) above,
the Purchaser shall not assume or become liable for, and shall not be deemed to
have assumed or have become liable for, any of the Sellers' liabilities and
obligations not expressly assumed by the Purchaser pursuant to Section 2.1(c)
above, whether accrued, absolute or contingent, whether known or unknown,
whether disclosed or undisclosed, whether due or to become due and whether
related to the Acquired Assets or otherwise, and regardless of when asserted,
including, without limitation (the "Excluded Liabilities"):

               (i) any accounts payable or accrued expenses of the Sellers;

               (ii) any Indebtedness of the Sellers;

               (iii) any Taxes of the Sellers attributable to any Taxable
     period;

               (iv) any liability or obligation relating to the Excluded Assets;
     and

               (v) any liabilities or obligations arising from or relating to
     the Acquired Assets or Sellers' operation of the Business prior to the
     Closing Date or incurred by the Sellers in connection with the consummation
     transactions contemplated by this Agreement.

          (e) Purchase Price for Acquired Assets. The purchase price for the
Acquired Assets (the "Purchase Price") consists of the following (i) the payment
of $25,000,000.00 in cash at the Closing to the Sellers (the "Closing Payment"),
(ii) the payment of $65,380.00 in cash at closing to the Sellers representing
the amount of the prepayments and prepaid expenses set forth on the Prepayment
Schedule, (iii) the payment of $183,925.77, representing Purchaser's pro rata
share of the prepaid amounts set forth on the Pro-Rations Schedule, (iv) the
deposit by the Purchaser of $5,000,000 into an escrow account (the "Escrow
Account") governed by an Escrow Agreement substantially in form and substance as
Exhibit A attached hereto (the "Escrow Agreement"), (v) the assumption of the
Assumed Liabilities, and (vi) the payment of the Performance Payment, if any,
described in Section 2.3 of this Agreement. The Escrow Account shall be
available to satisfy any amounts owing to the Purchaser pursuant to Section
6.2(a).

          2.2 CLOSING TRANSACTIONS.

                                      -11-

<PAGE>

          (a) Closing. The closing of the transactions contemplated by this
Agreement (the "Closing") shall take place at the offices of Kirkland & Ellis
LLP, 200 East Randolph Drive, Chicago, Illinois 60601, immediately following the
execution of this Agreement. The date and time of the Closing are herein
referred to as the "Closing Date."

          (b) Closing Transactions. Subject to the conditions set forth in this
Agreement, the Parties shall consummate the following transactions (the "Closing
Transactions") on the Closing Date:

               (i) the Stockholder shall cause the Sellers to, and the Sellers
     shall convey to the Purchaser good and marketable title to all of the
     Acquired Assets, free and clear of all Liens, and deliver to the Purchaser,
     bills of sale, assignments of leases and contracts and all other
     instruments of conveyance which are necessary or desirable to effect
     transfer of the Acquired Assets, in form and substance reasonably
     satisfactory to the Purchaser;

               (ii) the Purchaser shall deliver to the Sellers such certificates
     and instruments of assumption as are required in order for the Purchaser to
     assume and Sellers and/or Stockholder to be released from the Assumed
     Liabilities; and

               (iii) the Sellers and the Purchaser, as applicable, shall deliver
     the Transition Services Agreement and certificates and other documents and
     instruments required to be delivered by or on behalf of such Party under
     Article III.

               (iv) the Purchaser shall pay the Purchase Price by (x) assuming
     the Assumed Liabilities and (y) transferring immediately available funds to
     Sellers (to an account or accounts designated by Sellers) the amounts set
     forth in Sections 2.1(e)(i) and (ii), and transferring immediately
     available funds to the agent under the Escrow Agreement the amount set
     forth in Section 2.1(e)(iii).

          2.3 PERFORMANCE PAYMENTS.

          (a) Following the Closing and as additional consideration for the
Acquired Assets, Sellers shall be entitled to receive from the Purchaser
(subject to the terms and conditions set forth in this Section 2.3) additional
amounts based on the Business' performance during the twelve-month period
commencing February 1, 2006 and ending January 31, 2007 (the "Performance
Period"). The amount (if any) paid with respect to the Performance Period (the
"Performance Payment") shall be determined in accordance with this Section 2.3
and the payment of any Performance Payments shall otherwise be subject to
Section 6.2(g) hereof.

          (b) If Net Premiums Written during the Performance Period is (A) equal
to or less than $30,000,000, the Performance Payment will be equal to $0, (B)
greater than $30,000,000 but less than $36,000,000, the Performance Payment with
respect to such Net Premiums Written will be equal to 66 2/3% of the amount by
which such Net Premiums Written exceeds $30,000,000 or (C) equal to or greater
than $36,000,000, the Performance Payment will

                                      -12-

<PAGE>

be equal to $4,000,000. In no event shall the Performance Payment made pursuant
to this Section 2.3 exceed $4,000,000.

          (c) Within 20 days following the end of each month during the
Performance Period, the Purchaser shall deliver to the Stockholder an unaudited
statement which sets forth the Purchaser's calculation of Net Premiums Written
for such month and for the period from the beginning of the fiscal year to the
end of such month.

          (d) Within 45 days following the last day of the Performance Period,
the Purchaser shall deliver to the Stockholder a statement (the "Performance
Payment Statement") that sets forth Net Premiums Written for the Performance
Period, together with the payment to Sellers of any Performance Payment due
pursuant to the Performance Payment Statement. During the 30-day period
immediately following the Stockholder's receipt of the Performance Payment
Statement, the Stockholder (and its agents) shall be permitted to review the
Purchaser's books and records and the Purchaser's working papers related to the
preparation of the Performance Payment Statement and determination of Net
Premiums Written for the Performance Period. The Performance Payment Statement
shall become final and binding upon the parties 30 days following Sellers'
Representative's receipt thereof, unless the Stockholder disputes the
calculation of Net Premiums Written set forth on the Performance Payment
Statement by delivering a notice of its objection (a "Notice of Objection") to
the Purchaser within 30 days following delivery of the Performance Payment
Statement. Any Notice of Objection delivered pursuant to this Section 2.3(d)
shall specify in reasonable detail the nature and dollar amount of any
disagreement so asserted and shall be delivered only if (and to the extent that)
the Stockholder reasonably and in good faith determines that Net Premiums
Written set forth on the Performance Payment Statement has not been determined
in accordance with the guidelines and procedures set forth in this Agreement and
the definition of Net Premiums Written. During the 30 days following delivery of
a Notice of Objection, the parties shall seek in good faith to resolve in
writing any differences which they may have with respect to the matters
specified in the Notice of Objection. At the end of the 30-day period referred
to above, the parties shall submit to the Oak Brook, Illinois office of Crowe
Chizek and Company, LLC (the "Performance Payment Arbitration Firm") for review
and resolution of all matters (but only such matters) which were included in the
Notice of Objection, and the Performance Payment Arbitration Firm shall make a
final determination of Net Premiums Written in accordance with the guidelines
and procedures set forth in this Agreement. The parties will cooperate with the
Performance Payment Arbitration Firm during the term of its engagement. In
resolving any matters in dispute, the Performance Payment Arbitration Firm may
not assign a value to any item in dispute greater than the greatest value for
such item assigned by the Purchaser, on the one hand, or the Stockholder, on the
other hand, or less than the smallest value for such item assigned by the
Purchaser, on the one hand, or the Stockholder, on the other hand. The
Performance Payment Arbitration Firm's determination will be based solely on
presentations by the Purchaser and the Stockholder or their respective
representatives which are in accordance with the guidelines and procedures set
forth in this Agreement (i.e., not on the basis of an independent review). The
determination of Net Premiums Written shall become final and binding on the
parties on the date the Performance Payment Arbitration Firm delivers its final
resolution in writing to the parties (which final resolution shall be delivered
not more than 45 days following submission of such disputed matters), or
Purchaser and Stockholder otherwise jointly agree. Within two business days of
such final determination of the Performance Payment, Purchaser

                                      -13-

<PAGE>

shall pay Sellers any amounts of the Performance Payment not previously paid.
The costs and expenses of the Performance Payment Arbitration Firm shall (unless
otherwise provided herein) be allocated between the Purchaser, on the one hand,
and the Stockholder, on the other hand, based upon the percentage which the
portion of the contested amount not awarded to the Stockholder bears to the
Performance Payment, as determined by the Performance Payment Arbitration Firm.

          (e) From the Closing Date until the termination of the Performance
Period, the Purchaser (or its Affiliates) shall not, without the prior written
consent of the Stockholder, (i) open any new locations within any of the
following Illinois counties: Cook County, Dupage County, Kane County, Lake
County, or Will County or (ii) breach any of its obligations with respect to the
rendering of services to the Business's existing customers pursuant to the terms
of the Transition Services Agreement.

                                   ARTICLE III
                              CONDITIONS TO CLOSING

          3.1 CONDITIONS TO THE PURCHASER'S OBLIGATIONS. The obligation of the
Purchaser to consummate the transactions contemplated by this Agreement is
subject to the satisfaction of the following conditions as of the Closing Date:

          (a) The representations and warranties set forth in Article IV hereof
shall be true and correct in all material respects (except that the
representations and warranties which are qualified as to "materiality" or
"Material Adverse Effect" shall be true and correct in all respects) at and as
of the Closing Date as though then made and as though the Closing Date were
substituted for the date of this Agreement throughout such representations and
warranties;

          (b) Each Seller and the Stockholder shall have performed and complied
with all of the covenants and agreements required to be performed by each of
them under this Agreement on or prior to the Closing;

          (c) The purchase of the Acquired Assets by the Purchaser hereunder
shall not be prohibited by any applicable law or governmental regulation, shall
not subject the Purchaser to any penalty, liability or other onerous condition
under or pursuant to any applicable law or governmental regulation, and shall be
permitted by laws and regulations of the jurisdictions to which the Purchaser is
subject;

          (d) No action, suit, or proceeding shall be pending or threatened
before any court or quasi-judicial or administrative agency of any federal,
state, local, or foreign jurisdiction or before any arbitrator wherein an
unfavorable judgment, decree, injunction, order or ruling would prevent the
performance of this Agreement or any of the transactions contemplated hereby,
declare unlawful the transactions contemplated by this Agreement, cause such
transactions to be rescinded or materially and adversely affect the right of the
Purchaser to own, operate or control the Acquired Assets or the Business, and no
judgment, decree, injunction, order or ruling shall have been entered which has
any of the foregoing effects;

                                      -14-

<PAGE>

          (e) Payoff letters with respect to all of the Indebtedness of either
Seller or Highland Financial Services, Inc. secured by any of the Acquired
Assets outstanding as of the Closing, if any, and releases of any and all Liens
held by third parties against the Acquired Assets shall have been obtained, all
on terms reasonably satisfactory to the Purchaser;

          (f) On or prior to the Closing Date, the Stockholder shall have
delivered to the Purchaser all of the following:

               (i) a certificate from the Sellers and the Stockholder in a form
     reasonably satisfactory to the Purchaser, dated the Closing Date, stating
     that the preconditions specified in Sections 3.1(a) through (e), have been
     satisfied;

               (ii) certified copies of the resolutions of the Stockholder and
     the Sellers' boards of directors approving the transactions contemplated by
     this Agreement;

               (iii) certificates of any state of the United States where each
     of the Sellers are qualified to do business providing that such Seller is
     in good standing; and

               (iv) such other documents or instruments as the Purchaser may
     reasonably request to effect the transactions contemplated hereby;

          (g) the Purchaser and the Stockholder and/or his Affiliates, as the
case may be, shall have entered into New Leases, each substantially in the form
of Exhibit B attached hereto (the "New Leases"), covering each parcel of Real
Property owned or managed by Stockholder and/or his Affiliates and used in the
Business to replace each Terminated Lease;

          (h) The Purchaser, the Sellers and the Stockholder shall have entered
into the Escrow Agreement and the Escrow Agreement shall be in full force and
effect, and shall not have been amended or modified, as of the Closing;

          (i) The Purchaser, Parent, the Sellers and the other parties thereto
shall have entered into a Transition Services Agreement in form and substance
attached hereto as Exhibit C (the "Transition Services Agreement") and the
Transition Services Agreement shall be in full force and effect, and shall not
have been amended or modified, as of the Closing; and

          (j) All proceedings to be taken by the Sellers, and the Stockholder in
connection with the consummation of the Closing Transactions and the other
transactions contemplated hereby and all certificates, instruments and other
documents required to be delivered by the Sellers, and the Stockholder to effect
the transactions contemplated hereby reasonably requested (including, without
limitation, the assignment by Stockholder of the items described in Section
2.1(a)(i) of this Agreement) by the Purchaser shall be reasonably satisfactory
in form and substance to the Purchaser.

Any condition specified in this Section 3.1 may be waived by the Purchaser;
provided that no such waiver shall be effective against the Purchaser unless it
is set forth in a writing executed by the Purchaser.

                                      -15-

<PAGE>

          3.2 CONDITIONS TO THE SELLERS' OBLIGATION. The obligation of the
Sellers to consummate the transactions contemplated by this Agreement is subject
to the satisfaction of the following conditions as of the Closing Date:

          (a) The representations and warranties set forth in Article V shall be
true and correct in all material respects at and as of the Closing Date as
though then made and as though the Closing Date were substituted for the date of
this Agreement throughout such representations and warranties;

          (b) The Purchaser shall have performed and complied with all of the
covenants and agreements required to be performed by it under this Agreement on
or prior to the Closing;

          (c) All governmental filings, authorizations and approvals that are
required for the transfer of the Acquired Assets to the Purchaser and the
consummation of the other transactions contemplated hereby shall have been duly
made and obtained on terms reasonably satisfactory to the Sellers;

          (d) No action, suit, or proceeding shall be pending before any court
or quasi-judicial or administrative agency of any federal, state, local, or
foreign jurisdiction or before any arbitrator wherein an unfavorable judgment,
decree, injunction, order or ruling would prevent the performance of this
Agreement or any of the transactions contemplated hereby, declare unlawful the
transactions contemplated by this Agreement, cause such transactions to be
rescinded or materially and adversely affect the right of the Purchaser to own,
operate or control the Acquired Assets, and no judgment, decree, injunction,
order or ruling shall have been entered which has any of the foregoing effects;

          (e) On or prior to the Closing Date, the Purchaser shall have
delivered to the Sellers all of the following:

               (i) a certificate from the Purchaser in a form reasonably
     satisfactory to the Seller, dated the Closing Date, stating that the
     preconditions specified in Sections 3.2(a) through (d), inclusive, have
     been satisfied;

               (ii) certificates of the state of Illinois providing that the
     Purchaser is in good standing and a certificate of the state of Delaware
     that Parent is in good standing;

               (iii) certified copies of the resolutions of the Purchaser's and
     Parent's board of directors approving the transactions contemplated by this
     Agreement; and

               (iv) such other documents or instruments as the Sellers may
     reasonably request to effect the transactions contemplated hereby;

          (f) The Purchaser, Parent, the Sellers and the other parties thereto
shall have entered into the Transition Services Agreement and such Transition
Services Agreement shall be in full force and effect, as of the Closing;

                                      -16-

<PAGE>

          (g) The Purchaser and the Stockholder and/or his Affiliates, as the
case may be, shall have entered into the New Leases; and

          (h) All proceedings to be taken by the Purchaser in connection with
the consummation of the Closing Transactions and the other transactions
contemplated hereby and all certificates, opinions, instruments and other
documents required to be delivered by the Purchaser to effect the transactions
contemplated hereby reasonably requested by the Sellers shall be reasonably
satisfactory in form and substance to the Sellers.

Any condition specified in this Section 3.2 may be waived by the Sellers;
provided that no such waiver shall be effective unless it is set forth in a
writing executed by the Sellers.

                                   ARTICLE IV
                         REPRESENTATIONS AND WARRANTIES
                    CONCERNING THE SELLER AND THE STOCKHOLDER

     As a material inducement to the Purchaser to enter into this Agreement, the
Sellers and the Stockholder hereby jointly and severally represent and warrant
that:

          4.1 INCORPORATION, ORGANIZATION AND CORPORATE POWER. Each Seller is a
corporation duly incorporated, organized, validly existing and in good standing
under the laws of Illinois, which is the only jurisdiction in which they are
required to be qualified to do business. Each Seller has full power and
authority and all licenses, permits and authorizations necessary to own and
operate its properties and to carry on its business as now conducted. Correct
and complete copies of each Seller's certificate of incorporation and by-laws
have been furnished to the Purchaser, which documents reflect all amendments
made thereto at any time prior to the date of this Agreement. Correct and
complete copies of the minute books containing the records of meetings of the
stockholder and board of directors, the stock certificate books and the stock
record books of each Seller have been furnished to the Purchaser. No Seller is
in default under or in violation of any provision of its certificate of
incorporation or by-laws.

          4.2 AUTHORIZATION OF TRANSACTIONS. The Stockholder and each of the
Sellers has full power and authority to execute and deliver this Agreement and
the other Transaction Documents to which they are a party and to consummate the
transactions contemplated hereby and thereby and to perform their obligations
hereunder and thereunder. The Stockholder and the boards of directors of each
Seller have duly approved the Transaction Documents to which the Stockholder and
the Sellers are a party and have duly authorized the execution and delivery of
this Agreement and such other Transaction Documents to which they are a party
and the consummation of the transactions contemplated hereby and thereby. No
other corporate proceedings on the part of the Stockholder or the Sellers are
necessary to approve and authorize the execution, delivery and performance of
this Agreement and the other Transaction Documents to which the Stockholder and
the Sellers are a party and the consummation of the transactions contemplated
thereby. All Transaction Documents to which the Stockholder and the Sellers are
a party have been duly executed and delivered by the Stockholder and each Seller
and constitute the valid and binding agreements of the Stockholder and the
Sellers, enforceable against the Stockholder and the Sellers in

                                      -17-

<PAGE>

accordance with their terms, except to the extent that the enforcement thereof
may be limited by bankruptcy, insolvency, reorganization, rehabilitation,
moratorium and similar laws now or hereafter in effect relating to creditors'
rights generally or general equitable principles.

          4.3 CAPITALIZATION. Stockholder holds all authorized, issued and
outstanding capital stock of each Seller.

          4.4 SUBSIDIARIES; INVESTMENTS. Neither Seller: (i) has any
Subsidiaries; nor (ii) owns or holds the right to acquire any shares of stock or
any other security or interest in any other Person.

          4.5 ABSENCE OF CONFLICTS. Except as set forth on the Conflicts
Schedule attached hereto, the execution, delivery and performance of this
Agreement and the other Transaction Documents and the consummation of the
transactions contemplated hereby and thereby by each Seller and the Stockholder
do not and shall not (a) conflict with or result in any breach of any of the
terms, conditions or provisions of, (b) constitute a default under, (c) result
in a violation of, (d) give any third party the right to modify, cancel,
terminate or accelerate any obligation under, (e) result in the creation of any
Lien upon the Acquired Assets or (f) require any authorization, permit, consent,
approval, exemption or other action by or any notice or declaration to, or
filing with, any court or administrative or other governmental body or agency or
other third party, under the provisions of the certificate of incorporation or
by-laws of any Seller or any indenture, mortgage, lease, sublease, license, loan
agreement, franchise, permit, obligation or other agreement or instrument to
which any Seller, or the Stockholder is bound or affected, or any law, statute,
rule or regulation to which any Seller or the Stockholder is subject or any
judgment, order or decree to which any Seller, or the Stockholder is subject,
bound or affected or any of the Acquired Assets are subject, bound or effected.

          4.6 FINANCIAL STATEMENTS AND RELATED MATTERS. Attached hereto as the
Financial Statements Schedule are copies of (i) the unaudited balance sheet of
each Seller as of June 30, 2005 (the "Latest Balance Sheet") and the related
income statement for the six-month period then ended and (ii) the unaudited
balance sheets and statements of income of each Seller for the fiscal year ended
December 31, 2004. Each of the foregoing financial statements (including in all
cases the notes thereto, if any) (the "Financial Statements") is consistent with
each of the Seller's books and records, and presents fairly in all material
respects each Seller's revenues (excluding Premium Finance Income), Salaries,
Commissions and Rent expenses for such periods.

          4.7 ABSENCE OF UNDISCLOSED LIABILITIES. To the knowledge of the
Sellers and the Stockholder, the Sellers do not have any debts, obligations or
liabilities (whether accrued, absolute, contingent, direct, indirect, perfected,
inchoate, unliquidated or otherwise, whether or not known, whether due or to
become due and regardless of when asserted) arising out of transactions entered
into at or prior to the

                                      -18-

<PAGE>

Closing, or any transaction or series of transactions, action or inaction at or
prior to the Closing or any state of facts existing at or prior to the Closing
regardless of when any such liability or obligation is asserted, except (i)
obligations under the Contracts and Permits (but none of which relates to any
breach of contract, breach of warranty, tort, infringement, or violation of law
or arose out of any charge, complaint, action, suit, proceeding, hearing,
investigation, claim or demand), (ii) liabilities which have arisen after the
date of the Latest Balance Sheet in the Ordinary Course of Business or otherwise
in accordance with the terms and conditions of this Agreement, and (iii)
liabilities which have arisen after the date of the Latest Balance Sheet in the
Ordinary Course of Business or otherwise in accordance with the terms and
conditions of this Agreement (none of which is a liability for breach of
contract, breach of warranty, tort or infringement or a claim or lawsuit or an
environmental liability) and (iv) as set forth on the Latest Balance Sheet.

          4.8 NO MATERIAL ADVERSE EFFECT. Except as set forth on the attached
Developments Schedule, since the date of the Latest Balance Sheet, there has
been no Material Adverse Effect on any Seller.

          4.9 ABSENCE OF CERTAIN DEVELOPMENTS. Except as set forth on the
Developments Schedule attached hereto or except as expressly contemplated by
this Agreement and the Transaction Documents, since July 1, 2005 none of the
Sellers, with respect to the Business, has:

          (a) suffered any extraordinary loss, theft, damage, destruction or
casualty loss or waived any rights of material value, in excess of $100,000, to
its assets, whether or not covered by insurance or suffered any substantial
destruction of its books and records;

          (b) discharged or satisfied any Lien or paid any material obligation
or liability, or incurred or become subject to any liabilities, except
liabilities incurred in the Ordinary Course of Business;

          (c) mortgaged, pledged, charged or subjected any portion of its
properties or assets to any Lien;

          (d) sold, leased, assigned or transferred (including, without
limitation, transfers to the Stockholder or any Insider) a portion of its
tangible assets, except for sales of insurance policies in the Ordinary Course
of Business, or canceled without fair consideration any material debts or claims
owing to or held by it;

          (e) sold, assigned, licensed, transferred, abandoned or permitted to
lapse any Licenses or permits (including, without limitation, transfers to the
Stockholder or any Insider), which, individually or in the aggregate, are
material to the Business or any portion thereof or any Proprietary Rights or
other intangible assets owned by, issued to or licensed to it;

          (f) disclosed any confidential information (other than pursuant to
agreements requiring the disclosure to maintain the confidentiality of and
preserving all of its rights in such confidential information) or received any
confidential information of any third party in violation

                                      -19-

<PAGE>

of any obligation of confidentiality or granted any license or sublicense of any
rights under or with respect to any Proprietary Rights;

          (g) entered into, amended or terminated any material lease, contract,
agreement or commitment, or taken any other action or entered into any other
transaction other than in the Ordinary Course of Business;

          (h) entered into any other material transaction, or materially changed
any business practice;

          (i) made or granted, outside the Ordinary Course of Business, any
bonus or any wage, salary or compensation increase to any director, officer,
employee or sales representative, group of employees or consultant or made or
granted any increase in any employee benefit plan, program, policy or
arrangement, or amended or terminated any existing employee benefit plan or
arrangement or adopted any new employee benefit plan or arrangement or amended
or renegotiated any existing collective bargaining agreement or entered into any
new collective bargaining agreement or multiemployer plan;

          (j) entered into any severance, termination, notice or change of
control agreement with any of its directors, officers and employees;

          (k) made any other change in employment terms for any of its
directors, officers, and employees outside the Ordinary Course of Business;

          (l) made any capital investment in, any loan to, or any acquisition of
the securities or assets of any other Person;

          (m) other than in the Ordinary Course of Business, made any capital
expenditures or commitments for capital expenditures with an aggregate
outstanding amount of unpaid obligations and commitments in excess of $50,000;

          (n) made any loans or advances to, or guarantees for the benefit of,
any Person;

          (o) accelerated, terminated, modified or cancelled any contract,
lease, sublease, sublicense or any other agreement set forth on the attached
Contracts Schedule or Leases Schedule;

          (p) accelerated or increased the rate of sales of insurance policies
to its customers outside of the Ordinary Course of Business; or

          (q) committed to do any of the foregoing.

          4.10 ASSETS. Except as set forth on the attached Assets Schedule, the
Sellers have good and marketable title to, or a valid leasehold interest in, the
properties and assets used by them, located on their premises or shown on the
Latest Balance Sheet or acquired thereafter, free and

                                      -20-

<PAGE>

clear of all Liens, and except for properties and assets disposed of in the
Ordinary Course of Business since the date of the Latest Balance Sheet. Except
as described on the Assets Schedule, the Sellers' buildings, equipment and other
tangible assets are in good operating condition, normal wear and tear excepted.
The Sellers own or lease all buildings, equipment, and other tangible assets
necessary for the conduct of the Business as presently conducted. Except for the
Excluded Assets and except as contemplated by the Transition Services Agreement,
the Acquired Assets constitute all of the assets and rights necessary for the
conduct of the Business as it is presently conducted. At the Closing, the
Sellers will convey good and marketable title to all of its real and personal
property and assets included within the Acquired Assets, free and clear of all
Liens (other than Permitted Encumbrances).

          4.11 TITLE TO PROPERTIES.

          (a) Owned Properties. The Sellers do not own any real property.

          (b) Leased Properties. The Leases Schedule sets forth a list of all of
the leases and subleases (the "Leases") and each leased and subleased parcel of
real property in which the Sellers have an interest as a lessee or sub-lessee
(the "Leased Real Property"). Each of the Leases is in full force and effect and
the applicable Seller holds valid and existing rights as lessee or sub-lessee
under each of the Leases. The Sellers have delivered to the Purchaser true,
correct, complete and accurate copies of each of the Leases described in the
Leases Schedule. With respect to each Lease listed on the Leases Schedule: (i)
the Lease is valid, binding, enforceable (except to the extent that the
enforcement thereof may be limited by bankruptcy, insolvency, reorganization,
rehabilitation, moratorium and similar laws now or hereafter in effect relating
to creditors' rights generally or general equitable principles) and in full
force and effect; (ii) except with respect to the Terminated Leases (which will
be replaced by the New Leases), the Lease will continue to be legal, valid,
binding, enforceable (except to the extent that the enforcement thereof may be
limited by bankruptcy, insolvency, reorganization, rehabilitation, moratorium
and similar laws now or hereafter in effect relating to creditors' rights
generally or general equitable principles) and in full force and effect on
identical terms following the Closing; (iii) no Seller or, to the knowledge of
any Seller or the Stockholder, any other party to the Lease is in breach or
default, and no event has occurred or no circumstance exists which, with notice
or lapse of time, would constitute such a breach or default or permit
termination, modification or acceleration under the Lease; (iv) no party to the
Lease has repudiated any provision thereof; (v) the Sellers' possession and
quiet enjoyment of the Leased Real Property under such Lease has not been
disturbed, there are no disputes, oral agreements, or forbearance programs in
effect as to any Lease; (vi) the Lease has not been modified in any respect,
except to the extent that such modifications are disclosed by the documents
delivered to the Purchaser; (vii) none of the Sellers has assigned, transferred,
conveyed, mortgaged, hypothecated, charged, deeded in trust or encumbered any
interest in or rights under the Lease; (viii) no security deposit or portion
thereof deposited with respect to such Lease has been applied in respect of a
breach or default under such Lease, which has not been re-deposited in full; and
(ix) the Sellers do not and will not in the future owe any brokerage commissions
or finders fees in respect of such Lease.

                                      -21-

<PAGE>

          (c) Real Property Disclosure. Except as disclosed on the Leases
Schedule, there is no Real Property leased or owned by the Sellers used in the
Business.

          (d) No Proceedings. There are no condemnation or expropriation
proceedings or other similar proceedings pending or, to the knowledge of any
Seller or the Stockholder, threatened, affecting any portion of the Real
Property and there exists no writ, injunction, decree, order, administrative
actions, or judgment outstanding, nor any litigation, pending or threatened,
relating to the ownership, lease, use, value, occupancy or operation by any
person of the Real Property.

          (e) Permits. All certificates of occupancy, permits, licenses,
franchises, approvals and authorizations (collectively, the "Real Property
Permits") of all governmental authorities having jurisdiction over the Real
Property, required or appropriate to have been issued to the Sellers to enable
the Real Property to be lawfully occupied and used for all of the purposes for
which it is currently occupied and used have been lawfully issued and are, as of
the date hereof, in full force and effect. The Sellers have not received or been
informed by a third party of the receipt by it of any notice from any
governmental authority having jurisdiction over the Real Property threatening a
suspension, revocation, modification or cancellation of any Real Property Permit
and, to the knowledge of any Seller or the Stockholder, there is no basis for
the issuance of any such notice or the taking of any such action.

          4.12 TAXES. Except as set forth on the attached Taxes Schedule, with
respect to all Taxes that are Assumed Liabilities:

          (a) each Seller has timely filed all Tax Returns which are required to
be filed, and all such Tax Returns are true, complete and accurate in all
respects and have been prepared in compliance with applicable law;

          (b) all Taxes due and payable by each Seller, whether or not shown on
a Tax Return, have been paid by such Seller and no Taxes are delinquent;

          (c) no deficiency or proposed adjustment for any amount of Tax which
has not been settled or resolved has been proposed, asserted or assessed by a
taxing authority against any Seller, and none of the Sellers or the Stockholder
has knowledge that any such assessment or asserted Tax liability shall be made;

          (d) there is no action, suit, taxing authority proceeding or audit now
in progress, pending or, to the knowledge of any Seller or the Stockholder,
threatened against or with respect to any Seller;

          (e) the Sellers have not (i) waived any statute of limitations, (ii)
agreed to any extension of the period for assessment or collection or (iii)
executed or filed any power of attorney, in each case with respect to any Taxes
which waiver, agreement or power of attorney is currently in force;

                                      -22-

<PAGE>

          (f) no claim has ever been made by a taxing authority in a
jurisdiction where the Sellers do not pay Taxes or file Tax Returns that any
Seller is or may be subject to Taxes assessed by such jurisdiction;

          (g) each Seller has withheld and paid all Taxes required to have been
withheld and paid in connection with amounts paid or owing to any employee,
creditor, independent contractor or other third party;

          (h) the Taxes Schedule contains a list of states, territories and
jurisdictions (whether foreign or domestic) in which the Sellers are required to
file Tax Returns relating to their respective businesses;

          (i) there are no Liens on any of the Acquired Assets (other than
Permitted Encumbrances) that arose in connection with a failure (or alleged
failure) to pay any Tax;

          4.13 CONTRACTS AND COMMITMENTS.

          (a) The Contracts Schedule contains a complete and correct list of all
contracts, agreements, commitments, arrangements, leases, licenses and
understandings to which any Seller is a party or by which any Seller is bound
that relate to the Business.

          (b) Except as disclosed on the Contracts Schedule,

               (i) to Seller's knowledge, no contract, agreement, commitment,
     arrangement, lease, license or understanding that is required to be
     disclosed on the Contracts Schedule has been breached or canceled by the
     other party and there is no anticipated breach by any other party to any
     contract, agreement, commitment, arrangement, lease, license or
     understanding set forth on the Contracts Schedule,

               (ii) no Insurance Company has indicated in writing or, to the
     knowledge of Sellers or Stockholder, orally to any Seller or the
     Stockholder that it shall stop or decrease or change the volume of business
     done or commission rates with the Sellers or that it desires to renegotiate
     its contract or current arrangement with the Sellers,

               (iii) each Seller has performed all the obligations required to
     be performed by it in connection with the contracts, agreements,
     commitments, arrangements, leases, licenses or understandings required to
     be disclosed on the Contracts Schedule and is not in default under or in
     breach of any contract, agreement, commitment, arrangement, lease, license
     or understanding required to be disclosed on the Contracts Schedule, and no
     event has occurred which with the passage of time or the giving of notice
     or both would result in a default or breach thereunder,

               (iv) none of the Sellers has any present expectation or intention
     of not fully performing any obligation pursuant to any contract, agreement,
     commitment, arrangement, lease, license or understanding set forth on the
     Contracts Schedule, and

                                      -23-

<PAGE>

               (v) each contract, agreement, commitment, arrangement, lease,
     license or understanding listed on the Contracts Schedule is valid,
     binding, enforceable (except to the extent that the enforcement thereof may
     be limited by bankruptcy, insolvency, reorganization, rehabilitation,
     moratorium and similar laws now or hereafter in effect relating to
     creditors' rights generally or general equitable principles) and in full
     force and effect and will continue as such following the consummation of
     the transactions contemplated hereby, and

               (vi) to the Sellers' knowledge, none of the Sellers is a party to
     any contract, agreement, commitment, arrangement, lease, license or
     understanding which, individually or in the aggregate, could have a
     Material Adverse Affect on any Seller.

          (c) The Sellers have provided the Purchaser with a true and correct
copy of all written contracts, agreements, commitments, arrangements, leases,
licenses or understandings which are required to be disclosed on the Contracts
Schedule, in each case together with all amendments, waivers or other changes
thereto (all of which are disclosed on the Contracts Schedule). To Sellers'
knowledge, there are no oral contracts, agreements, commitments, arrangements,
leases, licenses or understandings, except as listed and described in the
Contracts Schedule.

          4.14 PROPRIETARY RIGHTS.

          (a) The attached Proprietary Rights Schedule contains a complete and
accurate list of all of the following that are owned by the Sellers:

               (i) patented or registered Proprietary Rights and pending patent
     applications and applications for registration of other Proprietary Rights;

               (ii) unregistered trademarks, unregistered service marks, trade
     or business names and corporate names; and

               (iii) computer software

The Proprietary Rights Schedule also contains a complete and accurate list of
all licenses and other rights granted by the Sellers to any third party with
respect to any Proprietary Rights and all licenses and other rights granted by
any third party to the Sellers with respect to any Proprietary Rights, in each
case identifying the subject Proprietary Rights (other than so-called "off the
shelf" computer software). Except as set forth on the Proprietary Rights
Schedule, the Sellers own or have the right to use pursuant to a valid written
license, all Proprietary Rights set forth on the Proprietary Rights Schedule and
all other Proprietary Rights necessary for the operation of the Business as
presently conducted (collectively, the "Business Proprietary Rights").

          (b) Except as set forth on the Proprietary Rights Schedule:

               (i) none of the Sellers has infringed, misappropriated or
     otherwise conflicted with, and the operation of the Business as currently
     conducted does not infringe, misappropriate or otherwise conflict with, any
     Proprietary Rights of any third

                                      -24-

<PAGE>

     party, and none of the Sellers or the Stockholder are aware of any facts
     which indicate a likelihood of any of the foregoing and none of the Sellers
     or the Stockholder have received any notices regarding any of the foregoing
     (including, without limitation, any demands or offers to license any
     Proprietary Rights from any third party);

               (ii) each Seller has taken all reasonably necessary and desirable
     actions to maintain and protect all of the Business Proprietary Rights;

               (iii) to the best of the Sellers' and the Stockholder's
     knowledge, no third party has infringed, misappropriated or otherwise
     conflicted with any of the Business Proprietary Rights and none of the
     Sellers or any of the Stockholder are aware of any facts that indicate a
     likelihood of any of the foregoing;

               (iv) immediately subsequent to the Closing, the Business
     Proprietary Rights will be owned by or available for use by the Purchaser
     on terms and conditions identical to those under which the Sellers owned or
     used the Business Proprietary Rights immediately prior to the Closing; and

               (v) other than as set forth in any License Agreements for the
     Proprietary Rights, none of the Sellers have agreed to indemnify any third
     party for or against any interference, infringement, misappropriation or
     other conflict with respect to any Proprietary Rights.

          4.15 LITIGATION; PROCEEDINGS. Except as set forth on the attached
Litigation Schedule, there are no actions, suits, complaints, charges,
proceedings, hearings orders, investigations or claims pending or, to the
knowledge of any Seller or the Stockholder, threatened against or affecting any
Seller (or to the knowledge of any Seller or the Stockholder, pending or
threatened against or affecting any of the officers, directors or employees of
any of the Sellers with respect to the Business) or to which any Seller or the
Acquired Assets may be bound or affected, at law or in equity, or before or by
any municipal, foreign or governmental department, commission, board, bureau,
agency or instrumentality (including, without limitation, any actions, suits,
complaints, charges, proceedings or investigations with respect to the
transactions contemplated by this Agreement); nor have there been any such
actions, suits, proceedings, orders, investigations or claims pending against or
affecting any of the Sellers during the past three years; and none of the
Sellers are subject to any grievance arbitration proceedings under collective
bargaining agreements or otherwise or, to the knowledge of any Seller or the
Stockholder, any governmental investigations or inquiries. None of the Sellers
are subject to any judgment, order or decree of any court or other governmental
agency (or settlement enforceable therein), and none of the Sellers have
received any opinion or memorandum or legal advice from legal counsel to the
effect that they are exposed, from a legal standpoint, to any liability or
disadvantage which may be material to the Business and none of the Sellers are
engaged in any legal action to recover monies due it or for damages sustained by
them.

          4.16 BROKERAGE.

                                      -25-

<PAGE>

          Except for an agreement with Cochran, Caronia & Co., the fees or
similar compensation for which will be paid by the Stockholder, there are no
claims for brokerage commissions, finders' fees or similar compensation in
connection with the transactions contemplated by this Agreement based on any
arrangement or agreement made by or on behalf of any Seller or the Stockholder.

          4.17 GOVERNMENTAL LICENSES AND PERMITS. The Permits Schedule attached
hereto contains a complete listing and summary description of all Licenses owned
or possessed by the Sellers or used by them in the conduct of their businesses.
Except as indicated on the Permits Schedule, the Sellers own or possess all
right, title and interest in and to all of the Licenses that are necessary to
conduct their businesses as presently conducted, including, without limitation,
all Licenses required under any federal, state or local law relating to (i) the
sale or placement of insurance and (ii) public health and safety, employee
health and safety, pollution or protection of the environment. The Sellers are
in compliance with the terms and conditions of such Licenses and have received
no notices that they are in violation of any of the terms or conditions of such
Licenses. The Sellers have taken all necessary action to maintain such Licenses.
No loss or expiration of any such License is threatened, pending or reasonably
foreseeable other than expiration in accordance with the terms thereof.

