ALDEN JOHN FINANCIAL CORP
10-Q, 1997-11-14
LIFE INSURANCE
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<PAGE>   1
                                 UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

                                   FORM 10-Q





           QUARTERLY REPORT PURSUANT TO SECTION 13 OF THE SECURITIES
                              EXCHANGE ACT OF 1934

               For the quarterly period ended September 30, 1997




                       Commission File Number :  1-11396


                        JOHN ALDEN FINANCIAL CORPORATION
             (Exact name of registrant as specified in its charter)



<TABLE>
<S>                                                                                           <C>
                             DELAWARE                                                                      59-2840712
(State or other jurisdiction of incorporation or organization)                                (I.R.S. Employer Identification No.)

         7300 CORPORATE CENTER DRIVE, MIAMI, FLORIDA                                                       33126-1208
         (Address of principal executive offices)                                                          (Zip Code)
</TABLE>

                                 (305) 715-3767
              (Registrant's telephone number, including area code)


Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days.              [ X ] Yes  [   ]No

                     As of November 10, 1997, 25,595,970 shares of Common
Stock, par value $.01, were outstanding.
<PAGE>   2
                        JOHN ALDEN FINANCIAL CORPORATION

                                   FORM 10-Q

                    For the Quarter Ended September 30, 1997

                                     Index
<TABLE>
<CAPTION>
                                                                                                      Page
                                                                                                      ----
<S>                                                                                                        <C>
PART I.  FINANCIAL INFORMATION

Item 1.      Condensed Consolidated Financial Statements as of September 30, 1997
             (unaudited) and December 31, 1996, and for the nine and three months
             ended September 30, 1997 (unaudited) and September 30, 1996 (unaudited)  . . . . . . . . .     1

             Notes to Condensed Consolidated Financial Statements (unaudited)   . . . . . . . . . . . .     5

Item 2.      Management's Discussion and Analysis of Financial Condition and
             Results of Operations  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .     8

PART II. OTHER INFORMATION

Item 1.      Legal Proceedings  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .    18

Item 6.      Exhibits and Reports on Form 8-K   . . . . . . . . . . . . . . . . . . . . . . . . . . . .    19
</TABLE>





The Private Securities Litigation Reform Act of 1995 provides a "safe harbor"
for forward-looking statements.  This and any other Form 10-Q, the Company's
Annual Report to Stockholders, Form 10-K and any Form 8-K of the Company and any
other written or oral statements made by or on behalf of the Company may include
forward-looking statements which reflect the Company's current views with
respect to future events and financial performance.  These forward-looking
statements are subject to certain uncertainties and other factors that could
cause actual results to differ materially from such statements.  These
uncertainties and other factors (which are described in more detail elsewhere in
this Form 10-Q) include, but are not limited to, uncertainties relating to
general economic conditions and cyclical industry conditions, uncertainties
relating to federal and state government and regulatory policies, volatile and
unpredictable developments (including utilization of medical services), the
uncertainties of the reserving process, the competitive environment in which the
Company operates, the uncertainties inherent in the development and introduction
into the marketplace of the Company's new small group health insurance product,
the ability of the Company to obtain desired contracts and pricing with
providers, the ability to obtain dividend approval from state regulators and the
ability of the Company to control costs.  There can be no assurance that any
open market, self tender or similar stock repurchase program will be implemented
by the Company.  There can be no assurance that any sale or other strategic
alliance will be entered into or consummated, nor any certainty as to the
timing or terms of any such transaction that may be consummated.  The words
"believe", "expect", "anticipate", "project" and similar expressions identify
forward-looking statements.  Readers are cautioned not to place undue reliance
on these forward-looking statements, which speak only as of their dates.  The
Company undertakes no obligation to publicly update or revise any
forward-looking statements, whether as a result of new information, future
events or otherwise.

<PAGE>   3
              JOHN ALDEN FINANCIAL CORPORATION AND SUBSIDIARIES
                    CONDENSED CONSOLIDATED BALANCE SHEETS
                            (Dollars in thousands)


<TABLE>
<CAPTION>

                                                                                            September 30,
                                                                                                1997               December 31,
                                      ASSETS                                                 (Unaudited)               1996
                                                                                           ---------------        --------------
                                            

<S>                                                                                          <C>                   <C>
Debt securities:
   Held-to-maturity securities, at amortized cost (market $46,825 and $46,884)......         $     45,341          $     45,357
   Available-for-sale securities, at market (cost $521,007 and $4,185,263)..........              550,062             4,248,774
   Trading account securities, at market (cost $3,413 and $4,435)...................                3,505                 4,518
Equity securities, at market (cost $8 and $73,692)..................................                   19                82,098
Mortgage loans......................................................................              156,313             1,449,242
Investment in real estate, at cost, less accumulated
  depreciation of $3,156 and $2,008.................................................               39,433                39,903
Real estate owned...................................................................                7,791                11,483
Policy loans and other notes receivable.............................................               31,592                75,186
Short-term investments..............................................................                  684                 6,371
                                                                                           ---------------        --------------
     Total invested assets..........................................................              834,740             5,962,932
Cash and cash equivalents...........................................................              287,627               167,511
Accrued investment income...........................................................               11,360                65,727
Deferred policy acquisition costs...................................................               35,388               239,622
Investment deposits recoverable.....................................................               17,527               766,286
Reinsurance receivables.............................................................              167,176               204,379
Other assets........................................................................              200,230               264,792
                                                                                           ---------------        --------------
       Total assets.................................................................         $  1,554,048          $  7,671,249
                                                                                           ===============        ==============


            LIABILITIES, REDEEMABLE SECURITIES AND STOCKHOLDERS' EQUITY

Liabilities:
  Contract holder liabilities.......................................................         $    762,625          $  6,887,632  
  Funds payable under reinsurance treaties..........................................               23,138                77,331  
  Short-term debt...................................................................               41,500                25,000  
  Long-term debt....................................................................               35,000                76,500  
  Other liabilities.................................................................              148,291               120,888  
  Deferred gain on sale of Annuity Operations.......................................               45,025                    --  
                                                                                           ---------------        -------------- 
        Total liabilities...........................................................            1,055,579             7,187,351  
                                                                                           ---------------        -------------- 
Redeemable securities:                                                                                                           
  Series A 9% cumulative preferred stock, $.01 par value;                                                                        
     150,000 shares authorized, issued and outstanding;                                                                          
     mandatory redemption value of $100 per share; including                                                                     
     accrued dividends of $623 and $286; $104.15 and $101.91 per share..............               15,623                15,286  
  Common stock, $.01 par value; 665,216 and 667,430 shares
     authorized, issued and outstanding.............................................                9,522                 3,401  
                                                                                           ---------------        -------------- 
        Total redeemable securities ................................................               25,145                18,687  
                                                                                           ---------------        -------------- 
Stockholders' equity:                                                                                                            
    Common stock, $.01 par value; 74,334,784 and 74,332,570 shares                                                               
      authorized; 25,149,755 and 25,055,843  shares issued;  24,777,696                                                          
      and 24,668,108 shares outstanding.............................................                  251                   250  
    Paid-in capital.................................................................              183,789               181,863  
    Net unrealized gain on investments, net of income taxes.........................               16,125                26,977  
    Retained earnings...............................................................              290,706               268,109  
    Redemption value of common stock in excess of cost..............................               (8,791)               (2,669) 
    Unearned compensation...........................................................                 (429)                 (643) 
    Treasury stock, at cost; 372,059 and 387,735 shares.............................               (8,327)               (8,676) 
                                                                                           ---------------        -------------- 
         Total stockholders' equity.................................................              473,324               465,211  
                                                                                           ---------------        -------------- 
         Total liabilities, redeemable securities and stockholders' equity..........         $  1,554,048          $  7,671,249  
                                                                                           ===============        ==============
</TABLE>


           See Notes to Condensed Consolidated Financial Statements.



                                      1



<PAGE>   4
              JOHN ALDEN FINANCIAL CORPORATION AND SUBSIDIARIES
                 CONDENSED CONSOLIDATED STATEMENTS OF INCOME
                                 (Unaudited)
                (Dollars in thousands, except per share data)


<TABLE>
<CAPTION>
                                                                           Nine Months Ended             Three Months Ended
                                                                              September 30,                 September 30,
                                                                     -----------------------------   -----------------------------
                                                                          1997           1996           1997             1996
                                                                     --------------  -------------   ------------   --------------
<S>                                                                   <C>            <C>              <C>             <C>
Revenues:
    Gross insurance premiums and contract charges earned.......       $  1,192,826   $  1,406,017     $  355,058      $   451,574
    Ceded insurance premiums and contract charges earned.......           (473,575)      (626,678)      (137,501)        (202,347)
                                                                     --------------  -------------   ------------   --------------
         Net insurance premiums and contract charges earned....            719,251        779,339        217,557          249,227
    Net investment income......................................             50,348         34,045         19,227           11,477
    Other income, including experience refunds and.............
       expense allowances on reinsurance ceded.................             57,442         47,317          7,360           11,272
    Net realized investment gains (losses).....................              5,142          1,158            (37)             328
                                                                     --------------  -------------   ------------   --------------
         Total revenues........................................            832,183        861,859        244,107          272,304
                                                                     --------------  -------------   ------------   --------------
Benefits and expenses:
    Gross claims incurred on insurance products................            845,500      1,045,799        280,410          348,416
    Ceded claims incurred on insurance products................           (352,787)      (485,640)      (113,685)        (161,891)
                                                                     --------------  -------------   ------------   --------------
         Net claims incurred on insurance products.............            492,713        560,159        166,725          186,525
    Universal life and investment-type contract benefits.......             14,254         13,696          4,794            4,466
    Increase (decrease) in life insurance reserves.............             32,722            270           (943)             120
                                                                     --------------  -------------   ------------   --------------
         Total benefits........................................            539,689        574,125        170,576          191,111
                                                                     --------------  -------------   ------------   --------------
    Commissions, net of commissions ceded......................             45,287         59,845         14,551           18,968
    General expenses, net of expenses ceded....................            183,330        187,466         48,702           57,824
    Amortization of purchased intangibles......................              3,187          4,891          1,066            1,625
    Amortization of deferred policy acquisition costs..........             11,580         10,208          2,718            3,703
    Interest expense...........................................              4,164          4,951          1,219            1,591
                                                                     --------------  -------------   ------------   --------------
           Total benefits and expenses.........................            787,237        841,486        238,832          274,822
                                                                     --------------  -------------   ------------   --------------
Income (loss) from continuing operations before
            provision (benefit) for income taxes and
            minority interest in joint venture's income........             44,946         20,373          5,275           (2,518)
Provision (benefit) for income taxes...........................             16,824          8,309          1,940              (76)
Minority interest in joint venture's income....................             (1,069)          (831)          (231)             (56)
                                                                     --------------  -------------   ------------   --------------
Net income (loss) from continuing operations...................             27,053         11,233          3,104           (2,498)
Net income (loss) from discontinued operations:
   Annuity Operations (net of income taxes of $3,341,
     $14,267, $-- and $5,284)..................................              5,490         23,099             --            8,318
   Western Diversified Group (net of income taxes of
     $200, ( $291), $-- and $237)..............................                203         (1,367)            --              (82)
                                                                     --------------  -------------   ------------   --------------
Net income.....................................................       $     32,746   $     32,965     $    3,104      $     5,738
                                                                     ==============  =============   ============   ==============

Net income applicable to common stock..........................       $     31,733   $     31,952     $    2,766      $     5,400
                                                                     ==============  =============   ===========-   ==============

Net income per common and common equivalent share (see Note 3):
      Net income (loss) from continuing operations.............       $       1.01   $       0.40     $     0.10      $     (0.11)
      Net income from discontinued operations..................               0.22           0.85             --             0.33
                                                                     --------------  -------------   ------------   --------------
      Net income...............................................       $       1.23   $       1.25     $     0.10      $      0.22
                                                                     ==============  =============   ===========-   ==============
</TABLE>



          See Notes to Condensed Consolidated Financial Statements.







                                       2
<PAGE>   5
              JOHN ALDEN FINANCIAL CORPORATION AND SUBSIDIARIES
     CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY
                                 (Unaudited)
                            (Dollars in thousands)


<TABLE>
<CAPTION>

                                                                      Nine Months Ended                  Three Months Ended
                                                                        September 30,                       September 30,
                                                              -------------------------------    --------------------------------
                                                                    1997             1996              1997             1996
                                                              ---------------  --------------    ---------------  ---------------
<S>                                                           <C>              <C>               <C>              <C>
Number of shares outstanding........................              24,777,696       24,625,434        24,777,696       24,625,434
                                                              ===============  ==============    ===============  ===============

Common stock, beginning of period...................            $        250    $         248     $         251    $         250
   Stock option exercises...........................                       1                1                --               --
   Transfer from redeemable common stock............                      --                1                --               --
                                                              ---------------  --------------    ---------------  ---------------
Common stock, end of period.........................            $        251    $        $250     $         251    $         250
                                                              ===============  ==============    ===============  ===============

Paid-in capital, beginning of period................            $    181,863    $     181,154     $     182,223    $     181,636
   Stock option exercises...........................                   1,613              205             1,255               32
   Tax benefit on stock option exercises............                     311               --               311               --
   Unearned compensation - treasury stock grant.....                      --               95                --               95
   Transfer from redeemable common stock............                       2              318                --                9
                                                              ---------------  --------------    ---------------  ---------------
Paid-in capital, end of period......................            $    183,789    $     181,772     $     183,789    $     181,772
                                                              ===============  ==============    ===============  ===============

Net unrealized gain on investments, net of
   income taxes, beginning of period................            $     26,977    $      58,041     $      12,588    $      (5,015)
   Change in net unrealized gain (loss)
        on investments, net of income taxes.........                 (10,852)         (59,339)            3,537            3,717
                                                              ---------------  --------------    ---------------  ---------------
Net unrealized gain on investments, net of
   income taxes, end of period......................            $     16,125    $      (1,298)    $      16,125    $      (1,298)
                                                              ===============  ==============    ===============  ===============

Retained earnings, beginning of period..............            $    268,109    $     250,167     $     290,996    $     271,155
   Net income.......................................                  32,746           32,965             3,104            5,738
   Dividends on redeemable preferred stock ($6.75,
       $6.75, $2.25 and $2.25 per share)............                  (1,013)          (1,013)             (338)            (338)
   Dividends on common stock ($0.36, $0.34, $0.12
       and $0.12 per share).........................                  (9,136)          (8,604)           (3,056)          (3,040)
                                                              ---------------  --------------    ---------------  ---------------
Retained earnings, end of period....................            $    290,706    $     273,515     $     290,706    $     273,515
                                                              ===============  ==============    ===============  ===============

Redemption value of common stock in excess of cost,
   beginning of period..............................            $     (2,669)   $      (3,050)    $      (4,871)   $      (3,382)
   Transfer from redeemable common stock............                      --                4                --               --
   Adjustment of put holder shares to market value..                  (3,181)             (24)           (1,378)              --
   Change in redemption value of common stock
     in excess of cost..............................                  (2,941)             (59)           (2,542)             253
                                                              ---------------  --------------    ---------------  ---------------
Redemption value of common stock in excess of cost,
   end of period....................................            $     (8,791)   $      (3,129)    $      (8,791)   $      (3,129)
                                                              ===============  ==============    ===============  ===============

Unearned compensation, beginning of period..........            $       (643)   $          --     $        (500)   $          --
   Unearned compensation - treasury stock grant.....                      --             (738)               --             (738)
   Compensation expense recognized..................                     214               24                71               24
                                                              ---------------  --------------    ---------------  ---------------
Unearned compensation, end of period................            $       (429)            (714)    $        (429)            (714)
                                                              ===============  ==============    ===============  ===============

Treasury stock, beginning of period.................            $     (8,676)   $      (9,329)    $      (8,676)   $      (9,319)
   Unearned compensation - treasury stock grant.....                      --              643                --              643
   Stock option exercises...........................                     349               10               349               --
                                                              ---------------  --------------    ---------------  ---------------
Treasury stock, end of period........................           $     (8,327)   $      (8,676)    $      (8,327)   $      (8,676)
                                                              ===============  ==============    ===============  ===============
Stockholders' equity, beginning of period............           $    465,211    $     477,231     $     472,011    $     435,325
   Net income........................................                 32,746           32,965             3,104            5,738
   Change in net unrealized gain (loss) on investments,
     net of income taxes.............................                (10,852)         (59,339)            3,537            3,717
   Dividends on redeemable preferred stock ($6.75,
     $6.75, $2.25 and $2.25 per share)...............                 (1,013)          (1,013)             (338)            (338)
   Dividends on common stock ($0.36, $0.34, $0.12 and
     $0.12 per share)................................                 (9,136)          (8,604)           (3,056)          (3,040)
   Change in redemption value of common stock in
     excess of cost..................................                 (2,941)             (59)           (2,542)             253
   Stock option exercises............................                  1,963              216             1,604               32
   Tax benefit on stock option exercises.............                    311               --               311               --
   Compensation expense recognized...................                    214               24                71               24
   Adjustment of put holder shares to market value...                 (3,181)             (24)           (1,378)              --
   Transfer from redeemable common stock.............                      2              323                --                9
                                                              ---------------  --------------    ---------------  ---------------
Stockholders' equity, end of period..................           $    473,324    $     441,720     $     473,324    $     441,720
                                                              ===============  ==============    ===============  ===============
</TABLE>


          See Notes to Condensed Consolidated Financial Statements.



                                      3

<PAGE>   6
                JOHN ALDEN FINANCIAL CORPORATION AND SUBSIDIARIES
                 CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                                   (Unaudited)
                              (Dollars in thousands)




<TABLE>
<CAPTION>
                                                                                Nine Months Ended
                                                                                   September 30,
                                                                       --------------------------------
                                                                            1997                1996
                                                                       -------------       ------------
<S>                                                                    <C>                   <C>
Net cash provided by operating activities..........................    $  56,984              $ 225,817
                                                                       -----------           -----------
Cash flows from investing activities:
     Proceeds from investments sold:
            Available-for-sale.....................................      281,132                473,032
            Equity securities......................................          120                  1,383
            Real estate owned......................................        8,202                 10,503
      Maturities, calls  and scheduled loan payments:              
            Held-to-maturity.......................................          810                 52,340
            Available-for-sale.....................................       86,626                139,528
            Mortgage loans and other notes receivable..............      145,810                241,755
      Investments purchased:
            Held-to-maturity.......................................            -               (121,418)
            Available-for-sale.....................................      (55,841)              (561,070)
            Equity securities......................................          (50)                     -
            Mortgage loans and other notes receivable..............     (110,160)              (254,080)
            Investment in real estate..............................         (682)               (17,428)
     Inflows from net sales and purchases of short-term investments        3,110                 (1,758)
     Sale of Annuity Operations....................................     (177,616)                     -
     Sale of Western Diversified Group.............................       23,289                      -
     Purchases of property and equipment...........................       (4,307)               (18,687)
                                                                       -----------           -----------
   Net cash provided by (used in) investing activities.............      200,443                (55,900)
                                                                       -----------           -----------
Cash flows from financing activities:                                                                 
     Proceeds from borrowings of short-term and long-term debt.....            -                 26,000
     Repayments of borrowings of short-term and long-term debt.....      (25,000)               (17,563)
     Receipts from universal life and investment-type contracts....       77,382                368,423
     Payments on universal life and investment-type contracts......     (179,777)              (549,669)
     Payment of dividends..........................................       (9,799)                (9,016)
     Stock option exercises........................................        1,963                    216
     Net payments for financial reinsurance........................       (2,080)                     -
                                                                       -----------           -----------
   Net cash used in financing activities...........................     (137,311)              (181,609)
                                                                       -----------           -----------
Net increase (decrease) in cash and cash equivalents...............      120,116                (11,692)
Cash and cash equivalents, beginning of period.....................      167,511                 99,606
                                                                       -----------           -----------
Cash and cash equivalents, end of period...........................    $ 287,627              $  87,914
                                                                       ===========           ===========
</TABLE>



           See Notes to Condensed Consolidated Financial Statements.

                                       4
<PAGE>   7
               JOHN ALDEN FINANCIAL CORPORATION AND SUBSIDIARIES
              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                                 (UNAUDITED)





NOTE 1 -- BASIS OF PRESENTATION

         The condensed consolidated financial statements of John Alden
Financial Corporation and its subsidiaries (the "Company") have been prepared
pursuant to the rules and regulations of the Securities and Exchange
Commission. Certain information and note disclosures normally included in
financial statements prepared in accordance with generally accepted accounting
principles have been condensed or omitted.  The interim financial data is
unaudited; however, in the opinion of management, the interim data includes all
adjustments, consisting only of normal recurring adjustments, necessary for a
fair statement of the results of operations for the interim periods presented.
The results of operations for the nine and three months ended September 30,
1997 are not necessarily indicative of the results to be expected for the full
year.  As described in Note 2, the Company has disposed of certain operations.
Certain reclassifications have been made to prior period condensed consolidated
financial statements to conform to current period presentation.

         These condensed consolidated financial statements should be read in
conjunction with the consolidated financial statements included in the
Company's Annual Report on Form 10-K for the year ended December 31, 1996, as
amended.

NOTE 2 -- DISCONTINUED OPERATIONS

         On March 31, 1997, the Company sold substantially all of its annuity
business (the "Annuity Operations") to SunAmerica Life Insurance Company
("SunAmerica").  The transaction included the sale of all of the common stock
of John Alden Life Insurance Company of New York ("JANY") and the coinsurance
of substantially all of the annuity business of John Alden Life Insurance
Company ("JALIC").  This coinsurance will initially be on an indemnity basis
and the parties have agreed to transition the business to an assumption basis
as soon as practical.  In certain states, the transition to an assumption basis
is subject to policyholder approval.  To the extent that such transition does
not take place with respect to any particular policy, the policy will remain
reinsured on an indemnity basis.  A substantial portion of the transition to an
assumption basis is expected to be completed by December 31, 1998.  No
contracts have transitioned to an assumption basis as of September 30, 1997.

         As consideration for the Annuity Operations, SunAmerica paid the
Company approximately $238.2 million, which was determined through arms-length
negotiations.  The consideration represents an approximately $162.3 million
premium paid to acquire the business and approximately $75.9 million of
adjusted capital and surplus of JANY.  It does not include any capital and
surplus used to support the annuity business in JALIC, which will remain in
JALIC.

         In addition to the $238.2 million purchase price for the Annuity
Operations, SunAmerica paid $33.1 million to the Company for accrued interest
and related items.  In turn, the Company paid SunAmerica $360.4 million of cash
and cash equivalents because policy reserves transferred exceeded invested
assets transferred. Additionally, the Company's cash and cash equivalent
position was decreased by JANY's cash and cash equivalent balance at the time
of the sale of $88.5 million, which was retained by JANY.  Therefore, the
Company incurred a net outflow of cash and cash equivalents due to the sale of
the Annuity Operations of $177.6 million, as reflected in the accompanying
condensed consolidated statement of cash flows.

         On September 30, 1997, the Company sold all of the common stock of
substantially all of the subsidiaries which comprise the Western Diversified
Group (the principal subsidiaries of the Company that market credit life and
disability and retail service warranty coverage) to Protective Life Insurance
Company. As a result of the sales of the Annuity Operations and Western
Diversified Group, the Company recorded a net deferred gain of approximately
$45.0 million.  This amount is net of estimated transaction expenses, taxes,
goodwill and other adjustments relating to these transactions.  The net
deferred gain is subject to possible revision upon the ultimate resolution of
these estimates and will be recognized as income as SunAmerica completes the
assumption of policyholder liabilities.  The Company expects to begin
recognizing the net deferred gain in late 1997 and to earn the majority of the
gain by December 31, 1998.





                                       5
<PAGE>   8
               JOHN ALDEN FINANCIAL CORPORATION AND SUBSIDIARIES
              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                           (UNAUDITED) - (CONTINUED)



         

         The Company's available capital was enhanced by both the after-tax
gain generated from the transactions and by the release of the net capital
previously allocated to support these businesses.  The Company continues to
evaluate the best uses of its capital, including the approximately $200 million
of excess capital generated from the sale of the Company's annuity and credit
businesses.  This capital may be used to repurchase common stock, pay
dividends, reduce debt or for general corporate purposes, or for a combination
of two or more of such uses.

         The results of operations relating to the Annuity Operations and the
Western Diversified Group for the nine and three months ended September 30,
1997 and 1996 are reflected as discontinued operations in the accompanying
condensed consolidated statements of income.  Total revenues for the
discontinued operations for the nine and three months ended September 30, 1997
and 1996 are as follows (dollars in thousands):

<TABLE>
<CAPTION>
                                                NINE MONTHS ENDED                     THREE MONTHS ENDED 
                                                ------------------                    -------------------
                                                  SEPTEMBER 30,                          SEPTEMBER 30,
                                                  ------------                           ------------ 
                                             1997                1996                1997              1996    
                                         ------------        ------------       -------------      ------------
 <S>                                        <C>                <C>            <C>                    <C>
 Annuity Operations  . . . . . . . .        $102,909           $325,254       $          -           $105,387
 Western Diversified Group . . . . .          52,935             45,416             17,456             16,444
</TABLE>

     Included in other assets at September 30, 1997 in the accompanying
condensed consolidated balance sheet was approximately $4.4 billion of
investment deposits recoverable on the JALIC coinsurance, net of a similar
amount of contract holder liabilities related to the discontinued operations.

NOTE 3 -- EARNINGS PER SHARE

     Net income per common and common equivalent share was determined by
dividing net income, as adjusted below, by applicable average shares
outstanding (in thousands):

<TABLE>
<CAPTION>
                                                    NINE MONTHS ENDED                  THREE MONTHS ENDED 
                                                    ------------------                 -------------------
                                                      SEPTEMBER 30,                       SEPTEMBER 30,
                                                      ------------                        ------------ 
                                                  1997              1996              1997             1996   
                                              -----------       -----------      ------------      -----------
<S>                                               <C>              <C>                <C>              <C>
Net income  . . . . . . . . . . . . . . . .       $ 32,746         $ 32,965           $ 3,104           $ 5,738
Dividends on redeemable preferred stock . .         (1,013)          (1,013)             (338)             (338)
                                                 ---------        ---------          --------         --------- 
Net income applicable to common stock . . .       $ 31,733         $ 31,952           $ 2,766          $  5,400
                                                  ========         ========           =======          ========
Average common and common equivalent
  shares outstanding (000's)  . . . . . . .         25,770           25,661            26,090            25,664
                                                  ========         ========           =======          ========
</TABLE>





                                       6
<PAGE>   9
               JOHN ALDEN FINANCIAL CORPORATION AND SUBSIDIARIES
              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                           (UNAUDITED) - (CONTINUED)




         Average common and common equivalent shares outstanding include common
shares outstanding and common stock equivalents attributable to outstanding
stock options.  All potentially dilutive securities are considered to be common
stock equivalents.

NOTE 4 -- REDEEMABLE SECURITIES

         The right for certain Management Stockholders to put their common stock
to the Company (the "redeemable common stock") under certain circumstances 
expired on October 30, 1997 resulting in a reduction in redeemable securities 
and a corresponding increase in stockholders' equity.  The effect on the 
accompanying condensed consolidated balance sheet as of September 30, 1997
would be a decrease in  redeemable securities of approximately $9.5 million
and an increase in  stockholders' equity by a corresponding amount.

NOTE 5 -- EFFECTS OF ACCOUNTING PRONOUNCEMENTS TO BE ADOPTED IN THE FUTURE

         In February 1997, the Financial Accounting Standards Board ("FASB")
issued Statement of Financial Accounting Standards No.  128, "Earnings Per
Share" ("SFAS 128").  This statement addresses the standards for computing and
presenting earnings per share and replaces the presentation of primary and
fully diluted earnings per share required under Accounting Principles Board
Opinion 15 ("APB 15") with a presentation of basic and diluted earnings per
share.  Basic earnings per share excludes dilution and is computed by dividing
income available to common shareholders by the weighted-average number of
common shares outstanding for the period.  Diluted earnings per share is
computed similarly to fully diluted earnings per share.  Adoption is required
for periods ending after December 15, 1997.  Had earnings per share been
calculated in accordance with the principles of SFAS 128 for the nine and three
months ended September 30, 1997, the Company's basic and diluted earnings per
share would not have been materially different from the calculation of primary
and fully diluted earnings per share, respectively, as calculated in accordance
with the principles of APB 15.

         In June 1997, the FASB issued Statement of Financial Accounting
Standards No. 130, "Reporting Comprehensive Income" ("SFAS 130") and Statement
of Financial Accounting Standards No. 131, "Disclosures about Segments of an
Enterprise and Related Information," ("SFAS 131").  SFAS 130 establishes
standards for the reporting and display of comprehensive income and its
components in a full set of general-purpose financial statements. Comprehensive
income is defined as the change in equity during the financial reporting period
of a business enterprise resulting from non-owner sources.  SFAS 131
establishes standards for the reporting of operating segment information in
both annual financial reports and interim financial reports issued to
shareholders.  Operating segments are components of an entity for which
separate financial information is available and is evaluated regularly by the
entity's chief operating management.  Both statements are effective for fiscal
years beginning after December 15, 1997 and are not expected to have a material
impact on the Company.

NOTE 6 -- LEGAL PROCEEDING

         During the period of April 1995 through May 1995, the Company and
certain of its officers and directors were named as defendants in a series of
putative class actions alleging violations of the federal securities laws.
While it is not possible to determine the ultimate disposition of this
proceeding, the Company believes that the ultimate disposition will not have a
material adverse effect on the Company's financial position, results of
operations or cash flows.





                                       7
<PAGE>   10



MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
OPERATIONS

                                    GENERAL

SALE OF ANNUITY OPERATIONS AND WESTERN DIVERSIFIED GROUP

         On March 31, 1997, the Company sold substantially all of its annuity
business (the "Annuity Operations") to SunAmerica Life Insurance Company
("SunAmerica").  The transaction included the sale of all of the common stock
of JANY and the coinsurance of substantially all of the annuity business of
JALIC.  This coinsurance will initially be on an indemnity basis and the
parties have agreed to transition the business to an assumption basis as soon
as practical.  In certain states, the transition to an assumption basis is
subject to policyholder approval.  To the extent that such transition does not
take place with respect to any particular policy, the policy will remain
reinsured on an indemnity basis.  A substantial portion of the transition to an
assumption basis is expected to be completed by December 31, 1998.  No
contracts have transitioned to an assumption basis as of September 30, 1997.

         As consideration for the Annuity Operations, SunAmerica paid the
Company approximately $238.2 million, which was determined through arms-length
negotiations.  The consideration represents an approximately $162.3 million
premium paid to acquire the business and approximately $75.9 million of
adjusted capital and surplus of JANY.  It does not include any capital and
surplus used to support the annuity business in JALIC, which will remain in
JALIC.

         On September 30, 1997, the Company sold all of the common stock of
substantially all of the subsidiaries which comprise the Western Diversified
Group (the principal subsidiaries of the Company that market credit life and
disability and retail service warranty coverage) to Protective Life Insurance
Company. As a result of the sales of the Annuity Operations and Western
Diversified Group, the Company recorded a net deferred gain of approximately
$45.0 million.  This amount is net of estimated transaction expenses, taxes,
goodwill and other adjustments relating to these transactions.  The net
deferred gain is subject to possible revision upon the ultimate resolution of
these estimates and will be recognized as income as SunAmerica completes the
assumption of policyholder liabilities.  The Company expects to begin
recognizing the net deferred gain in late 1997 and to earn the majority of the
gain by December 31, 1998.

         The Company's available capital was enhanced by both the after-tax
gain generated from the transactions and by the release of the net capital
previously allocated to support these businesses.  The Company continues to
evaluate the best uses of its capital, including the approximately $200 million
of excess capital generated from the sale of the Company's annuity and credit
businesses.  This capital may be used to repurchase common stock, pay
dividends, reduce debt or for general corporate purposes, or for a combination
of two or more of such uses.





                                       8
<PAGE>   11



                             RESULTS OF OPERATIONS

RESULTS SUMMARY

<TABLE>
<CAPTION>
                                              NINE MONTHS ENDED            THREE MONTHS ENDED
                                                SEPTEMBER 30,                SEPTEMBER 30,
                                          -------------------------   --------------------------
                                             1997           1996          1997           1996
                                          -----------    ----------   -----------   ------------
                                              (In millions, except share and per share data)
<S>                                       <C>             <C>          <C>          <C>
Operating income (1):
  Continuing operations . . . . . . . .   $  22.7         $  9.5       $  2.8       $   (3.0)
  Discontinued operations . . . . . . .       8.0           26.6          -             10.8
     Total  . . . . . . . . . . . . . .      30.7           36.1          2.8            7.8
Net income:
  Continuing operations . . . . . . . .      27.0           11.2          3.1           (2.5)
  Discontinued operations . . . . . . .       5.7           21.8          -              8.3
     Total  . . . . . . . . . . . . . .      32.7           33.0          3.1            5.8
Net income applicable to common stock .      31.7           32.0          2.8            5.4
Operating income per common share (1):
  Continuing operations . . . . . . . .      0.88           0.37         0.10          (0.12)
  Discontinued operations . . . . . . .      0.31           1.04         -              0.43
     Total  . . . . . . . . . . . . . .      1.19           1.41         0.10           0.31
Net income per common share . . . . . .      1.23           1.25         0.10           0.22
 Average common equivalent shares
   outstanding (000's). . . . . . . . .    25,770         25,661       26,090         25,664
</TABLE>


- ---------------
(1)  Applicable to common stock, excluding net realized investment gains
     (losses) and after preferred stock dividends.

      Operating income from continuing operations increased to $2.8 million, or
$0.10 per common share, for the three months ended September 30, 1997 from an
operating loss of $3.0 million, or $0.12 per common share, for the three months
ended September 30, 1996.  The increase in operating income was primarily due to
increased investment income earned resulting from the sale of the Annuity
Operations on March 31, 1997, a decrease in the loss ratio relating to the
Company's stop-loss reinsurance product line and a reduction in corporate
expenses, bad debts and other charges.  See further discussion below regarding
these variances.  Operating income from continuing operations increased to $22.7
million, or $0.88 per common share, for the nine months ended September 30, 1997
from $9.5 million, or $0.37 per common share, for the nine months ended
September 30, 1996 due primarily to the factors discussed above and a decrease
in the group gross medical loss ratio. These factors were partially offset by
the $23.0 million of severance and related charges incurred during the nine
months ended September 30, 1997 in relation to the Company's reduction in force
announced on March 31, 1997 as discussed below, an increase in the group gross
expense ratio and a decrease in group earned premiums.  Included in the 1997 
third quarter results is a cost of $0.41 per share relating to
higher-than-expected loss ratios in certain states from which the Company is
exiting ($0.14 per share) and adverse development of claims experience in the
remaining states related to periods prior to the third quarter ($0.27 per
share).

      Operating income from continuing operations decreased to $2.8 million, or
$0.10 per common share, for the three months ended September 30, 1997 from $17.3
million, or $0.68 per common share, for the three months ended June 30, 1997. 
This decrease was primarily attributable to an increase in the group gross
medical loss and expense ratios as discussed below and a decrease in group
earned premiums, partially offset by the reduction in corporate expenses
discussed above.





                                       9
<PAGE>   12



STATEMENT OF INCOME DATA

         The Company reports the results of operations of the Annuity
Operations and the Western Diversified Group as discontinued operations.  The
Company's continuing operations primarily consist of its group health business,
stop-loss reinsurance business and joint venture Health Maintenance
Organization ("HMO").

CONTINUING OPERATIONS

         The following tables recast the accompanying Condensed Consolidated
Statements of Income for continuing operations for the nine and three months
ended September 30, 1997 and 1996 as a percent of net insurance premiums and
contract charges earned ("net premiums"), and provide other relevant
information:

<TABLE>
<CAPTION>
                                                                               PERCENTAGE                               PERCENTAGE 
                                                     NINE MONTHS ENDED           CHANGE        THREE MONTHS ENDED         CHANGE   
                                                       SEPTEMBER 30,             POSITIVE          SEPTEMBER 30,          POSITIVE 
                                                 -----------------------        (NEGATIVE)    ------------------------   (NEGATIVE)
                                                  1997 (1)         1996          EFFECT          1997           1996       EFFECT
                                                 -----------------------     --------------   ------------------------ -------------
<S>                                                <C>           <C>           <C>            <C>           <C>            <C>
Revenues:
  Gross insurance premiums and contract
     charges earned . . . . . . . . . . . . . .    169.3%        180.4%        (11.1)%        163.2%        181.2%         (18.0)%
  Ceded insurance premiums and contract
     charges earned . . . . . . . . . . . . . .    (69.3)%       (80.4)%        11.1%         (63.2)%       (81.2)%         18.0%
                                                 ---------      --------     ---------        --------      --------       -------  
    Net insurance premiums and contract
        charges earned  . . . . . . . . . . . .    100.0%        100.0%          0.0%         100.0%        100.0%          (0.0)%
  Net investment income   . . . . . . . . . . .      7.3%          4.4%          2.9%           8.8%          4.6%           4.2%
  Other income  . . . . . . . . . . . . . . . .      8.5%          6.1%          2.4%           3.4%          4.6%          (1.2)%
  Net realized investment gains (losses)  . . .      0.8%          0.1%          0.7%           0.0%          0.1%          (0.1)%
                                                 ---------      --------     ---------        --------      --------       -------  
    Total revenues  . . . . . . . . . . . . . .    116.6%        110.6%          6.0%         112.2%        109.3%           2.9%
                                                 ---------      --------     ---------        --------      --------       -------  
Benefits and expenses:
  Gross claims incurred on insurance
     products . . . . . . . . . . . . . . . . .    123.6%        134.2%         10.6%         128.9%        139.8%          10.9%
  Ceded claims incurred on insurance
     products . . . . . . . . . . . . . . . . .    (51.6)%       (62.3)%       (10.7)%        (52.3)%       (65.0)%        (12.7)%
                                                 ---------      --------     ---------        --------      --------       -------  
    Net claims incurred on insurance
        products. . . . . . . . . . . . . . . .     72.0%         71.9%         (0.1)%         76.6%         74.8%          (1.8)%
  Universal life and investment-type
      contract benefits . . . . . . . . . . . .      2.1%          1.8%         (0.3)%          2.2%          1.8%          (0.4)%
  Increase (decrease) in life insurance
      reserves. . . . . . . . . . . . . . . . .     (0.3)%         0.0%          0.3%          (0.4)%         0.1%           0.5%
                                                 ---------      --------     ---------        --------      --------       -------  
    Total benefits  . . . . . . . . . . . . . .     73.8%         73.7%         (0.1)%         78.4%         76.7%          (1.7)%
                                                 ---------      --------     ---------        --------      --------       -------  
  Commissions   . . . . . . . . . . . . . . . .      6.6%          7.7%          1.1%           6.7%          7.6%           0.9%
  General expenses  . . . . . . . . . . . . . .     26.8%         24.1%         (2.7)%         22.4%         23.2%           0.8%
  Amortization of purchased intangibles   . . .      0.5%          0.6%          0.1%           0.5%          0.7%           0.2%
  Amortization of deferred policy
      acquisition costs . . . . . . . . . . . .      1.7%          1.3%         (0.4)%          1.2%          1.5%           0.3%
  Interest expense  . . . . . . . . . . . . . .      0.6%          0.6%          0.0%           0.6%          0.6%           0.0%
                                                 ---------      --------     ---------        --------      --------       -------  
    Total benefits and expenses   . . . . . . .    110.0%        108.0%         (2.0)%        109.8%        110.3%           0.5%
                                                 ---------      --------     ---------        --------      --------       -------  
Income (loss) from continuing operations
    before provision  (benefit) for income
    taxes and minority interest in joint
    venture's income  . . . . . . . . . . . . .      6.6%          2.6%          4.0%           2.4%         (1.0)%          3.4%
Provision (benefit) for income taxes. . . . . .      2.5%          1.1%         (1.4)%          0.9%          0.0%          (0.9)%
Minority interest in joint venture's income . .     (0.1)%        (0.1)%        (0.0)%         (0.2)%         0.0%          (0.2)%
                                                 ---------      --------     ---------        --------      --------       -------  
Net income (loss) from continuing
  operations  . . . . . . . . . . . . . . . . .      4.0%          1.4%          2.6%           1.3%         (1.0)%          2.3%
                                                 =========      ========     =========        ========      ========       =======  
</TABLE>





                                       10
<PAGE>   13




<TABLE>
<CAPTION>
                                                                               PERCENTAGE                               PERCENTAGE 
                                                     NINE MONTHS ENDED           CHANGE        THREE MONTHS ENDED         CHANGE   
                                                       SEPTEMBER 30,             POSITIVE          SEPTEMBER 30,          POSITIVE 
                                                 -----------------------        (NEGATIVE)    ------------------------   (NEGATIVE)
                                                     1997          1996          EFFECT          1997           1996       EFFECT
                                                 -----------------------     --------------   ------------------------ -------------
<S>                                                <C>           <C>           <C>            <C>           <C>            <C>
Other relevant information:
  Group insured data:
    Employers (2)   . . . . . . . . . . .           124,000        197,000     (37.1)%        124,000         197,000       (37.1)%
    Employee lives  . . . . . . . . . . .           314,000        512,000     (38.7)         314,000         512,000       (38.7)
    Group covered lives   . . . . . . . .           601,000        975,000     (38.4)         601,000         975,000       (38.4)
    HMO covered lives   . . . . . . . . .           105,000         71,000      47.9          105,000          71,000        47.9
      Total covered lives   . . . . . . .           706,000      1,046,000     (32.5)         706,000       1,046,000       (32.5)
  Group gross medical loss ratio  . .                  71.2%          74.2%      3.0%            78.1%           76.7%       (1.4)%
</TABLE>

- --------------
(1)      For the nine months ended September 30, 1997, the effects of the
assumption of a block of life insurance under a reinsurance treaty, which
increased gross premiums and contract charges earned ("gross premiums") and
benefits by approximately $35.9 million, have been excluded from this table.
The transaction resulted in no net income or loss.

(2)      Includes 24,000 and 34,000 groups, each group made up of one
individual, as of September 30, 1997 and 1996, respectively, marketed through
an association trust.

         Gross premiums decreased 21.4% to $355.1 million for the three months
ended September 30, 1997 from $451.6 million for the three months ended
September 30, 1996.  Gross premiums decreased 15.2% to $1,192.8 million for the
nine months ended September 30, 1997 from $1,406.0 million for the nine months
ended September 30, 1996.  During the three months ended March 31, 1997, the
Company assumed a block of life insurance, which had the effect of increasing
gross premiums and benefits by approximately $35.9 million.  This reinsurance
treaty had no effect on the net results of operations for the three months
ended March 31, 1997.  All subsequent discussion of results of operations will
exclude the effects of this reinsurance treaty.  Excluding the effects of this
treaty, gross premiums decreased 17.7% to $1,156.9 million for the nine months
ended September 30, 1997 as compared to the nine months ended September 30,
1996.  This decrease was primarily a result of the 38.4% decrease in group
covered lives discussed below, partially offset by premium rate increases and
growth in the premiums earned in the joint venture HMO.  This joint venture,
NHP Holding Company, Inc. ("NHP"), was formed in the third quarter of 1994 with
a physician hospital organization.  Covered lives in the HMO have increased
47.9% to 105,000 at September 30, 1997 from 71,000 at September 30, 1996.  The
Company's 50% share of the net income of NHP was $1.1 million and $0.8 million
for the nine months ended September 30, 1997 1996, respectively.

         During 1996, the Company continued to experience relatively high gross
medical loss ratios.  In response, the Company significantly increased premium
rates, improved provider discount arrangements, redesigned benefit packages,
modified commission structures and discontinued portions of the business as
deemed advisable.  In 1996, the Company ceased marketing in the State of
Kentucky and terminated certain other marketing arrangements.  In the first
quarter of 1997, the Company decided to stop selling small group insurance
plans in California, Maryland, and New Jersey and to terminate existing small
group insurance plans in these states.  These various actions contributed to a
38.4% decrease in group covered lives to 601,000 at September 30, 1997 from
975,000 at September 30, 1996.

         Net investment income increased 47.9% to $50.3 million for the nine
months ended September 30, 1997 from $34.0 million for the nine months ended
September 30, 1996 and 67.8% to $19.3 million for the three months ended
September 30, 1997 from $11.5 million for the three months ended September 30,
1996.  As a percentage of net premiums, net investment income increased from
4.6% for the three months ended September 30, 1996 to 8.8% for the three months
ended September 30, 1997 and from 4.4% for the nine months ended September 30,
1996 to





                                       11
<PAGE>   14



7.3% for the nine months ended September 30, 1997.  This increase was primarily
attributable to the proceeds of the sale of the Annuity Operations discussed
above.

         Other income consists primarily of profit sharing provisions in
accordance with a Group Reinsurance Agreement with London Life Insurance
Company and Transamerica Occidental Life Insurance Company (the "Group
Reinsurance Agreement").  The amount of these profit sharing provisions has
increased between these periods due primarily to the decrease in the group
gross medical loss ratio.

         Total benefits decreased 12.2% to $503.9 million for the nine months
ended September 30, 1997 from $574.1 million for the nine months ended
September 30, 1996 and 10.7% to $170.6 million for the three months ended
September 30, 1997 from $191.1 million for the three months ended September 30,
1996.  As a percentage of net premiums, total benefits increased to 73.8% for
the nine months ended September 30, 1997 from 73.7% for the nine months ended
September 30, 1996 and to 78.4% for the three months ended September 30, 1997
from 76.7% for the three months ended September 30, 1996.  The group gross
medical loss ratio was 71.2% and 74.2% for the nine months ended September 30,
1997 and 1996, respectively, and 78.1% and 76.7% for the three months ended
September 30, 1997 and 1996, respectively.  Included in the 1997 third quarter
results is a cost of $0.41 per share relating to higher-than-expected loss
ratios in certain states from which the Company is exiting ($0.14 per share)
and adverse development of claims experience in the remaining states related to
periods prior to the third quarter ($0.27 per share).  Excluding the exited
states and the additional claims expense relating to the adverse development of
prior periods, the group gross medical loss ratio was 71.9% for the three
months ended September 30, 1997 as compared to 76.7% for the three months ended
September 30, 1996.  These decreases in the medical loss ratio are generally
attributable to the premium rate increases and other actions which have been
taken by the Company during the past two years.  Much of the gross medical loss
ratio improvement over the prior year is recorded as an experience refund under
the Group Reinsurance Agreement and is included in other income, as discussed
above.  

         Commissions, as a percentage of net premiums, declined to 6.6% for the
nine months ended September 30, 1997 from 7.7% for the nine months ended
September 30, 1996 and 6.7% for the three months ended September 30, 1997 from
7.6% for the three months ended September 30, 1996.  These decreases were
primarily due to the relative decrease in new group product sales, which incur
a higher commission rate than renewals.  In addition, the decrease has been
affected by the increase in sales of the HMO product, which incur a lower
commission rate than group products.

         General expenses decreased 2.2% to $183.3 million for the nine months
ended September 30, 1997 from $187.5 million for the nine months ended
September 30, 1996 and 15.7% to $48.7 million for the three months ended
September 30, 1997 from $57.8 million for the three months ended September 30,
1996.  As a percentage of net premiums, general expenses increased to 26.8% for
the nine months ended September 30, 1997 from 24.1% for the nine months ended
September 30, 1996 and decreased to 22.4% for the three months ended September
30, 1997 from 23.2% for the three months ended September 30, 1996.  During the
three months ended March 31, 1997, the Company restructured its operations in
conjunction with the closing of the sale of the Annuity Operations and
anticipated reduced premium volume in its group operations.  On March 31, 1997,
the Company announced that during 1997 it would reduce its workforce by
approximately 725 employees, of which approximately 475 employees are included
in the Company's continuing operations and which represents approximately 20%
of the continuing operations workforce.  Accordingly, the Company incurred a
pre-tax charge to continuing operations of $23.0 million for severance and
related charges.  During the three months ended March 31, 1996, the Company
incurred a $6.7 million continuing operations pre-tax charge related to its
strategic evaluation of operations.  Excluding these charges, general expenses
decreased 11.3% to $160.3 million for the nine months ended September 30, 1997
from $180.8 million for the nine months ended September 30, 1996 and 15.7% to
$48.7 million for the three months ended September 30, 1997 from $57.8 million
for the three months ended September 30, 1996.  These decreases are primarily
due to the reduction in workforce and other expense





                                       12
<PAGE>   15



reductions which have been implemented during 1997 including a reduction in
corporate expenses, bad debts and other charges during the three months ended
September 30, 1997.

         The provision for income taxes, as a percentage of net premiums, has
increased during these periods due primarily to the increase in pre-tax income
from continuing operations and the decrease in net premiums.


                                BUSINESS OUTLOOK

         The Company announced that in August 1997, it retained Credit Suisse
First Boston Corporation to explore strategic alternatives in order to maximize
shareholder value.  In mid-September, the Company began discussions with
several parties regarding possible business combinations, including the
possible sale of the Company.  The Company intends to continue discussions with
certain of these parties, and may pursue discussions with other parties as
well.  There can be no assurance that any such transaction will be entered into
or consummated, nor any certainty as to the timing or terms of any such
transaction that may be consummated.  The Company remains committed to
maximizing shareholder value by improving the profitability of its operations
through controlling claims, encouraging sales of its new group health product,
retaining existing business and reducing operating and overhead costs to offset
the decline in premium volume.

         The Company continues to evaluate the best uses of its capital,
including the approximately $200 million of excess capital generated from the
sale of the Company's annuity and credit businesses.  This capital may be used
to repurchase common stock, pay dividends, reduce debt or for general corporate
purposes, or for a combination of two or more of such uses.  Repurchases of the
Company's common stock might be affected through one or more open market,
self-tender or similar stock repurchase programs, although there can be no
assurance that any such programs will be implemented by the Company.  However,
the Board of Directors has authorized management to make open market purchases
from time to time, depending upon market conditions and in amounts management
deems advisable, of up to ten percent of the Company's outstanding common
stock.  Such open market repurchases of common stock could be affected at a
time when the Company is conducting the strategic discussions referred to
above, and there can be no assurance that the prices paid in such repurchases
will be greater than, and may in fact be less than, the consideration received
in transactions, if any, that may result from strategic discussions or other
subsequent stock repurchase programs, if any.

