GLOBAL PREFERRED HOLDINGS INC
EX-10.1
<DOCUMENT>
<TYPE>EX-10.1
<SEQUENCE>2
<FILENAME>exhibit1.htm
<DESCRIPTION>EX-10.1
<TEXT>
<!DOCTYPE html PUBLIC "-//W3C//DTD HTML 3.2//EN">
<HTML>
<HEAD>
<TITLE> EX-10.1 </TITLE>
</HEAD>
<BODY TEXT="#000000" BGCOLOR="#FFFFFF" ALINK="#0000FF" HLINK="#FF0000" VLINK="#800080">

<BODY style="font-family: 'Times New Roman',Times,serif">


<P align="right" style="font-size: 10pt"><FONT style="font-size: 12pt"><U><B>Exhibit&nbsp;10.1</B></U></FONT>



<P align="left" style="font-size: 12pt">July&nbsp;6, 2005


<P align="left" style="font-size: 12pt">Edward F. McKernan
<BR>
5430 Chelsen Wood Dr.
<BR>
Duluth, Georgia 30097


<P align="left" style="font-size: 12pt">Dear Mr.&nbsp;McKernan:


<P align="left" style="font-size: 12pt; text-indent: 4%">This letter will confirm the mutual understandings and agreements of you and Global Preferred
Holdings, Inc. (&#147;<U>GPH</U>&#148;) relating to the termination of your employment with GPH and the
services to be provided during your transition period. This letter agreement supplements and, as
specifically provided by certain terms herein, amends, the following documents: (i)&nbsp;Employment
Agreement (Chief Executive Officer) between You and the Company dated January&nbsp;1, 2002 (the
&#147;Employment Agreement&#148;); (ii)&nbsp;First Amendment to Employment Agreement of Edward F. <I>(sic) </I>McKernan
dated April&nbsp;1, 2003; (iii)&nbsp;letter from the Company to you dated March&nbsp;12, 2004; (iv)&nbsp;Second
Amendment to Employment Agreement of Edward F. McKernan dated May&nbsp;26, 2004; (v)&nbsp;Third Amendment of
the Employment Agreement of Edward F. McKernan dated January&nbsp;1, 2005; and (vi)&nbsp;letter from the
Company to you dated January&nbsp;28, 2005 ((i) &#150; (vi)&nbsp;collectively the &#147;Employment Documents&#148;). Except
as otherwise provided herein, the terms of the Employment Agreement shall remain in full force and
effect until the Separation Date (as defined herein) provided, however, and to the extent any such
provisions of the Employment Agreement are intended to survive the termination of the Employment
Agreement pursuant to the terms of the Employment Agreement or the Separation and Release Agreement
(as defined below), such provisions shall survive the Separation Date. In consideration of the
mutual covenants of the parties contained herein, the undersigned parties agree as follows:


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 12pt; color: #000000; background: transparent">
    <TD width="9%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">(1)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><U>Separation Date</U>. Your employment with GPH and each of its subsidiaries
and affiliates shall terminate on August&nbsp;19, 2005 (the &#147;<U>Separation Date</U>&#148;). The
parties agree that such termination shall be pursuant to Section&nbsp;4(F)(i) of the
Employment Agreement (the &#147;<U>Terminating Provision</U>&#148;). You and GPH mutually waive
any rights to any notices or cure periods with respect to the termination of the
Employment Agreement pursuant to the Terminating Provision. GPH agrees not to reduce
your salary or benefits from those levels currently payable or in place as of the date
hereof pursuant to the Employment Agreement between the date hereof and the Separation
Date.</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 12pt; color: #000000; background: transparent">
    <TD width="9%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">(2)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><U>Separation Benefits</U>. It is mutually agreed and acknowledged that in
accordance with the termination of the Employment Agreement, pursuant to the
Terminating Provision, and subject to the terms hereof and the terms of the Employment
Agreement, GPH shall pay you, subject to the terms of the Employment Agreement and the
Separation and Release Agreement in the form attached hereto as <U><B>Exhibit&nbsp;A</B></U> (the
&#147;<U>Separation and Release Agreement</U>&#148;), the amounts (the &#147;<U>Separation
Benefits</U>&#148;) described in Section&nbsp;A(1) of the Separation and Release Agreement,
except as such amounts relate to prorated Bonus payments, which are addressed in
Section&nbsp;3 below. As the sole condition precedent to your receiving the Separation
Benefits from GPH, on or after the Separation Date you must first sign the Separation
and Release Agreement. Except for the satisfaction of the sole condition in the
preceding sentence, the Separation Benefits, other than the prorated Bonus payments,
which are addressed in Section&nbsp;3 below, are not subject to the discretion of the Board
of Directors.</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 12pt; color: #000000; background: transparent">
    <TD width="9%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">(3)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><U>Prorated Bonus</U>. Subject to your satisfactory provision of your
Transition Duties (as described on <U><B>Exhibit&nbsp;B</B></U> hereto) through the Separation
Date, as determined by the Board of Directors in its discretion and in good faith, GPH
shall pay you a pro-rata 2005 annual bonus of $55,500 pursuant to Section&nbsp;2(B) of the
Employment Agreement and the Separation and Release Agreement.</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 12pt; color: #000000; background: transparent">
    <TD width="9%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">(4)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><U>Directors and Officers Indemnity and Insurance</U>. At your request, GPH
agrees to provide to you copies of GPH&#146;s Certificate of Incorporation and Bylaws and
any in force D&#038;O insurance policies applicable to the Company and its officers and
directors.</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 12pt; color: #000000; background: transparent">
    <TD width="9%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">(5)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><U>Capstan International Acquisitions, LLC</U>. You have advised GPH, and GPH
hereby acknowledges its understanding that beginning today, you are and shall continue
be a member, manager and employee of Capstan International Acquisitions, LLC, a Georgia
limited liability company (&#147;<U>Capstan</U>&#148;) principally involved in the acquisition
and management of, and providing services to, enterprises primarily engaged in the
business of insurance (the &#147;<U>Capstan Project</U>&#148;). GPH agrees that your
involvement in the Capstan Project beginning today including, but not limited to, (a)
the organization, capitalization and operation of Capstan, (b)&nbsp;your employment by
Capstan or any of its subsidiaries and (c)&nbsp;any actions taken by you on behalf of
Capstan shall not constitute a breach of Section&nbsp;1(C) of your Employment Agreement or
under any policies and procedures established by GPH between today and the Separation
Date or at any time after the Separation Date; <I>provided that </I>(a)&nbsp;such actions do not
limit or adversely affect your performance of your Transition Duties through the
Separation Date; (b)&nbsp;you do not breach any fiduciary duty you owe to GPH, and (c)&nbsp;you
do not violate any of the terms of this Agreement or your Employment Agreement (other
than Section&nbsp;1(C)), as amended by this Letter Agreement.</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 12pt; color: #000000; background: transparent">
    <TD width="9%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">(6)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><U>Amendments to Employment Agreement.</U></TD>
</TR>

</TABLE>



<P align="left" style="margin-left:20%; font-size: 12pt">The information on <B><I>Exhibit&nbsp;B </I></B>to the Employment Agreement is deleted and the
information on the attached <U><B>Exhibit&nbsp;B</B></U> is deemed substituted therefore
(the &#147;<U>Transition Duties</U>&#148;).



<P align="left" style="margin-left:20%; font-size: 12pt">Section&nbsp;7 of the Employment Agreement is deleted in its entirety and replaced
with the following in its entirety:


<P align="left" style="margin-left:30%; margin-right:4%; font-size: 12pt">7. <U>Restrictive Covenants</U>. You acknowledge that the
restrictions contained in this Section&nbsp;7 are reasonable and
necessary to protect the legitimate business interests of the
Company, and will not impair or infringe upon Your right to
work or earn a living after Your employment with the Company
ends.


<P align="left" style="margin-left:30%; margin-right:4%; font-size: 12pt; text-indent: 4%">A. <U>Confidential Information</U>. You represent and
warrant You are not subject to or in breach of any
non-disclosure agreement, including any agreement concerning
trade secrets or confidential information owned by any other
party, which relate to any information you may use in
performing your duties for the Company or the observance of
which would impair your ability to perform your duties for
the Company.