          4.18 EMPLOYEES. Except as set forth on the Employees Schedule attached
hereto, to the knowledge of any Seller or the Stockholder, no key employee and
no group of employees or independent contractors of the Sellers has any plans to
terminate his, her or its employment or relationship as an independent
contractor with the Sellers. The Sellers have complied and remain in compliance
with all applicable laws relating to the employment of personnel and labor. None
of the Sellers are a party to or bound by any collective bargaining agreement,
nor have such parties experienced any strikes, grievances, work outages, unfair
labor practices claims; nor is any labor strike, dispute, work stoppage or
slowdown pending or threatened. None of the Sellers have engaged in any unfair
labor practice; nor is any complaint pending or threatened against any Seller.
None of the Sellers or the Stockholder has knowledge of any organizational
effort presently being made or threatened by or on behalf of any labor union
with respect to employees of the Sellers. Except as contemplated by this
Agreement and the Transition Services Agreement, none of the Sellers has
implemented any mass layoff of employees as such term is defined in the Worker
Adjustment Retraining and Notification Act of 1988, as amended ("WARN") or any
similar federal, state or local law, regulation or ordinance and no layoffs that
could implicate such laws or regulations will have been implemented before
Closing without advance notification to the Purchaser. There is no grievance or
arbitration proceeding pending which might have a Material Adverse Effect on the
Sellers or the Business.

          4.19 EMPLOYEE BENEFIT MATTERS.

                                      -26-

<PAGE>

          (a) Except as set forth on the Benefit Plans Schedule attached hereto,
with respect to current or former employees of the Sellers, none of the Sellers
maintain or contribute to or have any actual or potential liability with respect
to any (i) deferred compensation or bonus or retirement plans or arrangements,
(ii) qualified or nonqualified defined contribution or defined benefit plans or
arrangements which are employee pension benefit plans (as defined in Section
3(2) of the Employee Retirement Income Security Act of 1974, as amended
("ERISA")), or (iii) employee welfare benefit plans (as defined in Section 3(1)
of ERISA), stock option or stock purchase plans, or any other material benefit
plans or programs whether in writing or oral and whether or not terminated.
Neither the Sellers nor any person or entity that could be treated as a single
employer with any of the Sellers pursuant to Section 414(b), (c), (m) or (o) of
the Code, (an "ERISA Affiliate") have ever contributed to any multiemployer
pension plan (as defined in Section 3(37) of ERISA), and neither the Sellers nor
any ERISA Affiliate have ever maintained or contributed to any defined benefit
plan (as defined in Section 3(35) of ERISA) or any plan subject to Section 412
of the Code or Section 302 of ERISA. The plans, arrangements, programs and
agreements referred to in the preceding two sentences are referred to
collectively as the "Plans." Neither the Sellers nor any ERISA Affiliate
maintains or contributes to any Plan which provides health, accident or life
insurance benefits to former employees, their spouses or dependents, other than
in accordance with Section 4980B of the Code ("COBRA").

          (b) The Plans (and related trusts and insurance contracts) set forth
on the Benefit Plans Schedule comply in form and in operation with their terms
and the requirements of the applicable laws and regulations, including ERISA and
the Code. All contributions, premiums or payments which are due on or before the
Closing Date under each of the Plans set forth on the Benefit Plan Schedule have
been paid, and all contributions, premiums or payment which are related to the
period before the Closing Date but not yet due have been properly accrued. Each
Plan which is intended to be qualified under Section 401(a) of the Code (and its
related trust intended to qualify under Section 501(a) of the Code) is so
qualified and has received from the Internal Revenue Service a favorable
determination letter, and nothing has occurred since the date of such letter
that could adversely affect the qualified status of such Plan.

          (c) With respect to each of the Plans, the Stockholder has furnished
to the Purchaser true and complete copies of (i) the plan documents, summary
plan descriptions and summaries of material modifications and other material
employee communications, (ii) the Form 5500 Annual Report (including all
schedules and other attachments).

          (d) The Sellers have not incurred and have no reason to expect that
they will incur, any liability to the Pension Benefit Guaranty Corporation
(other than routine premium payments) or otherwise under Title IV of ERISA
(including any withdrawal liability) or under the Code with respect to any
employee pension benefit plan (as defined in Section 3(2) of ERISA) that any
Seller or any ERISA Affiliate maintains or ever has maintained or to which any
of them contributes, ever have contributed, or ever have been required to
contribute.

          (e) Except as disclosed, there are no liabilities with respect to the
Plans or any ERISA Affiliate that could become a liability of the Purchaser in
connection with the transactions contemplated by this Agreement.

          4.20 INSURANCE.

                                      -27-

<PAGE>

          The Insurance Schedule attached hereto lists and briefly describes
each insurance policy maintained by each Seller and with respect to their
properties, assets and business to which such Seller has been a party, named
insured or otherwise a beneficiary of coverage, together with a claims history
for the past five years. All of such insurance policies are in full force and
effect, and the Sellers are not in default with respect to their obligations
under any such insurance policies and the Sellers have not been denied insurance
coverage. Except as set forth on the Insurance Schedule, the Sellers have no
self-insurance or co-insurance programs.

          4.21 AFFILIATE TRANSACTIONS. Except as disclosed on the Affiliated
Transactions Schedule, the Terminated Leases or the Contracts Schedule, all as
attached hereto, no Insider is a party to any agreement, contract, commitment or
transaction with any Seller or which is pertaining to the business of the
Sellers or has any interest in any property, real or personal or mixed, tangible
or intangible, used in or pertaining to the Business.

          4.22 COMPLIANCE WITH LAWS. Each Seller, each of their officers,
directors, agents and employees have complied with and are in compliance with
all applicable laws, regulations and ordinances of foreign, federal, state and
local governments and all agencies thereof which are applicable to the Business,
its business practices (including, but not limited to, the Sellers' having been
duly licensed (to the extent such licensing is required) to sell or place
insurance in the jurisdictions where, and at the time when, they did so) or any
owned or leased properties of the Sellers and to which the Sellers may be
subject, and no claims, notices, charges, complaints, actions, suits,
investigations proceedings and hearings have been received by any Seller or have
been filed, commenced or threatened against any Seller alleging a violation of
or liability or potential liability under any such laws or regulations, and the
Sellers have not received notice of any such violations.

          4.23 ENVIRONMENTAL MATTERS. Each Seller has complied with and are in
compliance with all Environmental and Safety Requirements and has obtained and
complied with and is in compliance with all Licenses required by Environmental
and Safety Requirements for the operation of the Business, the ownership and use
of the Acquired Assets, and the occupation of the Real Property. None of the
Sellers have received any notice, report or information regarding any actual or
alleged violation, of any liability or potential liability arising under,
Environmental and Safety Requirements which relate to the Business, the Acquired
Assets or the Real Property. None of the Sellers has treated, stored, disposed
of, arranged for or permitted the disposal of, transported, handled,
manufactured or released any substance, including without limitation any
petroleum or hazardous substance, or owned or operated any property or facility
(and no such property or facility, including the Real Property is contaminated
by any such substance) so as to give rise to liabilities or obligations pursuant
to any Environmental and Safety Requirements. Without limiting the generality of
the foregoing, there is no asbestos containing material, mold, airborne
contaminants or underground storage tanks at any of the Real Property so as to
give rise to liabilities or obligations under Environmental and Safety
Requirements.

                                      -28-

<PAGE>

          4.24 LIMITATION ON WARRANTIES. Except as expressly set forth in
Article IV and in the case of fraud or intentional misrepresentation, Seller
makes no express or implied warranty of any kind whatsoever, including, without
limitation, any representation as to physical condition or value of any of the
Acquired Assets or the future profitability or future earnings performance of
the Business. ALL IMPLIED WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A
PARTICULAR PURPOSE ARE EXPRESSLY EXCLUDED.

                                    ARTICLE V
             REPRESENTATIONS AND WARRANTIES CONCERNING THE PURCHASER

          As a material inducement to the Sellers to enter into this Agreement,
the Purchaser hereby represents and warrants to the Sellers that:

          5.1 INCORPORATION, ORGANIZATION AND CORPORATE POWER. The Purchaser is
a corporation duly incorporated, organized, validly existing and in good
standing under the laws of the State of Illinois, and Parent is a corporation
duly incorporated, organized, validly existing and in good standing under the
laws of the State of Delaware, with full corporate power and authority to enter
into this Agreement and the other agreements contemplated hereby to which the
Purchaser is a party and perform its obligations hereunder and thereunder.

          5.2 AUTHORIZATION OF TRANSACTION. The execution, delivery and
performance of this Agreement and the other agreements contemplated hereby to
which the Purchaser or Parent is a party have been duly and validly authorized
by all requisite corporate action on the part of the Purchaser and Parent, and
no other corporate proceedings on its part are necessary to authorize the
execution, delivery or performance of this Agreement. This Agreement
constitutes, and each of the other agreements contemplated hereby to which the
Purchaser or Parent is a party shall when executed constitute, a valid and
binding obligation of the Purchaser or Parent, enforceable in accordance with
their terms, except to the extent that the enforcement thereof may be limited by
bankruptcy, insolvency, reorganization, rehabilitation, moratorium and similar
laws now or hereafter in effect relating to creditors' rights generally or
general equitable principles.

          5.3 NO VIOLATION. The Purchaser or Parent is not subject to or
obligated under its certificate of incorporation, its by-laws, any applicable
law, or rule or regulation of any governmental authority, or any agreement or
instrument, or any license, franchise or permit, or subject to any order, writ,
injunction or decree, which would be breached or violated by its execution,
delivery or performance of this Agreement and the other agreements contemplated
hereby to which the Purchaser or Parent is a party.

          5.4 GOVERNMENTAL AUTHORITIES AND CONSENTS.

                                      -29-

<PAGE>

          Except as disclosed on the Governmental Authorities and Consents
Schedule attached hereto, the Purchaser or Parent is not required to submit any
notice, report or other filing with any governmental authority in connection
with the execution or delivery by it of this Agreement and the other agreements
contemplated hereby to which the Purchaser or Parent is a party or the
consummation of the transactions contemplated hereby or thereby. No consent,
approval, license or authorization of any governmental or regulatory authority
or any other party or person is required to be obtained by the Purchaser or
Parent in connection with its execution, delivery and performance of this
Agreement and the other agreements contemplated hereby to which the Purchaser or
Parent is a party or the transactions contemplated hereby or thereby, including,
without limitation, the operation of the Business following the Closing Date.

          5.5 LITIGATION. There are no actions, suits, proceedings or orders
pending or, to the best knowledge of the Purchaser and the shareholders of the
Purchaser, threatened against or affecting the Purchaser or Parent, at law or in
equity, or before or by any federal, state, municipal or other governmental
department, commission, board, bureau, agency or instrumentality, domestic or
foreign, which would adversely affect the Purchaser's or Parent's performance
under this Agreement and the other agreements contemplated hereby to which the
Purchaser or Parent is a party or the consummation of the transactions
contemplated hereby or thereby.

          5.6 BROKERAGE. There are no claims for brokerage commissions, finders'
fees or similar compensation in connection with the transactions contemplated by
this Agreement based on any arrangement or agreement made by or on behalf of the
Purchaser or Parent.

          5.7 SOLVENCY. Assuming (i) the truth and accuracy of the Sellers' and
Stockholder's representations and warranties contained in Article IV and (ii)
none of the Sellers or the Stockholder have breached this Agreement or any other
Transaction Documents, after giving effect to the consummation of the
transactions contemplated hereby and the incurrence of any indebtedness in
connection therewith, Purchaser's assets will exceed its liabilities and
Purchaser will have the financial resources and ability to pay and discharge its
obligations as they become due.

                                   ARTICLE VI
                       INDEMNIFICATION AND RELATED MATTERS

          6.1 SURVIVAL. All representations, warranties, covenants and
agreements set forth in this Agreement or in any writing or certificate
delivered in connection with this Agreement shall survive the Closing Date.
Notwithstanding the foregoing, no Party shall be entitled to recover for any
Loss pursuant to Section 6.2(a)(i) or Section 6.2(c)(i) unless written notice of
a claim thereof is delivered to the other Party prior to the Applicable
Limitation Date. For purposes of this Agreement, the term "Applicable Limitation
Date" shall mean the date which is 450 days following the Closing Date; provided
that the Applicable Limitation Date with respect to the following Losses shall
be as follows: (i) with respect to any Loss arising from or related to a

                                      -30-

<PAGE>

breach of the representations and warranties of the Sellers and the Stockholder
set forth in Sections 4.12 (Taxes) and 4.19 (Employee Benefits Matters), the
Applicable Limitation Date shall be the 90th day after expiration of the statute
of limitations (including any extensions thereto to the extent that such statute
of limitations may be tolled) applicable to the Tax statute, regulation or other
authority which gave rise to such Loss, and (ii) with respect to any Loss
arising from or related to a breach of the representations and warranties of the
Seller and the Stockholder set forth in Section 4.1 (Incorporation, Organization
and Corporate Power), Section 4.2 (Authorization of Transactions), Section 4.3
(Capitalization), or Section 4.16 (Brokerage) and with respect to any Loss
arising from or related to a breach of the representations and warranties of the
Purchaser set forth in Section 5.1 (Incorporation, Organization an Corporate
Power), 5.2 (Authorization of Transactions), 5.3 (No Violation) or 5.6
(Brokerage), there shall be no Applicable Limitation Date (i.e., such
representations and warranties shall survive indefinitely).

          6.2 INDEMNIFICATION.

          (a) The Sellers and the Stockholder shall jointly and severally
indemnify the Purchaser and each of its officers, directors, stockholders,
employees, agents, representatives, affiliates, successors and assigns
(collectively, the "Purchaser Parties") and hold each of them harmless from and
against and pay on behalf of or reimburse such the Purchaser Parties in respect
of the entirety of any Losses the Purchaser Parties may suffer, sustain or
become subject to, through and after the date of the claim for indemnification
resulting from, arising out of, relating to, in the nature of, or caused by:

               (i) the breach of any representation or warranty made by any
     Seller or the Stockholder contained in this Agreement (other than in
     Section 4.12 hereof) or any certificate delivered by any Seller or the
     Stockholder to the Purchaser with respect thereto in connection with the
     Closing (in each case, determined without regard to any qualifications
     therein referencing the terms "materiality" or "Material Adverse Effect" or
     other terms of similar import or effect);

               (ii) the breach of any covenant or agreement made by any Seller
     or the Stockholder contained in this Agreement or any certificate delivered
     by any Seller or the Stockholder to the Purchaser with respect thereto in
     connection with the Closing;

               (iii) the breach of any representation or warranty made by any
     Seller or the Stockholder in Section 4.12 hereof; or

               (iv) any Excluded Liabilities.

The Purchaser's remedy for any indemnification of Losses hereunder may be
satisfied by proceeding against one or more of the Sellers or the Stockholder
individually for all or any portion of any such Loss and/or in the Purchaser's
sole discretion by utilizing the remedies set forth in Section 7.5.

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<PAGE>

          (b) The indemnification provided for in Section 6.2(a)(i) above is
subject to the following limitations:

               (i) The Sellers and the Stockholder will be liable to the
     Purchaser Parties with respect to claims referred to in Section 6.2(a)(i)
     only if the Purchaser gives the Sellers written notice thereof prior to the
     Applicable Limitation Date;

               (ii) The Sellers and the Stockholder shall not be liable to
     indemnify any Purchaser Parties pursuant to Section 6.2(a)(i) unless and
     until the Purchaser Parties have collectively suffered Loss by such
     breaches or pursuant to such Section in excess of a $100,000 aggregate
     deductible (the "Deductible") (at which point, subject to the other
     limitations herein, the Sellers and the Stockholder will be liable to the
     Purchaser Parties for all Losses in excess of the Deductible);

               (iii) without limiting the generality of anything contained in
     Article VI hereof, with respect to any claim by or liability to any
     employee employed by any Seller arising as the result of the termination of
     such employee's employment with the Purchaser or any action by the
     Purchaser subsequent to the Closing Date (and the Purchaser agrees to
     indemnify the applicable Seller for all such matters);

               (iv) Losses due to Purchaser Parties pursuant to Section 6.2
     shall be net of any proceeds received by any Purchaser Parties from any
     separate indemnification, contribution or right over from or against, or
     insurance proceeds recovered from, any Person other than Purchaser (and
     Purchaser will seek recovery under all insurance policies covering any
     Losses to the same extent as they would if such Losses were not subject to
     indemnification under this Agreement);

               (v) The Sellers and the Stockholder shall not be liable to
     indemnify any Purchaser Parties with respect to Section 6.2(a)(i) unless
     Losses suffered by the Purchaser Parties with respect to the same event or
     claim or series of related events or claims exceed $10,000.00 (and, for
     purposes of clarification, the Losses that are less than $10,000 shall not
     count against the Deductible unless and until such Losses exceed $10,000,
     at which point such Losses shall count against the deductible from dollar
     one); or

               (vi) The aggregate amount of all payments made by the Sellers and
     the Stockholder in satisfaction of claims for indemnification pursuant to
     Section 6.2(a)(i) shall not exceed $10,000,000 (the "Cap").

Notwithstanding any implication to the contrary contained in this Agreement, so
long as the Purchaser delivers written notice of a claim to the Sellers no later
than the Applicable Limitation Date, the Sellers and the Stockholder shall be
required to indemnify the Purchaser Parties for all Losses (up to the Cap) which
the Purchaser Parties may incur in respect of the matters which are the subject
of such claim, regardless of when incurred. In the event that the Sellers or the
Stockholder are obligated to indemnify a the Purchaser Party pursuant to Section
6.2(a)(i), then, solely for the purposes of calculating the amount of Losses,
all "Material Adverse Effect"

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<PAGE>

qualifications and other "materiality" qualifications contained in any such
representation and warranty shall be disregarded.

          (c) The Purchaser shall indemnify the Sellers and the Stockholder and
hold the Stockholder, each Seller and their officers, directors, stockholders,
employees, agents, representatives, affiliates, successors and assigns
(collectively, the "Seller Parties") and hold each of them harmless from and
against and pay on behalf of or reimburse such Seller Parties in respect of the
entirety of any Losses the Seller Parties may suffer, sustain or become subject
to, through and after the date of the claim for indemnification resulting from,
arising out of, relating to, in the nature of, or caused by:

               (i) the breach of any representation or warranty made by the
     Purchaser contained in this Agreement or any certificate delivered by the
     Purchaser to the Sellers with respect thereto in connection with the
     Closing (in each case, determined without regard to any qualifications
     therein referencing the terms "materiality" or "Material Adverse Effect" or
     other terms of similar import or effect);

               (ii) the breach of any covenant or agreement made by the
     Purchaser contained in this Agreement or any certificate delivered by the
     Purchaser to the Sellers with respect thereto in connection with the
     Closing;

               (iii) any Assumed Liabilities (or the failure to satisfy such
     Assumed Liabilities when due); or

               (iv) acts or omissions of Purchaser after the Closing Date,
     including, without limitation, Purchaser's operation of the Business after
     the Closing Date or any claim of any type whatsoever related to or brought
     by employees engaged in the operation of the Business (whether employed by
     Purchaser or employed by Affiliates of Sellers pursuant to this Agreement
     or the Transition Services Agreement).

          (d) The indemnification provided for in Section 6.2(c)(i) above is
subject to the following limitations:

               (i) The Purchaser will be liable to the Seller Parties with
     respect to claims referred to in Section 6.2(c)(i) only if the Sellers give
     the Purchaser written notice thereof prior to the Applicable Limitation
     Date;

               (ii) The Purchaser shall not be liable to indemnify any Seller
     Parties pursuant to Section 6.2(c)(i) unless and until the Seller Parties
     have collectively suffered Loss by such breaches or pursuant to such
     Section in excess of the Deductible (at which point, subject to the other
     limitations herein, the Purchaser will be liable to the Seller Parties for
     all Losses in excess of the Deductible); and

               (iii) The aggregate amount of all payments made by the Purchaser
     in satisfaction of claims for indemnification pursuant to Section 6.2(c)(i)
     shall not exceed the Cap.

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<PAGE>

Notwithstanding any implication to the contrary contained in this Agreement, so
long as the Sellers deliver written notice of a claim to the Purchaser no later
than the Applicable Limitation Date, the Purchaser shall be required to
indemnify the Seller Parties for all Losses (up to the Cap) which the Seller
Parties may incur in respect of the matters which are the subject of such claim,
regardless of when incurred. In the event that the Purchaser is obligated to
indemnify a Seller Party pursuant to Section 6.2(c)(i), then, solely for the
purposes of calculating the amount of Losses, all "Material Adverse Effect"
qualifications and other "materiality" qualifications contained in any such
representation and warranty shall be disregarded.

          (e) If a party hereto seeks indemnification under this Article VI,
such party (the "Indemnified Party") shall promptly give written notice to the
other party (the "Indemnifying Party") after receiving written notice of any
action, lawsuit, proceeding, investigation, or other claim against it (if by a
third party) or discovering the liability, obligation, or facts giving rise to
such claim for indemnification, describing the claim, the amount thereof (if
known and quantifiable), and the basis thereof; provided that the failure to so
notify the Indemnifying Party shall not relieve the Indemnifying Party of its
obligations hereunder except to the extent such failure shall have prejudiced
the Indemnifying Party's ability to defend such claim. In that regard, if any
action, lawsuit, proceeding, investigation, or other claim shall be brought or
asserted by any third party which, if adversely determined, would entitle the
Indemnified Party to indemnity pursuant to this Article VI, the Indemnified
Party shall promptly notify the Indemnifying Party of the same in writing,
specifying in detail the basis of such claim and the facts pertaining thereto
and the Indemnifying Party shall be entitled to participate in the defense of
such action, lawsuit, proceeding, investigation, or other claim giving rise to
the Indemnified Party's claim for indemnification at the Indemnifying Party's
expense and option (subject to the limitations set forth below) and shall be
entitled to control and appoint lead counsel of such defense with reputable
counsel reasonably acceptable to the Indemnified Party; provided that, as a
condition precedent to the Indemnifying Party's right to assume control of such
defense, it must first agree in writing to be fully responsible for all Losses
relating to such claims and to provide indemnification to the Indemnified Party
for Losses relating to such claim in the manner provided for in this Agreement;
and provided further that the Indemnifying Party may consent to waive the right
to assume control of such defense and shall pay the fees and expenses of counsel
retained by the Indemnified Party, if the claim which the Indemnifying Party
seeks to assume control (each, an "Indemnified Party Controlled Proceeding") (i)
involves a claim to which the Indemnified Party reasonably believes could be
detrimental to or injure the Indemnified Party's reputation, customer relations
or future business prospects, (ii) seeks non-monetary relief (except where
non-monetary relief is merely incidental to a primary claim or claims for
monetary damages), (iii) involves criminal allegations, (iv) is one in which the
Indemnifying Party is also a party and joint representation would be
inappropriate or there may be legal defenses available to the Indemnified Party
which are different from or additional to those available to the Indemnifying
Party, or (v) involves a claim which, upon petition by the Indemnified Party,
the appropriate court rules that the Indemnifying Party failed or is failing to
vigorously prosecute or defend.

     If the Indemnifying Party is permitted to assume and control the defense
and elects to do so, the Indemnified Party shall have the right to employ
counsel separate from counsel employed by the Indemnifying Party in any such
action and to participate in the defense thereof, but the fees and expenses of
such counsel employed by the Indemnified Party shall be at the expense of

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<PAGE>

the Indemnified Party (and such expenses shall be excluded from the calculation
of any Losses) unless the employment thereof has been specifically authorized by
the Indemnifying Party in writing.

     If the Indemnifying Party shall control the defense of any such claim, the
Indemnifying Party shall obtain the prior written consent of the Indemnified
Party (which shall not be unreasonably withheld) before entering into any
settlement of a claim or ceasing to defend such claim, if pursuant to or as a
result of such settlement or cessation, injunction, or other equitable relief
will be imposed against the Indemnified Party or if such settlement does not
expressly unconditionally release the Indemnified Party from all liabilities and
obligations with respect to such claim.

          (f) Amounts paid to or on behalf of the Seller, the Stockholder or the
Purchaser as indemnification shall be treated as adjustments to the Purchase
Price for Tax purposes.

          (g) The Purchaser shall be entitled to (but shall not be required to)
set-off any amounts due or payable to any of the Purchaser Parties by any Seller
Party pursuant to this Section 6.2 against any amounts otherwise due and payable
by any of the Purchaser Parties or any of their Affiliates to any Seller Party,
including by setting off against the Performance Payment otherwise due and
payable to any Seller Party pursuant to Section 2.4 hereof or any payment
otherwise due and payable to any Seller Party under the New Leases (the "Set-Off
Right"). In the event the Purchaser exercises the Set-Off Right, the Purchaser
shall deliver a written notice to the Stockholder specifying the Purchaser's
desire to exercise the Set-off Right, and such notice shall include the amount
to be set-off (the "Set-Off Amount") and a reasonable description of the reasons
for its exercise of the Set-Off Right (a "Set-Off Notice"), and deposit the
Set-Off Amount with the escrow agent (or its successor) under the Escrow
Agreement pursuant to a separate escrow agreement substantially similar to the
Escrow Agreement (such escrow the "Set-Off Escrow"). The Purchaser shall be
entitled to draw Set-Off Amount (or any portion of the Set-Off Amount not
disputed in a Notice of Disagreement (as defined below)) from the Set-Off Escrow
60 days following the delivery of a Set-Off Notice, unless the Stockholder
provides written notice of its disagreement (a "Notice of Disagreement") to the
Purchaser prior to such date. Any Notice of Disagreement shall specify in
reasonable detail the nature and dollar amount of any disagreement asserted
therein. If a timely Notice of Disagreement is received by the Purchaser, then
the Set-Off Amount shall be distributed out of the Set-Off Escrow to Purchaser,
on the one hand, and Sellers or their Affiliates (as the case may be), on the
other hand, only pursuant to an agreement between the Purchaser and the
Stockholder or as finally resolved by a court of competent jurisdiction.

          (h) Indemnification Exclusive Remedy. Except in the case of fraud or
intentional misrepresentation, indemnification pursuant to the provisions of
this Section 6.2 shall be the exclusive remedy of the parties for any
misrepresentation or breach of any warranty or covenant contained herein or in
any closing document executed and delivered pursuant to the provisions hereof.
The only legal action which may be asserted by any party with respect to any
matter which is the subject of this Section 6.2 shall be a contract action to
enforce, or to recover damages for the breach of,

                                      -35-

<PAGE>

this Section 6.2. Without limiting the generality of the preceding sentence, no
legal action sounding in tort or strict liability may be maintained by any
party.

          (i) No Punitive Damages. No Party shall be entitled to recover under
Section 6.2 WITH RESPECT TO PUNITIVE DAMAGES (unless such punitive damages are
paid or payable to a third party).

                                   ARTICLE VII
                              ADDITIONAL AGREEMENTS

          7.1 CONTINUING ASSISTANCE. Subsequent to the Closing, the Sellers, the
Stockholder and the Purchaser (at their own cost) shall assist each other
(including making records available) in the preparation of their respective Tax
Returns and the filing and execution of Tax elections, if required, as well as
any audits or litigation that ensue as a result of the filing thereof, to the
extent that such assistance is reasonably requested.

          7.2 TAX MATTERS.

          (a) All transfer, documentary, sales, use, stamp, registration and
other such Taxes and fees (including any penalties and interest thereon)
incurred in connection with this Agreement shall be paid by the Sellers or the
Stockholder when due, and the Sellers and the Stockholder shall, at his, her or
their own expense, file all necessary Tax Returns and other documentation with
respect to all such transfer, documentary, sales, use, stamp, registration and
other Taxes and fees, and if required by applicable law, the Purchaser shall,
and shall cause its affiliates to, join in the execution of any such Tax Returns
and other documentation.

          (b) All real property taxes, personal property taxes, ad valorem
obligations and similar taxes imposed on a periodic basis, in each case levied
with respect to the Acquired Assets, other than conveyance taxes provided for in
Section 7.2(a), for a taxable period which includes (but does not end on) the
Closing Date shall be apportioned between the Sellers and the Purchaser as of
the Closing Date based on the number of days of such taxable period included in
the pre-Closing Tax period (including the Closing Date) and the number of days
of such taxable period included in the post-Closing period. The Sellers shall be
liable for the proportionate amount of such Taxes that is attributable to the
pre-Closing Tax period. Within ninety (90) days after the Closing, the Sellers
and the Purchaser shall present a reimbursement to which each is entitled under
this Section 7.2(b) together with such supporting evidence as is reasonably
necessary to calculate the proration amount. The proration amount shall be paid
by the party owing it to the other within ten (10) days after delivery of such
statement. Thereafter, the Sellers shall notify the Purchaser upon receipt of
any bill for real or personal property taxes relating to the Acquired Assets,
part or all of which are attributable to the post-Closing Tax period, and shall
promptly deliver such bill to the Purchaser who shall pay the same to the
appropriate taxing authority, provided that if such bill covers the pre-Closing
Tax period, the Sellers shall also remit prior to the due date of assessment to
the Purchaser payment for the proportionate amount of such bill that is
attributable to the pre-Closing Tax period. In the event that either the Sellers
or

                                      -36-

<PAGE>

the Purchaser shall thereafter make a payment for which it is entitled to
reimbursement under this Section 7.2(b), the other party shall make such
reimbursement promptly but in no event later than thirty (30) days after the
presentation of a statement setting forth the amount of reimbursement to which
the presenting party is entitled along with such supporting evidence as is
reasonably necessary to calculate the amount of reimbursement. Any payment
required under this Section 7.2(b) and not made within 10 days of delivery of
the statement shall bear interest at the rate per annum determined, from time to
time, under the provisions of Section 6621(a)(2) of the Code for each day until
paid. In all cases where Purchaser and Sellers share in the payment of Taxes
pursuant to this Section 7.2(b), Purchaser shall prepare and file (and to the
extent applicable, distribute) all returns, reports and information statements,
forms or similar documents for distribution to third parties, with respect to
such Taxes, all in a timely and proper fashion and as may be necessary or
appropriate to assure that Seller shall be in full and prompt compliance with
law. Purchaser shall upon the request of Seller forthwith provide to Seller
proof of its compliance with the foregoing.

          7.3 PRESS RELEASES AND ANNOUNCEMENTS. No press releases related to
this Agreement and the transactions contemplated herein, or other announcements
to the Insurance Companies or the employees, customers or suppliers of the
Sellers or Purchasers shall be issued without the mutual approval of all
Parties, except for any public disclosure which any Party in good faith believes
is required by law or regulation (in which case the disclosure shall be prepared
jointly by the Stockholder and the Purchaser). No such release or announcement
shall disclose (i) the Purchase Price or (ii) the name of Stockholder, except as
required by law or regulation (in which case the disclosure shall be prepared
jointly by the Stockholder and the Purchaser).

          7.4 FURTHER TRANSFERS. Each Party shall execute and deliver such
further instruments of conveyance and transfer and take such additional action
as the any other Party may reasonably request to effect, consummate, confirm or
evidence the transfer to the Purchaser of the Acquired Assets and any other
transactions contemplated hereby (including, without limitation, the transfer
back of any Excluded Asset or Excluded Liability back to Sellers). In the event
Purchaser shall receive any instrument of payment of with respect to any
Excluded Asset (including, without limitation, any payment from an Insurance
Company), Purchaser shall deliver it to Sellers, endorsed where necessary,
without recourse, in favor of Sellers (or such other Person as they reasonably
specify).

          7.5 TRANSITION ASSISTANCE. None of the Sellers or the Stockholder
shall in any manner take any action which is designed, intended, or might be
reasonably anticipated to have the effect of discouraging, customers, suppliers
(other than the Insurance Companies), lessors, licensors and other business
associates from maintaining the same business relationships with the Purchaser
after the date of this Agreement as were maintained with the Sellers prior to
the date of this Agreement.

                                      -37-

<PAGE>

          7.6 EXPENSES. Except as otherwise provided herein, the Sellers and the
Stockholder and the Purchaser shall pay all of their own fees, costs and
expenses (including, without limitation, fees, costs and expenses of legal
counsel, investment bankers, brokers or other representatives and consultants
and appraisal fees, costs and expenses) incurred in connection with the
negotiation of this Agreement and the other agreements contemplated hereby, the
performance of its obligations hereunder and thereunder, and the consummation of
the transactions contemplated hereby and thereby.

          7.7 EXCLUSIVITY. Until this Agreement is terminated by its terms, none
of the Sellers or the Stockholder shall (and none of the Sellers or the
Stockholder shall cause or permit any Insider or agent or any other Person
acting on behalf of the Stockholder, any Seller, or their Affiliates to), (a)
solicit, initiate or encourage the submission of any proposal or offer from any
Person (including any of them) relating to any (i) liquidation, winding-up,
dissolution or recapitalization of, (ii) merger or consolidation with or into,
(iii) acquisition or purchase of assets of or any equity interest in or (iv)
similar transaction or business combination involving the Sellers or (b)
participate in any discussions or negotiations regarding, furnish any
information with respect to, assist or participate in, or facilitate in any
other manner any effort or attempt by any other Person to do or seek any of the
foregoing. Each Seller and the Stockholder agrees that they will discontinue
immediately any negotiations or discussion with respect to any of the foregoing.
Until this Agreement is terminated by its terms, the Stockholder and the Sellers
shall notify the Purchaser immediately if any Person makes any proposal, offer,
inquiry or contact with respect to any of the foregoing and shall provide the
Purchaser with the terms thereof.

          7.8 BOOKS AND RECORDS. Unless otherwise consented to in writing by the
Sellers or the Purchaser (as the case may be), the Purchaser and the Sellers
will not, for a period of seven years following the date hereof, destroy, alter
or otherwise dispose of any of the books and records of the Sellers acquired by
the Purchaser hereunder or retained by any Seller or the Stockholder and
relating to the Business without first offering to surrender to the Sellers, the
Stockholder or the Purchaser such books and records or any portion thereof of
which the Sellers, the Stockholder or the Purchaser may intend to destroy, alter
or dispose. The Purchaser, the Sellers and the Stockholder will allow the other
party's representatives, attorneys and accountants access to such books and
records, upon reasonable request for during such party's normal business hours,
for the purpose of examining and copying the same in connection with any matter
whether or not related to or arising out of this Agreement or the transactions
contemplated hereby.

          7.9 NONCOMPETITION, NONSOLICITATION AND CONFIDENTIALITY.

          (a) Noncompetition. The Sellers and the Stockholder acknowledge that
they are receiving significant economic benefits by reason of the consummation
of the transactions contemplated hereby, that they have become familiar with the
trade secrets and other confidential information concerning the Business, that
their services to the Business have been unique in

                                      -38-

<PAGE>

nature and that the Purchaser would be irreparably damaged if they were to
compete with the Purchaser. Accordingly, in consideration of the mutual
covenants provided for herein to the Sellers and the Stockholder at the Closing,
during the period beginning on the Closing Date and ending on the fifth
anniversary of the Closing Date (the "Noncompete Period"), none of the Sellers
or the Stockholder shall engage (whether as an owner, operator, manager,
employee, officer, director, consultant, advisor, representative or otherwise)
directly or indirectly in any business that is involved in the marketing, sales,
distribution, financing or service of private passenger automobile liability
insurance products in Chicago, Illinois or any area located within 50 miles of
Chicago, Illinois; provided that ownership of less than 2% of the outstanding
stock of any publicly-traded corporation shall not be deemed to be engaging
solely by reason thereof in any of its businesses; provided, further, that the
nothing in this Section 7.9(a) shall prevent the Sellers and the Stockholder
from selling "commercial lines" insurance policies (including, without
limitation, automobile insurance to commercial drivers, including, without
limitation, taxi cab drivers) or serving as an agent of Purchaser in the sale of
private passenger automobile liability insurance products. The parties hereto
agree that the covenant set forth in this Section 7.9 is reasonable with respect
to its duration, geographical area and scope. If the final judgment of a court
of competent jurisdiction declares that any term or provision of this Section
7.9(a) is invalid or unenforceable, the Parties agree that the court making the
determination of invalidity or unenforceability shall have the power to reduce
the scope, duration, or area of the term or provision, to delete specific words
or phrases, or to replace any invalid or unenforceable term or provision with a
term or provision that is valid and enforceable and that comes closest to
expressing the intention of the invalid or unenforceable term or provision, and
this Agreement shall be enforceable as so modified after the expiration of the
time within which the judgment may be appealed.

          (b) Nonsolicitation. During the Noncompete Period, none of the Sellers
or the Stockholder shall directly or indirectly through another Person (i)
induce or attempt to induce any employee of the Purchaser to leave the employ of
the Purchaser, or in any way interfere with the relationship between the
Purchaser and any employee thereof, (ii) hire any person who is then an employee
of the Purchaser or is subject to being hired by Purchaser pursuant to the
Transition Services Agreement, or (iii) induce or attempt to induce any
customer, supplier (other than the Insurance Companies), licensee, licensor,
franchisee or other business relation of the Purchaser to cease doing business
with the Purchaser, or in any way interfere with the relationship between any,
customer, supplier, licensee or business relation and the Purchaser.

          (c) Confidentiality.

               (i) Except as otherwise specifically contemplated by the
     Transition Services Agreement, each Seller and the Stockholder shall treat
     and hold as confidential any information concerning the Business and
     affairs of the Business that is not already generally available to the
     public (the "Purchaser Confidential Information"), refrain from using any
     of the Purchaser Confidential Information except in connection with this
     Agreement, and deliver promptly to the Purchaser or destroy, at the request
     and option of the Purchaser, all tangible embodiments (and all copies) of
     the Purchaser Confidential Information which are in his possession or under
     his control. In the event that any Seller or the Stockholder is requested
     or required (by oral question or request for information or documents in
     any legal proceeding, interrogatory, subpoena, civil investigative demand,

                                      -39-

<PAGE>

     or similar process) to disclose any Purchaser Confidential Information,
     such Seller or the Stockholder shall notify the Purchaser promptly of the
     request or requirement so that the Purchaser may seek an appropriate
     protective order or waive compliance with the provisions of this Section
     7.9(c)(i). If, in the absence of a protective order or the receipt of a
     waiver hereunder, any Seller or the Stockholder is, on the advice of
     counsel, compelled to disclose any Purchaser Confidential Information to
     any tribunal, such Seller or the Stockholder may disclose the Purchaser
     Confidential Information to the tribunal; provided that in connection with
     such disclosure by the Stockholder or Seller, such Party shall use his or
     its reasonable best efforts to obtain, at the request of the Purchaser, an
     order or other assurance that confidential treatment shall be accorded to
     such portion of the Purchaser Confidential Information required to be
     disclosed as the Purchaser shall designate.