         In January 1997, the Company announced that it would be focusing its
marketing efforts and resources in those markets and states in which it
believes it can best increase profitability and market share.  In connection
with this strategy, in the first quarter of 1997, the Company decided to stop
selling small group insurance plans in California, Maryland and New Jersey and
to terminate existing small group insurance plans in these states.  The Company
began the introduction of a new product in April 1997 and as of October 1997 is
offering this product in 28 states which represents most of the states in which
the Company expects to focus its marketing efforts.  As the Company exits the
states noted above and possibly other states, and until the new product is sold
in sufficient quantities to exceed lapses of the existing inforce product, the
Company may experience further reductions in group covered lives, and as a
result, in gross premiums.  If gross premiums decline at a faster rate than the
Company is able to reduce general expenses, the group gross expense ratio could
increase in the future.






                                       13
<PAGE>   16




         The Company has generally experienced a higher gross medical loss
ratio in the fourth quarter versus other quarters of the year.  The Company
believes that these higher medical loss ratios are primarily due to increased
incidence of claims associated with the colder, winter climate and the fact
that insureds generally exceed the calendar year deductible and out-of-pocket
expense limits of their policies by that time of year.  The Company has also
generally experienced relatively higher gross medical loss ratios with groups
that have been inforce for a longer period of time.  New business has generally
produced relatively lower gross medical loss ratios compared to the renewing
inforce business.  The Company cannot predict the extent to which these
historical patterns will continue, increase or decrease in the future.


         Historically, group insurance business has been subject to pricing and
profitability cycles that are driven by competitive price pressures within the
industry.  These pressures and other factors make it difficult to predict with
certainty the effect pricing changes will have on the Company's profitability.
Traditionally, the cycle has been characterized by a period of higher
profitability, which has fostered intense price competition and aggressive
marketing by new entrants and existing companies striving to increase market
share, thereby resulting in lower profitability.  The lower profitability
typically resulted in a withdrawal of competitors and a firming of prices,
resulting once again in increased profitability and a renewal of the cycle.
There are factors in the current cycle that were not present in previous
cycles.  One significant factor is small group and individual healthcare
legislative reform and its effect on medical underwriting and pricing.  Small
group and individual healthcare reforms, primarily at the state level and
increasingly at the federal level, include legislation on matters such as
guaranteed issue, mandated benefits, premium rate limits (including community
rating and modified community rating), guaranteed renewability, minimum loss
ratio mandates, risk adjustment mechanisms which allocate losses of individual
carriers to group carriers, and other reforms.  Additionally, managed care
providers, the most significant of which are HMO's, now represent a more
significant source of competition than in previous cycles.

         In 1996, Congress enacted HR 3103 ("Health Insurance Portability and
Accountability Act", or "HIPAA"), also commonly referred to as the
Kennedy-Kassenbaum Bill.  HIPAA provisions applicable to both insured and
self-funded employer group coverage include minimum standards for pre-existing
condition exclusions, waiver of pre-existing condition exclusions for
individuals meeting minimum prior coverage requirements and prohibition of
health related exclusion of individuals from employer group coverage.  HIPAA
also provides guaranteed acceptance of small employers with 2 to 50 employees
for insured coverage.  In other respects, HIPAA's group and small group
provisions are largely in line with state small group reform laws already
enacted by the large majority of states.  In the individual market, HIPAA
requires guaranteed acceptance for eligible individuals moving out of group
plans who have at least 18 months of prior coverage.  However, most of these 
states are expected to amend their laws to alleviate any inconsistencies.  
States which have not already enacted all of the HIPAA group and small group 
standards may enact state reforms consistent with HIPAA.  The final outcome of 
state amendments or new legislation, as well as federal regulations addressing 
these provisions, cannot be predicted.





                                       14
<PAGE>   17



                        LIQUIDITY AND CAPITAL RESOURCES

INDEBTEDNESS

         The Company maintains a Credit Agreement with The Chase Manhattan Bank
which was amended in July 1994 to increase the commitment amount of the term
loan to $110.0 million and to establish a revolving credit loan with a
commitment amount of $40.0 million and an expiration of July 1998 (the "Credit
Agreement").  As of September 30, 1997, the Company has $23.5 million available
under the revolving credit loan.  In April 1997, the Company made a scheduled
principal payment under the Credit Agreement of $25.0 million.  The principal
amount of outstanding indebtedness of the Company was $76.5 million as of
September 30, 1997.  Future required principal payments are $41.5 million in
1998 and $35.0 million in 1999.  As of September 30, 1997 and December 31,
1996, the Company's ratio of debt and redeemable securities to stockholders'
equity was 0.21 to 1 and 0.26 to 1, respectively.  The weighted average
interest rates on the Company's indebtedness were approximately 6.3% and 7.7%
for the nine months ended September 30, 1997 and 1996, respectively.

DIVIDENDS

         The Credit Agreement restricts dividends and other distributions
payable by the Company.  In any period of 12 consecutive months, the Company
may pay cash dividends on, or repurchase for cash, capital stock in an amount
not to exceed 15% of net worth (representing stockholders' equity excluding net
unrealized gains (losses) on investments plus redeemable securities) as of the
end of the fiscal quarter ending on or most recently prior to the last day of
such 12 month period ($72.4 million for the 12 months ended September 30,
1997).

      The Company paid preferred stock dividends of approximately $0.7 million
in April 1997.  In each of March, June and September 1997, the Company declared
common stock dividends of approximately $3.0 million which were paid in the
subsequent month.

CASH FLOWS

         Net cash provided by operating activities decreased to $57.0 million
for the nine months ended September 30, 1997 from $225.8 million for the nine
months ended September 30, 1996.  The decrease was generally attributable to
the decrease in operating cash flows generated from the Company's Annuity
Operations, which were sold on March 31, 1997, as well as the timing of
settlement of liabilities under reinsurance agreements and benefit payments.

         Net cash provided by investing activities aggregated $200.4 million
for the nine months ended September 30, 1997 compared to net cash used in
investing activities of $55.9 million for the nine months ended September 30,
1996.  In connection with the sale of the Annuity Operations discussed above,
SunAmerica paid a purchase price to the Company of $238.2 million.  In
addition, SunAmerica paid $33.1 million to the Company for accrued interest and
related items.  In turn, the Company paid SunAmerica $360.4 million of cash and
cash equivalents because policy reserves transferred exceeded invested assets
transferred.  Additionally, the Company's cash and cash equivalent position was
decreased by JANY's cash and cash equivalent balance at the time of the sale of
$88.5 million, which was retained by JANY.  Therefore, the Company incurred a
net outflow of cash and cash equivalents due to the sale of the Annuity
Operations of $177.6 million.  Offsetting this use of cash and cash equivalents
duing the nine months ended September 30, 1997 were proceeds from sales,
maturities and repayments of investments.  Additionally, the Company increased
its cash position by net cash of $23.3 million as a result of the sale of the
Western Diversified Group.

         Net cash used in financing activities decreased to $137.3 million for
the nine months ended September 30, 1997 from $181.6 million for the nine
months ended September 30, 1996.  This was due to decreased sales of





                                       15
<PAGE>   18



annuity products and an increase in surrender activity of such products
following the announcement in March 1996 that the Company was selling its
Annuity Operations.

         During the nine months ended September 30, 1997, the Company sold
sufficient available-for-sale securities, along with existing cash and cash
equivalents, to aggregate $188.0 million, which was dividended by the insurance
subsidiaries to the holding company.  This cash may be used to repurchase
common stock, pay dividends, reduce debt, for general corporate purposes, or
for a combination of two or more of such uses.

         The Annuity Operations have historically represented a significant
source of cash flows to the Company. Historically, the Annuity Operations were
profitable, generating a positive cash flow from operations.  As the annuity
business grew, the considerations received historically exceeded the payments
on these contracts, producing positive cash flows from financing activities. In
1996 and for the three months ended March 31, 1997, surrenders or other
payments have exceeded receipts from these contracts, producing negative cash
flows from financing activities.  The operating cash flows and the financing
cash flows from the Annuity Operations provided the funds for the majority of
the investing activities of the Company.  Now that the sale of the Annuity
Operations is complete, the Company no longer has the positive cash flows from
operations or negative cash flows from financing activities in connection with
this business.  The Company realized net positive cash flows from operations for
the three months ended March 31, 1997 of $100.1 million, but experienced net
negative cash flows from operations of $43.1 million for the six months ended
September 30, 1997.  This decrease was primarily attributable to the sale of the
Annuity Operations, a reduction in operating income and the timing of
settlements of accruals previously established for severance and related
charges.  In addition, the majority of the net negative cash flows from
financing activities of $137.3 million for the nine months ended September 30,
1997, which includes payments on investment contracts, will no longer be
experienced.  Future cash flows from investing activities will be reduced from
historical levels as the Company's investment portfolio has been reduced from
approximately $6.0 billion at December 31, 1996 to approximately $0.8 billion at
September 30, 1997 following the sale of the Annuity Operations.

         The Company uses a variety of data processing hardware and software
systems to process its business.  Many of these systems utilize a two-digit
field to identify a year, as has been standard in most data processing systems. 
A two-digit year field will not process correctly once a change in century
occurs in the year 2000.  The Company, in common with most organizations that
use automated systems, must transition its systems to a four-digit year field
by the year 2000 or arrange for other processing alternatives.  In order to
process certain calculations correctly, in some instances this transition must
be completed by January 1, 1999.  The Company has been working on this project
(the "Year 2000 project") for several months.  To date, the Company has
indentified certain existing systems that will be modified to be year 2000
compliant and modifications are currently being made to such systems.  The
Company is currently evaluating which other systems will be modified to be year
2000 compliant, and which systems will be the subject of other processing
alternatives.  The Year 2000 project may result in substantial cash
expenditures as the Company transitions its systems for the new century.

         The Company believes that sufficient sources of cash flow exist which
will be available in the foreseeable future to allow the Company to service its
debt, redeem preferred stock, pay anticipated dividends and satisfy other
requirements.

REINSURANCE

         As discussed above, in conjunction with the sale of the Annuity
Operations, the Company has entered into a coinsurance agreement with
SunAmerica relating to substantially all of the JALIC annuity business.  This
coinsurance is initially on an indemnity basis and the parties have agreed to
transition the business to an assumption basis as soon as practical. In certain
states, the transition to an assumption basis is subject to policyholder
approval.  To the extent that such transition does not take place with respect
to any particular policy, the policy will remain reinsured on an indemnity
basis.  A substantial portion of the transition to an assumption basis is
expected to be completed by December 31, 1998.  No contracts have transitioned
to an assumption basis as of September 30, 1997.  Assets equal to the amount of
policy reserves ceded of approximately $3.6 billion have been placed in trust
for the benefit of JALIC.  In addition, substantially all of the Company's
existing coinsurance which had previously been ceded to other reinsurers has
now been assigned to SunAmerica.  Assets equal to these reserves of
approximately $0.6 billion have been placed in trust for the benefit of
SunAmerica.  JALIC, in turn, is indemnified under these reinsurance agreements
by SunAmerica.  SunAmerica is rated "A+ (Superior)" by A.M. Best and Company.
         




                                       16
<PAGE>   19



INVESTMENTS

         The following table sets forth the composition of the Company's debt
securities portfolio by rating as of September 30, 1997 (dollars in thousands):

<TABLE>
<CAPTION>
                         HELD-TO-      AVAILABLE-        TRADING           TOTAL          % OF TOTAL
                         MATURITY       FOR-SALE         ACCOUNT          CARRYING         CARRYING
                        SECURITIES     SECURITIES       SECURITIES         VALUE             VALUE  
                        ----------     ----------       ----------       ----------       ----------
<S>                     <C>            <C>               <C>             <C>                    <C>
Rating (1)
AAA (2) . . . . . . . . $ 20,655       $ 161,983         $  3,505        $ 186,143               31.1%
AA  . . . . . . . . . .    4,771          85,492               --           90,263               15.1
A . . . . . . . . . . .   15,061         239,507               --          254,568               42.5
BBB . . . . . . . . . .    4,854          63,080               --           67,934               11.3
                       ---------      ----------      -----------       ----------             ------
    Total   . . . . . . $ 45,341       $ 550,062         $  3,505        $ 598,908              100.0%
                       =========      ==========      ===========       ==========             ====== 
</TABLE>

- ---------------
(1) Debt securities are classified according to the lowest rating by a
    nationally recognized statistical rating organization.  Debt securities not
    rated by any such organization are classified according to the rating
    assigned to them by the NAIC as follows: NAIC class 1 is considered
    equivalent to an A or higher rating; class 2, BBB; class 3, BB; and classes
    4-6, B and below.

(2) Includes approximately $50,056,000 of U.S. government and agency debt
    securities.





                                       17
<PAGE>   20



                                   PART II
ITEM 1.  LEGAL PROCEEDINGS

         The Company is involved in various legal proceedings incidental to the
conduct of its business. While it is not possible to determine the ultimate
disposition of each of these proceedings, the Company believes that the
ultimate disposition of such proceedings, individually and in the aggregate
(including the lawsuit discussed below), will not have a material adverse
effect on the Company's financial position, results of operations or cash
flows.

         During the period of April 1995 through May 1995, the Company and
certain of its officers and directors were named as defendants in a series of
putative class actions alleging violations of the federal securities laws.  The
actions, Christopher W.  Aronson, et. al. v. John Alden Financial Corporation,
et. al.; In Re:  John Alden Financial Corporation Securities Litigation, all of
which were filed in the United States District Court for the Southern District
of Florida (the "Court"), have been consolidated.  In October 1995, the
plaintiffs filed a Consolidated Amended Complaint purportedly on behalf of a
class of persons who purchased the Company's common stock, par value $.01 per
share (the "Common Stock") during the period of October 27, 1994 through May 3,
1995 seeking unspecified damages, fees, costs and interest.  The first of the
original complaints was filed after the Company revised its previously
announced earnings for the fourth quarter of 1994 to reflect an unanticipated
increase in claims received in 1995 for medical services rendered in 1994.  The
remainder of the original complaints were filed after the Company increased
reserves during the first quarter of 1995 to reflect a further increase in such
claims.  On September 30, 1996, the Court denied the defendants' motion to
dismiss the Consolidated Amended Complaint and the Court certified a class of
those persons who purchased the Company's Common Stock during the period
between October 27, 1994 through May 3, 1995.  Discovery in this lawsuit is
ongoing.  The Company and individual defendants deny any wrongdoing, believe
they have meritorious defenses against the claims asserted, and intend to
vigorously defend the lawsuit.





                                       18
<PAGE>   21



ITEM 6.  EXHIBITS AND REPORTS ON FORM 8-K

         (a)     Exhibits
                 See accompanying Index to Exhibits below.

         (b)     Reports on Form 8-K
                 None.





                                       19
<PAGE>   22



                                   SIGNATURE


Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed by the undersigned
thereunto duly authorized.



                                JOHN ALDEN FINANCIAL CORPORATION
                                
                                
                                
Date: November 13, 1997                 By: /s/ Scott L. Stanton               
                                           ------------------------------------
                                                 Scott L. Stanton
                                                 Senior Vice President and
                                                 Chief Financial Officer





                                       20
<PAGE>   23



                                 EXHIBIT INDEX


Exhibit
No.                               Description
- ---                               -----------

10.63     Amended and Restated Employment Agreement dated November 5, 1997, by
          and between John Alden Financial Corporation and Glendon E. Johnson.

10.64     Change of Control Employment Agreement dated November 5, 1997 between
          John Alden Financial Corporation and Marvin H. Assofsky.

10.65     Change of Control Employment Agreement dated November 5, 1997 between
          John Alden Financial Corporation and Glen A. Spence.

10.66     Change of Control Employment Agreement dated November 5, 1997 between
          John Alden Financial Corporation and Scott L. Stanton.

10.67     Change of Control Employment Agreement dated November 5, 1997 between
          John Alden Financial Corporation and Michael P. Andersen.

10.68     Change of Control Employment Agreement dated November 5, 1997 between
          John Alden Financial Corporation and Lonnie R. Wright, Jr.

10.69     Change of Control Employment Agreement dated November 5, 1997 between
          John Alden Financial Corporation and Kerry D. Clemmons.

10.70     Change of Control Employment Agreement dated November 5, 1997 between
          John Alden Financial Corporation and Mark A. Schoder.

10.71     Change of Control Employment Agreement dated November 5, 1997 between
          John Alden Financial Corporation and Anne V. Wardlow.

10.72     Change of Control Employment Agreement dated November 5, 1997 between
          John Alden Financial Corporation and William S. Wilkins.

10.73     Change of Control Employment Agreement dated November 5, 1997 between
          John Alden Financial Corporation and William H. Mauk, Jr.

10.74     Change of Control Employment Agreement dated November 5, 1997 between
          John Alden Financial Corporation and James H. Srite.

10.75     Change of Control Employment Agreement dated November 5, 1997 between
          John Alden Financial Corporation and Patsy Campola.

10.76     Change of Control Employment Agreement dated November 5, 1997 between
          John Alden Financial Corporation and Gary F. Kadlec.

27        Financial Data Schedule





                                       21


<PAGE>   1




                                                                 EXHIBIT 10.63



                              AMENDED AND RESTATED
                              EMPLOYMENT AGREEMENT

            AMENDED AND RESTATED AGREEMENT dated as of November 5, 1997 (the
"Effective Date") between John Alden Financial Corporation, a Delaware
corporation ("Employer") and Glendon E. Johnson ("Executive").

            Employer, through its Affiliates (as defined below), is engaged in
the life insurance business. Executive is to be employed by Employer as its
Chairman and Chief Executive Officer.

            The parties therefore agree as follows:

            1. Employment and Duties. Employer hereby employs Executive and
Executive hereby accepts employment as Chairman and Chief Executive Officer of
Employer and, if Employer so elects, of any of the direct or indirect
subsidiaries of Employer. Such subsidiaries are sometimes referred to herein as
"Affiliates" of Employer. Executive shall have and perform the duties and have
the powers and authority of the Chairman and Chief Executive Officer under the
direction of the Board of Directors of Employer or such Affiliate, as the case
may be.

            2. Services and Exclusivity of Services. So long as this Agreement
shall continue in effect, Executive shall devote his full business time and
energy to the business, affairs and interests of Employer and its Affiliates and
matters related thereto and shall use his best efforts and abilities to promote
its or their interests. Executive agrees to serve without additional
remuneration in such senior executive capacity for one or more of the Affiliates
of Employer, with responsibilities and authority commensurate with the nature of
Executive's responsibility and authority, as described in Paragraph 1, as the
Board of Directors of Employer may from time to time request, subject to
appropriate authorization by the Affiliates involved and any limitations under
applicable law. Executive agrees that he will faithfully and diligently endeavor
to promote the business, affairs and interests of Employer and its Affiliates.
Executive's failure to discharge an order or perform a function because
Executive reasonably and in good faith 
<PAGE>   2

believes such would violate a law or regulation or be dishonest shall not be
deemed a breach by him of his obligations or duties hereunder.

            Executive may serve as a director or in any other capacity of any
business enterprise, including an enterprise whose activities may involve or
relate to the business of Employer and its Affiliates, provided that such
service is expressly approved by the Board of Directors of Employer. Executive
may make and manage personal business investments of his choice and serve in any
capacity with any civic, educational or charitable organization, or any
governmental entity or trade association, without seeking or obtaining approval
by the Board of Directors of Employer, provided such activities and service do
not materially interfere or conflict with the performance of his duties
hereunder.

            3. Place and Time of Services. Executive shall render his services
generally in, and shall not be obligated to maintain his office in any place
other than, Miami, Florida. Executive shall be required to take such trips as
may be reasonably necessary in connection with his duties hereunder, and
Employer shall, in addition to all other payments provided for hereunder, pay
Executive's transportation and living expenses in connection with each such trip
and subsequent return.

            4. Term. The term of this Agreement shall commence as of the
Effective Date and shall continue until the third anniversary of the Effective
Date or until sooner terminated as set forth in Paragraph 6 below. (The term of
this Agreement is hereinafter sometimes referred to as the "Employment Period".)
Notwithstanding the foregoing, upon a Change in Control (as defined in Paragraph
7) the Employment Period shall extend for at least 3 years following such Change
in Control.

            5. Compensation, Expenses and Other Benefits.

               a. Base Salary. Employer shall pay Executive a base salary ("Base
Salary"), in equal installments on those days when it regularly pays its senior
executives, from and after the Effective Date at the annual rate of $719,264.00
Base Salary shall be reviewed at least 


                                      -2-
<PAGE>   3

annually and may be increased but shall not be decreased, and any such increased
Base Salary shall be the "Base Salary" for purposes of this Agreement.

               b. Bonus. In addition to Executive's Base Salary, Employer shall 
pay Executive an annual bonus, determined in accordance with the 1997 John Alden
Short-Term Incentive Compensation Plan ("1997 Plan") and such successor plans as
may be adopted by Employer. The formula and other factors used to determine
Executive's future bonus payments (including, without limitation, the relative
percentage of Base Salary payable as a bonus at various performance levels),
based upon the comparison of the actual performance of Employer to the projected
performance levels of Employer, shall be no less favorable to Executive than the
formula and other factors used in the 1997 Plan. The projected performance
levels of Employer used in connection with such formula shall be determined in a
manner no less favorable to Executive than the manner in which such projected
levels were determined under the 1997 Plan. In the event that Executive's
employment hereunder is terminated (whether by death, disability or otherwise),
he shall receive payment of all accrued but unpaid bonus payments for prior
years. In the event of Executive's death, such payments will be made to the
persons specified in Paragraph 6(e).


               c.  Expenses. Employer shall promptly reimburse Executive for all
reasonable expenses incurred by him in connection with the performance of his
services under this Agreement, upon presentation of appropriate documentation in
accordance with Employer's and its Affiliates' customary procedures and policies
applicable to its and their senior executives. Additionally, Executive shall be
entitled to an expense allowance of $6,000 per annum, payable monthly, for which
Executive shall not be accountable.

               d.  Automobile. Employer shall make available for use by 
Executive during the Employment Period an automobile of a kind (or automobile
allowance, at his option), and upon terms, comparable to those upon which
automobiles (or allowances) are provided to members of Employer's and its
Affiliates' senior management.

               e.  Benefits. Except as otherwise provided in this Agreement,
during the Employment Period Employer shall (i) provide Executive with the
benefits under Employer's 


                                      -3-
<PAGE>   4

and its Affiliates' present benefit plans and allowance programs, including, but
not limited to pension, life, accident, health, dental, disability, housing,
travel and accident insurance, employees' savings plans, bonus and incentive
compensation plans, executive medical examinations, supplemental employee
retirement plan benefits and other similar benefits and allowances; or (ii)
provide to Executive other benefit plans and allowance programs with benefit and
allowances at least equal to the benefits and allowances provided to Executive
under the existing benefit plans of Employer and its Affiliates. Notwithstanding
anything in this Agreement to the contrary, following Executive's date of
termination of employment (other than upon death or by Employer for Cause), for
the remainder of Executive's lifetime, Executive (and his family as applicable)
shall receive continued health insurance benefits from Employer at the level and
cost to Executive in effect as of his date of termination.

               f.   Vacation. Executive shall be entitled to a paid vacation
during each year of the Employment Period in accordance with the vacation policy
available to other senior executives of Employer and its Affiliates.

        6.     Termination.

               a. With Cause. This Agreement may be terminated by either party
by written notice, at any time without advance notice, to the other, for
"Cause", which, for the purposes of this Agreement, shall be defined as (i) with
respect to termination by Executive, a material breach hereof by Employer,
including without limitation, assignment of duties inconsistent with the
position described in Paragraph 1, which breach is not cured within ten (10)
days of written notice to Employer of said breach; or (ii) with respect to a
termination by Employer, a material breach of this Agreement by Executive, which
breach is not cured within ten (10) days of written notice to Executive of said
breach, or Executive's conviction by a court of competent jurisdiction of a
felony or any crime involving moral turpitude, or Executive's willful misconduct
or breach of a fiduciary duty in the performance of his duties hereunder, which
crime, misconduct or breach is materially and demonstrably injurious to
Employer. For purposes of this provision, no act or failure to act, on the part
of Executive, shall be considered "willful" unless it is done, or omitted to be
done, by Executive in bad faith or without reasonable belief that Executive's
action 


                                      -4-
<PAGE>   5


or omission was in the best interests of Employer. Any act, or failure to
act, based upon authority given pursuant to a resolution duly adopted by the
Board or based upon the advice of counsel for Employer shall be conclusively
presumed to be done, or omitted to be done, by Executive in good faith and in
the best interests of Employer. The cessation of employment of Executive shall
not be deemed to be for Cause unless and until there shall have been delivered
to Executive a copy of a resolution duly adopted by the affirmative vote of not
less than three-quarters of the entire membership of the Board at a meeting of
the Board called and held for such purpose (after reasonable notice is provided
to Executive and Executive is given an opportunity, together with counsel, to be
heard before the Board), finding that, in the good faith opinion of the Board,
Executive is guilty of the conduct described in subparagraph above, and
specifying the particulars thereof in detail.


          If Employer terminates this Agreement for Cause, or if Executive
terminates this Agreement without Cause, Executive shall be entitled to receive
his Accrued Obligations and Other Benefits (as such terms are defined in
Paragraph 6(c) of this Agreement), but shall not be entitled to additional
payments or benefits under this Agreement, except as specifically provided.

          If Executive terminates this Agreement for Cause, he shall be entitled
to the same compensation which he would have received under Paragraph 6(b),
below, if Employer had terminated Executive on the same date without Cause.


               b. Without Cause. This Agreement may be terminated by Employer
without Cause by written notice to Executive at least thirty (30) days prior to
the date of termination. If this Agreement is terminated by Employer without
Cause, Executive shall be entitled to receive a payment, payable in cash within
twenty days after the effective date of such termination, equal to two times
Executive's "Annual Compensation." Annual Compensation shall equal the total
cash compensation earned by Executive during the last full calendar year prior
to the date of termination, as would be required to be disclosed in a "Summary
Compensation Table" pursuant to Item 402(b) of Regulation S-K under the
Securities Exchange Act of 1933, as amended, and the rules and regulations
thereunder, as in effect on the date hereof, whether or not Employer is then
subject to such reporting requirements (including amounts not required to be
disclosed on 



                                      -5-
<PAGE>   6

the basis of immateriality such as perquisites and the cash value of any
non-cash benefits, but excluding amounts payable pursuant to pension, or
retirement plans and long-term incentive compensation awards of restricted stock
or securities underlying stock options or stock appreciation rights, and the
$300,000 payment made in 1997 as a special annuity sales bonus). Notwithstanding
anything to the contrary in this Agreement or in the Deferred Compensation
Agreement, dated April 2, 1997, between Employer and Executive (the "Deferred
Compensation Agreement"), Annual Compensation paid to Executive in any year
shall be deemed to include, for all purposes under this Agreement, any and all
amounts that are not actually paid in such year, but are deferred pursuant to
the Deferred Compensation Agreement and that, but for the provisions of the
Deferred Compensation Agreement would have been paid in such year, but shall not
otherwise be deemed to include any amounts accrued as earnings under, or paid to
Executive pursuant to, the Deferred Compensation Agreement.

          Such amounts shall, unless otherwise specified herein, be paid to
Executive at the times when his salary or other compensation would have been
payable pursuant to the terms of this Agreement, but for the termination of this
Agreement, except that if any such payment is not made to Executive within
twenty (20) business days of the date on which it is due under the terms hereof,
all such payments shall, at the option of Executive, become immediately due and
payable in full. In the event of a termination under this Paragraph 6(b),
Executive shall also be entitled to receive his Accrued Obligations and Other
Benefits (as such terms are defined in Paragraph 6(c) of this Agreement).

               c.  Change in Control Severance. Notwithstanding anything in this
Agreement to the contrary, upon the occurrence of a "Change in Control" (as
defined in Paragraph 7 below) or thereafter, Executive may terminate this
Agreement, without advance notice, and Employer shall provide Executive with the
following payments and benefits:

                   (i)    Employer shall pay to Executive in a lump sum in cash
          within twenty days after the date of termination the aggregate of the
          following amounts:

                          A. the sum of (1) Executive's Base Salary through the
               date of termination to the extent not theretofore paid, (2) the
               product of (x) the higher of (I) Executive's target bonus
               under the 1997 Plan or (II) Executive's target bonus 
                                      -6-
<PAGE>   7

               under Employer's short-term incentive compensation plan for any
               subsequent year and (y) a fraction, the numerator of which is the
               number of days in the current fiscal year through the date of
               termination, and the denominator of which is 365 and (3) any
               compensation previously deferred by Executive (together with any
               accrued interest or earnings thereon) and any accrued vacation
               pay, in each case to the extent not theretofore paid (the sum of
               the amounts described in clauses (1), (2), and (3) shall be
               hereinafter referred to as the "Accrued Obligations"); and


                         B. the amount equal to the product of (1) three and (2)
               the greater of (A) Executive's Annual Compensation in 1997 or (B)
               Executive's greatest Annual Compensation for any subsequent year
               prior to his termination of employment; and

                         C. an amount equal to the difference between (a) the
               aggregate benefit under Employer's qualified and all other
               defined benefit retirement plans (collectively, the "Retirement
               Plan") and any excess or supplemental defined benefit retirement
               plans in which Executive participates, including without
               limitation the Company's supplemental pension plan, and
               supplemental executive retirement plan for Executive
               (collectively, the "SERP"), which Executive would have accrued
               (whether or not vested) if Executive's employment had continued
               for three (3) years after the date of termination (based on the
               assumption that Executive's compensation in each of the three (3)
               years following such termination would have been Executive's
               compensation for the calendar year prior to the year in which
               Executive's date of termination occurs), and (b) the actual
               vested benefit, if any, of Executive under the Retirement Plan
               and the SERP, determined as of the date of termination (with the
               foregoing amounts to be computed on an actuarial present value
               basis, using actuarial assumptions no less favorable to Executive
               than the most favorable of those in effect for purposes of
               computing benefit entitlements under the Retirement Plan 


                                      -7-
<PAGE>   8

               and the SERP at any time from the day before the Effective Date)
               through the date of termination;

                         (ii) for three (3) years after Executive's date of
          termination, or such longer period as may be provided by the terms of
          the appropriate plan, program, practice or policy, Employer shall
          continue welfare benefits to Executive and/or Executive's family at
          least equal to those which would have been provided to them in
          accordance with the plans, programs, practices and policies described
          in Section 5(e) of this Agreement if Executive's employment had not
          been terminated or, if more favorable to Executive, as in effect
          generally at any time thereafter with respect to other peer executives
          of Employer and its affiliated companies and their families, provided,
          however, that if Executive becomes reemployed with another employer
          and is eligible to receive medical or other welfare benefits under
          another employer-provided plan, the medical and other welfare benefits
          described herein shall be secondary to those provided under such other
          plan during such applicable period of eligibility, and for purposes of
          determining eligibility (but not the time of commencement of benefits)
          of Executive for retiree benefits pursuant to such plans, practices,
          programs and policies, Executive shall be considered to have remained
          employed until three (3) years after the Date of Termination and to
          have retired on the last day of such period; and

                         (iii)   to the extent not theretofore paid or provided,
          Employer shall timely pay or provide to Executive any other amounts or
          benefits required to be paid or provided or which Executive is
          eligible to receive under any plan, program, policy or practice or
          contract or agreement of Employer and its affiliated companies (such
          other amounts and benefits shall be hereinafter referred to as the
          "Other Benefits").

Notwithstanding anything in this Agreement to the contrary, the payments and
benefits in this Paragraph 6(c) shall also be paid to Executive in the event
that (i) the Company terminates Executive's employment without Cause following a
Change in Control; (ii) Executive's employment with Employer is terminated prior
to the date on which a Change in Control occurs, and it is reasonably
demonstrated by Executive that such termination of employment prior to the 


                                      -8-
<PAGE>   9

date on which a Change in Control occurs was at the request of a third party who
has taken steps reasonably calculated to effect a Change in Control or otherwise
arose in connection with or anticipation of a Change in Control; or (iii)
Employer fails to comply with Paragraph 11(e). If applicable, the payments and
benefits under this Paragraph 6(c) shall be lieu of the payments under Paragraph
6(b) of this Agreement.

          d.   Disability. In the event that Executive shall fail, because of
illness or injury, to render for six (6) consecutive calendar months services
contemplated by this Agreement, the employment of Executive hereunder may be
terminated by written notice of termination from Employer to Executive. Nothing
herein shall be construed to limit the right of Executive to receive disability
benefits under employee benefit plans of Employer or its Affiliates. Within
twenty days of the effective date of such termination, Employer shall pay
Executive an amount, in cash, equal to (i) two (2) times Executive's Annual
Compensation, and (ii) Executive's Accrued Obligations. Executive shall also
receive his Other Benefits.

          e.   Death. In the event of Executive's death prior to termination or
expiration of this Agreement, Employer shall, within twenty days thereof, make a
cash payment equal to (i) two (2) times Executive's Annual Compensation and (ii)
Executive's Accrued Obligations to such person or persons as Executive shall
have directed in writing or, in the absence of a designation, to his estate.
Executive's Other Benefits shall be paid under the terms of the specific plans,
programs, practices and policies. This Agreement in all other respects, except
as provided herein, will terminate upon the death of Executive. Notwithstanding
the foregoing, if prior to the death of Executive, Employer shall have
terminated this Agreement without Cause, or Executive shall have terminated this
Agreement for Cause, or a Change in Control shall have occurred, or Executive's
employment is terminated upon his disability, Employer shall continue to be
obligated to make the payment required by the appropriate provisions of this
Agreement to such person or persons as Executive shall have directed in writing,
or, in the absence of a designation, to his estate.

                                      -9-
<PAGE>   10

            Employer shall purchase and maintain at all times during the
Employment Period, insurance on the life of Executive, payable in accordance
with the applicable provisions hereof, sufficient to make the payments required
pursuant to this Paragraph 6(e).

            The rights of Executive under this Agreement and of any beneficiary
of Executive or of any other person who may acquire such rights shall be solely
those of an unsecured creditor of Employer. Any insurance policy or any other
asset acquired by Employer in connection with the obligations assumed by it
hereunder shall not be deemed to be held under any trust for the benefit of
Executive or his beneficiaries or to be security for the performance of the
obligations of Employer, but shall be, and remain, a general, unpledged,
unrestricted asset of Employer.

          7.   Change in Control Defined. For the purpose of this Agreement, a
"Change in Control" shall mean:

               a. The acquisition by any individual, entity or group (within the
meaning of Section 13(d)(3) or 14(d)(2) of the Securities Exchange Act of 1934,
as amended (the "Exchange Act")) (a "Person") of beneficial ownership (within
the meaning of Rule 13d-3 promulgated under the Exchange Act) of 20% or more of
either (i) the then outstanding shares of common stock of Employer (the
"Outstanding Employer Common Stock") or (ii) the combined voting power of the
then outstanding voting securities of Employer entitled to vote generally in the
election of directors (the "Outstanding Employer Voting Securities"); provided,
however, that for purposes of this subsection (a), the following acquisitions
shall not constitute a Change in Control: (i) any acquisition directly from
Employer, (ii) any acquisition by Employer, (iii) any acquisition by any
employee benefit plan (or related trust) sponsored or maintained by Employer or
any corporation controlled by Employer or (iv) any acquisition pursuant to a
transaction which complies with clauses (i), (ii) and (iii) of subsection (c) of
this Paragraph 7; or

               b. Individuals who, as of the date hereof, constitute the Board
(the "Incumbent Board") cease for any reason to constitute at least a majority
of the Board; provided, however, that any individual becoming a director
subsequent to the date hereof whose election, or nomination for election by
Employer's shareholders, was approved by a vote of at least a majority of the
directors then comprising the Incumbent Board shall be considered as though 


                                      -10-
<PAGE>   11

such individual were a member of the Incumbent Board, but excluding, for this
purpose, any such individual whose initial assumption of office occurs as a
result of an actual or threatened election contest with respect to the election
or removal of directors or other actual or threatened solicitation of proxies or
consents by or on behalf of a Person other than the Board; or

               c.   Consummation by Employer of a reorganization, merger or
consolidation or sale or other disposition of all or
substantially all of the assets of Employer or the acquisition of assets of
another entity (a "Business Combination"), in each case, unless, following such
Business Combination, (i) all or substantially all of the individuals and
entities who were the beneficial owners, respectively, of the Outstanding
Employer Common Stock and Outstanding Employer Voting Securities immediately
prior to such Business Combination beneficially own, directly or indirectly,
more than 60% of, respectively, the then outstanding shares of common stock and
the combined voting power of the then outstanding voting securities entitled to
vote generally in the election of directors, as the case may be, of the
corporation resulting from such Business Combination (including, without
limitation, a corporation which as a result of such transaction owns Employer or
all or substantially all of Employer's assets either directly or through one or
more subsidiaries) in substantially the same proportions as their ownership,
immediately prior to such Business Combination of the Outstanding Employer
Common Stock and Outstanding Employer Voting Securities, as the case may be,
(ii) no Person (excluding any employee benefit plan (or related trust) of
Employer or such corporation resulting from such Business Combination)
beneficially owns, directly or indirectly, 20% or more of, respectively, the
then outstanding shares of common stock of the corporation resulting from such
Business Combination or the combined voting power of the then outstanding voting
securities of such corporation except to the extent that such ownership existed
prior to the Business Combination and (iii) at least a majority of the members
of the board of directors of the corporation resulting from such Business
Combination were members of the Incumbent Board at the time of the execution of
the initial agreement, or of the action of the Board, providing for such
Business Combination; or

                                      -11-
<PAGE>   12

          8.   Certain Additional Payments by Employer.

               a. Anything in this Agreement to the contrary notwithstanding, in
the event it shall be determined that any payment, award, benefit or
distribution (or any acceleration of a payment, award, benefit or distribution)
by Employer (or any of its affiliated entities) or by any entity which
effectuates a Change in Control (or any of its affiliated entities) to or for
the benefit of Executive (whether pursuant to the terms of this Agreement or
otherwise, but determined without regard to any additional payments required
under this Paragraph 8) (a "Payment") would be subject to the excise tax imposed
by Section 4999 of the Internal Revenue Code of 1986, as amended (the "Code"),
or any corresponding provisions of state or local tax laws, or any interest or
penalties are incurred by Executive with respect to such excise tax (such excise
tax, together with any such interest and penalties, are hereinafter collectively
referred to as the "Excise Tax"), then Executive shall be entitled to receive an
additional payment (a "Gross-Up Payment") in an amount such that after payment
by Executive of all taxes (including any interest or penalties imposed with
respect to such taxes), including, without limitation, any income taxes (and any
interest and penalties imposed with respect thereto) and Excise Tax imposed upon
the Gross-Up Payment, Executive retains an amount of the Gross-Up Payment equal
to the Excise Tax imposed upon the Payments. The payment of a Gross-Up Payment
under this Paragraph 8(a) shall not be conditioned upon Executive's termination
of employment.

               b.   Subject to the provisions of Paragraph 8(c), all
determinations required to be made under this Paragraph 8, including whether and
when a Gross-Up Payment is required and the amount of such Gross-Up Payment and
the assumptions to be utilized in arriving at such determination, shall be made
by Price Waterhouse LLP or such other certified public accounting firm as may be
designated by Executive (the "Accounting Firm"), which shall provide detailed
supporting calculations both to Employer and Executive within 15 business days
of the receipt of notice from Executive that there has been a Payment, or such
earlier time as is requested by Employer. In the event that the Accounting Firm
is serving as accountant or auditor for the individual, entity or group
effecting the Change in Control, Executive shall appoint another nationally
recognized accounting firm to make the determinations required hereunder (which
accounting firm shall then be referred to as the Accounting Firm hereunder). All
fees and 


                                      -12-
<PAGE>   13

expenses of the Accounting Firm shall be borne solely by Employer. Any Gross-Up
Payment, as determined pursuant to this Paragraph 8, shall be paid by Employer
to Executive within five days of the receipt of the Accounting Firm's
determination. Any determination by the Accounting Firm shall be binding upon
Employer and Executive. As a result of the uncertainty in the application of
Section 4999 of the Code at the time of the initial determination by the
Accounting Firm hereunder, it is possible that Gross-Up Payments which will not
have been made by Employer should have been made ("Underpayment"), consistent
with the calculations required to be made hereunder. In the event that Employer
exhausts its remedies pursuant to Paragraph 8(c) and Executive thereafter is
required to make a payment of any Excise Tax, the Accounting Firm shall
determine the amount of the Underpayment that has occurred and any such
Underpayment shall be promptly paid by Employer to or for the benefit of
Executive.

          c.   Executive shall notify Employer in writing of any claim by the
Internal Revenue Service that, if successful, would require the payment by
Employer of the Gross-Up Payment. Such notification shall be given as soon as
practicable but no later than ten business days after Executive is informed in
writing of such claim and shall apprise Employer of the nature of such claim and
the date on which such claim is requested to be paid. Executive shall not pay
such claim prior to the expiration of the 30-day period following the date on
which Executive gives such notice to Employer (or such shorter period ending on
the date that any payment of taxes with respect to such claim is due). If
Employer notifies Executive in writing prior to the expiration of such period
that it desires to contest such claim, Executive shall:

               (i)   give Employer any information reasonably requested by 
          Employer relating to such claim,

               (ii) take such action in connection with contesting such claim as
          Employer shall reasonably request in writing from time to time,
          including, without limitation, accepting legal representation with
          respect to such claim by an attorney reasonably selected by Employer,

               (iii) cooperate with Employer in good faith in order effectively
          to contest such claim, and

                                      -13-
<PAGE>   14

               (iv) permit Employer to participate in any proceedings relating
          to such claim;

provided, however, that Employer shall bear and pay directly all costs and
expenses (including additional interest and penalties) incurred in connection
with such contest and shall indemnify and hold Executive harmless, on an
after-tax basis, for any Excise Tax or income tax (including interest and
penalties with respect thereto) imposed as a result of such representation and
payment of costs and expenses. Without limitation on the foregoing provisions of
this Paragraph 8(c), Employer shall control all proceedings taken in connection
with such contest and, at its sole option, may pursue or forgo any and all
administrative appeals, proceedings, hearings and conferences with the taxing
authority in respect of such claim and may, at its sole option, either direct
Executive to pay the tax claimed and sue for a refund or contest the claim in
any permissible manner, and Executive agrees to prosecute such contest to a
determination before any administrative tribunal, in a court of initial
jurisdiction and in one or more appellate courts, as Employer shall determine;
provided, however, that if Employer directs Executive to pay such claim and sue
for a refund, Employer shall advance the amount of such payment to Executive, on
an interest-free basis and shall indemnify and hold Executive harmless, on an
after-tax basis, from any Excise Tax or income tax (including interest or
penalties with respect thereto) imposed with respect to such advance or with
respect to any imputed income with respect to such advance; and further provided
that any extension of the statute of limitations relating to payment of taxes
for the taxable year of Executive with respect to which such contested amount is
claimed to be due is limited solely to such contested amount. Furthermore,
Employer's control of the contest shall be limited to issues with respect to
which a Gross-Up Payment would be payable hereunder and Executive shall be
entitled to settle or contest, as the case may be, any other issue raised by the
Internal Revenue Service or any other taxing authority.

          d.   If, after the receipt by Executive of an amount advanced by
Employer pursuant to Paragraph 8(c), Executive becomes entitled to receive any
refund with respect to such claim, Executive shall (subject to Employer's
complying with the requirements of Paragraph 8(c)) promptly pay to Employer the
amount of such refund (together with any interest paid or credited thereon after
taxes applicable thereto). If, after the receipt by Executive of an amount


                                      -14-
<PAGE>   15

advanced by Employer pursuant to Paragraph 8(c), a determination is made that
Executive shall not be entitled to any refund with respect to such claim and
Employer does not notify Executive in writing of its intent to contest such
denial of refund prior to the expiration of 30 days after such determination,
then such advance shall be forgiven and shall not be required to be repaid and
the amount of such advance shall offset, to the extent thereof, the amount of
Gross-Up Payment required to be paid.

          9.   Confidentiality. Executive agrees that he will not make use of,
divulge or otherwise disclose, directly or indirectly, any trade secret or other
confidential information concerning the business or policies of Employer or any
of its Affiliates, which he may have learned as a result of his employment
during the Employment Period or prior thereto as stockholder, employee, officer
or director of Employer or any of its Affiliates, except to the extent such use
or disclosure is (i) necessary to the performance of this Agreement and in
furtherance of the best interests of Employer and its Affiliates, (ii) required
by applicable law, (iii) lawfully obtainable from other sources, or (iv)
authorized by Employer or its Affiliates. The provisions of this subsection
shall survive the expiration, suspension or termination, for any reason, of this
Agreement. In no event shall an asserted violation of the provisions of this
Section 9 constitute a basis for deferring or withholding any amounts otherwise
payable to Executive under this Agreement.

          10. Full Settlement; Legal Fees. Employer's obligation to make the
payments provided for in this Agreement and otherwise to perform its obligations
hereunder shall not be affected by any set-off, counterclaim, recoupment,
defense or other claim, right or action which Employer may have against
Executive or others. In no event shall Executive be obligated to seek other
employment or take any other action by way of mitigation of the amounts payable
to Executive under any of the provisions of this Agreement and except as
specifically provided in Paragraph 6(c)(ii), such amounts shall not be reduced
whether or not Executive obtains other employment. Employer agrees to pay as
incurred, to the full extent permitted by law, all legal fees and expenses which
Executive may reasonably incur as a result of any contest (regardless of the
outcome thereof) by Employer, Executive or others of the validity or
enforceability of, or liability or entitlement under, any provision of this
Agreement or any guarantee of performance 



                                      -15-
<PAGE>   16

thereof (whether such contest is between Employer and Executive or between
either of them and any third party, and including as a result of any contest by
Executive about the amount of any payment pursuant to this Agreement), plus in
each case interest on any delayed payment at 120% of the applicable Federal rate
(that applies to the time period of the delay) provided for in Section
7872(f)(2)(A) of the Code, compounded annually.

          11.  Miscellaneous.

               a.  This Agreement shall be governed by and construed in 
accordance with the laws of the State of Delaware applicable to agreements made 
and to be performed in that state.

               b.  Any notice or other communication under this Agreement shall
be in writing and shall be considered given when delivered personally or upon
receipt by the addressee after mailing by U.S. registered mail to the parties at
the following addresses or at such other address as a party may specify by
notice to the other.

               If to Executive:

                       Glendon E. Johnson
                       11925 SW 43rd Street
                       Miami, Florida  33175

               If to Employer:

                       John Alden Financial Corporation
                       7300 Corporate Center Drive
                       Miami, Florida 33126-1208
                       Attention:  General Counsel

               c.   This Agreement, when it becomes effective, shall supersede 
all existing employment agreements between Executive and Employer or any of its
Affiliates relating to the


                                      -16-
<PAGE>   17



terms of his employment. It may not be amended except by a written agreement
signed by both parties.

               d.  The failure of a party to insist upon strict adherence to any
term of this Agreement on any occasion shall not be considered a waiver thereof
or deprive that party of the right thereafter to insist upon strict adherence to
that term or any other term of this Agreement.

               e.  Subject to the limitations below, this Agreement shall inure
to the benefit of and be binding upon the parties hereto and their respective
heirs, representatives, successors and assigns. This Agreement shall not be
assignable by Executive, and shall be assignable by Employer only to any
corporation resulting from the reorganization, merger or consolidation of
Employer with any other corporation or any corporation to which Employer may
sell, lease or otherwise transfer all or substantially all of its assets, and it
must be so assigned by Employer to, and accepted as binding upon it by, such
other corporation in connection with any such reorganization, merger,
consolidation, sale, lease or transfer. Employer will require any successor
(whether direct or indirect, by purchase, merger, consolidation or otherwise) to
all or substantially all of the business and/or assets of Employer to assume
expressly and agree to perform this Agreement in the same manner and to the same
extent that Employer would be required to perform it if no such succession had
taken place. As used in this Agreement, "Employer" shall mean Employer as
hereinbefore defined and any successor to its business and/or assets as
aforesaid which assumes and agrees to perform this Agreement by operation of
law, or otherwise.

               f.   Employer shall indemnify Executive, in his capacity as an
officer or director of Employer or any of its Affiliates to the full extent
permissible under the laws of the State of Delaware, or of the state of
incorporation of the relevant Affiliate as the case may be.

               g.   This Agreement shall supersede the Employment Agreement
between the Company and Executive, dated as of October 2, 1992, as amended, and
shall supercede the right of Executive to participate in any severance plan of
the Company or otherwise receive severance benefits from the Company.

                                      -17-
<PAGE>   18

               IN WITNESS WHEREOF, Executive has hereunto set Executive's hand
and, pursuant to the authorization from its Board of Directors, Employer has
caused this Agreement to be executed in its name on its behalf, all as of the
day and year first above written.

                                     JOHN ALDEN FINANCIAL CORPORATION

                                     By: /s/ SCOTT L. STANTON
                                        --------------------------------

                                     Title: Chief Financial Officer & SVP
                                           -----------------------------
                                       /s/ GLENDON E. JOHNSON 
                                     -----------------------------------
                                     Glendon E. Johnson





                                      -18-


<PAGE>   1
                                                                   EXHIBIT 10.64
                               CHANGE OF CONTROL

                              EMPLOYMENT AGREEMENT

                 AGREEMENT by and between John Alden Financial Corporation, a
Delaware corporation (the "Company") and Marvin H.  Assofsky (the "Executive"),
dated as of the 5th day of November, 1997.

                 The Board of Directors of the Company (the "Board"), has
determined that it is in the best interests of the Company and its shareholders
to assure that the Company will have the continued dedication of the Executive,
notwithstanding the possibility, threat or occurrence of a Change of Control
(as defined below) of the Company.  The Board believes it is imperative to
diminish the inevitable distraction of the Executive by virtue of the personal
uncertainties and risks created by a pending or threatened Change of Control
and to encourage the Executive's full attention and dedication to the Company
currently and in the event of any threatened or pending Change of Control, and
to provide the Executive with compensation and benefits arrangements upon a
Change of Control which ensure that the compensation and benefits expectations
of the Executive will be satisfied and which are competitive with those of
other corporations.  Therefore, in order to accomplish these objectives, the
Board has caused the Company to enter into this Agreement.