<P align="left" style="margin-left:30%; margin-right:4%; font-size: 12pt; text-indent: 4%">You agree that except in connection with your
participation in Capstan, or made possible by that certain
Asset and Stock Purchase Agreement by and between the Capstan
and the Company You will not: (i)&nbsp;use, disclose or reverse
engineer the Trade Secrets or the Confidential Information,
except as authorized by the Company; (ii)&nbsp;during Your
employment with the Company, use or disclose (a)&nbsp;any
confidential information or trade secrets of any former
employer or third party, or (b)&nbsp;any works of authorship
developed in whole or in part by You during any former
employment or for any other party, unless authorized in
writing by the former employer or third party; or (iii)&nbsp;upon
Your resignation or termination (a)&nbsp;except as provided in the
following paragraph of this Agreement, retain Trade Secrets
or Confidential Information, including any copies existing in
any form (including electronic form), which are in Your
possession or control, or (b)&nbsp;destroy, delete or alter the
Trade Secrets or Confidential Information without the
Company&#146;s consent.


<P align="left" style="margin-left:30%; margin-right:4%; font-size: 12pt">Notwithstanding anything to the contrary herein, you shall be
permitted to keep copies of the Work Product listed on
<B>Exhibit&nbsp;C</B>, required to be maintained by certified actuaries
as such requirements are set forth in the Actuarial Standards
of Practice established by the Actuarial Standards Board from
time to time. This provision in no way transfers ownership
of the Work Product to you or diminishes your other
obligations pursuant to this Section&nbsp;7(A), concerning the
use, disclosure or reverse engineering of the Trade Secrets
or the Confidential Information.


<P align="left" style="margin-left:30%; margin-right:4%; font-size: 12pt; text-indent: 4%">The obligations under this Section&nbsp;7A shall: (i)&nbsp;with
regard to the Trade Secrets, remain in effect as long as the
information constitutes a trade secret under applicable law,
and (ii)&nbsp;with regard to the Confidential Information, remain
in effect during the Restricted Period.


<P align="left" style="margin-left:30%; margin-right:4%; font-size: 12pt; text-indent: 4%">B. &#091;INTENTIONALLY DELETED&#093;


<P align="left" style="margin-left:30%; margin-right:4%; font-size: 12pt; text-indent: 4%">C. <U>Non-Recruit of Employees</U>. You agree that
during the Restricted Period, You will not, directly or
indirectly, solicit, recruit or induce any Employee to (a)
terminate his or her employment relationship with the Company
or (b)&nbsp;work for any other person or entity engaged in the
Business, <U>provided that</U> following the date of
termination of this Agreement, the term &#147;Employee&#148; referred
to in this Section&nbsp;7(C) and defined in <I>Exhibit&nbsp;A </I>of this
Agreement shall refer only to Caryl Shepherd, Rebbeca Turner
and any new employee employed by the Company during the
Restricted Period.


<P align="left" style="margin-left:20%; margin-right:4%; font-size: 12pt">Sections&nbsp;8, 9 and 10 of the Employment Agreement shall have no further
force or effect following the date hereof.


<P align="right" style="font-size: 12pt">(7)



<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 12pt; color: #000000; background: transparent">
    <TD width="9%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><U>Resignation as Officer</U>. By your signature below, you hereby resign as an officer of
GPH and all subsidiaries and affiliates, effective the date hereof. Upon request by
GPH or its counsel, you agree to execute and deliver a separate written resignation,
effective as of the date hereof.</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 12pt; color: #000000; background: transparent">
    <TD width="9%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">(8)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><U>Survival; Assignment</U>. Except as hereby modified, the Employment
Agreement, as previously amended, shall remain in full force and effect pursuant to its
terms. The obligations of GPH pursuant to this letter shall terminate upon execution
and delivery of the Separation and Release Agreement by you and GPH, except as to the
terms of Section&nbsp;6 above, which shall be continued by operation of Paragraphs B.1 and
C.7 of the Separation and Release Agreement. The parties acknowledge and agree that
GPH may assign or transfer its rights and obligations under the Employment Agreement
and this letter to any entity created as a successor to GPH in connection with the
liquidation and dissolution of GPH.</TD>
</TR>

</TABLE>


<P align="left" style="font-size: 12pt">Please sign in the space indicated below to indicate your agreement to these terms.