               (ii) Except as otherwise specifically contemplated by the
     Transition Services Agreement, Purchaser shall treat and hold as
     confidential any information that is an Excluded Asset that is not already
     generally available to the public (the "Seller Confidential Information"),
     refrain from using any of the Seller Confidential Information, and deliver
     promptly to the Purchaser or destroy, at the request and option of the
     Purchaser, all tangible embodiments (and all copies) of the Seller
     Confidential Information which are in his possession or under his control.
     In the event that any Purchaser is requested or required (by oral question
     or request for information or documents in any legal proceeding,
     interrogatory, subpoena, civil investigative demand, or similar process) to
     disclose any Seller Confidential Information, such Purchaser shall notify
     the Stockholder promptly of the request or requirement so that the
     Stockholder and/or either Seller may seek an appropriate protective order
     or waive compliance with the provisions of this Section 7.9(c)(ii). If, in
     the absence of a protective order or the receipt of a waiver hereunder,
     Purchaser is, on the advice of counsel, compelled to disclose any Seller
     Confidential Information to any tribunal, such Purchaser may disclose the
     Seller Confidential Information to the tribunal; provided that in
     connection with such disclosure by the Purchaser, Purchaser shall use its
     reasonable best efforts to obtain, at the request of the either Seller or
     Stockholder, an order or other assurance that confidential treatment shall
     be accorded to such portion of the Seller Confidential Information required
     to be disclosed as the either Seller or Stockholder shall designate.

          (d) Trade Names. No Seller or the Stockholder shall use or permit any
of its or his Affiliates to use the "Insurance Plus," "Yale," "Yale Insurance"
or "Yale International Insurance" names or any name confusingly similar thereto
in any manner anywhere in the world after Closing.

          (e) Remedy for Breach. Each Seller and the Stockholder acknowledges
and agrees that in the event of a breach by any Seller or the Stockholder of any
of the provisions of this Section 7.9, monetary damages shall not constitute a
sufficient remedy. Consequently, in the event of any such breach, the Sellers,
the Purchaser and/or their respective successors or assigns may, in addition to
other rights and remedies existing in their favor, apply to any court of law or
equity of competent jurisdiction for specific performance and/or injunctive or
other relief in order to enforce or prevent any violations of the provisions
hereof, in each case without the requirement of posting a bond or proving actual
damages.

                                      -40-

<PAGE>

          7.10 EMPLOYEES. Matters regarding the Employees of the Business are
dealt with in the Transition Services Agreement.

          7.11 SELLER'S NAME CHANGE. As soon as practicable after the Closing
(and in any event within five (5) days of the Closing), Insurance Plus will
change its corporate name to a name which is not (and which is not confusingly
similar to) "Insurance Plus" and Yale will change its corporate name to a name
which is not (and which is not confusingly similar to) "Yale," "Yale Insurance"
or "Yale International Insurance," it being the intent of the Parties that from
and after the Closing the Purchaser will have the sole right as against the
Sellers and all other Persons to conduct business under such names and that the
Purchaser will commence doing so at the time of the Closing.

          7.12 ALLOCATION OF PURCHASE PRICE. Within thirty (30) days following
the Closing Date, Sellers and Sellers' accountants shall prepare, and deliver to
Purchaser a proposed allocation of the Purchase Price to be paid hereunder, plus
any assumption of Assumed Liabilities or other consideration deemed paid
hereunder be paid hereunder, between the Sellers and among the class references
to assets in accordance with Treasury Regulation Sections 1.338-6T, 1.338-7T and
1.1060-1T (the "Preliminary Allocation"). Sellers and their accountants shall
prepare the Preliminary Allocation in good faith, and both the Preliminary
Allocation and Final Allocation (as defined below) shall be prepared in a manner
whereby the allocations for inventory, accounts receivable (if any), tangible
personal property, and intangible personal property shall not exceed the
adjusted Tax basis for such property for federal income tax purposes in the
hands of Sellers immediately prior to the Closing, and no portion of the
Purchase Price will be allocated to any covenant not to compete or similar
arrangement as defined in Section 197(d)(1)(E) of the Code. Each of the parties
shall reasonably cooperate with the other in any manner in which may be
reasonably requested in connection with determining the Final Allocation (as
defined below). If Purchaser does not deliver a written notice to Sellers within
thirty (30) days after receipt of the Preliminary Allocation specifying in
reasonable detail the nature of any objection it may have to the proposed
allocation (an "Allocation Objection Notice"), then the Preliminary Allocation
shall be the final allocation of the Purchase Price, the Assumed Liabilities and
other relevant items among the Acquired Assets and between the Sellers (such
allocation, the "Final Allocation"). If Purchaser does timely deliver an
Allocation Objection Notice, then Purchaser and Sellers shall attempt in good
faith to resolve any differences identified in the Allocation Objection Notice
within the succeeding twenty (20) days and, if they are able to resolve all such
differences, then the agreed-upon allocation shall be the Final Allocation. If
they are unable to resolve all such differences, then any remaining disagreed
items shall be submitted to the an independent accountant mutually agreeable to
Purchaser and the Stockholder (the "Independent Accountant") for resolution in
the next twenty (20) days. The Independent Accountant shall be instructed to
determine whether the position maintained by Sellers or by Purchaser is the more
reasonable allocation of the Purchase Price in respect of any item in dispute
(taking into account the provisions of this Section 7.12) and shall select one
of the two positions. The allocation resulting from the Independent Accountant's
decision shall be the Final Allocation. The fees and expenses of the Independent
Accountant shall be paid by the party whose position is not selected by the
Independent Accountant. The parties agree that none of them will assert or
maintain a position inconsistent

                                      -41-

<PAGE>

with the foregoing unless required by applicable law. The parties agree that the
form of the transactions (and the consideration therefor) provided for in this
Agreement and in the agreements referred to herein was arrived at on the basis
of arm's-length negotiation among the parties, and will be respected by them for
federal, state, local and other tax reporting purposes (including in filings on
Internal Revenue Service Form 8594) and that none of them will assert or
maintain a position inconsistent with the foregoing. Each of the Purchaser and
the Sellers shall file all necessary forms required by any Tax authority in
conjunction with the purchase of the Acquired Assets and such forms shall be
prepared in accordance with this Section. The parties agree that all Performance
Payments shall be allocated to goodwill. The parties will promptly inform one
another of any challenge by any governmental body to any allocation made
pursuant to Section 7.12 and agree to consult and keep one another informed with
respect to the status of, and any discussion, proposal or submission with
respect to, such challenge.

          7.13 THIRD PARTY CONSENTS. Notwithstanding anything to the contrary
contained in this Agreement, this Agreement shall not constitute an agreement to
transfer, sell or otherwise assign any instrument, contract, lease, license,
permit or other agreement or arrangement which is not permitted to be assigned
in connection with a transaction of the type contemplated by this Agreement
(collectively, the "Unassigned Contracts"). The beneficial interest in and to
each Unassigned Contract shall in any event pass to the Purchaser at the
Closing; and each Seller covenants and agrees to cooperate with the Purchaser in
any lawful and economically feasible arrangement to provide the Purchaser with
the Sellers' entire interest in the benefits under each of the Unassigned
Contracts. If and only if the Purchaser receives the economic benefits under an
Unassigned Contract, the Purchaser agrees to accept the burdens and perform the
obligations under such Unassigned Contract as subcontractor of the Sellers.
Furthermore, if the other party(ies) to an Unassigned Contract subsequently
consent to the assignment of such contract to the Purchaser (without
modification thereto which is adverse to the Purchaser), the Purchaser shall
thereupon agree to assume and perform all liabilities and obligations arising
thereunder after the date of such consent, at which time such Unassigned
Contract shall be deemed an Acquired Asset. Purchaser agrees, upon Sellers'
reasonable request, to use its reasonable efforts to assist Sellers and/or
Stockholder in attempting to obtain the assignment and novation of each
Unassigned Contract Sellers and/or Stockholder may request, following the
Closing. Each Seller agrees to indemnify the Purchaser and hold it harmless
against any Losses which the Purchaser may suffer, sustain or become subject to,
as a result of any claims by any party to any of the Unassigned Contracts for
breach of contract in connection with the consummation of the transactions
contemplated by this Agreement. Notwithstanding anything to the contrary herein,
including, without limitation Section 2.1(c), 4.7, 4.11, 4.13 and 4.17 hereof,
and the previous sentence of this Section 7.13, no provision of this Agreement
shall be deemed to require any of Purchaser, Sellers or Stockholder to indemnify
or otherwise be liable to any other Party hereto for any Losses that may result
to any of Purchaser, Sellers or Stockholder in connection with a failure to
assign any Contract or Permit in connection with this Agreement or the
transactions contemplated hereby (including, without limitation, the inability
to secure a renewal option with respect to any unassigned contract, due to such
failure to assign the Unassigned Contract).

          7.14 INSURANCE.

                                      -42-

<PAGE>

          (a) Within seven (7) days following the Closing Date, the Purchaser
shall name each Seller and the Stockholder (and such officers, directors,
shareholders and other Affiliates of such Seller as such Seller shall designate
in writing to the Purchaser from time to time) as additional insureds under
general liability and premises liability insurance to be maintained by the
Purchaser with respect to the Business for at least five (5) years from the time
each Seller and the Stockholders are named as additional insureds, which
insurance policy or policies shall (a) be in commercially reasonable form and be
issued by an insurer or insurers reasonably acceptable to such Seller, (b) apply
to each piece of Real Property being transferred to the Purchaser pursuant to
this Agreement (c) be primary to and without right of contribution from any
other insurance held or purchased or owned by such Seller, (d) provide limits in
the amount of at least $1.0 million for each claim or occurrence and $2.0
million in the annual aggregate, and (e) provide, by endorsement, that such
Seller is entitled to receive at least thirty (30) days prior written notice of
any intent to reduce policy limits, restrict coverage, cancel or otherwise alter
or amend said policy in any manner that affects such Seller. Proof of the
insurance required pursuant to this Section 7.14(a), including a certificate or
certificates of insurance, shall be submitted by the Purchaser to the applicable
Seller as soon as reasonably practicable following the Closing Date, and
thereafter, during the period provided in subsection this Section 7.14(a), on or
prior to the date which is ten business days prior to each policy expiration
date. The Purchaser shall deliver a copy of the Purchaser's then prevailing
policy or policies of insurance within thirty (30) days following the later of
(i) the delivery of the certificate(s) of insurance and (ii) the receipt by the
Purchaser of a copy of such policy or policies. Within seven (7) days, Purchaser
shall provide the landlord under each Lease with any certificate of insurance
required under such Lease.

          7.15 BULK SALES. Without implication that such laws apply to the
transaction contemplated hereby, Seller and Purchaser shall not comply with the
provisions of the Uniform Commercial Code of any states relating to bulk sales.

                                  ARTICLE VIII
                                  MISCELLANEOUS

          8.1 AMENDMENT AND WAIVER. This Agreement may be amended and any
provision of this Agreement may be waived, provided that any such amendment or
waiver shall be binding upon a Party only if such amendment or waiver is set
forth in a writing executed by the Purchaser, the Sellers and the Stockholder.
No course of dealing between or among any persons having any interest in this
Agreement shall be deemed effective to modify, amend or discharge any part of
this Agreement or any rights or obligations of any Party under or by reason of
this Agreement.

          8.2 NOTICES. All notices, demands and other communications given or
delivered under this Agreement shall be in writing and shall be deemed to have
been given when personally delivered, three business days following mailing by
first class mail, return receipt requested, or delivered by express courier
service or telecopied (with hard copy to follow by express courier service).
Notices, demands and communications to the Stockholder, the Sellers and the

                                      -43-

<PAGE>

Purchaser shall, unless another address is specified in writing, be sent to the
address or telecopy number indicated below:

          Notices to the Sellers and the Stockholder:

          c/o IP Insurance Liquidation, Inc.
          (f/k/a Insurance Plus Agency II, Inc.)
          C&M Danos
          1314 Kensington Box 3881
          Oak Brook, Illinois 60521
          Attention: Constantine Danos

          with a copy to:
          FagelHaber LLC
          55 East Monroe Street, 40th Floor
          Chicago, Illinois 60603
          Attention: Joel A. Haber, Esq.
          Telecopy: (312) 580-2201

          Notices to the Purchaser:
          First Acceptance Corporation
          3813 Green Hills Village Drive
          Nashville, Tennessee 37215
          Attention: Stephen J. Harrison
          Telecopy: (615) 844-2898

          with a copy to:
          Kirkland & Ellis LLP
          200 East Randolph Drive
          Chicago, Illinois 60601
          Attention: Sanford E. Perl, P.C.
          Telecopy: (312) 861-2200

          8.3 BINDING AGREEMENT; ASSIGNMENT. This Agreement and all of the
provisions hereof shall be binding upon and inure to the benefit of the Parties
and their respective successors and permitted assigns; provided that neither
this Agreement nor any of the rights, interests or obligations hereunder may be
assigned by any Seller or the Stockholder without the prior written consent of
the Purchaser or by the Purchaser (except as otherwise provided in this
Agreement) without the prior written consent of the Sellers; provided further
that:

          (a) the Purchaser may assign its rights under this Agreement for
collateral security purposes to any lender providing financing to the Purchaser
or any of its Affiliates and any such lender may exercise all of the rights and
remedies of the Purchaser hereunder; and

                                      -44-

<PAGE>

          (b) the Purchaser may assign its rights under this Agreement, in whole
or in part, to any subsequent purchaser of the Purchaser or any material portion
of its assets (whether such sale is structured as a sale of stock, a sale of
assets, a merger or otherwise) so long as Purchaser remains joint and severally
liable for all of its obligations to Sellers and Stockholders under this
Agreement.

          8.4 SEVERABILITY. Whenever possible, each provision of this Agreement
shall be interpreted in such manner as to be effective and valid under
applicable law, but if any provision of this Agreement is held to be prohibited
by or invalid under applicable law, such provision shall be ineffective only to
the extent of such prohibition or invalidity, without invalidating the remainder
of such provisions or the remaining provisions of this Agreement.

          8.5 NO STRICT CONSTRUCTION. The language used in this Agreement shall
be deemed to be the language chosen by the Parties to express their mutual
intent, and no rule of strict construction shall be applied against any person.

          8.6 CONSTRUCTION. Nothing in the schedules hereto shall be deemed
adequate to disclose an exception to a representation or warranty made herein
unless the schedule identifies the exception with reasonable particularity and
describes the relevant facts in reasonable detail, provided, however, that any
matter which is disclosed in any portion of any Schedule to this Agreement is
deemed to have been disclosed for the purposes of all relevant provisions of
this Agreement for which disclosure is reasonably apparent. The inclusion of any
item on any schedule to this Agreement is not evidence of the materiality of
such item for the purposes of this Agreement and the Transaction Documents.
Without limiting the generality of the foregoing, the mere listing (or inclusion
of a copy) of a document or other item shall not be deemed adequate to disclose
an exception to a representation or warranty made herein (unless the
representation or warranty has to do with the existence of the document or other
item itself) except where such disclosure is reasonably apparent. The Parties
intend that each representation, warranty, covenant and agreement contained
herein shall have independent significance. If any Party has breached any
representation, warranty, covenant or agreement contained herein in any respect,
the fact that there exists another representation, warranty, covenant or
agreement relating to the same subject matter (regardless of the relative levels
of specificity) which the Party has not breached shall not detract from or
mitigate the fact that the Party is in breach of the first representation,
warranty, covenant or agreement.

          8.7 CAPTIONS. The captions used in and the tables of contents and
schedules to this Agreement are for convenience of reference only and do not
constitute a part of this Agreement and shall not be deemed to limit,
characterize or in any way affect any provision of this Agreement, and all
provisions of this Agreement shall be enforced and construed as if no caption
had been used in this Agreement.

                                      -45-

<PAGE>

          8.8 ENTIRE AGREEMENT. This Agreement and the documents referred to
herein contain the entire agreement between the Parties and supersede any prior
understandings, agreements or representations by or between the Parties, written
or oral, which may have related to the subject matter hereof in any way.

          8.9 COUNTERPARTS. This Agreement may be executed in multiple
counterparts, each of which shall be deemed an original but all of which taken
together shall constitute one and the same instrument.

          8.10 GOVERNING LAW. All questions concerning the construction,
validity and interpretation of this Agreement shall be governed by and construed
in accordance with the laws of the State of Illinois applicable therein without
giving effect to any choice of law or conflict of law provision (whether of the
State of Illinois or any other jurisdiction) that would cause the application of
the laws of any jurisdiction other than the State of Illinois. This Agreement
has been executed and delivered in and shall be deemed to have been made
Chicago, Illinois. Sellers, Stockholder and Purchaser each agrees to the
exclusive jurisdiction of any state or Federal court within the City of Chicago,
Illinois with respect to any claim or cause of action arising under or relating
to this Agreement, and waives personal service of any and all process upon it,
and consents that all services of process be made by registered mail, directed
to it at its address as set forth in Section 8.2, and service so made shall be
deemed to be completed when received. Sellers, Stockholder and Purchaser each
waives any objection based on forum non conveniens and waives any objection to
venue of any action instituted hereunder. Nothing in this paragraph shall affect
the right of Sellers, Stockholder or Purchaser to serve legal process in any
other manner permitted by law. EACH OF THE PARTIES HERETO WAIVES THE RIGHT TO A
JURY TRIAL IN CONNECTION WITH ANY SUIT, ACTION OR PROCEEDING SEEKING ENFORCEMENT
OF SUCH PARTY'S RIGHTS UNDER THIS AGREEMENT.

          8.11 PARTIES IN INTEREST. Nothing in this Agreement, express or
implied, is intended to confer on any person other than the Parties and their
respective successors and assigns any rights or remedies under or by virtue of
this Agreement.

          8.12 GUARANTY. Parent hereby unconditionally guaranties each of
Purchaser's obligations under this Agreement.

                                    * * * * *

                                      -46-

<PAGE>

          IN WITNESS WHEREOF, the Parties have executed this Asset Purchase
Agreement as of the date first written above.

                                        INSURANCE PLUS AGENCY II, INC.

                                        By: /s/ Constantine Danos
                                            ------------------------------------
                                        Its: President

                                        YALE INTERNATIONAL INSURANCE AGENCY,
                                        INC.

                                        By: /s/ Constantine Danos
                                            ------------------------------------
                                        Its: President

                                        ACCEPTANCE INSURANCE AGENCY OF
                                        ILLINOIS, INC.

                                        By: /s/ Stephen J. Harrison
                                            ------------------------------------
                                        Its: President

                                        FIRST ACCEPTANCE CORPORATION

                                        By: /s/ Stephen J. Harrison
                                            ------------------------------------
                                        Its: President

                                        /s/ Constantine Danos
                                        ----------------------------------------
                                        Constantine Danos<PAGE>
                                                                    Exhibit 10.2

                    REVOLVING CREDIT AND TERM LOAN AGREEMENT

                          DATED AS OF JANUARY 12, 2006

                                      AMONG

                          FIRST ACCEPTANCE CORPORATION
                                   AS BORROWER

                   THE LENDERS FROM TIME TO TIME PARTY HERETO

                                       AND

                                  SUNTRUST BANK
                             AS ADMINISTRATIVE AGENT

                           SUNTRUST ROBINSON HUMPHREY
                  A DIVISION OF SUNTRUST CAPITAL MARKETS, INC.
                                AS LEAD ARRANGER

<PAGE>

<TABLE>
<S>                                                                           <C>
ARTICLE I DEFINITIONS; CONSTRUCTION........................................    1
   Section 1.1   Definitions...............................................    1
   Section 1.2   Classifications of Loans and Borrowings...................   19
   Section 1.3   Accounting Terms and Determination........................   19
   Section 1.4   Terms Generally...........................................   19

ARTICLE II AMOUNT AND TERMS OF THE COMMITMENTS.............................   20
   Section 2.1   General Description of Facilities.........................   20
   Section 2.2   Revolving Loans...........................................   20
   Section 2.3   Procedure for Revolving Borrowings........................   20
   Section 2.4   Swingline Commitment......................................   21
   Section 2.5   Procedure for Swingline Borrowing; Etc....................   21
   Section 2.6   Intentionally Omitted.....................................   22
   Section 2.7   Term Loan Commitments.....................................   22
   Section 2.8   Funding of Borrowings.....................................   23
   Section 2.9   Interest Elections........................................   24
   Section 2.10  Optional Reduction and Termination of Commitments.........   25
   Section 2.11  Repayment of Loans........................................   25
   Section 2.12  Evidence of Indebtedness..................................   26
   Section 2.13  Optional Prepayments......................................   27
   Section 2.14  Interest on Loans.........................................   27
   Section 2.15  Fees......................................................   28
   Section 2.16  Computation of Interest and Fees..........................   29
   Section 2.17  Inability to Determine Interest Rates.....................   29
   Section 2.18  Illegality................................................   29
   Section 2.19  Increased Costs...........................................   30
   Section 2.20  Funding Indemnity.........................................   31
   Section 2.21  Taxes.....................................................   32
   Section 2.22  Payments Generally; Pro Rata Treatment; Sharing of
                    Set-offs...............................................   33
   Section 2.23  Mitigation of Obligations.................................   35
   Section 2.24  Letters of Credit.........................................   35

ARTICLE III CONDITIONS PRECEDENT TO LOANS AND LETTERS OF CREDIT............   39
   Section 3.1   Conditions To Effectiveness...............................   39
</TABLE>

                                        i

<PAGE>

<TABLE>
<S>                                                                           <C>
   Section 3.2   Each Credit Event.........................................   42
   Section 3.3   Delivery of Documents.....................................   42

ARTICLE IV REPRESENTATIONS AND WARRANTIES..................................   42
   Section 4.1   Existence; Power..........................................   42
   Section 4.2   Organizational Power; Authorization.......................   43
   Section 4.3   Governmental Approvals; No Conflicts......................   43
   Section 4.4   Financial Statements......................................   43
   Section 4.5   Litigation and Environmental Matters......................   43
   Section 4.6   Compliance with Laws and Agreements.......................   44
   Section 4.7   Investment Company Act, Etc...............................   44
   Section 4.8   Taxes.....................................................   44
   Section 4.9   Margin Regulations........................................   44
   Section 4.10  ERISA.....................................................   44
   Section 4.11  Ownership of Property.....................................   45
   Section 4.12  Disclosure................................................   45
   Section 4.13  Labor Relations...........................................   45
   Section 4.14  Subsidiaries..............................................   45
   Section 4.15  Acquisition Matters.......................................   46
   Section 4.16  Foreign Assets Control Regulations, etc...................   46
   Section 4.17  Licenses..................................................   46

ARTICLE V AFFIRMATIVE COVENANTS............................................   47
   Section 5.1   Financial Statements and Other Information................   47
   Section 5.2   Notices of Material Events................................   49
   Section 5.3   Existence; Conduct of Business............................   49
   Section 5.4   Compliance with Laws, Etc.................................   49
   Section 5.5   Payment of Obligations....................................   49
   Section 5.6   Books and Records.........................................   50
   Section 5.7   Visitation, Inspection, Etc...............................   50
   Section 5.8   Maintenance of Properties; Insurance......................   50
   Section 5.9   Use of Proceeds and Letters of Credit.....................   50
   Section 5.10  Additional Subsidiaries...................................   50
   Section 5.11  Additional Accounts.......................................   51

ARTICLE VI FINANCIAL COVENANTS.............................................   51
</TABLE>

                                       ii

<PAGE>

<TABLE>
<S>                                                                           <C>
   Section 6.1   Fixed Charge Coverage Ratio...............................   51
   Section 6.2   Consolidated Tangible Net Worth...........................   51
   Section 6.3   Net Premiums Written to Surplus...........................   51
   Section 6.4   Combined Ratio............................................   51
   Section 6.5   Minimum Risk Based Capital Ratio..........................   51

ARTICLE VII NEGATIVE COVENANTS.............................................   52
   Section 7.1   Indebtedness..............................................   52
   Section 7.2   Negative Pledge...........................................   52
   Section 7.3   Fundamental Changes.......................................   54
   Section 7.4   Investments, Loans, Etc...................................   54
   Section 7.5   Restricted Payments.......................................   55
   Section 7.6   Sale of Assets............................................   55
   Section 7.7   Transactions with Affiliates..............................   56
   Section 7.8   Restrictive Agreements....................................   56
   Section 7.9   Sale and Leaseback Transactions...........................   56
   Section 7.10  Hedging Agreements........................................   56
   Section 7.11  Amendment to Material Documents...........................   56
   Section 7.12  Accounting Changes........................................   57
   Section 7.13  Capital Expenditures......................................   57

ARTICLE VIII EVENTS OF DEFAULT.............................................   57
   Section 8.1   Events of Default.........................................   57

ARTICLE IX THE ADMINISTRATIVE AGENT........................................   60
   Section 9.1   Appointment of Administrative Agent.......................   60
   Section 9.2   Nature of Duties of Administrative Agent..................   60
   Section 9.3   Lack of Reliance on the Administrative Agent..............   61
   Section 9.4   Certain Rights of the Administrative Agent................   61
   Section 9.5   Reliance by Administrative Agent..........................   61
   Section 9.6   The Administrative Agent in its Individual Capacity.......   62
   Section 9.7   Successor Administrative Agent............................   62

ARTICLE X MISCELLANEOUS....................................................   63
   Section 10.1  Notices...................................................   63
   Section 10.2  Waiver; Amendments........................................   64
   Section 10.3  Expenses; Indemnification.................................   65
</TABLE>

                                       iii

<PAGE>

<TABLE>
<S>                                                                           <C>
   Section 10.4  Successors and Assigns....................................   67
   Section 10.5  Governing Law; Jurisdiction; Consent to Service of
                    Process................................................   70
   Section 10.6  WAIVER OF JURY TRIAL......................................   70
   Section 10.7  Right of Setoff...........................................   71
   Section 10.8  Counterparts; Integration.................................   71
   Section 10.9  Survival..................................................   71
   Section 10.10 Severability..............................................   72
   Section 10.11 Confidentiality...........................................   72
   Section 10.12 Interest Rate Limitation..................................   72
</TABLE>

Exhibits

     Exhibit A           - Revolving Credit Note
     Exhibit B           - Term Note
     Exhibit C           - Swingline Note
     Exhibit D           - Form of Assignment and Acceptance
     Exhibit E           - Form of Subsidiary Guarantee Agreement
     Exhibit F           - Form of Indemnity, Subrogation and Contribution
                           Agreement
     Exhibit 2.3         - Notice of Revolving Borrowing
     Exhibit 2.5         - Notice of Swingline Borrowing
     Exhibit 2.9         - Form of Continuation/Conversion
     Exhibit 3.1(b)(iv)  - Form of Secretary's Certificate
     Exhibit 3.1(b)(vii) - Form of Officer's Certificate

Schedules

     Schedule 4.5  Litigation
     Schedule 4.14 Subsidiaries
     Schedule 7.1  Outstanding Indebtedness
     Schedule 7.2  Existing Liens
     Schedule 7.4  Existing Investments
     Schedule 7.7  Affiliate Transactions

                                       iv

<PAGE>

                    REVOLVING CREDIT AND TERM LOAN AGREEMENT

     THIS REVOLVING CREDIT AND TERM LOAN AGREEMENT (this "Agreement") is made
and entered into as of January 12, 2006, by and among FIRST ACCEPTANCE
CORPORATION, a Delaware corporation (the "Borrower"), SUNTRUST BANK, FIRST BANK
and the several other banks and other financial institutions from time to time
party hereto (the "Lenders"), and SUNTRUST BANK, in its capacity as
Administrative Agent for the Lenders (the "Administrative Agent").

                                   WITNESSETH:

     WHEREAS, the Borrower has requested that the Lenders establish a $5,000,000
revolving credit facility and make term loans in an aggregate principal amount
equal to $25,000,000 to the Borrower;

     WHEREAS, subject to the terms and conditions of this Agreement, the Lenders
severally, to the extent of their respective Commitments, are willing to
establish the requested revolving credit facility and severally to make the term
loans to the Borrower.

     NOW, THEREFORE, in consideration of the premises and the mutual covenants
herein contained, the Borrower, the Lenders and the Administrative Agent agree
as follows:

                                    ARTICLE I

                            DEFINITIONS; CONSTRUCTION

     SECTION 1.1 Definitions. In addition to the other terms defined herein, the
following terms used herein shall have the meanings herein specified (to be
equally applicable to both the singular and plural forms of the terms defined):

     "ACQUISITION" shall mean the transactions as set forth in and as
contemplated by the Purchase Agreement.

     "ADJUSTED LIBO RATE" shall mean, with respect to each Interest Period for a
Eurodollar Borrowing, the rate per annum obtained by dividing (i) LIBOR for such
Interest Period by (ii) a percentage equal to 1.00 minus the Eurodollar Reserve
Percentage.

     "ADMINISTRATIVE AGENT" shall have the meaning assigned to such term in the
opening paragraph hereof.

     "ADMINISTRATIVE QUESTIONNAIRE" shall mean, with respect to each Lender, an
administrative questionnaire in the form prepared by the Administrative Agent
and submitted to the Administrative Agent duly completed by such Lender.

     "AFFILIATE" shall mean, as to any Person, any other Person that directly,
or indirectly through one or more intermediaries, Controls, is Controlled by, or
is under common Control with, such Person.

<PAGE>

     "AGGREGATE REVOLVING COMMITMENTS" shall mean the sum of the Revolving
Commitments of all Lenders at any time outstanding. On the Closing Date, the
Aggregate Revolving Commitments shall equal $5,000,000.

     "APPLICABLE LENDING OFFICE" shall mean, for each Lender and for each Type
of Loan, the "Lending Office" of such Lender (or an Affiliate of such Lender)
designated for such Type of Loan in the Administrative Questionnaire submitted
by such Lender or such other office of such Lender (or an Affiliate of such
Lender) as such Lender may from time to time specify to the Administrative Agent
and the Borrower as the office by which its Loans of such Type are to be made
and maintained.

     "APPLICABLE MARGIN" shall mean for all Loans outstanding on any date, 0.25%
per annum with respect to Base Rate Loans and 1.75% per annum with respect to
Eurodollar Loans.

     "APPLICABLE PERCENTAGE" shall mean, with respect to the Commitment Fee, as
of any date, 0.25% per annum and with respect to the Letter of Credit Fee, as of
any date, the percentage per annum determined by reference to the Applicable
Margin for Eurodollar Loans in effect on such date.

     "ASSIGNMENT AND ACCEPTANCE" shall mean an assignment and acceptance entered
into by a Lender and an assignee (with the consent of any party whose consent is
required by Section 10.4(b)) and accepted by the Administrative Agent, in the
form of Exhibit D attached hereto or any other form approved by the
Administrative Agent.

     "AUTHORIZED CONTROL LEVEL RISK-BASED CAPITAL" shall have the meaning
ascribed to such term in the Statutory Statements of an Insurance Company for
such period, determined in accordance with SAP.

     "AVAILABILITY PERIOD" shall mean the period from the Closing Date to the
Commitment Termination Date.

     "BASE RATE" shall mean the higher of (i) the per annum rate which the
Administrative Agent publicly announces from time to time to be its prime
lending rate, as in effect from time to time, and (ii) the Federal Funds Rate,
as in effect from time to time, plus one-half of one percent (0.50%). The
Administrative Agent's prime lending rate is a reference rate and does not
necessarily represent the lowest or best rate charged to customers. The
Administrative Agent may make commercial loans or other loans at rates of
interest at, above or below the Administrative Agent's prime lending rate. Each
change in the Administrative Agent's prime lending rate shall be effective from
and including the date such change is publicly announced as being effective.

     "BORROWER" shall have the meaning in the introductory paragraph hereof.

     "BORROWER SECURITY AGREEMENT" shall mean that certain Security Agreement
dated as of the Closing Date, executed by the Borrower as debtor and by the
Administrative Agent as secured party thereunder, for the benefit of Lenders,
and any amendments thereto or restatements thereof.

                                        2

<PAGE>

     "BORROWING" shall mean a borrowing consisting of (i) Loans of the same
Class and Type, made, converted or continued on the same date and in case of
Eurodollar Loans, as to which a single Interest Period is in effect, or (ii) a
Swingline Loan.

     "BUSINESS DAY" shall mean (i) any day other than a Saturday, Sunday or
other day on which commercial banks in Atlanta, Georgia or Nashville, Tennessee
are authorized or required by law to close and (ii) if such day relates to a
Borrowing of, a payment or prepayment of principal or interest on, a conversion
of or into, or an Interest Period for, a Eurodollar Loan or a notice with
respect to any of the foregoing, any day on which dealings in Dollars are
carried on in the London interbank market.

     "CAPITAL EXPENDITURES" shall mean for any period, without duplication, (a)
the additions to property, plant and equipment and other capital expenditures of
the Borrower and its Subsidiaries that are (or would be) set forth on a
consolidated statement of cash flows of the Borrower for such period prepared in
accordance with GAAP and (b) Capital Lease Obligations incurred by the Borrower
and its Subsidiaries during such period. Capital Expenditures shall not include
the Acquisition.

     "CAPITAL LEASE OBLIGATIONS" of any Person shall mean all obligations of
such Person to pay rent or other amounts under any lease (or other arrangement
conveying the right to use) real or personal property, or a combination thereof,
which obligations are required to be classified and accounted for as capital
leases on a balance sheet of such Person under GAAP, and the amount of such
obligations shall be the capitalized amount thereof determined in accordance
with GAAP.

     "CHANGE IN CONTROL" shall mean the occurrence of one or more of the
following events: (a) any sale, exchange or other transfer (in a single
transaction or a series of related transactions) of all or substantially all of
the assets of the Borrower to any Person or "group" (within the meaning of the
Securities Exchange Act of 1934 and the rules of the Securities and Exchange
Commission thereunder in effect on the date hereof), (b) the acquisition of
ownership, directly or indirectly, beneficially or of record, by any Person or
"group" (within the meaning of the Securities Exchange Act of 1934 and the rules
of the Securities and Exchange Commission thereunder as in effect on the date
hereof) which are not currently shareholders, of 50% or more of the outstanding
shares of the voting stock of the Borrower; or (c) occupation of a majority of
the seats (other than vacant seats) on the board of directors of the Borrower by
Persons who were neither (i) nominated by the current board of directors or (ii)
appointed by directors so nominated; or (d) any sale, exchange or other transfer
of the voting shares of the Borrower held by Gerald J. Ford, Stephen J. Harrison
and Thomas Marshall Harrison, Jr., which would cause the disallowance of
Borrower's existing net operating losses due to a failure to maintain
"continuity of interest" as such term would be determined under the application
Section 368 of the Code; or (e) the sale by Stephen J. Harrison, of more than
50% of his voting shares of the Borrower, except transfers by descent or
distribution upon his death and subsequent transfers by such descendents or
distributees.

     "CHANGE IN LAW" shall mean (i) the adoption of any applicable law, rule or
regulation after the date of this Agreement, (ii) any change in any applicable
law, rule or regulation, or any change in the interpretation or application
thereof, by any Governmental Authority after the date

                                        3

<PAGE>

of this Agreement, or (iii) compliance by any Lender (or its Applicable Lending
Office) or the Issuing Bank (or for purposes of Section 2.19, by such Lender's
or the Issuing Bank's holding company, if applicable) with any request,
guideline or directive (whether or not having the force of law) of any
Governmental Authority made or issued after the date of this Agreement.

     "CLASS", when used in reference to any Loan or Borrowing, refers to whether
such Loan, or the Loans comprising such Borrowing, are Revolving Loans,
Swingline Loans or Term Loans and when used in reference to any Commitment,
refers to whether such Commitment is a Revolving Commitment, a Swingline
Commitment or a Term Loan Commitment.

     "CLOSING DATE" shall mean the date on which the conditions precedent set
forth in Section 3.1 and Section 3.2 have been satisfied or waived in accordance
with Section 10.2.

     "CODE" shall mean the Internal Revenue Code of 1986, as amended and in
effect from time to time.

     "COLLATERAL ASSIGNMENT OF LIFE INSURANCE" shall mean the Collateral
Assignment of Policy in form and substance reasonably satisfactory to the
Administrative Agent to be executed by Stephen J. Harrison as the insured, the
Borrower as the owner of the policy (with a face amount not less than
$5,000,000) and acknowledged by the insurer, naming the Administrative Agent as
assignee thereunder for the benefit of the Lenders.

     "COMBINED RATIO" shall mean for an Insurance Company, the sum of its Loss
Ratio and its Expense Ratio determined in accordance with GAAP for such period.

     "COMMITMENT" shall mean a Revolving Commitment, a Swingline Commitment or a
Term Loan Commitment or any combination thereof (as the context shall permit or
require).

     "COMMITMENT TERMINATION DATE" shall mean the earliest of (i) June 30, 2010,
(ii) the date on which the Revolving Commitments are terminated pursuant to
Section 2.10 and (iii) the date on which all amounts outstanding under this
Agreement have been declared or have automatically become due and payable
(whether by acceleration or otherwise).

     "CONSOLIDATED EBITDA" shall mean, for the Borrower and its Subsidiaries for
any period, an amount equal to the sum of (a) Consolidated Net Income for such
period plus (b) to the extent deducted in determining Consolidated Net Income
for such period, (i) Consolidated Interest Expense, (ii) tax expense, (iii)
depreciation and amortization (excluding amortization of policy costs) and (iv)
all other non-cash charges, determined on a consolidated basis in accordance
with GAAP in each case for such period.

     "CONSOLIDATED EBITDAR" shall mean, for the Borrower and its Subsidiaries
for any period, an amount equal to the sum of (a) Consolidated EBITDA and (b)
Consolidated Lease Expense.