                 NOW, THEREFORE, IT IS HEREBY AGREED AS FOLLOWS:

                 1.    Certain Definitions.  (a)  The "Effective Date" shall
mean the first date during the Change of Control Period (as defined in Section
1(b)) on which a Change of Control (as defined in Section 2) occurs.  Anything
in this Agreement to the contrary notwithstanding, if a Change of Control
occurs and if the Executive's employment with the Company is terminated prior
to the date on which the Change of Control occurs, and if it is reasonably
demonstrated by the Executive that such termination of employment (i) was at
the request of a third party who has taken steps reasonably calculated to
effect a Change of Control or (ii) otherwise arose in connection with or
anticipation of a Change of Control, then for all purposes of this Agreement
the "Effective Date" shall mean the date immediately prior to the date of such
termination of employment.
<PAGE>   2
                 (b)      The "Change of Control Period" shall mean the period
commencing on the date hereof and ending on the third anniversary of the date
hereof; provided, however, that commencing on the date one year after the date
hereof, and on each annual anniversary of such date (such date and each annual
anniversary thereof shall be hereinafter referred to as the "Renewal Date"),
unless previously terminated, the Change of Control Period shall be
automatically extended so as to terminate 3 years from such Renewal Date,
unless at least 60 days prior to the Renewal Date the Company shall give notice
to the Executive that the Change of Control Period shall not be so extended.

                 2.    Change of Control.  For the purpose of this Agreement, a
"Change of Control" shall mean:

                 (a)  The acquisition by any individual, entity or group
         (within the meaning of Section 13(d)(3) or 14(d)(2) of the Securities
         Exchange Act of 1934, as amended (the "Exchange Act")) (a "Person") of
         beneficial ownership (within the meaning of Rule 13d-3 promulgated
         under the Exchange Act) of 20% or more of either (i) the then
         outstanding shares of common stock of the Company (the "Outstanding
         Company Common Stock") or (ii) the combined voting power of the then
         outstanding voting securities of the Company entitled to vote
         generally in the election of directors (the "Outstanding Company
         Voting Securities"); provided, however, that for purposes of this
         subsection (a), the following acquisitions shall not constitute a
         Change of Control:  (i) any acquisition directly from the Company,
         (ii) any acquisition by the Company, (iii) any acquisition by any
         employee benefit plan (or related trust) sponsored or maintained by
         the Company or any corporation controlled by the Company or (iv) any
         acquisition pursuant to a transaction which complies with clauses (i),
         (ii) and (iii) of subsection (c) of this Section 2; or

                 (b)  Individuals who, as of the date hereof, constitute the
         Board (the "Incumbent Board") cease for any reason to constitute at
         least a majority of the Board; provided, however, that any individual
         becoming a director subsequent to the date hereof whose election, or
         nomination for election by the Company's shareholders, was approved by
         a vote of at least a majority of the directors then comprising the
         Incumbent Board shall be considered as though such individual were a
         member of the Incumbent Board, but excluding, for this purpose, any
         such individual whose initial assumption of office occurs as a result
         of an actual or threatened election contest with respect to the
         election or removal of directors or other actual or threatened
         solicitation of proxies or consents by or on behalf of a Person other
         than the Board; or

                 (c)  Consummation by the Company of a reorganization, merger
         or consolidation or sale or other disposition of all or substantially
         all of the assets of the Company or the acquisition of assets of
         another entity (a "Business Combination"), in each case, unless,





                                      -2-
<PAGE>   3
         following such Business Combination, (i) all or substantially all of
         the individuals and entities who were the beneficial owners,
         respectively, of the Outstanding Company Common Stock and Outstanding
         Company Voting Securities immediately prior to such Business
         Combination beneficially own, directly or indirectly, more than 60%
         of, respectively, the then outstanding shares of common stock and the
         combined voting power of the then outstanding voting securities
         entitled to vote generally in the election of directors, as the case
         may be, of the corporation resulting from such Business Combination
         (including, without limitation, a corporation which as a result of
         such transaction owns the Company or all or substantially all of the
         Company's assets either directly or through one or more subsidiaries)
         in substantially the same proportions as their ownership, immediately
         prior to such Business Combination of the Outstanding Company Common
         Stock and Outstanding Company Voting Securities, as the case may be,
         (ii) no Person (excluding any employee benefit plan (or related trust)
         of the Company or such corporation resulting from such Business
         Combination) beneficially owns, directly or indirectly, 20% or more
         of, respectively, the then outstanding shares of common stock of the
         corporation resulting from such Business Combination or the combined
         voting power of the then outstanding voting securities of such
         corporation except to the extent that such ownership existed prior to
         the Business Combination and (iii) at least a majority of the members
         of the board of directors of the corporation resulting from such
         Business Combination were members of the Incumbent Board at the time
         of the execution of the initial agreement, or of the action of the
         Board, providing for such Business Combination; or

                 (d)  Approval by the shareholders of the Company of a complete
         liquidation or dissolution of the Company.

                 3.    Employment Period.  The Company hereby agrees to
continue the Executive in its employ, and the Executive hereby agrees to remain
in the employ of the Company subject to the terms and conditions of this
Agreement, for the period commencing on the Effective Date and ending on the
third anniversary of such date (the "Employment Period").

                 4.    Terms of Employment.  (a)  Position and Duties.  (i)
During the Employment Period, (A) the Executive's position (including status,
offices, titles and reporting requirements), authority, duties and
responsibilities shall be at least commensurate in all material respects with
the most significant of those held, exercised and assigned to the Executive at
any time during the 120-day period immediately preceding the Effective Date and
(B) the Executive's services shall be performed at the location where the
Executive was employed immediately preceding the Effective Date or any office
or location less than 35 miles from such location.





                                      -3-
<PAGE>   4
                          (ii)  During the Employment Period, and excluding any
periods of vacation and sick leave to which the Executive is entitled, the
Executive agrees to devote reasonable attention and time during normal business
hours to the business and affairs of the Company and, to the extent necessary
to discharge the responsibilities assigned to the Executive hereunder, to use
the Executive's reasonable best efforts to perform faithfully and efficiently
such responsibilities.  During the Employment Period it shall not be a
violation of this Agreement for the Executive to (A) serve on corporate, civic
or charitable boards or committees, (B) deliver lectures, fulfill speaking
engagements or teach at educational institutions and (C) manage personal
investments, so long as such activities do not significantly interfere with the
performance of the Executive's responsibilities as an employee of the Company
in accordance with this Agreement.  It is expressly understood and agreed that
to the extent that any such activities have been conducted by the Executive
prior to the Effective Date, the continued conduct of such activities (or the
conduct of activities similar in nature and scope thereto) subsequent to the
Effective Date shall not thereafter be deemed to interfere with the performance
of the Executive's responsibilities to the Company.

                 (b)    Compensation.  (i)  Base Salary.  During the Employment
Period, the Executive shall receive an annual base salary ("Annual Base
Salary"), which shall be paid at a monthly rate, at least equal to 12 times the
highest monthly base salary paid or payable, including any base salary which
has been earned but deferred, to the Executive by the Company and its
affiliated companies in respect of the twelve-month period immediately
preceding the month in which the Effective Date occurs.  During the Employment
Period, the Annual Base Salary shall be reviewed within 12 months after the
last salary increase awarded to the Executive prior to the Effective Date and
thereafter at least annually.  Any increase in Annual Base Salary shall not
serve to limit or reduce any other obligation to the Executive under this
Agreement.  Annual Base Salary shall not be reduced after any such increase and
the term Annual Base Salary as utilized in this Agreement shall refer to Annual
Base Salary as so increased.  As used in this Agreement, the term "affiliated
companies" shall include any company controlled by, controlling or under common
control with the Company.





                                      -4-
<PAGE>   5
                          (ii) Annual Bonus.  In addition to Annual Base
Salary, the Executive shall be awarded, for each fiscal year ending during the
Employment Period, an annual bonus (the "Annual Bonus") in cash at least equal
to the Executive's target annual bonus under the Company's Short-Term Incentive
Compensation Plan for 1997 ("1997 Target Bonus") or, if higher, the Executive's
greatest target annual bonus in any subsequent year prior to the Effective
Date.  Each such Annual Bonus shall be paid no later than the end of the third
month of the fiscal year next following the fiscal year for which the Annual
Bonus is awarded, unless the Executive shall elect to defer the receipt of such
Annual Bonus.

                          (iii) Incentive, Savings and Retirement Plans.
During the Employment Period, the Executive shall be entitled to participate in
all incentive, savings and retirement plans, practices, policies and programs
applicable generally to other peer executives of the Company and its affiliated
companies, but in no event shall such plans, practices, policies and programs
provide the Executive with incentive opportunities (measured with respect to
both regular and special incentive opportunities, to the extent, if any, that
such distinction is applicable), savings opportunities and retirement benefit
opportunities, in each case, less favorable, in the aggregate, than the most
favorable of those provided by the Company and its affiliated companies for the
Executive under such plans, practices, policies and programs as in effect at
any time during the 120-day period immediately preceding the Effective Date or
if more favorable to the Executive, those provided generally at any time after
the Effective Date to other peer executives of the Company and its affiliated
companies.

                          (iv) Welfare Benefit Plans.  During the Employment
Period, the Executive and/or the Executive's family, as the case may be, shall
be eligible for participation in and shall receive all benefits under welfare
benefit plans, practices, policies and programs provided by the Company and its
affiliated companies (including, without limitation, medical, prescription,
dental, disability, salary continuance, employee life, group life, accidental
death and travel accident insurance plans and programs) to the extent
applicable generally to other peer executives of the Company and its affiliated
companies, but in no event shall such plans, practices, policies and programs
provide the Executive with benefits which are less favorable, in the aggregate,
than the most favorable of such plans, practices, policies and programs in
effect for





                                      -5-
<PAGE>   6
the Executive at any time during the 120-day period immediately preceding the
Effective Date or, if more favorable to the Executive, those provided generally
at any time after the Effective Date to other peer executives of the Company
and its affiliated companies.

                          (v) Expenses.  During the Employment Period, the
Executive shall be entitled to receive prompt reimbursement for all reasonable
expenses incurred by the Executive in accordance with the most favorable
policies, practices and procedures of the Company and its affiliated companies
in effect for the Executive at any time during the 120-day period immediately
preceding the Effective Date or, if more favorable to the Executive, as in
effect generally at any time thereafter with respect to other peer executives
of the Company and its affiliated companies.

                          (vi) Fringe Benefits.  During the Employment Period,
the Executive shall be entitled to fringe benefits, including, without
limitation, tax and financial planning services, payment of club dues, and, if
applicable, use of an automobile (or an automobile allowance) and payment of
related expenses, in accordance with the most favorable plans, practices,
programs and policies of the Company and its affiliated companies in effect for
the Executive at any time during the 120-day period immediately preceding the
Effective Date or, if more favorable to the Executive, as in effect generally
at any time thereafter with respect to other peer executives of the Company and
its affiliated companies.

                          (vii) Office and Support Staff.  During the
Employment Period, the Executive shall be entitled to an office or offices of a
size and with furnishings and other appointments, and to exclusive personal
secretarial and other assistance, at least equal to the most favorable of the
foregoing provided to the Executive by the Company and its affiliated companies
at any time during the 120-day period immediately preceding the Effective Date
or, if more favorable to the Executive, as provided generally at any time
thereafter with respect to other peer executives of the Company and its
affiliated companies.

                          (viii) Vacation.  During the Employment Period, the
Executive shall be entitled to paid vacation in accordance with the most
favorable plans, policies, programs and practices of the Company and its
affiliated companies as in effect for the Executive at any time





                                      -6-
<PAGE>   7
during the 120-day period immediately preceding the Effective Date or, if more
favorable to the Executive, as in effect generally at any time thereafter with
respect to other peer executives of the Company and its affiliated companies.

                 5. Termination of Employment.  (a)  Death or Disability.  The
Executive's employment shall terminate automatically upon the Executive's death
during the Employment Period.  If the Company determines in good faith that the
Disability of the Executive has occurred during the Employment Period (pursuant
to the definition of Disability set forth below), it may give to the Executive
written notice in accordance with Section 12(b) of this Agreement of its
intention to terminate the Executive's employment.  In such event, the
Executive's employment with the Company shall terminate effective on the 30th
day after receipt of such notice by the Executive (the "Disability Effective
Date"), provided that, within the 30 days after such receipt, the Executive
shall not have returned to full-time performance of the Executive's duties.
For purposes of this Agreement, "Disability" shall mean the absence of the
Executive from the Executive's duties with the Company on a full-time basis for
180 consecutive business days as a result of incapacity due to mental or
physical illness which is determined to be total and permanent by a physician
selected by the Company or its insurers  and acceptable to the Executive or the
Executive's legal representative.

                 (b) Cause.  The Company may terminate the Executive's
employment during the Employment Period for Cause.  For purposes of this
Agreement, "Cause" shall mean:

                                  (i)      the willful and continued failure of
         the Executive to perform substantially the Executive's duties with the
         Company or one of its affiliates (other than any such failure
         resulting from incapacity due to physical or mental illness), after a
         written demand for substantial performance is delivered to the
         Executive by the Board or the Chief Executive Officer of the Company
         which specifically identifies the manner in which the Board or Chief
         Executive Officer believes that the Executive has not substantially
         performed the Executive's duties, or

                                  (ii)     the willful engaging by the
         Executive in illegal conduct or gross misconduct which is materially
         and demonstrably injurious to the Company.

For purposes of this provision, no act or failure to act, on the part of the
Executive, shall be considered "willful" unless it is done, or omitted to be
done, by the Executive in bad faith or





                                      -7-
<PAGE>   8
without reasonable belief that the Executive's action or omission was in the
best interests of the Company.  Any act, or failure to act, based upon
authority given pursuant to a resolution duly adopted by the Board or upon the
instructions of the Chief Executive Officer or a senior officer of the Company
or based upon the advice of counsel for the Company shall be conclusively
presumed to be done, or omitted to be done, by the Executive in good faith and
in the best interests of the Company.  The cessation of employment of the
Executive shall not be deemed to be for Cause unless and until there shall have
been delivered to the Executive a copy of a resolution duly adopted by the
affirmative vote of not less than three-quarters of the entire membership of
the Board at a meeting of the Board called and held for such purpose (after
reasonable notice is provided to the Executive and the Executive is given an
opportunity, together with counsel, to be heard before the Board), finding
that, in the good faith opinion of the Board, the Executive is guilty of the
conduct described in subparagraph (i) or (ii) above, and specifying the
particulars thereof in detail.

                 (c) Good Reason.  The Executive's employment may be terminated
by the Executive for Good Reason.  For purposes of this Agreement, "Good
Reason" shall mean:

                                  (i)      the assignment to the Executive of
         any duties inconsistent in any respect with the Executive's position
         (including status, offices, titles and reporting requirements),
         authority, duties or responsibilities as contemplated by Section 4(a)
         of this Agreement, or any other action by the Company which results in
         a diminution in such position, authority, duties or responsibilities,
         excluding for this purpose an isolated, insubstantial and inadvertent
         action not taken in bad faith and which is remedied by the Company
         promptly after receipt of notice thereof given by the Executive;

                                  (ii)     any failure by the Company to comply
         with any of the provisions of Section 4(b) of this Agreement, other
         than an isolated, insubstantial and inadvertent failure not occurring
         in bad faith and which is remedied by the Company promptly after
         receipt of notice thereof given by the Executive;

                                  (iii)    the Company's requiring the
         Executive to be based at any office or location other than as provided
         in Section 4(a)(i)(B) hereof or the Company's requiring the Executive
         to travel on Company business to a substantially greater extent than
         required immediately prior to the Effective Date;

                                  (iv)     any purported termination by the
         Company of the Executive's employment otherwise than as expressly
         permitted by this Agreement; or





                                      -8-
<PAGE>   9
                                   (v)      any failure by the Company to
         comply with and satisfy Section 11(c) of this Agreement.

For purposes of this Section 5(c), any good faith determination of "Good
Reason" made by the Executive shall be conclusive.  Anything in this Agreement
to the contrary notwithstanding, a termination by the Executive for any reason
during the 30-day period immediately following the first anniversary of the
Effective Date shall be deemed to be a termination for Good Reason for all
purposes of this Agreement.

                 (d) Notice of Termination.  Any termination by the Company for
Cause, or by the Executive for Good Reason, shall be communicated by Notice of
Termination to the other party hereto given in accordance with Section 12(b) of
this Agreement.  Such Notice of Termination for Cause shall be given within 90
days following the Company's "actual" knowledge of any event constituting
Cause, and such Notice of Termination for Good Reason shall be given within 180
days following the Executive's "actual" knowledge of an event constituting Good
Reason.  For purposes of this Agreement, a "Notice of Termination" means a
written notice which (i) indicates the specific termination provision in this
Agreement relied upon, (ii) to the extent applicable, sets forth in reasonable
detail the facts and circumstances claimed to provide a basis for termination
of the Executive's employment under the provision so indicated and (iii) if the
Date of Termination (as defined below) is other than the date of receipt of
such notice, specifies the termination date (which date shall be not more than
thirty days after the giving of such notice).  The failure by the Executive or
the Company to set forth in the Notice of Termination any fact or circumstance
which contributes to a showing of Good Reason or Cause shall not waive any
right of the Executive or the Company, respectively, hereunder or preclude the
Executive or the Company, respectively, from asserting such fact or
circumstance in enforcing the Executive's or the Company's rights hereunder.

                 (e) Date of Termination.  "Date of Termination" means (i) if
the Executive's employment is terminated by the Company for Cause, or by the
Executive for Good Reason, the date of receipt of the Notice of Termination or
any later date specified therein, as the case may be, (ii) if the Executive's
employment is terminated by the Company other than for Cause or Disability, the
date on which the Company notifies the Executive of such termination and (iii)
if





                                      -9-
<PAGE>   10
the Executive's employment is terminated by reason of death or Disability, the
date of death of the Executive or the Disability Effective Date, as the case
may be.

                 6. Obligations of the Company upon Termination.  (a) Good
Reason; Other Than for Cause, Death or Disability.  If, during the Employment
Period, the Company shall terminate the Executive's employment other than for
Cause or Disability or the Executive shall terminate employment for Good
Reason:

                   (i)            the Company shall pay to the Executive in a
         lump sum in cash within 30 days after the Date of Termination the
         aggregate of the following amounts:

                                  A.  the sum of (1) the Executive's Annual
                 Base Salary through the Date of Termination to the extent not
                 theretofore paid, (2) the product of (x) the greater of (a)
                 the 1997 Target Bonus and (b) the Executive's highest target
                 annual bonus for any fiscal year that begins both subsequent
                 to 1997 and within 3 years prior to the Date of Termination
                 (such greater amount, the "Highest Target Bonus") and (y) a
                 fraction, the numerator of which is the number of days in the
                 current fiscal year through the Date of Termination, and the
                 denominator of which is 365 and (3) any compensation
                 previously deferred by the Executive (together with any
                 accrued interest or earnings thereon) and any accrued vacation
                 pay, in each case to the extent not theretofore paid (the sum
                 of the amounts described in clauses (1), (2), and (3) shall be
                 hereinafter referred to as the "Accrued Obligations"); and

                                  B.  the amount equal to the product of (1) 3
                 and (2) the sum of (x) the Executive's Annual Base Salary and
                 (y) the Highest Target Bonus; and

                                  C.  an amount equal to the difference between
                 (a) the aggregate benefit under the Company's qualified
                 defined benefit retirement plans (collectively, the
                 "Retirement Plan") and any excess or supplemental defined
                 benefit retirement plans in which the Executive participates
                 (collectively, the "SERP") which the Executive would have
                 accrued (whether or not vested) if the Executive's employment
                 had continued for 3 years after the Date of Termination (based
                 on the assumption that the Executive's compensation in each of
                 the 3 years following such termination would have been that
                 required by Section 4(b)(i) and Section 4(b)(ii)) and (b) the
                 actual vested benefit, if any, of the Executive under the
                 Retirement Plan and the SERP, determined as of the Date of
                 Termination (with the foregoing amounts to be computed on an
                 actuarial present value basis using actuarial assumptions no
                 less favorable to the Executive than the most favorable of
                 those in effect for purposes of computing benefit entitlements
                 under the Retirement Plan and the SERP at any time from the
                 day before the Effective Date) through the Date of
                 Termination;





                                      -10-
<PAGE>   11
                   (ii)   for 3 years after the Executive's Date of
         Termination, or such longer period as may be provided by the terms of
         the appropriate plan, program, practice or policy, the Company shall
         continue benefits to the Executive and/or the Executive's family at
         least equal to those which would have been provided to them in
         accordance with the plans, programs, practices and policies described
         in Section 4(b)(iv) of this Agreement if the Executive's employment
         had not been terminated or, if more favorable to the Executive, as in
         effect generally at any time thereafter with respect to other peer
         executives of the Company and its affiliated companies and their
         families, provided, however, that if the Executive becomes reemployed
         with another employer and is eligible to receive medical or other
         welfare benefits under another employer-provided plan, the medical and
         other welfare benefits described herein shall be secondary to those
         provided under such other plan during such applicable period of
         eligibility, and for purposes of determining eligibility (but not the
         time of commencement of benefits) of the Executive for retiree
         benefits pursuant to such plans, practices, programs and policies, the
         Executive shall be considered to have remained employed until 3 years
         after the Date of Termination and to have retired on the last day of
         such period;

                   (iii)  the Company shall, at its sole expense as
         incurred, provide the Executive with outplacement services the scope
         and provider of which shall be selected by the Executive in the
         Executive's sole discretion; provided, however, that the Company shall
         not be obligated to provide such services for a period of more than
         one year after the Date of Termination or at an aggregate cost in
         excess of $20,000; and

                   (iv)   to the extent not theretofore paid or
         provided, the Company shall timely pay or provide to the Executive any
         other amounts or benefits required to be paid or provided or which the
         Executive is eligible to receive under any plan, program, policy or
         practice or contract or agreement of the Company and its affiliated
         companies (such other amounts and benefits shall be hereinafter
         referred to as the "Other Benefits").

                 (b) Death.  If the Executive's employment is terminated by
reason of the Executive's death during the Employment Period, this Agreement
shall terminate without further obligations to the Executive's legal
representatives under this Agreement, other than for payment of Accrued
Obligations and the timely payment or provision of Other Benefits.  Accrued
Obligations shall be paid to the Executive's estate or beneficiary, as
applicable, in a lump sum in cash within 30 days after the Date of Termination.
With respect to the provision of Other Benefits, the term Other Benefits as
utilized in this Section 6(b) shall include, without limitation, and the
Executive's estate and/or beneficiaries shall be entitled to receive, benefits
at least equal to the most favorable benefits provided by the Company and
affiliated companies to the estates and beneficiaries of peer executives of the
Company and such affiliated companies under such plans, programs, practices and
policies relating to death benefits, if any, as in effect with respect





                                      -11-
<PAGE>   12
to other peer executives and their beneficiaries at any time during the 120-day
period immediately preceding the Effective Date or, if more favorable to the
Executive's estate and/or the Executive's beneficiaries, as in effect on the
date of the Executive's death with respect to other peer executives of the
Company and its affiliated companies and their beneficiaries.

                 (c) Disability.  If the Executive's employment is terminated
by reason of the Executive's Disability during the Employment Period, this
Agreement shall terminate without further obligations to the Executive, other
than for payment of Accrued Obligations and the timely payment or provision of
Other Benefits.  Accrued Obligations shall be paid to the Executive in a lump
sum in cash within 30 days after the Date of Termination.  With respect to the
provision of Other Benefits, the term Other Benefits as utilized in this
Section 6(c) shall include, and the Executive shall be entitled after the
Disability Effective Date to receive, disability and other benefits at least
equal to the most favorable of those generally provided by the Company and its
affiliated companies to disabled executives and/or their families in accordance
with such plans, programs, practices and policies relating to disability, if
any, as in effect generally with respect to other peer executives and their
families at any time during the 120-day period immediately preceding the
Effective Date or, if more favorable to the Executive and/or the Executive's
family, as in effect at any time thereafter generally with respect to other
peer executives of the Company and its affiliated companies and their families.

                 (d) Cause; Other than for Good Reason.  If the Executive's
employment shall be terminated for Cause during the Employment Period, this
Agreement shall terminate without further obligations to the Executive other
than the obligation to pay to the Executive (x) the Annual Base Salary through
the Date of Termination, (y) the amount of any compensation previously deferred
by the Executive, and (z) Other Benefits, in each case to the extent
theretofore unpaid.  If the Executive voluntarily terminates employment during
the Employment Period, excluding a termination for Good Reason, this Agreement
shall terminate without further obligations to the Executive, other than for
Accrued Obligations and the timely payment or provision of Other Benefits.  In
such case, all Accrued Obligations shall be paid to the Executive in a lump sum
in cash within 30 days of the Date of Termination.

                                    -12-
<PAGE>   13

                 7. Non-exclusivity of Rights.  Nothing in this Agreement shall
prevent or limit the Executive's continuing or future participation in any
plan, program, policy or practice provided by the Company or any of its
affiliated companies and for which the Executive may qualify, nor, subject to
Section 12(f), shall anything herein limit or otherwise affect such rights as
the Executive may have under any contract or agreement with the Company or any
of its affiliated companies.  Amounts which are vested benefits or which the
Executive is otherwise entitled to receive under any plan, policy, practice or
program of or any contract or agreement with the Company or any of its
affiliated companies at or subsequent to the Date of Termination shall be
payable in accordance with such plan, policy, practice or program or contract
or agreement except as explicitly modified by this Agreement.

                 8. Full Settlement; Legal Fees.  The Company's obligation to
make the payments provided for in this Agreement and otherwise to perform its
obligations hereunder shall not be affected by any set-off, counterclaim,
recoupment, defense or other claim, right or action which the Company may have
against the Executive or others.  In no event shall the Executive be obligated
to seek other employment or take any other action by way of mitigation of the
amounts payable to the Executive under any of the provisions of this Agreement
and except as specifically provided in Section 6(a)(ii), such amounts shall not
be reduced whether or not the Executive obtains other employment.  The Company
agrees to pay as incurred, to the full extent permitted by law, all legal fees
and expenses which the Executive may reasonably incur as a result of any
contest (regardless of the outcome thereof) by the Company, the Executive or
others of the validity or enforceability of, or liability or entitlement under,
any provision of this Agreement or any guarantee of performance thereof
(whether such contest is between the Company and the Executive or between
either of them and any third party, and including as a result of any contest by
the Executive about the amount of any payment pursuant to this Agreement), plus
in each case interest on any delayed payment at 120% of the applicable Federal
rate (that applies to the time period of the delay) provided for in Section
7872(f)(2)(A) of the Internal Revenue Code of 1986, as amended (the "Code"),
compounded annually.





                                      -13-
<PAGE>   14
                 9. Certain Additional Payments by the Company.

                 (a) Anything in this Agreement to the contrary
notwithstanding, in the event it shall be determined that any payment, award,
benefit or distribution by the Company (or any of its affiliated entities) or
by any entity which effectuates a Change of Control (or any of its affiliated
entities) to or for the benefit of the Executive (whether pursuant to the terms
of this Agreement or otherwise, but determined without regard to any additional
payments required under this Section 9) (a "Payment") would be subject to the
excise tax imposed by Section 4999 of the Code or any corresponding provisions
of state or local tax laws, or any interest or penalties are incurred by the
Executive with respect to such excise tax (such excise tax, together with any
such interest and penalties, are hereinafter collectively referred to as the
"Excise Tax"), then the Executive shall be entitled to receive an additional
payment (a "Gross-Up Payment") in an amount such that after payment by the
Executive of all taxes (including any interest or penalties imposed with
respect to such taxes), including, without limitation, any income taxes (and
any interest and penalties imposed with respect thereto) and Excise Tax imposed
upon the Gross-Up Payment, the Executive retains an amount of the Gross-Up
Payment equal to the Excise Tax imposed upon the Payments.  The payment of a
Gross-Up Payment under this Section 9(a) shall not be conditioned upon the
Executive's termination of employment.

                 (b) Subject to the provisions of Section 9(c), all
determinations required to be made under this Section 9, including whether and
when a Gross-Up Payment is required and the amount of such Gross-Up Payment and
the assumptions to be utilized in arriving at such determination, shall be made
by Price Waterhouse LLP or such other certified public accounting firm as may
be designated by the Executive (the "Accounting Firm"), which shall provide
detailed supporting calculations both to the Company and the Executive within
15 business days of the receipt of notice from the Executive that there has
been a Payment, or such earlier time as is requested by the Company.  In the
event that the Accounting Firm is serving as accountant or auditor for the
individual, entity or group effecting the Change of Control, the Executive
shall appoint another nationally recognized accounting firm to make the
determinations required hereunder (which accounting firm shall then be referred
to as the Accounting Firm hereunder).  All fees and expenses of the Accounting
Firm shall be borne solely by the Company.  Any





                                      -14-
<PAGE>   15
Gross-Up Payment, as determined pursuant to this Section 9, shall be paid by
the Company to the Executive within 5 days after the receipt of the Accounting
Firm's determination.  Any determination by the Accounting Firm shall be
binding upon the Company and the Executive.  As a result of the uncertainty in
the application of Section 4999 of the Code at the time of the initial
determination by the Accounting Firm hereunder, it is possible that Gross-Up
Payments which will not have been made by the Company should have been made
("Underpayment"), consistent with the calculations required to be made
hereunder.  In the event that the Company exhausts its remedies pursuant to
Section 9(c) and the Executive thereafter is required to make a payment of any
Excise Tax, the Accounting Firm shall determine the amount of the Underpayment
that has occurred and any such Underpayment shall be promptly paid by the
Company to or for the benefit of the Executive.

                 (c) The Executive shall notify the Company in writing of any
claim by the Internal Revenue Service that, if successful, would require the
payment by the Company of the Gross-Up Payment.  Such notification shall be
given as soon as practicable but no later than ten business days after the
Executive is informed in writing of such claim and shall apprise the Company of
the nature of such claim and the date on which such claim is requested to be
paid.  The Executive shall not pay such claim prior to the expiration of the
30-day period following the date on which the Executive gives such notice to
the Company (or such shorter period ending on the date that any payment of
taxes with respect to such claim is due).  If the Company notifies the
Executive in writing prior to the expiration of such period that it desires to
contest such claim, the Executive shall:

                                  (i)      give the Company any information
         reasonably requested by the Company relating to such claim,

                                  (ii)     take such action in connection with
         contesting such claim as the Company shall reasonably request in
         writing from time to time, including, without limitation, accepting
         legal representation with respect to such claim by an attorney
         reasonably selected by the Company,

                                 (iii)    cooperate with the Company in good
         faith in order effectively to contest such claim, and





                                      -15-
<PAGE>   16
                                 (iv)     permit the Company to participate in
         any proceedings relating to such claim;

provided, however, that the Company shall bear and pay directly all costs and
expenses (including additional interest and penalties) incurred in connection
with such contest and shall indemnify and hold the Executive harmless, on an
after-tax basis, for any Excise Tax or income tax (including interest and
penalties with respect thereto) imposed as a result of such representation and
payment of costs and expenses.  Without limitation on the foregoing provisions
of this Section 9(c), the Company shall control all proceedings taken in
connection with such contest and, at its sole option, may pursue or forgo any
and all administrative appeals,  proceedings, hearings and conferences with the
taxing authority in respect of such claim and may, at its sole option, either
direct the Executive to pay the tax claimed and sue for a refund or contest the
claim in any permissible manner, and the Executive agrees to prosecute such
contest to a determination before any administrative tribunal, in a court of
initial jurisdiction and in one or more appellate courts, as the Company shall
determine; provided, however, that if the Company directs the Executive to pay
such claim and sue for a refund, the Company shall advance the amount of such
payment to the Executive, on an interest-free basis and shall indemnify and
hold the Executive harmless, on an after-tax basis, from any Excise Tax or
income tax (including interest or penalties with respect thereto) imposed with
respect to such advance or with respect to any imputed income with respect to
such advance; and further provided that any extension of the statute of
limitations relating to payment of taxes for the taxable year of the Executive
with respect to which such contested amount is claimed to be due is limited
solely to such contested amount.  Furthermore, the Company's control of the
contest shall be limited to issues with respect to which a Gross-Up Payment
would be payable hereunder and the Executive shall be entitled to settle or
contest, as the case may be, any other issue raised by the Internal Revenue
Service or any other taxing authority.

                 (d) If, after the receipt by the Executive of an amount
advanced by the Company pursuant to Section 9(c), the Executive becomes
entitled to receive any refund with respect to such claim, the Executive shall
(subject to the Company's complying with the requirements of Section 9(c))
promptly pay to the Company the amount of such refund (together with any
interest





                                      -16-
<PAGE>   17
paid or credited thereon after deducting an amount sufficient to pay applicable
federal, state and local taxes on such interest at the highest marginal rates
applicable thereto).  If, after the receipt by the Executive of an amount
advanced by the Company pursuant to Section 9(c), a determination is made that
the Executive shall not be entitled to any refund with respect to such claim
and the Company does not notify the Executive in writing of its intent to
contest such denial of refund prior to the expiration of 30 days after such
determination, then such advance shall be forgiven and shall not be required to
be repaid and the amount of such advance shall offset, to the extent thereof,
the amount of Gross-Up Payment required to be paid.

                 10. Confidential Information.  The Executive shall hold in a
fiduciary capacity for the benefit of the Company all secret or confidential
information, knowledge or data relating to the Company or any of its affiliated
companies, and their respective businesses, which shall have been obtained by
the Executive during the Executive's employment by the Company or any of its
affiliated companies and which shall not be or become public knowledge (other
than by acts by the Executive or representatives of the Executive in violation
of this Agreement).  After termination of the Executive's employment with the
Company, the Executive shall not, without the prior written consent of the
Company or as may otherwise be required by law or legal process, communicate or
divulge any such information, knowledge or data to anyone other than the
Company and those designated by it.  In no event shall an asserted violation of
the provisions of this Section 10 constitute a basis for deferring or
withholding any amounts otherwise payable to the Executive under this
Agreement.

                 11. Successors.  (a) This Agreement is personal to the
Executive and without the prior written consent of the Company shall not be
assignable by the Executive otherwise than by will or the laws of descent and
distribution.  This Agreement shall inure to the benefit of and be enforceable
by the Executive's legal representatives.

                 (b) This Agreement shall inure to the benefit of and be
binding upon the Company and its successors and assigns.

                 (c) The Company will require any successor (whether direct or
indirect, by purchase, merger, consolidation or otherwise) to all or
substantially all of the business and/or





                                      -17-
<PAGE>   18
assets of the Company to assume expressly and agree to perform this Agreement
in the same manner and to the same extent that the Company would be required to
perform it if no such succession had taken place.  As used in this Agreement,
"Company" shall mean the Company as hereinbefore defined and any successor to
its business and/or assets as aforesaid which assumes and agrees to perform
this Agreement by operation of law, or otherwise.

                 12.Miscellaneous.  (a)  This Agreement shall be governed by
and construed in accordance with the laws of the State of Delaware, without
reference to principles of conflict of laws.  The captions of this Agreement
are not part of the provisions hereof and shall have no force or effect.  This
Agreement may not be amended or modified otherwise than by a written agreement
executed by the parties hereto or their respective successors and legal
representatives.

                 (b) All notices and other communications hereunder shall be in
writing and shall be given by hand delivery to the other party or by registered
or certified mail, return receipt requested, postage prepaid, addressed as
follows:

                 If to the Executive:

                 Marvin H. Assofsky
                 10131 SW 3 Street
                 Plantation, Florida  33324

                 If to the Company:

                 John Alden Financial Corporation
                 7300 Corporate Center Drive
                 Miami, FL  33126-1223

                                  Attention:  General Counsel

or to such other address as either party shall have furnished to the other in
writing in accordance herewith.  Notice and communications shall be effective
when actually received by the addressee.





                                      -18-
<PAGE>   19
                 (c) The invalidity or unenforceability of any provision of
this Agreement shall not affect the validity or enforceability of any other
provision of this Agreement.

                 (d) The Company may withhold from any amounts payable under
this Agreement such Federal, state, local or foreign taxes as shall be required
to be withheld pursuant to any applicable law or regulation.

                 (e) The Executive's or the Company's failure to insist upon
strict compliance with any provision hereof or any other provision of this
Agreement or the failure to assert any right the Executive or the Company may
have hereunder, including, without limitation, the right of the Executive to
terminate employment for Good Reason pursuant to Section 5(c)(i)-(v) of this
Agreement, shall not be deemed to be a waiver of such provision or right or any
other provision or right of this Agreement.

                 (f) The Executive and the Company acknowledge that, except as
may otherwise be provided under any other written agreement between the
Executive and the Company, the employment of the Executive by the Company is
"at will" and, prior to the Effective Date, the Executive's employment may be
terminated by either the Executive or the Company at any time prior to the
Effective Date, in which case the Executive shall have no further rights under
this Agreement.  From and after the Effective Date this Agreement shall
supersede any other agreement between the parties with respect to the subject
matter hereof, including, without limitation, the right of the Executive to
participate in any severance plan of the Company or otherwise receive severance
benefits from the Company.





                                      -19-
<PAGE>   20
                 IN WITNESS WHEREOF, the Executive has hereunto set the
Executive's hand and, pursuant to the authorization from its Board of
Directors, the Company has caused this Agreement to be executed in its name on
its behalf, all as of the day and year first above written.

                                       JOHN ALDEN FINANCIAL CORPORATION



                                       By:  /s/ SCOTT L. STANTON            
                                           ------------------------------------
                                       
                                       Title:  Senior Vice President and Chief
                                              ---------------------------------
                                               Financial Officer
                                              ---------------------------------

                                        /s/ MARVIN H. ASSOFSKY
                                       ----------------------------------------
                                                        Marvin H. Assofsky





                                      -20-

<PAGE>   1
                                                                   EXHIBIT 10.65




                               CHANGE OF CONTROL
                              EMPLOYMENT AGREEMENT


                    AGREEMENT by and between John Alden Financial Corporation,
a Delaware corporation (the "Company") and Glen A. Spence (the "Executive"),
dated as of the 5th day of November, 1997.

                    The Board of Directors of the Company (the "Board"), has
determined that it is in the best interests of the Company and its shareholders
to assure that the Company will have the continued dedication of the Executive,
notwithstanding the possibility, threat or occurrence of a Change of Control
(as defined below) of the Company.  The Board believes it is imperative to
diminish the inevitable distraction of the Executive by virtue of the personal
uncertainties and risks created by a pending or threatened Change of Control
and to encourage the Executive's full attention and dedication to the Company
currently and in the event of any threatened or pending Change of Control, and
to provide the Executive with compensation and benefits arrangements upon a
Change of Control which ensure that the compensation and benefits expectations
of the Executive will be satisfied and which are competitive with those of
other corporations.  Therefore, in order to accomplish these objectives, the
Board has caused the Company to enter into this Agreement.

                    NOW, THEREFORE, IT IS HEREBY AGREED AS FOLLOWS:

                    1.      Certain Definitions.  (a)  The "Effective Date"
shall mean the first date during the Change of Control Period (as defined in
Section 1(b)) on which a Change of Control (as defined in Section 2) occurs.
Anything in this Agreement to the contrary notwithstanding, if a Change of
Control occurs and if the Executive's employment with the Company is terminated
prior to the date on which the Change of Control occurs, and if it is
reasonably demonstrated by the Executive that such termination of employment
(i) was at the request of a third party who has taken steps reasonably
calculated to effect a Change of Control or (ii) otherwise arose in connection
with or anticipation of a Change of Control, then for all purposes of this
Agreement the "Effective Date" shall mean the date immediately prior to the
date of such termination of employment.
<PAGE>   2
                    (b)     The "Change of Control Period" shall mean the
period commencing on the date hereof and ending on the third anniversary of the
date hereof; provided, however, that commencing on the date one year after the
date hereof, and on each annual anniversary of such date (such date and each
annual anniversary thereof shall be hereinafter referred to as the "Renewal
Date"), unless previously terminated, the Change of Control Period shall be
automatically extended so as to terminate 3 years from such Renewal Date,
unless at least 60 days prior to the Renewal Date the Company shall give notice
to the Executive that the Change of Control Period shall not be so extended.

                    2.      Change of Control.  For the purpose of this
Agreement, a "Change of Control" shall mean:

                    (a)  The acquisition by any individual, entity or group
            (within the meaning of Section 13(d)(3) or 14(d)(2) of the
            Securities Exchange Act of 1934, as amended (the "Exchange Act"))
            (a "Person") of beneficial ownership (within the meaning of Rule
            13d-3 promulgated under the Exchange Act) of 20% or more of either
            (i) the then outstanding shares of common stock of the Company (the
            "Outstanding Company Common Stock") or (ii) the combined voting
            power of the then outstanding voting securities of the Company
            entitled to vote generally in the election of directors (the
            "Outstanding Company Voting Securities"); provided, however, that
            for purposes of this subsection (a), the following acquisitions
            shall not constitute a Change of Control:  (i) any acquisition
            directly from the Company, (ii) any acquisition by the Company,
            (iii) any acquisition by any employee benefit plan (or related
            trust) sponsored or maintained by the Company or any corporation
            controlled by the Company or (iv) any acquisition pursuant to a
            transaction which complies with clauses (i), (ii) and (iii) of
            subsection (c) of this Section 2; or

                    (b)  Individuals who, as of the date hereof, constitute the
            Board (the "Incumbent Board") cease for any reason to constitute at
            least a majority of the Board; provided, however, that any
            individual becoming a director subsequent to the date hereof whose
            election, or nomination for election by the Company's shareholders,
            was approved by a vote of at least a majority of the directors then
            comprising the Incumbent Board shall be considered as though such
            individual were a member of the Incumbent Board, but excluding, for
            this purpose, any such individual whose initial assumption of
            office occurs as a result of an actual or threatened election
            contest with respect to the election or removal of directors or
            other actual or threatened solicitation of proxies or consents by
            or on behalf of a Person other than the Board; or

                    (c)  Consummation by the Company of a reorganization,
            merger or consolidation or sale or other disposition of all or
            substantially all of the assets of the Company or the acquisition
            of assets of another entity (a "Business Combination"), in each
            case, unless,





                                     -2-
<PAGE>   3
            following such Business Combination, (i) all or substantially all
            of the individuals and entities who were the beneficial owners,
            respectively, of the Outstanding Company Common Stock and
            Outstanding Company Voting Securities immediately prior to such
            Business Combination beneficially own, directly or indirectly, more
            than 60% of, respectively, the then outstanding shares of common
            stock and the combined voting power of the then outstanding voting
            securities entitled to vote generally in the election of directors,
            as the case may be, of the corporation resulting from such Business
            Combination (including, without limitation, a corporation which as
            a result of such transaction owns the Company or all or
            substantially all of the Company's assets either directly or
            through one or more subsidiaries) in substantially the same
            proportions as their ownership, immediately prior to such Business
            Combination of the Outstanding Company Common Stock and Outstanding
            Company Voting Securities, as the case may be, (ii) no Person
            (excluding any employee benefit plan (or related trust) of the
            Company or such corporation resulting from such Business
            Combination) beneficially owns, directly or indirectly, 20% or more
            of, respectively, the then outstanding shares of common stock of
            the corporation resulting from such Business Combination or the
            combined voting power of the then outstanding voting securities of
            such corporation except to the extent that such ownership existed
            prior to the Business Combination and (iii) at least a majority of
            the members of the board of directors of the corporation resulting
            from such Business Combination were members of the Incumbent Board
            at the time of the execution of the initial agreement, or of the
            action of the Board, providing for such Business Combination; or

                    (d)  Approval by the shareholders of the Company of a
            complete liquidation or dissolution of the Company.

                    3.      Employment Period.  The Company hereby agrees to
continue the Executive in its employ, and the Executive hereby agrees to remain
in the employ of the Company subject to the terms and conditions of this
Agreement, for the period commencing on the Effective Date and ending on the
third anniversary of such date (the "Employment Period").

                    4.      Terms of Employment.  (a)  Position and Duties.
(i)  During the Employment Period, (A) the Executive's position (including
status, offices, titles and reporting requirements), authority, duties and
responsibilities shall be at least commensurate in all material respects with
the most significant of those held, exercised and assigned to the Executive at
any time during the 120-day period immediately preceding the Effective Date and
(B) the Executive's services shall be performed at the location where the
Executive was employed immediately preceding the Effective Date or any office
or location less than 35 miles from such location.





                                      -3-
<PAGE>   4
                            (ii)   During the Employment Period, and excluding
any periods of vacation and sick leave to which the Executive is entitled, the
Executive agrees to devote reasonable attention and time during normal business
hours to the business and affairs of the Company and, to the extent necessary
to discharge the responsibilities assigned to the Executive hereunder, to use
the Executive's reasonable best efforts to perform faithfully and efficiently
such responsibilities.  During the Employment Period it shall not be a
violation of this Agreement for the Executive to (A) serve on corporate, civic
or charitable boards or committees, (B) deliver lectures, fulfill speaking
engagements or teach at educational institutions and (C) manage personal
investments, so long as such activities do not significantly interfere with the
performance of the Executive's responsibilities as an employee of the Company
in accordance with this Agreement.  It is expressly understood and agreed that
to the extent that any such activities have been conducted by the Executive
prior to the Effective Date, the continued conduct of such activities (or the
conduct of activities similar in nature and scope thereto) subsequent to the
Effective Date shall not thereafter be deemed to interfere with the performance
of the Executive's responsibilities to the Company.

                    (b)     Compensation.  (i)  Base Salary.  During the
Employment Period, the Executive shall receive an annual base salary ("Annual
Base Salary"), which shall be paid at a monthly rate, at least equal to 12
times the highest monthly base salary paid or payable, including any base
salary which has been earned but deferred, to the Executive by the Company and
its affiliated companies in respect of the twelve-month period immediately
preceding the month in which the Effective Date occurs.  During the Employment
Period, the Annual Base Salary shall be reviewed within 12 months after the
last salary increase awarded to the Executive prior to the Effective Date and
thereafter at least annually.  Any increase in Annual Base Salary shall not
serve to limit or reduce any other obligation to the Executive under this
Agreement.  Annual Base Salary shall not be reduced after any such increase and
the term Annual Base Salary as utilized in this Agreement shall refer to Annual
Base Salary as so increased.  As used in this Agreement, the term "affiliated
companies" shall include any company controlled by, controlling or under common
control with the Company.





                                      -4-
<PAGE>   5
                            (ii)   Annual Bonus.  In addition to Annual Base
Salary, the Executive shall be awarded, for each fiscal year ending during the
Employment Period, an annual bonus (the "Annual Bonus") in cash at least equal
to the Executive's target annual bonus under the Company's Short-Term Incentive
Compensation Plan for 1997 ("1997 Target Bonus") or, if higher, the Executive's
greatest target annual bonus in any subsequent year prior to the Effective
Date.  Each such Annual Bonus shall be paid no later than the end of the third
month of the fiscal year next following the fiscal year for which the Annual
Bonus is awarded, unless the Executive shall elect to defer the receipt of such
Annual Bonus.

                            (iii)  Incentive, Savings and Retirement Plans.
During the Employment Period, the Executive shall be entitled to participate in
all incentive, savings and retirement plans, practices, policies and programs
applicable generally to other peer executives of the Company and its affiliated
companies, but in no event shall such plans, practices, policies and programs
provide the Executive with incentive opportunities (measured with respect to
both regular and special incentive opportunities, to the extent, if any, that
such distinction is applicable), savings opportunities and retirement benefit
opportunities, in each case, less favorable, in the aggregate, than the most
favorable of those provided by the Company and its affiliated companies for the
Executive under such plans, practices, policies and programs as in effect at
any time during the 120-day period immediately preceding the Effective Date or
if more favorable to the Executive, those provided generally at any time after
the Effective Date to other peer executives of the Company and its affiliated
companies.

                            (iv)   Welfare Benefit Plans.  During the
Employment Period, the Executive and/or the Executive's family, as the case may
be, shall be eligible for participation in and shall receive all benefits under
welfare benefit plans, practices, policies and programs provided by the Company
and its affiliated companies (including, without limitation, medical,
prescription, dental, disability, salary continuance, employee life, group
life, accidental death and travel accident insurance plans and programs) to the
extent applicable generally to other peer executives of the Company and its
affiliated companies, but in no event shall such plans, practices, policies and
programs provide the Executive with benefits which are less favorable, in the
aggregate, than the most favorable of such plans, practices, policies and
programs in effect for





                                      -5-
<PAGE>   6
the Executive at any time during the 120-day period immediately preceding the
Effective Date or, if more favorable to the Executive, those provided generally
at any time after the Effective Date to other peer executives of the Company
and its affiliated companies.

                            (v)    Expenses.  During the Employment Period, the
Executive shall be entitled to receive prompt reimbursement for all reasonable
expenses incurred by the Executive in accordance with the most favorable
policies, practices and procedures of the Company and its affiliated companies
in effect for the Executive at any time during the 120-day period immediately
preceding the Effective Date or, if more favorable to the Executive, as in
effect generally at any time thereafter with respect to other peer executives
of the Company and its affiliated companies.

                            (vi)   Fringe Benefits.  During the Employment
Period, the Executive shall be entitled to fringe benefits, including, without
limitation, tax and financial planning services, payment of club dues, and, if
applicable, use of an automobile (or an automobile allowance) and payment of
related expenses, in accordance with the most favorable plans, practices,
programs and policies of the Company and its affiliated companies in effect for
the Executive at any time during the 120-day period immediately preceding the
Effective Date or, if more favorable to the Executive, as in effect generally
at any time thereafter with respect to other peer executives of the Company and
its affiliated companies.

                            (vii)  Office and Support Staff.  During the
Employment Period, the Executive shall be entitled to an office or offices of a
size and with furnishings and other appointments, and to exclusive personal
secretarial and other assistance, at least equal to the most favorable of the
foregoing provided to the Executive by the Company and its affiliated companies
at any time during the 120-day period immediately preceding the Effective Date
or, if more favorable to the Executive, as provided generally at any time
thereafter with respect to other peer executives of the Company and its
affiliated companies.

                            (viii) Vacation.  During the Employment Period, the
Executive shall be entitled to paid vacation in accordance with the most
favorable plans, policies, programs and practices of the Company and its
affiliated companies as in effect for the Executive at any time





                                      -6-
<PAGE>   7
during the 120-day period immediately preceding the Effective Date or, if more
favorable to the Executive, as in effect generally at any time thereafter with
respect to other peer executives of the Company and its affiliated companies.

                    5.      Termination of Employment.  (a)  Death or
Disability.  The Executive's employment shall terminate automatically upon the
Executive's death during the Employment Period.  If the Company determines in
good faith that the Disability of the Executive has occurred during the
Employment Period (pursuant to the definition of Disability set forth below),
it may give to the Executive written notice in accordance with Section 12(b) of
this Agreement of its intention to terminate the Executive's employment.  In
such event, the Executive's employment with the Company shall terminate
effective on the 30th day after receipt of such notice by the Executive (the
"Disability Effective Date"), provided that, within the 30 days after such
receipt, the Executive shall not have returned to full-time performance of the
Executive's duties.  For purposes of this Agreement, "Disability" shall mean
the absence of the Executive from the Executive's duties with the Company on a
full-time basis for 180 consecutive business days as a result of incapacity due
to mental or physical illness which is determined to be total and permanent by
a physician selected by the Company or its insurers  and acceptable to the
Executive or the Executive's legal representative.