<P align="left" style="font-size: 12pt">Very truly yours,


<P align="left" style="font-size: 12pt">Joseph F. Barone
<BR>
Chairman, Board of Directors
<BR>
Global Preferred Holdings, Inc.


<P align="left" style="font-size: 12pt"><B>Agreed to and Accepted:</B>


<P align="left" style="font-size: 12pt"><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>
<BR>
Mr.&nbsp;Edward F. McKernan


<P align="center" style="font-size: 10pt; display: none">1
<!-- PAGEBREAK -->

<P align="center" style="font-size: 12pt"><U><B>EXHIBIT A</B></U>



<P align="center" style="font-size: 12pt"><U><B>Form of Separation and Release Agreement</B></U>





<P align="center" style="font-size: 10pt; display: none">2
<!-- PAGEBREAK -->




<P align="center" style="font-size: 12pt"><U><B>EXHIBIT B</B></U>



<P align="center" style="font-size: 12pt"><U><B>Transition Duties</B></U>



<P align="left" style="font-size: 12pt">Edward F. McKernan shall provide support and transition assistance, as reasonably requested by
management or the Board of Directors of the Company, which may include, without limitation, support
in preparation of the Form 10-Q for the quarter ending June&nbsp;30, 2005 and pro forma financials to be
filed as an amendment to the Form 8-K filed on May&nbsp;31, 2005, assistance in transitioning
relationships with auditors and assistance in transitioning support of cash flow projections and
other matters previously managed by Mr.&nbsp;McKernan. If GPH determines that continued execution of
SEC filings by Mr.&nbsp;McKernan must be obtained by GPH, then the Company and Mr.&nbsp;McKernan will
negotiate in good faith to develop a mutually acceptable agreement with respect to the manner in
which such executions may be obtained.


<P align="left" style="font-size: 12pt">Mr.&nbsp;McKernan will cooperate with the Company to transfer all of the Company&#146;s physical and
electronic files and data in Mr.&nbsp;McKernan&#146;s possession to Ms.&nbsp;Shepherd, Ms.&nbsp;Turner or another
representative of the Company appointed by the Board of Directors with such transfer to be
completed prior to the Separation Date.


<P align="center" style="font-size: 10pt; display: none">3
<!-- PAGEBREAK -->

<P align="center" style="font-size: 12pt"><U><B>EXHIBIT C</B></U>



<P align="center" style="font-size: 12pt"><U><B>Work Product</B></U>



<P align="left" style="font-size: 12pt">Work Product shall include supporting data and copies of the following documents (electronic or
otherwise) developed while employed by the Company:


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 12pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>RFP&#146;s / Financing and Analysis (e.g., financial reinsurance),</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 12pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Regulatory filings,</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 12pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Financial projections,</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 12pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Feasibility studies,</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 12pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Financial analysis</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 12pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Retention analysis and studies,</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 12pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Public presentations,</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 12pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Capital and/or surplus analyses,</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 12pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Reserve calculations and/or analysis (GAAP, Gross Premium, Stat and Tax),</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 12pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Product development,</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 12pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Asset / liability analysis and asset segmentation,</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 12pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Experience analysis (mortality, lapses, expense, distribution, demographics, etc.),</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 12pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Reinsurance treaties and supporting analysis,</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 12pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Correspondence with any expression of an opinion, recommendation, work process, data
reference, qualification reference, etc.,</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 12pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Engagement letters,</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 12pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Mathematical models (e.g., DAC amortization, option analysis),</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 12pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Embedded value analysis,</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 12pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>DAC unlocking models,</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 12pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>DAC tax analysis,</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 12pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Recapture analysis, and</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 12pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>&#147;Report Cards&#148;</TD>
</TR>

</TABLE>



<P align="center" style="font-size: 10pt; display: none">4


<!-- v.050305 -->
</BODY>

</BODY>
</HTML>
</TEXT>
</DOCUMENT>