     "CONSOLIDATED FIXED CHARGES" shall mean, for the Borrower and its
Subsidiaries for any period, the sum (without duplication) of (a) Consolidated
Interest Expense for such period (including non-use fees and letter of credit
fees paid under this Agreement), (b) scheduled

                                        4

<PAGE>

principal payments made on Consolidated Total Debt during such period after
giving effect to any reductions for prepayments, and (c) Consolidated Lease
Expense for such period.

     "CONSOLIDATED INTEREST EXPENSE" shall mean, for the Borrower and its
Subsidiaries for any period determined on a consolidated basis in accordance
with GAAP, the sum of (i) total cash interest expense, including without
limitation the interest component of any payments in respect of Capital Leases
Obligations capitalized or expensed during such period (whether or not actually
paid during such period) plus (ii) the net amount payable (or minus the net
amount receivable) under Hedging Agreements during such period (whether or not
actually paid or received during such period).

     "CONSOLIDATED LEASE EXPENSE" shall mean, for any period, the aggregate
amount of fixed and contingent rentals payable by the Borrower and its
Subsidiaries with respect to leases of real and personal property (excluding
Capital Lease Obligations) determined on a consolidated basis in accordance with
GAAP for such period.

     "CONSOLIDATED NET INCOME" shall mean, for any period, the net income (or
loss) of the Borrower and its Subsidiaries for such period determined on a
consolidated basis in accordance with GAAP, but excluding therefrom (to the
extent otherwise included therein) (i) any extraordinary, unusual and
non-recurring gains or losses, (ii) any gains attributable to write-ups of
assets and (iii) any equity interest of the Borrower or any Subsidiary of the
Borrower in the unremitted earnings of any Person that is not a Subsidiary and
(iv) any income (or loss) of any Person accrued prior to the date it becomes a
Subsidiary or is merged into or consolidated with the Borrower or any Subsidiary
on the date that such Person's assets are acquired by the Borrower or any
Subsidiary.

     "CONSOLIDATED TANGIBLE NET WORTH" shall mean, as of any date, (i) the total
assets of the Borrower and its Subsidiaries that would be reflected on the
Borrower's consolidated balance sheet as of such date prepared in accordance
with GAAP, after eliminating all amounts properly attributable to minority
interests, if any, in the stock and surplus of Subsidiaries, minus the sum of
(i) the total liabilities of the Borrower and its Subsidiaries that would be
reflected on the Borrower's consolidated balance sheet as of such date prepared
in accordance with GAAP, (ii) the amount of any write-up in the book value of
any assets resulting from a revaluation thereof or any write-up in excess of the
cost of such assets acquired reflected on the consolidated balance sheet of the
Borrower as of such date prepared in accordance with GAAP and (iii) the net book
amount of all assets of the Borrower and its Subsidiaries that would be
classified as intangible assets on a consolidated balance sheet of the Borrower
as of such date prepared in accordance with GAAP.

     "CONSOLIDATED TOTAL DEBT" shall mean, as of any date of determination, all
Indebtedness of the Borrower and its Subsidiaries that would be reflected on a
consolidated balance sheet of the Borrower prepared in accordance with GAAP as
of such date.

     "CONTROL" shall mean the power, directly or indirectly, either to (i) vote
10% or more of securities having ordinary voting power for the election of
directors (or persons performing similar functions) of a Person or (ii) direct
or cause the direction of the management and policies of a Person, whether
through the ability to exercise voting power, by contract or otherwise. The

                                        5

<PAGE>

terms "CONTROLLING", "CONTROLLED BY", and "UNDER COMMON CONTROL WITH" have
meanings correlative thereto.

     "DEFAULT" shall mean any condition or event described in Section 8.1 that,
with the giving of notice or the lapse of the applicable cure period (if any) or
both, would constitute an Event of Default.

     "DEFAULT INTEREST" shall have the meaning set forth in Section 2.14(d).

     "DOLLAR(S)" and the sign "$" shall mean lawful money of the United States
of America.

     "ENVIRONMENTAL LAWS" shall mean all laws, rules, regulations, codes,
ordinances, orders, decrees, judgments, injunctions, notices or binding
agreements issued, promulgated or entered into by or with any Governmental
Authority, relating in any way to the environment, preservation or reclamation
of natural resources, the management, Release or threatened Release of any
Hazardous Material.

     "ENVIRONMENTAL LIABILITY" shall mean any liability, contingent or otherwise
(including any liability for damages, costs of environmental investigation and
remediation, costs of administrative oversight, fines, natural resource damages,
penalties or indemnities), of the Borrower or any Subsidiary directly or
indirectly resulting from or based upon (a) any actual or alleged violation of
any Environmental Law, (b) the generation, use, handling, transportation,
storage, treatment or disposal of any Hazardous Materials, (c) any actual or
alleged exposure to any Hazardous Materials, (d) the Release or threatened
Release of any Hazardous Materials or (e) any contract, agreement or other
consensual arrangement pursuant to which liability is assumed or imposed with
respect to any of the foregoing.

     "ERISA" shall mean the Employee Retirement Income Security Act of 1974, as
amended from time to time, and any successor statute.

     "ERISA AFFILIATE" shall mean any trade or business (whether or not
incorporated), which, together with the Borrower, is treated as a single
employer under Section 414(b) or (c) of the Code or, solely for the purposes of
Section 302 of ERISA and Section 412 of the Code, is treated as a single
employer under Section 414 of the Code.

     "ERISA EVENT" shall mean (a) any "reportable event", as defined in Section
4043 of ERISA or the regulations issued thereunder with respect to a Plan (other
than an event for which the 30-day notice period is waived); (b) the existence
with respect to any Plan of an "accumulated funding deficiency" (as defined in
Section 412 of the Code or Section 302 of ERISA), whether or not waived; (c) the
filing pursuant to Section 412(d) of the Code or Section 303(d) of ERISA of an
application for a waiver of the minimum funding standard with respect to any
Plan; (d) the incurrence by the Borrower or any of its ERISA Affiliates of any
liability under Title IV of ERISA with respect to the termination of any Plan;
(e) the receipt by the Borrower or any ERISA Affiliate from the PBGC or a plan
administrator appointed by the PBGC of any notice relating to an intention to
terminate any Plan or Plans or to appoint a trustee to administer any Plan; (f)
the incurrence by the Borrower or any of its ERISA Affiliates of any liability
with respect to the withdrawal or partial withdrawal from any Plan or
Multiemployer Plan; or (g) the receipt by the Borrower or any ERISA Affiliate of
any notice, or the receipt by any

                                        6

<PAGE>

Multiemployer Plan from the Borrower or any ERISA Affiliate of any notice,
concerning the imposition of Withdrawal Liability or a determination that a
Multiemployer Plan is, or is expected to be, insolvent or in reorganization,
within the meaning of Title IV of ERISA.

     "EURODOLLAR" when used in reference to any Loan or Borrowing, refers to
whether such Loan, or the Loans comprising such Borrowing, bears interest at a
rate determined by reference to the Adjusted LIBO Rate.

     "EURODOLLAR RESERVE PERCENTAGE" shall mean the aggregate of the maximum
reserve percentages (including, without limitation, any emergency, supplemental,
special or other marginal reserves) expressed as a decimal (rounded upwards to
the next 1/100th of 1%) in effect on any day to which the Administrative Agent
is subject with respect to the Adjusted LIBO Rate pursuant to regulations issued
by the Board of Governors of the Federal Reserve System (or any Governmental
Authority succeeding to any of its principal functions) with respect to
eurocurrency funding (currently referred to as "eurocurrency liabilities" under
Regulation D). Eurodollar Loans shall be deemed to constitute eurocurrency
funding and to be subject to such reserve requirements without benefit of or
credit for proration, exemptions or offsets that may be available from time to
time to any Lender under Regulation D. The Eurodollar Reserve Percentage shall
be adjusted automatically on and as of the effective date of any change in any
reserve percentage.

     "EVENT OF DEFAULT" shall have the meaning provided in Article VIII.

     "EXCLUDED TAXES" shall mean with respect to the Administrative Agent, any
Lender, the Issuing Bank or any other recipient of any payment to be made by or
on account of any obligation of the Borrower hereunder, (a) income or franchise
taxes imposed on (or measured by) its net income by the United States of
America, or by the jurisdiction under the laws of which such recipient is
organized or in which its principal office is located or, in the case of any
Lender, in which its applicable lending office is located, (b) any branch
profits taxes imposed by the United States of America or any similar tax imposed
by any other jurisdiction in which the Borrower is located and (c) in the case
of a Foreign Lender (other than an assignee pursuant to a request by the
Borrower under Section 2.23, any withholding tax that is imposed on amounts
payable to such Foreign Lender at the time such Foreign Lender becomes a party
to this Agreement (or designates a new lending office) or is attributable to
such Foreign Lender's failure to comply with Section 2.21(e), except to the
extent that such Foreign Lender (or its assignor, if any) was entitled, at the
time of designation of a new lending office (or assignment), to receive
additional amounts from the Borrower with respect to such withholding tax
pursuant to Section 2.21(a).

     "EXPENSE RATIO" shall mean for an Insurance Company, the ratio (expressed
as a percentage) of Underwriting Expenses (less Fee Income/Finance Service
Charges Not Included in Premiums and ceding commissions from reinsurers) to Net
Premiums Earned for such period, determined in accordance with GAAP.

     "FEDERAL FUNDS RATE" shall mean, for any day, the rate per annum (rounded
upwards, if necessary, to the next 1/100th of 1%) equal to the weighted average
of the rates on overnight Federal funds transactions with member banks of the
Federal Reserve System arranged by

                                        7

<PAGE>

Federal funds brokers, as published by the Federal Reserve Bank of New York on
the next succeeding Business Day or if such rate is not so published for any
Business Day, the Federal Funds Rate for such day shall be the average rounded
upwards, if necessary, to the next 1/100th of 1% of the quotations for such day
on such transactions received by the Administrative Agent from three Federal
funds brokers of recognized standing selected by the Administrative Agent.

     "FEE INCOME/FINANCE AND SERVICE CHARGES NOT INCLUDED IN PREMIUMS" shall
have the meaning ascribed to such term in the Statutory Statements of an
Insurance Company (including motor club fees received from Affiliates),
determined in accordance with GAAP for such period.

     "FIXED CHARGE COVERAGE RATIO" shall mean, for any period of four
consecutive fiscal quarters of the Borrower, the ratio of (a) Consolidated
EBITDAR for such period to (b) the actual amount paid by the Borrower and its
Subsidiaries in cash during such period on account of Consolidated Fixed Charges
for such period.

     "FOREIGN LENDER" shall mean any Lender that is organized under the laws of
a jurisdiction other than that of the Borrower. For purposes of this definition,
the United States of America or any State thereof or the District of Columbia
shall constitute one jurisdiction.

     "GAAP" shall mean generally accepted accounting principles in the United
States applied on a consistent basis and subject to the terms of Section 1.3.

     "GOVERNMENTAL AUTHORITY" shall mean the government of the United States of
America, any other nation or any political subdivision thereof, whether state or
local, and any agency, authority, instrumentality, regulatory body, court,
central bank or other entity exercising executive, legislative, judicial,
taxing, regulatory or administrative powers or functions of or pertaining to
government.

     "GUARANTEE" of or by any Person (the "GUARANTOR") shall mean any
obligation, contingent or otherwise, of the guarantor guaranteeing or having the
economic effect of guaranteeing any Indebtedness or other obligation of any
other Person (the "PRIMARY OBLIGOR") in any manner, whether directly or
indirectly and including any obligation, direct or indirect, of the guarantor
(a) to purchase or pay (or advance or supply funds for the purchase or payment
of) such Indebtedness or other obligation or to purchase (or to advance or
supply funds for the purchase of) any security for the payment thereof, (b) to
purchase or lease property, securities or services for the purpose of assuring
the owner of such Indebtedness or other obligation of the payment thereof, (c)
to maintain working capital, equity capital or any other financial statement
condition or liquidity of the primary obligor so as to enable the primary
obligor to pay such Indebtedness or other obligation or (d) as an account party
in respect of any Letter of Credit or letter of guaranty issued in support of
such Indebtedness or obligation; provided, that the term "Guarantee" shall not
include endorsements for collection or deposits in the ordinary course of
business. The amount of any Guarantee shall be deemed to be an amount equal to
the stated or determinable amount of the primary obligation in respect of which
Guarantee is made or, if not so stated or determinable, the maximum reasonably
anticipated liability in respect thereof (assuming such Person is required to
perform thereunder) as determined by such Person in good faith. The term
"Guarantee" used as a verb has a corresponding meaning.

                                        8

<PAGE>

     "HAZARDOUS MATERIALS" means all explosive or radioactive substances or
wastes and all hazardous or toxic substances, wastes or other pollutants,
including petroleum or petroleum distillates, asbestos or asbestos containing
materials, polychlorinated biphenyls, radon gas, infectious or medical wastes
and all other substances or wastes of any nature regulated pursuant to any
Environmental Law.

     "HEDGING AGREEMENTS" shall mean interest rate swap, cap or collar
agreements, interest rate future or option contracts, currency swap agreements,
currency future or option contracts, commodity agreements and other similar
agreements or arrangements designed to protect against fluctuations in interest
rates, currency values or commodity values.

     "INDEBTEDNESS" of any Person shall mean, without duplication (i) all
obligations of such Person for borrowed money, (ii) all obligations of such
Person evidenced by bonds, debentures, notes or other similar instruments, (iii)
all obligations of such Person in respect of the deferred purchase price of
property or services (other than trade payables incurred in the ordinary course
of business; provided, that solely for purposes of Section 8.1(f), trade
payables overdue by more than 180 days shall be included in this definition
except to the extent that any of such trade payables are being disputed in good
faith and by appropriate measures), (iv) all obligations of such Person under
any conditional sale or other title retention agreement(s) relating to property
acquired by such Person, (v) all Capital Lease Obligations of such Person, (vi)
all obligations, contingent or otherwise, of such Person in respect of Letters
of Credit, acceptances or similar extensions of credit, (vii) all Guarantees of
such Person of the type of Indebtedness described in clauses (i) through (vi)
above, (viii) all Indebtedness of a third party secured by any Lien on property
owned by such Person, whether or not such Indebtedness has been assumed by such
Person, (ix) all obligations of such Person, contingent or otherwise, to
purchase, redeem, retire or otherwise acquire for value any common or preferred
stock of such Person, excluding such obligations to purchase, redeem, retire or
acquire which by their terms are not effective until after the Maturity Date,
(x) Off-Balance Sheet Liabilities and (xi) obligations under Hedging Agreements.
The Indebtedness of any Person shall include the Indebtedness of any partnership
or joint venture in which such Person is a general partner or a joint venturer,
except to the extent that the terms of such Indebtedness provide that such
Person is not liable therefor. Indebtedness shall not include any obligations
relating to overdraft protection.

     "INDEMNIFIED TAXES" shall mean Taxes other than Excluded Taxes.

     "INDEMNITY AND CONTRIBUTION AGREEMENT" shall mean the Indemnity,
Subrogation and Contribution Agreement, substantially in the form of Exhibit F,
among the Borrower, the Subsidiary Loan Parties and the Administrative Agent.

     "INSURANCE COMPANY" shall mean any Subsidiary which is engaged in the
insurance business other than exclusively as an agency. As of the Closing Date,
only First Acceptance Insurance Company, Inc. and Village Auto Insurance
Company, Inc. constitute Insurance Companies.

     "INTEREST PERIOD" shall mean (i) with respect to any Eurodollar Borrowing,
a period of one, two, three or six months and (ii) with respect to a Swingline
Loan, a period of such duration,

                                        9

<PAGE>

as the Borrower may request and the Swingline Lender may agree in accordance
with Section 2.5; provided, that:

          (i) the initial Interest Period for such Borrowing shall commence on
     the date of such Borrowing (including the date of any conversion from a
     Borrowing of another Type) and each Interest Period occurring thereafter in
     respect of such Borrowing shall commence on the day on which the next
     preceding Interest Period expires;

          (ii) if any Interest Period would otherwise end on a day other than a
     Business Day, such Interest Period shall be extended to the next succeeding
     Business Day, unless, in the case of a Eurodollar Borrowing, such Business
     Day falls in another calendar month, in which case such Interest Period
     would end on the next preceding Business Day;

          (iii) any Interest Period in respect of a Eurodollar Borrowing which
     begins on the last Business Day of a calendar month or on a day for which
     there is no numerically corresponding day in the calendar month at the end
     of such Interest Period shall end on the last Business Day of such calendar
     month;

          (iv) each principal installment of the Term Loans shall have an
     Interest Period ending on each installment payment date and the remaining
     principal balance (if any) of the Term Loans shall have an Interest Period
     determined as set forth above; and

          (v) no Interest Period may extend beyond the Commitment Termination
     Date, the Maturity Date or the Swingline Termination Date, as the case may
     be.

     "ISSUING BANK" shall mean SunTrust Bank in its capacity as an issuer of
Letters of Credit pursuant to Section 2.24.

     "LC COMMITMENT" shall mean that portion of the Aggregate Revolving
Commitments that may be used by the Borrower for the issuance of Letters of
Credit in an aggregate face amount not to exceed $5,000,000.

     "LC DISBURSEMENT" shall mean a payment made by the Issuing Bank pursuant to
a Letter of Credit.

     "LC DOCUMENTS" shall mean the Letters of Credit and all applications,
agreements and instruments relating to the Letters of Credit.

     "LC EXPOSURE" shall mean, at any time, the sum of (i) the aggregate undrawn
amount of all outstanding Letters of Credit at such time, plus (ii) the
aggregate amount of all LC Disbursements that have not been reimbursed by or on
behalf of the Borrower at such time. The LC Exposure of any Lender shall be its
Pro Rata Share of the total LC Exposure at such time.

     "LENDERS" shall have the meaning assigned to such term in the opening
paragraph of this Agreement and shall include, where appropriate, the Swingline
Lender.

                                       10

<PAGE>

     "LETTER(S) OF CREDIT" shall mean any Letter of Credit issued pursuant to
Section 2.24 by the Issuing Bank for the account of the Borrower pursuant to the
LC Commitment.

     "LIBOR" shall mean, for any applicable Interest Period with respect to any
Eurodollar Loan, the rate per annum for deposits in Dollars for a period equal
to such Interest Period appearing on the display designated as Page 3750 on the
Dow Jones Markets Service (or such other page on that service or such other
service designated by the British Banker's Association for the display of such
Association's Interest Settlement Rates for Dollar deposits) as of 11:00 a.m.
(London, England time) on the day that is two Business Days prior to the first
day of the Interest Period or if such Page 3750 is unavailable for any reason at
such time, the rate which appears on the Reuters Screen ISDA Page as of such
date and such time; provided, that if the Administrative Agent determines that
the relevant foregoing sources are unavailable for the relevant Interest Period,
LIBOR shall mean the rate of interest determined by the Administrative Agent to
be the average (rounded upward, if necessary, to the nearest 1/100th of 1%) of
the rates per annum at which deposits in Dollars are offered to the
Administrative Agent two (2) Business Days preceding the first day of such
Interest Period by leading banks in the London interbank market as of 10:00 a.
m. for delivery on the first day of such Interest Period, for the number of days
comprised therein and in an amount comparable to the amount of the Eurodollar
Loan of the Administrative Agent.

     "LIEN" shall mean any mortgage, pledge, security interest, lien (statutory
or otherwise), charge, encumbrance, hypothecation, assignment, deposit
arrangement, or other arrangement having the practical effect of the foregoing
or any other security agreement of any kind or nature whatsoever (including any
conditional sale or other title retention agreement and any capital lease having
the same economic effect as any of the foregoing).

     "LICENSE" means any license, certificate of authority, permit or other
authorization which is required to be obtained by an Insurance Company from a
Governmental Authority in connection with the operation, ownership or
transaction of its insurance operations and activities.

     "LOAN DOCUMENTS" shall mean, collectively, this Agreement, the Notes, the
Security Documents, the LC Documents, all Notices of Borrowing, the Subsidiary
Guarantee Agreement, the Indemnity and Contribution Agreement, and any and all
other instruments, agreements, documents and writings executed in connection
with any of the foregoing; provided that Loan Documents shall not include any
documents or agreements related to cash management arrangements or permitted
Hedging Agreements.

     "LOAN PARTIES" shall mean the Borrower and the Subsidiary Loan Parties.

     "LOANS" shall mean all Revolving Loans, Swingline Loans and Term Loans in
the aggregate or any of them, as the context shall require.

     "LOSS ADJUSTMENT EXPENSES" shall have the meaning ascribed to such term in
the Statutory Statements of an Insurance Company, determined in accordance with
SAP for such period.

                                       11

<PAGE>

     "LOSS RATIO" shall mean for an Insurance Company, the ratio (expressed as a
percentage) of Losses and Loss Adjustment Expenses incurred to Net Premiums
Earned for such period, determined in accordance with SAP.

     "LOSSES" shall have the meaning ascribed to such term in the Statutory
Statements of an Insurance Company, determined in accordance with SAP for such
period.

     "MATERIAL ADVERSE EFFECT" shall mean, with respect to any event, act,
condition or occurrence of whatever nature (including any adverse determination
in any litigation, arbitration, or governmental investigation or proceeding),
whether singly or in conjunction with any other related event or events, act or
acts, condition or conditions, occurrence or occurrences, a material adverse
change in, or a material adverse effect on, (i) the business, results of
operations, financial condition, assets or liabilities of the Borrower and its
Subsidiaries taken as a whole, (ii) the ability of the Loan Parties to perform
their respective obligations under any material Loan Documents, (iii) the rights
and remedies of the Administrative Agent, the Issuing Bank and the Lenders under
any material Loan Documents or (iv) the legality, validity or enforceability of
any material Loan Documents.

     "MATERIAL INDEBTEDNESS" shall mean Indebtedness (other than the Loans and
Letters of Credit) or obligations in respect of one or more Hedging Agreements,
of any one or more of the Borrower and the Subsidiaries in an aggregate
principal amount exceeding $1,000,000. For purposes of determining Material
Indebtedness, the "principal amount" of the obligations of the Borrower or any
Subsidiary in respect to any Hedging Agreement at any time shall be the maximum
aggregate amount (giving effect to any netting agreements) that the Borrower or
such Subsidiary would be required to pay if such Hedging Agreement were
terminated at such time.

     "MATURITY DATE" shall mean, with respect to the Term Loans, the earlier of
(i) June 30, 2010 or (ii) the date on which the principal amount of all
outstanding Term Loans have been declared or automatically have become due and
payable (whether by acceleration or otherwise).

     "MOODY'S" shall mean Moody's Investors Service, Inc.

     "MULTIEMPLOYER PLAN" shall have the meaning set forth in Section 4001(a)(3)
of ERISA.

     "NAIC" means the National Association of Insurance Commissioners or any
successor thereto, or in lieu thereof, any other association, agency or other
organization performing advisory, coordination or other like functions among
insurance departments, insurance commissions and similar Governmental
Authorities of the various states of the United States of America toward the
promotion of uniformity in the practices of such Governmental Authorities.

     "NET PREMIUMS EARNED" shall have the meaning ascribed to such term in the
Statutory Statements of an Insurance Company, determined in accordance with SAP
for such period.

     "NET PREMIUMS WRITTEN" shall have the meaning ascribed to such term in the
Statutory Statements of an Insurance Company, determined in accordance with SAP
for such period.

     "NOTES" shall mean, collectively, the Revolving Credit Notes, the Swingline
Note and the Term Notes.

                                       12

<PAGE>

     "NOTICES OF BORROWING" shall mean, collectively, the Notices of Revolving
Borrowing and the Notices of Swingline Borrowing.

     "NOTICE OF CONVERSION/CONTINUATION" shall mean the notice given by the
Borrower to the Administrative Agent in respect of the conversion or
continuation of an outstanding Borrowing as provided in Section 2.9(b) hereof.

     "NOTICE OF REVOLVING BORROWING" shall have the meaning as set forth in
Section 2.3.

     "NOTICE OF SWINGLINE BORROWING" shall have the meaning as set forth in
Section 2.5.

     "OBLIGATIONS" shall mean all amounts owing by the Borrower to the
Administrative Agent, the Issuing Bank or any Lender (including the Swingline
Lender) pursuant to or in connection with this Agreement or any other Loan
Document, including without limitation, all principal, interest (including any
interest accruing after the filing of any petition in bankruptcy or the
commencement of any insolvency, reorganization or like proceeding relating to
the Borrower, whether or not a claim for post-filing or post-petition interest
is allowed in such proceeding), all reimbursement obligations, fees, expenses,
indemnification and reimbursement payments, costs and expenses (including all
fees and expenses of counsel to the Administrative Agent and any Lender
(including the Swingline Lender) incurred pursuant to this Agreement or any
other Loan Document), whether direct or indirect, absolute or contingent,
liquidated or unliquidated, now existing or hereafter arising hereunder or
thereunder, together with all renewals, extensions, modifications or
refinancings thereof; provided that Obligations shall not include obligations
relating to separate cash management arrangements or permitted Hedging
Agreements, except for the purpose of determining which obligations of the
Borrower and its Subsidiaries are secured by Liens granted in any Security
Documents.

     "OFF-BALANCE SHEET LIABILITIES" of any Person shall mean (i) any repurchase
obligation or liability of such Person with respect to accounts or notes
receivable sold by such Person, (ii) any liability of such Person under any sale
and leaseback transactions which do not create a liability on the balance sheet
of such Person, (iii) any liability of such Person under any so-called
"synthetic" lease transaction or (iv) any obligation arising with respect to any
other transaction which is the functional equivalent of or takes the place of
borrowing but which does not constitute a liability on the balance sheet of such
Person.

     "OTHER TAXES" shall mean any and all present or future stamp or documentary
taxes or any other excise or property taxes, charges or similar levies arising
from any payment made hereunder or from the execution, delivery or enforcement
of, or otherwise with respect to, this Agreement or any other Loan Document.

     "PARTICIPANT" shall have the meaning set forth in Section 10.4(c).

     "PAYMENT OFFICE" shall mean the office of the Administrative Agent located
at 25 Park Place, N.E., Atlanta, Georgia 30303, or such other location as to
which the Administrative Agent shall have given written notice to the Borrower
and the other Lenders.

     "PBGC" shall mean the Pension Benefit Guaranty Corporation referred to and
defined in ERISA, and any successor entity performing similar functions.

                                       13

<PAGE>

     "PERMITTED ACQUISITIONS" shall mean any acquisitions or acquisitions for
which cash proceeds paid by a Borrower or a Subsidiary do not exceed $3,000,000
for the period commencing after the Closing Date and ending twenty-four (24)
months thereafter and $6,000,000 in the aggregate during the term hereof,
excluding the Acquisition.

     "PERMITTED ENCUMBRANCES" shall mean

          (i) Liens imposed by law for taxes not yet due or which are being
     contested in good faith by appropriate proceedings and with respect to
     which adequate reserves are being maintained in accordance with GAAP;

          (ii) statutory Liens (including consents which incorporate or
     acknowledge such statutory Liens) of landlords and Liens of carriers,
     warehousemen, mechanics, materialmen and other Liens imposed by law created
     in the ordinary course of business for amounts not yet due or which are
     being contested in good faith by appropriate proceedings and with respect
     to which adequate reserves are being maintained in accordance with GAAP;

          (iii) pledges and deposits made in the ordinary course of business in
     compliance with workers' compensation, unemployment insurance and other
     social security laws or regulations;

          (iv) deposits to secure the performance of bids, trade contracts,
     leases, statutory obligations, surety and appeal bonds, performance bonds
     and other obligations of a like nature, in each case in the ordinary course
     of business;

          (v) judgment and attachment liens not giving rise to an Event of
     Default or Liens created by or existing from any litigation or legal
     proceeding that are currently being contested in good faith by appropriate
     proceedings and with respect to which adequate reserves are being
     maintained in accordance with GAAP; and

          (vi) easements, zoning restrictions, rights-of-way and similar
     encumbrances on real property imposed by law or arising in the ordinary
     course of business that do not secure any monetary obligations and do not
     materially detract from the value of the affected property or materially
     interfere with the ordinary conduct of business of the Borrower and its
     Subsidiaries taken as a whole;

provided, that the term "Permitted Encumbrances" shall not include any Lien
securing any Indebtedness.

     "PERMITTED INVESTMENTS" shall mean:

          (i) direct obligations of, or obligations the principal of and
     interest on which are unconditionally guaranteed by, the United States (or
     by any agency thereof to the extent such obligations are backed by the full
     faith and credit of the United States), in each case maturing within one
     year from the date of acquisition thereof;

                                       14

<PAGE>

          (ii) commercial paper having one of the two highest rating, at the
     time of acquisition thereof, of S&P or Moody's and in either case maturing
     within one year from the date of acquisition thereof;

          (iii) certificates of deposit, bankers' acceptances and time deposits
     maturing within 180 days of the date of acquisition thereof issued or
     guaranteed by or placed with, and money market deposit accounts issued or
     offered by, any domestic office of any commercial bank organized under the
     laws of the United States or any state thereof which has a combined capital
     and surplus and undivided profits of not less than $500,000,000;

          (iv) fully collateralized repurchase agreements with a term of not
     more than 30 days for securities described in clause (i) above and entered
     into with a financial institution satisfying the criteria described in
     clause (iii) above;

          (v) mutual funds investing solely in any one or more of the Permitted
     Investments described in clauses (i) through (iv) above; and

          (vi) investments consistent with the investment policies of Insurance
     Companies permitted by applicable insurance regulations.

     "PERSON" shall mean any individual, partnership, firm, corporation,
association, joint venture, limited liability company, trust or other entity, or
any Governmental Authority.

     "PLAN" means any employee pension benefit plan (other than a Multiemployer
Plan) subject to the provisions of Title IV of ERISA or Section 412 of the Code
or Section 302 of ERISA, and in respect of which the Borrower or any ERISA
Affiliate is (or, if such plan were terminated, would under Section 4069 of
ERISA be deemed to be) an "employer" as defined in Section 3(5) of ERISA.

     "PRO RATA SHARE" shall mean, with respect to any Lender at any time, a
percentage, the numerator of which shall be the sum of such Lender's Revolving
Commitment and Term Loan Commitment and the denominator of which shall be the
sum of all Lenders' Revolving Commitments and Term Loan Commitments; or if the
Revolving Commitments have been terminated or expired or if the Loans have been
declared to be due and payable, a percentage, the numerator of which shall be
the sum of such Lender's Revolving Credit Exposure and outstanding Term Loans
and the denominator of which shall be the sum of the aggregate Revolving Credit
Exposure and the aggregate outstanding Term Loans of all Lenders.

     "PURCHASE AGREEMENT" shall mean that certain Asset Purchase Agreement dated
January 12, 2006, by and among Acceptance Insurance Agency of Illinois, Inc. as
purchaser, the Borrower, as parent of such purchaser, Insurance Plus Agency II,
Inc. and Yale International Insurance Agency, Inc., as sellers, and Constantine
Danos as the sole shareholder of such sellers.

     "REGULATION D" shall mean Regulation D of the Board of Governors of the
Federal Reserve System, as the same may be in effect from time to time, and any
successor regulations.

                                       15

<PAGE>

     "RELATED PARTIES" shall mean, with respect to any specified Person, such
Person's Affiliates and the respective directors, officers, employees and agents
of such Person and such Person's Affiliates.

     "RELEASE" means any release, spill, emission, leaking, dumping, injection,
pouring, deposit, disposal, discharge, dispersal, leaching or migration into the
environment (including ambient air, surface water, groundwater, land surface or
subsurface strata) or within any building, structure, facility or fixture.

     "REQUIRED LENDERS" shall mean, at any time, Lenders holding more than 50%
of the aggregate outstanding Revolving Credit Exposures and Term Loans at such
time or if the Lenders have no Revolving Credit Exposure or Term Loans
outstanding, then Lenders holding more than 50% of the Aggregate Revolving
Commitments.

     "RESPONSIBLE OFFICER" shall mean any of the president, the chief executive
officer, the chief operating officer, the chief financial officer, the treasurer
or a vice president of the Borrower or such other representative of the Borrower
as may be designated in writing by any one of the foregoing with the consent of
the Administrative Agent; and, with respect to the financial covenants only, the
chief financial officer or the treasurer of the Borrower.

     "RESTRICTED PAYMENT" shall have the meaning set forth in Section 7.5.

     "REVOLVING COMMITMENT" shall mean, with respect to each Lender, the
obligation of such Lender to make Revolving Loans to the Borrower and to
participate in Letters of Credit and Swingline Loans in an aggregate principal
amount not exceeding the amount set forth with respect to such Lender on the
signature pages to this Agreement, or in the case of a Person becoming a Lender
after the Closing Date, the amount of the assigned "Revolving Commitment" as
provided in the Assignment and Acceptance Agreement executed by such Person as
an assignee, as the same may be changed pursuant to terms hereof.

     "REVOLVING CREDIT EXPOSURE" shall mean, with respect to any Lender at any
time, the sum of the outstanding principal amount of such Lender's Revolving
Loans, such Lender's LC Exposure and such Lender's Swingline Exposure.

     "REVOLVING CREDIT NOTE" shall mean a promissory note of the Borrower
payable to the order of each Lender in the principal amount of such Lender's
Revolving Commitment, in substantially the form of Exhibit A.

     "REVOLVING LOAN" shall mean a loan made by a Lender (other than the
Swingline Lender) to the Borrower under its Revolving Commitment, which may
either be a Base Rate Loan or a Eurodollar Loan.

     "RISK-BASED CAPITAL RATIO" shall mean for an Insurance Company, the ratio
of Total Adjusted Capital to Authorized Control Level Risk-Based Capital,
determined in accordance with SAP for such period.

     "S&P" shall mean Standard & Poor's rating Services, a division of
McGraw-Hill Companies.

                                       16

<PAGE>

     "SECURITY DOCUMENTS" shall mean collectively the Borrower Security
Agreement, the Subsidiary Security Agreements, the Collateral Assignment of Life
Insurance, and any amendments thereto or restatements thereof.

     "STATUTORY ACCOUNTING PRINCIPLES" or "SAP" means with respect to any
Insurance Company, the statutory accounting practices prescribed or permitted by
the insurance commissioner (or other similar authority) from time to time in the
jurisdiction of incorporation of such Insurance Company for the preparation of
annual statements and other financial reports by insurance companies of the same
type as such Insurance Company provided, that if the Borrower notifies the
Administrative Agent that the Borrower wishes to amend any covenant in Article
VI to eliminate the effect of any change in SAP or the operation of such
covenant (or if the Administrative Agent notifies the Borrower that the Required
Lenders wish to amend Article VI for such purpose), then the Borrower's
compliance with such covenant shall be determined on the basis of SAP in effect
immediately before the relevant change in SAP became effective, until either
such notice is withdrawn or such covenant is amended in a manner satisfactory to
the Borrower and the Required Lenders.

     "STATUTORY STATEMENTS" means, for any Insurance Company, for each fiscal
year of such Insurance Company, the most recent annual statement, prepared in
accordance with Statutory Accounting Principles, required to be filed with the
appropriate Governmental Authority and, for each fiscal quarter of such
Insurance Company, the quarterly statement required to be filed with the
appropriate Governmental Authority, which quarterly statement shall be prepared
in accordance with Statutory Accounting Principles.

     "SUBSIDIARY" shall mean, with respect to any Person (the "PARENT"), any
corporation, partnership, joint venture, limited liability company, association
or other entity the accounts of which would be consolidated with those of the
parent in the parent's consolidated financial statements if such financial
statements were prepared in accordance with GAAP as of such date, as well as any
other corporation, partnership, joint venture, limited liability company,
association or other entity (i) of which securities or other ownership interests
representing more than 50% of the equity or more than 50% of the ordinary voting
power, or in the case of a partnership, more than 50% of the general partnership
interests are, as of such date, owned, Controlled or held, or (ii) that is, as
of such date, otherwise Controlled, by the parent or one or more subsidiaries of
the parent or by the parent and one or more subsidiaries of the parent. Unless
otherwise indicated, all references to "Subsidiary" hereunder shall mean a
Subsidiary of the Borrower.

     "SUBSIDIARY GUARANTEE AGREEMENT" shall mean the Subsidiary Guarantee
Agreement, substantially in the form of Exhibit E, executed by the Subsidiary
Loan Parties and the Administrative Agent for the benefit of the Lenders.

     "SUBSIDIARY LOAN PARTY" shall mean any Subsidiary of the Borrower, other
than an Insurance Company.

     "SUBSIDIARY SECURITY AGREEMENTS" shall mean individually and collectively
the respective Security Agreements each dated as of the Closing Date, executed
by the Administrative Agent and each of the Subsidiary Loan Parties, and any
additional security

                                       17

<PAGE>

agreements delivered by any Subsidiary formed or acquired after the Closing Date
pursuant to Section 5.10, and any amendments thereto or restatements thereof.

     "SURPLUS/SURPLUS AS REGARDS POLICYHOLDERS" shall have the meaning ascribed
to such terms in the Statutory Statements of an Insurance Company, determined in
accordance with SAP for such period.

     "SWINGLINE COMMITMENT" shall mean the commitment of the Swingline Lender to
make Swingline Loans in an aggregate principal amount at any time outstanding
not to exceed $500,000.

     "SWINGLINE EXPOSURE" shall mean, with respect to each Lender, the principal
amount of the Swingline Loans in which such Lender is legally obligated either
to make a Base Rate Loan or to purchase a participation in accordance with
Section 2.5, which shall equal such Lender's Pro Rata Share of all outstanding
Swingline Loans.

     "SWINGLINE LENDER" shall mean SunTrust Bank, or any other Lender that may
agree to make Swingline Loans hereunder.

     "SWINGLINE LOAN" shall mean a loan made to the Borrower by the Swingline
Lender under the Swingline Commitment.

     "SWINGLINE NOTE" shall mean the promissory note of the Borrower payable to
the order of the Swingline Lender in the principal amount of the Swingline
Commitment, substantially the form of Exhibit C.

     "SWINGLINE TERMINATION DATE" shall mean the date that is three (3) Business
Days prior to the Commitment Termination Date.

     "TAXES" shall mean any and all present or future taxes, levies, imposts,
duties, deductions, charges or withholdings imposed by any Governmental
Authority.

     "TERM LOAN" shall have the meaning set forth in Section 2.7.

     "TERM LOAN COMMITMENT" shall mean, with respect to each Lender, the
obligation of such Lender to make a Term Loan hereunder on the Closing Date, in
a principal amount not exceeding the amount set forth with respect to such
Lender on the signature pages to this Agreement. The aggregate principal amount
of all Lenders' Term Loan Commitments is $25,000,000.