                    (b)     Cause.  The Company may terminate the Executive's
employment during the Employment Period for Cause.  For purposes of this
Agreement, "Cause" shall mean:

                            (i)    the willful and continued failure of the
            Executive to perform substantially the Executive's duties with the
            Company or one of its affiliates (other than any such failure
            resulting from incapacity due to physical or mental illness), after
            a written demand for substantial performance is delivered to the
            Executive by the Board or the Chief Executive Officer of the
            Company which specifically identifies the manner in which the Board
            or Chief Executive Officer believes that the Executive has not
            substantially performed the Executive's duties, or

                            (ii)   the willful engaging by the Executive in
            illegal conduct or gross misconduct which is materially and
            demonstrably injurious to the Company.

For purposes of this provision, no act or failure to act, on the part of the
Executive, shall be considered "willful" unless it is done, or omitted to be
done, by the Executive in bad faith or





                                      -7-
<PAGE>   8
without reasonable belief that the Executive's action or omission was in the
best interests of the Company.  Any act, or failure to act, based upon
authority given pursuant to a resolution duly adopted by the Board or upon the
instructions of the Chief Executive Officer or a senior officer of the Company
or based upon the advice of counsel for the Company shall be conclusively
presumed to be done, or omitted to be done, by the Executive in good faith and
in the best interests of the Company.  The cessation of employment of the
Executive shall not be deemed to be for Cause unless and until there shall have
been delivered to the Executive a copy of a resolution duly adopted by the
affirmative vote of not less than three-quarters of the entire membership of
the Board at a meeting of the Board called and held for such purpose (after
reasonable notice is provided to the Executive and the Executive is given an
opportunity, together with counsel, to be heard before the Board), finding
that, in the good faith opinion of the Board, the Executive is guilty of the
conduct described in subparagraph (i) or (ii) above, and specifying the
particulars thereof in detail.

                    (c)     Good Reason.  The Executive's employment may be
terminated by the Executive for Good Reason.  For purposes of this Agreement,
"Good Reason" shall mean:

                            (i)    the assignment to the Executive of any
            duties inconsistent in any respect with the Executive's position
            (including status, offices, titles and reporting requirements),
            authority, duties or responsibilities as contemplated by Section
            4(a) of this Agreement, or any other action by the Company which
            results in a diminution in such position, authority, duties or
            responsibilities, excluding for this purpose an isolated,
            insubstantial and inadvertent action not taken in bad faith and
            which is remedied by the Company promptly after receipt of notice
            thereof given by the Executive;

                            (ii)   any failure by the Company to comply with
            any of the provisions of Section 4(b) of this Agreement, other than
            an isolated, insubstantial and inadvertent failure not occurring in
            bad faith and which is remedied by the Company promptly after
            receipt of notice thereof given by the Executive;

                            (iii)  the Company's requiring the Executive to be
            based at any office or location other than as provided in Section
            4(a)(i)(B) hereof or the Company's requiring the Executive to
            travel on Company business to a substantially greater extent than
            required immediately prior to the Effective Date;

                            (iv)   any purported termination by the Company of
            the Executive's employment otherwise than as expressly  permitted
            by this Agreement; or





                                      -8-
<PAGE>   9
                            (v)    any failure by the Company to comply with
            and satisfy Section 11(c) of this Agreement.

For purposes of this Section 5(c), any good faith determination of "Good
Reason" made by the Executive shall be conclusive.  Anything in this Agreement
to the contrary notwithstanding, a termination by the Executive for any reason
during the 30-day period immediately following the first anniversary of the
Effective Date shall be deemed to be a termination for Good Reason for all
purposes of this Agreement.

                    (d)     Notice of Termination.  Any termination by the
Company for Cause, or by the Executive for Good Reason, shall be communicated
by Notice of Termination to the other party hereto given in accordance with
Section 12(b) of this Agreement.  Such Notice of Termination for Cause shall be
given within 90 days following the Company's "actual" knowledge of any event
constituting Cause, and such Notice of Termination for Good Reason shall be
given within 180 days following the Executive's "actual" knowledge of an event
constituting Good Reason.  For purposes of this Agreement, a "Notice of
Termination" means a written notice which (i) indicates the specific
termination provision in this Agreement relied upon, (ii) to the extent
applicable, sets forth in reasonable detail the facts and circumstances claimed
to provide a basis for termination of the Executive's employment under the
provision so indicated and (iii) if the Date of Termination (as defined below)
is other than the date of receipt of such notice, specifies the termination
date (which date shall be not more than thirty days after the giving of such
notice).  The failure by the Executive or the Company to set forth in the
Notice of Termination any fact or circumstance which contributes to a showing
of Good Reason or Cause shall not waive any right of the Executive or the
Company, respectively, hereunder or preclude the Executive or the Company,
respectively, from asserting such fact or circumstance in enforcing the
Executive's or the Company's rights hereunder.

                    (e)     Date of Termination.  "Date of Termination" means
(i) if the Executive's employment is terminated by the Company for Cause, or by
the Executive for Good Reason, the date of receipt of the Notice of Termination
or any later date specified therein, as the case may be, (ii) if the
Executive's employment is terminated by the Company other than for Cause or 
Disability, the date on which the Company notifies the Executive of such
termination and (iii) if 





                                      -9-
<PAGE>   10
the Executive's employment is terminated by reason of death or Disability, the
date of death of the Executive or the Disability Effective Date, as the case
may be.

                    6.      Obligations of the Company upon Termination.  (a)
Good Reason; Other Than for Cause, Death or Disability.  If, during the
Employment Period, the Company shall terminate the Executive's employment other
than for Cause or Disability or the Executive shall terminate employment for
Good Reason:

                            (i)    the Company shall pay to the Executive in a
            lump sum in cash within 30 days after the Date of Termination the
            aggregate of the following amounts:

                                   A.   the sum of (1) the Executive's Annual
                    Base Salary through the Date of Termination to the extent
                    not theretofore paid, (2) the product of (x) the greater of
                    (a) the 1997 Target Bonus and (b) the Executive's highest
                    target annual bonus for any fiscal year that begins both
                    subsequent to 1997 and within 3 years prior to the Date of
                    Termination (such greater amount, the "Highest Target
                    Bonus") and (y) a fraction, the numerator of which is the
                    number of days in the current fiscal year through the Date
                    of Termination, and the denominator of which is 365 and (3)
                    any compensation previously deferred by the Executive
                    (together with any accrued interest or earnings thereon)
                    and any accrued vacation pay, in each case to the extent
                    not theretofore paid (the sum of the amounts described in
                    clauses (1), (2), and (3) shall be hereinafter referred to
                    as the "Accrued Obligations"); and

                                   B.   the amount equal to the product of (1)
                    3 and (2) the sum of (x) the Executive's Annual Base Salary
                    and (y) the Highest Target Bonus; and

                                   C.   an amount equal to the difference
                    between (a) the aggregate benefit under the Company's
                    qualified defined benefit retirement plans (collectively,
                    the "Retirement Plan") and any excess or supplemental
                    defined benefit retirement plans in which the Executive
                    participates (collectively, the "SERP") which the Executive
                    would have accrued (whether or not vested) if the
                    Executive's employment had continued for 3 years after the
                    Date of Termination (based on the assumption that the
                    Executive's compensation in each of the 3 years following
                    such termination would have been that required by Section
                    4(b)(i) and Section 4(b)(ii)) and (b) the actual vested
                    benefit, if any, of the Executive under the Retirement Plan
                    and the SERP, determined as of the Date of Termination
                    (with the foregoing amounts to be computed on an actuarial
                    present value basis using actuarial assumptions no less
                    favorable to the Executive than the most favorable of those
                    in effect for purposes of computing benefit entitlements
                    under the Retirement Plan and the SERP at any time from the
                    day before the Effective Date) through the Date of
                    Termination;





                                      -10-
<PAGE>   11
                            (ii)   for 3 years after the Executive's Date of
            Termination, or such longer period as may be provided by the terms
            of the appropriate plan, program, practice or policy, the Company
            shall continue benefits to the Executive and/or the Executive's
            family at least equal to those which would have been provided to
            them in accordance with the plans, programs, practices and policies
            described in Section 4(b)(iv) of this Agreement if the Executive's
            employment had not been terminated or, if more favorable to the
            Executive, as in effect generally at any time thereafter with
            respect to other peer executives of the Company and its affiliated
            companies and their families, provided, however, that if the
            Executive becomes reemployed with another employer and is eligible
            to receive medical or other welfare benefits under another
            employer-provided plan, the medical and other welfare benefits
            described herein shall be secondary to those provided under such
            other plan during such applicable period of eligibility, and for
            purposes of determining eligibility (but not the time of
            commencement of benefits) of the Executive for retiree benefits
            pursuant to such plans, practices, programs and policies, the
            Executive shall be considered to have remained employed until 3
            years after the Date of Termination and to have retired on the last
            day of such period;

                            (iii)  the Company shall, at its sole expense as
            incurred, provide the Executive with outplacement services the
            scope and provider of which shall be selected by the Executive in
            the Executive's sole discretion; provided, however, that the
            Company shall not be obligated to provide such services for a
            period of more than one year after the Date of Termination or at an
            aggregate cost in excess of $20,000; and

                            (iv)   to the extent not theretofore paid or
            provided, the Company shall timely pay or provide to the Executive
            any other amounts or benefits required to be paid or provided or
            which the Executive is eligible to receive under any plan, program,
            policy or practice or contract or agreement of the Company and its
            affiliated companies (such other amounts and benefits shall be
            hereinafter referred to as the "Other Benefits").

                    (b)     Death.  If the Executive's employment is terminated
by reason of the Executive's death during the Employment Period, this Agreement
shall terminate without further obligations to the Executive's legal
representatives under this Agreement, other than for payment of Accrued
Obligations and the timely payment or provision of Other Benefits.  Accrued
Obligations shall be paid to the Executive's estate or beneficiary, as
applicable, in a lump sum in cash within 30 days after the Date of Termination.
With respect to the provision of Other Benefits, the term Other Benefits as
utilized in this Section 6(b) shall include, without limitation, and the
Executive's estate and/or beneficiaries shall be entitled to receive, benefits
at least equal to the most favorable benefits provided by the Company and
affiliated companies to the estates and beneficiaries of peer executives of the
Company and such affiliated companies under such plans, programs, practices and
policies relating to death benefits, if any, as in effect with respect





                                      -11-
<PAGE>   12
to other peer executives and their beneficiaries at any time during the 120-day
period immediately preceding the Effective Date or, if more favorable to the
Executive's estate and/or the Executive's beneficiaries, as in effect on the
date of the Executive's death with respect to other peer executives of the
Company and its affiliated companies and their beneficiaries.

                    (c)     Disability.  If the Executive's employment is
terminated by reason of the Executive's Disability during the Employment
Period, this Agreement shall terminate without further obligations to the
Executive, other than for payment of Accrued Obligations and the timely payment
or provision of Other Benefits.  Accrued Obligations shall be paid to the
Executive in a lump sum in cash within 30 days after the Date of Termination.
With respect to the provision of Other Benefits, the term Other Benefits as
utilized in this Section 6(c) shall include, and the Executive shall be
entitled after the Disability Effective Date to receive, disability and other
benefits at least equal to the most favorable of those generally provided by
the Company and its affiliated companies to disabled executives and/or their
families in accordance with such plans, programs, practices and policies
relating to disability, if any, as in effect generally with respect to other
peer executives and their families at any time during the 120-day period
immediately preceding the Effective Date or, if more favorable to the Executive
and/or the Executive's family, as in effect at any time thereafter generally
with respect to other peer executives of the Company and its affiliated
companies and their families.

                    (d)     Cause; Other than for Good Reason.  If the
Executive's employment shall be terminated for Cause during the Employment
Period, this Agreement shall terminate without further obligations to the
Executive other than the obligation to pay to the Executive (x) the Annual Base
Salary through the Date of Termination, (y) the amount of any compensation
previously deferred by the Executive, and (z) Other Benefits, in each case to
the extent theretofore unpaid.  If the Executive voluntarily terminates
employment during the Employment Period, excluding a termination for Good
Reason, this Agreement shall terminate without further obligations to the
Executive, other than for Accrued Obligations and the timely payment or
provision of Other Benefits.  In such case, all Accrued Obligations shall be
paid to the Executive in a lump sum in cash within 30 days of the Date of
Termination.





                                      -12-
<PAGE>   13
                    7.      Non-exclusivity of Rights.  Nothing in this
Agreement shall prevent or limit the Executive's continuing or future
participation in any plan, program, policy or practice provided by the Company
or any of its affiliated companies and for which the Executive may qualify,
nor, subject to Section 12(f), shall anything herein limit or otherwise affect
such rights as the Executive may have under any contract or agreement with the
Company or any of its affiliated companies.  Amounts which are vested benefits
or which the Executive is otherwise entitled to receive under any plan, policy,
practice or program of or any contract or agreement with the Company or any of
its affiliated companies at or subsequent to the Date of Termination shall be
payable in accordance with such plan, policy, practice or program or contract
or agreement except as explicitly modified by this Agreement.

                    8.      Full Settlement; Legal Fees.  The Company's
obligation to make the payments provided for in this Agreement and otherwise to
perform its obligations hereunder shall not be affected by any set-off,
counterclaim, recoupment, defense or other claim, right or action which the
Company may have against the Executive or others.  In no event shall the
Executive be obligated to seek other employment or take any other action by way
of mitigation of the amounts payable to the Executive under any of the
provisions of this Agreement and except as specifically provided in Section
6(a)(ii), such amounts shall not be reduced whether or not the Executive
obtains other employment.  The Company agrees to pay as incurred, to the full
extent permitted by law, all legal fees and expenses which the Executive may
reasonably incur as a result of any contest (regardless of the outcome thereof)
by the Company, the Executive or others of the validity or enforceability of,
or liability or entitlement under, any provision of this Agreement or any
guarantee of performance thereof (whether such contest is between the Company
and the Executive or between either of them and any third party, and including
as a result of any contest by the Executive about the amount of any payment
pursuant to this Agreement), plus in each case interest on any delayed payment
at 120% of the applicable Federal rate (that applies to the time period of the
delay) provided for in Section 7872(f)(2)(A) of the Internal Revenue Code of
1986, as amended (the "Code"), compounded annually.





                                      -13-
<PAGE>   14
                    9.      Certain Additional Payments by the Company.

                    (a)     Anything in this Agreement to the contrary
notwithstanding, in the event it shall be determined that any payment, award,
benefit or distribution by the Company (or any of its affiliated entities) or
by any entity which effectuates a Change of Control (or any of its affiliated
entities) to or for the benefit of the Executive (whether pursuant to the terms
of this Agreement or otherwise, but determined without regard to any additional
payments required under this Section 9) (a "Payment") would be subject to the
excise tax imposed by Section 4999 of the Code or any corresponding provisions
of state or local tax laws, or any interest or penalties are incurred by the
Executive with respect to such excise tax (such excise tax, together with any
such interest and penalties, are hereinafter collectively referred to as the
"Excise Tax"), then the Executive shall be entitled to receive an additional
payment (a "Gross-Up Payment") in an amount such that after payment by the
Executive of all taxes (including any interest or penalties imposed with
respect to such taxes), including, without limitation, any income taxes (and
any interest and penalties imposed with respect thereto) and Excise Tax imposed
upon the Gross-Up Payment, the Executive retains an amount of the Gross-Up
Payment equal to the Excise Tax imposed upon the Payments.  The payment of a
Gross-Up Payment under this Section 9(a) shall not be conditioned upon the
Executive's termination of employment.

                    (b)     Subject to the provisions of Section 9(c), all
determinations required to be made under this Section 9, including whether and
when a Gross-Up Payment is required and the amount of such Gross-Up Payment and
the assumptions to be utilized in arriving at such determination, shall be made
by Price Waterhouse LLP or such other certified public accounting firm as may
be designated by the Executive (the "Accounting Firm"), which shall provide
detailed supporting calculations both to the Company and the Executive within
15 business days of the receipt of notice from the Executive that there has
been a Payment, or such earlier time as is requested by the Company.  In the
event that the Accounting Firm is serving as accountant or auditor for the
individual, entity or group effecting the Change of Control, the Executive
shall appoint another nationally recognized accounting firm to make the
determinations required hereunder (which accounting firm shall then be referred
to as the Accounting Firm hereunder).  All fees and expenses of the Accounting
Firm shall be borne solely by the Company.  Any





                                      -14-
<PAGE>   15
Gross-Up Payment, as determined pursuant to this Section 9, shall be paid by
the Company to the Executive within 5 days after the receipt of the Accounting
Firm's determination.  Any determination by the Accounting Firm shall be
binding upon the Company and the Executive.  As a result of the uncertainty in
the application of Section 4999 of the Code at the time of the initial
determination by the Accounting Firm hereunder, it is possible that Gross-Up
Payments which will not have been made by the Company should have been made
("Underpayment"), consistent with the calculations required to be made
hereunder.  In the event that the Company exhausts its remedies pursuant to
Section 9(c) and the Executive thereafter is required to make a payment of any
Excise Tax, the Accounting Firm shall determine the amount of the Underpayment
that has occurred and any such Underpayment shall be promptly paid by the
Company to or for the benefit of the Executive.

                    (c)     The Executive shall notify the Company in writing
of any claim by the Internal Revenue Service that, if successful, would require
the payment by the Company of the Gross-Up Payment.  Such notification shall be
given as soon as practicable but no later than ten business days after the
Executive is informed in writing of such claim and shall apprise the Company of
the nature of such claim and the date on which such claim is requested to be
paid.  The Executive shall not pay such claim prior to the expiration of the
30-day period following the date on which the Executive gives such notice to
the Company (or such shorter period ending on the date that any payment of
taxes with respect to such claim is due).  If the Company notifies the
Executive in writing prior to the expiration of such period that it desires to
contest such claim, the Executive shall:

                            (i)    give the Company any information reasonably
            requested by the Company relating to such claim,

                            (ii)   take such action in connection with
            contesting such claim as the Company shall reasonably request in
            writing from time to time, including, without limitation, accepting
            legal representation with respect to such claim by an attorney
            reasonably selected by the Company,

                            (iii)  cooperate with the Company in good faith in
            order effectively to contest such claim, and





                                      -15-
<PAGE>   16
                            (iv)   permit the Company to participate in any
            proceedings relating to such claim;

provided, however, that the Company shall bear and pay directly all costs and
expenses (including additional interest and penalties) incurred in connection
with such contest and shall indemnify and hold the Executive harmless, on an
after-tax basis, for any Excise Tax or income tax (including interest and
penalties with respect thereto) imposed as a result of such representation and
payment of costs and expenses.  Without limitation on the foregoing provisions
of this Section 9(c), the Company shall control all proceedings taken in
connection with such contest and, at its sole option, may pursue or forgo any
and all administrative appeals,  proceedings, hearings and conferences with the
taxing authority in respect of such claim and may, at its sole option, either
direct the Executive to pay the tax claimed and sue for a refund or contest the
claim in any permissible manner, and the Executive agrees to prosecute such
contest to a determination before any administrative tribunal, in a court of
initial jurisdiction and in one or more appellate courts, as the Company shall
determine; provided, however, that if the Company directs the Executive to pay
such claim and sue for a refund, the Company shall advance the amount of such
payment to the Executive, on an interest-free basis and shall indemnify and
hold the Executive harmless, on an after-tax basis, from any Excise Tax or
income tax (including interest or penalties with respect thereto) imposed with
respect to such advance or with respect to any imputed income with respect to
such advance; and further provided that any extension of the statute of
limitations relating to payment of taxes for the taxable year of the Executive
with respect to which such contested amount is claimed to be due is limited
solely to such contested amount.  Furthermore, the Company's control of the
contest shall be limited to issues with respect to which a Gross-Up Payment
would be payable hereunder and the Executive shall be entitled to settle or
contest, as the case may be, any other issue raised by the Internal Revenue
Service or any other taxing authority.

                    (d)     If, after the receipt by the Executive of an amount
advanced by the Company pursuant to Section 9(c), the Executive becomes
entitled to receive any refund with respect to such claim, the Executive shall
(subject to the Company's complying with the requirements of Section 9(c))
promptly pay to the Company the amount of such refund (together with any
interest





                                      -16-
<PAGE>   17
paid or credited thereon after deducting an amount sufficient to pay applicable
federal, state and local taxes on such interest at the highest marginal rates
applicable thereto).  If, after the receipt by the Executive of an amount
advanced by the Company pursuant to Section 9(c), a determination is made that
the Executive shall not be entitled to any refund with respect to such claim
and the Company does not notify the Executive in writing of its intent to
contest such denial of refund prior to the expiration of 30 days after such
determination, then such advance shall be forgiven and shall not be required to
be repaid and the amount of such advance shall offset, to the extent thereof,
the amount of Gross-Up Payment required to be paid.

                    10.     Confidential Information.  The Executive shall hold
in a fiduciary capacity for the benefit of the Company all secret or
confidential information, knowledge or data relating to the Company or any of
its affiliated companies, and their respective businesses, which shall have
been obtained by the Executive during the Executive's employment by the Company
or any of its affiliated companies and which shall not be or become public
knowledge (other than by acts by the Executive or representatives of the
Executive in violation of this Agreement).  After termination of the
Executive's employment with the Company, the Executive shall not, without the
prior written consent of the Company or as may otherwise be required by law or
legal process, communicate or divulge any such information, knowledge or data
to anyone other than the Company and those designated by it.  In no event shall
an asserted violation of the provisions of this Section 10 constitute a basis
for deferring or withholding any amounts otherwise payable to the Executive
under this Agreement.

                    11.     Successors.  (a)  This Agreement is personal to the
Executive and without the prior written consent of the Company shall not be
assignable by the Executive otherwise than by will or the laws of descent and
distribution.  This Agreement shall inure to the benefit of and be enforceable
by the Executive's legal representatives.

                    (b)     This Agreement shall inure to the benefit of and be
binding upon the Company and its successors and assigns.

                    (c)     The Company will require any successor (whether
direct or indirect, by purchase, merger, consolidation or otherwise) to all or
substantially all of the business and/or





                                      -17-
<PAGE>   18
assets of the Company to assume expressly and agree to perform this Agreement
in the same manner and to the same extent that the Company would be required to
perform it if no such succession had taken place.  As used in this Agreement,
"Company" shall mean the Company as hereinbefore defined and any successor to
its business and/or assets as aforesaid which assumes and agrees to perform
this Agreement by operation of law, or otherwise.

                    12.     Miscellaneous.  (a)  This Agreement shall be
governed by and construed in accordance with the laws of the State of Delaware,
without reference to principles of conflict of laws.  The captions of this
Agreement are not part of the provisions hereof and shall have no force or
effect.  This Agreement may not be amended or modified otherwise than by a
written agreement executed by the parties hereto or their respective successors
and legal representatives.

                    (b)     All notices and other communications hereunder
shall be in writing and shall be given by hand delivery to the other party or
by registered or certified mail, return receipt requested, postage prepaid,
addressed as follows:

                    If to the Executive:

                    Glen A. Spence
                    13581 NW 4 Street, Apt. 201
                    Pembroke Pines, Florida  33028

                    If to the Company:

                    John Alden Financial Corporation
                    7300 Corporate Center Drive
                    Miami, FL  33126-1223


                          Attention:  General Counsel



or to such other address as either party shall have furnished to the other in
writing in accordance herewith.  Notice and communications shall be effective
when actually received by the addressee.





                                      -18-
<PAGE>   19
                    (c)     The invalidity or unenforceability of any provision
of this Agreement shall not affect the validity or enforceability of any other
provision of this Agreement.

                    (d)     The Company may withhold from any amounts payable
under this Agreement such Federal, state, local or foreign taxes as shall be
required to be withheld pursuant to any applicable law or regulation.

                    (e)     The Executive's or the Company's failure to insist
upon strict compliance with any provision hereof or any other provision of this
Agreement or the failure to assert any right the Executive or the Company may
have hereunder, including, without limitation, the right of the Executive to
terminate employment for Good Reason pursuant to Section 5(c)(i)-(v) of this
Agreement, shall not be deemed to be a waiver of such provision or right or any
other provision or right of this Agreement.

                    (f)     The Executive and the Company acknowledge that,
except as may otherwise be provided under any other written agreement between
the Executive and the Company, the employment of the Executive by the Company
is "at will" and, prior to the Effective Date, the Executive's employment may
be terminated by either the Executive or the Company at any time prior to the
Effective Date, in which case the Executive shall have no further rights under
this Agreement.  From and after the Effective Date this Agreement shall
supersede any other agreement between the parties with respect to the subject
matter hereof, including, without limitation, the right of the Executive to
participate in any severance plan of the Company or otherwise receive severance
benefits from the Company.





                                      -19-
<PAGE>   20
            IN WITNESS WHEREOF, the Executive has hereunto set the Executive's
hand and, pursuant to the authorization from its Board of Directors, the
Company has caused this Agreement to be executed in its name on its behalf, all
as of the day and year first above written.

                                   JOHN ALDEN FINANCIAL CORPORATION


                                  By:  /s/ SCOTT L. STANTON            
                                      ------------------------------------
                                  
                                  Title:  Senior Vice President and Chief
                                         ---------------------------------
                                          Financial Officer
                                         ---------------------------------

                                    /s/ GLEN A. SPENCE
                                   ---------------------------------------
                                                  Glen A. Spence





                                      -20-

<PAGE>   1
                                                                   EXHIBIT 10.66




                               CHANGE OF CONTROL
                              EMPLOYMENT AGREEMENT


                AGREEMENT by and between John Alden Financial Corporation, a 
Delaware corporation (the "Company") and Scott L. Stanton (the "Executive"),
dated as of the 5th day of November, 1997.

                The Board of Directors of the Company (the "Board"), has 
determined that it is in the best interests of the Company and its shareholders
to assure that the Company will have the continued dedication of the Executive,
notwithstanding the possibility, threat or occurrence of a Change of Control
(as defined below) of the Company.  The Board believes it is imperative to
diminish the inevitable distraction of the Executive by virtue of the personal
uncertainties and risks created by a pending or threatened Change of Control
and to encourage the Executive's full attention and dedication to the Company
currently and in the event of any threatened or pending Change of Control, and
to provide the Executive with compensation and benefits arrangements upon a
Change of Control which ensure that the compensation and benefits expectations
of the Executive will be satisfied and which are competitive with those of
other corporations.  Therefore, in order to accomplish these objectives, the
Board has caused the Company to enter into this Agreement. 

                NOW, THEREFORE, IT IS HEREBY AGREED AS FOLLOWS:

                1.    Certain Definitions.  (a)  The "Effective Date" shall 
mean the first date during the Change of Control Period (as defined in Section
1(b)) on which a Change of Control (as defined in Section 2) occurs.  Anything
in this Agreement to the contrary notwithstanding, if a Change of Control
occurs and if the Executive's employment with the Company is terminated prior
to the date on which the Change of Control occurs, and if it is reasonably
demonstrated by the Executive that such termination of employment (i) was at
the request of a third party who has taken steps reasonably calculated to
effect a Change of Control or (ii) otherwise arose in connection with or
anticipation of a Change of Control, then for all purposes of this Agreement
the "Effective Date" shall mean the date immediately prior to the date of such
termination of employment.
<PAGE>   2
                (b)   The "Change of Control Period" shall mean the period 
commencing on the date hereof and ending on the third anniversary of the date
hereof; provided, however, that commencing on the date one year after the date
hereof, and on each annual anniversary of such date (such date and each annual
anniversary thereof shall be hereinafter referred to as the "Renewal Date"),
unless previously terminated, the Change of Control Period shall be
automatically extended so as to terminate 3 years from such Renewal Date,
unless at least 60 days prior to the Renewal Date the Company shall give notice
to the Executive that the Change of Control Period shall not be so extended.

                2.    Change of Control.  For the purpose of this Agreement, a 
"Change of Control" shall mean:

                (a)  The acquisition by any individual, entity or group 
            (within the meaning of Section 13(d)(3) or 14(d)(2) of the
            Securities Exchange Act of 1934, as amended (the "Exchange Act"))
            (a "Person") of beneficial ownership (within the meaning of Rule
            13d-3 promulgated under the Exchange Act) of 20% or more of either
            (i) the then outstanding shares of common stock of the Company (the
            "Outstanding Company Common Stock") or (ii) the combined voting
            power of the then outstanding voting securities of the Company
            entitled to vote generally in the election of directors (the
            "Outstanding Company Voting Securities"); provided, however, that
            for purposes of this subsection (a), the following acquisitions
            shall not constitute a Change of Control:  (i) any acquisition
            directly from the Company, (ii) any acquisition by the Company,
            (iii) any acquisition by any employee benefit plan (or related
            trust) sponsored or maintained by the Company or any corporation
            controlled by the Company or (iv) any acquisition pursuant to a
            transaction which complies with clauses (i), (ii) and (iii) of
            subsection (c) of this Section 2; or

                (b)  Individuals who, as of the date hereof, constitute the 
            Board (the "Incumbent Board") cease for any reason to constitute 
            at least a majority of the Board; provided, however, that any 
            individual becoming a director subsequent to the date hereof whose 
            election, or nomination for election by the Company's shareholders, 
            was approved by a vote of at least a majority of the directors 
            then comprising the Incumbent Board shall be considered as though 
            such individual were a member of the Incumbent Board, but 
            excluding, for this purpose, any such individual whose initial
            assumption of office occurs as a result of an actual or threatened
            election contest with respect to the election or removal of
            directors or other actual or threatened solicitation of proxies or
            consents by or on behalf of a Person other than the Board; or

                (c)  Consummation by the Company of a reorganization, merger 
            or consolidation or sale or other disposition of all or 
            substantially all of the assets of the Company or the acquisition
            of assets of another entity (a "Business Combination"), in each
            case, unless,





                                     -2-
<PAGE>   3
            following such Business Combination, (i) all or substantially all
            of the individuals and entities who were the beneficial owners,
            respectively, of the Outstanding Company Common Stock and
            Outstanding Company Voting Securities immediately prior to such
            Business Combination beneficially own, directly or indirectly, more
            than 60% of, respectively, the then outstanding shares of common
            stock and the combined voting power of the then outstanding voting
            securities entitled to vote generally in the election of directors,
            as the case may be, of the corporation resulting from such Business
            Combination (including, without limitation, a corporation which as
            a result of such transaction owns the Company or all or
            substantially all of the Company's assets either directly or
            through one or more subsidiaries) in substantially the same
            proportions as their ownership, immediately prior to such Business
            Combination of the Outstanding Company Common Stock and Outstanding
            Company Voting Securities, as the case may be, (ii) no Person
            (excluding any employee benefit plan (or related trust) of the
            Company or such corporation resulting from such Business
            Combination) beneficially owns, directly or indirectly, 20% or more
            of, respectively, the then outstanding shares of common stock of
            the corporation resulting from such Business Combination or the
            combined voting power of the then outstanding voting securities of
            such corporation except to the extent that such ownership existed
            prior to the Business Combination and (iii) at least a majority of
            the members of the board of directors of the corporation resulting
            from such Business Combination were members of the Incumbent Board
            at the time of the execution of the initial agreement, or of the
            action of the Board, providing for such Business Combination; or

                (d)  Approval by the shareholders of the Company of a complete 
            liquidation or dissolution of the Company.

                3.   Employment Period.  The Company hereby agrees to continue 
the Executive in its employ, and the Executive hereby agrees to remain in the
employ of the Company subject to the terms and conditions of this Agreement,
for the period  commencing on the Effective Date and ending on the third
anniversary of such date (the "Employment Period").

                4.   Terms of Employment.  (a)  Position and Duties.  (i)  
During the Employment Period, (A) the Executive's position (including status,
offices, titles and reporting requirements), authority, duties and
responsibilities shall be at least commensurate in all material respects with
the most significant of those held, exercised and assigned to the Executive at
any time during the 120-day period immediately preceding the Effective Date and
(B) the Executive's services shall be performed at the location where the
Executive was employed immediately preceding the Effective Date or any office
or location less than 35 miles from such location.





                                      -3-
<PAGE>   4
                     (ii)    During the Employment Period, and excluding  any 
periods of vacation and sick leave to which the Executive is entitled, the
Executive agrees to devote reasonable attention and time during normal business
hours to the business and affairs of the Company and, to the extent necessary
to discharge the responsibilities assigned to the Executive hereunder, to use
the Executive's reasonable best efforts to perform faithfully and efficiently
such responsibilities.  During the Employment Period it shall not be a
violation of this Agreement for the Executive to (A) serve on corporate, civic
or charitable boards or committees, (B) deliver lectures, fulfill speaking
engagements or teach at educational institutions and (C) manage personal
investments, so long as such activities do not significantly interfere with the
performance of the Executive's responsibilities as an employee of the Company
in accordance with this Agreement.  It is expressly understood and agreed that
to the extent that any such activities have been conducted by the Executive
prior to the Effective Date, the continued conduct of such activities (or the
conduct of activities similar in nature and scope thereto) subsequent to the
Effective Date shall not thereafter be deemed to interfere with the performance
of the Executive's responsibilities to the Company.

                (b)  Compensation.  (i)  Base Salary.  During the Employment 
Period, the Executive shall receive an annual base salary ("Annual Base
Salary"), which shall be paid at a monthly rate, at least equal to 12 times the
highest monthly base salary paid or payable, including any base salary which
has been earned but deferred, to the Executive by the Company and its
affiliated companies in respect of the twelve-month period immediately
preceding the month in which the Effective Date occurs.  During the Employment
Period, the Annual Base Salary shall be reviewed within 12 months after the
last salary increase awarded to the Executive prior to the Effective Date and
thereafter at least annually.  Any increase in Annual Base Salary shall not
serve to limit or reduce any other obligation to the Executive under this
Agreement.  Annual Base Salary shall not be reduced after any such increase and
the term Annual Base Salary as utilized in this Agreement shall refer to Annual
Base Salary as so increased.  As used in this Agreement, the term "affiliated
companies" shall include any company controlled by, controlling or under common
control with the Company.





                                      -4-
<PAGE>   5
                     (ii)    Annual Bonus.  In addition to Annual Base Salary, 
the Executive shall be awarded, for each fiscal year ending during the
Employment Period, an annual bonus (the "Annual Bonus") in cash at least equal
to the Executive's target annual bonus under the Company's Short-Term Incentive
Compensation Plan for 1997 ("1997 Target Bonus") or, if higher, the Executive's
greatest target annual bonus in any subsequent year prior to the Effective
Date.  Each such Annual Bonus shall be paid no later than the end of the third
month of the fiscal year next following the fiscal year for which the Annual
Bonus is awarded, unless the Executive shall elect to defer the receipt of such
Annual Bonus.

                     (iii)   Incentive, Savings and Retirement Plans.  During 
the Employment Period, the Executive shall be entitled to participate in all
incentive, savings and retirement plans, practices, policies and programs
applicable generally to other peer executives of the Company and its affiliated
companies, but in no event shall such plans, practices, policies and programs
provide the Executive with incentive opportunities (measured with respect to
both regular and special incentive opportunities, to the extent, if any, that
such distinction is applicable), savings opportunities and retirement benefit
opportunities, in each case, less favorable, in the aggregate, than the most
favorable of those provided by the Company and its affiliated companies for the
Executive under such plans, practices, policies and programs as in effect at
any time during the 120-day period immediately preceding the Effective Date or
if more favorable to the Executive, those provided generally at any time after
the Effective Date to other peer executives of the Company and its affiliated
companies.

                     (iv)    Welfare Benefit Plans.  During the Employment 
Period, the Executive and/or the Executive's family, as the case may be, shall
be eligible for participation in and shall receive all benefits under welfare
benefit plans, practices, policies and programs provided by the Company and its
affiliated companies (including, without limitation, medical, prescription,
dental, disability, salary continuance, employee life, group life, accidental
death and travel accident insurance plans and programs) to the extent
applicable generally to other peer executives of the Company and its affiliated
companies, but in no event shall such plans, practices, policies and programs
provide the Executive with benefits which are less favorable, in the aggregate,
than the most favorable of such plans, practices, policies and programs in
effect for





                                      -5-
<PAGE>   6
the Executive at any time during the 120-day period immediately preceding the
Effective Date or, if more favorable to the Executive, those provided generally
at any time after the Effective Date to other peer executives of the Company
and its affiliated companies.

                     (v)     Expenses.  During the Employment Period, the 
Executive shall be entitled to receive prompt reimbursement for all reasonable
expenses incurred by the Executive in accordance with the most favorable
policies, practices and procedures of the Company and its affiliated companies
in effect for the Executive at any time during the 120-day period immediately
preceding the Effective Date or, if more favorable to the Executive, as in
effect generally at any time thereafter with respect to other peer executives
of the Company and its affiliated companies.

                     (vi)    Fringe Benefits.  During the Employment Period, 
the Executive shall be entitled to fringe benefits, including, without
limitation, tax and financial planning services, payment of club dues, and, if
applicable, use of an automobile (or an automobile allowance) and payment of
related expenses, in accordance with the most favorable plans, practices,
programs and policies of the Company and its affiliated companies in effect for
the Executive at any time during the 120-day period immediately preceding the
Effective Date or, if more favorable to the Executive, as in effect generally
at any time thereafter with respect to other peer executives of the Company and
its affiliated companies.

                     (vii)   Office and Support Staff.  During the Employment 
Period, the Executive shall be entitled to an office or offices of a size and
with furnishings and other appointments, and to exclusive personal secretarial
and other assistance, at least equal to the most favorable of the foregoing
provided to the Executive by the Company and its affiliated companies at any
time during the 120-day period immediately preceding the Effective Date or, if
more favorable to the Executive, as provided generally at any time thereafter
with respect to other peer executives of the Company and its affiliated
companies.

                     (viii)  Vacation.  During the Employment Period, the 
Executive shall be entitled to paid vacation in accordance with the most
favorable plans, policies, programs and practices of the Company and its
affiliated companies as in effect for the Executive at any time





                                      -6-
<PAGE>   7
during the 120-day period immediately preceding the Effective Date or, if more
favorable to the Executive, as in effect generally at any time thereafter with
respect to other peer executives of the Company and its affiliated companies.

                5.   Termination of Employment.  (a)  Death or Disability.  
The Executive's employment shall terminate automatically upon the Executive's
death during the Employment Period.  If the Company determines in good faith
that the Disability of the Executive has occurred during the Employment Period
(pursuant to the definition of Disability set forth below), it may give to the
Executive written notice in accordance with Section 12(b) of this Agreement of
its intention to terminate the Executive's employment.  In such event, the
Executive's employment with the Company shall terminate effective on the 30th
day after receipt of such notice by the Executive (the "Disability Effective
Date"), provided that, within the 30 days after such receipt, the Executive
shall not have returned to full-time performance of the Executive's duties. 
For purposes of this Agreement, "Disability" shall mean the absence of the
Executive from the Executive's duties with the Company on a full-time basis for
180 consecutive business days as a result of incapacity due to mental or
physical illness which is determined to be total and permanent by a physician
selected by the Company or its insurers  and acceptable to the Executive or the
Executive's legal representative.

                (b)  Cause.  The Company may terminate the Executive's 
employment during the Employment Period for Cause.  For purposes of this 
Agreement, "Cause" shall mean:

                        (i)     the willful and continued failure of the 
            Executive to perform substantially the Executive's duties with the 
            Company or one of its affiliates (other than any such failure 
            resulting from incapacity due to physical or mental illness), 
            after a written demand for substantial performance is delivered to 
            the Executive by the Board or the Chief Executive Officer of the 
            Company which specifically identifies the manner in which the 
            Board or Chief Executive Officer believes that the Executive has 
            not substantially performed the Executive's duties, or

                        (ii)    the willful engaging by the Executive in 
            illegal conduct or gross misconduct which is materially and 
            demonstrably injurious to the Company.

For purposes of this provision, no act or failure to act, on the part of the
Executive, shall be considered "willful" unless it is done, or omitted to be
done, by the Executive in bad faith or





                                      -7-
<PAGE>   8
without reasonable belief that the Executive's action or omission was in the
best interests of the Company.  Any act, or failure to act, based upon
authority given pursuant to a resolution duly adopted by the Board or upon the
instructions of the Chief Executive Officer or a senior officer of the Company
or based upon the advice of counsel for the Company shall be conclusively
presumed to be done, or omitted to be done, by the Executive in good faith and
in the best interests of the Company.  The cessation of employment of the
Executive shall not be deemed to be for Cause unless and until there shall have
been delivered to the Executive a copy of a resolution duly adopted by the
affirmative vote of not less than three-quarters of the entire membership of
the Board at a meeting of the Board called and held for such purpose (after
reasonable notice is provided to the Executive and the Executive is given an
opportunity, together with counsel, to be heard before the Board), finding
that, in the good faith opinion of the Board, the Executive is guilty of the
conduct described in subparagraph (i) or (ii) above, and specifying the
particulars thereof in detail.

                (c)  Good Reason.  The Executive's employment may be 
terminated by the Executive for Good Reason.  For purposes of this Agreement, 
"Good Reason" shall mean:

                        (i)     the assignment to the Executive of any 
            duties inconsistent in any respect with the Executive's position 
            (including status, offices, titles and reporting requirements), 
            authority, duties or responsibilities as contemplated by Section 
            4(a) of this Agreement, or any other action by the Company which 
            results in a diminution in such position, authority, duties or 
            responsibilities, excluding for this purpose an isolated, 
            insubstantial and inadvertent action not taken in bad faith and 
            which is remedied by the Company promptly after receipt of notice 
            thereof given by the Executive;

                        (ii)    any failure by the Company comply with any of 
            the provisions of Section 4(b) of this Agreement, other than an 
            isolated, insubstantial and inadvertent failure not occurring in 
            bad faith and which is remedied by the Company promptly after 
            receipt of notice thereof given by the Executive;

                        (iii)   the Company's requiring the Executive to be 
            based at any office or location other than as provided in Section 
            4(a)(i)(B) hereof or the Company's requiring the Executive to 
            travel on Company business to a substantially greater extent than 
            required immediately prior to the Effective Date;

                        (iv)    any purported termination by the Company of 
            the Executive's employment otherwise than as expressly  permitted 
            by this Agreement; or





                                      -8-
<PAGE>   9
                        (v)     any failure by the Company to comply with and 
            satisfy Section 11(c) of this Agreement.

For purposes of this Section 5(c), any good faith determination of "Good
Reason" made by the Executive shall be conclusive.  Anything in this Agreement
to the contrary notwithstanding, a termination by the Executive for any reason
during the 30-day period immediately following the first anniversary of the
Effective Date shall be deemed to be a termination for Good Reason for all
purposes of this Agreement.

                (d)  Notice of Termination.  Any termination by the Company 
for Cause, or by the Executive for Good Reason, shall be communicated by Notice
of Termination to the other party hereto given in accordance with Section 12(b)
of this Agreement.  Such Notice of Termination for Cause shall be given within
90 days following the Company's "actual" knowledge of any event constituting
Cause, and such Notice of Termination for Good Reason shall be given within 180
days following the Executive's "actual" knowledge of an event constituting Good
Reason.  For purposes of this Agreement, a "Notice of Termination" means a
written notice which (i) indicates the specific termination provision in this
Agreement relied upon, (ii) to the extent applicable, sets forth in reasonable
detail the facts and circumstances claimed to provide a basis for termination
of the Executive's employment under the provision so indicated and (iii) if the
Date of Termination (as defined below) is other than the date of receipt of
such notice, specifies the termination date (which date shall be not more than
thirty days after the giving of such notice).  The failure by the Executive or
the Company to set forth in the Notice of Termination any fact or circumstance
which contributes to a showing of Good Reason or Cause shall not waive any
right of the Executive or the Company, respectively, hereunder or preclude the
Executive or the Company, respectively, from asserting such fact or
circumstance in enforcing the Executive's or the Company's rights hereunder.

                (e)  Date of Termination.  "Date of Termination" means (i) if 
the Executive's employment is terminated by the Company for Cause, or by the 
Executive for Good Reason, the date of receipt of the Notice of Termination or 
any later date specified therein, as the case may be, (ii) if the Executive's 
employment is terminated by the Company other than for Cause or Disability, 
the date on which the Company notifies the Executive of such termination and 
(iii) if





                                      -9-
<PAGE>   10

the Executive's employment is terminated by reason of death or Disability, the
date of death of the Executive or the Disability Effective Date, as the case
may be.

                6.   Obligations of the Company upon Termination.  (a) Good 
Reason; Other Than for Cause, Death or Disability.  If, during the Employment 
Period, the Company shall terminate the Executive's employment other than for 
Cause or Disability or the Executive shall terminate employment for Good 
Reason:

                        (i)     the Company shall pay to the Executive in a
         lump sum in cash within 30 days after the Date of Termination the
         aggregate of the following amounts:

                                A.   the sum of (1) the Executive's Annual
                Base Salary through the Date of Termination to the extent not
                theretofore paid, (2) the product of (x) the greater of (a)
                the 1997 Target Bonus and (b) the Executive's highest target
                annual bonus for any fiscal year that begins both subsequent
                to 1997 and within 3 years prior to the Date of Termination
                (such greater amount, the "Highest Target Bonus") and (y) a
                fraction, the numerator of which is the number of days in the
                current fiscal year through the Date of Termination, and the
                denominator of which is 365 and (3) any compensation
                previously deferred by the Executive (together with any
                accrued interest or earnings thereon) and any accrued vacation
                pay, in each case to the extent not theretofore paid (the sum
                of the amounts described in clauses (1), (2), and (3) shall be
                hereinafter referred to as the "Accrued Obligations"); and

                                B.   the amount equal to the product of (1) 3
                and (2) the sum of (x) the Executive's Annual Base Salary and
                (y) the Highest Target Bonus; and
                
                                C.   an amount equal to the difference between 
                (a) the aggregate benefit under the Company's qualified 
                defined benefit retirement plans (collectively, the 
                "Retirement Plan") and any excess or supplemental defined
                benefit retirement plans in which the Executive participates
                (collectively, the "SERP") which the Executive would have
                accrued (whether or not vested) if the Executive's employment
                had continued for 3 years after the Date of Termination (based
                on the assumption that the Executive's compensation in each of
                the 3 years following such termination would have been that
                required by Section 4(b)(i) and Section 4(b)(ii)) and (b) the
                actual vested benefit, if any, of the Executive under the
                Retirement Plan and the SERP, determined as of the Date of
                Termination (with the foregoing amounts to be computed on an
                actuarial present value basis using actuarial assumptions no
                less favorable to the Executive than the most favorable of
                those in effect for purposes of computing benefit entitlements
                under the Retirement Plan and the SERP at any time from the
                day before the Effective Date) through the Date of
                Termination;





                                      -10-
<PAGE>   11
                        (ii)    for 3 years after the Executive's Date of 
         Termination, or such longer period as may be provided by the terms of 
         the appropriate plan, program, practice or policy, the Company shall 
         continue benefits to the Executive and/or the Executive's family at 
         least equal to those which would have been provided to them in 
         accordance with the plans, programs, practices and policies described 
         in Section 4(b)(iv) of this Agreement if the Executive's employment 
         had not been terminated or, if more favorable to the Executive, as in 
         effect generally at any time thereafter with respect to other peer 
         executives of the Company and its affiliated companies and their 
         families, provided, however, that if the Executive becomes reemployed 
         with another employer and is eligible to receive medical or other 
         welfare benefits under another employer-provided plan, the medical 
         and other welfare benefits described herein shall be secondary to 
         those provided under such other plan during such applicable period of 
         eligibility, and for purposes of determining eligibility (but not the 
         time of commencement of benefits) of the Executive for retiree 
         benefits pursuant to such plans, practices, programs and policies, 
         the Executive shall be considered to have remained employed until 3 
         years after the Date of Termination and to
         have retired on the last day of such period;

                        (iii)   the Company shall, at its sole expense as 
         incurred, provide the Executive with outplacement services the scope 
         and provider of which shall be selected by the Executive in the 
         Executive's sole discretion; provided, however, that the Company 
         shall not be obligated to provide such services for a period of more 
         than one year after the Date of Termination or at an aggregate cost 
         in excess of $20,000; and

                        (iv)    to the extent not theretofore paid or provided, 
         the Company shall timely pay or provide to the Executive any other 
         amounts or benefits required to be paid or provided or which the 
         Executive is eligible to receive under any plan, program, policy or 
         practice or contract or agreement of the Company and its affiliated 
         companies (such other amounts and benefits shall be hereinafter 
         referred to as the "Other Benefits").
 
                (b)     Death.  If the Executive's employment is terminated by 
reason of the Executive's death during the Employment Period, this Agreement
shall terminate without further obligations to the Executive's legal
representatives under this Agreement, other than for payment of Accrued
Obligations and the timely payment or provision of Other Benefits.  Accrued
Obligations shall be paid to the Executive's estate or beneficiary, as
applicable, in a lump sum in cash within 30 days after the Date of Termination.
With respect to the provision of Other Benefits, the term Other Benefits as
utilized in this Section 6(b) shall include, without limitation, and the
Executive's estate and/or beneficiaries shall be entitled to receive, benefits
at least equal to the most favorable benefits provided by the Company and
affiliated companies to the estates and beneficiaries of peer executives of the
Company and such affiliated companies under such plans, programs, practices and
policies relating to death benefits, if any, as in effect with respect





                                      -11-
<PAGE>   12
to other peer executives and their beneficiaries at any time during the 120-day
period immediately preceding the Effective Date or, if more favorable to the
Executive's estate and/or the Executive's beneficiaries, as in effect on the
date of the Executive's death with respect to other peer executives of the
Company and its affiliated companies and their beneficiaries.

                (c)     Disability.  If the Executive's employment is
terminated by reason of the Executive's Disability during the Employment
Period, this Agreement shall terminate without further obligations to the
Executive, other than for payment of Accrued Obligations and the timely payment
or provision of Other Benefits.  Accrued Obligations shall be paid to the
Executive in a lump sum in cash within 30 days after the Date of Termination.
With respect to the provision of Other Benefits, the term Other Benefits as
utilized in this Section 6(c) shall include, and the Executive shall be
entitled after the Disability Effective Date to receive, disability and other
benefits at least equal to the most favorable of those generally provided by
the Company and its affiliated companies to disabled executives and/or their
families in accordance with such plans, programs, practices and policies
relating to disability, if any, as in effect generally with respect to other
peer executives and their families at any time during the 120-day period
immediately preceding the Effective Date or, if more favorable to the Executive
and/or the Executive's family, as in effect at any time thereafter generally
with respect to other peer executives of the Company and its affiliated
companies and their families.