     "TOTAL ADJUSTED CAPITAL" shall have the meaning ascribed to such terms in
the Statutory Statements of an Insurance Company, determined in accordance with
SAP for such period.

     "TYPE", when used in reference to a Loan or Borrowing, refers to whether
the rate of interest on such Loan, or on the Loans comprising such Borrowing, is
determined by reference to the Adjusted LIBO Rate or the Base Rate.

                                       18

<PAGE>

     "UNDERWRITING EXPENSES" shall mean for an Insurance Company, its operating
expenses (as set forth in the Statutory Statements) reduced by Fee
Income/Finance and Service Charges Not Included in Premiums for such period,
determined in accordance with SAP.

     "WITHDRAWAL LIABILITY" shall mean liability to a Multiemployer Plan as a
result of a complete or partial withdrawal from such Multiemployer Plan, as such
terms are defined in Part I of Subtitle E of Title IV of ERISA.

     SECTION 1.2 Classifications of Loans and Borrowings. For purposes of this
Agreement, Loans may be classified and referred to by Class (e.g. a "Revolving
Loan" or "Term Loan") or by Type (e.g. a "Eurodollar Loan" or "Base Rate Loan")
or by Class and Type (e.g. "Revolving Eurodollar Loan"). Borrowings also may be
classified and referred to by Class (e.g. "Revolving Borrowing") or by Type
(e.g. "Eurodollar Borrowing") or by Class and Type (e.g. " Revolving Eurodollar
Borrowing").

     SECTION 1.3 Accounting Terms and Determination. Unless otherwise defined or
specified herein, all accounting terms used herein shall be interpreted, all
accounting determinations hereunder shall be made, and all financial statements
required to be delivered hereunder shall be prepared, in accordance with GAAP as
in effect from time to time, applied on a basis consistent (except for such
changes approved by the Borrower's independent public accountants) with the most
recent audited consolidated financial statement of the Borrower delivered
pursuant to Section 5.1(a); provided, that if the Borrower notifies the
Administrative Agent that the Borrower wishes to amend any covenant in Article
VI to eliminate the effect of any change in GAAP on the operation of such
covenant (or if the Administrative Agent notifies the Borrower that the Required
Lenders wish to amend Article VI for such purpose), then the Borrower's
compliance with such covenant shall be determined on the basis of GAAP in effect
immediately before the relevant change in GAAP became effective, until either
such notice is withdrawn or such covenant is amended in a manner satisfactory to
the Borrower and the Required Lenders.

     SECTION 1.4 Terms Generally. The definitions of terms herein shall apply
equally to the singular and plural forms of the terms defined. Whenever the
context may require, any pronoun shall include the corresponding masculine,
feminine and neuter forms. The words "include", "includes" and "including" shall
be deemed to be followed by the phrase "without limitation". The word "will"
shall be construed to have the same meaning and effect as the word "shall". In
the computation of periods of time from a specified date to a later specified
date, the word "from" means "from and including" and the word "to" means "to but
excluding". Unless the context requires otherwise (i) any definition of or
reference to any agreement, instrument or other document herein shall be
construed as referring to such agreement, instrument or other document as it was
originally executed or as it may from time to time be amended, supplemented or
otherwise modified (subject to any restrictions on such amendments, supplements
or modifications set forth herein), (ii) any reference herein to any Person
shall be construed to include such Person's successors and permitted assigns,
(iii) the words "hereof", "herein" and "hereunder" and words of similar import
shall be construed to refer to this Agreement as a whole and not to any
particular provision hereof, (iv) all references to Articles, Sections, Exhibits
and Schedules shall be construed to refer to Articles, Sections, Exhibits and
Schedules to this

                                       19

<PAGE>

Agreement and (v) all references to a specific time shall be construed to refer
to Eastern standard or daylight savings time, as applicable, unless otherwise
indicated.

     This Agreement and the other Loan Documents are the result of negotiation
among, and have been reviewed by counsel to, among others, the Administrative
Agent and the Borrower and are the product of discussions and negotiations among
all parties. Accordingly, this Agreement and the other Loan Documents are not
intended to be construed against the Administrative Agent or any of the Lenders
on account of the Administrative Agent's or any Lender's preparation of such
documents.

                                   ARTICLE II

                       AMOUNT AND TERMS OF THE COMMITMENTS

     SECTION 2.1 General Description of Facilities. Subject to and upon the
terms and conditions herein set forth, (i) the Lenders hereby establish in favor
of the Borrower a revolving credit facility pursuant to which the Lenders
severally agree (to the extent of each Lender's Pro Rata Share and not to exceed
such Lender's Revolving Commitment) to make Revolving Loans to the Borrower in
accordance with Section 2.2, (ii) the Issuing Bank agrees to issue Letters of
Credit in accordance with Section 2.24, (iii) the Swingline Lender agrees to
make Swingline Loans in accordance with Section 2.4, (iv) each Lender agrees to
purchase a participation interest in the Letters of Credit and the Swingline
Loans pursuant to the terms and conditions hereof; provided, that in no event
shall the aggregate principal amount of all outstanding Revolving Loans,
Swingline Loans and outstanding LC Obligations exceed at any time the Aggregate
Revolving Commitments from time to time in effect; and (v) each Lender severally
agrees to make a Term Loan to the Borrower in a principal amount not exceeding
such Lender's Term Loan Commitment on the Closing Date.

     SECTION 2.2 Revolving Loans. Subject to the terms and conditions set forth
herein, each Lender severally agrees to make Revolving Loans to the Borrower,
from time to time during the Availability Period, in an aggregate principal
amount outstanding at any time that will not result in (a) such Lender's
Revolving Credit Exposure exceeding such Lender's Revolving Commitment or (b)
the sum of the aggregate Revolving Credit Exposures of all Lenders exceeding the
Aggregate Revolving Commitments. During the Availability Period, the Borrower
shall be entitled to borrow, prepay and reborrow Revolving Loans in accordance
with the terms and conditions of this Agreement; provided, that the Borrower may
not borrow or reborrow should there exist a Default or Event of Default.

     SECTION 2.3 Procedure for Revolving Borrowings.

     The Borrower shall give the Administrative Agent written notice (or
telephonic notice promptly confirmed in writing) of each Revolving Borrowing
substantially in the form of Exhibit 2.3 attached hereto (a "NOTICE OF REVOLVING
BORROWING") (x) prior to 11:00 a.m. one (1) Business Day prior to the requested
date of each Base Rate Borrowing and (y) prior to 11:00 a.m. three (3) Business
Days prior to the requested date of each Eurodollar Borrowing. Each Notice of
Revolving Borrowing shall be irrevocable and shall specify: (i) the aggregate
principal amount of such Borrowing, (ii) the date of such Borrowing (which shall
be a Business Day), (iii)

                                       20

<PAGE>

the Type of such Revolving Loan comprising such Borrowing and (iv) in the case
of a Eurodollar Borrowing, the duration of the initial Interest Period
applicable thereto (subject to the provisions of the definition of Interest
Period). Each Revolving Borrowing shall consist entirely of Base Rate Loans or
Eurodollar Loans, as the Borrower may request. The aggregate principal amount of
each Eurodollar Borrowing shall be not less than $1,000,000 or a larger multiple
of $500,000, and the aggregate principal amount of each Base Rate Borrowing
shall not be less than $500,000 or a larger multiple of $250,000; provided, that
Base Rate Loans made pursuant to Section 2.5 or Section 2.24(d) may be made in
lesser amounts as provided therein. At no time shall the total number of
Eurodollar Borrowings outstanding at any time exceed five. Promptly following
the receipt of a Notice of Revolving Borrowing in accordance herewith, the
Administrative Agent shall advise each Lender of the details thereof and the
amount of such Lender's Revolving Loan to be made as part of the requested
Revolving Borrowing.

     SECTION 2.4 Swingline Commitment. Subject to the terms and conditions set
forth herein, the Swingline Lender agrees to make Swingline Loans to the
Borrower, from time to time from the Closing Date to the Swingline Termination
Date, in an aggregate principal amount outstanding at any time not to exceed the
lesser of (i) the Swingline Commitment then in effect and (ii) the difference
between the Aggregate Revolving Commitments and the aggregate Revolving Credit
Exposures of all Lenders; provided, that the Swingline Lender shall not be
required to make a Swingline Loan to refinance an outstanding Swingline Loan.
The Borrower shall be entitled to borrow, repay and reborrow Swingline Loans in
accordance with the terms and conditions of this Agreement.

     SECTION 2.5 Procedure for Swingline Borrowing; Etc.

          (a) The Borrower shall give the Administrative Agent written notice
     (or telephonic notice promptly confirmed in writing) of each Swingline
     Borrowing ("NOTICE OF SWINGLINE BORROWING") prior to 1:00 p.m. on the
     requested date of each Swingline Borrowing. Each Notice of Swingline
     Borrowing shall be irrevocable and shall specify: (i) the principal amount
     of such Swingline Loan, (ii) the date of such Swingline Loan (which shall
     be a Business Day) and (iii) the account of the Borrower to which the
     proceeds of such Swingline Loan should be credited. The Administrative
     Agent will promptly advise the Swingline Lender of each Notice of Swingline
     Borrowing. Each Swingline Loan shall accrue interest at the Base Rate or
     any other interest rate as agreed between the Borrower and the Swingline
     Lender and shall have an Interest Period (subject to the definition
     thereof) as agreed between the Borrower and the Swingline Lender. The
     aggregate principal amount of each Swingline Loan shall be not less than
     $250,000 or a larger multiple of $50,000, or such other minimum amounts
     agreed to by the Swingline Lender and the Borrower. The Swingline Lender
     will make the proceeds of each Swingline Loan available to the Borrower in
     Dollars in immediately available funds at the account specified by the
     Borrower in the applicable Notice of Swingline Borrowing not later than
     3:00 p.m. on the requested date of such Swingline Loan. The Administrative
     Agent will notify the Lenders on a quarterly basis if any Swingline Loans
     occurred during such quarter.

          (b) The Swingline Lender, at any time and from time to time in its
     sole discretion, may, on behalf of the Borrower (which hereby irrevocably
     authorizes and

                                       21

<PAGE>

     directs the Swingline Lender to act on its behalf), give a Notice of
     Revolving Borrowing to the Administrative Agent requesting the Lenders
     (including the Swingline Lender) to make Base Rate Loans in an amount equal
     to the unpaid principal amount of any Swingline Loan. Each Lender will make
     the proceeds of its Base Rate Loan included in such Borrowing available to
     the Administrative Agent for the account of the Swingline Lender in
     accordance with Section 2.8, which will be used solely for the repayment of
     such Swingline Loan.

          (c) If for any reason a Base Rate Borrowing may not be (as determined
     in the sole discretion of the Administrative Agent), or is not, made in
     accordance with the foregoing provisions, then each Lender (other than the
     Swingline Lender) shall purchase an undivided participating interest in
     such Swingline Loan in an amount equal to its Pro Rata Share thereof on the
     date that such Base Rate Borrowing should have occurred. On the date of
     such required purchase, each Lender shall promptly transfer, in immediately
     available funds, the amount of its participating interest to the
     Administrative Agent for the account of the Swingline Lender. If such
     Swingline Loan bears interest at a rate other than the Base Rate, such
     Swingline Loan shall automatically become a Base Rate Loan on the effective
     date of any such participation and interest shall become payable on demand.

          (d) Each Lender's obligation to make a Base Rate Loan pursuant to
     Section 2.5(b) or to purchase the participating interests pursuant to
     Section 2.5(c) shall be absolute and unconditional and shall not be
     affected by any circumstance, including without limitation (i) any setoff,
     counterclaim, recoupment, defense or other right that such Lender or any
     other Person may have or claim against the Swingline Lender, the Borrower
     or any other Person for any reason whatsoever, (ii) the existence of a
     Default or an Event of Default or the termination of any Lender's Revolving
     Commitment, (iii) the existence (or alleged existence) of any event or
     condition which has had or could reasonably be expected to have a Material
     Adverse Effect, (iv) any breach of this Agreement or any other Loan
     Document by the Borrower, the Administrative Agent or any Lender or (v) any
     other circumstance, happening or event whatsoever, whether or not similar
     to any of the foregoing. If such amount is not in fact made available to
     the Swingline Lender by any Lender, the Swingline Lender shall be entitled
     to recover such amount on demand from such Lender, together with accrued
     interest thereon for each day from the date of demand thereof at the
     Federal Funds Rate. Until such time as such Lender makes its required
     payment, the Swingline Lender shall be deemed to continue to have
     outstanding Swingline Loans in the amount of the unpaid participation for
     all purposes of the Loan Documents. In addition, such Lender shall be
     deemed to have assigned any and all payments made of principal and interest
     on its Loans and any other amounts due to it hereunder, to the Swingline
     Lender to fund the amount of such Lender's participation interest in such
     Swingline Loans that such Lender failed to fund pursuant to this Section,
     until such amount has been purchased in full.

     SECTION 2.6 Intentionally Omitted.

     SECTION 2.7 Term Loan Commitments. Subject to the terms and conditions set
forth herein, each Lender severally agrees to make a single loan (each, a "TERM
LOAN") to the

                                       22

<PAGE>

Borrower on the Closing Date in a principal amount not to exceed the Term Loan
Commitment of such Lender; provided, that if for any reason the full amount of
such Lender's Term Loan Commitment is not fully drawn on the Closing Date, the
undrawn portion thereof shall automatically be canceled. The Term Loans may be,
from time to time, Base Rate Loans or Eurodollar Loans or a combination thereof;
provided, that on the Closing Date all Term Loans shall be Base Rate Loans. The
execution and delivery of this Agreement by the Borrower and the satisfaction of
all conditions precedent pursuant to Section 3.1 shall be deemed to constitute
the Borrower's request to borrow the Term Loans on the Closing Date.

     SECTION 2.8 Funding of Borrowings.

          (a) Each Lender will make available each Loan to be made by it
     hereunder on the proposed date thereof by wire transfer in immediately
     available funds by 11:00 a.m. to the Administrative Agent at the Payment
     Office; provided, that the Swingline Loans will be made as set forth in
     Section 2.5. The Administrative Agent will make such Loans available to the
     Borrower by promptly crediting the amounts that it receives, in like funds
     by the close of business on such proposed date, to an account maintained by
     the Borrower with the Administrative Agent or at the Borrower's option, by
     effecting a wire transfer of such amounts to an account designated by the
     Borrower to the Administrative Agent.

          (b) Unless the Administrative Agent shall have been notified by any
     Lender prior to 5 p.m. one (1) Business Day prior to the date of a
     Borrowing in which such Lender is participating that such Lender will not
     make available to the Administrative Agent such Lender's share of such
     Borrowing, the Administrative Agent may assume that such Lender has made
     such amount available to the Administrative Agent on such date, and the
     Administrative Agent, in reliance on such assumption, may make available to
     the Borrower on such date a corresponding amount. If such corresponding
     amount is not in fact made available to the Administrative Agent by such
     Lender on the date of such Borrowing, the Administrative Agent shall be
     entitled to recover such corresponding amount on demand from such Lender
     together with interest at the Federal Funds Rate for up to two (2) days and
     thereafter at the rate specified for such Borrowing. If such Lender does
     not pay such corresponding amount forthwith upon the Administrative Agent's
     demand therefor, the Administrative Agent shall promptly notify the
     Borrower, and the Borrower shall immediately pay such corresponding amount
     to the Administrative Agent together with interest at the rate specified
     for such Borrowing. Nothing in this subsection shall be deemed to relieve
     any Lender from its obligation to fund its Pro Rata Share of any Borrowing
     hereunder or to prejudice any rights which the Borrower may have against
     any Lender as a result of any default by such Lender hereunder.

          (c) All Revolving Borrowings shall be made by the Lenders on the basis
     of their respective Pro Rata Shares. No Lender shall be responsible for any
     default by any other Lender in its obligations hereunder, and each Lender
     shall be obligated to make its Loans provided to be made by it hereunder,
     regardless of the failure of any other Lender to make its Loans hereunder.

                                       23

<PAGE>

     SECTION 2.9 Interest Elections.

          (a) Each Borrowing initially shall be of the Type specified in the
     applicable Notice of Borrowing, and in the case of a Eurodollar Borrowing,
     shall have an initial Interest Period as specified in such Notice of
     Borrowing. Thereafter, the Borrower may elect to convert such Borrowing
     into a different Type or to continue such Borrowing, and in the case of a
     Eurodollar Borrowing, may elect Interest Periods therefor, all as provided
     in this Section. The Borrower may elect different options with respect to
     different portions of the affected Borrowing, in which case each such
     portion shall be allocated ratably among the Lenders holding Loans
     comprising such Borrowing, and the Loans comprising each such portion shall
     be considered a separate Borrowing. This Section shall not apply to
     Swingline Borrowings, which may not be converted or continued.

          (b) To make an election pursuant to this Section, the Borrower shall
     give the Administrative Agent prior written notice (or telephonic notice
     promptly confirmed in writing) of each Borrowing (a "NOTICE OF
     CONVERSION/CONTINUATION") that is to be converted or continued, as the case
     may be, (x) prior to 10:00 a.m. one (1) Business Day prior to the requested
     date of a conversion into a Base Rate Borrowing and (y) prior to 11:00 a.m.
     three (3) Business Days prior to a continuation of or conversion into a
     Eurodollar Borrowing. Each such Notice of Conversion/Continuation shall be
     irrevocable and shall specify (i) the Borrowing to which such Notice of
     Continuation/Conversion applies and if different options are being elected
     with respect to different portions thereof, the portions thereof that are
     to be allocated to each resulting Borrowing (in which case the information
     to be specified pursuant to clauses (iii) and (iv) shall be specified for
     each resulting Borrowing); (ii) the effective date of the election made
     pursuant to such Notice of Continuation/Conversion, which shall be a
     Business Day, (iii) whether the resulting Borrowing is to be a Base Rate
     Borrowing or a Eurodollar Borrowing; and (iv) if the resulting Borrowing is
     to be a Eurodollar Borrowing, the Interest Period applicable thereto after
     giving effect to such election, which shall be a period contemplated by the
     definition of "Interest Period". If any such Notice of
     Continuation/Conversion requests a Eurodollar Borrowing but does not
     specify an Interest Period, the Borrower shall be deemed to have selected
     an Interest Period of one month. The principal amount of any resulting
     Borrowing shall satisfy the minimum borrowing amount for Eurodollar
     Borrowings and Base Rate Borrowings set forth in Section 2.3.

          (c) If, on the expiration of any Interest Period in respect of any
     Eurodollar Borrowing, the Borrower shall have failed to deliver a Notice of
     Conversion/ Continuation, then, unless such Borrowing is repaid as provided
     herein, the Borrower shall be deemed to have elected to convert such
     Borrowing to a Base Rate Borrowing. No Borrowing may be converted into, or
     continued as, a Eurodollar Borrowing if an Event of Default exists, unless
     the Administrative Agent and each of the Lenders shall have otherwise
     consented in writing. No conversion of any Eurodollar Loans shall be
     permitted except on the last day of the Interest Period in respect thereof.

          (d) Upon receipt of any Notice of Conversion/Continuation, the
     Administrative Agent shall promptly notify each Lender of the details
     thereof and of such Lender's portion of each resulting Borrowing.

                                       24

<PAGE>

     SECTION 2.10 Optional Reduction and Termination of Commitments.

          (a) Unless previously terminated, all Revolving Commitments shall
     terminate on the Commitment Termination Date, except that the Swingline
     Commitment shall terminate on the Swingline Termination Date. The Term Loan
     Commitments shall terminate on the Closing Date upon the making of the Term
     Loans pursuant to Section 2.7.

          (b) Upon at least three (3) Business Days' prior written notice (or
     telephonic notice promptly confirmed in writing) to the Administrative
     Agent (which notice shall be irrevocable), the Borrower may reduce the
     Aggregate Revolving Commitments in part or terminate the Aggregate
     Revolving Commitments in whole; provided, that (i) any partial reduction
     shall apply to reduce proportionately and permanently the Revolving
     Commitment of each Lender, (ii) any partial reduction pursuant to this
     Section 2.10 shall be in an amount of at least $1,000,000 and any larger
     multiple of $100,000, and (iii) no such reduction shall be permitted which
     would reduce the Aggregate Revolving Commitments to an amount less than the
     outstanding Revolving Credit Exposures of all Lenders. Any such reduction
     in the Aggregate Revolving Commitments shall result in a proportionate
     reduction (rounded to the next lowest integral multiple of $100,000) in the
     Swingline Commitment and the LC Commitment.

     SECTION 2.11 Repayment of Loans.

          (a) The outstanding principal amount of all Revolving Loans shall be
     due and payable (together with accrued and unpaid interest thereon) on the
     Commitment Termination Date.

          (b) The principal amount of each Swingline Borrowing shall be due and
     payable (together with accrued interest thereon) on the earlier of (i) the
     last day of the Interest Period applicable to such Borrowing and (ii) the
     Swingline Termination Date.

          (c) The Borrower unconditionally promises to pay to the Administrative
     Agent for the account of each Lender the then unpaid principal amount of
     the Term Loan of such Lender in installments payable on the dates set forth
     below, with each such installment being in the aggregate principal amount
     for all Lenders set forth opposite such date below (and on such other
     date(s) and in such other amounts as may be required from time to time
     pursuant to this Agreement):

<TABLE>
<CAPTION>
                        Aggregate
Installment Date     Principal Amount
----------------   -------------------
<S>                <C>
April 30, 2006          $1,388,000
July 31, 2006           $1,388,000
October 31, 2006        $1,388,000
January 31, 2007        $1,388,000
April 30, 2007          $1,388,000
July 31, 2007           $1,388,000
October 31, 2007        $1,388,000
</TABLE>

                                       25

<PAGE>

<TABLE>
<S>                     <C>
January 31, 2008        $1,388,000
April 30, 2008          $1,388,000
July 31, 2008           $1,388,000
October 31, 2008        $1,388,000
January 31, 2009        $1,388,000
April 30, 2009          $1,388,000
July 31, 2009           $1,388,000
October 31, 2009        $1,388,000
January 31, 2010        $1,388,000
April 30, 2010          $1,388,000
</TABLE>

provided, that, to the extent not previously paid, the aggregate unpaid
principal balance of the Term Loans shall be due and payable on the Maturity
Date.

     SECTION 2.12 Evidence of Indebtedness.

          (a) Each Lender shall maintain in accordance with its usual practice
     appropriate records evidencing the indebtedness of the Borrower to such
     Lender resulting from each Loan made by such Lender from time to time,
     including the amounts of principal and interest payable thereon and paid to
     such Lender from time to time under this Agreement. The Administrative
     Agent shall maintain appropriate records in which shall be recorded (i) the
     Revolving Commitment and Term Loan Commitment of each Lender, (ii) the
     amount of each Loan made hereunder by each Lender, the Class and Type
     thereof and the Interest Period applicable thereto, (iii) the date of each
     continuation thereof pursuant to Section 2.9, (iv) the date of each
     conversion of all or a portion thereof to another Type pursuant to Section
     2.9, (v) the date and amount of any principal or interest due and payable
     or to become due and payable from the Borrower to each Lender hereunder in
     respect of such Loans and (vi) both the date and amount of any sum received
     by the Administrative Agent hereunder from the Borrower in respect of the
     Loans and each Lender's Pro Rata Share thereof. The entries made in such
     records shall be prima facie evidence of the existence and amounts of the
     obligations of the Borrower therein recorded absent manifest error;
     provided, that the failure or delay of any Lender or the Administrative
     Agent in maintaining or making entries into any such record or any error
     therein shall not in any manner affect the obligation of the Borrower to
     repay the Loans (both principal and unpaid accrued interest) of such Lender
     in accordance with the terms of this Agreement.

          (b) At the request of any Lender (including the Swingline Lender) at
     any time, the Borrower agrees that it will execute and deliver to such
     Lender a Revolving Credit Note, and a Term Loan Note and, in the case of
     the Swingline Lender only, a Swingline Note, payable to the order of such
     Lender.

                                       26

<PAGE>

     SECTION 2.13 Optional Prepayments. The Borrower shall have the right at any
time and from time to time to prepay any Borrowing, in whole or in part, without
premium or penalty, by giving irrevocable written notice (or telephonic notice
promptly confirmed in writing) to the Administrative Agent no later than (i) in
the case of prepayment of any Eurodollar Borrowing, 11:00 a.m. not less than
three (3) Business Days prior to any such prepayment, (ii) in the case of any
prepayment of any Base Rate Borrowing, not less than one Business Day prior to
the date of such prepayment, and (iii) in the case of Swingline Borrowings,
prior to 11:00 a. m. on the date of such prepayment. Each such notice shall be
irrevocable and shall specify the proposed date of such prepayment and the
principal amount of each Borrowing or portion thereof to be prepaid. Upon
receipt of any such notice, the Administrative Agent shall promptly notify each
affected Lender of the contents thereof and of such Lender's Pro Rata Share of
any such prepayment. If such notice is given, the aggregate amount specified in
such notice shall be due and payable on the date designated in such notice,
together with accrued interest to such date on the amount so prepaid; provided,
that if a Eurodollar Borrowing is prepaid on a date other than the last day of
an Interest Period applicable thereto, the Borrower shall also pay all amounts
required pursuant to Section 2.20. Each partial prepayment of any Loan (other
than a Swingline Loan) shall be in an amount that would be permitted in the case
of an advance of a Revolving Borrowing of the same Type pursuant to Section 2.2
or in the case of a Swingline Loan pursuant to Section 2.5. Each prepayment of a
Borrowing shall be applied ratably to the Loans comprising such Borrowing, and
in the case of a prepayment of a Term Loan Borrowing, pro rata to each of the
principal installments thereof. Any payments made to the Administrative Agent
for the Lenders pursuant to the Collateral Assignment of Life Insurance shall be
applied as an optional prepayment of the Term Loans under this Section.

     SECTION 2.14 Interest on Loans.

          (a) The Borrower shall pay interest on each Base Rate Loan at the Base
     Rate in effect from time to time plus the Applicable Margin, and on each
     Eurodollar Loan at the Adjusted LIBO Rate for the applicable Interest
     Period in effect for such Loan, plus the Applicable Margin.

          (b) The Borrower shall pay interest on each Swingline Loan at the Base
     Rate in effect from time to time, plus the Applicable Margin.

          (c) While an Event of Default exists or after acceleration, at the
     option of the Required Lenders, the Borrower shall pay interest ("DEFAULT
     INTEREST") with respect to all Eurodollar Loans at the rate otherwise
     applicable for the then-current Interest Period plus an additional 2% per
     annum until the last day of such Interest Period, and thereafter, and with
     respect to all Base Rate Loans (including all Swingline Loans) and all
     other Obligations hereunder (other than Loans), at the rate in effect for
     Base Rate Loans, plus an additional 2% per annum.

          (d) Interest on the principal amount of all Loans shall accrue from
     and including the date such Loans are made to but excluding the date of any
     repayment thereof. Interest on all outstanding Base Rate Loans shall be
     payable quarterly in arrears on the last day of each calendar quarter and
     on the Commitment Termination Date or the Maturity Date, as the case may
     be. Interest on all outstanding Eurodollar Loans shall be

                                       27

<PAGE>

     payable on the last day of each Interest Period applicable thereto, and, in
     the case of any Eurodollar Loans having an Interest Period in excess of
     three months on each day which occurs every three months after the initial
     date of such Interest Period, and on the Commitment Termination Date or the
     Maturity Date, as the case may be. Interest on each Swingline Loan shall be
     payable on the maturity of such Swingline Loan, which shall be the last day
     of the Interest Period applicable thereto, and on the Swingline Termination
     Date. Interest on any Loan which is converted into a Loan of another Type
     or which is repaid or prepaid shall be payable on the date of such
     conversion or on the date of any such repayment or prepayment (on the
     amount repaid or prepaid) thereof. All Default Interest shall be payable on
     demand.

          (e) The Administrative Agent shall determine each interest rate
     applicable to the Loans hereunder and shall promptly notify the Borrower
     and the Lenders of such rate in writing (or by telephone, promptly
     confirmed in writing). Any such determination shall be conclusive and
     binding for all purposes, absent manifest error.

     SECTION 2.15 Fees.

          (a) Administrative Agent's Fees. The Borrower shall pay to the
     Administrative Agent for its own account fees in the amounts and at the
     times previously agreed upon the Borrower and the Administrative Agent.

          (b) Commitment Fee. The Borrower agrees to pay to the Administrative
     Agent for the account of each Lender a commitment fee (the "COMMITMENT
     FEE"), which shall accrue at the Applicable Percentage on the daily amount
     of the unused Revolving Commitment of such Lender during the Availability
     Period; provided, that if such Lender continues to have any Revolving
     Credit Exposure after the Commitment Termination Date, then the Commitment
     Fee shall continue to accrue on the amount of such Lender's unused
     Revolving Commitment from and after the Commitment Termination Date to the
     date that all of such Lender's Revolving Credit Exposure has been paid in
     full. Accrued Commitment Fees shall be payable in arrears on the last day
     of each March, June, September and December of each year and on the
     Commitment Termination Date, commencing on the first such date after the
     Closing Date; provided further, that any commitment fees accruing after the
     Commitment Termination Date shall be payable on demand. For purposes of
     computing Commitment Fees, the Revolving Commitment of each Lender shall be
     deemed used to the extent of the outstanding Revolving Loans and LC
     Exposure of such Lender.

          (c) Letter of Credit Fees. The Borrower agrees to pay (i) to the
     Administrative Agent, for the account of each Lender, a letter of credit
     fee (the "LETTER OF CREDIT FEE") with respect to its participation in each
     Letter of Credit, which shall accrue at the Applicable Percentage on the
     average daily amount of such Lender's LC Exposure (excluding any portion
     thereof attributable to unreimbursed LC Disbursements) attributable to such
     Letter of Credit during the period from and including the date of issuance
     of such Letter of Credit to but excluding the date on which such Letter
     expires or is drawn in full (including without limitation any LC Exposure
     that remains outstanding after the Commitment Termination Date) and (ii) to
     the Issuing Bank for its

                                       28

<PAGE>

     own account a fronting fee, which shall accrue at the rate of 0.25% per
     annum on the average daily amount of the LC Exposure (excluding any portion
     thereof attributable to Unreimbursed LC Disbursements) during the
     Availability Period (or until the date that such Letter of Credit is
     irrevocably canceled, whichever is later), as well as the Issuing Bank's
     standard fees with respect to issuance, amendment, renewal or extension of
     any Letter of Credit or processing of drawings thereunder. Accrued Letter
     of Credit Fees and the fronting fee shall be payable quarterly in arrears
     on the last day of each March, June, September and December, commencing on
     the first such date after the Closing Date and on the Commitment
     Termination Date (and if later, the date the LC Exposure shall be repaid in
     their entirety).

     SECTION 2.16 Computation of Interest and Fees. All computations of interest
and fees hereunder shall be made on the basis of a year of 360 days for the
actual number of days (including the first day but excluding the last day)
occurring in the period for which such interest or fees are payable (to the
extent computed on the basis of days elapsed). Each determination by the
Administrative Agent of an interest amount or fee hereunder shall be made in
good faith and, except for manifest error, shall be final, conclusive and
binding for all purposes.

     SECTION 2.17 Inability to Determine Interest Rates. If prior to the
commencement of any Interest Period for any Eurodollar Borrowing,

          (i) the Administrative Agent shall have reasonably determined (which
     determination shall be conclusive and binding upon Borrower) that, by
     reason of circumstances affecting the relevant interbank market, adequate
     means do not exist for ascertaining LIBOR for such Interest Period, or

          (ii) the Administrative Agent shall have received notice from the
     Required Lenders that the Adjusted LIBO Rate does not adequately and fairly
     reflect the cost to such Lenders (or Lender, as the case may be) of making,
     funding or maintaining their (or its, as the case may be) Eurodollar Loans
     for such Interest Period,

the Administrative Agent shall give written notice (or telephonic notice,
promptly confirmed in writing) to the Borrower and to the Lenders as soon as
practicable thereafter. In the case of Eurodollar Loans, until the
Administrative Agent shall notify the Borrower and the Lenders that the
circumstances giving rise to such notice no longer exist, (i) the obligations of
the Lenders to make Eurodollar Revolving Loans or to continue or convert
outstanding Loans as or into Eurodollar Loans shall be suspended and (ii) all
such affected Loans shall be converted into Base Rate Loans on the last day of
the then current Interest Period applicable thereto unless the Borrower prepays
such Loans in accordance with this Agreement. Unless the Borrower notifies the
Administrative Agent at least one (1) Business Day before the date of any
Eurodollar Revolving Borrowing for which a Notice of Revolving Borrowing has
previously been given that it elects not to borrow on such date, then such
Revolving Borrowing shall be made as a Base Rate Borrowing.

     SECTION 2.18 Illegality. If any Change in Law shall make it unlawful or
impossible for any Lender to make, maintain or fund any Eurodollar Loan and such
Lender shall so notify the

                                       29

<PAGE>

Administrative Agent, the Administrative Agent shall promptly give notice
thereof to the Borrower and the other Lenders, whereupon until such Lender
notifies the Administrative Agent and the Borrower that the circumstances giving
rise to such suspension no longer exist, the obligation of such Lender to make
Eurodollar Revolving Loans, or to continue or convert outstanding Loans as or
into Eurodollar Loans, shall be suspended. In the case of the making of a
Eurodollar Revolving Borrowing, such Lender's Revolving Loan shall be made as a
Base Rate Loan as part of the same Revolving Borrowing for the same Interest
Period and if the affected Eurodollar Loan is then outstanding, such Loan shall
be converted to a Base Rate Loan either (i) on the last day of the then current
Interest Period applicable to such Eurodollar Loan if such Lender may lawfully
continue to maintain such Loan to such date or (ii) immediately if such Lender
shall reasonably determine that it may not lawfully continue to maintain such
Eurodollar Loan to such date. Notwithstanding the foregoing, the affected Lender
shall, prior to giving such notice to the Administrative Agent, designate a
different Applicable Lending Office if such designation would avoid the need for
giving such notice and if such designation would not otherwise be
disadvantageous to such Lender in the good faith exercise of its reasonable
discretion.

     SECTION 2.19 Increased Costs.

          (a) If any Change in Law shall:

               (i) impose, modify or deem applicable any reserve, special
          deposit or similar requirement that is not otherwise included in the
          determination of the Adjusted LIBO Rate hereunder against assets of,
          deposits with or for the account of, or credit extended by, any Lender
          (except any such reserve requirement reflected in the Adjusted LIBO
          Rate) or the Issuing Bank; or

               (ii) impose on any Lender or on the Issuing Bank or the
          eurodollar interbank market any other condition affecting this
          Agreement or any Eurodollar Loans made by such Lender or any Letter of
          Credit or any participation therein;

and the result of the foregoing is to increase the cost to such Lender of
making, converting into, continuing or maintaining a Eurodollar Loan or to
increase the cost to such Lender or the Issuing Bank of participating in or
issuing any Letter of Credit or to reduce the amount received or receivable by
such Lender or the Issuing Bank hereunder (whether of principal, interest or any
other amount), then the Borrower shall promptly pay, after written notice from
and demand by such Lender on the Borrower (with a copy of such notice and demand
to the Administrative Agent), to the Administrative Agent for the account of
such Lender, within fifteen (15) Business Days after the date of such notice and
demand, additional amount or amounts sufficient to compensate such Lender or the
Issuing Bank, as the case may be, for such additional costs incurred or
reduction suffered.

          (b) If any Lender or the Issuing Bank shall have determined that on or
     after the date of this Agreement any Change in Law regarding capital
     requirements has or would have the effect of reducing the rate of return on
     such Lender's or the Issuing Bank's capital (or on the capital of such
     Lender's or the Issuing Bank's parent corporation) as a consequence of its
     obligations hereunder or under or in respect of any

                                       30

<PAGE>

     Letter of Credit to a level below that which such Lender or the Issuing
     Bank or such Lender's or the Issuing Bank's parent corporation could have
     achieved but for such Change in Law (taking into consideration such
     Lender's or the Issuing Bank's policies or the policies of such Lender's or
     the Issuing Bank's parent corporation with respect to capital adequacy)
     then, from time to time, within fifteen (15) Business Days after receipt by
     the Borrower of written demand by such Lender (with a copy thereof to the
     Administrative Agent which shall contain reasonable detail setting forth
     such amounts), the Borrower shall pay to such Lender such additional
     amounts as will compensate such Lender or the Issuing Bank or such Lender's
     or the Issuing Bank's parent corporation for any such reduction suffered.

          (c) A certificate of a Lender or the Issuing Bank setting forth the
     amount or amounts necessary to compensate such Lender or the Issuing Bank
     or such Lender's or the Issuing Bank's parent corporation, as the case may
     be, specified in paragraph (a) or (b) of this Section shall be delivered to
     the Borrower (with a copy to the Administrative Agent) and shall be
     conclusive, absent manifest error. The Borrower shall pay any such Lender
     or the Issuing Bank, as the case may be, such amount or amounts within ten
     (10) days after receipt thereof.

          (d) Failure or delay on the part of any Lender or the Issuing Bank to
     demand compensation pursuant to this Section shall not constitute a waiver
     of such Lender's or the Issuing Bank's right to demand such compensation,
     provided, that the Borrower shall not be required to compensate a Lender or
     the Issuing Bank under this Section for any increased costs or reductions
     incurred more than six (6) months prior to the date that such Lender or the
     Issuing Bank notifies the Borrower of such increased costs or reductions
     and of such Lender's or the Issuing Bank's intention to claim compensation
     therefore; provided further, that if the Change in Law giving rise to such
     increased costs or reductions is retroactive, then such six-month period
     shall be extended to include the period of such retroactive effect.

     SECTION 2.20 Funding Indemnity. In the event of (a) the payment of any
principal of a Eurodollar Loan other than on the last day of the Interest Period
applicable thereto (including as a result of an Event of Default), (b) the
conversion or continuation of a Eurodollar Loan other than on the last day of
the Interest Period applicable thereto, or (c) the failure by the Borrower to
borrow, prepay, convert or continue any Eurodollar Loan on the date specified in
any applicable notice (regardless of whether such notice is withdrawn or
revoked), then, in any such event, the Borrower shall compensate each Lender,
within five (5) Business Days after written demand from such Lender, for any
loss, cost or expense attributable to such event. In the case of a Eurodollar
Loan, such loss, cost or expense shall be deemed to include an amount determined
by such Lender to be the excess, if any, of (A) the amount of interest that
would have accrued on the principal amount of such Eurodollar Loan if such event
had not occurred at the Adjusted LIBO Rate applicable to such Eurodollar Loan
for the period from the date of such event to the last day of the then current
Interest Period therefor (or in the case of a failure to borrow, convert or
continue, for the period that would have been the Interest Period for such
Eurodollar Loan) over (B) the amount of interest that would accrue on the
principal amount of such Eurodollar Loan for the same period if the Adjusted
LIBO Rate were set on the date such Eurodollar Loan was prepaid or converted or
the date on which the Borrower failed to borrow, convert or continue

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<PAGE>

such Eurodollar Loan. A certificate as to any additional amount payable under
this Section 2.20 submitted to the Borrower by any Lender shall certain
reasonable detail of such amount and shall be conclusive, absent manifest error.

     SECTION 2.21 Taxes.

          (a) Any and all payments by or on account of any obligation of the
     Borrower hereunder shall be made free and clear of and without deduction
     for any Indemnified Taxes or Other Taxes; provided, that if the Borrower
     shall be required to deduct any Indemnified Taxes or Other Taxes from such
     payments, then (i) the sum payable shall be increased as necessary so that
     after making all required deductions (including deductions applicable to
     additional sums payable under this Section) the Administrative Agent, any
     Lender or the Issuing Bank (as the case may be) shall receive an amount
     equal to the sum it would have received had no such deductions been made,
     (ii) the Borrower shall make such deductions and (iii) the Borrower shall
     pay the full amount deducted to the relevant Governmental Authority in
     accordance with applicable law.

          (b) In addition, the Borrower shall pay any Other Taxes to the
     relevant Governmental Authority in accordance with applicable law.

          (c) The Borrower shall indemnify the Administrative Agent, each Lender
     and the Issuing Bank, within fifteen (15) Business Days after written
     demand therefor, for the full amount of any Indemnified Taxes or Other
     Taxes paid by the Administrative Agent, such Lender or the Issuing Bank, as
     the case may be, on or with respect to any payment by or on account of any
     obligation of the Borrower hereunder (including Indemnified Taxes or Other
     Taxes imposed or asserted on or attributable to amounts payable under this
     Section) and any penalties, interest and reasonable expenses arising
     therefrom or with respect thereto, whether or not such Indemnified Taxes or
     Other Taxes were correctly or legally imposed or asserted by the relevant
     Governmental Authority. A certificate as to the amount of such payment or
     liability delivered to the Borrower by a Lender or the Issuing Bank, or by
     the Administrative Agent on its own behalf or on behalf of a Lender or the
     Issuing Bank, shall be conclusive absent manifest error.

          (d) As soon as practicable after any payment of Indemnified Taxes or
     Other Taxes by the Borrower to a Governmental Authority, the Borrower shall
     deliver to the Administrative Agent the original or a certified copy of a
     receipt issued by such Governmental Authority evidencing such payment, a
     copy of the return reporting such payment or other evidence of such payment
     reasonably satisfactory to the Administrative Agent.

          (e) Any Foreign Lender that is entitled to an exemption from or
     reduction of withholding tax under the law of the jurisdiction in which the
     Borrower is located, or any treaty to which such jurisdiction is a party,
     with respect to payments under this Agreement shall deliver to the Borrower
     (with a copy to the Administrative Agent), at the time or times prescribed
     by applicable law, such properly completed and executed documentation
     prescribed by applicable law or reasonably requested by the Borrower as
     will permit such payments to be made without withholding or at a reduced
     rate. Without

                                       32

<PAGE>

     limiting the generality of the foregoing, each Foreign Lender agrees that
     it will deliver to the Administrative Agent and the Borrower (or in the
     case of a Participant, to the Lender from which the related participation
     shall have been purchased) two (2) duly completed copies of Internal
     Revenue Service Form W-8BEN, W-8ECI, W-8EXP or W-8IMY, or any successor
     form thereto, as the case may be, certifying in each case that such Foreign
     Lender is entitled to receive payments made by the Borrower hereunder and
     under the Notes payable to it, without deduction or withholding (or at a
     reduced rate) of any United States federal income taxes and (ii) a duly
     completed Internal Revenue Service Form W-8BEN, W-8ECI, W-8EXP or W-8IMY,
     or any successor form thereto, as the case may be, to establish an
     exemption from United States backup withholding tax. Each Lender that is
     not a Foreign Lender agrees that it will deliver to the Administrative
     Agent and the Borrower (or in the case of a Participant, to the Lender from
     which the related participation shall have been purchased) two (2) duly
     completed copies of the Internal Revenue Service Form W-9, or any successor
     form thereto, to establish an exemption from United States backup
     withholding tax. Each Lender shall deliver to the Borrower and the
     Administrative Agent such forms on or before the date that it becomes a
     party to this Agreement (or in the case of a Participant, on or before the
     date such Participant purchases the related participation). In addition,
     each such Lender shall deliver such forms promptly upon the obsolescence or
     invalidity of any form previously delivered by such Lender. Each such
     Lender shall promptly notify the Borrower and the Administrative Agent at
     any time that it determines that it is no longer in a position to provide
     any previously delivered certificate to the Borrower (or any other form of
     certification adopted by the U.S. taxing authorities for such purpose).

     SECTION 2.22 Payments Generally; Pro Rata Treatment; Sharing of Set-offs.

          (a) The Borrower shall make each payment required to be made by it
     hereunder (whether of principal, interest, fees or reimbursement of LC
     Disbursements, or of amounts payable under Section 2.19, 2.20 or 2.21, or
     otherwise) prior to 12:00 noon, on the date when due, in immediately
     available funds, without set-off or counterclaim. Any amounts received
     after such time on any date may, in the discretion of the Administrative
     Agent, be deemed to have been received on the next succeeding Business Day
     for purposes of calculating interest thereon. All such payments shall be
     made to the Administrative Agent at the Payment Office, except payments to
     be made directly to the Issuing Bank or Swingline Lender as expressly
     provided herein and except that payments pursuant to Sections 2.19, 2.20
     and 2.21 and 10.3 shall be made directly to the Persons entitled thereto.
     The Administrative Agent shall distribute any such payments received by it
     for the account of any other Person to the appropriate recipient promptly
     following receipt thereof. If any payment hereunder shall be due on a day
     that is not a Business Day, the date for payment shall be extended to the
     next succeeding Business Day, and, in the case of any payment accruing
     interest, interest thereon shall be made payable for the period of such
     extension. All payments hereunder shall be made in Dollars.

          (b) If at any time insufficient funds are received by and available to
     the Administrative Agent to pay fully all amounts of principal,
     unreimbursed LC Disbursements, interest and fees then due hereunder, such
     funds shall be applied (i) first, towards payment of interest and fees then
     due hereunder, ratably among the parties

                                       33

<PAGE>

     entitled thereto in accordance with the amounts of interest and fees then
     due to such parties, and (ii) second, towards payment of principal and
     unreimbursed LC Disbursements then due hereunder, ratably among the parties
     entitled thereto in accordance with the amounts of principal and
     unreimbursed LC Disbursements then due to such parties.

          (c) If any Lender shall, by exercising any right of set-of or
     counterclaim or otherwise, obtain payment in respect of any principal of or
     interest on any of its Revolving Loans or participations in LC
     Disbursements or Swingline Loans that would result in such Lender receiving
     payment of a greater proportion of the aggregate amount of its Revolving
     Loans and participations in LC Disbursements and Swingline Loans and
     accrued interest thereon than the proportion received by any other Lender,
     then the Lender receiving such greater proportion shall purchase (for cash
     at face value) participations in the Revolving Loans and participations in
     LC Disbursements and Swingline Loans of other Lenders to the extent
     necessary so that the benefit of all such payments shall be shared by the
     Lenders ratably in accordance with the aggregate amount of principal of and
     accrued interest on their respective Revolving Loans and participations in
     LC Disbursements and Swingline Loans; provided, that (i) if any such
     participations are purchased and all or any portion of the payment giving
     rise thereto is recovered, such participations shall be rescinded and the
     purchase price restored to the extent of such recovery, without interest,
     and (ii) the provisions of this paragraph shall not be construed to apply
     to any payment made by the Borrower pursuant to and in accordance with the
     express terms of this Agreement or any payment obtained by a Lender as
     consideration for the assignment of or sale of a participation in any of
     its Loans or participations in LC Disbursements or Swingline Loans to any
     assignee or participant, other than to the Borrower or any Subsidiary or
     Affiliate thereof (as to which the provisions of this paragraph shall
     apply). The Borrower consents to the foregoing and agrees, to the extent it
     may effectively do so under applicable law, that any Lender acquiring a
     participation pursuant to the foregoing arrangements may exercise against
     the Borrower rights of set-off and counterclaim with respect to such
     participation as fully as if such Lender were a direct creditor of the
     Borrower in the amount of such participation.

          (d) Unless the Administrative Agent shall have received notice from
     the Borrower prior to the date on which any payment is due to the
     Administrative Agent for the account of the Lenders or the Issuing Bank
     hereunder that the Borrower will not make such payment, the Administrative
     Agent may assume that the Borrower has made such payment on such date in
     accordance herewith and may, in reliance upon such assumption, distribute
     to the Lenders or the Issuing Bank, as the case may be, the amount or
     amounts due. In such event, if the Borrower has not in fact made such
     payment, then each of the Lenders or the Issuing Bank, as the case may be,
     severally agrees to repay to the Administrative Agent forthwith on demand
     the amount so distributed to such Lender or Issuing Bank with interest
     thereon, for each day from and including the date such amount is
     distributed to it to but excluding the date of payment to the
     Administrative Agent, at the greater of the Federal Funds Effective Rate
     and a rate determined by the Administrative Agent in accordance with
     banking industry rules on interbank compensation.

                                       34

<PAGE>

          (e) If any Lender shall fail to make any payment required to be made
     by it pursuant to Section 2.5(b), 2.24(d), 2.8(b), 2.22(d) or 10.3(d), then
     the Administrative Agent may, in its discretion (notwithstanding any
     contrary provision hereof), apply any amounts thereafter received by the
     Administrative Agent for the account of such Lender to satisfy such
     Lender's obligations under such Sections until all such unsatisfied
     obligations are fully paid.

     SECTION 2.23 Mitigation of Obligations. If any Lender requests compensation
under Section 2.19, or if the Borrower is required to pay any additional amount
to any Lender or any Governmental Authority for the account of any Lender
pursuant to Section 2.21, then such Lender shall use reasonable efforts to
designate a different lending office for funding or booking its Loans hereunder
or to assign its rights and obligations hereunder to another of its offices,
branches or affiliates, if, in the sole judgment of such Lender, such
designation or assignment (i) would eliminate or reduce amounts payable under
Section 2.19 or Section 2.21, as the case may be, in the future and (ii) would
not subject such Lender to any unreimbursed cost or expense and would not
otherwise be disadvantageous to such Lender. The Borrower hereby agrees to pay
all costs and expenses incurred by any Lender in connection with such
designation or assignment.

     SECTION 2.24 Letters of Credit.

          (a) During the Availability Period, the Issuing Bank, in reliance upon
     the agreements of the other Lenders pursuant to Section 2.24(d), agrees to
     issue, at the request of the Borrower, Letters of Credit for the account of
     the Borrower on the terms and conditions hereinafter set forth; provided,
     that (i) each Letter of Credit shall expire on the earlier of (A) the date
     one year after the date of issuance of such Letter of Credit (or in the
     case of any renewal or extension thereof, one year after such renewal or
     extension) and (B) the date that is five (5) Business Days prior to the
     Commitment Termination Date; (ii) each Letter of Credit shall be in a
     stated amount of at least $50,000; and (iii) the Borrower may not request
     any Letter of Credit, if, after giving effect to such issuance (A) the
     aggregate LC Exposure would exceed the LC Commitment or (B) the aggregate
     LC Exposure, plus the aggregate outstanding Revolving Loans of all Lenders,
     would exceed the Aggregate Revolving Commitments. Upon the issuance of each
     Letter of Credit each Lender shall be deemed to, and hereby irrevocably and
     unconditionally agrees to, purchase from the Issuing Bank without recourse
     a participation in such Letter of Credit equal to such Lender's Pro Rata
     Share of the aggregate amount available to be drawn under such Letter of
     Credit. Each issuance of a Letter of Credit shall be deemed to utilize the
     Revolving Commitment of each Lender by an amount equal to the amount of
     such participation.

          (b) To request the issuance of a Letter of Credit (or any amendment,
     renewal or extension of an outstanding Letter of Credit), the Borrower
     shall give the Issuing Bank and the Administrative Agent irrevocable
     written notice at least three (3) Business Days prior to the requested date
     of such issuance specifying the date (which shall be a Business Day) such
     Letter of Credit is to be issued (or amended, extended or renewed, as the
     case may be), the expiration date of such Letter of Credit, the amount of
     such Letter of Credit, the name and address of the beneficiary thereof and
     such other information as shall be necessary to prepare, amend, renew or
     extend such Letter of Credit. In addition to the

                                       35

<PAGE>

     satisfaction of the conditions in Article III, the issuance of such Letter
     of Credit (or any amendment which increases the amount of such Letter of
     Credit) will be subject to the further conditions that such Letter of
     Credit shall be in such form and contain such terms as the Issuing Bank
     shall approve and that the Borrower shall have executed and delivered any
     additional applications, agreements and instruments relating to such Letter
     of Credit as the Issuing Bank shall reasonably require; provided, that in
     the event of any conflict between such applications, agreements or
     instruments and this Agreement, the terms of this Agreement shall control.

          (c) At least two (2) Business Days prior to the issuance of any Letter
     of Credit, the Issuing Bank will confirm with the Administrative Agent (by
     telephone or in writing) that the Administrative Agent has received such
     notice and if not, the Issuing Bank will provide the Administrative Agent
     with a copy thereof. Unless the Issuing Bank has received notice from the
     Administrative Agent on or before the Business Day immediately preceding
     the date the Issuing Bank is to issue the requested Letter of Credit (1)
     directing the Issuing Bank not to issue the Letter of Credit because such
     issuance is not then permitted hereunder because of the limitations set
     forth in Section 2.24(a) or that one or more conditions specified in
     Article III are not then satisfied, then, subject to the terms and
     conditions hereof, the Issuing Bank shall, on the requested date, issue
     such Letter of Credit in accordance with the Issuing Bank's usual and
     customary business practices.

          (d) The Issuing Bank shall examine all documents purporting to
     represent a demand for payment under a Letter of Credit promptly following
     its receipt thereof. The Issuing Bank shall notify the Borrower and the
     Administrative Agent of such demand for payment and whether the Issuing
     Bank has made or will make a LC Disbursement thereunder; provided, that any
     failure to give or delay in giving such notice shall not relieve the
     Borrower of its obligation to reimburse the Issuing Bank and the Lenders
     with respect to such LC Disbursement. The Borrower shall be irrevocably and
     unconditionally obligated to reimburse the Issuing Bank for any LC
     Disbursements paid by the Issuing Bank in respect of such drawing, without
     presentment, demand or other formalities of any kind. Unless the Borrower
     shall have notified the Issuing Bank and the Administrative Agent prior to
     11:00 a.m. on the Business Day immediately prior to the date on which such
     drawing is honored that the Borrower intends to reimburse the Issuing Bank
     for the amount of such drawing in funds other than from the proceeds of
     Revolving Loans, the Borrower shall be deemed to have timely given a Notice
     of Revolving Borrowing to the Administrative Agent requesting the Lenders
     to make a Base Rate Borrowing on the date on which such drawing is honored
     in an exact amount due to the Issuing Bank; provided, that for purposes
     solely of such Borrowing, the conditions precedents set forth in Section
     3.2 hereof shall not be applicable. The Administrative Agent shall notify
     the Lenders of such Borrowing in accordance with Section 2.3, and each
     Lender shall make the proceeds of its Base Rate Loan included in such
     Borrowing available to the Administrative Agent for the account of the
     Issuing Bank in accordance with Section 2.8. The proceeds of such Borrowing
     shall be applied directly by the Administrative Agent to reimburse the
     Issuing Bank for such LC Disbursement.

                                       36

<PAGE>

          (e) If for any reason a Base Rate Borrowing may not be (as determined
     in the sole discretion of the Administrative Agent), or is not, made in
     accordance with the foregoing provisions, then each Lender (other than the
     Issuing Bank) shall be obligated to fund the participation that such Lender
     purchased pursuant to subsection (a) in an amount equal to its Pro Rata
     Share of such LC Disbursement on and as of the date which such Base Rate
     Borrowing should have occurred. Each Lender's obligation to fund its
     participation shall be absolute and unconditional and shall not be affected
     by any circumstance, including without limitation (i) any setoff,
     counterclaim, recoupment, defense or other right that such Lender or any
     other Person may have against the Issuing Bank or any other Person for any
     reason whatsoever, (ii) the existence of a Default or an Event of Default
     or the termination of the Aggregate Revolving Commitments, (iii) any
     adverse change in the condition (financial or otherwise) of the Borrower or
     any of its Subsidiaries, (iv) any breach of this Agreement by the Borrower
     or any other Lender, (v) any amendment, renewal or extension of any Letter
     of Credit or (vi) any other circumstance, happening or event whatsoever,
     whether or not similar to any of the foregoing. On the date that such
     participation is required to be funded, each Lender shall promptly
     transfer, in immediately available funds, the amount of its participation
     to the Administrative Agent for the account of the Issuing Bank. Whenever,
     at any time after the Issuing Bank has received from any such Lender the
     funds for its participation in a LC Disbursement, the Issuing Bank (or the
     Administrative Agent on its behalf) receives any payment on account
     thereof, the Administrative Agent or the Issuing Bank, as the case may be,
     will distribute to such Lender its Pro Rata Share of such payment;
     provided, that if such payment is required to be returned for any reason to
     the Borrower or to a trustee, receiver, liquidator, custodian or similar
     official in any bankruptcy proceeding, such Lender will return to the
     Administrative Agent or the Issuing Bank any portion thereof previously
     distributed by the Administrative Agent or the Issuing Bank to it.

          (f) To the extent that any Lender shall fail to pay any amount
     required to be paid pursuant to paragraph (d) of this Section 2.24 on the
     due date therefor, such Lender shall pay interest to the Issuing Bank
     (through the Administrative Agent) on such amount from such due date to the
     date such payment is made at a rate per annum equal to the Federal Funds
     Rate; provided, that if such Lender shall fail to make such payment to the
     Issuing Bank within three (3) Business Days of such due date, then,
     retroactively to the due date, such Lender shall be obligated to pay
     interest on such amount at the Default Rate.

          (g) If any Event of Default shall occur and be continuing, on the
     Business Day that the Borrower receives notice from the Administrative
     Agent or the Required Lenders demanding the deposit of cash collateral
     pursuant to this paragraph, the Borrower shall deposit in an account with
     the Administrative Agent, in the name of the Administrative Agent and for
     the benefit of the Lenders, an amount in cash equal to the LC Exposure as
     of such date plus any accrued and unpaid interest thereon; provided, that
     the obligation to deposit such cash collateral shall become effective
     immediately, and such deposit shall become immediately due and payable,
     with demand or notice of any kind, upon the occurrence of any Event of
     Default with respect to the Borrower described in clause (g) or (h) of
     Section 8.1. Such deposit shall be held by the Administrative Agent as
     collateral for the payment and performance of the obligations of the
     Borrower under this

                                       37

<PAGE>

     Agreement. The Administrative Agent shall have exclusive dominion and
     control, including the exclusive right of withdrawal, over such account.
     Other than any interest earned on the investment of such deposits, which
     investments shall be made at the option and sole discretion of the
     Administrative Agent and at the Borrower's risk and expense, such deposits
     shall not bear interest. Interest and profits, if any, on such investments
     shall accumulate in such account. Moneys in such account shall applied by
     the Administrative Agent to reimburse the Issuing Bank for LC Disbursements
     for which it had not been reimbursed and to the extent so applied, shall be
     held for the satisfaction of the reimbursement obligations of the Borrower
     for the LC Exposure at such time or, if the maturity of the Loans has been
     accelerated, with the consent of the Required Lenders, be applied to
     satisfy other obligations of the Borrower under this Agreement. If the
     Borrower is required to provide an amount of cash collateral hereunder as a
     result of the occurrence of an Event of Default, such amount (to the extent
     not so applied as aforesaid) shall be returned to the Borrower with three
     Business Days after all Events of Default have been cured or waived.

          (h) Promptly following the end of each fiscal quarter, the Issuing
     Bank shall deliver (through the Administrative Agent) to each Lender and
     the Borrower a report describing the aggregate Letters of Credit
     outstanding at the end of such fiscal quarter. Upon the request of any
     Lender from time to time, the Issuing Bank shall deliver to such Lender any
     other information reasonably requested by such Lender with respect to each
     Letter of Credit then outstanding.

          (i) The Borrower's obligation to reimburse LC Disbursements hereunder
     shall be absolute, unconditional and irrevocable and shall be performed
     strictly in accordance with the terms of this Agreement under all
     circumstances whatsoever and irrespective of any of the following
     circumstances:

               (i) Any lack of validity or enforceability of any Letter of
          Credit or this Agreement;

               (ii) The existence of any claim, set-off, defense or other right
          which the Borrower or any Subsidiary or Affiliate of the Borrower may
          have at any time against a beneficiary or any transferee of any Letter
          of Credit (or any Persons or entities for whom any such beneficiary or
          transferee may be acting), any Lender (including the Issuing Bank) or
          any other Person, whether in connection with this Agreement or the
          Letter of Credit or any document related hereto or thereto or any
          unrelated transaction;

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

               (iv) Any other event or circumstance whatsoever, whether or not
          similar to any of the foregoing, that might, but for the provisions of
          this Section, constitute a legal or equitable discharge of, or provide
          a right of setoff against, the Borrower's obligations hereunder; or

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<PAGE>

               (v) The existence of a Default or an Event of Default.

     Neither the Administrative Agent, the Issuing Bank, the Lenders nor any
     Related Party of any of the foregoing shall have any liability or
     responsibility by reason of or in connection with the issuance or transfer
     of any Letter of Credit or any payment or failure to make any payment
     thereunder (irrespective of any of the circumstances referred to above), or
     any error, omission, interruption, loss or delay in transmission or
     delivery of any draft, notice or other communication under or relating to
     any Letter of Credit (including any document required to make a drawing
     thereunder), any error in interpretation of technical terms or any
     consequence arising from causes beyond the control of the Issuing Bank;
     provided, that the foregoing shall not be construed to excuse the Issuing
     Bank from liability to the Borrower to the extent of any direct damages (as
     opposed to consequential damages, claims in respect of which are hereby
     waived by the Borrower to the extent permitted by applicable law) suffered
     by the Borrower that are caused by the Issuing Bank's failure to exercise
     care when determining whether drafts or other documents presented under a
     Letter of Credit comply with the terms thereof. The parties hereto
     expressly agree, that in the absence of gross negligence or willful
     misconduct on the part of the Issuing Bank (as finally determined by a
     court of competent jurisdiction), the Issuing Bank shall be deemed to have
     exercised care in each such determination. In furtherance of the foregoing
     and without limiting the generality thereof, the parties agree that, with
     respect to documents presented that appear on their face to be in
     substantial compliance with the terms of a Letter of Credit, the Issuing
     Bank may, in its sole discretion, either accept and make payment upon such
     documents without responsibility for further investigation, regardless of
     any notice or information to the contrary, or refuse to accept and make
     payment upon such documents if such documents are not in strict compliance
     with the terms of such Letter of Credit.

          (j) Unless otherwise expressly agreed by the Issuing Bank and the
     Borrower when a Letter of Credit is issued and subject to applicable laws,
     performance under Letters of Credit by the Issuing Bank, its
     correspondents, and the beneficiaries thereof will be governed by the rules
     of the "International Standby Practices 1998" (ISP98) (or such later
     revision as may be published by the Institute of International Banking Law
     & Practice on any date any Letter of Credit may be issued)and to the extent
     not inconsistent therewith, the governing law of this Agreement set forth
     in Section 10.5.

                                   ARTICLE III

               CONDITIONS PRECEDENT TO LOANS AND LETTERS OF CREDIT

     SECTION 3.1 Conditions To Effectiveness. The obligations of the Lenders
(including the Swingline Lender) to make Loans and the obligation of the Issuing
Bank to issue any Letter of Credit hereunder shall not become effective until
the date on which each of the following conditions is satisfied (or waived in
accordance with Section 10.2).

          (a) The Administrative Agent shall have received all fees and other
     amounts due and payable on or prior to the Closing Date, including
     reimbursement or payment of all reasonable out-of-pocket expenses
     (including reasonable fees, charges and

                                       39

<PAGE>

     disbursements of counsel to the Administrative Agent) required to be
     reimbursed or paid by the Borrower hereunder, under any other Loan Document
     and under any agreement with the Administrative Agent or SunTrust Capital
     Markets, Inc., as a sole lead arranger.

          (b) The Administrative Agent (or its counsel) shall have received the
     following:

               (i) a counterpart of this Agreement signed by or on behalf of
          each party thereto or written evidence satisfactory to the
          Administrative Agent (which may include telecopy transmission of a
          signed signature page of this Agreement) that such party has signed a
          counterpart of this Agreement;

               (ii) duly executed Notes payable to each Lender;

               (iii) a duly executed Subsidiary Guarantee Agreement and
          Indemnity and Contribution Agreement;

               (iv) duly executed Security Documents (excluding the Collateral
          Assignment of Life Insurance);

               (v) a certificate of the Secretary or Assistant Secretary of each
          Loan Party, attaching and certifying copies of its bylaws and of the
          resolutions of its boards of directors, authorizing the execution,
          delivery and performance of the Loan Documents to which it is a party
          and certifying the name, title and true signature of each officer of
          such Loan Party executing the Loan Documents to which it is a party;

               (vi) certified copies of the articles of incorporation or other
          charter documents of each Loan Party, together with certificates of
          good standing or existence, as may be available from the Secretary of
          State of the jurisdiction of incorporation of such Loan Party and each
          other jurisdiction where such Loan Party is required to be qualified
          to do business as a foreign corporation;

               (vii) a written opinion of Kirkland & Ellis LLP, counsel to the
          Loan Parties, addressed to the Administrative Agent and each of the
          Lenders, and covering such matters relating to the Loan Parties, the
          Loan Documents and the transactions contemplated therein as the
          Administrative Agent or the Required Lenders shall reasonably request;

               (viii) a certificate, dated the Closing Date and signed by a
          Responsible Officer, confirming compliance with the conditions set
          forth in paragraphs (a), (b) and (c) of Section 3.2; and

               (ix) duly executed Notices of Borrowing, if applicable.

          (c) Perfection and Priority of Liens. Receipt by the Administrative
     Agent of lien searches, UCC financing statements and other filings and
     documentation for each appropriate jurisdiction as is necessary, in the
     Administrative Agent's reasonable

                                       40

<PAGE>

     judgment, to perfect the Administrative Agent's first priority Liens
     (subject to Permitted Encumbrances) created under the Security Documents;

          (d) Evidence of Insurance. Receipt by the Administrative Agent of
     copies of insurance policies or certificates of insurance with respect to
     the Borrower and its Subsidiaries evidencing liability and casualty
     insurance, which complies with the requirements set forth in the Loan
     Documents and describes in reasonable detail the types and amounts of
     coverage, naming the Administrative Agent as additional insured and loss
     payee, as appropriate;

          (e) Loan Document Consents. Receipt by the Administrative Agent of
     evidence that all governmental, shareholder and material third party
     consents and approvals which are required for the consummation and
     enforceability of the Acquisition and the transactions contemplated thereby
     have been obtained;

          (f) Acquisition Documentation. The Administrative Agent shall have
     received: (i) an executed copy of the Purchase Agreement and all schedules
     and exhibits thereto and all other material agreements executed in
     connection therewith, and (ii) a certificate or certificates executed by a
     Responsible Officer of the Borrower as of the Closing Date, in form and
     substance satisfactory to the Administrative Agent, stating that the
     Acquisition has been, or concurrently with the consummation of the making
     of Loans will be consummated in accordance with the terms of the Purchase
     Agreement without any amendment thereto or material waiver thereof, except
     for amendments or waivers approved by the Administrative Agent in writing;

          (g) Acquisition Consents. Delivery of all material consents,
     approvals, authorizations, registrations, or filings required to be made or
     obtained by the Borrower in connection with the Acquisition and such
     consents, approvals, authorizations, registrations, filings and orders
     shall be in full force and effect and all applicable waiting periods shall
     have expired, and no investigation or inquiry by any Governmental Authority
     regarding the Acquisition shall exist; and

          (h) Financial Statements. Receipt by the Administrative Agent of: (i)
     the audited consolidated financial statements of the Borrower for the
     fiscal years ending June 30, 2004 and June 30, 2005, including balance
     sheets, income statement and cash flows statements and other financial
     information reasonably requested by the Administrative Agent; (ii) annual
     Statutory Statements for each Insurance Company for the period ending
     December 31, 2004; and (iii) the statement regarding reserves for each
     Insurance Company as described in Section 5.1(i), for the period ending
     December 31, 2004.

     The parties hereto agree that: (i) the executed Collateral Assignment of
Life Insurance shall be delivered to the Administrative Agent within sixty (60)
days of the Closing Date; and (ii) the Borrower will deliver within sixty (60)
days of the Closing Date, such documents and instruments necessary to perfect
the Administrative Agent's security interest in any aircraft granted pursuant to
the Borrower Security Agreement.

                                       41

<PAGE>

     SECTION 3.2 Each Credit Event. The obligation of each Lender to make a Loan
on the occasion of any Borrowing (other than the initial Borrowings on the
Closing Date) and of the Issuing Bank to issue, amend, renew or extend any
Letter of Credit is subject to the satisfaction of the following conditions:

          (a) at the time of and immediately after giving effect to such
     Borrowing or the issuance, amendment, renewal or extension of such Letter
     of Credit, as applicable, no Default or Event of Default shall exist; and

          (b) all representations and warranties of each Loan Party set forth in
     the Loan Documents shall be true and correct in all material respects on
     and as of the date of such Borrowing or the date of issuance, amendment,
     extension or renewal of such Letter of Credit, in each case before and
     after giving effect thereto, except for representation and warranties
     expressly relating to an earlier date or changes resulting from
     transactions permitted by this Agreement;

          (c) since the date of the most recent financial statements of the
     Borrower described in Section 5.1(a), there shall have been no change which
     has had or could reasonably be expected to have a Material Adverse Effect;
     and

          (d) the Administrative Agent shall have received such other documents,
     certificates or information as the Administrative Agent or the Required
     Lenders may reasonably request, all in form and substance reasonably
     satisfactory to the Administrative Agent or the Required Lenders.

     Each Borrowing (other than the initial Borrowing on the Closing Date) and
each issuance, amendment, extension or renewal of any Letter of Credit shall be
deemed to constitute a representation and warranty by the Borrower on the date
thereof as to the matters specified in paragraphs (a), (b) and (c) of this
Section 3.2.

     SECTION 3.3 Delivery of Documents. All of the Loan Documents, certificates,
legal opinions and other documents and papers referred to in this Article III,
unless otherwise specified, shall be delivered to the Administrative Agent for
the account of each of the Lenders and, except for the Notes, in sufficient
counterparts or copies for each of the Lenders and shall be in form and
substance satisfactory in all respects to the Administrative Agent.

                                   ARTICLE IV

                         REPRESENTATIONS AND WARRANTIES

     The Borrower represents and warrants to the Administrative Agent and each
Lender as follows:

     SECTION 4.1 Existence; Power. The Borrower and each of its Subsidiaries (i)
is duly organized, validly existing and in good standing as a corporation under
the laws of the jurisdiction of its organization, (ii) has all requisite power
and authority to carry on its business as now conducted, and (iii) is duly
qualified to do business, and is in good standing, in each

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<PAGE>

jurisdiction where such qualification is required, except where a failure to be
so qualified could not reasonably be expected to result in a Material Adverse
Effect.

     SECTION 4.2 Organizational Power; Authorization. The execution, delivery
and performance by each Loan Party of the Loan Documents to which it is a party
are within such Loan Party's organizational powers and have been duly authorized
by all necessary organizational action. This Agreement has been duly executed
and delivered by the Borrower, and constitutes, and each other Loan Document to
which any Loan Party is a party, when executed and delivered by such Loan Party,
will constitute, valid and binding obligations of the Borrower or such Loan
Party (as the case may be), enforceable against it in accordance with their
respective terms, except as may be limited by applicable bankruptcy, insolvency,
reorganization, moratorium, or similar laws affecting the enforcement of
creditors' rights generally and by general principles of equity.

     SECTION 4.3 Governmental Approvals; No Conflicts. The execution, delivery
and performance by the Borrower of this Agreement, and by each Loan Party of the
other Loan Documents to which it is a party (a) do not require any consent or
approval of, registration or filing with, or any action by, any Governmental
Authority, except those as have been obtained or made and are in full force and
effect or where the failure to do so, individually or in the aggregate, would
not reasonably be expected to have a Material Adverse Effect, (b) will not
violate any applicable law or regulation or the charter, by-laws or other
organizational documents of the Borrower or any of its Subsidiaries or any order
of any Governmental Authority, (c) will not violate or result in a default under
any indenture, agreement or other instrument binding on the Borrower or any of
its Subsidiaries or any of its assets or give rise to a right thereunder to
require any payment to be made by the Borrower or any of its Subsidiaries except
to the extent that such violation or default would not reasonably be expected to
have a Material Adverse Effect and (d) will not result in the creation or
imposition of any Lien on any asset of the Borrower or any of its Subsidiaries,
except Liens (if any) created under the Loan Documents.

     SECTION 4.4 Financial Statements. The Borrower has furnished to each Lender
(i) the audited consolidated balance sheet of the Borrower and its Subsidiaries
as of June 30, 2005 and the related consolidated statements of income,
shareholders' equity and cash flows for the fiscal year then ended audited by
KPMG LLP and (ii) the annual Statutory Statements of each of the Insurance
Companies as of December 31, 2004. Such financial statements and Statutory
Statements fairly present in all material respects the consolidated financial
condition of the Borrower and its Subsidiaries or the respective Insurance
Companies, as applicable, as of such dates in conformity with GAAP or SAP, as
applicable, consistently applied except as noted therein. As of the Closing
Date, since the date of such financial statements and Statutory Statements,
there have been no changes which have had or could reasonably be expected to
have, singly or in the aggregate, a Material Adverse Effect.

     SECTION 4.5 Litigation and Environmental Matters.

          (a) No litigation, investigation or proceeding of or before any
     arbitrators or Governmental Authorities is pending against or, to the
     knowledge of the Borrower, threatened against or affecting the Borrower or
     any of its Subsidiaries (i) as to which

                                       43

<PAGE>

     there is a reasonable possibility of an adverse determination that would
     reasonably be expected to have, either individually or in the aggregate, a
     Material Adverse Effect or (ii) which in any manner draws into question the
     validity or enforceability of this Agreement or any other Loan Document.
     The Borrower hereby discloses in Schedule 4.5, current litigation and
     represents and warrants that such litigation set forth in Schedule 4.5 is
     not reasonably expected to have a Material Adverse Effect.

          (b) Neither the Borrower nor any of its Subsidiaries (i) has failed to
     comply with any Environmental Law or to obtain, maintain or comply with any
     material permit, license or other approval required under any Environmental
     Law, (ii) has become subject to any Environmental Liability which is
     material, (iii) has received written notice of any claim with respect to
     any Environmental Liability which is material, or (iv) has actual knowledge
     of any basis for any Environmental Liability which is material.

     SECTION 4.6 Compliance with Laws and Agreements. The Borrower and each
Subsidiary is in compliance with (a) all applicable laws, rules, regulations and
orders of any Governmental Authority, and (b) all indentures, agreements or
other instruments binding upon it or its properties, except where
non-compliance, either singly or in the aggregate, would not reasonably be
expected to result in a Material Adverse Effect.

     SECTION 4.7 Investment Company Act, Etc. Neither the Borrower nor any of
its Subsidiaries is (a) an "investment company", as defined in, or subject to
regulation under, the Investment Company Act of 1940, as amended, (b) a "holding
company" as defined in, or subject to regulation under, the Public Utility
Holding Company Act of 1935, as amended or (c) otherwise subject to any other
regulatory scheme limiting its ability to incur debt.

     SECTION 4.8 Taxes. The Borrower and its Subsidiaries have timely filed or
caused to be filed all Federal income tax returns and all other material tax
returns that are required to be filed by them, and have paid all taxes shown to
be due and payable on such returns or on any assessments made against it or its
property and all other taxes, fees or other charges imposed on it or any of its
property by any Governmental Authority, except (i) to the extent the failure to
do so would not reasonably be expected to have a Material Adverse Effect or (ii)
where the same are currently being contested in good faith by appropriate
proceedings and for which the Borrower or such Subsidiary, as the case may be,
has set aside on its books adequate reserves.

     SECTION 4.9 Margin Regulations. None of the proceeds of any of the Loans or
Letters of Credit will be used for "purchasing" or "carrying" any "margin stock"
with the respective meanings of each of such terms under Regulation U as now and
from time to time hereafter in effect or for any purpose that violates the
provisions of the applicable Margin Regulations.

     SECTION 4.10 ERISA. No ERISA Event has occurred or is reasonably expected
to occur that, when taken together with all other such ERISA Events for which
liability is reasonably expected to occur, could reasonably be expected to
result in a Material Adverse Effect. The present value of all accumulated
benefit obligations under each Plan (based on the assumptions used for purposes
of Statement of Financial Standards No. 87) did not, as of the date of the most
recent financial statements reflecting such amounts, exceed by more than
$500,000 the fair market value of the assets of such Plan, and the present value
of all accumulated benefit

                                       44

<PAGE>

obligations of all underfunded Plans (based on the assumptions used for purposes
of Statement of Financial Standards No. 87) did not, as of the date of the most
recent financial statements reflecting such amounts, exceed by more than
$500,000 the fair market value of the assets of all such underfunded Plans.

     SECTION 4.11 Ownership of Property.

          (a) Each of the Borrower and its Subsidiaries has good title to, or
     valid leasehold interests in, all of its real and personal property
     material to the operation of its business, subject only to Permitted
     Encumbrances.