                (d)     Cause; Other than for Good Reason.  If the Executive's 
employment shall be terminated for Cause during the Employment Period, this
Agreement shall terminate without further obligations to the Executive other
than the obligation to pay to the Executive (x) the Annual Base Salary through
the Date of Termination, (y) the amount of any compensation previously deferred
by the Executive, and (z) Other Benefits, in each case to the extent
theretofore unpaid.  If the Executive voluntarily terminates employment during
the Employment Period, excluding a termination for Good Reason, this Agreement
shall terminate without further obligations to the Executive, other than for
Accrued Obligations and the timely payment or provision of Other Benefits.  In
such case, all Accrued Obligations shall be paid to the Executive in a lump sum
in cash within 30 days of the Date of Termination.





                                      -12-
<PAGE>   13
                7.      Non-exclusivity of Rights.  Nothing in this Agreement 
shall prevent or limit the Executive's continuing or future participation in
any plan, program, policy or practice provided by the Company or any of its
affiliated companies and for which the Executive may qualify, nor, subject to
Section 12(f), shall anything herein limit or otherwise affect such rights as
the Executive may have under any contract or agreement with the Company or any
of its affiliated companies.  Amounts which are vested benefits or which the
Executive is otherwise entitled to receive under any plan, policy, practice or
program of or any contract or agreement with the Company or any of its
affiliated companies at or subsequent to the Date of Termination shall be
payable in accordance with such plan, policy, practice or program or contract
or agreement except as explicitly modified by this Agreement.

                8.      Full Settlement; Legal Fees.  The Company's obligation 
to make the payments provided for in this Agreement and otherwise to perform
its obligations hereunder shall not be affected by any set-off, counterclaim,
recoupment, defense or other claim, right or action which the Company may have
against the Executive or others.  In no event shall the Executive be obligated
to seek other employment or take any other action by way of mitigation of the
amounts payable to the Executive under any of the provisions of this Agreement
and except as specifically provided in Section 6(a)(ii), such amounts shall not
be reduced whether or not the Executive obtains other employment.  The Company
agrees to pay as incurred, to the full extent permitted by law, all legal fees
and expenses which the Executive may reasonably incur as a result of any
contest (regardless of the outcome thereof) by the Company, the Executive or
others of the validity or enforceability of, or liability or entitlement under,
any provision of this Agreement or any guarantee of performance thereof
(whether such contest is between the Company and the Executive or between
either of them and any third party, and including as a result of any contest by
the Executive about the amount of any payment pursuant to this Agreement), plus
in each case interest on any delayed payment at 120% of the applicable Federal
rate (that applies to the time period of the delay) provided for in Section
7872(f)(2)(A) of the Internal Revenue Code of 1986, as amended (the "Code"),
compounded annually.





                                      -13-
<PAGE>   14
                9.      Certain Additional Payments by the Company.

                (a)     Anything in this Agreement to the contrary 
notwithstanding, in the event it shall be determined that any payment, award,
benefit or distribution by the Company (or any of its affiliated entities) or
by any entity which effectuates a Change of Control (or any of its affiliated
entities) to or for the benefit of the Executive (whether pursuant to the terms
of this Agreement or otherwise, but determined without regard to any additional
payments required under this Section 9) (a "Payment") would be subject to the
excise tax imposed by Section 4999 of the Code or any corresponding provisions
of state or local tax laws, or any interest or penalties are incurred by the
Executive with respect to such excise tax (such excise tax, together with any
such interest and penalties, are hereinafter collectively referred to as the
"Excise Tax"), then the Executive shall be entitled to receive an additional
payment (a "Gross-Up Payment") in an amount such that after payment by the
Executive of all taxes (including any interest or penalties imposed with
respect to such taxes), including, without limitation, any income taxes (and
any interest and penalties imposed with respect thereto) and Excise Tax imposed
upon the Gross-Up Payment, the Executive retains an amount of the Gross-Up
Payment equal to the Excise Tax imposed upon the Payments.  The payment of a
Gross-Up Payment under this Section 9(a) shall not be conditioned upon the
Executive's termination of employment.

                (b)     Subject to the provisions of Section 9(c), all 
determinations required to be made under this Section 9, including whether and
when a Gross-Up Payment is required and the amount of such Gross-Up Payment and
the assumptions to be utilized in arriving at such determination, shall be made
by Price Waterhouse LLP or such other certified public accounting firm as may
be designated by the Executive (the "Accounting Firm"), which shall provide
detailed supporting calculations both to the Company and the Executive within
15 business days of the receipt of notice from the Executive that there has
been a Payment, or such earlier time as is requested by the Company.  In the
event that the Accounting Firm is serving as accountant or auditor for the
individual, entity or group effecting the Change of Control, the Executive
shall appoint another nationally recognized accounting firm to make the
determinations required hereunder (which accounting firm shall then be referred
to as the Accounting Firm hereunder).  All fees and expenses of the Accounting
Firm shall be borne solely by the Company.  Any





                                      -14-
<PAGE>   15
Gross-Up Payment, as determined pursuant to this Section 9, shall be paid by
the Company to the Executive within 5 days after the receipt of the Accounting
Firm's determination.  Any determination by the Accounting Firm shall be
binding upon the Company and the Executive.  As a result of the uncertainty in
the application of Section 4999 of the Code at the time of the initial
determination by the Accounting Firm hereunder, it is possible that Gross-Up
Payments which will not have been made by the Company should have been made
("Underpayment"), consistent with the calculations required to be made
hereunder.  In the event that the Company exhausts its remedies pursuant to
Section 9(c) and the Executive thereafter is required to make a payment of any
Excise Tax, the Accounting Firm shall determine the amount of the Underpayment
that has occurred and any such Underpayment shall be promptly paid by the
Company to or for the benefit of the Executive.

                (c)     The Executive shall notify the Company in
writing of any claim by the Internal Revenue Service that, if successful, would
require the payment by the Company of the Gross-Up Payment.  Such notification
shall be given as soon as practicable but no later than ten business days after
the Executive is informed in writing of such claim and shall apprise the
Company of the nature of such claim and the date on which such claim is
requested to be paid.  The Executive shall not pay such claim prior to the
expiration of the 30-day period following the date on which the Executive gives
such notice to the Company (or such shorter period ending on the date that any
payment of taxes with respect to such claim is due).  If the Company notifies
the Executive in writing prior to the expiration of such period that it desires
to contest such claim, the Executive shall:

                        (i)     give the Company any information reasonably 
         requested by the Company relating to such claim,

                        (ii)    take such action in connection with contesting 
         such claim as the Company shall reasonably request in writing from 
         time to time, including, without limitation, accepting legal 
         representation with respect to such claim by an attorney reasonably 
         selected by the Company,

                        (iii)   cooperate with the Company in good faith in 
         order effectively to contest such claim, and





                                      -15-
<PAGE>   16
                        (iv)     permit the Company to participate in any 
         proceedings relating to such claim;

provided, however, that the Company shall bear and pay directly all costs and
expenses (including additional interest and penalties) incurred in connection
with such contest and shall indemnify and hold the Executive harmless, on an
after-tax basis, for any Excise Tax or income tax (including interest and
penalties with respect thereto) imposed as a result of such representation and
payment of costs and expenses.  Without limitation on the foregoing provisions
of this Section 9(c), the Company shall control all proceedings taken in
connection with such contest and, at its sole option, may pursue or forgo any
and all administrative appeals,  proceedings, hearings and conferences with the
taxing authority in respect of such claim and may, at its sole option, either
direct the Executive to pay the tax claimed and sue for a refund or contest the
claim in any permissible manner, and the Executive agrees to prosecute such
contest to a determination before any administrative tribunal, in a court of
initial jurisdiction and in one or more appellate courts, as the Company shall
determine; provided, however, that if the Company directs the Executive to pay
such claim and sue for a refund, the Company shall advance the amount of such
payment to the Executive, on an interest-free basis and shall indemnify and
hold the Executive harmless, on an after-tax basis, from any Excise Tax or
income tax (including interest or penalties with respect thereto) imposed with
respect to such advance or with respect to any imputed income with respect to
such advance; and further provided that any extension of the statute of
limitations relating to payment of taxes for the taxable year of the Executive
with respect to which such contested amount is claimed to be due is limited
solely to such contested amount.  Furthermore, the Company's control of the
contest shall be limited to issues with respect to which a Gross-Up Payment
would be payable hereunder and the Executive shall be entitled to settle or
contest, as the case may be, any other issue raised by the Internal Revenue
Service or any other taxing authority.

                (d)     If, after the receipt by the Executive of an amount 
advanced by the Company pursuant to Section 9(c), the Executive becomes
entitled to receive any refund with respect to such claim, the Executive shall
(subject to the Company's complying with the requirements of Section 9(c))
promptly pay to the Company the amount of such refund (together with any
interest





                                      -16-
<PAGE>   17
paid or credited thereon after deducting an amount sufficient to pay applicable
federal, state and local taxes on such interest at the highest marginal rates
applicable thereto).  If, after the receipt by the Executive of an amount
advanced by the Company pursuant to Section 9(c), a determination is made that
the Executive shall not be entitled to any refund with respect to such claim
and the Company does not notify the Executive in writing of its intent to
contest such denial of refund prior to the expiration of 30 days after such
determination, then such advance shall be forgiven and shall not be required to
be repaid and the amount of such advance shall offset, to the extent thereof,
the amount of Gross-Up Payment required to be paid.

                10.     Confidential Information.  The Executive shall hold in 
a fiduciary capacity for the benefit of the Company all secret or confidential
information, knowledge or data relating to the Company or any of its affiliated
companies, and their respective businesses, which shall have been obtained by
the Executive during the Executive's employment by the Company or any of its
affiliated companies and which shall not be or become public knowledge (other
than by acts by the Executive or representatives of the Executive in violation
of this Agreement).  After termination of the Executive's employment with the
Company, the Executive shall not, without the prior written consent of the
Company or as may otherwise be required by law or legal process, communicate or
divulge any such information, knowledge or data to anyone other than the
Company and those designated by it.  In no event shall an asserted violation of
the provisions of this Section 10 constitute a basis for deferring or
withholding any amounts otherwise payable to the Executive under this
Agreement.

                11.     Successors.  (a)  This Agreement is personal to the 
Executive and without the prior written consent of the Company shall not be
assignable by the Executive otherwise than by will or the laws of descent and
distribution.  This Agreement shall inure to the benefit of and be enforceable
by the Executive's legal representatives.

                (b)     This Agreement shall inure to the benefit of and be 
binding upon the Company and its successors and assigns.

                (c)     The Company will require any successor (whether direct 
or indirect, by purchase, merger, consolidation or otherwise) to all or 
substantially all of the business and/or





                                      -17-
<PAGE>   18
assets of the Company to assume expressly and agree to perform this Agreement
in the same manner and to the same extent that the Company would be required to
perform it if no such succession had taken place.  As used in this Agreement,
"Company" shall mean the Company as hereinbefore defined and any successor to
its business and/or assets as aforesaid which assumes and agrees to perform
this Agreement by operation of law, or otherwise.

                12.     Miscellaneous.  (a)  This Agreement shall be governed 
by and construed in accordance with the laws of the State of Delaware,
without reference to principles of conflict of laws.  The captions of this
Agreement are not part of the provisions hereof and shall have no force or
effect.  This Agreement may not be amended or modified otherwise than by a
written agreement executed by the parties hereto or their respective successors
and legal representatives.

                (b)     All notices and other communications hereunder shall 
be in writing and shall be given by hand delivery to the other party or by
registered or certified mail, return receipt requested, postage prepaid,
addressed as follows:

                If to the Executive:

                Scott L. Stanton
                1001 North Shore Drive
                Miami Beach, Florida  33141

                If to the Company:

                John Alden Financial Corporation
                7300 Corporate Center Drive
                Miami, FL  33126-1223


                          Attention:  General Counsel



or to such other address as either party shall have furnished to the other in
writing in accordance herewith.  Notice and communications shall be effective
when actually received by the addressee.





                                      -18-
<PAGE>   19
                (c)     The invalidity or unenforceability of any provision of 
this Agreement shall not affect the validity or enforceability of any other 
provision of this Agreement.

                (d)     The Company may withhold from any amounts payable 
under this Agreement such Federal, state, local or foreign taxes as shall be
required to be withheld pursuant to any applicable law or regulation.

                (e)     The Executive's or the Company's failure to insist 
upon strict compliance with any provision hereof or any other provision of this
Agreement or the failure to assert any right the Executive or the Company may
have hereunder, including, without limitation, the right of the Executive to
terminate employment for Good Reason pursuant to Section 5(c)(i)-(v) of this
Agreement, shall not be deemed to be a waiver of such provision or right or any
other provision or right of this Agreement.

                (f)     The Executive and the Company acknowledge that, except 
as may otherwise be provided under any other written agreement between the
Executive and the Company, the employment of the Executive by the Company is
"at will" and, prior to the Effective Date, the Executive's employment may be
terminated by either the Executive or the Company at any time prior to the
Effective Date, in which case the Executive shall have no further rights under
this Agreement.  From and after the Effective Date this Agreement shall
supersede any other agreement between the parties with respect to the subject
matter hereof, including, without limitation, the right of the Executive to
participate in any severance plan of the Company or otherwise receive severance
benefits from the Company.





                                      -19-
<PAGE>   20
                IN WITNESS WHEREOF, the Executive has hereunto set
the Executive's hand and, pursuant to the authorization from its Board of
Directors, the Company has caused this Agreement to be executed in its name on
its behalf, all as of the day and year first above written.

                             JOHN ALDEN FINANCIAL CORPORATION
                            
                             By: /s/ GLENDON E. JOHNSON
                                ---------------------------------
                            
                             Title: Chairman of the Board, Chief
                                   ------------------------------
                                    Executive Officer and 
                                   ------------------------------
                                    President
                                   ------------------------------
                            
                              /s/ SCOTT L. STANTON                   
                             ------------------------------------
                                        Scott L. Stanton





                                      -20-

<PAGE>   1
                                                                   EXHIBIT 10.67

                               CHANGE OF CONTROL
                              EMPLOYMENT AGREEMENT


                 AGREEMENT by and between John Alden Financial Corporation, a
Delaware corporation (the "Company") and Michael P.  Andersen (the
"Executive"), dated as of the 5th day of November, 1997.

                 The Board of Directors of the Company (the "Board"), has
determined that it is in the best interests of the Company and its shareholders
to assure that the Company will have the continued dedication of the Executive,
notwithstanding the possibility, threat or occurrence of a Change of Control
(as defined below) of the Company.  The Board believes it is imperative to
diminish the inevitable distraction of the Executive by virtue of the personal
uncertainties and risks created by a pending or threatened Change of Control
and to encourage the Executive's full attention and dedication to the Company
currently and in the event of any threatened or pending Change of Control, and
to provide the Executive with compensation and benefits arrangements upon a
Change of Control which ensure that the compensation and benefits expectations
of the Executive will be satisfied and which are competitive with those of
other corporations.  Therefore, in order to accomplish these objectives, the
Board has caused the Company to enter into this Agreement.

                 NOW, THEREFORE, IT IS HEREBY AGREED AS FOLLOWS:

                 1.       Certain Definitions.  (a)  The "Effective Date" shall
mean the first date during the Change of Control Period (as defined in Section
1(b)) on which a Change of Control (as defined in Section 2) occurs.  Anything
in this Agreement to the contrary notwithstanding, if a Change of Control
occurs and if the  Executive's employment with the Company is terminated prior
to the date on which the Change of Control occurs, and if it is reasonably
demonstrated by the Executive that such termination of employment (i) was at
the request of a third party who has taken steps reasonably calculated to
effect a Change of Control or (ii) otherwise arose in connection with or
anticipation of a Change of Control, then for all purposes of this Agreement
the "Effective Date" shall mean the date immediately prior to the date of such
termination of employment.
<PAGE>   2
                 (b)      The "Change of Control Period" shall mean the period
commencing on the date hereof and ending on the third anniversary of the date
hereof; provided, however, that commencing on the date one year after the date
hereof, and on each annual anniversary of such date (such date and each annual
anniversary thereof shall be hereinafter referred to as the "Renewal Date"),
unless previously terminated, the Change of Control Period shall be
automatically extended so as to terminate 3 years from such Renewal Date,
unless at least 60 days prior to the Renewal Date the Company shall give notice
to the Executive that the Change of Control Period shall not be so extended.

                 2.       Change of Control.  For the purpose of this 
Agreement, a "Change of Control" shall mean:

                 (a)  The acquisition by any individual, entity or group
         (within the meaning of Section 13(d)(3) or 14(d)(2) of the Securities
         Exchange Act of 1934, as amended (the "Exchange Act")) (a "Person") of
         beneficial ownership (within the meaning of Rule 13d-3 promulgated
         under the Exchange Act) of 20% or more of either (i) the then
         outstanding shares of common stock of the Company (the "Outstanding
         Company Common Stock") or (ii) the combined voting power of the then
         outstanding voting securities of the Company entitled to vote
         generally in the election of directors (the "Outstanding Company
         Voting Securities"); provided, however, that for purposes of this
         subsection (a), the following acquisitions shall not constitute a
         Change of Control:  (i) any acquisition directly from the Company,
         (ii) any acquisition by the Company, (iii) any acquisition by any
         employee benefit plan (or related trust) sponsored or maintained by
         the Company or any corporation controlled by the Company or (iv) any
         acquisition pursuant to a transaction which complies with clauses (i),
         (ii) and (iii) of subsection (c) of this Section 2; or

                 (b)  Individuals who, as of the date hereof, constitute the
         Board (the "Incumbent Board") cease for any reason to constitute at
         least a majority of the Board; provided, however, that any individual
         becoming a director subsequent to the date hereof whose election, or
         nomination for election by the Company's shareholders, was approved by
         a vote of at least a majority of the directors then comprising the
         Incumbent Board shall be considered as though such individual were a
         member of the Incumbent Board, but excluding, for this purpose, any
         such individual whose initial assumption of office occurs as a result
         of an actual or threatened election contest with respect to the
         election or removal of directors or other actual or threatened
         solicitation of proxies or consents by or on behalf of a Person other
         than the Board; or

                 (c)  Consummation by the Company of a reorganization, merger
         or consolidation or sale or other disposition of all or substantially
         all of the assets of the Company or the acquisition of assets of
         another entity (a "Business Combination"), in each case, unless,





                                      -2-
<PAGE>   3
         following such Business Combination, (i) all or substantially all of
         the individuals and entities who were the beneficial owners,
         respectively, of the Outstanding Company Common Stock and Outstanding
         Company Voting Securities immediately prior to such Business
         Combination beneficially own, directly or indirectly, more than 60%
         of, respectively, the then outstanding shares of common stock and the
         combined voting power of the then outstanding voting securities
         entitled to vote generally in the election of directors, as the case
         may be, of the corporation resulting from such Business Combination
         (including, without limitation, a corporation which as a result of
         such transaction owns the Company or all or substantially all of the
         Company's assets either directly or through one or more subsidiaries)
         in substantially the same proportions as their ownership, immediately
         prior to such Business Combination of the Outstanding Company Common
         Stock and Outstanding Company Voting Securities, as the case may be,
         (ii) no Person (excluding any employee benefit plan (or related trust)
         of the Company or such corporation resulting from such Business
         Combination) beneficially owns, directly or indirectly, 20% or more
         of, respectively, the then outstanding shares of common stock of the
         corporation resulting from such Business Combination or the combined
         voting power of the then outstanding voting securities of such
         corporation except to the extent that such ownership existed prior to
         the Business Combination and (iii) at least a majority of the members
         of the board of directors of the corporation resulting from such
         Business Combination were members of the Incumbent Board at the time
         of the execution of the initial agreement, or of the action of the
         Board, providing for such Business Combination; or

                 (d)  Approval by the shareholders of the Company of a complete
         liquidation or dissolution of the Company.


                 3.       Employment Period.  The Company hereby agrees to
continue the Executive in its employ, and the Executive hereby agrees to remain
in the employ of the Company subject to the terms and conditions of this
Agreement, for the period commencing on the Effective Date and ending on the
third anniversary of such date (the "Employment Period").

                 4.       Terms of Employment.  (a)  Position and Duties.  (i)
During the Employment Period, (A) the Executive's position (including status,
offices, titles and reporting requirements), authority, duties and
responsibilities shall be at least commensurate in all material respects with
the most significant of those held, exercised and assigned to the Executive at
any time during the 120-day period immediately preceding the Effective Date and
(B) the Executive's services shall be performed at the location where the
Executive was employed immediately preceding the Effective Date or any office
or location less than 35 miles from such location.





                                      -3-
<PAGE>   4





                          (ii)    During the Employment Period, and excluding
any periods of vacation and sick leave to which the Executive is entitled, the
Executive agrees to devote reasonable attention and time during normal business
hours to the business and affairs of the Company and, to the extent necessary
to discharge the responsibilities assigned to the Executive hereunder, to use
the Executive's reasonable best efforts to perform faithfully and efficiently
such responsibilities.  During the Employment Period it shall not be a
violation of this Agreement for the Executive to (A) serve on corporate, civic
or charitable boards or committees, (B) deliver lectures, fulfill speaking
engagements or teach at educational institutions and (C) manage personal
investments, so long as such activities do not significantly interfere with the
performance of the Executive's responsibilities as an employee of the Company
in accordance with this Agreement.  It is expressly understood and agreed that
to the extent that any such activities have been conducted by the Executive
prior to the Effective Date, the continued conduct of such activities (or the
conduct of activities similar in nature and scope thereto) subsequent to the
Effective Date shall not thereafter be deemed to interfere with the performance
of the Executive's responsibilities to the Company.

                 (b)      Compensation.  (i)  Base Salary.  During the
Employment Period, the Executive shall receive an annual base salary ("Annual
Base Salary"), which shall be paid at a monthly rate, at least equal to 12
times the highest monthly base salary paid  or payable, including any base
salary which has been earned but deferred, to the Executive by the Company and
its affiliated companies in respect of the twelve-month period immediately
preceding the month in which the Effective Date occurs.  During the Employment
Period, the Annual Base Salary shall be reviewed within 12 months after the
last salary increase awarded to the Executive prior to the Effective Date and
thereafter at least annually.  Any increase in Annual Base Salary shall not
serve to limit or reduce any other obligation to the Executive under this
Agreement.  Annual Base Salary shall not be reduced after any such increase and
the term Annual Base Salary as utilized in this Agreement shall refer to Annual
Base Salary as so increased.  As used in this Agreement, the term "affiliated
companies" shall include any company controlled by, controlling or under common
control with the Company.





                                      -4-
<PAGE>   5
                          (ii)    Annual Bonus.  In addition to Annual Base
Salary, the Executive shall be awarded, for each fiscal year ending during the
Employment Period, an annual bonus (the "Annual Bonus") in cash at least equal
to the Executive's target annual bonus under the Company's Short-Term Incentive
Compensation Plan for 1997 ("1997 Target Bonus") or, if higher, the Executive's
greatest target annual bonus in any subsequent year prior to the Effective
Date.  Each such Annual Bonus shall be paid no later than the end of the third
month of the fiscal year next following the fiscal year for which the Annual
Bonus is awarded, unless the Executive shall elect to defer the receipt of such
Annual Bonus.

                          (iii)   Incentive, Savings and Retirement Plans.
During the Employment Period, the Executive shall be entitled to participate in
all incentive, savings and retirement plans, practices, policies and programs
applicable generally to other peer executives of the Company and its affiliated
companies, but in no event shall such plans, practices, policies and programs
provide the Executive with incentive opportunities (measured with respect to
both regular and special incentive opportunities, to the extent, if any, that
such distinction is applicable), savings opportunities and retirement benefit
opportunities, in each case, less favorable, in the aggregate, than the most
favorable of  those provided by the Company and its affiliated companies for
the Executive under such plans, practices, policies and programs as in effect
at any time during the 120-day period immediately preceding the Effective Date
or if more favorable to the Executive, those provided generally at any time
after the Effective Date to other peer executives of the Company and its
affiliated companies.

                          (iv)    Welfare Benefit Plans.  During the Employment
Period, the Executive and/or the Executive's family, as the case may be, shall
be eligible for participation in and shall receive all benefits under welfare
benefit plans, practices, policies and programs provided by the Company and its
affiliated companies (including, without limitation, medical, prescription,
dental, disability, salary continuance, employee life, group life, accidental
death and travel accident insurance plans and programs) to the extent
applicable generally to other peer executives of the Company and its affiliated
companies, but in no event shall such plans, practices, policies and programs
provide the Executive with benefits which are less favorable, in the aggregate,
than the most favorable of such plans, practices, policies and programs in
effect for





                                      -5-
<PAGE>   6




the Executive at any time during the 120-day period immediately preceding the
Effective Date or, if more favorable to the Executive, those provided generally
at any time after the Effective Date to other peer executives of the Company
and its affiliated companies.

                          (v)     Expenses.  During the Employment Period, the
Executive shall be entitled to receive prompt reimbursement for all reasonable
expenses incurred by the Executive in accordance with the most favorable
policies, practices and procedures of the Company and its affiliated companies
in effect for the Executive at any time during the 120-day period immediately
preceding the Effective Date or, if more favorable to the Executive, as in
effect generally at any time thereafter with respect to other peer executives
of the Company and its affiliated companies.

                          (vi)    Fringe Benefits.  During the Employment
Period, the Executive shall be entitled to fringe benefits, including, without
limitation, tax and financial planning services, payment of club dues, and, if
applicable, use of an automobile (or an automobile allowance) and payment of
related expenses, in accordance with the most favorable plans, practices,
programs and policies of the Company and its affiliated companies in effect for
the Executive at any time during the 120-day period immediately preceding the
Effective Date or, if more favorable to the Executive, as in effect generally
at any time thereafter with respect to other peer executives of the Company and
its affiliated companies.

                          (vii)   Office and Support Staff.  During the
Employment Period, the Executive shall be entitled to an office or offices of a
size and with furnishings and other appointments, and to exclusive personal
secretarial and other assistance, at least equal to the most favorable of the
foregoing provided to the Executive by the Company and its affiliated companies
at any time during the 120-day period immediately preceding the Effective Date
or, if more favorable to the Executive, as provided generally at  any time
thereafter with respect to other peer executives of the Company and its
affiliated companies.

                          (viii)  Vacation.  During the Employment Period, the
Executive shall be entitled to paid vacation in accordance with the most
favorable plans, policies, programs and practices of the Company and its
affiliated companies as in effect for the Executive at any time





                                      -6-
<PAGE>   7
during the 120-day period immediately preceding the Effective Date or, if more
favorable to the Executive, as in effect generally at any time thereafter with
respect to other peer executives of the Company and its affiliated companies.

                 5.       Termination of Employment.  (a)  Death or Disability.
The Executive's employment shall terminate automatically upon the Executive's
death during the Employment Period.  If the Company determines in good faith
that the Disability of the Executive has occurred during the Employment Period
(pursuant to the definition of Disability set forth below), it may give to the
Executive written notice in accordance with Section 12(b) of this Agreement of
its intention to terminate the Executive's employment.  In such event, the
Executive's employment with the Company shall terminate effective on the 30th
day after receipt of such notice by the Executive (the "Disability Effective
Date"), provided that, within the 30 days after such receipt, the Executive
shall not have returned to full-time performance of the Executive's duties.
For purposes of this Agreement, "Disability" shall mean the absence of the
Executive from the Executive's duties with the Company on a full-time basis for
180 consecutive business days as a result of incapacity due to mental or
physical illness which is determined to be total and permanent by a physician
selected by the Company or its insurers  and acceptable to the Executive or the
Executive's legal representative.

                 (b)      Cause.  The Company may terminate the Executive's
employment during the Employment Period for Cause.  For purposes  of this
Agreement, "Cause" shall mean:

                                  (i)      the willful and continued failure of
the Executive to perform substantially the Executive's duties with the Company
or one of its affiliates (other than any such failure resulting from incapacity
due to physical or mental illness), after a written demand for substantial
performance is delivered to the Executive by the Board or the Chief Executive
Officer of the Company which specifically identifies the manner in which the
Board or Chief Executive Officer believes that the Executive has not
substantially performed the Executive's duties, or

                                  (ii)     the willful engaging by the
Executive in illegal conduct or gross misconduct which is materially and
demonstrably injurious to the Company.


For purposes of this provision, no act or failure to act, on the part of the
Executive, shall be considered "willful" unless it is done, or omitted to be
done, by the Executive in bad faith or





                                      -7-
<PAGE>   8




without reasonable belief that the Executive's action or omission was in the
best interests of the Company.  Any act, or failure to act, based upon
authority given pursuant to a resolution duly adopted by the Board or upon the
instructions of the Chief Executive Officer or a senior officer of the Company
or based upon the advice of counsel for the Company shall be conclusively
presumed to be done, or omitted to be done, by the Executive in good faith and
in the best interests of the Company.  The cessation of employment of the
Executive shall not be deemed to be for Cause unless and until there shall have
been delivered to the Executive a copy of a resolution duly adopted by the
affirmative vote of not less than three-quarters of the entire membership of
the Board at a meeting of the Board called and held for such purpose (after
reasonable notice is provided to the Executive and the Executive is given an
opportunity, together with counsel, to be heard before the Board), finding
that, in the good faith opinion of the Board, the Executive is guilty of the
conduct described in subparagraph (i) or (ii) above, and specifying the
particulars thereof in detail.

                 (c)      Good Reason.  The Executive's employment may be
terminated by the Executive for Good Reason.  For purposes of this Agreement,
"Good Reason" shall mean:

                          (i)     the assignment to the Executive of any duties
         inconsistent in any respect with the Executive's position (including
         status, offices, titles and reporting requirements), authority, duties
         or responsibilities as contemplated by Section 4(a) of this Agreement,
         or any other action by the Company which results in a diminution in
         such position, authority, duties or responsibilities, excluding for
         this purpose an isolated, insubstantial and inadvertent action not
         taken in bad faith and which is remedied by the Company promptly after
         receipt of notice thereof given by the Executive;

                          (ii)    any failure by the Company to comply with any
         of the provisions of Section 4(b) of this Agreement, other than an
         isolated, insubstantial and inadvertent failure not occurring in bad
         faith and which is remedied by the Company promptly after receipt of
         notice thereof given by the Executive;

                          (iii)   the Company's requiring the Executive to be
         based at any office or location other than as provided in Section
         4(a)(i)(B) hereof or the Company's requiring the Executive to travel
         on Company business to a substantially greater extent than required
         immediately prior to the Effective Date;

                          (iv)    any purported termination by the Company of
         the Executive's employment otherwise than as expressly permitted by
         this Agreement; or





                                      -8-
<PAGE>   9

                          (v)     any failure by the Company to comply with and
         satisfy Section 11(c) of this Agreement.

For purposes of this Section 5(c), any good faith determination of "Good
Reason" made by the Executive shall be conclusive.  Anything in this Agreement
to the contrary notwithstanding, a termination by the Executive for any reason
during the 30-day period immediately following the first anniversary of the
Effective Date shall be deemed to be a termination for Good Reason for all
purposes of this Agreement.

                 (d)      Notice of Termination.  Any termination by the
Company  for Cause, or by the Executive for Good Reason, shall be communicated
by Notice of Termination to the other party hereto given in accordance with
Section 12(b) of this Agreement.  Such Notice of Termination for Cause shall be
given within 90 days following the Company's "actual" knowledge of any event
constituting Cause, and such Notice of Termination for Good Reason shall be
given within 180 days following the Executive's "actual" knowledge of an event
constituting Good Reason.  For purposes of this Agreement, a "Notice of
Termination" means a written notice which (i) indicates the specific
termination provision in this Agreement relied upon, (ii) to the extent
applicable, sets forth in reasonable detail the facts and circumstances claimed
to provide a basis for termination of the Executive's employment under the
provision so indicated and (iii) if the Date of Termination (as defined below)
is other than the date of receipt of such notice, specifies the termination
date (which date shall be not more than thirty days after the giving of such
notice).  The failure by the Executive or the Company to set forth in the
Notice of Termination any fact or circumstance which contributes to a showing
of Good Reason or Cause shall not waive any right of the Executive or the
Company, respectively, hereunder or preclude the Executive or the Company,
respectively, from asserting such fact or circumstance in enforcing the
Executive's or the Company's rights hereunder.

                 (e)      Date of Termination.  "Date of Termination" means (i)
if the Executive's employment is terminated by the Company for Cause, or by the
Executive for Good Reason, the date of receipt of the Notice of Termination or
any later date specified therein, as the case may be, (ii) if the Executive's
employment is terminated by the Company other than for Cause or Disability, the
date on which  the Company notifies the Executive of such termination and (iii)
if





                                      -9-
<PAGE>   10




the Executive's employment is terminated by reason of death or Disability, the
date of death of the Executive or the Disability Effective Date, as the case
may be.

                 6.       Obligations of the Company upon Termination.  (a)
Good Reason; Other Than for Cause, Death or Disability.  If, during the
Employment Period, the Company shall terminate the Executive's employment other
than for Cause or Disability or the Executive shall terminate employment for
Good Reason:

                          (i)     the Company shall pay to the Executive in a
         lump sum in cash within 30 days after the Date of Termination the
         aggregate of the following amounts:

                                  A. the sum of (1) the Executive's Annual Base
                 Salary through the Date of Termination to the extent not
                 theretofore paid, (2) the product of (x) the greater of (a)
                 the 1997 Target Bonus and (b) the Executive's highest target
                 annual bonus for any fiscal year that begins both subsequent
                 to 1997 and within 3 years prior to the Date of Termination
                 (such greater amount, the "Highest Target Bonus") and (y) a
                 fraction, the numerator of which is the number of days in the
                 current fiscal year through the Date of Termination, and the
                 denominator of which is 365 and (3) any compensation
                 previously deferred by the Executive (together with any
                 accrued interest or earnings thereon) and any accrued vacation
                 pay, in each case to the extent not theretofore paid (the sum
                 of the amounts described in clauses (1), (2), and (3) shall be
                 hereinafter referred to as the "Accrued Obligations"); and

                                  B. the amount equal to the product of (1) 3
                 and (2) the sum of (x) the Executive's Annual Base Salary and
                 (y) the Highest Target Bonus; and

                                  C. an amount equal to the difference between
                 (a) the aggregate benefit under the Company's qualified
                 defined benefit retirement plans (collectively, the
                 "Retirement Plan") and any excess or supplemental defined
                 benefit retirement plans in which the Executive participates
                 (collectively, the "SERP") which the Executive would have
                 accrued (whether or not vested) if the Executive's employment
                 had continued for 3 years after the Date of Termination (based
                 on the assumption that the Executive's compensation in each of
                 the 3 years following such termination would have been that
                 required by Section 4(b)(i) and Section 4(b)(ii)) and (b) the
                 actual vested benefit, if any, of the Executive under the
                 Retirement Plan and the SERP, determined as of the Date of
                 Termination (with the foregoing amounts to be computed on an
                 actuarial present value basis using actuarial assumptions no
                 less favorable to the Executive than the most favorable of
                 those in effect for purposes of computing benefit entitlements
                 under the Retirement Plan and the SERP at any time from the
                 day before the Effective Date) through the Date of
                 Termination;





                                      -10-
<PAGE>   11
                          (ii)    for 3 years after the Executive's Date of
         Termination, or such longer period as may be provided by the terms of
         the appropriate plan, program, practice or policy, the Company shall
         continue benefits to the Executive and/or the Executive's family at
         least equal to those which would have been provided to them in
         accordance with the plans, programs, practices and policies described
         in Section 4(b)(iv) of this Agreement if the Executive's employment
         had not been terminated or, if more favorable to the Executive, as in
         effect generally at any time thereafter with respect to other peer
         executives of the Company and its affiliated companies and their
         families, provided, however, that if the Executive becomes reemployed
         with another employer and is eligible to receive medical or other
         welfare benefits under another employer-provided plan, the medical and
         other welfare benefits described herein shall be secondary to those
         provided under such other plan during such applicable period of
         eligibility, and for purposes of determining eligibility (but not the
         time of commencement of benefits) of the Executive for retiree
         benefits pursuant to such plans, practices, programs and policies, the
         Executive shall be considered to have remained employed until 3 years
         after the Date of Termination and to have retired on the last day of
         such period;

                          (iii)   the Company shall, at its sole expense as
         incurred, provide the Executive with outplacement services the scope
         and provider of which shall be selected by the Executive in the
         Executive's sole discretion; provided, however, that the Company shall
         not be obligated to provide such services for a period of more than
         one year after the Date of Termination or at an aggregate cost in
         excess of $20,000; and

                          (iv)    to the extent not theretofore paid or
         provided, the Company shall timely pay or provide to the Executive any
         other amounts or benefits required to be paid or provided or which the
         Executive is eligible to receive under any plan, program, policy or
         practice or contract or agreement of the Company and its affiliated
         companies (such other amounts and benefits shall be hereinafter
         referred to as the "Other Benefits").

                 (b)      Death.  If the Executive's employment is terminated
by reason of the Executive's death during the Employment Period, this Agreement
shall terminate without further obligations to the Executive's legal
representatives under this Agreement, other than for payment of Accrued
Obligations and the timely payment or provision of Other Benefits.  Accrued
Obligations shall be paid  to the Executive's estate or beneficiary, as
applicable, in a lump sum in cash within 30 days after the Date of Termination.
With respect to the provision of Other Benefits, the term Other Benefits as
utilized in this Section 6(b) shall include, without limitation, and the
Executive's estate and/or beneficiaries shall be entitled to receive, benefits
at least equal to the most favorable benefits provided by the Company and
affiliated companies to the estates and beneficiaries of peer executives of the
Company and such affiliated companies under such plans, programs, practices and
policies relating to death benefits, if any, as in effect with respect





                                      -11-
<PAGE>   12




to other peer executives and their beneficiaries at any time during the 120-day
period immediately preceding the Effective Date or, if more favorable to the
Executive's estate and/or the Executive's beneficiaries, as in effect on the
date of the Executive's death with respect to other peer executives of the
Company and its affiliated companies and their beneficiaries.

                 (c)      Disability.  If the Executive's employment is
terminated by reason of the Executive's Disability during the Employment
Period, this Agreement shall terminate without further obligations to the
Executive, other than for payment of Accrued Obligations and the timely payment
or provision of Other Benefits.  Accrued Obligations shall be paid to the
Executive in a lump sum in cash within 30 days after the Date of Termination.
With respect to the provision of Other Benefits, the term Other Benefits as
utilized in this Section 6(c) shall include, and the Executive shall be
entitled after the Disability Effective Date to receive, disability and other
benefits at least equal to the most favorable of those generally provided by
the Company and its affiliated companies to disabled executives and/or their
families in accordance with such plans, programs, practices and policies
relating to disability, if any, as in effect generally with respect to other
peer executives and their families at any time during the 120-day period
immediately preceding the Effective Date or, if more favorable to the Executive
and/or the Executive's family, as in effect at any time thereafter generally
with respect to other peer executives of the Company and its  affiliated
companies and their families.

                 (d)      Cause; Other than for Good Reason.  If the
Executive's employment shall be terminated for Cause during the Employment
Period, this Agreement shall terminate without further obligations to the
Executive other than the obligation to pay to the Executive (x) the Annual Base
Salary through the Date of Termination, (y) the amount of any compensation
previously deferred by the Executive, and (z) Other Benefits, in each case to
the extent theretofore unpaid.  If the Executive voluntarily terminates
employment during the Employment Period, excluding a termination for Good
Reason, this Agreement shall terminate without further obligations to the
Executive, other than for Accrued Obligations and the timely payment or
provision of Other Benefits.  In such case, all Accrued Obligations shall be
paid to the Executive in a lump sum in cash within 30 days of the Date of
Termination.





                                      -12-
<PAGE>   13
                 7.       Non-exclusivity of Rights.  Nothing in this Agreement
shall prevent or limit the Executive's continuing or future participation in
any plan, program, policy or practice provided by the Company or any of its
affiliated companies and for which the Executive may qualify, nor, subject to
Section 12(f), shall anything herein limit or otherwise affect such rights as
the Executive may have under any contract or agreement with the Company or any
of its affiliated companies.  Amounts which are vested benefits or which the
Executive is otherwise entitled to receive under any plan, policy, practice or
program of or any contract or agreement with the Company or any of its
affiliated companies at or subsequent to the Date of Termination shall be
payable in accordance with such plan, policy, practice or program or contract
or agreement except as explicitly modified by this Agreement.

                 8.       Full Settlement; Legal Fees.  The Company's
obligation to make the payments provided for in this Agreement and otherwise to
perform its obligations hereunder shall not be affected by any set-off,
counterclaim, recoupment, defense or other claim, right or action which the
Company may have against the Executive or others.  In no event shall the
Executive be obligated to seek other employment or take any other action by way
of mitigation of the amounts payable to the Executive under any of the
provisions  of this Agreement and except as specifically provided in Section
6(a)(ii), such amounts shall not be reduced whether or not the Executive
obtains other employment.  The Company agrees to pay as incurred, to the full
extent permitted by law, all legal fees and expenses which the Executive may
reasonably incur as a result of any contest (regardless of the outcome thereof)
by the Company, the Executive or others of the validity or enforceability of,
or liability or entitlement under, any provision of this Agreement or any
guarantee of performance thereof (whether such contest is between the Company
and the Executive or between either of them and any third party, and including
as a result of any contest by the Executive about the amount of any payment
pursuant to this Agreement), plus in each case interest on any delayed payment
at 120% of the applicable Federal rate (that applies to the time period of the
delay) provided for in Section 7872(f)(2)(A) of the Internal Revenue Code of
1986, as amended (the "Code"), compounded annually.





                                      -13-
<PAGE>   14





                 9.       Certain Additional Payments by the Company.

                 (a)      Anything in this Agreement to the contrary
notwithstanding, in the event it shall be determined that any payment, award,
benefit or distribution by the Company (or any of its affiliated entities) or
by any entity which effectuates a Change of Control (or any of its affiliated
entities) to or for the benefit of the Executive (whether pursuant to the terms
of this Agreement or otherwise, but determined without regard to any additional
payments required under this Section 9) (a "Payment") would be subject to the
excise tax imposed by Section 4999 of the Code or any corresponding provisions
of state or local tax laws, or any interest or penalties are incurred by the
Executive with respect to such excise tax (such excise tax, together with any
such interest and penalties, are hereinafter collectively referred to as the
"Excise Tax"), then the Executive shall be entitled to receive an additional
payment (a "Gross-Up Payment") in an amount such that after payment by the
Executive of all taxes (including any interest or penalties imposed with
respect to such taxes), including, without limitation, any income taxes  (and
any interest and penalties imposed with respect thereto) and Excise Tax imposed
upon the Gross-Up Payment, the Executive retains an amount of the Gross-Up
Payment equal to the Excise Tax imposed upon the Payments.  The payment of a
Gross-Up Payment under this Section 9(a) shall not be conditioned upon the
Executive's termination of employment.

                 (b)      Subject to the provisions of Section 9(c), all
determinations required to be made under this Section 9, including whether and
when a Gross-Up Payment is required and the amount of such Gross-Up Payment and
the assumptions to be utilized in arriving at such determination, shall be made
by Price Waterhouse LLP or such other certified public accounting firm as may
be designated by the Executive (the "Accounting Firm"), which shall provide
detailed supporting calculations both to the Company and the Executive within
15 business days of the receipt of notice from the Executive that there has
been a Payment, or such earlier time as is requested by the Company.  In the
event that the Accounting Firm is serving as accountant or auditor for the
individual, entity or group effecting the Change of Control, the Executive
shall appoint another nationally recognized accounting firm to make the
determinations required hereunder (which accounting firm shall then be referred
to as the Accounting Firm hereunder).  All fees and expenses of the Accounting
Firm shall be borne solely by the Company.  Any





                                      -14-
<PAGE>   15
Gross-Up Payment, as determined pursuant to this Section 9, shall be paid by
the Company to the Executive within 5 days after the receipt of the Accounting
Firm's determination.  Any determination by the Accounting Firm shall be
binding upon the Company and the Executive.  As a result of the uncertainty in
the application of Section 4999 of the Code at the time of the initial
determination by the Accounting Firm hereunder, it is possible that Gross-Up
Payments which will not have been made by the Company should have been made
("Underpayment"), consistent with the calculations required to be made
hereunder.  In the event that the Company exhausts its remedies pursuant to
Section 9(c) and the Executive thereafter is required to make a payment of any
Excise Tax, the Accounting Firm shall determine the amount of the Underpayment
that has occurred and any such Underpayment shall be promptly paid by the
Company to or for the benefit of the Executive.

                 (c)      The Executive shall notify the Company in writing of
any claim by the Internal Revenue Service that, if successful, would require
the payment by the Company of the Gross-Up Payment.  Such notification shall be
given as soon as practicable but no  later than ten business days after the
Executive is informed in writing of such claim and shall apprise the Company of
the nature of such claim and the date on which such claim is requested to be
paid.  The Executive shall not pay such claim prior to the expiration of the
30-day period following the date on which the Executive gives such notice to
the Company (or such shorter period ending on the date that any payment of
taxes with respect to such claim is due).  If the Company notifies the
Executive in writing prior to the expiration of such period that it desires to
contest such claim, the Executive shall:

                          (i)     give the Company any information reasonably 
         requested by the Company relating to such claim,

                          (ii)    take such action in connection with
         contesting such claim as the Company shall reasonably request in
         writing from time to time, including, without limitation, accepting
         legal representation with respect to such claim by an attorney
         reasonably selected by the Company,

                           (iii)   cooperate with the Company in good faith in
         order effectively to contest such claim, and





                                      -15-
<PAGE>   16




                          (iv)    permit the Company to participate in any
         proceedings relating to such claim;

provided, however, that the Company shall bear and pay directly all costs and
expenses (including additional interest and penalties) incurred in connection
with such contest and shall indemnify and hold the Executive harmless, on an
after-tax basis, for any Excise Tax or income tax (including interest and
penalties with respect thereto) imposed as a result of such representation and
payment of costs and expenses.  Without limitation on the foregoing provisions
of this Section 9(c), the Company shall control all proceedings taken in
connection with such contest and, at its sole option, may pursue or forgo any
and  all administrative appeals, proceedings, hearings and conferences with the
taxing authority in respect of such claim and may, at its sole option, either
direct the Executive to pay the tax claimed and sue for a refund or contest the
claim in any permissible manner, and the Executive agrees to prosecute such
contest to a determination before any administrative tribunal, in a court of
initial jurisdiction and in one or more appellate courts, as the Company shall
determine; provided, however, that if the Company directs the Executive to pay
such claim and sue for a refund, the Company shall advance the amount of such
payment to the Executive, on an interest-free basis and shall indemnify and
hold the Executive harmless, on an after-tax basis, from any Excise Tax or
income tax (including interest or penalties with respect thereto) imposed with
respect to such advance or with respect to any imputed income with respect to
such advance; and further provided that any extension of the statute of
limitations relating to payment of taxes for the taxable year of the Executive
with respect to which such contested amount is claimed to be due is limited
solely to such contested amount.  Furthermore, the Company's control of the
contest shall be limited to issues with respect to which a Gross-Up Payment
would be payable hereunder and the Executive shall be entitled to settle or
contest, as the case may be, any other issue raised by the Internal Revenue
Service or any other taxing authority.

                 (d)      If, after the receipt by the Executive of an amount
advanced by the Company pursuant to Section 9(c), the Executive  becomes
entitled to receive any refund with respect to such claim, the Executive shall
(subject to the Company's complying with the requirements of Section 9(c))
promptly pay to the Company the amount of such refund (together with any
interest





                                      -16-
<PAGE>   17
paid or credited thereon after deducting an amount sufficient to pay applicable
federal, state and local taxes on such interest at the highest marginal rates
applicable thereto).  If, after the receipt by the Executive of an amount
advanced by the Company pursuant to Section 9(c), a determination is made that
the Executive shall not be entitled to any refund with respect to such claim
and the Company does not notify the Executive in writing of its intent to
contest such denial of refund prior to the expiration of 30 days after such
determination, then such advance shall be forgiven and shall not be required to
be repaid and the amount of such advance shall offset, to the extent thereof,
the amount of Gross-Up Payment required to be paid.

                 10.      Confidential Information.  The Executive shall hold
in a fiduciary capacity for the benefit of the Company all secret or
confidential information, knowledge or data relating to the Company or any of
its affiliated companies, and their respective businesses, which shall have
been obtained by the Executive during the Executive's employment by the Company
or any of its affiliated companies and which shall not be or become public
knowledge (other than by acts by the Executive or representatives of the
Executive in violation of this Agreement).  After termination of the
Executive's employment with the Company, the Executive shall not, without the
prior written consent of the  Company or as may otherwise be required by law or
legal process, communicate or divulge any such information, knowledge or data
to anyone other than the Company and those designated by it.  In no event shall
an asserted violation of the provisions of this Section 10 constitute a basis
for deferring or withholding any amounts otherwise payable to the Executive
under this Agreement.

                 11.      Successors.  (a)  This Agreement is personal to the
Executive and without the prior written consent of the Company shall not be
assignable by the Executive otherwise than by will or the laws of descent and
distribution.  This Agreement shall inure to the benefit of and be enforceable
by the Executive's legal representatives.

                 (b)      This Agreement shall inure to the benefit of and be
binding upon the Company and its successors and assigns.





                                      -17-
<PAGE>   18





                 (c)      The Company will require any successor (whether
direct or indirect, by purchase, merger, consolidation or otherwise) to all or
substantially all of the business and/or  assets of the Company to assume
expressly and agree to perform this Agreement in the same manner and to the
same extent that the Company would be required to perform it if no such
succession had taken place.  As used in this Agreement, "Company" shall mean
the Company as hereinbefore defined and any successor to its business and/or
assets as aforesaid which assumes and agrees to perform this Agreement by
operation of law, or otherwise.

                 12.      Miscellaneous.  (a)  This Agreement shall be governed
by and construed in accordance with the laws of the State of Delaware, without
reference to principles of conflict of laws.  The captions of this Agreement
are not part of the provisions hereof and shall have no force or effect.  This
Agreement may not be amended or modified otherwise than by a written agreement
executed by the parties hereto or their respective successors and legal
representatives.