          (b) Each of the Borrower and its Subsidiaries owns, or is licensed, or
     otherwise has the right, to use, all patents, trademarks, service marks,
     tradenames, copyrights and other intellectual property material to its
     business, and the use thereof by the Borrower and its Subsidiaries does not
     infringe on the rights of any other Person, except for any such
     infringements that, individually or in the aggregate, would not reasonably
     be expected to have a Material Adverse Effect.

     SECTION 4.12 Disclosure. The Borrower has disclosed to the Lenders all
agreements, instruments, and corporate or other restrictions to which the
Borrower or any of its Subsidiaries is subject, and all other matters known to
any of them, that, individually or in the aggregate, would reasonably be
expected to result in a Material Adverse Effect. No reports, financial
statements, certificates or other information furnished by or on behalf of the
Borrower to the Administrative Agent or any Lender in connection with the
negotiation or syndication of this Agreement or any other Loan Document or
delivered hereunder or thereunder (as modified or supplemented by any other
information so furnished) contains any material misstatement of material fact or
omits to state any material fact necessary to make the statements therein, taken
as a whole, in light of the circumstances under which they were made, not
materially misleading; provided, that with respect to projected financial
information and budgets, the Borrower represents only that such information was
prepared in good faith based upon assumptions believed to be reasonable at the
time.

     SECTION 4.13 Labor Relations. There are no strikes, lockouts or other
material labor disputes or grievances against the Borrower or any of its
Subsidiaries, or, to the Borrower's knowledge, threatened against or affecting
the Borrower or any of its Subsidiaries, and no significant unfair labor
practice, charges or grievances are pending against the Borrower or any of its
Subsidiaries, or to the Borrower's knowledge, threatened against any of them
before any Governmental Authority which would reasonably be expected to have a
Material Adverse Effect. All payments due from the Borrower or any of its
Subsidiaries pursuant to the provisions of any collective bargaining agreement
have been paid or accrued as a liability on the books of the Borrower or any
such Subsidiary, except where the failure to do so would not reasonably be
expected to have a Material Adverse Effect.

     SECTION 4.14 Subsidiaries. Schedule 4.14 sets forth the name of, the
ownership interest of the Borrower in, the jurisdiction of incorporation of, and
the type of, each Subsidiary and identifies each Subsidiary that is a Subsidiary
Loan Party, in each case as of the Closing Date.

                                       45

<PAGE>

     SECTION 4.15 Acquisition Matters.

          (a) Upon payment of the purchase price under the Purchase Agreement,
     the Acquired Assets (such terms being used in this Section as defined in
     the Purchase Agreement) and have been validly assigned to, and assumed by,
     the purchaser therein, free and clear of any Liens, other than Liens which
     are permitted herein or in the Security Documents..

          (b) No material filings, approvals, consents, orders or
     authorizations, with or from any Governmental Authority (which has not been
     secured) is required for the consummation of the transactions contemplated
     by the Purchase Agreement.

          (c) The Purchase Agreement and all other material agreements executed
     in connection therewith, are valid and binding obligations of the parties
     thereto (except as may be limited by applicable bankruptcy, insolvency,
     reorganization, moratorium or similar laws affecting the enforcement of
     creditors' rights generally and by general principles of equity), and the
     Acquisition has been consummated in accordance with the terms of the
     Purchase Agreement without any material amendment thereto or material
     waiver thereof, except for amendments or waivers approved by the
     Administrative Agent in writing.

          (d) All material agreements and understandings in connection with the
     Acquisition have been disclosed in writing to the Administrative Agent.

     SECTION 4.16 Foreign Assets Control Regulations, etc. Neither the making of
any Loan nor the use of the proceeds thereof will violate (a) the Trading with
the Enemy Act, as amended, or any of the foreign assets control regulations of
the United States Treasury Department (31 CFR, Subtitle B, Chapter V, as
amended) or any enabling legislation or executive order relating thereto, (b)
the Uniting and Strengthening America by Providing Appropriate Tools Required to
Intercept and Obstruct Terrorism Act of 2001 (the "Patriot Act") or (c)
Executive Order No. 13,224, 66 Fed. Reg. 49,079 (2001), issued by the President
of the United States (Executive Order Blocking Property and Prohibiting
Transactions with Persons Who Commit, Threaten to Commit or Support Terrorism).
Without limiting the foregoing, neither Borrower nor any of its Subsidiaries is
or will become a "blocked person" as described in Section 1 of such Executive
Order or engages or will engage in any dealings or transactions with, or is
otherwise associated with, any such blocked person.

     SECTION 4.17 Licenses. Each Insurance Company holds a valid License to
carry on its operations and there is no litigation, investigation or proceeding
before any Governmental Authority which could reasonably be expected to have any
adverse effect on the status of any material License.

                                       46

<PAGE>

                                   ARTICLE V

                              AFFIRMATIVE COVENANTS

     The Borrower covenants and agrees that so long as any Lender has a
Commitment hereunder or the principal of and interest on any Loan or any fee or
any LC Disbursement remains unpaid or any Letter of Credit remains outstanding:

     SECTION 5.1 Financial Statements and Other Information. The Borrower will
deliver to the Administrative Agent and each Lender:

          (a) as soon as available and in any event within 90 days after the end
     of each fiscal year of Borrower, a copy of the annual audited report for
     such fiscal year for the Borrower and its Subsidiaries, containing a
     consolidated balance sheet of the Borrower and its Subsidiaries as of the
     end of such fiscal year and the related consolidated statements of income,
     stockholders' equity and cash flows (together with all footnotes thereto)
     of the Borrower and its Subsidiaries for such fiscal year, setting forth in
     each case in comparative form the figures for the previous fiscal year, all
     in reasonable detail and reported on by Ernst & Young LLP or other
     independent public accountants of nationally recognized standing (without a
     "going concern" or like qualification, exception or explanation and without
     any qualification or exception as to scope of such audit) to the effect
     that such financial statements present fairly in all material respects the
     financial condition and the results of operations of the Borrower and its
     Subsidiaries for such fiscal year on a consolidated basis in accordance
     with GAAP and that the examination by such accountants in connection with
     such consolidated financial statements has been made in accordance with
     generally accepted auditing standards;

          (b) as soon as available and in any event within 45 days after the end
     of each of the first three fiscal quarters of each fiscal year of the
     Borrower, an unaudited consolidated balance sheet of the Borrower and its
     Subsidiaries as of the end of such fiscal quarter and the related unaudited
     consolidated statements of income and cash flows of the Borrower and its
     Subsidiaries for such fiscal quarter and the then elapsed portion of such
     fiscal year, setting forth in each case in comparative form the figures for
     the corresponding quarter and the corresponding portion of Borrower's
     previous fiscal year, all certified by the chief financial officer or
     treasurer of the Borrower as presenting fairly in all material respects the
     financial condition and results of operations of the Borrower and its
     Subsidiaries on a consolidated basis in accordance with GAAP, subject to
     normal year-end audit adjustments and the absence of footnotes;

          (c) concurrently with the delivery of the financial statements
     referred to in clauses (a) and (b) above, a certificate of a Responsible
     Officer, (i) certifying as to whether such officer has knowledge of the
     existence of a Default or Event of Default on the date of such certificate,
     and if a Default or an Event of Default then exists, specifying the details
     thereof and the action which the Borrower has taken or proposes to take
     with respect thereto, (ii) setting forth in reasonable detail calculations
     demonstrating compliance with Article VI and (iii) stating whether any
     change in GAAP or the application thereof has occurred since the date of
     the Borrower's audited financial

                                       47

<PAGE>

     statements referred to in Section 4.4 and, if any change has occurred,
     specifying the effect of such change on the financial statements
     accompanying such certificate;

          (d) Upon the earlier of (i) 10 days after the required regulatory
     filing date or (ii) 75 days after the close of each of the first three
     fiscal quarters of each fiscal year of each Insurance Company, copies of
     each quarterly Statutory Statement of such Insurance Company, certified by
     the Chief Financial Officer or treasurer of the Borrower as presenting
     fairly in all material respects the financial condition and results of
     operations of such Insurance Company, in accordance with SAP consistently
     applied through the period reflected therein;

          (e) Upon the earlier of (i) 15 days after the required regulatory
     filing date or (ii) 90 days after the close of each fiscal year of each
     Insurance Company, copies of the annual Statutory Statement of such
     Insurance Company and the related management discussion and analysis for
     such fiscal year, as certified by the Chief Financial Officer or treasurer
     of the Borrower as presenting fairly in all material respects the financial
     condition and results of operations of such Insurance Company in accordance
     with SAP consistently applied throughout the period reflected therein;

          (f) As soon as available and only to the extent such an audited
     statement is required by any Governmental Authority to be prepared, a copy
     of the audited annual statement of each Insurance Company for the preceding
     year, as certified by such officers as shall be required by SAP for such
     Insurance Company and prepared on the NAIC annual statement blanks (or such
     other form as shall be required by the jurisdiction of incorporation of
     each such Insurance Company), all such statements to be prepared in
     accordance with SAP consistently applied throughout the periods reflected
     therein and to be certified by independent certified public accountants
     acceptable under subsection (a) of this Section;

          (g) promptly after the same become publicly available, copies of all
     periodic and other material reports, proxy statements and other materials
     filed with the Securities and Exchange Commission, or any Governmental
     Authority succeeding to any or all functions of said Commission, or with
     any national securities exchange, or distributed by the Borrower to its
     shareholders generally, as the case may be;

          (h) As promptly as reasonably practicable and in any event within 150
     days after the end of each fiscal year, a report prepared by an actuary
     qualified in accordance with NAIC standards reasonably satisfactory to the
     Administrative Agent and addressed to the Administrative Agent, reviewing
     the adequacy of reserves of each Insurance Company determined in accordance
     with SAP, which firm shall be provided access to or copies of all reserve
     analyses and valuations relating to the insurance business of each
     Insurance Company in the possession of or available to the Borrower or its
     Subsidiaries; and

          (i) promptly following any request therefor, such other information
     regarding the results of operations, business affairs and financial
     condition of the Borrower or any Subsidiary as the Administrative Agent or
     any Lender may reasonably request.

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     SECTION 5.2 Notices of Material Events. The Borrower will furnish to the
Administrative Agent and each Lender prompt written notice of the following:

          (a) the occurrence of any Default or Event of Default;

          (b) the filing or commencement of any action, suit or proceeding by or
     before any arbitrator or Governmental Authority against or, to the
     knowledge of the Borrower, affecting the Borrower or any Subsidiary which,
     if adversely determined, would reasonably be expected to result in a
     Material Adverse Effect or the loss or suspension of any material License;

          (c) the occurrence of any event or any other development by which the
     Borrower or any of its Subsidiaries (i) fails to comply with any
     Environmental Law or to obtain, maintain or comply with any permit, license
     or other approval required under any Environmental Law, (ii) becomes
     subject to any Environmental Liability, (iii) receives notice of any claim
     with respect to any Environmental Liability, or (iv) becomes aware of any
     basis for any Environmental Liability and in each of the preceding clauses,
     which individually or in the aggregate, could reasonably be expected to
     result in a Material Adverse Effect;

          (d) the occurrence of any ERISA Event that alone, or together with any
     other ERISA Events that have occurred, could reasonably be expected to
     result in liability of the Borrower and its Subsidiaries in an aggregate
     amount exceeding $500,000; and

          (e) any other development that results in, or would reasonably be
     expected to result in, a Material Adverse Effect.

     Each notice delivered under this Section shall be accompanied by a written
statement of a Responsible Officer setting forth the details of the event or
development requiring such notice and any action taken or proposed to be taken
with respect thereto.

     SECTION 5.3 Existence; Conduct of Business. The Borrower will, and will
cause each of its Subsidiaries to, do or cause to be done all things necessary
to preserve, renew and maintain in full force and effect its legal existence and
its respective rights, Licenses, permits, privileges, franchises, patents,
copyrights, trademarks and trade names material to the conduct of its business
and will continue to engage in the same business as presently conducted or such
other businesses that are reasonably related thereto; provided, that nothing in
this Section shall prohibit any merger, consolidation, liquidation or
dissolution permitted under Section 7.3.

     SECTION 5.4 Compliance with Laws, Etc. The Borrower will, and will cause
each of its Subsidiaries to, comply with all laws, rules, regulations and
requirements of any Governmental Authority applicable to its properties, except
where the failure to do so, either individually or in the aggregate, would not
reasonably be expected to result in a Material Adverse Effect.

     SECTION 5.5 Payment of Obligations. The Borrower will, and will cause each
of its Subsidiaries to, pay and discharge at or before maturity, all of its
material obligations and material liabilities (including without limitation all
tax liabilities and claims that could result in a statutory Lien) before the
same shall become delinquent or in default, except where (a) the

                                       49

<PAGE>

validity or amount thereof is being contested in good faith by appropriate
proceedings, (b) the Borrower or such Subsidiary has set aside on its books
adequate reserves with respect thereto in accordance with GAAP and (c) the
failure to make payment pending such contest could not reasonably be expected to
result in a Material Adverse Effect.

     SECTION 5.6 Books and Records. The Borrower will, and will cause each of
its Subsidiaries to, keep proper books of record and account in which full, true
and correct entries shall be made of all dealings and transactions in relation
to its business and activities to the extent necessary to prepare the
consolidated financial statements of Borrower in conformity with GAAP.

     SECTION 5.7 Visitation, Inspection, Etc. The Borrower will, and will cause
each of its Subsidiaries to, permit any representative of the Administrative
Agent or any Lender (at the cost of the Administrative Agent or such Lender
unless an Event of Default exists), to visit and inspect its properties, to
examine its books and records and to make copies and take extracts therefrom,
and to discuss its affairs, finances and accounts with any of its officers and
with its independent certified public accountants, all at such reasonable times
and as often as the Administrative Agent or any Lender may reasonably request
after reasonable prior notice to the Borrower.

     SECTION 5.8 Maintenance of Properties; Insurance. The Borrower will, and
will cause each of its Subsidiaries to, (a) keep and maintain all property
material to the conduct of its business in good working order and condition,
ordinary wear and tear and casualty loss excepted, except where the failure to
do so, either individually or in the aggregate, would not reasonably be expected
to result in a Material Adverse Effect and (b) maintain with financially sound
and reputable insurance companies, insurance with respect to its properties and
business, and the properties and business of its Subsidiaries, against loss or
damage of the kinds customarily insured against by companies of similar size in
the same or similar businesses operating in the same or similar locations, which
are similarly situated.

     SECTION 5.9 Use of Proceeds and Letters of Credit. The Borrower will use
the proceeds of Revolving Loans to finance working capital needs, for
acquisitions permitted hereunder, and for general corporate purposes of the
Borrower and its Subsidiaries. The Borrower shall use the proceeds of the Term
Loan and the Revolving Loans to pay the purchase price under the Purchase
Agreement, fees and expenses related to the Acquisition, and fees and expenses
in connection with the Loan Documents and the transactions contemplated thereby.
Letters of Credit shall be used for general corporate purposes.

     SECTION 5.10 Additional Subsidiaries. If any additional Subsidiary is
acquired or formed after the Closing Date, the Borrower will, within ten (10)
business days after such Subsidiary is acquired or formed (a) notify the
Administrative Agent thereof, (b) [if such Subsidiary is not an Insurance
Company] cause such Subsidiary to become a Subsidiary Loan Party by executing
agreements in the form of Annex I to Exhibit E and Annex I to Exhibit F in form
and substance satisfactory to the Administrative Agent, (c) [if such Subsidiary
is not an Insurance Company] cause such new Subsidiary to execute a Subsidiary
Security Agreement in substantially the same form and granting a security
interest in substantially the same collateral as the Subsidiary Security
Agreements executed on the Closing Date, and (d) cause such Subsidiary to
deliver

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simultaneously therewith similar documents applicable to such Subsidiary
required under Section 3.1 as reasonably requested by the Administrative Agent.

     SECTION 5.11 Additional Accounts. Within 90 days after the Closing Date,
the Borrower will use its best efforts to move its primary treasury management
arrangements to SunTrust Bank and will thereafter maintain its primary treasury
management arrangements and primary deposit accounts with SunTrust Bank (or
financial institutions reasonably acceptable to SunTrust Bank) it being
understood that Borrower and its Subsidiaries will maintain other accounts and
services with other financial institutions to the extent it is commercially
reasonable to do so.

                                   ARTICLE VI

                               FINANCIAL COVENANTS

     The Borrower covenants and agrees that so long as any Lender has a
Commitment hereunder or the principal of or interest on or any Loan remains
unpaid or any fee or any LC Disbursement remains unpaid or any Letter of Credit
remains outstanding:

     SECTION 6.1 Fixed Charge Coverage Ratio. The Borrower will have on a
consolidated basis, as of the end of each fiscal quarter of the Borrower
(measured for such fiscal quarter and the three immediately preceding fiscal
quarters), commencing with the fiscal quarter ending March 31, 2006, a Fixed
Charge Coverage Ratio of not less than 1.5 to 1.0.

     SECTION 6.2 Consolidated Tangible Net Worth. The Borrower will not permit
its Consolidated Tangible Net Worth at any time to be less than $85,000,000,
plus 50% of Consolidated Net Income on a cumulative basis for all preceding
fiscal quarters of the Borrower, commencing with the fiscal quarter ending March
31, 2006; provided, that if Consolidated Net Income is negative in any fiscal
quarter the amount added for such fiscal quarter shall be zero and such negative
Consolidated Net Income shall not reduce the amount of Consolidated Net Income
added from any previous fiscal quarter. The amount of Consolidated Tangible Net
Worth set forth above shall be increased by 100% of the amount by which the
Borrower's "total stockholders' equity" is increased as a result of any public
or private offering of common stock of the Borrower after the Closing Date.

     SECTION 6.3 Net Premiums Written to Surplus. Each Insurance Company will
severally maintain, as of the last day of each fiscal quarter commencing with
the fiscal quarter ending March 31, 2006, a ratio of Net Premiums Written
(measured for such fiscal quarter and the three immediately preceding fiscal
quarters) to Surplus/Surplus as Regards Policyholders (at the end of each fiscal
quarter) not to exceed 3.0 to 1.0.

     SECTION 6.4 Combined Ratio. The Insurance Companies will maintain on a
consolidated basis, as of the last day of each fiscal quarter (measured for such
fiscal quarter and the three immediately preceding fiscal quarters), commencing
with the fiscal quarter ending March 31, 2006, a Combined Ratio not to exceed
95%.

     SECTION 6.5 Minimum Risk Based Capital Ratio. Each Insurance Company will
severally maintain, as of the end of each calendar year, commencing with the
calendar year ending December 31, 2006, a Risk Based Capital Ratio of not less
than 2.15 to 1.0.

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                                  ARTICLE VII

                               NEGATIVE COVENANTS

     The Borrower covenants and agrees that so long as any Lender has a
Commitment hereunder or the principal of or interest on any Loan remains unpaid
or any fee or any LC Disbursement remains unpaid or any Letter of Credit remains
outstanding:

     SECTION 7.1 Indebtedness. The Borrower will not, and will not permit any of
its Subsidiaries to, create, incur, assume or suffer to exist any Indebtedness,
except:

          (a) Indebtedness created pursuant to the Loan Documents;

          (b) Indebtedness existing on the date hereof and set forth on Schedule
     7.1 and extensions, renewals and replacements of any such Indebtedness that
     do not increase the outstanding principal amount thereof (immediately prior
     to giving effect to such extension, renewal or replacement) or shorten the
     maturity or the weighted average life thereof;

          (c) Indebtedness of the Borrower owing to any Subsidiary and of any
     Subsidiary owing to the Borrower or any other Subsidiary;

          (d) Guarantees by the Borrower of Indebtedness of any Subsidiary and
     by any Subsidiary of Indebtedness of the Borrower or any other Subsidiary;

          (e) Indebtedness constituting Performance Payments as such term is
     defined in the Purchase Agreement, not to exceed in the aggregate
     $4,000,000;

          (f) endorsements for collection, deposit or negotiation in each case
     incurred in the ordinary course of business;

          (g) current trade liabilities on open account for the purchase price
     of services, materials and supplies incurred by the Borrower and its
     Subsidiaries in the ordinary course of business (not as a result of
     borrowing);

          (h) Indebtedness in respect of obligations under Hedging Agreements
     permitted by Section 7.10; and

          (i) other Indebtedness in an aggregate principal amount not to exceed
     $3,000,000 at any time outstanding.

     SECTION 7.2 Negative Pledge. The Borrower will not, and will not permit any
of its Subsidiaries to, create, incur, assume or suffer to exist any Lien on any
of its assets or property now owned or hereafter acquired, except:

          (a) Liens created in favor of the Administrative Agent for the benefit
     of the Lenders pursuant to the Loan Documents;

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<PAGE>

          (b) Permitted Encumbrances;

          (c) any Liens on any property or asset of the Borrower or any
     Subsidiary existing on the Closing Date set forth on Schedule 7.2;
     provided, that such Lien shall not apply to any other property or asset of
     the Borrower or any Subsidiary;

          (d) purchase money Liens upon or in any fixed or capital assets to
     secure the purchase price of such capital assets (including Liens securing
     any Capital Lease Obligations); provided, that (i) such Lien attaches to
     such asset concurrently or within 90 days after the acquisition thereof;
     (ii) such Lien does not extend to any other asset; and (iii) the
     Indebtedness secured thereby does not exceed the cost of acquiring such
     capital assets;

          (e) any Lien (i) existing on any asset of any Person at the time such
     Person becomes a Subsidiary of the Borrower, (ii) existing on any asset of
     any Person at the time such Person is merged with or into the Borrower or
     any Subsidiary of the Borrower or (iii) existing on any asset prior to the
     acquisition thereof by the Borrower or any Subsidiary of the Borrower;
     provided, that any such Lien was not created in the contemplation of any of
     the foregoing and any such Lien secures only those obligations which it
     secures on the date that such Person becomes a Subsidiary or the date of
     such merger or the date of such acquisition;

          (f) Liens in connection with permitted Hedging Agreements;

          (g) Liens in connection with the financing of insurance premiums only
     to the extent of such Lien attaches only to the proceeds of the insurance
     policies financed;

          (h) Liens encumbering customary initial deposits and margin deposits,
     and similar Liens and margin deposits, and similar Liens attaching to
     commodity trading accounts or other brokerage accounts incurred in the
     ordinary course of business;

          (i) Liens securing reimbursement obligations in respect of documentary
     letters of credit or bankers' acceptances; provided that such Liens attach
     only to the documents, the goods covered thereby and proceeds thereof;

          (j) Licenses, sublicenses, leases or subleases granted to third
     parties in the ordinary course of business not interfering with the
     business of the Borrower or any of its Subsidiaries;

          (k) rights of setoff or bankers' Liens upon deposits of cash in favor
     of banks or other depository institutions and Liens associated with
     overdraft protection and netting services;

          (l) Liens deemed to exist in connection with permitted repurchase
     obligations or set-off rights;

          (m) precautionary financing statements filed in connection with
     operating leases;

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<PAGE>

          (n) Other Liens not specifically listed above securing Indebtedness or
     encumbering assets not to exceed $250,000 outstanding at any one time in
     the aggregate; and

          (o) extensions, renewals, or replacements of any Lien referred to in
     paragraphs (a) through (n) of this Section; provided, that the principal
     amount of the Indebtedness secured thereby is not increased and that any
     such extension, renewal or replacement is limited to the assets originally
     encumbered thereby.

     SECTION 7.3 Fundamental Changes.

          (a) The Borrower will not, and will not permit any Subsidiary to,
     merge into or consolidate into any other Person, or permit any other Person
     to merge into or consolidate with it, or sell, lease, transfer or otherwise
     dispose of (in a single transaction or a series of transactions) all or
     substantially all of its assets (in each case, whether now owned or
     hereafter acquired) or all or substantially all of the stock of any of its
     Subsidiaries (in each case, whether now owned or hereafter acquired) or
     liquidate or dissolve; provided, that if at the time thereof and
     immediately after giving effect thereto, no Default or Event of Default
     shall have occurred and be continuing (i) the Borrower or any Subsidiary
     may merge with a Person if the Borrower (or a Subsidiary Loan Party, if the
     Borrower is not a party to such merger) is the surviving Person, (ii) any
     Subsidiary may merge into another Subsidiary; provided, that if any party
     to such merger is a Subsidiary Loan Party, the Subsidiary Loan Party shall
     be the surviving Person, (iii) any Subsidiary may sell, transfer, lease or
     otherwise dispose of all or substantially all of its assets to the Borrower
     or to a Subsidiary Loan Party; (iv) and Insurance Company Subsidiary may
     merge into another Insurance Company Subsidiary; provided, that any such
     merger involving a Person that is not a wholly-owned Subsidiary immediately
     prior to such merger shall not be permitted unless also permitted by
     Section 7.4.

          (b) The Borrower will not, and will not permit any of its Subsidiaries
     to, engage to any material extent in any business other than businesses of
     the type conducted by the Borrower and its Subsidiaries on the Closing Date
     and businesses reasonably related thereto.

     SECTION 7.4 Investments, Loans, Etc. The Borrower will not, and will not
permit any of its Subsidiaries to, purchase, hold or acquire (including pursuant
to any merger with any Person that was not a wholly-owned Subsidiary prior to
such merger), any common stock, evidence of indebtedness or other securities
(including any option, warrant, or other right to acquire any of the foregoing)
of, make or permit to exist any loans or advances to, Guarantee any obligations
of, or make or permit to exist any investment or any other interest in, any
other Person (all of the foregoing being collectively called "INVESTMENTS"), or
purchase or otherwise acquire (in one transaction or a series of transactions)
any assets of any other Person that constitute a business unit, except:

          (a) Investments (other than Permitted Investments) existing on the
     date hereof and set forth on Schedule 7.4 (including Investments in
     Subsidiaries);

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<PAGE>

          (b) Permitted Investments;

          (c) Guarantees constituting Indebtedness permitted by Section 7.1;

          (d) loans or advances to employees, officers or directors of the
     Borrower or any Subsidiary in the ordinary course of business for travel,
     relocation and related expenses;

          (e) Hedging Agreements permitted by Section 7.10;

          (f) Investments by Loan Parties and Subsidiaries in other Loan Parties
     and Subsidiaries;

          (g) Permitted Acquisitions;

          (h) Investments in deposit accounts opened in the ordinary course of
     business;

          (i) Investments that could have been made as Restricted Payments under
     Section 7.5;

          (j) notes taken in the ordinary course of business for unpaid
     insurance claims owed to Borrower or its Subsidiaries; and

          (k) other Investments which do not exceed $1,000,000 in the aggregate
     at any time. For purposes of calculation, the amount of such Investment
     outstanding at any time shall be the aggregate cash Investment less all
     cash returns, cash dividends and cash distributions (or the fair market
     value of any non-cash returns, dividends and distributions) received by
     such Person.

     SECTION 7.5 Restricted Payments. The Borrower will not, and will not permit
its Subsidiaries to, declare or make, or agree to pay or make, directly or
indirectly, any dividend on any class of its stock, or make any payment on
account of, or set apart assets for a sinking or other analogous fund for, the
purchase, redemption, retirement, defeasance or other acquisition of, any shares
of common stock or Indebtedness subordinated to the Obligations of the Borrower
or any options, warrants, or other rights to purchase such common stock or such
Indebtedness, whether now or hereafter outstanding (each, a "RESTRICTED
PAYMENT"), except for (i) dividends payable by the Borrower solely in shares of
any class of its common stock and (ii) Restricted Payments made by any
Subsidiary to the Borrower or to another Subsidiary; provided, that no Default
or Event of Default has occurred and is continuing at the time such dividend is
paid.

     SECTION 7.6 Sale of Assets. The Borrower will not, and will not permit any
of its Subsidiaries to, convey, sell, lease, assign, transfer or otherwise
dispose of, any of its assets, Licenses, business or property, whether now owned
or hereafter acquired, or, in the case of any Subsidiary, issue or sell any
shares of such Subsidiary's common stock to any Person other than the Borrower
or a Subsidiary Loan Party, except:

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<PAGE>

          (a) the sale or other disposition for fair market value of obsolete or
     worn out property or other property not necessary for operations disposed
     of in the ordinary course of business;

          (b) the sale of Permitted Investments in the ordinary course of
     business;

          (c) the sale or disposition of real estate owned by Borrower as of the
     Closing Date; and

          (d) the sale or other disposition of such assets in an aggregate
     amount not to exceed $500,000 (based upon sale price) in any fiscal year of
     the Borrower.

     SECTION 7.7 Transactions with Affiliates. The Borrower will not, and will
not permit any of its Subsidiaries to, sell, lease or otherwise transfer any
property or assets to, or purchase, lease or otherwise acquire any property or
assets from, or otherwise engage in any other transactions with, any of its
Affiliates, except (a) in the ordinary course of business at prices and on terms
and conditions not less favorable to the Borrower or such Subsidiary than could
be obtained on an arm's-length basis from unrelated third parties, (b)
transactions between or among the Borrower and its Subsidiaries not involving
any other Affiliates, (c) any Restricted Payment permitted by Section 7.5, and
(d) payments under agreements as set forth in Schedule 7.7.

     SECTION 7.8 Restrictive Agreements. The Borrower will not, and will not
permit any Subsidiary to, directly or indirectly, enter into, incur or permit to
exist any agreement that prohibits, restricts or imposes any condition upon (a)
the ability of the Borrower or any Subsidiary to create, incur or permit any
Lien upon any of its assets or properties, whether now owned or hereafter
acquired, or (b) the ability of any Subsidiary to pay dividends or other
distributions with respect to its common stock, to make or repay loans or
advances to the Borrower or any other Subsidiary, to Guarantee Indebtedness of
the Borrower or any other Subsidiary or to transfer any of its property or
assets to the Borrower or any Subsidiary of the Borrower; provided, that (i) the
foregoing shall not apply to restrictions or conditions imposed by law or by
this Agreement or any other Loan Document, (ii) the foregoing shall not apply to
customary restrictions and conditions contained in agreements relating to the
sale of a Subsidiary pending such sale, provided such restrictions and
conditions apply only to the Subsidiary that is sold and such sale is permitted
hereunder, (iii) clause (a) shall not apply to restrictions or conditions
imposed by any agreement relating to secured Indebtedness permitted by this
Agreement if such restrictions and conditions apply only to the property or
assets securing such Indebtedness and (iv) clause (a) shall not apply to
customary provisions in leases and licenses restricting the assignment thereof
or the transfer of assets being licensed.

     SECTION 7.9 Sale and Leaseback Transactions. The Borrower will not, and
will not permit any of the Subsidiaries to, enter into any arrangement, directly
or indirectly, whereby it shall sell or transfer any property, real or personal,
used or useful in its business, whether now owned or hereinafter acquired, and
thereafter rent or lease such property or other property that it intends to use
for substantially the same purpose or purposes as the property sold or
transferred.

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     SECTION 7.10 Hedging Agreements. The Borrower will not, and will not permit
any of the Subsidiaries to, enter into any Hedging Agreement without the written
consent of the Administrative Agent.

     SECTION 7.11 Amendment to Material Documents. The Borrower will not and
will not permit any Subsidiary to, amend, modify or waive any of its rights in a
manner materially adverse to the Lenders under its certificate of incorporation,
bylaws or other organizational documents.

     SECTION 7.12 Accounting Changes. The Borrower will not, and will not permit
any Subsidiary to, make any significant change in accounting treatment or
reporting practices, except as required by GAAP or SAP or approved by Borrower's
independent auditors, or change the fiscal year of the Borrower or of any
Subsidiary, except a change (after May 31, 2007) of the fiscal year of Borrower
ending December 31st and a change the fiscal year of a Subsidiary to conform its
fiscal year to that of the Borrower.

     SECTION 7.13 Capital Expenditures. Excluding Permitted Acquisitions, the
Borrower will not, and will not permit any Subsidiary to make Capital
Expenditures in any fiscal year which exceeds $1,500,000 in the aggregate.

                                  ARTICLE VIII

                                EVENTS OF DEFAULT

     SECTION 8.1 Events of Default. If any of the following events (each an
"EVENT OF DEFAULT") shall occur:

          (a) the Borrower shall fail to pay any principal of any Loan or of any
     reimbursement obligation in respect of any LC Disbursement when and as the
     same shall become due and payable, whether at the due date thereof or at a
     date fixed for prepayment or otherwise, and such failure shall continue
     unremedied for a period of three (3) Business Days; or

          (b) the Borrower shall fail to pay any interest on any Loan or any fee
     or any other amount (other than an amount payable under clause (a) of this
     Article) payable under this Agreement or any other Loan Document, when and
     as the same shall become due and payable, and such failure shall continue
     unremedied for a period of five (5) Business Days; or

          (c) any representation or warranty made or deemed made by or on behalf
     of the Borrower or any Subsidiary in or in connection with this Agreement
     or any other Loan Document (including the Schedules attached thereto) and
     any amendments or modifications hereof, or in any certificate, report,
     financial statement or other document submitted to the Administrative Agent
     or the Lenders by any Loan Party or any representative of any Loan Party
     pursuant to this Agreement or any other Loan Document shall be incorrect in
     any material respect when made; or

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<PAGE>

          (d) the Borrower shall fail to observe or perform any covenant or
     agreement contained in Section 5.3 (with respect to the Borrower's
     existence) or Articles VI or VII, provided that a failure to observe or
     perform any covenant or agreement in Article VII shall not constitute an
     Event of Default if such failure is capable of being cured and the Borrower
     cures such failure within five (5) Business Days of the earlier of its
     actual knowledge thereof or written notice thereof; or

          (e) any Loan Party shall fail to observe or perform any covenant or
     agreement contained in this Agreement (other than those referred to in
     clauses (a), (b) and (d) above), and such failure shall remain unremedied
     for 30 days after the earlier of (i) any officer of the Borrower becomes
     aware of such failure, or (ii) written notice thereof shall have been given
     to the Borrower by the Administrative Agent or any Lender; or

          (f) the Borrower or any Subsidiary (whether as primary obligor or as
     guarantor or other surety) shall fail to pay any principal of or premium or
     interest on any Material Indebtedness that is outstanding, when and as the
     same shall become due and payable (whether at scheduled maturity, required
     prepayment, acceleration, demand or otherwise), and such failure shall
     continue after the applicable grace period, if any, specified in the
     agreement or instrument evidencing such Indebtedness; or any other event
     shall occur or condition shall exist under any agreement or instrument
     relating to such Indebtedness and shall continue after the applicable grace
     period, if any, specified in such agreement or instrument, if the effect of
     such event or condition is to accelerate, or permit the acceleration of,
     the maturity of such Indebtedness; or any such Indebtedness shall be
     declared to be due and payable; or required to be prepaid or redeemed
     (other than by a regularly scheduled required prepayment or redemption),
     purchased or defeased, or any offer to prepay, redeem, purchase or defease
     such Material Indebtedness shall be required to be made, in each case prior
     to the stated maturity thereof; or

          (g) the Borrower or any Subsidiary shall (i) commence a voluntary case
     or other proceeding or file any petition seeking liquidation,
     reorganization or other relief under any federal, state or foreign
     bankruptcy, insolvency or other similar law now or hereafter in effect or
     seeking the appointment of a custodian, trustee, receiver, liquidator or
     other similar official of it or any substantial part of its property, (ii)
     consent to the institution of, or fail to contest in a timely and
     appropriate manner, any proceeding or petition described in clause (i) of
     this Section, (iii) apply for or consent to the appointment of a custodian,
     trustee, receiver, liquidator or other similar official for the Borrower or
     any such Subsidiary or for a substantial part of its assets, (iv) file an
     answer admitting the material allegations of a petition filed against it in
     any such proceeding, (v) make a general assignment for the benefit of
     creditors, or (vi) take any action for the purpose of effecting any of the
     foregoing; or

          (h) an involuntary proceeding shall be commenced or an involuntary
     petition shall be filed seeking (i) liquidation, reorganization or other
     relief in respect of the Borrower or any Subsidiary or its debts, or any
     substantial part of its assets, under any federal, state or foreign
     bankruptcy, insolvency or other similar law now or hereafter in effect or
     (ii) the appointment of a custodian, trustee, receiver, liquidator or other
     similar official for the Borrower or any Subsidiary or for a substantial
     part of its assets, and in

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<PAGE>

     any such case, such proceeding or petition shall remain undismissed for a
     period of 60 days or an order or decree approving or ordering any of the
     foregoing shall be entered; or

          (i) (i) any insurance commissioner or any other state insurance
     regulatory official shall intervene through legal proceedings and assume
     control of any material portion of the business or assets of any Insurance
     Company or (ii) any insurance commissioner or any state insurance
     regulatory official shall initiate any legal proceeding not dismissed or
     stayed within 90 days with respect to a material portion of the business of
     any Insurance Company, or the Borrower or any Subsidiary shall
     intentionally facilitate or take any affirmative action toward facilitating
     such intervention, excluding therefrom normal regulatory practices
     including the review and approval of rates and forms, market conduct
     examinations and other regular examinations; or

          (j) the Borrower or any Subsidiary shall admit in writing its
     inability to pay its debts as they become due; or

          (k) an ERISA Event shall have occurred that, when taken together with
     other ERISA Events that have occurred, could reasonably be expected to
     result in liability to the Borrower and the Subsidiaries in an aggregate
     amount exceeding $500,000; or

          (l) any judgment or order for the payment of money in excess of
     $1,000,000 in the aggregate shall be rendered against the Borrower or any
     Subsidiary, and either (i) enforcement proceedings shall have been
     commenced by any creditor upon such judgment or order or (ii) there shall
     be a period of 45 consecutive days during which a stay of enforcement of
     such judgment or order, by reason of a pending appeal, settlement or
     otherwise, shall not be in effect; or

          (m) any non-monetary judgment or order shall be rendered against the
     Borrower or any Subsidiary that could reasonably be expected to have a
     Material Adverse Effect, and there shall be a period of 45 consecutive days
     during which a stay of enforcement of such judgment or order, by reason of
     a pending appeal or otherwise, shall not be in effect; or

          (n) a Change in Control shall occur or exist; or

          (o) any provision of any Subsidiary Guarantee Agreement or Indemnity
     and Contribution Agreement, shall for any reason cease to be valid and
     binding on, or enforceable against, any Subsidiary Loan Party, or any
     Subsidiary Loan Party shall so state in writing, or any Subsidiary Loan
     Party shall seek to terminate its Subsidiary Guarantee Agreement or
     Indemnity and Contribution Agreement; or

          (p) a default under any of the Security Documents exists, subject to
     any applicable cure periods or grace periods therein;

then, and in every such event (other than an event with respect to the Borrower
described in clause (g) or (h) of this Section) and at any time thereafter
during the continuance of such event, the Administrative Agent may, and upon the
written request of the Required Lenders shall, by notice to the Borrower, take
any or all of the following actions, at the same or different times: (i)

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terminate the Commitments, whereupon the Commitment of each Lender shall
terminate immediately; (ii) declare the principal of and any accrued interest on
the Loans, and all other Obligations owing hereunder, to be, whereupon the same
shall become due and payable immediately, without presentment, demand, protest
or other notice of any kind, all of which are hereby waived by the Borrower and
(iii) exercise all remedies contained in any other Loan Document; and that, if
an Event of Default specified in either clause (g) or (h) shall occur, the
Commitments shall automatically terminate and the principal of the Loans then
outstanding, together with accrued interest thereon, and all fees, and all other
Obligations shall automatically become due and payable, without presentment,
demand, protest or other notice of any kind, all of which are hereby waived by
the Borrower.