                 (b)      All notices and other communications hereunder shall
be in writing and shall be given by hand delivery to the other party or by
registered or certified mail, return receipt requested, postage prepaid,
addressed as follows:

                 If to the Executive:

                 Michael P. Andersen
                 601 Miller Road
                 Coral Gables, Florida  33134

                 If to the Company:


                 John Alden Financial Corporation
                 7300 Corporate Center Drive
                 Miami, FL  33126-1223

                          Attention:  General Counsel





                                      -18-
<PAGE>   19
or to such other address as either party shall have furnished to the other in
writing in accordance herewith.  Notice and communications shall be effective
when actually received by the addressee.

                 (c)      The invalidity or unenforceability of any provision
of this Agreement shall not affect the validity or enforceability of any other
provision of this Agreement.

                 (d)      The Company may withhold from any amounts payable
under this Agreement such Federal, state, local or foreign taxes as shall be
required to be withheld pursuant to any applicable law or regulation.

                 (e)      The Executive's or the Company's failure to insist
upon strict compliance with any provision hereof or any other provision of this
Agreement or the failure to assert any right the Executive or the Company may
have hereunder, including, without limitation, the right of the Executive to
terminate employment for Good Reason pursuant to Section 5(c)(i)-(v) of this
Agreement, shall not be deemed to be a waiver of such provision or right or any
other provision or right of this Agreement.

                 (f)      The Executive and the Company acknowledge that,
except as may otherwise be provided under any other written agreement between
the Executive and the Company, the employment of the Executive by the Company
is "at will" and, prior to the Effective Date, the Executive's employment may
be terminated by either the Executive or the Company at any time prior to the
Effective Date, in which case the Executive shall have no further rights under
this Agreement.  From and after the Effective Date this Agreement shall
supersede any other agreement between the parties with respect to the subject
matter hereof, including, without limitation, the right of the Executive to
participate in any severance plan of the Company or otherwise receive severance
benefits from the Company.





                                      -19-
<PAGE>   20





                 IN WITNESS WHEREOF, the Executive has hereunto set the
Executive's hand and, pursuant to the authorization from its Board of
Directors, the Company has caused this Agreement to be executed in its name on
its behalf, all as of the day and year first above written.

                                           JOHN ALDEN FINANCIAL CORPORATION



                                           By: /s/ SCOTT L. STANTON
                                              -----------------------------


                                           Title: Senior Vice President and
                                                 --------------------------
                                                  Chief Financial Officer
                                                 --------------------------


                                            /s/ MICHAEL P. ANDERSEN
                                           --------------------------------
                                                    Michael P. Andersen





                                      -20-

<PAGE>   1
                                                                  EXHIBIT 10.68

                              CHANGE OF CONTROL
                            EMPLOYMENT AGREEMENT

          AGREEMENT by and between John Alden Financial Corporation, a Delaware
corporation (the "Company") and Lonnie R. Wright, Jr. the "Executive"), dated
as of the 5th day of November, 1997.

          The Board of Directors of the Company (the "Board"), has determined
that it is in the best interests of the Company and its shareholders to assure
that the Company will have the continued dedication of the Executive,
notwithstanding the possibility, threat or occurrence of a Change of Control (as
defined below) of the Company. The Board believes it is imperative to diminish
the inevitable distraction of the Executive by virtue of the personal
uncertainties and risks created by a pending or threatened Change of Control and
to encourage the Executive's full attention and dedication to the Company
currently and in the event of any threatened or pending Change of Control, and
to provide the Executive with compensation and benefits arrangements upon a
Change of Control which ensure that the compensation and benefits expectations
of the Executive will be satisfied and which are competitive with those of other
corporations. Therefore, in order to accomplish these objectives, the Board has
caused the Company to enter into this Agreement.

          NOW, THEREFORE, IT IS HEREBY AGREED AS FOLLOWS:

          1. Certain Definitions. (a) The "Effective Date" shall mean the first
date during the Change of Control Period (as defined in Section 1(b)) on which a
Change of Control (as defined in Section 2) occurs. Anything in this Agreement
to the contrary notwithstanding, if a Change of Control occurs and if the
Executive's employment with the Company is terminated prior to the date on which
the Change of Control occurs, and if it is reasonably demonstrated by the
Executive that such termination of employment (i) was at the request of a third
party who has taken steps reasonably calculated to effect a Change of Control or
(ii) otherwise arose in connection with or anticipation of a Change of Control,
then for all purposes of this Agreement the "Effective Date" shall mean the date
immediately prior to the date of such termination of employment.

<PAGE>   2
          (b) The "Change of Control Period" shall mean the period commencing on
the date hereof and ending on the third anniversary of the date hereof;
provided, however, that commencing on the date one year after the date hereof,
and on each annual anniversary of such date (such date and each annual
anniversary thereof shall be hereinafter referred to as the "Renewal Date"),
unless previously terminated, the Change of Control Period shall be
automatically extended so as to terminate 3 years from such Renewal Date, unless
at least 60 days prior to the Renewal Date the Company shall give notice to the
Executive that the Change of Control Period shall not be so extended.

          2. Change of Control. For the purpose of this Agreement, a "Change of
Control" shall mean:

          (a) The acquisition by any individual, entity or group (within the
      meaning of Section 13(d)(3) or 14(d)(2) of the Securities Exchange Act of
      1934, as amended (the "Exchange Act")) (a "Person") of beneficial
      ownership (within the meaning of Rule 13d-3 promulgated under the Exchange
      Act) of 20% or more of either (i) the then outstanding shares of common
      stock of the Company (the "Outstanding Company Common Stock") or (ii) the
      combined voting power of the then outstanding voting securities of the
      Company entitled to vote generally in the election of directors (the
      "Outstanding Company Voting Securities"); provided, however, that for
      purposes of this subsection (a), the following acquisitions shall not
      constitute a Change of Control: (i) any acquisition directly from the
      Company, (ii) any acquisition by the Company, (iii) any acquisition by any
      employee benefit plan (or related trust) sponsored or maintained by the
      Company or any corporation controlled by the Company or (iv) any
      acquisition pursuant to a transaction which complies with clauses (i),
      (ii) and (iii) of subsection (c) of this Section 2; or

           (b)  Individuals who, as of the date hereof, constitute the Board
      (the "Incumbent Board") cease for any reason to constitute at least a
      majority of the Board; provided, however, that any individual becoming a
      director subsequent to the date hereof whose election, or nomination for
      election by the Company's shareholders, was approved by a vote of at
      least a majority of the directors then comprising the Incumbent Board
      shall be considered as though such individual were a member of the
      Incumbent Board, but excluding, for this purpose, any such individual
      whose initial assumption of office occurs as a result of an actual or
      threatened election contest with respect to the election or removal of
      directors or other actual or threatened solicitation of proxies or
      consents by or on behalf of a Person other than the Board; or

           (c)  Consummation by the Company of a reorganization, merger or
      consolidation or sale or other disposition of all or substantially all of
      the assets of the Company or the acquisition of assets of another entity
      (a "Business Combination"), in each case, unless, 

                                     -2-

<PAGE>   3
      following such Business Combination, (i) all or substantially all of the
      individuals and entities who were the beneficial owners, respectively, of
      the Outstanding Company Common Stock and Outstanding Company Voting
      Securities immediately prior to such Business Combination beneficially
      own, directly or indirectly, more than 60% of, respectively, the then
      outstanding shares of common stock and the combined voting power of the
      then outstanding voting securities entitled to vote generally in the
      election of directors, as the case may be, of the corporation resulting
      from such Business Combination (including, without limitation, a
      corporation which as a result of such transaction owns the Company or all
      or substantially all of the Company's assets either directly or through
      one or more subsidiaries) in substantially the same proportions as their
      ownership, immediately prior to such Business Combination of the
      Outstanding Company Common Stock and Outstanding Company Voting
      Securities, as the case may be, (ii) no Person (excluding any employee
      benefit plan (or related trust) of the Company or such corporation
      resulting from such Business Combination) beneficially owns, directly or
      indirectly, 20% or more of, respectively, the then outstanding shares of
      common stock of the corporation resulting from such Business Combination
      or the combined voting power of the then outstanding voting securities of
      such corporation except to the extent that such ownership existed prior
      to the Business Combination and (iii) at least a majority of the members
      of the board of directors of the corporation resulting from such Business
      Combination were members of the Incumbent Board at the time of the
      execution of the initial agreement, or of the action of the Board,
      providing for such Business Combination; or

           (d)  Approval by the shareholders of the Company of a complete
      liquidation or dissolution of the Company.

          3. Employment Period. The Company hereby agrees to continue the
Executive in its employ, and the Executive hereby agrees to remain in the employ
of the Company subject to the terms and conditions of this Agreement, for the
period commencing on the Effective Date and ending on the third anniversary of
such date (the "Employment Period").

          4. Terms of Employment. (a) Position and Duties. (i) During the
Employment Period, (A) the Executive's position (including status, offices,
titles and reporting requirements), authority, duties and responsibilities shall
be at least commensurate in all material respects with the most significant of
those held, exercised and assigned to the Executive at any time during the
120-day period immediately preceding the Effective Date and (B) the Executive's
services shall be performed at the location where the Executive was employed
immediately preceding the Effective Date or any office or location less than 35
miles from such location.

                                      -3-
<PAGE>   4


               (ii) During the Employment Period, and excluding any periods of
vacation and sick leave to which the Executive is entitled, the Executive agrees
to devote reasonable attention and time during normal business hours to the
business and affairs of the Company and, to the extent necessary to discharge
the responsibilities assigned to the Executive hereunder, to use the Executive's
reasonable best efforts to perform faithfully and efficiently such
responsibilities. During the Employment Period it shall not be a violation of
this Agreement for the Executive to (A) serve on corporate, civic or charitable
boards or committees, (B) deliver lectures, fulfill speaking engagements or
teach at educational institutions and (C) manage personal investments, so long
as such activities do not significantly interfere with the performance of the
Executive's responsibilities as an employee of the Company in accordance with
this Agreement. It is expressly understood and agreed that to the extent that
any such activities have been conducted by the Executive prior to the Effective
Date, the continued conduct of such activities (or the conduct of activities
similar in nature and scope thereto) subsequent to the Effective Date shall not
thereafter be deemed to interfere with the performance of the Executive's
responsibilities to the Company.

          (b) Compensation. (i) Base Salary. During the Employment Period, the
Executive shall receive an annual base salary ("Annual Base Salary"), which
shall be paid at a monthly rate, at least equal to 12 times the highest monthly
base salary paid or payable, including any base salary which has been earned but
deferred, to the Executive by the Company and its affiliated companies in
respect of the twelve-month period immediately preceding the month in which the
Effective Date occurs. During the Employment Period, the Annual Base Salary
shall be reviewed within 12 months after the last salary increase awarded to the
Executive prior to the Effective Date and thereafter at least annually. Any
increase in Annual Base Salary shall not serve to limit or reduce any other
obligation to the Executive under this Agreement. Annual Base Salary shall not
be reduced after any such increase and the term Annual Base Salary as utilized
in this Agreement shall refer to Annual Base Salary as so increased. As used in
this Agreement, the term "affiliated companies" shall include any company
controlled by, controlling or under common control with the Company.

                                      -4-
<PAGE>   5

               (ii) Annual Bonus. In addition to Annual Base Salary, the
Executive shall be awarded, for each fiscal year ending during the Employment
Period, an annual bonus (the "Annual Bonus") in cash at least equal to the
Executive's target annual bonus under the Company's Short-Term Incentive
Compensation Plan for 1997 ("1997 Target Bonus") or, if higher, the Executive's
greatest target annual bonus in any subsequent year prior to the Effective Date.
Each such Annual Bonus shall be paid no later than the end of the third month of
the fiscal year next following the fiscal year for which the Annual Bonus is
awarded, unless the Executive shall elect to defer the receipt of such Annual
Bonus.

               (iii) Incentive, Savings and Retirement Plans. During the
Employment Period, the Executive shall be entitled to participate in all
incentive, savings and retirement plans, practices, policies and programs
applicable generally to other peer executives of the Company and its affiliated
companies, but in no event shall such plans, practices, policies and programs
provide the Executive with incentive opportunities (measured with respect to
both regular and special incentive opportunities, to the extent, if any, that
such distinction is applicable), savings opportunities and retirement benefit
opportunities, in each case, less favorable, in the aggregate, than the most
favorable of those provided by the Company and its affiliated companies for the
Executive under such plans, practices, policies and programs as in effect at any
time during the 120-day period immediately preceding the Effective Date or if
more favorable to the Executive, those provided generally at any time after the
Effective Date to other peer executives of the Company and its affiliated
companies.

               (iv) Welfare Benefit Plans. During the Employment Period, the
Executive and/or the Executive's family, as the case may be, shall be eligible
for participation in and shall receive all benefits under welfare benefit plans,
practices, policies and programs provided by the Company and its affiliated
companies (including, without limitation, medical, prescription, dental,
disability, salary continuance, employee life, group life, accidental death and
travel accident insurance plans and programs) to the extent applicable generally
to other peer executives of the Company and its affiliated companies, but in no
event shall such plans, practices, policies and programs provide the Executive
with benefits which are less favorable, in the aggregate, than the most
favorable of such plans, practices, policies and programs in effect for 

                                      -5-
<PAGE>   6

the Executive at any time during the 120-day period immediately preceding the
Effective Date or, if more favorable to the Executive, those provided generally
at any time after the Effective Date to other peer executives of the Company and
its affiliated companies.

               (v) Expenses. During the Employment Period, the Executive shall
be entitled to receive prompt reimbursement for all reasonable expenses incurred
by the Executive in accordance with the most favorable policies, practices and
procedures of the Company and its affiliated companies in effect for the
Executive at any time during the 120-day period immediately preceding the
Effective Date or, if more favorable to the Executive, as in effect generally at
any time thereafter with respect to other peer executives of the Company and its
affiliated companies.

               (vi) Fringe Benefits. During the Employment Period, the Executive
shall be entitled to fringe benefits, including, without limitation, tax and
financial planning services, payment of club dues, and, if applicable, use of an
automobile (or an automobile allowance) and payment of related expenses, in
accordance with the most favorable plans, practices, programs and policies of
the Company and its affiliated companies in effect for the Executive at any time
during the 120-day period immediately preceding the Effective Date or, if more
favorable to the Executive, as in effect generally at any time thereafter with
respect to other peer executives of the Company and its affiliated companies.

               (vii) Office and Support Staff. During the Employment Period, the
Executive shall be entitled to an office or offices of a size and with
furnishings and other appointments, and to exclusive personal secretarial and
other assistance, at least equal to the most favorable of the foregoing provided
to the Executive by the Company and its affiliated companies at any time during
the 120-day period immediately preceding the Effective Date or, if more
favorable to the Executive, as provided generally at any time thereafter with
respect to other peer executives of the Company and its affiliated companies.

               (viii) Vacation. During the Employment Period, the Executive
shall be entitled to paid vacation in accordance with the most favorable plans,
policies, programs and practices of the Company and its affiliated companies as
in effect for the Executive at any time 

                                      -6-
<PAGE>   7

during the 120-day period immediately preceding the Effective Date or, if more
favorable to the Executive, as in effect generally at any time thereafter with
respect to other peer executives of the Company and its affiliated companies.

          5. Termination of Employment. (a) Death or Disability. The Executive's
employment shall terminate automatically upon the Executive's death during the
Employment Period. If the Company determines in good faith that the Disability
of the Executive has occurred during the Employment Period (pursuant to the
definition of Disability set forth below), it may give to the Executive written
notice in accordance with Section 12(b) of this Agreement of its intention to
terminate the Executive's employment. In such event, the Executive's employment
with the Company shall terminate effective on the 30th day after receipt of such
notice by the Executive (the "Disability Effective Date"), provided that, within
the 30 days after such receipt, the Executive shall not have returned to
full-time performance of the Executive's duties. For purposes of this Agreement,
"Disability" shall mean the absence of the Executive from the Executive's duties
with the Company on a full-time basis for 180 consecutive business days as a
result of incapacity due to mental or physical illness which is determined to be
total and permanent by a physician selected by the Company or its insurers and
acceptable to the Executive or the Executive's legal representative.

          (b) Cause. The Company may terminate the Executive's employment during
the Employment Period for Cause. For purposes of this Agreement, "Cause" shall
mean:

                    (i) the willful and continued failure of the Executive to
      perform substantially the Executive's duties with the Company or one of
      its affiliates (other than any such failure resulting from incapacity due
      to physical or mental illness), after a written demand for substantial
      performance is delivered to the Executive by the Board or the Chief
      Executive Officer of the Company which specifically identifies the manner
      in which the Board or Chief Executive Officer believes that the Executive
      has not substantially performed the Executive's duties, or

                    (ii) the willful engaging by the Executive in illegal
      conduct or gross misconduct which is materially and demonstrably injurious
      to the Company.

                                      -7-
<PAGE>   8

For purposes of this provision, no act or failure to act, on the part of the
Executive, shall be considered "willful" unless it is done, or omitted to be
done, by the Executive in bad faith or without reasonable belief that the
Executive's action or omission was in the best interests of the Company.  Any
act, or failure to act, based upon authority given pursuant to a resolution
duly adopted by the Board or upon the instructions of the Chief Executive
Officer or a senior officer of the Company or based upon the advice of counsel
for the Company shall be conclusively presumed to be done, or omitted to be
done, by the Executive in good faith and in the best interests of the Company.
The cessation of employment of the Executive shall not be deemed to be for
Cause unless and until there shall have been delivered to the Executive a copy
of a resolution duly adopted by the affirmative vote of not less than
three-quarters of the entire membership of the Board at a meeting of the Board
called and held for such purpose (after reasonable notice is provided to the
Executive and the Executive is given an opportunity, together with counsel, to
be heard before the Board), finding that, in the good faith opinion of the
Board, the Executive is guilty of the conduct described in subparagraph (i) or
(ii) above, and specifying the particulars thereof in detail.

          (c) Good Reason. The Executive's employment may be terminated by the
Executive for Good Reason. For purposes of this Agreement, "Good Reason" shall
mean:

                    (i) the assignment to the Executive of any duties
      inconsistent in any respect with the Executive's position (including
      status, offices, titles and reporting requirements), authority, duties or
      responsibilities as contemplated by Section 4(a) of this Agreement, or any
      other action by the Company which results in a diminution in such
      position, authority, duties or responsibilities, excluding for this
      purpose an isolated, insubstantial and inadvertent action not taken in bad
      faith and which is remedied by the Company promptly after receipt of
      notice thereof given by the Executive;

                    (ii) any failure by the Company to comply with any of the
      provisions of Section 4(b) of this Agreement, other than an isolated,
      insubstantial and inadvertent failure not occurring in bad faith and which
      is remedied by the Company promptly after receipt of notice thereof given
      by the Executive;

                    (iii) the Company's requiring the Executive to be based at
      any office or location other than as provided in Section 4(a)(i)(B) hereof
      or the Company's requiring the Executive to travel on Company business to
      a substantially greater extent than required immediately prior to the
      Effective Date;

                                      -8-
<PAGE>   9

                    (iv) any purported termination by the Company of the
      Executive's employment otherwise than as expressly permitted by this
      Agreement; or

                    (v) any failure by the Company to comply with and satisfy
      Section 11(c) of this Agreement.

For purposes of this Section 5(c), any good faith determination of "Good
Reason" made by the Executive shall be conclusive.  Anything in this Agreement
to the contrary notwithstanding, a termination by the Executive for any reason
during the 30-day period immediately following the first anniversary of the
Effective Date shall be deemed to be a termination for Good Reason for all
purposes of this Agreement.

          (d) Notice of Termination. Any termination by the Company for Cause,
or by the Executive for Good Reason, shall be communicated by Notice of
Termination to the other party hereto given in accordance with Section 12(b) of
this Agreement. Such Notice of Termination for Cause shall be given within 90
days following the Company's "actual" knowledge of any event constituting Cause,
and such Notice of Termination for Good Reason shall be given within 180 days
following the Executive's "actual" knowledge of an event constituting Good
Reason. For purposes of this Agreement, a "Notice of Termination" means a
written notice which (i) indicates the specific termination provision in this
Agreement relied upon, (ii) to the extent applicable, sets forth in reasonable
detail the facts and circumstances claimed to provide a basis for termination of
the Executive's employment under the provision so indicated and (iii) if the
Date of Termination (as defined below) is other than the date of receipt of such
notice, specifies the termination date (which date shall be not more than thirty
days after the giving of such notice). The failure by the Executive or the
Company to set forth in the Notice of Termination any fact or circumstance which
contributes to a showing of Good Reason or Cause shall not waive any right of
the Executive or the Company, respectively, hereunder or preclude the Executive
or the Company, respectively, from asserting such fact or circumstance in
enforcing the Executive's or the Company's rights hereunder.

          (e) Date of Termination. "Date of Termination" means (i) if the
Executive's employment is terminated by the Company for Cause, or by the
Executive for Good Reason, the date of receipt of the Notice of Termination or
any later date specified therein, as the case may 


                                      -9-
<PAGE>   10

be, (ii) if the Executive's employment is terminated by the Company other than
for Cause or Disability, the date on which the Company notifies the Executive of
such termination and (iii) if the Executive's employment is terminated by reason
of death or Disability, the date of death of the Executive or the Disability
Effective Date, as the case may be.

          6. Obligations of the Company upon Termination. (a) Good Reason; Other
Than for Cause, Death or Disability. If, during the Employment Period, the
Company shall terminate the Executive's employment other than for Cause or
Disability or the Executive shall terminate employment for Good Reason:

              (i)   the Company shall pay to the Executive in a lump sum in cash
      within 30 days after the Date of Termination the aggregate of the
      following amounts:

                    A. the sum of (1) the Executive's Annual Base Salary through
          the Date of Termination to the extent not theretofore paid, (2) the
          product of (x) the greater of (a) the 1997 Target Bonus and (b) the
          Executive's highest target annual bonus for any fiscal year that
          begins both subsequent to 1997 and within 3 years prior to the Date of
          Termination (such greater amount, the "Highest Target Bonus") and (y)
          a fraction, the numerator of which is the number of days in the
          current fiscal year through the Date of Termination, and the
          denominator of which is 365 and (3) any compensation previously
          deferred by the Executive (together with any accrued interest or
          earnings thereon) and any accrued vacation pay, in each case to the
          extent not theretofore paid (the sum of the amounts described in
          clauses (1), (2), and (3) shall be hereinafter referred to as the
          "Accrued Obligations"); and

                    B. the amount equal to the product of (1) 3 and (2) the sum
          of (x) the Executive's Annual Base Salary and (y) the Highest Target
          Bonus; and

                    C. an amount equal to the difference between (a) the
          aggregate benefit under the Company's qualified defined benefit
          retirement plans (collectively, the "Retirement Plan") and any excess
          or supplemental defined benefit retirement plans in which the
          Executive participates (collectively, the "SERP") which the Executive
          would have accrued (whether or not vested) if the Executive's
          employment had continued for 3 years after the Date of Termination
          (based on the assumption that the Executive's compensation in each of
          the 3 years following such termination would have been that required
          by Section 4(b)(i) and Section 4(b)(ii)) and (b) the actual vested
          benefit, if any, of the Executive under the Retirement Plan and the
          SERP, determined as of the Date of Termination (with the foregoing
          amounts to be computed on an actuarial present value basis using
          actuarial assumptions no less favorable to the Executive than the most
          fa-

                                      -10-
<PAGE>   11

          vorable of those in effect for purposes of computing benefit
          entitlements under the Retirement Plan and the SERP at any time from
          the day before the Effective Date) through the Date of Termination;

              (ii) for 3 years after the Executive's Date of Termination, or
      such longer period as may be provided by the terms of the appropriate
      plan, program, practice or policy, the Company shall continue benefits to
      the Executive and/or the Executive's family at least equal to those which
      would have been provided to them in accordance with the plans, programs,
      practices and policies described in Section 4(b)(iv) of this Agreement if
      the Executive's employment had not been terminated or, if more favorable
      to the Executive, as in effect generally at any time thereafter with
      respect to other peer executives of the Company and its affiliated
      companies and their families, provided, however, that if the Executive
      becomes reemployed with another employer and is eligible to receive
      medical or other welfare benefits under another employer-provided plan,
      the medical and other welfare benefits described herein shall be secondary
      to those provided under such other plan during such applicable period of
      eligibility, and for purposes of determining eligibility (but not the time
      of commencement of benefits) of the Executive for retiree benefits
      pursuant to such plans, practices, programs and policies, the Executive
      shall be considered to have remained employed until 3 years after the Date
      of Termination and to have retired on the last day of such period;

              (iii) the Company shall, at its sole expense as incurred, provide
      the Executive with outplacement services the scope and provider of which
      shall be selected by the Executive in the Executive's sole discretion;
      provided, however, that the Company shall not be obligated to provide such
      services for a period of more than one year after the Date of Termination
      or at an aggregate cost in excess of $20,000; and

              (iv) to the extent not theretofore paid or provided, the Company
      shall timely pay or provide to the Executive any other amounts or benefits
      required to be paid or provided or which the Executive is eligible to
      receive under any plan, program, policy or practice or contract or
      agreement of the Company and its affiliated companies (such other amounts
      and benefits shall be hereinafter referred to as the "Other Benefits").

          (b) Death. If the Executive's employment is terminated by reason of
the Executive's death during the Employment Period, this Agreement shall
terminate without further obligations to the Executive's legal representatives
under this Agreement, other than for payment of Accrued Obligations and the
timely payment or provision of Other Benefits. Accrued Obligations shall be paid
to the Executive's estate or beneficiary, as applicable, in a lump sum in cash
within 30 days after the Date of Termination. With respect to the provision of
Other Benefits, the term Other Benefits as utilized in this Section 6(b) shall
include, without limitation, and the Executive's estate and/or beneficiaries
shall be entitled to receive, benefits at least equal


                                      -11-
<PAGE>   12

to the most favorable benefits provided by the Company and affiliated companies
to the estates and beneficiaries of peer executives of the Company and such
affiliated companies under such plans, programs, practices and policies relating
to death benefits, if any, as in effect with respect to other peer executives
and their beneficiaries at any time during the 120-day period immediately
preceding the Effective Date or, if more favorable to the Executive's estate
and/or the Executive's beneficiaries, as in effect on the date of the
Executive's death with respect to other peer executives of the Company and its
affiliated companies and their beneficiaries.

          (c) Disability. If the Executive's employment is terminated by reason
of the Executive's Disability during the Employment Period, this Agreement shall
terminate without further obligations to the Executive, other than for payment
of Accrued Obligations and the timely payment or provision of Other Benefits.
Accrued Obligations shall be paid to the Executive in a lump sum in cash within
30 days after the Date of Termination. With respect to the provision of Other
Benefits, the term Other Benefits as utilized in this Section 6(c) shall
include, and the Executive shall be entitled after the Disability Effective Date
to receive, disability and other benefits at least equal to the most favorable
of those generally provided by the Company and its affiliated companies to
disabled executives and/or their families in accordance with such plans,
programs, practices and policies relating to disability, if any, as in effect
generally with respect to other peer executives and their families at any time
during the 120-day period immediately preceding the Effective Date or, if more
favorable to the Executive and/or the Executive's family, as in effect at any
time thereafter generally with respect to other peer executives of the Company
and its affiliated companies and their families.

          (d) Cause; Other than for Good Reason. If the Executive's employment
shall be terminated for Cause during the Employment Period, this Agreement shall
terminate without further obligations to the Executive other than the obligation
to pay to the Executive (x) the Annual Base Salary through the Date of
Termination, (y) the amount of any compensation previously deferred by the
Executive, and (z) Other Benefits, in each case to the extent theretofore
unpaid. If the Executive voluntarily terminates employment during the Employment
Period, excluding a termination for Good Reason, this Agreement shall terminate
without further obligations to the Executive, other than for Accrued Obligations
and the timely payment or 


                                      -12-
<PAGE>   13

provision of Other Benefits. In such case, all Accrued Obligations shall be paid
to the Executive in a lump sum in cash within 30 days of the Date of
Termination.

          7. Non-exclusivity of Rights. Nothing in this Agreement shall prevent
or limit the Executive's continuing or future participation in any plan,
program, policy or practice provided by the Company or any of its affiliated
companies and for which the Executive may qualify, nor, subject to Section
12(f), shall anything herein limit or otherwise affect such rights as the
Executive may have under any contract or agreement with the Company or any of
its affiliated companies. Amounts which are vested benefits or which the
Executive is otherwise entitled to receive under any plan, policy, practice or
program of or any contract or agreement with the Company or any of its
affiliated companies at or subsequent to the Date of Termination shall be
payable in accordance with such plan, policy, practice or program or contract or
agreement except as explicitly modified by this Agreement.

          8. Full Settlement; Legal Fees. The Company's obligation to make the
payments provided for in this Agreement and otherwise to perform its obligations
hereunder shall not be affected by any set-off, counterclaim, recoupment,
defense or other claim, right or action which the Company may have against the
Executive or others. In no event shall the Executive be obligated to seek other
employment or take any other action by way of mitigation of the amounts payable
to the Executive under any of the provisions of this Agreement and except as
specifically provided in Section 6(a)(ii), such amounts shall not be reduced
whether or not the Executive obtains other employment. The Company agrees to pay
as incurred, to the full extent permitted by law, all legal fees and expenses
which the Executive may reasonably incur as a result of any contest (regardless
of the outcome thereof) by the Company, the Executive or others of the validity
or enforceability of, or liability or entitlement under, any provision of this
Agreement or any guarantee of performance thereof (whether such contest is
between the Company and the Executive or between either of them and any third
party, and including as a result of any contest by the Executive about the
amount of any payment pursuant to this Agreement), plus in each case interest on
any delayed payment at 120% of the applicable Federal rate (that applies to the
time period of the delay) provided for in Section 7872(f)(2)(A) of the Internal
Revenue Code of 1986, as amended (the "Code"), compounded annually.

                                      -13-
<PAGE>   14

          9. Certain Additional Payments by the Company.

          (a) Anything in this Agreement to the contrary notwithstanding, in the
event it shall be determined that any payment, award, benefit or distribution by
the Company (or any of its affiliated entities) or by any entity which
effectuates a Change of Control (or any of its affiliated entities) to or for
the benefit of the Executive (whether pursuant to the terms of this Agreement or
otherwise, but determined without regard to any additional payments required
under this Section 9) (a "Payment") would be subject to the excise tax imposed
by Section 4999 of the Code or any corresponding provisions of state or local
tax laws, or any interest or penalties are incurred by the Executive with
respect to such excise tax (such excise tax, together with any such interest and
penalties, are hereinafter collectively referred to as the "Excise Tax"), then
the Executive shall be entitled to receive an additional payment (a "Gross-Up
Payment") in an amount such that after payment by the Executive of all taxes
(including any interest or penalties imposed with respect to such taxes),
including, without limitation, any income taxes (and any interest and penalties
imposed with respect thereto) and Excise Tax imposed upon the Gross-Up Payment,
the Executive retains an amount of the Gross-Up Payment equal to the Excise Tax
imposed upon the Payments. The payment of a Gross-Up Payment under this Section
9(a) shall not be conditioned upon the Executive's termination of employment.

          (b) Subject to the provisions of Section 9(c), all determinations
required to be made under this Section 9, including whether and when a Gross-Up
Payment is required and the amount of such Gross-Up Payment and the assumptions
to be utilized in arriving at such determination, shall be made by Price
Waterhouse LLP or such other certified public accounting firm as may be
designated by the Executive (the "Accounting Firm"), which shall provide
detailed supporting calculations both to the Company and the Executive within 15
business days of the receipt of notice from the Executive that there has been a
Payment, or such earlier time as is requested by the Company. In the event that
the Accounting Firm is serving as accountant or auditor for the individual,
entity or group effecting the Change of Control, the Executive shall appoint
another nationally recognized accounting firm to make the determinations
required hereunder (which accounting firm shall then be referred to as the
Accounting Firm hereunder). All fees and expenses of the Accounting Firm shall
be borne solely by the Company. Any 


                                      -14-
<PAGE>   15

Gross-Up Payment, as determined pursuant to this Section 9, shall be paid by the
Company to the Executive within 5 days after the receipt of the Accounting
Firm's determination. Any determination by the Accounting Firm shall be binding
upon the Company and the Executive. As a result of the uncertainty in the
application of Section 4999 of the Code at the time of the initial determination
by the Accounting Firm hereunder, it is possible that Gross-Up Payments which
will not have been made by the Company should have been made ("Underpayment"),
consistent with the calculations required to be made hereunder. In the event
that the Company exhausts its remedies pursuant to Section 9(c) and the
Executive thereafter is required to make a payment of any Excise Tax, the
Accounting Firm shall determine the amount of the Underpayment that has occurred
and any such Underpayment shall be promptly paid by the Company to or for the
benefit of the Executive.

          (c) The Executive shall notify the Company in writing of any claim by
the Internal Revenue Service that, if successful, would require the payment by
the Company of the Gross-Up Payment. Such notification shall be given as soon as
practicable but no later than ten business days after the Executive is informed
in writing of such claim and shall apprise the Company of the nature of such
claim and the date on which such claim is requested to be paid. The Executive
shall not pay such claim prior to the expiration of the 30-day period following
the date on which the Executive gives such notice to the Company (or such
shorter period ending on the date that any payment of taxes with respect to such
claim is due). If the Company notifies the Executive in writing prior to the
expiration of such period that it desires to contest such claim, the Executive
shall:

                    (i) give the Company any information reasonably requested by
      the Company relating to such claim,

                    (ii) take such action in connection with contesting such
      claim as the Company shall reasonably request in writing from time to
      time, including, without limitation, accepting legal representation with
      respect to such claim by an attorney reasonably selected by the Company,

                    (iii) cooperate with the Company in good faith in order
      effectively to contest such claim, and

                                      -15-
<PAGE>   16

                    (iv) permit the Company to participate in any proceedings
      relating to such claim;

provided, however, that the Company shall bear and pay directly all costs and
expenses (including additional interest and penalties) incurred in connection
with such contest and shall indemnify and hold the Executive harmless, on an
after-tax basis, for any Excise Tax or income tax (including interest and
penalties with respect thereto) imposed as a result of such representation and
payment of costs and expenses.  Without limitation on the foregoing provisions
of this Section 9(c), the Company shall control all proceedings taken in
connection with such contest and, at its sole option, may pursue or forgo any
and all administrative appeals,  proceedings, hearings and conferences with the
taxing authority in respect of such claim and may, at its sole option, either
direct the Executive to pay the tax claimed and sue for a refund or contest the
claim in any permissible manner, and the Executive agrees to prosecute such
contest to a determination before any administrative tribunal, in a court of
initial jurisdiction and in one or more appellate courts, as the Company shall
determine; provided, however, that if the Company directs the Executive to pay
such claim and sue for a refund, the Company shall advance the amount of such
payment to the Executive, on an interest-free basis and shall indemnify and
hold the Executive harmless, on an after-tax basis, from any Excise Tax or
income tax (including interest or penalties with respect thereto) imposed with
respect to such advance or with respect to any imputed income with respect to
such advance; and further provided that any extension of the statute of
limitations relating to payment of taxes for the taxable year of the Executive
with respect to which such contested amount is claimed to be due is limited
solely to such contested amount.  Furthermore, the Company's control of the
contest shall be limited to issues with respect to which a Gross-Up Payment
would be payable hereunder and the Executive shall be entitled to settle or
contest, as the case may be, any other issue raised by the Internal Revenue
Service or any other taxing authority.

          (d) If, after the receipt by the Executive of an amount advanced by
the Company pursuant to Section 9(c), the Executive becomes entitled to receive
any refund with respect to such claim, the Executive shall (subject to the
Company's complying with the requirements of Section 9(c)) promptly pay to the
Company the amount of such refund (together with any interest


                                      -16-
<PAGE>   17

paid or credited thereon after deducting an amount sufficient to pay applicable
federal, state and local taxes on such interest at the highest marginal rates
applicable thereto). If, after the receipt by the Executive of an amount
advanced by the Company pursuant to Section 9(c), a determination is made that
the Executive shall not be entitled to any refund with respect to such claim and
the Company does not notify the Executive in writing of its intent to contest
such denial of refund prior to the expiration of 30 days after such
determination, then such advance shall be forgiven and shall not be required to
be repaid and the amount of such advance shall offset, to the extent thereof,
the amount of Gross-Up Payment required to be paid.

          10. Confidential Information. The Executive shall hold in a fiduciary
capacity for the benefit of the Company all secret or confidential information,
knowledge or data relating to the Company or any of its affiliated companies,
and their respective businesses, which shall have been obtained by the Executive
during the Executive's employment by the Company or any of its affiliated
companies and which shall not be or become public knowledge (other than by acts
by the Executive or representatives of the Executive in violation of this
Agreement). After termination of the Executive's employment with the Company,
the Executive shall not, without the prior written consent of the Company or as
may otherwise be required by law or legal process, communicate or divulge any
such information, knowledge or data to anyone other than the Company and those
designated by it. In no event shall an asserted violation of the provisions of
this Section 10 constitute a basis for deferring or withholding any amounts
otherwise payable to the Executive under this Agreement.

          11. Successors. (a) This Agreement is personal to the Executive and
without the prior written consent of the Company shall not be assignable by the
Executive otherwise than by will or the laws of descent and distribution. This
Agreement shall inure to the benefit of and be enforceable by the Executive's
legal representatives.

          (b) This Agreement shall inure to the benefit of and be binding upon
the Company and its successors and assigns.

          (c) The Company will require any successor (whether direct or
indirect, by purchase, merger, consolidation or otherwise) to all or
substantially all of the business and/or 


                                      -17-
<PAGE>   18

assets of the Company to assume expressly and agree to perform this Agreement in
the same manner and to the same extent that the Company would be required to
perform it if no such succession had taken place. As used in this Agreement,
"Company" shall mean the Company as hereinbefore defined and any successor to
its business and/or assets as aforesaid which assumes and agrees to perform this
Agreement by operation of law, or otherwise.

          12. Miscellaneous. (a) This Agreement shall be governed by and
construed in accordance with the laws of the State of Delaware, without
reference to principles of conflict of laws. The captions of this Agreement are
not part of the provisions hereof and shall have no force or effect. This
Agreement may not be amended or modified otherwise than by a written agreement
executed by the parties hereto or their respective successors and legal
representatives.

          (b) All notices and other communications hereunder shall be in writing
and shall be given by hand delivery to the other party or by registered or
certified mail, return receipt requested, postage prepaid, addressed as follows:

          If to the Executive:

          Lonnie R. Wright, Jr.
          9041 SW 102 Street
          Miami, Florida  33176

          If to the Company:

          John Alden Financial Corporation
          7300 Corporate Center Drive
          Miami, FL  33126-1223


                           Attention: General Counsel


or to such other address as either party shall have furnished to the other in
writing in accordance herewith.  Notice and communications shall be effective
when actually received by the addressee.

                                      -18-
<PAGE>   19

          (c) The invalidity or unenforceability of any provision of this
Agreement shall not affect the validity or enforceability of any other provision
of this Agreement.

          (d) The Company may withhold from any amounts payable under this
Agreement such Federal, state, local or foreign taxes as shall be required to be
withheld pursuant to any applicable law or regulation.

          (e) The Executive's or the Company's failure to insist upon strict
compliance with any provision hereof or any other provision of this Agreement or
the failure to assert any right the Executive or the Company may have hereunder,
including, without limitation, the right of the Executive to terminate
employment for Good Reason pursuant to Section 5(c)(i)-(v) of this Agreement,
shall not be deemed to be a waiver of such provision or right or any other
provision or right of this Agreement.

          (f) The Executive and the Company acknowledge that, except as may
otherwise be provided under any other written agreement between the Executive
and the Company, the employment of the Executive by the Company is "at will"
and, prior to the Effective Date, the Executive's employment may be terminated
by either the Executive or the Company at any time prior to the Effective Date,
in which case the Executive shall have no further rights under this Agreement.
From and after the Effective Date this Agreement shall supersede any other
agreement between the parties with respect to the subject matter hereof,
including, without limitation, the right of the Executive to participate in any
severance plan of the Company or otherwise receive severance benefits from the
Company.

                                      -19-
<PAGE>   20

          IN WITNESS WHEREOF, the Executive has hereunto set the Executive's
hand and, pursuant to the authorization from its Board of Directors, the Company
has caused this Agreement to be executed in its name on its behalf, all as of
the day and year first above written.

                                        JOHN ALDEN FINANCIAL CORPORATION


                                        By: /s/ SCOTT L. STANTON
                                           ---------------------------------
                                        Title: Senior Vice President and 
                                              ------------------------------
                                               Chief Financial Officer
                                              ------------------------------

                                         /s/ LONNIE R. WRIGHT, JR.
                                        ------------------------------------
                                             Lonnie R. Wright, Jr.



                                      -20-




<PAGE>   1
                                                                   EXHIBIT 10.69

                               CHANGE OF CONTROL

                              EMPLOYMENT AGREEMENT

                 AGREEMENT by and between John Alden Financial Corporation, a
Delaware corporation (the "Company") and Kerry D.  Clemmons (the "Executive"),
dated as of the 5th day of November, 1997.

                 The Board of Directors of the Company (the "Board"), has
determined that it is in the best interests of the Company and its shareholders
to assure that the Company will have the continued dedication of the Executive,
notwithstanding the possibility, threat or occurrence of a Change of Control
(as defined below) of the Company.  The Board believes it is imperative to
diminish the inevitable distraction of the Executive by virtue of the personal
uncertainties and risks created by a pending or threatened Change of Control
and to encourage the Executive's full attention and dedication to the Company
currently and in the event of any threatened or pending Change of Control, and
to provide the Executive with compensation and benefits arrangements upon a
Change of Control which ensure that the compensation and benefits expectations
of the Executive will be satisfied and which are competitive with those of
other corporations.  Therefore, in order to accomplish these objectives, the
Board has caused the Company to enter into this Agreement.

                 NOW, THEREFORE, IT IS HEREBY AGREED AS FOLLOWS:

                 1.  Certain Definitions.  (a)  The "Effective Date" shall mean
the first date during the Change of Control Period (as defined in Section 1(b))
on which a Change of Control (as defined in Section 2) occurs.  Anything in
this Agreement to the contrary notwithstanding, if a Change of Control occurs
and if the Executive's employment with the Company is terminated prior to the
date on which the Change of Control occurs, and if it is reasonably
demonstrated by the Executive that such termination of employment (i) was at
the request of a third party who has taken steps reasonably calculated to
effect a Change of Control or (ii) otherwise arose in connection with or
anticipation of a Change of Control, then for all purposes of this Agreement
the "Effective Date" shall mean the date immediately prior to the date of such
termination of employment.





<PAGE>   2
                 (b)  The "Change of Control Period" shall mean the period
commencing on the date hereof and ending on the third anniversary of the date
hereof; provided, however, that commencing on the date one year after the date
hereof, and on each annual anniversary of such date (such date and each annual
anniversary thereof shall be hereinafter referred to as the "Renewal Date"),
unless previously terminated, the Change of Control Period shall be
automatically extended so as to terminate 3 years from such Renewal Date,
unless at least 60 days prior to the Renewal Date the Company shall give notice
to the Executive that the Change of Control Period shall not be so extended.

                 2.  Change of Control.  For the purpose of this Agreement, a
"Change of Control" shall mean:

                 (a)  The acquisition by any individual, entity or group
         (within the meaning of Section 13(d)(3) or 14(d)(2) of the Securities
         Exchange Act of 1934, as amended (the "Exchange Act")) (a "Person") of
         beneficial ownership (within the meaning of Rule 13d-3 promulgated
         under the Exchange Act) of 20% or more of either (i) the then
         outstanding shares of common stock of the Company (the "Outstanding
         Company Common Stock") or (ii) the combined voting power of the then
         outstanding voting securities of the Company entitled to vote
         generally in the election of directors (the "Outstanding Company
         Voting Securities"); provided, however, that for purposes of this
         subsection (a), the following acquisitions shall not constitute a
         Change of Control:  (i) any acquisition directly from the Company,
         (ii) any acquisition by the Company, (iii) any acquisition by any
         employee benefit plan (or related trust) sponsored or maintained by
         the Company or any corporation controlled by the Company or (iv) any
         acquisition pursuant to a transaction which complies with clauses (i),
         (ii) and (iii) of subsection (c) of this Section 2; or

                 (b)  Individuals who, as of the date hereof, constitute the
         Board (the "Incumbent Board") cease for any reason to constitute at
         least a majority of the Board; provided, however, that any individual
         becoming a director subsequent to the date hereof whose election, or
         nomination for election by the Company's shareholders, was approved by
         a vote of at least a majority of the directors then comprising the
         Incumbent Board shall be considered as though such individual were a
         member of the Incumbent Board, but excluding, for this purpose, any
         such individual whose initial assumption of office occurs as a result
         of an actual or threatened election contest with respect to the
         election or removal of directors or other actual or threatened
         solicitation of proxies or consents by or on behalf of a Person other
         than the Board; or

                 (c)  Consummation by the Company of a reorganization, merger
         or consolidation or sale or other disposition of all or substantially
         all of the assets of the Company or the acquisition of assets of
         another entity (a "Business Combination"), in each case, unless,





                                      -2-
<PAGE>   3
         following such Business Combination, (i) all or substantially all of
         the individuals and entities who were the beneficial owners,
         respectively, of the Outstanding Company Common Stock and Outstanding
         Company Voting Securities immediately prior to such Business
         Combination beneficially own, directly or indirectly, more than 60%
         of, respectively, the then outstanding shares of common stock and the
         combined voting power of the then outstanding voting securities
         entitled to vote generally in the election of directors, as the case
         may be, of the corporation resulting from such Business Combination
         (including, without limitation, a corporation which as a result of
         such transaction owns the Company or all or substantially all of the
         Company's assets either directly or through one or more subsidiaries)
         in substantially the same proportions as their ownership, immediately
         prior to such Business Combination of the Outstanding Company Common
         Stock and Outstanding Company Voting Securities, as the case may be,
         (ii) no Person (excluding any employee benefit plan (or related trust)
         of the Company or such corporation resulting from such Business
         Combination) beneficially owns, directly or indirectly, 20% or more
         of, respectively, the then outstanding shares of common stock of the
         corporation resulting from such Business Combination or the combined
         voting power of the then outstanding voting securities of such
         corporation except to the extent that such ownership existed prior to
         the Business Combination and (iii) at least a majority of the members
         of the board of directors of the corporation resulting from such
         Business Combination were members of the Incumbent Board at the time
         of the execution of the initial agreement, or of the action of the
         Board, providing for such Business Combination; or

                  (d)  Approval by the shareholders of the Company of a complete
         liquidation or dissolution of the Company.

                 3. Employment Period.  The Company hereby agrees to continue
the Executive in its employ, and the Executive hereby agrees to remain in the
employ of the Company subject to the terms and conditions of this Agreement,
for the period  commencing on the Effective Date and ending on the third
anniversary of such date (the "Employment Period").

                 4. Terms of Employment.  (a)  Position and Duties.  (i)  During
the Employment Period, (A) the Executive's position (including status, offices,
titles and reporting requirements), authority, duties and responsibilities
shall be at least commensurate in all material respects with the most
significant of those held, exercised and assigned to the Executive at any time
during the 120-day period immediately preceding the Effective Date and (B) the
Executive's services shall be performed at the location where the Executive was
employed immediately preceding the Effective Date or any office or location
less than 35 miles from such location.





                                      -3-
<PAGE>   4
                                  (ii)  During the Employment Period, and
excluding any periods of vacation and sick leave to which the Executive is
entitled, the Executive agrees to devote reasonable attention and time during
normal business hours to the business and affairs of the Company and, to the
extent necessary to discharge the responsibilities assigned to the Executive
hereunder, to use the Executive's reasonable best efforts to perform faithfully
and efficiently such responsibilities.  During the Employment Period it shall
not be a violation of this Agreement for the Executive to (A) serve on
corporate, civic or charitable boards or committees, (B) deliver lectures,
fulfill speaking engagements or teach at educational institutions and (C)
manage personal investments, so long as such activities do not significantly
interfere with the performance of the Executive's responsibilities as an
employee of the Company in accordance with this Agreement.  It is expressly
understood and agreed that to the extent that any such activities have been
conducted by the Executive prior to the Effective Date, the continued conduct
of such activities (or the conduct of activities similar in nature and scope
thereto) subsequent to the Effective Date shall not thereafter be deemed to
interfere with the performance of the Executive's responsibilities to the
Company.

                 (b) Compensation.  (i)  Base Salary.  During the Employment
Period, the Executive shall receive an annual base salary ("Annual Base
Salary"), which shall be paid at a monthly rate, at least equal to 12 times the
highest monthly base salary paid or payable, including any base salary which
has been earned but deferred, to the Executive by the Company and its
affiliated companies in respect of the twelve-month period immediately
preceding the month in which the Effective Date occurs.  During the Employment
Period, the Annual Base Salary shall be reviewed within 12 months after the
last salary increase awarded to the Executive prior to the Effective Date and
thereafter at least annually.  Any increase in Annual Base Salary shall not
serve to limit or reduce any other obligation to the Executive under this
Agreement.  Annual Base Salary shall not be reduced after any such increase and
the term Annual Base Salary as utilized in this Agreement shall refer to Annual
Base Salary as so increased.  As used in this Agreement, the term "affiliated
companies" shall include any company controlled by, controlling or under common
control with the Company.





                                      -4-
<PAGE>   5
                          (ii)  Annual Bonus.  In addition to Annual Base
Salary, the Executive shall be awarded, for each fiscal year ending during the
Employment Period, an annual bonus (the "Annual Bonus") in cash at least equal
to the Executive's target annual bonus under the Company's Short-Term Incentive
Compensation Plan for 1997 ("1997 Target Bonus") or, if higher, the Executive's
greatest target annual bonus in any subsequent year prior to the Effective
Date.  Each such Annual Bonus shall be paid no later than the end of the third
month of the fiscal year next following the fiscal year for which the Annual
Bonus is awarded, unless the Executive shall elect to defer the receipt of such
Annual Bonus.

                          (iii)  Incentive, Savings and Retirement Plans.
During the Employment Period, the Executive shall be entitled to participate in
all incentive, savings and retirement plans, practices, policies and programs
applicable generally to other peer executives of the Company and its affiliated
companies, but in no event shall such plans, practices, policies and programs
provide the Executive with incentive opportunities (measured with respect to
both regular and special incentive opportunities, to the extent, if any, that
such distinction is applicable), savings opportunities and retirement benefit
opportunities, in each case, less favorable, in the aggregate, than the most
favorable of those provided by the Company and its affiliated companies for the
Executive under such plans, practices, policies and programs as in effect at
any time during the 120-day period immediately preceding the Effective Date or
if more favorable to the Executive, those provided generally at any time after
the Effective Date to other peer executives of the Company and its affiliated
companies.