                                   ARTICLE IX

                            THE ADMINISTRATIVE AGENT

     SECTION 9.1 Appointment of Administrative Agent.

          (a) Each Lender irrevocably appoints SunTrust Bank as the
     Administrative Agent and authorizes it to take such actions on its behalf
     and to exercise such powers as are delegated to the Administrative Agent
     under this Agreement and the other Loan Documents, together with all such
     actions and powers that are reasonably incidental thereto. The
     Administrative Agent may perform any of its duties hereunder by or through
     any one or more sub-agents appointed by the Administrative Agent. The
     Administrative Agent and any such sub-agent may perform any and all of its
     duties and exercise its rights and powers through their respective Related
     Parties. The exculpatory provisions set forth in this Article shall apply
     to any such sub-agent and the Related Parties of the Administrative Agent
     and any such sub-agent and shall apply to their respective activities in
     connection with the syndication of the credit facilities provided for
     herein as well as activities as Administrative Agent.

          (b) The Issuing Bank shall act on behalf of the Lenders with respect
     to any Letters of Credit issued by it and the documents associated
     therewith until such time and except for so long as the Administrative
     Agent may agree at the request of the Required Lenders to act for the
     Issuing Bank with respect thereto; provided, that the Issuing Bank shall
     have all the benefits and immunities (i) provided to the Administrative
     Agent in this Article IX with respect to any acts taken or omissions
     suffered by the Issuing Bank in connection with Letters of Credit issued by
     it or proposed to be issued by it and the application and agreements for
     Letters of Credit pertaining to the Letters of Credit as fully as the term
     "Administrative Agent" as used in this Article IX included the Issuing Bank
     with respect to such acts or omissions and (ii) as additionally provided in
     this Agreement with respect to the Issuing Bank.

     SECTION 9.2 Nature of Duties of Administrative Agent. The Administrative
Agent shall not have any duties or obligations except those expressly set forth
in this Agreement and the other Loan Documents. Without limiting the generality
of the foregoing, (a) the Administrative Agent shall not be subject to any
fiduciary or other implied duties, regardless of whether a Default or an Event
of Default has occurred and is continuing, (b) the Administrative Agent shall

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not have any duty to take any discretionary action or exercise any discretionary
powers, except those discretionary rights and powers expressly contemplated by
the Loan Documents that the Administrative Agent is required to exercise in
writing by the Required Lenders (or such other number or percentage of the
Lenders as shall be necessary under the circumstances as provided in Section
10.2), and (c) except as expressly set forth in the Loan Documents, the
Administrative Agent shall not have any duty to disclose, and shall not be
liable for the failure to disclose, any information relating to the Borrower or
any of its Subsidiaries that is communicated to or obtained by the
Administrative Agent or any of its Affiliates in any capacity. The
Administrative Agent shall not be liable for any action taken or not taken by it
with the consent or at the request of the Required Lenders (or such other number
or percentage of the Lenders as shall be necessary under the circumstances as
provided in Section 10.2) or in the absence of its own gross negligence or
willful misconduct. The Administrative Agent shall not be deemed to have
knowledge of any Default or Event of Default unless and until written notice
thereof is given to the Administrative Agent by the Borrower or any Lender, and
the Administrative Agent shall not be responsible for or have any duty to
ascertain or inquire into (i) any statement, warranty or representation made in
or in connection with any Loan Document, (ii) the contents of any certificate,
report or other document delivered hereunder or thereunder or in connection
herewith or therewith, (iii) the performance or observance of any of the
covenants, agreements, or other terms and conditions set forth in any Loan
Document, (iv) the validity, enforceability, effectiveness or genuineness of any
Loan Document or any other agreement, instrument or document, or (v) the
satisfaction of any condition set forth in Article III or elsewhere in any Loan
Document, other than to confirm receipt of items expressly required to be
delivered to the Administrative Agent.

     SECTION 9.3 Lack of Reliance on the Administrative Agent. Each of the
Lenders, the Swingline Lender and the Issuing Bank acknowledges that it has,
independently and without reliance upon the Administrative Agent or any other
Lender and based on such documents and information as it has deemed appropriate,
made its own credit analysis and decision to enter into this Agreement. Each of
the Lenders, the Swingline Lender and the Issuing Bank also acknowledges that it
will, independently and without reliance upon the Administrative Agent or any
other Lender and based on such documents and information as it has deemed
appropriate, continue to make its own decisions in taking or not taking of any
action under or based on this Agreement, any related agreement or any document
furnished hereunder or thereunder.

     SECTION 9.4 Certain Rights of the Administrative Agent. If the
Administrative Agent shall request instructions from the Required Lenders with
respect to any action or actions (including the failure to act) in connection
with this Agreement, the Administrative Agent shall be entitled to refrain from
such act or taking such act, unless and until it shall have received
instructions from such Lenders; and the Administrative Agent shall not incur
liability to any Person by reason of so refraining. Without limiting the
foregoing, no Lender shall have any right of action whatsoever against the
Administrative Agent as a result of the Administrative Agent acting or
refraining from acting hereunder in accordance with the instructions of the
Required Lenders where required by the terms of this Agreement.

     SECTION 9.5 Reliance by Administrative Agent. The Administrative Agent
shall be entitled to rely upon, and shall not incur any liability for relying
upon, any notice, request, certificate, consent, statement, instrument, document
or other writing believed by it to be genuine

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and to have been signed, sent or made by the proper Person. The Administrative
Agent may also rely upon any statement made to it orally or by telephone and
believed by it to be made by the proper Person and shall not incur any liability
for relying thereon. The Administrative Agent may consult with legal counsel
(including counsel for the Borrower), independent public accountants and other
experts selected by it and shall not be liable for any action taken or not taken
by it in accordance with the advice of such counsel, accountants or experts.

     SECTION 9.6 The Administrative Agent in its Individual Capacity. The bank
serving as the Administrative Agent shall have the same rights and powers under
this Agreement and any other Loan Document in its capacity as a Lender as any
other Lender and may exercise or refrain from exercising the same as though it
were not the Administrative Agent; and the terms "Lenders", "Required Lenders",
"holders of Notes", or any similar terms shall, unless the context clearly
otherwise indicates, include the Administrative Agent in its individual
capacity. The bank acting as the Administrative Agent and its Affiliates may
accept deposits from, lend money to, and generally engage in any kind of
business with the Borrower or any Subsidiary or Affiliate of the Borrower as if
it were not the Administrative Agent hereunder.

     SECTION 9.7 Successor Administrative Agent.

          (a) The Administrative Agent may resign at any time by giving notice
     thereof to the Lenders and the Borrower. Upon any such resignation, the
     Required Lenders shall have the right to appoint a successor Administrative
     Agent, subject to the approval by the Borrower provided that no Event of
     Default shall exist at such time. If no successor Administrative Agent
     shall have been so appointed, and shall have accepted such appointment
     within 30 days after the retiring Administrative Agent gives notice of
     resignation, then the retiring Administrative Agent may, on behalf of the
     Lenders and the Issuing Bank, appoint a successor Administrative Agent,
     which shall be a commercial bank organized under the laws of the United
     States of America or any state thereof or a bank which maintains an office
     in the United States, having a combined capital and surplus of at least
     $500,000,000.

          (b) Upon the acceptance of its appointment as the Administrative Agent
     hereunder by a successor, such successor Administrative Agent shall
     thereupon succeed to and become vested with all the rights, powers,
     privileges and duties of the retiring Administrative Agent, and the
     retiring Administrative Agent shall be discharged from its duties and
     obligations under this Agreement and the other Loan Documents. If within 45
     days after written notice is given of the retiring Administrative Agent's
     resignation under this Section no successor Administrative Agent shall have
     been appointed and shall have accepted such appointment, then on such 45th
     day (i) the retiring Administrative Agent's resignation shall become
     effective, (ii) the retiring Administrative Agent shall thereupon be
     discharged from its duties and obligations under the Loan Documents and
     (iii) the Required Lenders shall thereafter perform all duties of the
     retiring Administrative Agent under the Loan Documents until such time as
     the Required Lenders appoint a successor Administrative Agent as provided
     above. After any retiring Administrative Agent's resignation hereunder, the
     provisions of this Article IX shall continue in effect for the benefit of
     such retiring Administrative Agent and its representatives and agents in
     respect

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     of any actions taken or not taken by any of them while it was serving as
     the Administrative Agent.

                                    ARTICLE X

                                  MISCELLANEOUS

     SECTION 10.1 Notices.

          (a) Except in the case of notices and other communications expressly
     permitted to be given by telephone, all notices and other communications to
     any party herein to be effective shall be in writing and shall be delivered
     by hand or overnight courier service, mailed by certified or registered
     mail or sent by telecopy, as follows:

          To the Borrower:             First Acceptance Corporation
                                       3813 Green Hills Village Drive
                                       Nashville, Tennessee 37215
                                       Attention: Stephen J. Harrison,
                                                  President & CEO
                                       Telecopy Number: (615) 844-2835

                                       Kirkland & Ellis, LLP
                                       200 East Randolph Drive
                                       Chicago, Illinois 60610
                                       Attention: Louis R. Hernandez
                                       Telecopy Number: (312) 861-2200

                                       Flexpoint Partners, LLC
                                       676 North Michigan Avenue
                                       Suite 3300
                                       Chicago, Illinois 60611
                                       Attention: Stephen H. Haworth
                                       Telecopy Number: (312) 327-452

          To the Administrative Agent: SunTrust Bank
                                       201 Fourth Avenue North
                                       3rd Floor
                                       Nashville, Tennessee 37219
                                       Attention: Jim Sloan, Director
                                       Telecopy Number: (615) 748-5269

          With a copy to:              SunTrust Agency Services
                                       303 Peachtree Street, N. E.
                                       P.O. Box 4418
                                       Mail Code 7662
                                       Atlanta, Georgia 30303
                                       Attention: Doris Folsom

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                                       Telecopy Number: (404) 658-4906

          To the Issuing Bank:         SunTrust Bank
                                       25 Park Place, N. E./Mail Code 3706
                                       Atlanta, Georgia 30303
                                       Attention: Michael E. Sullivan
                                       Telecopy Number: (404) 588-8129

          To the Swingline Lender:     SunTrust Bank
                                       201 Fourth Avenue North
                                       3rd Floor
                                       Nashville, Tennessee 37219
                                       Attention: Jim Sloan, Director
                                       Telecopy Number: (615) 748-5269

          To any other Lender:         the address set forth in the
                                       Administrative Questionnaire

     Any party hereto may change its address or telecopy number for notices and
     other communications hereunder by notice to the other parties hereto. All
     such notices and other communications shall, when transmitted by overnight
     delivery, or faxed, be effective when delivered for overnight (next-day)
     delivery, or transmitted in legible form by facsimile machine,
     respectively, or if mailed, upon the third Business Day after the date
     deposited into the mails or if delivered, upon delivery; provided, that
     notices delivered to the Administrative Agent, the Issuing Bank or the
     Swingline Bank shall not be effective until actually received by such
     Person at its address specified in this Section.

          (b) Any agreement of the Administrative Agent and the Lenders herein
     to receive certain notices by telephone or facsimile is solely for the
     convenience and at the request of the Borrower. The Administrative Agent
     and the Lenders shall be entitled to rely on the authority of any Person
     purporting to be a Person authorized by the Borrower to give such notice
     and the Administrative Agent and Lenders shall not have any liability to
     the Borrower or other Person on account of any action taken or not taken by
     the Administrative Agent or the Lenders in reliance upon such telephonic or
     facsimile notice. The obligation of the Borrower to repay the Loans and all
     other Obligations hereunder shall not be affected in any way or to any
     extent by any failure of the Administrative Agent and the Lenders to
     receive written confirmation of any telephonic or facsimile notice or the
     receipt by the Administrative Agent and the Lenders of a confirmation which
     is at variance with the terms understood by the Administrative Agent and
     the Lenders to be contained in any such telephonic or facsimile notice.

     SECTION 10.2 Waiver; Amendments.

          (a) No failure or delay by the Administrative Agent, the Issuing Bank
     or any Lender in exercising any right or power hereunder or any other Loan
     Document, and no course of dealing between the Borrower and the
     Administrative Agent or any Lender, shall operate as a waiver thereof, nor
     shall any single or partial exercise of any such right

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<PAGE>

     or power or any abandonment or discontinuance of steps to enforce such
     right or power, preclude any other or further exercise thereof or the
     exercise of any other right or power hereunder or thereunder. The rights
     and remedies of the Administrative Agent, the Issuing Bank and the Lenders
     hereunder and under the other Loan Documents are cumulative and are not
     exclusive of any rights or remedies provided by law. No waiver of any
     provision of this Agreement or any other Loan Document or consent to any
     departure by the Borrower therefrom shall in any event be effective unless
     the same shall be permitted by paragraph (b) of this Section, and then such
     waiver or consent shall be effective only in the specific instance and for
     the purpose for which given. Without limiting the generality of the
     foregoing, the making of a Loan or the issuance of a Letter of Credit shall
     not be construed as a waiver of any Default or Event of Default, regardless
     of whether the Administrative Agent, any Lender or the Issuing Bank may
     have had notice or knowledge of such Default or Event of Default at the
     time.

          (b) No amendment or waiver of any provision of this Agreement or the
     other Loan Documents, nor consent to any departure by the Borrower
     therefrom, shall in any event be effective unless the same shall be in
     writing and signed by the Borrower and the Required Lenders or the Borrower
     and the Administrative Agent with the consent of the Required Lenders and
     then such waiver or consent shall be effective only in the specific
     instance and for the specific purpose for which given; provided, that no
     amendment or waiver shall: (i) increase the Commitment of any Lender
     without the written consent of such Lender, (ii) reduce the principal
     amount of any Loan or LC Disbursement or reduce the rate of interest
     thereon, or reduce any fees payable hereunder, without the written consent
     of each Lender affected thereby, (iii) postpone the date fixed for any
     payment of any principal of, or interest on, any Loan or LC Disbursement or
     interest thereon or any fees hereunder or reduce the amount of, waive or
     excuse any such payment, or postpone the scheduled date for the termination
     or reduction of any Commitment, without the written consent of each Lender
     affected thereby, (iv) change Section 2.21(b) or (c) in a manner that would
     alter the pro rata sharing of payments required thereby, without the
     written consent of each Lender, (v) change any of the provisions of this
     Section or the definition of "Required Lenders" or any other provision
     hereof specifying the number or percentage of Lenders which are required to
     waive, amend or modify any rights hereunder or make any determination or
     grant any consent hereunder, without the consent of each Lender; (vi)
     release any guarantor or limit the liability of any such guarantor under
     any guaranty agreement; (vii) release all or substantially all collateral
     (if any) securing any of the Obligations; provided further, that no such
     agreement shall amend, modify or otherwise affect the rights, duties or
     obligations of the Administrative Agent, the Swingline Bank or the Issuing
     Bank without the prior written consent of such Person.

     SECTION 10.3 Expenses; Indemnification.

          (a) Subject to the provisions of Section 5.7, the Borrower shall pay
     (i) all reasonable, out-of-pocket costs and expenses of the Administrative
     Agent and its Affiliates, including the reasonable fees, charges and
     disbursements of counsel for the Administrative Agent and its Affiliates,
     in connection with the syndication of the credit facilities provided for
     herein, the preparation and administration of the Loan Documents and any
     amendments, modifications or waivers thereof (whether or not the
     transactions

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<PAGE>

     contemplated in this Agreement or any other Loan Document shall be
     consummated), (ii) all reasonable out-of-pocket expenses incurred by the
     Issuing Bank in connection with the issuance, amendment, renewal or
     extension of any Letter of Credit or any demand for payment thereunder and
     (iii) all out-of-pocket costs and expenses (including, without limitation,
     the reasonable fees, charges and disbursements of outside counsel and the
     allocated cost of inside counsel) incurred by the Administrative Agent, the
     Issuing Bank or any Lender in connection with the enforcement or protection
     of its rights in connection with this Agreement, including its rights under
     this Section, or in connection with the Loans made or any Letters of Credit
     issued hereunder, including all such out-of-pocket expenses incurred during
     any workout, restructuring or negotiations in respect of such Loans or
     Letters of Credit.

          (b) The Borrower shall indemnify the Administrative Agent (and any
     sub-agent thereof), each Lender and the Issuing Bank, and each Related
     Party of any of the foregoing Persons (each such Person being called an
     "Indemnitee") against, and hold each Indemnitee harmless from, any and all
     losses, claims, damages, liabilities and related expenses (including the
     reasonable and documented fees, charges and disbursements of any outside
     counsel for any Indemnitee), incurred by any Indemnitee or asserted against
     any Indemnitee by any third party or by the Borrower or any other Loan
     Party arising out of, in connection with, or as a result of (i) the
     execution or delivery of this Agreement, any other Loan Document or any
     agreement or instrument contemplated hereby or thereby, the performance by
     the parties hereto of their respective obligations hereunder or thereunder
     or the consummation of the transactions contemplated hereby or thereby,
     (ii) any Loan or Letter of Credit or the use or proposed use of the
     proceeds therefrom (including any refusal by the Issuing Bank to honor a
     demand for payment under a Letter of Credit if the documents presented in
     connection with such demand do not strictly comply with the terms of such
     Letter of Credit), (iii) any actual or alleged presence or Release of
     Hazardous Materials on or from any property owned or operated by the
     Borrower or any of its Subsidiaries, or any Environmental Liability related
     in any way to the Borrower or any of its Subsidiaries, or (iv) any actual
     or prospective claim, litigation, investigation or proceeding relating to
     any of the foregoing, whether based on contract, tort or any other theory,
     whether brought by a third party or by the Borrower or any other Loan
     Party, and regardless of whether any Indemnitee is a party thereto,
     provided that such indemnity shall not, as to any Indemnitee, be available
     to the extent that such losses, claims, damages, liabilities or related
     expenses (x) are determined by a court of competent jurisdiction by final
     and nonappealable judgment to have resulted from the gross negligence or
     willful misconduct of such Indemnitee or (y) result from a claim brought by
     the Borrower or any other Loan Party against an Indemnitee for breach in
     bad faith of such Indemnitee's obligations hereunder or under any other
     Loan Document, if the Borrower or such Loan Party has obtained a final and
     nonappealable judgment in its favor on such claim as determined by a court
     of competent jurisdiction.

          (c) The Borrower shall pay, and hold the Administrative Agent and each
     of the Lenders harmless from and against, any and all stamp, documentary,
     and other similar taxes with respect to this Agreement and any other Loan
     Documents, any collateral described therein, or any payments due
     thereunder, and save the Administrative Agent

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<PAGE>

     and each Lender harmless from and against any and all liabilities with
     respect to or resulting from any delay or omission to pay such taxes.

          (d) To the extent that the Borrower fails to pay any amount required
     to be paid to the Administrative Agent, the Issuing Bank or the Swingline
     Lender under clauses (a), (b) or (c) hereof, each Lender severally agrees
     to pay to the Administrative Agent, the Issuing Bank or the Swingline
     Lender, as the case may be, such Lender's Pro Rata Share (determined as of
     the time that the unreimbursed expense or indemnity payment is sought) of
     such unpaid amount; provided, that the unreimbursed expense or indemnified
     payment, claim, damage, liability or related expense, as the case may be,
     was incurred by or asserted against the Administrative Agent, the Issuing
     Bank or the Swingline Lender in its capacity as such.

          (e) To the extent permitted by applicable law, the Borrower shall not
     assert, and hereby waives, any claim against any Indemnitee, on any theory
     of liability, for special, indirect, consequential or punitive damages (as
     opposed to actual or direct damages) arising out of, in connection with or
     as a result of, this Agreement or any agreement or instrument contemplated
     hereby, the transactions contemplated therein, any Loan or any Letter of
     Credit or the use of proceeds thereof.

          (f) All amounts due under this Section shall be payable promptly after
     written demand therefor; provided that such written request shall set forth
     such amounts in reasonable detail.

     SECTION 10.4 Successors and Assigns.

          (a) The provisions of this Agreement shall be binding upon and inure
     to the benefit of the parties hereto and their respective successors and
     assigns, except that the Borrower may not assign or transfer any of its
     rights hereunder without the prior written consent of each Lender (and any
     attempted assignment or transfer by the Borrower without such consent shall
     be null and void).

          (b) Any Lender may at any time assign to one or more assignees all or
     a portion of its rights and obligations under this Agreement and the other
     Loan Documents (including all or a portion of its Commitment and the Loans
     and LC Exposure at the time owing to it); provided, that (i) except in the
     case of an assignment to a Lender or an Affiliate (if the term Affiliate is
     defined as Control with more than 50%) of a Lender, each of the Borrower
     and the Administrative Agent (and, in the case of an assignment of all or a
     portion of a Commitment or any Lender's obligations in respect of its LC
     Exposure or Swingline Exposure, the Issuing Bank and the Swingline Lender)
     must give their prior written consent (which consent shall not be
     unreasonably withheld or delayed), (ii) except in the case of an assignment
     to a Lender or an Affiliate (if the term Affiliate is defined as Control
     with more than 50%) of a Lender or an assignment of the entire amount of
     the assigning Lender's Commitment hereunder or an assignment while an Event
     of Default has occurred and is continuing, the amount of the Commitment of
     the assigning Lender subject to each such assignment (determined as of the
     date the Assignment and Acceptance with respect to such assignment is
     delivered to the

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     Administrative Agent) shall not be less than $1,000,000 (unless the
     Borrower and the Administrative Agent shall otherwise consent), (iii) each
     partial assignment shall be made as an assignment of a proportionate part
     of all the assigning Lender's rights and obligations under this Agreement
     and the other Loan Documents, (iv) the assigning Lender and the assignee
     shall execute and deliver to the Administrative Agent an Assignment and
     Acceptance, together with a processing and recordation fee payable by the
     assigning Lender or the assignee (as determined between such Persons) in an
     amount equal to $3,500 and (v) such assignee, if it is not a Lender, shall
     deliver a duly completed Administrative Questionnaire to the Administrative
     Agent; provided, that any consent of the Borrower otherwise required
     hereunder shall not be required if an Event of Default has occurred and is
     continuing. Upon the execution and delivery of the Assignment and
     Acceptance and payment by such assignee to the assigning Lender of an
     amount equal to the purchase price agreed between such Persons, such
     assignee shall become a party to this Agreement and any other Loan
     Documents to which such assigning Lender is a party and, to the extent of
     such interest assigned by such Assignment and Acceptance, shall have the
     rights and obligations of a Lender under this Agreement, and the assigning
     Lender shall be released from its obligations hereunder to a corresponding
     extent (and, in the case of an Assignment and Acceptance covering all of
     the assigning Lender's rights and obligations under this Agreement, such
     Lender shall cease to be a party hereto but shall continue to be entitled
     to the benefits of Sections 2.18, 2.19 and 2.20 and 10.3. Upon the
     consummation of any such assignment hereunder, the assigning Lender, the
     Administrative Agent and the Borrower shall make appropriate arrangements
     to have new Notes issued if so requested by either or both the assigning
     Lender or the assignee. Any assignment or other transfer by a Lender that
     does not fully comply with the terms of this clause (b) shall be treated
     for purposes of this Agreement as a sale of a participation pursuant to
     clause (c) below.

          (c) Any Lender may at any time, without the consent of the Borrower,
     the Administrative Agent, the Issuing Bank or the Swingline Lender, sell
     participations to one or more banks or other entities (a "Participant") in
     all or a portion of such Lender's rights and obligations under this
     Agreement (including all or a portion of its Commitment, the Loans owing to
     it and its LC Exposure); provided, that (i) such Lender's obligations under
     this Agreement shall remain unchanged, (ii) such Lender shall remain solely
     responsible to the other parties hereto for the performance of its
     obligations hereunder, and (iii) the Borrower, the Administrative Agent,
     the Swingline Bank, the Issuing Bank and the other Lenders shall continue
     to deal solely and directly with such Lender in connection with such
     Lender's rights and obligations under this Agreement and the other Loan
     Documents. Any agreement between such Lender and the Participant with
     respect to such participation shall provide that such Lender shall retain
     the sole right and responsibility to enforce this Agreement and the other
     Loan Documents and the right to approve any amendment, modification or
     waiver of this Agreement and the other Loan Documents; provided, that such
     participation agreement may provide that such Lender will not, without the
     consent of the Participant, agree to any amendment, modification or waiver
     of this Agreement described in the first proviso of Section 10.2(b) that
     affects the Participant. The Borrower agrees that each Participant shall be
     entitled to the benefits of Sections 2.18, 2.19, 2.20 and 2.21 to the same
     extent as if it were a Lender hereunder and had acquired its interest by
     assignment pursuant to paragraph (b); provided, that no

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     Participant shall be entitled to receive any greater payment under Section
     2.18, 2.19, 2.20 or 2.21 than the applicable Lender would have been
     entitled to receive with respect to the participation sold to such
     Participant unless the sale of such participation is made with the
     Borrower's prior written consent. To the extent permitted by law, the
     Borrower agrees that each Participant shall be entitled to the benefits of
     Section 2.21 as though it were a Lender, provided, that such Participant
     agrees to share with the Lenders the proceeds thereof in accordance with
     Section 2.21 as fully as if it were a Lender hereunder. A Participant that
     would be a Foreign Lender if it were a Lender shall not be entitled to the
     benefits of Section 2.21 unless the Borrower is notified of such
     participation sold to such Participant and such Participant agrees, for the
     benefit of the Borrower, to comply with Section 2.21(e) as though it were a
     Lender hereunder.

          (d) Any Lender may at any time pledge or assign a security interest in
     all or any portion of its rights under this Agreement and its Notes (if
     any) to secure its obligations to a Federal Reserve Bank without complying
     with this Section; provided, that no such pledge or assignment shall
     release a Lender from any of its obligations hereunder or substitute any
     such pledgee or assignee for such Lender as a party hereto.

          (e) Notwithstanding anything to the contrary contained herein, any
     Lender (a "Granting Lender") may grant to a special purpose funding vehicle
     (an "SPV"), identified as such in writing from time to time by the Granting
     Lender to the Administrative Agent and the Borrower, the option to provide
     to the Borrower all or any part of any Loan that such Granting Lender would
     otherwise be obligated to make to the Borrower pursuant to this Agreement;
     provided, that (i) nothing herein shall constitute a commitment by any SPV
     to make any Loan and (ii) if an SPV elects not to exercise such option or
     otherwise fails to provide all or any part of any Loan, the Granting Lender
     shall be obligated to make such Loan pursuant to the terms hereof. The
     making of a Loan by an SPV hereunder shall utilize the Commitment of the
     Granting Lender to the same extent, and as if such Loan were made by such
     Granting Lender. Each party hereto hereby agrees that no SPV shall be
     liable for any indemnity or similar payment obligation under this Agreement
     (all liability for which shall remain with the Granting Lender). In
     furtherance of the foregoing, each party hereto hereby agrees (which
     agreement shall survive the termination of this Agreement) that, prior to
     the date that is one year and one day after the payment in full of all
     outstanding commercial paper or other senior indebtedness of any SPV, it
     will not institute against, or join any other person in instituting
     against, such SPV any bankruptcy, reorganization, arrangement, insolvency
     or liquidation proceedings under the laws of the United States or any State
     contrary in this Section 10.4, any SPV may (i) with notice to, but without
     the prior written consent of, the Borrower and the Administrative Agent and
     without paying any processing fee therefor, assign all or a portion of its
     interests in any Loans to the Granting Lender or to any financial
     institutions (consented to by the Borrower and the Administrative Agent)
     providing liquidity and/or credit support to or for the account of such SPV
     to support the funding or maintenance of Loans and (ii) disclose on a
     confidential basis any non-public information relating to its Loans to any
     rating agency, commercial paper dealer or provider of any surety, guarantee
     or credit or liquidity enhancement to such SPV. As this Section 10.4(e)
     applies to any particular SPV, this Section may not be amended without the
     written consent of such SPV.

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     SECTION 10.5 Governing Law; Jurisdiction; Consent to Service of Process.

          (a) This Agreement and the other Loan Documents shall be construed in
     accordance with and be governed by the law (without giving effect to the
     conflict of law principles thereof) of the State of New York.

          (b) The Borrower hereby irrevocably and unconditionally submits, for
     itself and its property, to the non-exclusive jurisdiction of the United
     States District Court of the Southern District of New York, and Supreme
     Court of the State of New York sitting in New York County and any appellate
     court from any thereof, in any action or proceeding arising out of or
     relating to this Agreement or any other Loan Document or the transactions
     contemplated hereby or thereby, or for recognition or enforcement of any
     judgment, and each of the parties hereto hereby irrevocably and
     unconditionally agrees that all claims in respect of any such action or
     proceeding may be heard and determined in such New York state court or, to
     the extent permitted by applicable law, such Federal court. Each of the
     parties hereto agrees that a final judgment in any such action or
     proceeding shall be conclusive and may be enforced in other jurisdictions
     by suit on the judgment or in any other manner provided by law. Nothing in
     this Agreement or any other Loan Document shall affect any right that the
     Administrative Agent, the Issuing Bank or any Lender may otherwise have to
     bring any action or proceeding relating to this Agreement or any other Loan
     Document against the Borrower or its properties in the courts of any
     jurisdiction.

          (c) The Borrower irrevocably and unconditionally waives any objection
     which it may now or hereafter have to the laying of venue of any such suit,
     action or proceeding described in paragraph (b) of this Section and brought
     in any court referred to in paragraph (b) of this Section. Each of the
     parties hereto irrevocably waives, to the fullest extent permitted by
     applicable law, the defense of an inconvenient forum to the maintenance of
     such action or proceeding in any such court.

          (d) Each party to this Agreement irrevocably consents to the service
     of process in the manner provided for notices in Section 10.1. Nothing in
     this Agreement or in any other Loan Document will affect the right of any
     party hereto to serve process in any other manner permitted by law.

     SECTION 10.6 WAIVER OF JURY TRIAL. EACH PARTY HERETO IRREVOCABLY WAIVES, TO
THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL
BY JURY IN ANY LEGAL PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF THIS
AGREEMENT OR ANY OTHER LOAN DOCUMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY OR
THEREBY (WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY). EACH PARTY HERETO
(A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY HAS
REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE
EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER, AND (B) ACKNOWLEDGES
THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THIS
AGREEMENT AND

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<PAGE>

THE OTHER LOAN DOCUMENTS BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND
CERTIFICATIONS IN THIS SECTION.

     SECTION 10.7 Right of Setoff. In addition to any rights now or hereafter
granted under applicable law and not by way of limitation of any such rights,
each Lender and the Issuing Bank shall have the right, at any time or from time
to time upon the occurrence and during the continuance of an Event of Default,
without prior notice to the Borrower, any such notice being expressly waived by
the Borrower to the extent permitted by applicable law, to set off and apply
against all deposits (general or special, time or demand, provisional or final,
but excluding all trust and tax withholding accounts) of the Borrower at any
time held or other obligations at any time owing by such Lender and the Issuing
Bank to or for the credit or the account of the Borrower against any and all
Obligations due and owing and held by such Lender or the Issuing Bank, as the
case may be, irrespective of whether such Lender or the Issuing Bank shall have
made demand hereunder. Each Lender and the Issuing Bank agree promptly to notify
the Administrative Agent and the Borrower after any such set-off and any
application made by such Lender and the Issuing Bank, as the case may be;
provided, that the failure to give such notice shall not affect the validity of
such set-off and application.

     SECTION 10.8 Counterparts; Integration. This Agreement may be executed by
one or more of the parties to this Agreement on any number of separate
counterparts (including by telecopy), and all of said counterparts taken
together shall be deemed to constitute one and the same instrument. This
Agreement, the other Loan Documents, and any separate letter agreement(s)
relating to any fees payable to the Administrative Agent constitute the entire
agreement among the parties hereto and thereto regarding the subject matters
hereof and thereof and supersede all prior agreements and understandings, oral
or written, regarding such subject matters.

     SECTION 10.9 Survival. All covenants, agreements, representations and
warranties made by the Borrower herein and in the certificates or other
instruments delivered in connection with or pursuant to this Agreement shall be
considered to have been relied upon by the other parties hereto and shall
survive the execution and delivery of this Agreement and the making of any Loans
and issuance of any Letters of Credit, regardless of any investigation made by
any such other party or on its behalf and notwithstanding that the
Administrative Agent, the Issuing Bank or any Lender may have had notice or
knowledge of any Default or incorrect representation or warranty at the time any
credit is extended hereunder, and shall continue in full force and effect as
long as the principal of or any accrued interest on any Loan or any fee or any
other amount payable under this Agreement is outstanding and unpaid or any
Letter of Credit is outstanding and so long as the Commitments have not expired
or terminated. The provisions of Sections 2.19, 2.20, 2.21, and 10.3 and Article
IX shall survive and remain in full force and effect regardless of the
consummation of the transactions contemplated hereby, the repayment of the
Loans, the expiration or termination of the Letters of Credit and the
Commitments or the termination of this Agreement or any provision hereof. All
representations and warranties made herein, in the certificates, reports,
notices, and other documents delivered pursuant to this Agreement shall survive
the execution and delivery of this Agreement and the other Loan Documents, and
the making of the Loans and the issuance of the Letters of Credit.

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<PAGE>

     SECTION 10.10 Severability. Any provision of this Agreement or any other
Loan Document held to be illegal, invalid or unenforceable in any jurisdiction,
shall, as to such jurisdiction, be ineffective to the extent of such illegality,
invalidity or unenforceability without affecting the legality, validity or
enforceability of the remaining provisions hereof or thereof; and the
illegality, invalidity or unenforceability of a particular provision in a
particular jurisdiction shall not invalidate or render unenforceable such
provision in any other jurisdiction.

     SECTION 10.11 Confidentiality. Each of the Administrative Agent, the
Issuing Bank and each Lender agrees to take normal and reasonable precautions to
maintain the confidentiality of any information provided to it by the Borrower
or any Subsidiary, except that such information may be disclosed (i) to any
Related Party of the Administrative Agent, the Issuing Bank or any such Lender,
including without limitation accountants, legal counsel and other advisors, (ii)
to the extent required by applicable laws or regulations or by any subpoena or
similar legal process, provided that Borrower shall be given prior written
notice of such disclosure to the extent permitted by law, regulations or such
process (iii) to the extent requested by any regulatory agency or authority,
(iv) to the extent that such information becomes publicly available other than
as a result of a breach of this Section, or which becomes available to the
Administrative Agent, the Issuing Bank, any Lender or any Related Party of any
of the foregoing on a nonconfidential basis from a source other than the
Borrower, (v) in connection with the exercise of any remedy hereunder or any
suit, action or proceeding relating to this Agreement or the enforcement of
rights hereunder, and (ix) subject to provisions substantially similar to this
Section 10.11, to any actual or prospective assignee or Participant, or (vi)
with the consent of the Borrower. Any Person required to maintain the
confidentiality of any information as provided for in this Section shall be
considered to have complied with its obligation to do so if such Person has
exercised the same degree of care to maintain the confidentiality of such
information as such Person would accord its own confidential information.

     SECTION 10.12 Interest Rate Limitation. Notwithstanding anything herein to
the contrary, if at any time the interest rate applicable to any Loan, together
with all fees, charges and other amounts which may be treated as interest on
such Loan under applicable law (collectively, the "CHARGES"), shall exceed the
maximum lawful rate of interest (the "MAXIMUM RATE") which may be contracted
for, charged, taken, received or reserved by a Lender holding such Loan in
accordance with applicable law, the rate of interest payable in respect of such
Loan hereunder, together with all Charges payable in respect thereof, shall be
limited to the Maximum Rate and, to the extent lawful, the interest and Charges
that would have been payable in respect of such Loan but were not payable as a
result of the operation of this Section shall be cumulated and the interest and
Charges payable to such Lender in respect of other Loans or periods shall be
increased (but not above the Maximum Rate therefor) until such cumulated amount,
together with interest thereon at the Federal Funds Rate to the date of
repayment, shall have been received by such Lender.

                  (remainder of page left intentionally blank)

                                       72

<PAGE>

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

                                        FIRST ACCEPTANCE CORPORATION

                                        By: /s/ Stephen J. Harrison
                                            ------------------------------------
                                        Name: Stephen J. Harrison
                                              ----------------------------------
                                        Title: President
                                               ---------------------------------

                                        SUNTRUST BANK
                                        as Administrative Agent, as Issuing
                                        Bank, as Swingline Lender and as a
                                        Lender

                                        By:  /s/ John H. Miles
                                            ------------------------------------
                                        Name: John H. Miles
                                              ----------------------------------
                                        Title:  Managing Director
                                               ---------------------------------

                                        Revolving Commitment: $ 2,500,000
                                        LC Commitment:        $ 2,500,000
                                        Swingline Commitment: $   500,000
                                        Term Loan Commitment: $12,500,000

                                       73

<PAGE>

                                        FIRST BANK

                                        By: /s/ Douglas A. Remke
                                            ------------------------------------
                                        Name: Douglas A. Remke
                                              ----------------------------------
                                        Title: Vice President
                                               ---------------------------------

                                        Revolving Commitment: $ 2,500,000
                                        LC Commitment:        $ 2,500,000
                                        Term Loan Commitment: $12,500,000

                                       74

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