                          (iv)  Welfare Benefit Plans.  During the Employment
Period, the Executive and/or the Executive's family, as the case may be, shall
be eligible for participation in and shall receive all benefits under welfare
benefit plans, practices, policies and programs provided by the Company and its
affiliated companies (including, without limitation, medical, prescription,
dental, disability, salary continuance, employee life, group life, accidental
death and travel accident insurance plans and programs) to the extent
applicable generally to other peer executives of the Company and its affiliated
companies, but in no event shall such plans, practices, policies and programs
provide the Executive with benefits which are less favorable, in the aggregate,
than the most favorable of such plans, practices, policies and programs in
effect for





                                      -5-
<PAGE>   6
the Executive at any time during the 120-day period immediately preceding the
Effective Date or, if more favorable to the Executive, those provided generally
at any time after the Effective Date to other peer executives of the Company
and its affiliated companies.

                          (v)  Expenses.  During the Employment Period, the
Executive shall be entitled to receive prompt reimbursement for all reasonable
expenses incurred by the Executive in accordance with the most favorable
policies, practices and procedures of the Company and its affiliated companies
in effect for the Executive at any time during the 120-day period immediately
preceding the Effective Date or, if more favorable to the Executive, as in
effect generally at any time thereafter with respect to other peer executives
of the Company and its affiliated companies.

                          (vi)  Fringe Benefits.  During the Employment Period,
the Executive shall be entitled to fringe benefits, including, without
limitation, tax and financial planning services, payment of club dues, and, if
applicable, use of an automobile (or an automobile allowance) and payment of
related expenses, in accordance with the most favorable plans, practices,
programs and policies of the Company and its affiliated companies in effect for
the Executive at any time during the 120-day period immediately preceding the
Effective Date or, if more favorable to the Executive, as in effect generally
at any time thereafter with respect to other peer executives of the Company and
its affiliated companies.

                          (vii)  Office and Support Staff.  During the
Employment Period, the Executive shall be entitled to an office or offices of a
size and with furnishings and other appointments, and to exclusive personal
secretarial and other assistance, at least equal to the most favorable of the
foregoing provided to the Executive by the Company and its affiliated companies
at any time during the 120-day period immediately preceding the Effective Date
or, if more favorable to the Executive, as provided generally at any time
thereafter with respect to other peer executives of the Company and its
affiliated companies.

                          (viii)  Vacation.  During the Employment Period, the
Executive shall be entitled to paid vacation in accordance with the most
favorable plans, policies, programs and practices of the Company and its
affiliated companies as in effect for the Executive at any time





                                      -6-
<PAGE>   7
during the 120-day period immediately preceding the Effective Date or, if more
favorable to the Executive, as in effect generally at any time thereafter with
respect to other peer executives of the Company and its affiliated companies.

                 5.  Termination of Employment.  (a)  Death or Disability.  The
Executive's employment shall terminate automatically upon the Executive's death
during the Employment Period.  If the Company determines in good faith that the
Disability of the Executive has occurred during the Employment Period (pursuant
to the definition of Disability set forth below), it may give to the Executive
written notice in accordance with Section 12(b) of this Agreement of its
intention to terminate the Executive's employment.  In such event, the
Executive's employment with the Company shall terminate effective on the 30th
day after receipt of such notice by the Executive (the "Disability Effective
Date"), provided that, within the 30 days after such receipt, the Executive
shall not have returned to full-time performance of the Executive's duties.
For purposes of this Agreement, "Disability" shall mean the absence of the
Executive from the Executive's duties with the Company on a full-time basis for
180 consecutive business days as a result of incapacity due to mental or
physical illness which is determined to be total and permanent by a physician
selected by the Company or its insurers  and acceptable to the Executive or the
Executive's legal representative.

                 (b)  Cause.  The Company may terminate the Executive's
employment during the Employment Period for Cause.  For purposes of this
Agreement, "Cause" shall mean:

                                  (i)      the willful and continued failure of
         the Executive to perform substantially the Executive's duties with the
         Company or one of its affiliates (other than any such failure
         resulting from incapacity due to physical or mental illness), after a
         written demand for substantial performance is delivered to the
         Executive by the Board or the Chief Executive Officer of the Company
         which specifically identifies the manner in which the Board or Chief
         Executive Officer believes that the Executive has not substantially
         performed the Executive's duties, or

                                  (ii)     the willful engaging by the
         Executive in illegal conduct or gross misconduct which is materially
         and demonstrably injurious to the Company.

For purposes of this provision, no act or failure to act, on the part of the
Executive, shall be considered "willful" unless it is done, or omitted to be
done, by the Executive in bad faith or





                                      -7-
<PAGE>   8
without reasonable belief that the Executive's action or omission was in the
best interests of the Company.  Any act, or failure to act, based upon
authority given pursuant to a resolution duly adopted by the Board or upon the
instructions of the Chief Executive Officer or a senior officer of the Company
or based upon the advice of counsel for the Company shall be conclusively
presumed to be done, or omitted to be done, by the Executive in good faith and
in the best interests of the Company.  The cessation of employment of the
Executive shall not be deemed to be for Cause unless and until there shall have
been delivered to the Executive a copy of a resolution duly adopted by the
affirmative vote of not less than three-quarters of the entire membership of
the Board at a meeting of the Board called and held for such purpose (after
reasonable notice is provided to the Executive and the Executive is given an
opportunity, together with counsel, to be heard before the Board), finding
that, in the good faith opinion of the Board, the Executive is guilty of the
conduct described in subparagraph (i) or (ii) above, and specifying the
particulars thereof in detail.

                 (c)  Good Reason.  The Executive's employment may be
terminated by the Executive for Good Reason.  For purposes of this Agreement,
"Good Reason" shall mean:

                                  (i)      the assignment to the Executive of
         any duties inconsistent in any respect with the Executive's position
         (including status, offices, titles and reporting requirements),
         authority, duties or responsibilities as contemplated by Section 4(a)
         of this Agreement, or any other action by the Company which results in
         a diminution in such position, authority, duties or responsibilities,
         excluding for this purpose an isolated, insubstantial and inadvertent
         action not taken in bad faith and which is remedied by the Company
         promptly after receipt of notice thereof given by the Executive;

                                  (ii)     any failure by the Company to comply
         with any of the provisions of Section 4(b) of this Agreement, other
         than an isolated, insubstantial and inadvertent failure not occurring
         in bad faith and which is remedied by the Company promptly after
         receipt of notice thereof given by the Executive;

                                  (iii)    the Company's requiring the
         Executive to be based at any office or location other than as provided
         in Section 4(a)(i)(B) hereof or the Company's requiring the Executive
         to travel on Company business to a substantially greater extent than
         required immediately prior to the Effective Date;

                                  (iv)     any purported termination by the
         Company of the Executive's employment otherwise than as expressly
         permitted by this Agreement; or





                                      -8-
<PAGE>   9
                                 (v)      any failure by the Company to comply
         with and satisfy Section 11(c) of this Agreement.

For purposes of this Section 5(c), any good faith determination of "Good
Reason" made by the Executive shall be conclusive.  Anything in this Agreement
to the contrary notwithstanding, a termination by the Executive for any reason
during the 30-day period immediately following the first anniversary of the
Effective Date shall be deemed to be a termination for Good Reason for all
purposes of this Agreement.


                 (d)  Notice of Termination.  Any termination by the Company
for Cause, or by the Executive for Good Reason, shall be communicated by Notice
of Termination to the other party hereto given in accordance with Section 12(b)
of this Agreement.  Such Notice of Termination for Cause shall be given within
90 days following the Company's "actual" knowledge of any event constituting
Cause, and such Notice of Termination for Good Reason shall be given within 180
days following the Executive's "actual" knowledge of an event constituting Good
Reason.  For purposes of this Agreement, a "Notice of Termination" means a
written notice which (i) indicates the specific termination provision in this
Agreement relied upon, (ii) to the extent applicable, sets forth in reasonable
detail the facts and circumstances claimed to provide a basis for termination
of the Executive's employment under the provision so indicated and (iii) if the
Date of Termination (as defined below) is other than the date of receipt of
such notice, specifies the termination date (which date shall be not more than
thirty days after the giving of such notice).  The failure by the Executive or
the Company to set forth in the Notice of Termination any fact or circumstance
which contributes to a showing of Good Reason or Cause shall not waive any
right of the Executive or the Company, respectively, hereunder or preclude the
Executive or the Company, respectively, from asserting such fact or
circumstance in enforcing the Executive's or the Company's rights hereunder.

                 (e) Date of Termination.  "Date of Termination" means (i) if
the Executive's employment is terminated by the Company for Cause, or by the
Executive for Good Reason, the date of receipt of the Notice of Termination or
any later date specified therein, as the case may be, (ii) if the Executive's
employment is terminated by the Company other than for Cause or Disability, the
date on which the Company notifies the Executive of such termination and (iii)
if





                                      -9-
<PAGE>   10
the Executive's employment is terminated by reason of death or Disability, the
date of death of the Executive or the Disability Effective Date, as the case
may be.

                 6. Obligations of the Company upon Termination.  (a) Good
Reason; Other Than for Cause, Death or Disability.  If, during the Employment
Period, the Company shall terminate the Executive's employment other than for
Cause or Disability or the Executive shall terminate employment for Good
Reason:

                   (i)            the Company shall pay to the Executive in a
         lump sum in cash within 30 days after the Date of Termination the
         aggregate of the following amounts:

                                  A.  the sum of (1) the Executive's Annual
                 Base Salary through the Date of Termination to the extent not
                 theretofore paid, (2) the product of (x) the greater of (a)
                 the 1997 Target Bonus and (b) the Executive's highest target
                 annual bonus for any fiscal year that begins both subsequent
                 to 1997 and within 3 years prior to the Date of Termination
                 (such greater amount, the "Highest Target Bonus") and (y) a
                 fraction, the numerator of which is the number of days in the
                 current fiscal year through the Date of Termination, and the
                 denominator of which is 365 and (3) any compensation
                 previously deferred by the Executive (together with any
                 accrued interest or earnings thereon) and any accrued vacation
                 pay, in each case to the extent not theretofore paid (the sum
                 of the amounts described in clauses (1), (2), and (3) shall be
                 hereinafter referred to as the "Accrued Obligations"); and

                                  B.  the amount equal to the product of (1) 3
                 and (2) the sum of (x) the Executive's Annual Base Salary and
                 (y) the Highest Target Bonus; and

                                  C.  an amount equal to the difference between
                 (a) the aggregate benefit under the Company's qualified
                 defined benefit retirement plans (collectively, the
                 "Retirement Plan") and any excess or supplemental defined
                 benefit retirement plans in which the Executive participates
                 (collectively, the "SERP") which the Executive would have
                 accrued (whether or not vested) if the Executive's employment
                 had continued for 3 years after the Date of Termination (based
                 on the assumption that the Executive's compensation in each of
                 the 3 years following such termination would have been that
                 required by Section 4(b)(i) and Section 4(b)(ii)) and (b) the
                 actual vested benefit, if any, of the Executive under the
                 Retirement Plan and the SERP, determined as of the Date of
                 Termination (with the foregoing amounts to be computed on an
                 actuarial present value basis using actuarial assumptions no
                 less favorable to the Executive than the most favorable of
                 those in effect for purposes of computing benefit entitlements
                 under the Retirement Plan and the SERP at any time from the
                 day before the Effective Date) through the Date of
                 Termination;





                                      -10-
<PAGE>   11
                   (ii)           for 3 years after the Executive's Date of
         Termination, or such longer period as may be provided by the terms of
         the appropriate plan, program, practice or policy, the Company shall
         continue benefits to the Executive and/or the Executive's family at
         least equal to those which would have been provided to them in
         accordance with the plans, programs, practices and policies described
         in Section 4(b)(iv) of this Agreement if the Executive's employment
         had not been terminated or, if more favorable to the Executive, as in
         effect generally at any time thereafter with respect to other peer
         executives of the Company and its affiliated companies and their
         families, provided, however, that if the Executive becomes reemployed
         with another employer and is eligible to receive medical or other
         welfare benefits under another employer-provided plan, the medical and
         other welfare benefits described herein shall be secondary to those
         provided under such other plan during such applicable period of
         eligibility, and for purposes of determining eligibility (but not the
         time of commencement of benefits) of the Executive for retiree
         benefits pursuant to such plans, practices, programs and policies, the
         Executive shall be considered to have remained employed until 3 years
         after the Date of Termination and to have retired on the last day of
         such period;

                   (iii)          the Company shall, at its sole expense as
         incurred, provide the Executive with outplacement services the scope
         and provider of which shall be selected by the Executive in the
         Executive's sole discretion; provided, however, that the Company shall
         not be obligated to provide such services for a period of more than
         one year after the Date of Termination or at an aggregate cost in
         excess of $20,000; and

                   (iv)           to the extent not theretofore paid or
         provided, the Company shall timely pay or provide to the Executive any
         other amounts or benefits required to be paid or provided or which the
         Executive is eligible to receive under any plan, program, policy or
         practice or contract or agreement of the Company and its affiliated
         companies (such other amounts and benefits shall be hereinafter
         referred to as the "Other Benefits").

                 (b)  Death.  If the Executive's employment is terminated by
reason of the Executive's death during the Employment Period, this Agreement
shall terminate without further obligations to the Executive's legal
representatives under this Agreement, other than for payment of Accrued
Obligations and the timely payment or provision of Other Benefits.  Accrued
Obligations shall be paid to the Executive's estate or beneficiary, as
applicable, in a lump sum in cash within 30 days after the Date of Termination.
With respect to the provision of Other Benefits, the term Other Benefits as
utilized in this Section 6(b) shall include, without limitation, and the
Executive's estate and/or beneficiaries shall be entitled to receive, benefits
at least equal to the most favorable benefits provided by the Company and
affiliated companies to the estates and beneficiaries of peer executives of the
Company and such affiliated companies under such plans, programs, practices and
policies relating to death benefits, if any, as in effect with respect





                                      -11-
<PAGE>   12
to other peer executives and their beneficiaries at any time during the 120-day
period immediately preceding the Effective Date or, if more favorable to the
Executive's estate and/or the Executive's beneficiaries, as in effect on the
date of the Executive's death with respect to other peer executives of the
Company and its affiliated companies and their beneficiaries.

                 (c)  Disability.  If the Executive's employment is terminated
by reason of the Executive's Disability during the Employment Period, this
Agreement shall terminate without further obligations to the Executive, other
than for payment of Accrued Obligations and the timely payment or provision of
Other Benefits.  Accrued Obligations shall be paid to the Executive in a lump
sum in cash within 30 days after the Date of Termination.  With respect to the
provision of Other Benefits, the term Other Benefits as utilized in this
Section 6(c) shall include, and the Executive shall be entitled after the
Disability Effective Date to receive, disability and other benefits at least
equal to the most favorable of those generally provided by the Company and its
affiliated companies to disabled executives and/or their families in accordance
with such plans, programs, practices and policies relating to disability, if
any, as in effect generally with respect to other peer executives and their
families at any time during the 120-day period immediately preceding the
Effective Date or, if more favorable to the Executive and/or the Executive's
family, as in effect at any time thereafter generally with respect to other
peer executives of the Company and its affiliated companies and their families.

                 (d)  Cause; Other than for Good Reason.  If the Executive's
employment shall be terminated for Cause during the Employment Period, this
Agreement shall terminate without further obligations to the Executive other
than the obligation to pay to the Executive (x) the Annual Base Salary through
the Date of Termination, (y) the amount of any compensation previously deferred
by the Executive, and (z) Other Benefits, in each case to the extent
theretofore unpaid.  If the Executive voluntarily terminates employment during
the Employment Period, excluding a termination for Good Reason, this Agreement
shall terminate without further obligations to the Executive, other than for
Accrued Obligations and the timely payment or provision of Other Benefits.  In
such case, all Accrued Obligations shall be paid to the Executive in a lump sum
in cash within 30 days of the Date of Termination.





                                      -12-
<PAGE>   13
                 7.  Non-exclusivity of Rights.  Nothing in this Agreement
shall prevent or limit the Executive's continuing or future participation in
any plan, program, policy or practice provided by the Company or any of its
affiliated companies and for which the Executive may qualify, nor, subject to
Section 12(f), shall anything herein limit or otherwise affect such rights as
the Executive may have under any contract or agreement with the Company or any
of its affiliated companies.  Amounts which are vested benefits or which the
Executive is otherwise entitled to receive under any plan, policy, practice or
program of or any contract or agreement with the Company or any of its
affiliated companies at or subsequent to the Date of Termination shall be
payable in accordance with such plan, policy, practice or program or contract
or agreement except as explicitly modified by this Agreement.

                 8.  Full Settlement; Legal Fees.  The Company's obligation to
make the payments provided for in this Agreement and otherwise to perform its
obligations hereunder shall not be affected by any set-off, counterclaim,
recoupment, defense or other claim, right or action which the Company may have
against the Executive or others.  In no event shall the Executive be obligated
to seek other employment or take any other action by way of mitigation of the
amounts payable to the Executive under any of the provisions of this Agreement
and except as specifically provided in Section 6(a)(ii), such amounts shall not
be reduced whether or not the Executive obtains other employment.  The Company
agrees to pay as incurred, to the full extent permitted by law, all legal fees
and expenses which the Executive may reasonably incur as a result of any
contest (regardless of the outcome thereof) by the Company, the Executive or
others of the validity or enforceability of, or liability or entitlement under,
any provision of this Agreement or any guarantee of performance thereof
(whether such contest is between the Company and the Executive or between
either of them and any third party, and including as a result of any contest by
the Executive about the amount of any payment pursuant to this Agreement), plus
in each case interest on any delayed payment at 120% of the applicable Federal
rate (that applies to the time period of the delay) provided for in Section
7872(f)(2)(A) of the Internal Revenue Code of 1986, as amended (the "Code"),
compounded annually.





                                      -13-
<PAGE>   14
                 9.  Certain Additional Payments by the Company.

                 (a)  Anything in this Agreement to the contrary
notwithstanding, in the event it shall be determined that any payment, award,
benefit or distribution by the Company (or any of its affiliated entities) or
by any entity which effectuates a Change of Control (or any of its affiliated
entities) to or for the benefit of the Executive (whether pursuant to the terms
of this Agreement or otherwise, but determined without regard to any additional
payments required under this Section 9) (a "Payment") would be subject to the
excise tax imposed by Section 4999 of the Code or any corresponding provisions
of state or local tax laws, or any interest or penalties are incurred by the
Executive with respect to such excise tax (such excise tax, together with any
such interest and penalties, are hereinafter collectively referred to as the
"Excise Tax"), then the Executive shall be entitled to receive an additional
payment (a "Gross-Up Payment") in an amount such that after payment by the
Executive of all taxes (including any interest or penalties imposed with
respect to such taxes), including, without limitation, any income taxes (and
any interest and penalties imposed with respect thereto) and Excise Tax imposed
upon the Gross-Up Payment, the Executive retains an amount of the Gross-Up
Payment equal to the Excise Tax imposed upon the Payments.  The payment of a
Gross-Up Payment under this Section 9(a) shall not be conditioned upon the
Executive's termination of employment.

                 (b)  Subject to the provisions of Section 9(c), all
determinations required to be made under this Section 9, including whether and
when a Gross-Up Payment is required and the amount of such Gross-Up Payment and
the assumptions to be utilized in arriving at such determination, shall be made
by Price Waterhouse LLP or such other certified public accounting firm as may
be designated by the Executive (the "Accounting Firm"), which shall provide
detailed supporting calculations both to the Company and the Executive within
15 business days of the receipt of notice from the Executive that there has
been a Payment, or such earlier time as is requested by the Company.  In the
event that the Accounting Firm is serving as accountant or auditor for the
individual, entity or group effecting the Change of Control, the Executive
shall appoint another nationally recognized accounting firm to make the
determinations required hereunder (which accounting firm shall then be referred
to as the Accounting Firm hereunder).  All fees and expenses of the Accounting
Firm shall be borne solely by the Company.  Any





                                      -14-
<PAGE>   15
Gross-Up Payment, as determined pursuant to this Section 9, shall be paid by
the Company to the Executive within 5 days after the receipt of the Accounting
Firm's determination.  Any determination by the Accounting Firm shall be
binding upon the Company and the Executive.  As a result of the uncertainty in
the application of Section 4999 of the Code at the time of the initial
determination by the Accounting Firm hereunder, it is possible that Gross-Up
Payments which will not have been made by the Company should have been made
("Underpayment"), consistent with the calculations required to be made
hereunder.  In the event that the Company exhausts its remedies pursuant to
Section 9(c) and the Executive thereafter is required to make a payment of any
Excise Tax, the Accounting Firm shall determine the amount of the Underpayment
that has occurred and any such Underpayment shall be promptly paid by the
Company to or for the benefit of the Executive.

                 (c)  The Executive shall notify the Company in writing of any
claim by the Internal Revenue Service that, if successful, would require the
payment by the Company of the Gross-Up Payment.  Such notification shall be
given as soon as practicable but no later than ten business days after the
Executive is informed in writing of such claim and shall apprise the Company of
the nature of such claim and the date on which such claim is requested to be
paid.  The Executive shall not pay such claim prior to the expiration of the
30-day period following the date on which the Executive gives such notice to
the Company (or such shorter period ending on the date that any payment of
taxes with respect to such claim is due).  If the Company notifies the
Executive in writing prior to the expiration of such period that it desires to
contest such claim, the Executive shall:

                                  (i)      give the Company any information
         reasonably requested by the Company relating to such claim,

                                  (ii)     take such action in connection with
         contesting such claim as the Company shall reasonably request in
         writing from time to time, including, without limitation, accepting
         legal representation with respect to such claim by an attorney
         reasonably selected by the Company,

                                  (iii)    cooperate with the Company in good
         faith in order effectively to contest such claim, and





                                      -15-
<PAGE>   16
                                 (iv)     permit the Company to participate in
         any proceedings relating to such claim;

provided, however, that the Company shall bear and pay directly all costs and
expenses (including additional interest and penalties) incurred in connection
with such contest and shall indemnify and hold the Executive harmless, on an
after-tax basis, for any Excise Tax or income tax (including interest and
penalties with respect thereto) imposed as a result of such representation and
payment of costs and expenses.  Without limitation on the foregoing provisions
of this Section 9(c), the Company shall control all proceedings taken in
connection with such contest and, at its sole option, may pursue or forgo any
and all administrative appeals,  proceedings, hearings and conferences with the
taxing authority in respect of such claim and may, at its sole option, either
direct the Executive to pay the tax claimed and sue for a refund or contest the
claim in any permissible manner, and the Executive agrees to prosecute such
contest to a determination before any administrative tribunal, in a court of
initial jurisdiction and in one or more appellate courts, as the Company shall
determine; provided, however, that if the Company directs the Executive to pay
such claim and sue for a refund, the Company shall advance the amount of such
payment to the Executive, on an interest-free basis and shall indemnify and
hold the Executive harmless, on an after-tax basis, from any Excise Tax or
income tax (including interest or penalties with respect thereto) imposed with
respect to such advance or with respect to any imputed income with respect to
such advance; and further provided that any extension of the statute of
limitations relating to payment of taxes for the taxable year of the Executive
with respect to which such contested amount is claimed to be due is limited
solely to such contested amount.  Furthermore, the Company's control of the
contest shall be limited to issues with respect to which a Gross-Up Payment
would be payable hereunder and the Executive shall be entitled to settle or
contest, as the case may be, any other issue raised by the Internal Revenue
Service or any other taxing authority.

                 (d) If, after the receipt by the Executive of an amount
advanced by the Company pursuant to Section 9(c), the Executive becomes
entitled to receive any refund with respect to such claim, the Executive shall
(subject to the Company's complying with the requirements of Section 9(c))
promptly pay to the Company the amount of such refund (together with any
interest





                                      -16-
<PAGE>   17
paid or credited thereon after deducting an amount sufficient to pay applicable
federal, state and local taxes on such interest at the highest marginal rates
applicable thereto).  If, after the receipt by the Executive of an amount
advanced by the Company pursuant to Section 9(c), a determination is made that
the Executive shall not be entitled to any refund with respect to such claim
and the Company does not notify the Executive in writing of its intent to
contest such denial of refund prior to the expiration of 30 days after such
determination, then such advance shall be forgiven and shall not be required to
be repaid and the amount of such advance shall offset, to the extent thereof,
the amount of Gross-Up Payment required to be paid.

                 10.  Confidential Information.  The Executive shall hold in a
fiduciary capacity for the benefit of the Company all secret or confidential
information, knowledge or data relating to the Company or any of its affiliated
companies, and their respective businesses, which shall have been obtained by
the Executive during the Executive's employment by the Company or any of its
affiliated companies and which shall not be or become public knowledge (other
than by acts by the Executive or representatives of the Executive in violation
of this Agreement).  After termination of the Executive's employment with the
Company, the Executive shall not, without the prior written consent of the
Company or as may otherwise be required by law or legal process, communicate or
divulge any such information, knowledge or data to anyone other than the
Company and those designated by it.  In no event shall an asserted violation of
the provisions of this Section 10 constitute a basis for deferring or
withholding any amounts otherwise payable to the Executive under this
Agreement.

                 11.  Successors.  (a)  This Agreement is personal to the
Executive and without the prior written consent of the Company shall not be
assignable by the Executive otherwise than by will or the laws of descent and
distribution.  This Agreement shall inure to the benefit of and be enforceable
by the Executive's legal representatives.

                 (b)  This Agreement shall inure to the benefit of and be
binding upon the Company and its successors and assigns.

                 (c)  The Company will require any successor (whether direct or
indirect, by purchase, merger, consolidation or otherwise) to all or
substantially all of the business and/or





                                      -17-
<PAGE>   18
assets of the Company to assume expressly and agree to perform this Agreement
in the same manner and to the same extent that the Company would be required to
perform it if no such succession had taken place.  As used in this Agreement,
"Company" shall mean the Company as hereinbefore defined and any successor to
its business and/or assets as aforesaid which assumes and agrees to perform
this Agreement by operation of law, or otherwise.

                 12.  Miscellaneous. (a)  This Agreement shall be governed by
and construed in accordance with the laws of the State of Delaware, without
reference to principles of conflict of laws.  The captions of this Agreement
are not part of the provisions hereof and shall have no force or effect.  This
Agreement may not be amended or modified otherwise than by a written agreement
executed by the parties hereto or their respective successors and legal
representatives.


                 (b)  All notices and other communications hereunder shall be
in writing and shall be given by hand delivery to the other party or by
registered or certified mail, return receipt requested, postage prepaid,
addressed as follows:

                 If to the Executive:

                 Kerry D. Clemmons
                 2830 NE 47 Street
                 Lighthouse Point, Florida 33064

                 If to the Company:

                 John Alden Financial Corporation
                 7300 Corporate Center Drive
                 Miami, FL  33126-1223

                                  Attention:  General Counsel

or to such other address as either party shall have furnished to the other in
writing in accordance herewith.  Notice and communications shall be effective
when actually received by the addressee.





                                      -18-
<PAGE>   19
                 (c)  The invalidity or unenforceability of any provision of
this Agreement shall not affect the validity or enforceability of any other
provision of this Agreement.

                 (d)  The Company may withhold from any amounts payable under
this Agreement such Federal, state, local or foreign taxes as shall be required
to be withheld pursuant to any applicable law or regulation.

                 (e)  The Executive's or the Company's failure to insist upon
strict compliance with any provision hereof or any other provision of this
Agreement or the failure to assert any right the Executive or the Company may
have hereunder, including, without limitation, the right of the Executive to
terminate employment for Good Reason pursuant to Section 5(c)(i)-(v) of this
Agreement, shall not be deemed to be a waiver of such provision or right or any
other provision or right of this Agreement.

                 (f)  The Executive and the Company acknowledge that, except as
may otherwise be provided under any other written agreement between the
Executive and the Company, the employment of the Executive by the Company is
"at will" and, prior to the Effective Date, the Executive's employment may be
terminated by either the Executive or the Company at any time prior to the
Effective Date, in which case the Executive shall have no further rights under
this Agreement.  From and after the Effective Date this Agreement shall
supersede any other agreement between the parties with respect to the subject
matter hereof, including, without limitation, the right of the Executive to
participate in any severance plan of the Company or otherwise receive severance
benefits from the Company.





                                      -19-
<PAGE>   20
                 IN WITNESS WHEREOF, the Executive has hereunto set the
Executive's hand and, pursuant to the authorization from its Board of
Directors, the Company has caused this Agreement to be executed in its name on
its behalf, all as of the day and year first above written.

                                       JOHN ALDEN FINANCIAL CORPORATION



                                       By:  /s/ SCOTT L. STANTON            
                                           ------------------------------------
                                       
                                       Title:  Senior Vice President and Chief
                                              ---------------------------------
                                               Financial Officer
                                              ---------------------------------

                                        /s/ KERRY D. CLEMMONS
                                       ----------------------------------------
                                                       Kerry D. Clemmons





                                      -20-

<PAGE>   1
                                                                   EXHIBIT 10.70

                               CHANGE OF CONTROL
                              EMPLOYMENT AGREEMENT

                 AGREEMENT by and between John Alden Financial Corporation, a
Delaware corporation (the "Company") and Mark A. Schoder (the "Executive"),
dated as of the 5th day of November, 1997.

                 The Board of Directors of the Company (the "Board"), has
determined that it is in the best interests of the Company and its shareholders
to assure that the Company will have the continued dedication of the Executive,
notwithstanding the possibility, threat or occurrence of a Change of Control
(as defined below) of the Company.  The Board believes it is imperative to
diminish the inevitable distraction of the Executive by virtue of the personal
uncertainties and risks created by a pending or threatened Change of Control
and to encourage the Executive's full attention and dedication to the Company
currently and in the event of any threatened or pending Change of Control, and
to provide the Executive with compensation and benefits arrangements upon a
Change of Control which ensure that the compensation and benefits expectations
of the Executive will be satisfied and which are competitive with those of
other corporations.  Therefore, in order to accomplish these objectives, the
Board has caused the Company to enter into this Agreement.

                 NOW, THEREFORE, IT IS HEREBY AGREED AS FOLLOWS:

                 1. Certain Definitions.  (a)  The "Effective Date" shall mean
the first date during the Change of Control Period (as defined in Section 1(b))
on which a Change of Control (as defined in Section 2) occurs.  Anything in
this Agreement to the contrary notwithstanding, if a Change of Control occurs
and if the Executive's employment with the Company is terminated prior to the
date on which the Change of Control occurs, and if it is reasonably
demonstrated by the Executive that such termination of employment (i) was at
the request of a third party who has taken steps reasonably calculated to
effect a Change of Control or (ii) otherwise arose in connection with or
anticipation of a Change of Control, then for all purposes of this Agreement
the "Effective Date" shall mean the date immediately prior to the date of such
termination of employment.
<PAGE>   2
                 (b) The "Change of Control Period" shall mean the period
commencing on the date hereof and ending on the third anniversary of the date
hereof; provided, however, that commencing on the date one year after the date
hereof, and on each annual anniversary of such date (such date and each annual
anniversary thereof shall be hereinafter referred to as the "Renewal Date"),
unless previously terminated, the Change of Control Period shall be
automatically extended so as to terminate 3 years from such Renewal Date,
unless at least 60 days prior to the Renewal Date the Company shall give notice
to the Executive that the Change of Control Period shall not be so extended.

                 2.Change of Control.  For the purpose of this Agreement, a
"Change of Control" shall mean:

                 (a)  The acquisition by any individual, entity or group
         (within the meaning of Section 13(d)(3) or 14(d)(2) of the Securities
         Exchange Act of 1934, as amended (the "Exchange Act")) (a "Person") of
         beneficial ownership (within the meaning of Rule 13d-3 promulgated
         under the Exchange Act) of 20% or more of either (i) the then
         outstanding shares of common stock of the Company (the "Outstanding
         Company Common Stock") or (ii) the combined voting power of the then
         outstanding voting securities of the Company entitled to vote
         generally in the election of directors (the "Outstanding Company
         Voting Securities"); provided, however, that for purposes of this
         subsection (a), the following acquisitions shall not constitute a
         Change of Control:  (i) any acquisition directly from the Company,
         (ii) any acquisition by the Company, (iii) any acquisition by any
         employee benefit plan (or related trust) sponsored or maintained by
         the Company or any corporation controlled by the Company or (iv) any
         acquisition pursuant to a transaction which complies with clauses (i),
         (ii) and (iii) of subsection (c) of this Section 2; or

                 (b)  Individuals who, as of the date hereof, constitute the
         Board (the "Incumbent Board") cease for any reason to constitute at
         least a majority of the Board; provided, however, that any individual
         becoming a director subsequent to the date hereof whose election, or
         nomination for election by the Company's shareholders, was approved by
         a vote of at least a majority of the directors then comprising the
         Incumbent Board shall be considered as though such individual were a
         member of the Incumbent Board, but excluding, for this purpose, any
         such individual whose initial assumption of office occurs as a result
         of an actual or threatened election contest with respect to the
         election or removal of directors or other actual or threatened
         solicitation of proxies or consents by or on behalf of a Person other
         than the Board; or

                 (c)  Consummation by the Company of a reorganization, merger
         or consolidation or sale or other disposition of all or substantially
         all of the assets of the Company or the acquisition of assets of
         another entity (a "Business Combination"), in each case, unless,





                                      -2-
<PAGE>   3
         following such Business Combination, (i) all or substantially all of
         the individuals and entities who were the beneficial owners,
         respectively, of the Outstanding Company Common Stock and Outstanding
         Company Voting Securities immediately prior to such Business
         Combination beneficially own, directly or indirectly, more than 60%
         of, respectively, the then outstanding shares of common stock and the
         combined voting power of the then outstanding voting securities
         entitled to vote generally in the election of directors, as the case
         may be, of the corporation resulting from such Business Combination
         (including, without limitation, a corporation which as a result of
         such transaction owns the Company or all or substantially all of the
         Company's assets either directly or through one or more subsidiaries)
         in substantially the same proportions as their ownership, immediately
         prior to such Business Combination of the Outstanding Company Common
         Stock and Outstanding Company Voting Securities, as the case may be,
         (ii) no Person (excluding any employee benefit plan (or related trust)
         of the Company or such corporation resulting from such Business
         Combination) beneficially owns, directly or indirectly, 20% or more
         of, respectively, the then outstanding shares of common stock of the
         corporation resulting from such Business Combination or the combined
         voting power of the then outstanding voting securities of such
         corporation except to the extent that such ownership existed prior to
         the Business Combination and (iii) at least a majority of the members
         of the board of directors of the corporation resulting from such
         Business Combination were members of the Incumbent Board at the time
         of the execution of the initial agreement, or of the action of the
         Board, providing for such Business Combination; or

                 (d)  Approval by the shareholders of the Company of a complete
         liquidation or dissolution of the Company.

                 3. Employment Period.  The Company hereby agrees to continue
the Executive in its employ, and the Executive hereby agrees to remain in the
employ of the Company subject to the terms and conditions of this Agreement,
for the period  commencing on the Effective Date and ending on the third
anniversary of such date (the "Employment Period").

                 4. Terms of Employment.  (a)  Position and Duties.  (i)
During the Employment Period, (A) the Executive's position (including status,
offices, titles and reporting requirements), authority, duties and
responsibilities shall be at least commensurate in all material respects with
the most significant of those held, exercised and assigned to the Executive at
any time during the 120-day period immediately preceding the Effective Date and
(B) the Executive's services shall be performed at the location where the
Executive was employed immediately preceding the Effective Date or any office
or location less than 35 miles from such location.





                                      -3-
<PAGE>   4
                                  (ii) During the Employment Period, and
excluding any periods of vacation and sick leave to which the Executive is
entitled, the Executive agrees to devote reasonable attention and time during
normal business hours to the business and affairs of the Company and, to the
extent necessary to discharge the responsibilities assigned to the Executive
hereunder, to use the Executive's reasonable best efforts to perform faithfully
and efficiently such responsibilities.  During the Employment Period it shall
not be a violation of this Agreement for the Executive to (A) serve on
corporate, civic or charitable boards or committees, (B) deliver lectures,
fulfill speaking engagements or teach at educational institutions and (C)
manage personal investments, so long as such activities do not significantly
interfere with the performance of the Executive's responsibilities as an
employee of the Company in accordance with this Agreement.  It is expressly
understood and agreed that to the extent that any such activities have been
conducted by the Executive prior to the Effective Date, the continued conduct
of such activities (or the conduct of activities similar in nature and scope
thereto) subsequent to the Effective Date shall not thereafter be deemed to
interfere with the performance of the Executive's responsibilities to the
Company.

                 (b) Compensation.  (i)  Base Salary.  During the Employment
Period, the Executive shall receive an annual base salary ("Annual Base
Salary"), which shall be paid at a monthly rate, at least equal to 12 times the
highest monthly base salary paid or payable, including any base salary which
has been earned but deferred, to the Executive by the Company and its
affiliated companies in respect of the twelve-month period immediately
preceding the month in which the Effective Date occurs.  During the Employment
Period, the Annual Base Salary shall be reviewed within 12 months after the
last salary increase awarded to the Executive prior to the Effective Date and
thereafter at least annually.  Any increase in Annual Base Salary shall not
serve to limit or reduce any other obligation to the Executive under this
Agreement.  Annual Base Salary shall not be reduced after any such increase and
the term Annual Base Salary as utilized in this Agreement shall refer to Annual
Base Salary as so increased.  As used in this Agreement, the term "affiliated
companies" shall include any company controlled by, controlling or under common
control with the Company.





                                      -4-
<PAGE>   5
                                  (ii) Annual Bonus.  In addition to Annual
Base Salary, the Executive shall be awarded, for each fiscal year ending during
the Employment Period, an annual bonus (the "Annual Bonus") in cash at least
equal to the Executive's target annual bonus under the Company's Short-Term
Incentive Compensation Plan for 1997 ("1997 Target Bonus") or, if higher, the
Executive's greatest target annual bonus in any subsequent year prior to the
Effective Date.  Each such Annual Bonus shall be paid no later than the end of
the third month of the fiscal year next following the fiscal year for which the
Annual Bonus is awarded, unless the Executive shall elect to defer the receipt
of such Annual Bonus.

                                  (iii)  Incentive, Savings and Retirement
Plans.  During the Employment Period, the Executive shall be entitled to
participate in all incentive, savings and retirement plans, practices, policies
and programs applicable generally to other peer executives of the Company and
its affiliated companies, but in no event shall such plans, practices, policies
and programs provide the Executive with incentive opportunities (measured with
respect to both regular and special incentive opportunities, to the extent, if
any, that such distinction is applicable), savings opportunities and retirement
benefit opportunities, in each case, less favorable, in the aggregate, than the
most favorable of those provided by the Company and its affiliated companies
for the Executive under such plans, practices, policies and programs as in
effect at any time during the 120-day period immediately preceding the
Effective Date or if more favorable to the Executive, those provided generally
at any time after the Effective Date to other peer executives of the Company
and its affiliated companies.

                                  (iv)  Welfare Benefit Plans.  During the
Employment Period, the Executive and/or the Executive's family, as the case may
be, shall be eligible for participation in and shall receive all benefits under
welfare benefit plans, practices, policies and programs provided by the Company
and its affiliated companies (including, without limitation, medical,
prescription, dental, disability, salary continuance, employee life, group
life, accidental death and travel accident insurance plans and programs) to the
extent applicable generally to other peer executives of the Company and its
affiliated companies, but in no event shall such plans, practices, policies and
programs provide the Executive with benefits which are less favorable, in the
aggregate, than the most favorable of such plans, practices, policies and
programs in effect for





                                      -5-
<PAGE>   6
the Executive at any time during the 120-day period immediately preceding the
Effective Date or, if more favorable to the Executive, those provided generally
at any time after the Effective Date to other peer executives of the Company
and its affiliated companies.

                                  (v)  Expenses.  During the Employment Period,
the Executive shall be entitled to receive prompt reimbursement for all
reasonable expenses incurred by the Executive in accordance with the most
favorable policies, practices and procedures of the Company and its affiliated
companies in effect for the Executive at any time during the 120-day period
immediately preceding the Effective Date or, if more favorable to the
Executive, as in effect generally at any time thereafter with respect to other
peer executives of the Company and its affiliated companies.

                                  (vi)  Fringe Benefits.  During the Employment
Period, the Executive shall be entitled to fringe benefits, including, without
limitation, tax and financial planning services, payment of club dues, and, if
applicable, use of an automobile (or an automobile allowance) and payment of
related expenses, in accordance with the most favorable plans, practices,
programs and policies of the Company and its affiliated companies in effect for
the Executive at any time during the 120-day period immediately preceding the
Effective Date or, if more favorable to the Executive, as in effect generally
at any time thereafter with respect to other peer executives of the Company and
its affiliated companies.

                                  (vii)  Office and Support Staff.  During the
Employment Period, the Executive shall be entitled to an office or offices of a
size and with furnishings and other appointments, and to exclusive personal
secretarial and other assistance, at least equal to the most favorable of the
foregoing provided to the Executive by the Company and its affiliated companies
at any time during the 120-day period immediately preceding the Effective Date
or, if more favorable to the Executive, as provided generally at any time
thereafter with respect to other peer executives of the Company and its
affiliated companies.

                                  (viii)  Vacation.  During the Employment
Period, the Executive shall be entitled to paid vacation in accordance with the
most favorable plans, policies, programs and practices of the Company and its
affiliated companies as in effect for the Executive at any time





                                      -6-
<PAGE>   7
during the 120-day period immediately preceding the Effective Date or, if more
favorable to the Executive, as in effect generally at any time thereafter with
respect to other peer executives of the Company and its affiliated companies.

                 5. Termination of Employment.  (a)  Death or Disability.  The
Executive's employment shall terminate automatically upon the Executive's death
during the Employment Period.  If the Company determines in good faith that the
Disability of the Executive has occurred during the Employment Period (pursuant
to the definition of Disability set forth below), it may give to the Executive
written notice in accordance with Section 12(b) of this Agreement of its
intention to terminate the Executive's employment.  In such event, the
Executive's employment with the Company shall terminate effective on the 30th
day after receipt of such notice by the Executive (the "Disability Effective
Date"), provided that, within the 30 days after such receipt, the Executive
shall not have returned to full-time performance of the Executive's duties.
For purposes of this Agreement, "Disability" shall mean the absence of the
Executive from the Executive's duties with the Company on a full-time basis for
180 consecutive business days as a result of incapacity due to mental or
physical illness which is determined to be total and permanent by a physician
selected by the Company or its insurers  and acceptable to the Executive or the
Executive's legal representative.

                 (b)  Cause.  The Company may terminate the Executive's
employment during the Employment Period for Cause.  For purposes of this
Agreement, "Cause" shall mean:

                                  (i)      the willful and continued failure of
         the Executive to perform substantially the Executive's duties with the
         Company or one of its affiliates (other than any such failure
         resulting from incapacity due to physical or mental illness), after a
         written demand for substantial performance is delivered to the
         Executive by the Board or the Chief Executive Officer of the Company
         which specifically identifies the manner in which the Board or Chief
         Executive Officer believes that the Executive has not substantially
         performed the Executive's duties, or

                                  (ii)     the willful engaging by the
         Executive in illegal conduct or gross misconduct which is materially
         and demonstrably injurious to the Company.

For purposes of this provision, no act or failure to act, on the part of the
Executive, shall be considered "willful" unless it is done, or omitted to be
done, by the Executive in bad faith or





                                      -7-
<PAGE>   8
without reasonable belief that the Executive's action or omission was in the
best interests of the Company.  Any act, or failure to act, based upon
authority given pursuant to a resolution duly adopted by the Board or upon the
instructions of the Chief Executive Officer or a senior officer of the Company
or based upon the advice of counsel for the Company shall be conclusively
presumed to be done, or omitted to be done, by the Executive in good faith and
in the best interests of the Company.  The cessation of employment of the
Executive shall not be deemed to be for Cause unless and until there shall have
been delivered to the Executive a copy of a resolution duly adopted by the
affirmative vote of not less than three-quarters of the entire membership of
the Board at a meeting of the Board called and held for such purpose (after
reasonable notice is provided to the Executive and the Executive is given an
opportunity, together with counsel, to be heard before the Board), finding
that, in the good faith opinion of the Board, the Executive is guilty of the
conduct described in subparagraph (i) or (ii) above, and specifying the
particulars thereof in detail.

                 (c)  Good Reason.  The Executive's employment may be
terminated by the Executive for Good Reason.  For purposes of this Agreement,
"Good Reason" shall mean:

                                  (i)      the assignment to the Executive of
         any duties inconsistent in any respect with the Executive's position
         (including status, offices, titles and reporting requirements),
         authority, duties or responsibilities as contemplated by Section 4(a)
         of this Agreement, or any other action by the Company which results in
         a diminution in such position, authority, duties or responsibilities,
         excluding for this purpose an isolated, insubstantial and inadvertent
         action not taken in bad faith and which is remedied by the Company
         promptly after receipt of notice thereof given by the Executive;

                                  (ii)     any failure by the Company to comply
         with any of the provisions of Section 4(b) of this Agreement, other
         than an isolated, insubstantial and inadvertent failure not occurring
         in bad faith and which is remedied by the Company promptly after
         receipt of notice thereof given by the Executive;

                                  (iii)    the Company's requiring the
         Executive to be based at any office or location other than as provided
         in Section 4(a)(i)(B) hereof or the Company's requiring the Executive
         to travel on Company business to a substantially greater extent than
         required immediately prior to the Effective Date;

                                  (iv)     any purported termination by the
         Company of the Executive's employment otherwise than as expressly
         permitted by this Agreement; or





                                      -8-
<PAGE>   9
                                  (v)      any failure by the Company to
         comply with and satisfy Section 11(c) of this Agreement.

For purposes of this Section 5(c), any good faith determination of "Good
Reason" made by the Executive shall be conclusive.  Anything in this Agreement
to the contrary notwithstanding, a termination by the Executive for any reason
during the 30-day period immediately following the first anniversary of the
Effective Date shall be deemed to be a termination for Good Reason for all
purposes of this Agreement.

                 (d)  Notice of Termination.  Any termination by the Company
for Cause, or by the Executive for Good Reason, shall be communicated by Notice
of Termination to the other party hereto given in accordance with Section 12(b)
of this Agreement.  Such Notice of Termination for Cause shall be given within
90 days following the Company's "actual" knowledge of any event constituting
Cause, and such Notice of Termination for Good Reason shall be given within 180
days following the Executive's "actual" knowledge of an event constituting Good
Reason.  For purposes of this Agreement, a "Notice of Termination" means a
written notice which (i) indicates the specific termination provision in this
Agreement relied upon, (ii) to the extent applicable, sets forth in reasonable
detail the facts and circumstances claimed to provide a basis for termination
of the Executive's employment under the provision so indicated and (iii) if the
Date of Termination (as defined below) is other than the date of receipt of
such notice, specifies the termination date (which date shall be not more than
thirty days after the giving of such notice).  The failure by the Executive or
the Company to set forth in the Notice of Termination any fact or circumstance
which contributes to a showing of Good Reason or Cause shall not waive any
right of the Executive or the Company, respectively, hereunder or preclude the
Executive or the Company, respectively, from asserting such fact or
circumstance in enforcing the Executive's or the Company's rights hereunder.

                 (e)  Date of Termination.  "Date of Termination" means (i) if
the Executive's employment is terminated by the Company for Cause, or by the
Executive for Good Reason, the date of receipt of the Notice of Termination or
any later date specified therein, as the case may be, (ii) if the Executive's
employment is terminated by the Company other than for Cause or Disability, the
date on which the Company notifies the Executive of such termination and (iii)
if





                                      -9-
<PAGE>   10
the Executive's employment is terminated by reason of death or Disability, the
date of death of the Executive or the Disability Effective Date, as the case
may be.

                 6. Obligations of the Company upon Termination.  (a) Good
Reason; Other Than for Cause, Death or Disability.  If, during the Employment
Period, the Company shall terminate the Executive's employment other than for
Cause or Disability or the Executive shall terminate employment for Good
Reason:

                   (i)            the Company shall pay to the Executive in a
         lump sum in cash within 30 days after the Date of Termination the
         aggregate of the following amounts:

                                  (A)  the sum of (1) the Executive's Annual
                 Base Salary through the Date of Termination to the extent not
                 theretofore paid, (2) the product of (x) the greater of (a)
                 the 1997 Target Bonus and (b) the Executive's highest target
                 annual bonus for any fiscal year that begins both subsequent
                 to 1997 and within 3 years prior to the Date of Termination
                 (such greater amount, the "Highest Target Bonus") and (y) a
                 fraction, the numerator of which is the number of days in the
                 current fiscal year through the Date of Termination, and the
                 denominator of which is 365 and (3) any compensation
                 previously deferred by the Executive (together with any
                 accrued interest or earnings thereon) and any accrued vacation
                 pay, in each case to the extent not theretofore paid (the sum
                 of the amounts described in clauses (1), (2), and (3) shall be
                 hereinafter referred to as the "Accrued Obligations"); and

                                  (B)  the amount equal to the product of (1) 3
                 and (2) the sum of (x) the Executive's Annual Base Salary and
                 (y) the Highest Target Bonus; and

                                  (C)  an amount equal to the difference
                 between (a) the aggregate benefit under the Company's
                 qualified defined benefit retirement plans (collectively, the
                 "Retirement Plan") and any excess or supplemental defined
                 benefit retirement plans in which the Executive participates
                 (collectively, the "SERP") which the Executive would have
                 accrued (whether or not vested) if the Executive's employment
                 had continued for 3 years after the Date of Termination (based
                 on the assumption that the Executive's compensation in each of
                 the 3 years following such termination would have been that
                 required by Section 4(b)(i) and Section 4(b)(ii)) and (b) the
                 actual vested benefit, if any, of the Executive under the
                 Retirement Plan and the SERP, determined as of the Date of
                 Termination (with the foregoing amounts to be computed on an
                 actuarial present value basis using actuarial assumptions no
                 less favorable to the Executive than the most favorable of
                 those in effect for purposes of computing benefit entitlements
                 under the Retirement Plan and the SERP at any time from the
                 day before the Effective Date) through the Date of
                 Termination;





                                      -10-
<PAGE>   11
                   (ii)           for 3 years after the Executive's Date of
         Termination, or such longer period as may be provided by the terms of
         the appropriate plan, program, practice or policy, the Company shall
         continue benefits to the Executive and/or the Executive's family at
         least equal to those which would have been provided to them in
         accordance with the plans, programs, practices and policies described
         in Section 4(b)(iv) of this Agreement if the Executive's employment
         had not been terminated or, if more favorable to the Executive, as in
         effect generally at any time thereafter with respect to other peer
         executives of the Company and its affiliated companies and their
         families, provided, however, that if the Executive becomes reemployed
         with another employer and is eligible to receive medical or other
         welfare benefits under another employer-provided plan, the medical and
         other welfare benefits described herein shall be secondary to those
         provided under such other plan during such applicable period of
         eligibility, and for purposes of determining eligibility (but not the
         time of commencement of benefits) of the Executive for retiree
         benefits pursuant to such plans, practices, programs and policies, the
         Executive shall be considered to have remained employed until 3 years
         after the Date of Termination and to have retired on the last day of
         such period;

                   (iii)          the Company shall, at its sole expense as
         incurred, provide the Executive with outplacement services the scope
         and provider of which shall be selected by the Executive in the
         Executive's sole discretion; provided, however, that the Company shall
         not be obligated to provide such services for a period of more than
         one year after the Date of Termination or at an aggregate cost in
         excess of $20,000; and

                   (iv)           to the extent not theretofore paid or
         provided, the Company shall timely pay or provide to the Executive any
         other amounts or benefits required to be paid or provided or which the
         Executive is eligible to receive under any plan, program, policy or
         practice or contract or agreement of the Company and its affiliated
         companies (such other amounts and benefits shall be hereinafter
         referred to as the "Other Benefits").

                 (b)  Death.  If the Executive's employment is terminated by
reason of the Executive's death during the Employment Period, this Agreement
shall terminate without further obligations to the Executive's legal
representatives under this Agreement, other than for payment of Accrued
Obligations and the timely payment or provision of Other Benefits.  Accrued
Obligations shall be paid to the Executive's estate or beneficiary, as
applicable, in a lump sum in cash within 30 days after the Date of Termination.
With respect to the provision of Other Benefits, the term Other Benefits as
utilized in this Section 6(b) shall include, without limitation, and the
Executive's estate and/or beneficiaries shall be entitled to receive, benefits
at least equal to the most favorable benefits provided by the Company and
affiliated companies to the estates and beneficiaries of peer executives of the
Company and such affiliated companies under such plans, programs, practices and
policies relating to death benefits, if any, as in effect with respect





                                      -11-
<PAGE>   12
to other peer executives and their beneficiaries at any time during the 120-day
period immediately preceding the Effective Date or, if more favorable to the
Executive's estate and/or the Executive's beneficiaries, as in effect on the
date of the Executive's death with respect to other peer executives of the
Company and its affiliated companies and their beneficiaries.

                 (c)  Disability.  If the Executive's employment is terminated
by reason of the Executive's Disability during the Employment Period, this
Agreement shall terminate without further obligations to the Executive, other
than for payment of Accrued Obligations and the timely payment or provision of
Other Benefits.  Accrued Obligations shall be paid to the Executive in a lump
sum in cash within 30 days after the Date of Termination.  With respect to the
provision of Other Benefits, the term Other Benefits as utilized in this
Section 6(c) shall include, and the Executive shall be entitled after the
Disability Effective Date to receive, disability and other benefits at least
equal to the most favorable of those generally provided by the Company and its
affiliated companies to disabled executives and/or their families in accordance
with such plans, programs, practices and policies relating to disability, if
any, as in effect generally with respect to other peer executives and their
families at any time during the 120-day period immediately preceding the
Effective Date or, if more favorable to the Executive and/or the Executive's
family, as in effect at any time thereafter generally with respect to other
peer executives of the Company and its affiliated companies and their families.

                 (d)  Cause; Other than for Good Reason.  If the Executive's
employment shall be terminated for Cause during the Employment Period, this
Agreement shall terminate without further obligations to the Executive other
than the obligation to pay to the Executive (x) the Annual Base Salary through
the Date of Termination, (y) the amount of any compensation previously deferred
by the Executive, and (z) Other Benefits, in each case to the extent
theretofore unpaid.  If the Executive voluntarily terminates employment during
the Employment Period, excluding a termination for Good Reason, this Agreement
shall terminate without further obligations to the Executive, other than for
Accrued Obligations and the timely payment or provision of Other Benefits.  In
such case, all Accrued Obligations shall be paid to the Executive in a lump sum
in cash within 30 days of the Date of Termination.





                                      -12-
<PAGE>   13
                 7.  Non-exclusivity of Rights.  Nothing in this Agreement
shall prevent or limit the Executive's continuing or future participation in
any plan, program, policy or practice provided by the Company or any of its
affiliated companies and for which the Executive may qualify, nor, subject to
Section 12(f), shall anything herein limit or otherwise affect such rights as
the Executive may have under any contract or agreement with the Company or any
of its affiliated companies.  Amounts which are vested benefits or which the
Executive is otherwise entitled to receive under any plan, policy, practice or
program of or any contract or agreement with the Company or any of its
affiliated companies at or subsequent to the Date of Termination shall be
payable in accordance with such plan, policy, practice or program or contract
or agreement except as explicitly modified by this Agreement.

                 8.  Full Settlement; Legal Fees.  The Company's obligation to
make the payments provided for in this Agreement and otherwise to perform its
obligations hereunder shall not be affected by any set-off, counterclaim,
recoupment, defense or other claim, right or action which the Company may have
against the Executive or others.  In no event shall the Executive be obligated
to seek other employment or take any other action by way of mitigation of the
amounts payable to the Executive under any of the provisions of this Agreement
and except as specifically provided in Section 6(a)(ii), such amounts shall not
be reduced whether or not the Executive obtains other employment.  The Company
agrees to pay as incurred, to the full extent permitted by law, all legal fees
and expenses which the Executive may reasonably incur as a result of any
contest (regardless of the outcome thereof) by the Company, the Executive or
others of the validity or enforceability of, or liability or entitlement under,
any provision of this Agreement or any guarantee of performance thereof
(whether such contest is between the Company and the Executive or between
either of them and any third party, and including as a result of any contest by
the Executive about the amount of any payment pursuant to this Agreement), plus
in each case interest on any delayed payment at 120% of the applicable Federal
rate (that applies to the time period of the delay) provided for in Section
7872(f)(2)(A) of the Internal Revenue Code of 1986, as amended (the "Code"),
compounded annually.





                                      -13-
<PAGE>   14
                 9.  Certain Additional Payments by the Company.

                 (a)  Anything in this Agreement to the contrary
notwithstanding, in the event it shall be determined that any payment, award,
benefit or distribution by the Company (or any of its affiliated entities) or
by any entity which effectuates a Change of Control (or any of its affiliated
entities) to or for the benefit of the Executive (whether pursuant to the terms
of this Agreement or otherwise, but determined without regard to any additional
payments required under this Section 9) (a "Payment") would be subject to the
excise tax imposed by Section 4999 of the Code or any corresponding provisions
of state or local tax laws, or any interest or penalties are incurred by the
Executive with respect to such excise tax (such excise tax, together with any
such interest and penalties, are hereinafter collectively referred to as the
"Excise Tax"), then the Executive shall be entitled to receive an additional
payment (a "Gross-Up Payment") in an amount such that after payment by the
Executive of all taxes (including any interest or penalties imposed with
respect to such taxes), including, without limitation, any income taxes (and
any interest and penalties imposed with respect thereto) and Excise Tax imposed
upon the Gross-Up Payment, the Executive retains an amount of the Gross-Up
Payment equal to the Excise Tax imposed upon the Payments.  The payment of a
Gross-Up Payment under this Section 9(a) shall not be conditioned upon the
Executive's termination of employment.

                 (b)  Subject to the provisions of Section 9(c), all
determinations required to be made under this Section 9, including whether and
when a Gross-Up Payment is required and the amount of such Gross-Up Payment and
the assumptions to be utilized in arriving at such determination, shall be made
by Price Waterhouse LLP or such other certified public accounting firm as may
be designated by the Executive (the "Accounting Firm"), which shall provide
detailed supporting calculations both to the Company and the Executive within
15 business days of the receipt of notice from the Executive that there has
been a Payment, or such earlier time as is requested by the Company.  In the
event that the Accounting Firm is serving as accountant or auditor for the
individual, entity or group effecting the Change of Control, the Executive
shall appoint another nationally recognized accounting firm to make the
determinations required hereunder (which accounting firm shall then be referred
to as the Accounting Firm hereunder).  All fees and expenses of the Accounting
Firm shall be borne solely by the Company.  Any





                                      -14-
<PAGE>   15
Gross-Up Payment, as determined pursuant to this Section 9, shall be paid by
the Company to the Executive within 5 days after the receipt of the Accounting
Firm's determination.  Any determination by the Accounting Firm shall be
binding upon the Company and the Executive.  As a result of the uncertainty in
the application of Section 4999 of the Code at the time of the initial
determination by the Accounting Firm hereunder, it is possible that Gross-Up
Payments which will not have been made by the Company should have been made
("Underpayment"), consistent with the calculations required to be made
hereunder.  In the event that the Company exhausts its remedies pursuant to
Section 9(c) and the Executive thereafter is required to make a payment of any
Excise Tax, the Accounting Firm shall determine the amount of the Underpayment
that has occurred and any such Underpayment shall be promptly paid by the
Company to or for the benefit of the Executive.

                 (c)  The Executive shall notify the Company in writing of any
claim by the Internal Revenue Service that, if successful, would require the
payment by the Company of the Gross-Up Payment.  Such notification shall be
given as soon as practicable but no later than ten business days after the
Executive is informed in writing of such claim and shall apprise the Company of
the nature of such claim and the date on which such claim is requested to be
paid.  The Executive shall not pay such claim prior to the expiration of the
30-day period following the date on which the Executive gives such notice to
the Company (or such shorter period ending on the date that any payment of
taxes with respect to such claim is due).  If the Company notifies the
Executive in writing prior to the expiration of such period that it desires to
contest such claim, the Executive shall:

                                  (i)      give the Company any information
         reasonably requested by the Company relating to such claim,

                                  (ii)     take such action in connection with
         contesting such claim as the Company shall reasonably request in
         writing from time to time, including, without limitation, accepting
         legal representation with respect to such claim by an attorney
         reasonably selected by the Company,

                                  (iii)    cooperate with the Company in good
         faith in order effectively to contest such claim, and





                                      -15-
<PAGE>   16
                                  (iv)     permit the Company to participate
         in any proceedings relating to such claim;

provided, however, that the Company shall bear and pay directly all costs and
expenses (including additional interest and penalties) incurred in connection
with such contest and shall indemnify and hold the Executive harmless, on an
after-tax basis, for any Excise Tax or income tax (including interest and
penalties with respect thereto) imposed as a result of such representation and
payment of costs and expenses.  Without limitation on the foregoing provisions
of this Section 9(c), the Company shall control all proceedings taken in
connection with such contest and, at its sole option, may pursue or forgo any
and all administrative appeals,  proceedings, hearings and conferences with the
taxing authority in respect of such claim and may, at its sole option, either
direct the Executive to pay the tax claimed and sue for a refund or contest the
claim in any permissible manner, and the Executive agrees to prosecute such
contest to a determination before any administrative tribunal, in a court of
initial jurisdiction and in one or more appellate courts, as the Company shall
determine; provided, however, that if the Company directs the Executive to pay
such claim and sue for a refund, the Company shall advance the amount of such
payment to the Executive, on an interest-free basis and shall indemnify and
hold the Executive harmless, on an after-tax basis, from any Excise Tax or
income tax (including interest or penalties with respect thereto) imposed with
respect to such advance or with respect to any imputed income with respect to
such advance; and further provided that any extension of the statute of
limitations relating to payment of taxes for the taxable year of the Executive
with respect to which such contested amount is claimed to be due is limited
solely to such contested amount.  Furthermore, the Company's control of the
contest shall be limited to issues with respect to which a Gross-Up Payment
would be payable hereunder and the Executive shall be entitled to settle or
contest, as the case may be, any other issue raised by the Internal Revenue
Service or any other taxing authority.

                 (d)  If, after the receipt by the Executive of an amount
advanced by the Company pursuant to Section 9(c), the Executive becomes
entitled to receive any refund with respect to such claim, the Executive shall
(subject to the Company's complying with the requirements of Section 9(c))
promptly pay to the Company the amount of such refund (together with any
interest





                                      -16-
<PAGE>   17
paid or credited thereon after deducting an amount sufficient to pay applicable
federal, state and local taxes on such interest at the highest marginal rates
applicable thereto).  If, after the receipt by the Executive of an amount
advanced by the Company pursuant to Section 9(c), a determination is made that
the Executive shall not be entitled to any refund with respect to such claim
and the Company does not notify the Executive in writing of its intent to
contest such denial of refund prior to the expiration of 30 days after such
determination, then such advance shall be forgiven and shall not be required to
be repaid and the amount of such advance shall offset, to the extent thereof,
the amount of Gross-Up Payment required to be paid.

                 10.  Confidential Information.  The Executive shall hold in a
fiduciary capacity for the benefit of the Company all secret or confidential
information, knowledge or data relating to the Company or any of its affiliated
companies, and their respective businesses, which shall have been obtained by
the Executive during the Executive's employment by the Company or any of its
affiliated companies and which shall not be or become public knowledge (other
than by acts by the Executive or representatives of the Executive in violation
of this Agreement).  After termination of the Executive's employment with the
Company, the Executive shall not, without the prior written consent of the
Company or as may otherwise be required by law or legal process, communicate or
divulge any such information, knowledge or data to anyone other than the
Company and those designated by it.  In no event shall an asserted violation of
the provisions of this Section 10 constitute a basis for deferring or
withholding any amounts otherwise payable to the Executive under this
Agreement.

                 11. Successors.  (a)  This Agreement is personal to the
Executive and without the prior written consent of the Company shall not be
assignable by the Executive otherwise than by will or the laws of descent and
distribution.  This Agreement shall inure to the benefit of and be enforceable
by the Executive's legal representatives.

                 (b)  This Agreement shall inure to the benefit of and be
binding upon the Company and its successors and assigns.

                 (c)  The Company will require any successor (whether direct or
indirect, by purchase, merger, consolidation or otherwise) to all or
substantially all of the business and/or





                                      -17-
<PAGE>   18
assets of the Company to assume expressly and agree to perform this Agreement
in the same manner and to the same extent that the Company would be required to
perform it if no such succession had taken place.  As used in this Agreement,
"Company" shall mean the Company as hereinbefore defined and any successor to
its business and/or assets as aforesaid which assumes and agrees to perform
this Agreement by operation of law, or otherwise.

                 12.  Miscellaneous.  (a)  This Agreement shall be governed by
and construed in accordance with the laws of the State of Delaware, without
reference to principles of conflict of laws.  The captions of this Agreement
are not part of the provisions hereof and shall have no force or effect.  This
Agreement may not be amended or modified otherwise than by a written agreement
executed by the parties hereto or their respective successors and legal
representatives.

                 (b)  All notices and other communications hereunder shall be
in writing and shall be given by hand delivery to the other party or by
registered or certified mail, return receipt requested, postage prepaid,
addressed as follows:

                 If to the Executive:

                 Mark A. Schoder
                 2707 Oakmont
                 Fort Lauderdale, Florida  33332

                 If to the Company:

                 John Alden Financial Corporation
                 7300 Corporate Center Drive
                 Miami, FL  33126-1223

                            Attention:  General Counsel

or to such other address as either party shall have furnished to the other in
writing in accordance herewith.  Notice and communications shall be effective
when actually received by the addressee.





                                      -18-
<PAGE>   19
                 (c)  The invalidity or unenforceability of any provision of
this Agreement shall not affect the validity or enforceability of any other
provision of this Agreement.

                 (d)  The Company may withhold from any amounts payable under
this Agreement such Federal, state, local or foreign taxes as shall be required
to be withheld pursuant to any applicable law or regulation.

                 (e)  The Executive's or the Company's failure to insist upon
strict compliance with any provision hereof or any other provision of this
Agreement or the failure to assert any right the Executive or the Company may
have hereunder, including, without limitation, the right of the Executive to
terminate employment for Good Reason pursuant to Section 5(c)(i)-(v) of this
Agreement, shall not be deemed to be a waiver of such provision or right or any
other provision or right of this Agreement.

                 (f)  The Executive and the Company acknowledge that, except as
may otherwise be provided under any other written agreement between the
Executive and the Company, the employment of the Executive by the Company is
"at will" and, prior to the Effective Date, the Executive's employment may be
terminated by either the Executive or the Company at any time prior to the
Effective Date, in which case the Executive shall have no further rights under
this Agreement.  From and after the Effective Date this Agreement shall
supersede any other agreement between the parties with respect to the subject
matter hereof, including, without limitation, the right of the Executive to
participate in any severance plan of the Company or otherwise receive severance
benefits from the Company.





                                      -19-
<PAGE>   20
                 IN WITNESS WHEREOF, the Executive has hereunto set the
Executive's hand and, pursuant to the authorization from its Board of
Directors, the Company has caused this Agreement to be executed in its name on
its behalf, all as of the day and year first above written.


                                    JOHN ALDEN FINANCIAL CORPORATION

                                    By: /s/ SCOTT L. STANTON
                                       --------------------------------

                                    Title: Senior Vice President and 
                                          -----------------------------
                                           Chief Financial Officer
                                          -----------------------------

                                     /s/ MARK A. SCHODER
                                    -----------------------------------
                                               Mark A. Schoder



                                      -20-

<PAGE>   1
                                                                 EXHIBIT 10.71


                               CHANGE OF CONTROL
                              EMPLOYMENT AGREEMENT


                 AGREEMENT by and between John Alden Financial Corporation, a
Delaware corporation (the "Company") and Anne V.  Wardlow (the "Executive"),
dated as of the 5th day of November, 1997.

                 The Board of Directors of the Company (the "Board"), has
determined that it is in the best interests of the Company and its shareholders
to assure that the Company will have the continued dedication of the Executive,
notwithstanding the possibility, threat or occurrence of a Change of Control
(as defined below) of the Company.  The Board believes it is imperative to
diminish the inevitable distraction of the Executive by virtue of the personal
uncertainties and risks created by a pending or threatened Change of Control
and to encourage the Executive's full attention and dedication to the Company
currently and in the event of any threatened or pending Change of Control, and
to provide the Executive with compensation and benefits arrangements upon a
Change of Control which ensure that the compensation and benefits expectations
of the Executive will be satisfied and which are competitive with those of
other corporations.  Therefore, in order to accomplish these objectives, the
Board has caused the Company to enter into this Agreement.

                 NOW, THEREFORE, IT IS HEREBY AGREED AS FOLLOWS:

                 1.       Certain Definitions.  (a)  The "Effective Date" shall
mean the first date during the Change of Control Period (as defined in Section
1(b)) on which a Change of Control (as defined in Section 2) occurs.  Anything
in this Agreement to the contrary notwithstanding, if a Change of Control
occurs and  if the Executive's employment with the Company is terminated prior
to the date on which the Change of Control occurs, and if it is reasonably
demonstrated by the Executive that such termination of employment (i) was at
the request of a third party who has taken steps reasonably calculated to
effect a Change of Control or (ii) otherwise arose in connection with or
anticipation of a Change of Control, then for all purposes of this Agreement
the "Effective Date" shall mean the date immediately prior to the date of such
termination of employment.
<PAGE>   2


                 (b)      The "Change of Control Period" shall mean the period
commencing on the date hereof and ending on the third anniversary of the date
hereof; provided, however, that commencing on the date one year after the date
hereof, and on each annual anniversary of such date (such date and each annual
anniversary thereof shall be hereinafter referred to as the "Renewal Date"),
unless previously terminated, the Change of Control Period shall be
automatically extended so as to terminate 3 years from such Renewal Date,
unless at least 60 days prior to the Renewal Date the Company shall give notice
to the Executive that the Change of Control Period shall not be so extended.

                 2.       Change of Control.  For the purpose of this
Agreement, a "Change of Control" shall mean:

                 (a)  The acquisition by any individual, entity or group
         (within the meaning of Section 13(d)(3) or 14(d)(2) of the Securities
         Exchange Act of 1934, as amended (the "Exchange Act")) (a "Person") of
         beneficial ownership (within the meaning of Rule 13d-3 promulgated
         under the Exchange Act) of 20% or more of either (i) the then
         outstanding shares of common stock of the Company (the "Outstanding
         Company Common Stock") or (ii) the combined voting power of the then
         outstanding voting securities of the Company entitled to  vote
         generally in the election of directors (the "Outstanding Company
         Voting Securities"); provided, however, that for purposes of this
         subsection (a), the following acquisitions shall not constitute a
         Change of Control:  (i) any acquisition directly from the Company,
         (ii) any acquisition by the Company, (iii) any acquisition by any
         employee benefit plan (or related trust) sponsored or maintained by
         the Company or any corporation controlled by the Company or (iv) any
         acquisition pursuant to a transaction which complies with clauses (i),
         (ii) and (iii) of subsection (c) of this Section 2; or

                 (b)  Individuals who, as of the date hereof, constitute the
         Board (the "Incumbent Board") cease for any reason to constitute at
         least a majority of the Board; provided, however, that any individual
         becoming a director subsequent to the date hereof whose election, or
         nomination for election by the Company's shareholders, was approved by
         a vote of at least a majority of the directors then comprising the
         Incumbent Board shall be considered as though such individual were a
         member of the Incumbent Board, but excluding, for this purpose, any
         such individual whose initial assumption of office occurs as a result
         of an actual or threatened election contest with respect to the
         election or removal of directors or other actual or threatened
         solicitation of proxies or consents by or on behalf of a Person other
         than the Board; or

                 (c)  Consummation by the Company of a reorganization, merger
         or consolidation or sale or other disposition of all or substantially
         all of the assets of the Company or the acquisition of assets of
         another entity (a "Business Combination"), in each case, unless,





                                      -2-
<PAGE>   3


         following such Business Combination, (i) all or substantially all of
         the individuals and entities who were the beneficial owners,
         respectively, of the Outstanding Company Common Stock and Outstanding
         Company Voting Securities immediately prior to such Business
         Combination beneficially own, directly or indirectly, more than 60%
         of, respectively, the then outstanding shares of common stock and the
         combined voting power of the then outstanding voting securities
         entitled to vote generally in the election of directors, as the case
         may be, of the corporation resulting from such Business Combination
         (including, without limitation, a corporation which as a result of
         such transaction owns the Company or all or substantially all of the
         Company's assets either directly or through one or more subsidiaries)
         in substantially the same proportions as their ownership, immediately
         prior to such Business Combination of the Outstanding Company Common
         Stock and Outstanding Company Voting Securities, as the case may be,
         (ii) no Person (excluding any employee benefit plan (or related trust)
         of the Company or such corporation resulting from such Business
         Combination) beneficially owns, directly or indirectly, 20% or more
         of, respectively, the then outstanding shares of common stock of the
         corporation resulting from such Business Combination or the combined
         voting power of the then outstanding voting securities of such
         corporation except to the extent that such ownership existed prior to
         the Business Combination and (iii) at least a majority of the members
         of the board of directors of the corporation resulting from such
         Business Combination were members of the Incumbent Board at the time
         of the execution of the initial agreement, or of the action of the
         Board, providing for such Business Combination; or

                 (d)  Approval by the shareholders of the Company of a complete
liquidation or dissolution of the Company.


                 3.       Employment Period.  The Company hereby agrees to
continue the Executive in its employ, and the Executive hereby agrees to remain
in the employ of the Company subject to the terms and conditions of this
Agreement, for the period commencing on the Effective Date and ending on the
third anniversary of such date (the "Employment Period").

                 4.       Terms of Employment.  (a)  Position and Duties.  (i)
During the Employment Period, (A) the Executive's position (including status,
offices, titles and reporting requirements), authority, duties and
responsibilities shall be at least commensurate in all material respects with
the most significant of those held, exercised and assigned to the Executive at
any time during the 120-day period immediately preceding the Effective Date and
(B) the Executive's services shall be performed at the location where the
Executive was employed immediately preceding the Effective Date or any office
or location less than 35 miles from such location.





                                      -3-
<PAGE>   4



                          (ii)    During the Employment Period, and excluding
any periods of vacation and sick leave to which the Executive is entitled, the
Executive agrees to devote reasonable attention and time during normal business
hours to the business and affairs of the Company and, to the extent necessary
to discharge the  responsibilities assigned to the Executive hereunder, to use
the Executive's reasonable best efforts to perform faithfully and efficiently
such responsibilities.  During the Employment Period it shall not be a
violation of this Agreement for the Executive to (A) serve on corporate, civic
or charitable boards or committees, (B) deliver lectures, fulfill speaking
engagements or teach at educational institutions and (C) manage personal
investments, so long as such activities do not significantly interfere with the
performance of the Executive's responsibilities as an employee of the Company
in accordance with this Agreement.  It is expressly understood and agreed that
to the extent that any such activities have been conducted by the Executive
prior to the Effective Date, the continued conduct of such activities (or the
conduct of activities similar in nature and scope thereto) subsequent to the
Effective Date shall not thereafter be deemed to interfere with the performance
of the Executive's responsibilities to the Company.

                 (b)      Compensation.  (i)  Base Salary.  During the
Employment Period, the Executive shall receive an annual base salary ("Annual
Base Salary"), which shall be paid at a monthly rate, at least equal to 12
times the highest monthly base salary paid or payable, including any base
salary which has been earned but deferred, to the Executive by the Company and
its affiliated companies in respect of the twelve-month period immediately
preceding the month in which the Effective Date occurs.  During the Employment
Period, the Annual Base Salary shall be reviewed within 12 months after the
last salary increase awarded to the Executive prior to the Effective Date and
thereafter at least annually.  Any increase in Annual Base Salary shall not
serve to limit or reduce any other obligation to the Executive under this
Agreement.  Annual Base Salary shall not be reduced after any such increase and
the term Annual Base Salary as utilized in this Agreement shall refer to Annual
Base Salary as so increased.  As used in this Agreement, the term "affiliated
companies" shall include any company controlled by, controlling or under common
control with the Company.





                                      -4-
<PAGE>   5


                          (ii)    Annual Bonus.  In addition to Annual Base
Salary, the Executive shall be awarded, for each fiscal year ending during the
Employment Period, an annual bonus (the "Annual Bonus") in cash at least equal
to the Executive's target annual bonus under the Company's Short-Term Incentive
Compensation Plan for 1997 ("1997 Target Bonus") or, if higher, the Executive's
greatest target annual bonus in any subsequent year prior to the Effective
Date.  Each such Annual Bonus shall be paid no later than the end of the third
month of the fiscal year next following the fiscal year for which the Annual
Bonus is awarded, unless the Executive shall elect to defer the receipt of such
Annual Bonus.

                          (iii)    Incentive, Savings and Retirement Plans.
During the Employment Period, the Executive shall be entitled to participate in
all incentive, savings and retirement plans, practices, policies and programs
applicable generally to other peer executives of the Company and its affiliated
companies, but in no event shall such plans, practices, policies and programs
provide the Executive with incentive opportunities (measured with  respect to
both regular and special incentive opportunities, to the extent, if any, that
such distinction is applicable), savings opportunities and retirement benefit
opportunities, in each case, less favorable, in the aggregate, than the most
favorable of those provided by the Company and its affiliated companies for the
Executive under such plans, practices, policies and programs as in effect at
any time during the 120-day period immediately preceding the Effective Date or
if more favorable to the Executive, those provided generally at any time after
the Effective Date to other peer executives of the Company and its affiliated
companies.

                          (iv)     Welfare Benefit Plans.  During the
Employment Period, the Executive and/or the Executive's family, as the case may
be, shall be eligible for participation in and shall receive all benefits under
welfare benefit plans, practices, policies and programs provided by the Company
and its affiliated companies (including, without limitation, medical,
prescription, dental, disability, salary continuance, employee life, group
life, accidental death and travel accident insurance plans and programs) to the
extent applicable generally to other peer executives of the Company and its
affiliated companies, but in no event shall such plans, practices, policies and
programs provide the Executive with benefits which are less favorable, in the
aggregate, than the most favorable of such plans, practices, policies and
programs in effect for





                                      -5-
<PAGE>   6


the Executive at any time during the 120-day period immediately preceding the
Effective Date or, if more favorable to the Executive, those provided generally
at any time after the Effective Date to other peer executives of the Company
and its affiliated companies.

                          (v)      Expenses.  During the Employment Period, the
Executive shall be entitled to receive prompt reimbursement for all reasonable
expenses incurred by the Executive in accordance with the most favorable
policies, practices and procedures of the Company and its affiliated companies
in effect for the Executive at any time during the 120-day period immediately
preceding the Effective Date or, if more favorable to the Executive, as in
effect generally at any time thereafter with respect to other peer executives
of the Company and its affiliated companies.

                          (vi)     Fringe Benefits.  During the Employment
Period, the Executive shall be entitled to fringe benefits, including, without
limitation, tax and financial planning services, payment of club dues, and, if
applicable, use of an automobile (or an automobile allowance) and payment of
related expenses, in accordance with the most favorable plans, practices,
programs and policies of the Company and its affiliated companies in effect for
the Executive at any time during the 120-day period immediately preceding the
Effective Date or, if more favorable to the Executive, as in effect generally
at any time thereafter with respect to other peer executives of the Company and
its affiliated companies.

                          (vii)    Office and Support Staff.  During the
Employment Period, the Executive shall be entitled to an office or offices of a
size and with furnishings and other appointments, and to exclusive personal
secretarial and other assistance, at  least equal to the most favorable of the
foregoing provided to the Executive by the Company and its affiliated companies
at any time during the 120-day period immediately preceding the Effective Date
or, if more favorable to the Executive, as provided generally at any time
thereafter with respect to other peer executives of the Company and its
affiliated companies.

                          (viii)   Vacation.  During the Employment Period,
the Executive shall be entitled to paid vacation in accordance with the most
favorable plans, policies, programs and practices of the Company and its
affiliated companies as in effect for the Executive at any time



                                      -6-
<PAGE>   7


during the 120-day period immediately preceding the Effective Date or, if more
favorable to the Executive, as in effect generally at any time thereafter with
respect to other peer executives of the Company and its affiliated companies.

                 5.       Termination of Employment.  (a)  Death or Disability.
The Executive's employment shall terminate automatically upon the Executive's
death during the Employment Period.  If the Company determines in good faith
that the Disability of the Executive has occurred during the Employment Period
(pursuant to the definition of Disability set forth below), it may give to the
Executive written notice in accordance with Section 12(b) of this Agreement of
its intention to terminate the Executive's employment.  In such event, the
Executive's employment with the Company shall terminate effective on the 30th
day after receipt of such notice by the Executive (the "Disability Effective
Date"), provided that, within the 30  days after such receipt, the Executive
shall not have returned to full-time performance of the Executive's duties.
For purposes of this Agreement, "Disability" shall mean the absence of the
Executive from the Executive's duties with the Company on a full-time basis for
180 consecutive business days as a result of incapacity due to mental or
physical illness which is determined to be total and permanent by a physician
selected by the Company or its insurers  and acceptable to the Executive or the
Executive's legal representative.

                          (b)     Cause.  The Company may terminate the
Executive's employment during the Employment Period for Cause.  For purposes of
this Agreement, "Cause" shall mean:

                                  (i)      the willful and continued failure of
               the Executive to perform substantially the Executive's duties
               with the Company or one of its affiliates (other than any such
               failure resulting from incapacity due to physical or mental
               illness), after a written demand for substantial performance is
               delivered to the Executive by the Board or the Chief Executive
               Officer of the Company which specifically identifies the manner
               in which the Board or Chief Executive Officer believes that the
               Executive has not substantially performed the Executive's
               duties, or

                                  (ii)     the willful engaging by the
               Executive in illegal conduct or gross misconduct which is
               materially and demonstrably injurious to the Company.


For purposes of this provision, no act or failure to act, on the part of the
Executive, shall be considered "willful" unless it is done, or omitted to be
done, by the Executive in bad faith or





                                      -7-
<PAGE>   8


without reasonable belief that the Executive's action or omission was in the
best interests of the Company.  Any act, or failure to act, based upon
authority given pursuant to a resolution duly adopted by the Board or upon the
instructions of the Chief Executive Officer or a senior officer of the Company
or based  upon the advice of counsel for the Company shall be conclusively
presumed to be done, or omitted to be done, by the Executive in good faith and
in the best interests of the Company.  The cessation of employment of the
Executive shall not be deemed to be for Cause unless and until there shall have
been delivered to the Executive a copy of a resolution duly adopted by the
affirmative vote of not less than three-quarters of the entire membership of
the Board at a meeting of the Board called and held for such purpose (after
reasonable notice is provided to the Executive and the Executive is given an
opportunity, together with counsel, to be heard before the Board), finding
that, in the good faith opinion of the Board, the Executive is guilty of the
conduct described in subparagraph (i) or (ii) above, and specifying the
particulars thereof in detail.

                 (c)      Good Reason.  The Executive's employment may be
terminated by the Executive for Good Reason.  For purposes of this Agreement,
"Good Reason" shall mean:

                                  (i)      the assignment to the Executive of
               any duties inconsistent in any respect with the Executive's
               position (including status, offices, titles and reporting
               requirements), authority, duties or responsibilities as
               contemplated by Section 4(a) of this Agreement, or any other
               action by the Company which results in a diminution in such
               position, authority, duties or responsibilities, excluding for
               this purpose an isolated, insubstantial and inadvertent action
               not taken in bad faith and which is remedied by the Company
               promptly after receipt of notice thereof given by the Executive;

                                  (ii)     any failure by the Company to comply
               with any of the provisions of Section 4(b) of this Agreement,
               other than an isolated, insubstantial and inadvertent failure
               not occurring in bad faith and which is remedied by the Company
               promptly after receipt of notice thereof given by the Executive;

                                  (iii)    the Company's requiring the
               Executive to be based at any office or location other than as
               provided in Section 4(a)(i)(B) hereof  or the Company's
               requiring the Executive to travel on Company business to a
               substantially greater extent than required immediately prior to
               the Effective Date;

                                  (iv)     any purported termination by the
               Company of the Executive's employment otherwise than as
               expressly  permitted by this Agreement; or





                                      -8-
<PAGE>   9



                                  (v)      any failure by the Company to
               comply with and satisfy Section 11(c) of this Agreement.

For purposes of this Section 5(c), any good faith determination of "Good
Reason" made by the Executive shall be conclusive.  Anything in this Agreement
to the contrary notwithstanding, a termination by the Executive for any reason
during the 30-day period immediately following the first anniversary of the
Effective Date shall be deemed to be a termination for Good Reason for all
purposes of this Agreement.

                 (d)      Notice of Termination.  Any termination by the
Company for Cause, or by the Executive for Good Reason, shall be communicated
by Notice of Termination to the other party hereto given in accordance with
Section 12(b) of this Agreement.  Such Notice of Termination for Cause shall be
given within 90 days following the Company's "actual" knowledge of any event
constituting Cause, and such Notice of Termination for Good Reason shall be
given within 180 days following the Executive's "actual" knowledge of an event
constituting Good Reason.  For purposes of this Agreement, a "Notice of
Termination" means a written notice which (i) indicates the specific
termination provision in this Agreement relied upon, (ii) to the extent
applicable, sets forth in reasonable detail the facts and circumstances claimed
to provide a basis for termination of the Executive's employment under the
provision so indicated and (iii) if the Date of Termination (as defined below)
is other than the  date of receipt of such notice, specifies the termination
date (which date shall be not more than thirty days after the giving of such
notice).  The failure by the Executive or the Company to set forth in the
Notice of Termination any fact or circumstance which contributes to a showing
of Good Reason or Cause shall not waive any right of the Executive or the
Company, respectively, hereunder or preclude the Executive or the Company,
respectively, from asserting such fact or circumstance in enforcing the
Executive's or the Company's rights hereunder.

                 (e)      Date of Termination.  "Date of Termination" means (i)
if the Executive's employment is terminated by the Company for Cause, or by the
Executive for Good Reason, the date of receipt of the Notice of Termination or
any later date specified therein, as the case may be, (ii) if the Executive's
employment is terminated by the Company other than for Cause or Disability, the
date on which the Company notifies the Executive of such termination and (iii)
if





                                      -9-
<PAGE>   10


the Executive's employment is terminated by reason of death or Disability, the
date of death of the Executive or the Disability Effective Date, as the case
may be.

                 6.       Obligations of the Company upon Termination.  (a)
Good Reason; Other Than for Cause, Death or Disability.  If, during the
Employment Period, the Company shall terminate the Executive's employment other
than for Cause or Disability or the Executive shall terminate employment for
Good Reason:

                          (i)     the Company shall pay to the Executive in a
         lump sum in cash within 30 days after the Date of Termination the
         aggregate of the following amounts:

                                  A.     the sum of (1) the
                 Executive's  Annual Base Salary through the Date of
                 Termination to the extent not theretofore paid, (2) the
                 product of (x) the greater of (a) the 1997 Target Bonus and
                 (b) the Executive's highest target annual bonus for any fiscal
                 year that begins both subsequent to 1997 and within 3 years
                 prior to the Date of Termination (such greater amount, the
                 "Highest Target Bonus") and (y) a fraction, the numerator of
                 which is the number of days in the current fiscal year through
                 the Date of Termination, and the denominator of which is 365
                 and (3) any compensation previously deferred by the Executive
                 (together with any accrued interest or earnings thereon) and
                 any accrued vacation pay, in each case to the extent not
                 theretofore paid (the sum of the amounts described in clauses
                 (1), (2), and (3) shall be hereinafter referred to as the
                 "Accrued Obligations"); and

                                  B.     the amount equal to the
                 product of (1) 3 and (2) the sum of (x) the Executive's Annual
                 Base Salary and (y) the Highest Target Bonus; and

                                  C.     an amount equal to the
                 difference between (a) the aggregate benefit under the
                 Company's qualified defined benefit retirement plans
                 (collectively, the "Retirement Plan") and any excess or
                 supplemental defined benefit retirement plans in which the
                 Executive participates (collectively, the "SERP") which the
                 Executive would have accrued (whether or not vested) if the
                 Executive's employment had continued for 3 years after the
                 Date of Termination (based on the assumption that the
                 Executive's compensation in each of the 3 years following such
                 termination would have been that required by Section 4(b)(i)
                 and Section 4(b)(ii)) and (b) the actual vested benefit, if
                 any, of the Executive under the Retirement Plan and the SERP,
                 determined as of the Date of Termination (with the foregoing
                 amounts to be computed on an actuarial present value basis
                 using actuarial assumptions no less favorable to the Executive
                 than the most favorable of those in effect for purposes of
                 computing benefit entitlements under the Retirement Plan and
                 the SERP at any time from the day before the Effective Date)
                 through the Date of Termination;





                                      -10-
<PAGE>   11


                          (ii)    for 3 years after the Executive's Date of
         Termination, or such longer period as may be provided by the terms of
         the appropriate plan, program, practice or policy, the Company shall
         continue benefits to the Executive and/or the Executive's family at
         least equal to those which would have been provided to them in
         accordance with the plans, programs, practices and policies described
         in Section 4(b)(iv) of this Agreement if the Executive's employment
         had not been terminated or, if more favorable to the Executive, as in
         effect generally at any time thereafter with respect to other peer
         executives of  the Company and its affiliated companies and their
         families, provided, however, that if the Executive becomes reemployed
         with another employer and is eligible to receive medical or other
         welfare benefits under another employer-provided plan, the medical and
         other welfare benefits described herein shall be secondary to those
         provided under such other plan during such applicable period of
         eligibility, and for purposes of determining eligibility (but not the
         time of commencement of benefits) of the Executive for retiree
         benefits pursuant to such plans, practices, programs and policies, the
         Executive shall be considered to have remained employed until 3 years
         after the Date of Termination and to have retired on the last day of
         such period;

                          (iii)   the Company shall, at its sole expense as
         incurred, provide the Executive with outplacement services the scope
         and provider of which shall be selected by the Executive in the
         Executive's sole discretion; provided, however, that the Company shall
         not be obligated to provide such services for a period of more than
         one year after the Date of Termination or at an aggregate cost in
         excess of $20,000; and

                          (iv)    to the extent not theretofore paid or
         provided, the Company shall timely pay or provide to the Executive any
         other amounts or benefits required to be paid or provided or which the
         Executive is eligible to receive under any plan, program, policy or
         practice or contract or agreement of the Company and its affiliated
         companies (such other amounts and benefits shall be hereinafter
         referred to as the "Other Benefits").

                 (b)      Death.  If the Executive's employment is terminated
by reason of the Executive's death during the Employment Period, this Agreement
shall terminate without further obligations to the Executive's legal
representatives under this Agreement, other than for payment of Accrued
Obligations and the timely payment or provision of Other Benefits.  Accrued
Obligations shall be paid to the Executive's estate or beneficiary, as
applicable, in a lump sum in cash within 30 days after the Date of Termination.
With respect to the provision of Other Benefits, the term Other Benefits as
utilized in this Section 6(b) shall include, without limitation, and the
Executive's estate and/or beneficiaries shall be entitled to receive, benefits
at least equal to the most favorable benefits  provided by the Company and
affiliated companies to the estates and beneficiaries of peer executives of the
Company and such affiliated companies under such plans, programs, practices and
policies relating to death benefits, if any, as in effect with respect





                                      -11-
<PAGE>   12


to other peer executives and their beneficiaries at any time during the 120-day
period immediately preceding the Effective Date or, if more favorable to the
Executive's estate and/or the Executive's beneficiaries, as in effect on the
date of the Executive's death with respect to other peer executives of the
Company and its affiliated companies and their beneficiaries.

                 (c)      Disability.  If the Executive's employment is
terminated by reason of the Executive's Disability during the Employment
Period, this Agreement shall terminate without further obligations to the
Executive, other than for payment of Accrued Obligations and the timely payment
or provision of Other Benefits.  Accrued Obligations shall be paid to the
Executive in a lump sum in cash within 30 days after the Date of Termination.
With respect to the provision of Other Benefits, the term Other Benefits as
utilized in this Section 6(c) shall include, and the Executive shall be
entitled after the Disability Effective Date to receive, disability and other
benefits at least equal to the most favorable of those generally provided by
the Company and its affiliated companies to disabled executives and/or their
families in accordance with such plans, programs, practices and policies
relating to disability, if any, as in effect generally with respect to other
peer executives and their families at any time during the 120-day period
immediately preceding the Effective Date  or, if more favorable to the
Executive and/or the Executive's family, as in effect at any time thereafter
generally with respect to other peer executives of the Company and its
affiliated companies and their families.

                 (d)      Cause; Other than for Good Reason.  If the
Executive's employment shall be terminated for Cause during the Employment
Period, this Agreement shall terminate without further obligations to the
Executive other than the obligation to pay to the Executive (x) the Annual Base
Salary through the Date of Termination, (y) the amount of any compensation
previously deferred by the Executive, and (z) Other Benefits, in each case to
the extent theretofore unpaid.  If the Executive voluntarily terminates
employment during the Employment Period, excluding a termination for Good
Reason, this Agreement shall terminate without further obligations to the
Executive, other than for Accrued Obligations and the timely payment or
provision of Other Benefits.  In such case, all Accrued Obligations shall be
paid to the Executive in a lump sum in cash within 30 days of the Date of
Termination.





                                      -12-
<PAGE>   13



                 7.       Non-exclusivity of Rights.  Nothing in this Agreement
shall prevent or limit the Executive's continuing or future participation in
any plan, program, policy or practice provided by the Company or any of its
affiliated companies and for which the Executive may qualify, nor, subject to
Section 12(f), shall anything herein limit or otherwise affect such rights as
the Executive may have under any contract or agreement with the Company or any
of its affiliated companies.  Amounts  which are vested benefits or which the
Executive is otherwise entitled to receive under any plan, policy, practice or
program of or any contract or agreement with the Company or any of its
affiliated companies at or subsequent to the Date of Termination shall be
payable in accordance with such plan, policy, practice or program or contract
or agreement except as explicitly modified by this Agreement.

                 8.       Full Settlement; Legal Fees.  The Company's
obligation to make the payments provided for in this Agreement and otherwise to
perform its obligations hereunder shall not be affected by any set-off,
counterclaim, recoupment, defense or other claim, right or action which the
Company may have against the Executive or others.  In no event shall the
Executive be obligated to seek other employment or take any other action by way
of mitigation of the amounts payable to the Executive under any of the
provisions of this Agreement and except as specifically provided in Section
6(a)(ii), such amounts shall not be reduced whether or not the Executive
obtains other employment.  The Company agrees to pay as incurred, to the full
extent permitted by law, all legal fees and expenses which the Executive may
reasonably incur as a result of any contest (regardless of the outcome thereof)
by the Company, the Executive or others of the validity or enforceability of,
or liability or entitlement under, any provision of this Agreement or any
guarantee of performance thereof (whether such contest is between the Company
and the Executive or between either of them and any third party, and including
as a result of any contest by the Executive about  the amount of any payment
pursuant to this Agreement), plus in each case interest on any delayed payment
at 120% of the applicable Federal rate (that applies to the time period of the
delay) provided for in Section 7872(f)(2)(A) of the Internal Revenue Code of
1986, as amended (the "Code"), compounded annually.





                                      -13-
<PAGE>   14


                 9.       Certain Additional Payments by the Company.

                 (a)      Anything in this Agreement to the contrary
notwithstanding, in the event it shall be determined that any payment, award,
benefit or distribution by the Company (or any of its affiliated entities) or
by any entity which effectuates a Change of Control (or any of its affiliated
entities) to or for the benefit of the Executive (whether pursuant to the terms
of this Agreement or otherwise, but determined without regard to any additional
payments required under this Section 9) (a "Payment") would be subject to the
excise tax imposed by Section 4999 of the Code or any corresponding provisions
of state or local tax laws, or any interest or penalties are incurred by the
Executive with respect to such excise tax (such excise tax, together with any
such interest and penalties, are hereinafter collectively referred to as the
"Excise Tax"), then the Executive shall be entitled to receive an additional
payment (a "Gross-Up Payment") in an amount such that after payment by the
Executive of all taxes (including any interest or penalties imposed with
respect to such taxes), including, without limitation, any income taxes (and
any interest and penalties imposed with respect thereto) and Excise Tax imposed
upon the Gross-Up Payment, the Executive  retains an amount of the Gross-Up
Payment equal to the Excise Tax imposed upon the Payments.  The payment of a
Gross-Up Payment under this Section 9(a) shall not be conditioned upon the
Executive's termination of employment.

                 (b)      Subject to the provisions of Section 9(c), all
determinations required to be made under this Section 9, including whether and
when a Gross-Up Payment is required and the amount of such Gross-Up Payment and
the assumptions to be utilized in arriving at such determination, shall be made
by Price Waterhouse LLP or such other certified public accounting firm as may
be designated by the Executive (the "Accounting Firm"), which shall provide
detailed supporting calculations both to the Company and the Executive within
15 business days of the receipt of notice from the Executive that there has
been a Payment, or such earlier time as is requested by the Company.  In the
event that the Accounting Firm is serving as accountant or auditor for the
individual, entity or group effecting the Change of Control, the Executive
shall appoint another nationally recognized accounting firm to make the
determinations required hereunder (which accounting firm shall then be referred
to as the Accounting Firm hereunder).  All fees and expenses of the Accounting
Firm shall be borne solely by the Company.  Any





                                      -14-
<PAGE>   15


Gross-Up Payment, as determined pursuant to this Section 9, shall be paid by
the Company to the Executive within 5 days after the receipt of the Accounting
Firm's determination.  Any determination by the Accounting Firm shall be
binding upon the Company and the Executive.  As a result of the uncertainty in
the  application of Section 4999 of the Code at the time of the initial
determination by the Accounting Firm hereunder, it is possible that Gross-Up
Payments which will not have been made by the Company should have been made
("Underpayment"), consistent with the calculations required to be made
hereunder.  In the event that the Company exhausts its remedies pursuant to
Section 9(c) and the Executive thereafter is required to make a payment of any
Excise Tax, the Accounting Firm shall determine the amount of the Underpayment
that has occurred and any such Underpayment shall be promptly paid by the
Company to or for the benefit of the Executive.

                 (c)      The Executive shall notify the Company in writing of
any claim by the Internal Revenue Service that, if successful, would require
the payment by the Company of the Gross-Up Payment.  Such notification shall be
given as soon as practicable but no later than ten business days after the
Executive is informed in writing of such claim and shall apprise the Company of
the nature of such claim and the date on which such claim is requested to be
paid.  The Executive shall not pay such claim prior to the expiration of the
30-day period following the date on which the Executive gives such notice to
the Company (or such shorter period ending on the date that any payment of
taxes with respect to such claim is due).  If the Company notifies the
Executive in writing prior to the expiration of such period that it desires to
contest such claim, the Executive shall:

                          (i)      give the Company any information
         reasonably requested by the Company relating to  such claim,

                          (ii)     take such action in connection with
         contesting such claim as the Company shall reasonably request in
         writing from time to time, including, without limitation, accepting
         legal representation with respect to such claim by an attorney
         reasonably selected by the Company,

                          (iii)    cooperate with the Company in good
         faith in order effectively to contest such claim, and





                                      -15-
<PAGE>   16



                          (iv)     permit the Company to participate in any
         proceedings relating to such claim;

provided, however, that the Company shall bear and pay directly all costs and
expenses (including additional interest and penalties) incurred in connection
with such contest and shall indemnify and hold the Executive harmless, on an
after-tax basis, for any Excise Tax or income tax (including interest and
penalties with respect thereto) imposed as a result of such representation and
payment of costs and expenses.  Without limitation on the foregoing provisions
of this Section 9(c), the Company shall control all proceedings taken in
connection with such contest and, at its sole option, may pursue or forgo any
and all administrative appeals,  proceedings, hearings and conferences with the
taxing authority in respect of such claim and may, at its sole option, either
direct the Executive to pay the tax claimed and sue for a refund or contest the
claim in any permissible manner, and the Executive agrees to prosecute such
contest to a determination before any administrative tribunal, in a court of
initial jurisdiction and in one or more appellate courts, as the Company shall
determine; provided, however, that if the Company directs the Executive to pay
such claim and sue for a refund, the Company shall advance the amount of such
payment to the Executive, on an interest-free basis and shall  indemnify and
hold the Executive harmless, on an after-tax basis, from any Excise Tax or
income tax (including interest or penalties with respect thereto) imposed with
respect to such advance or with respect to any imputed income with respect to
such advance; and further provided that any extension of the statute of
limitations relating to payment of taxes for the taxable year of the Executive
with respect to which such contested amount is claimed to be due is limited
solely to such contested amount.  Furthermore, the Company's control of the
contest shall be limited to issues with respect to which a Gross-Up Payment
would be payable hereunder and the Executive shall be entitled to settle or
contest, as the case may be, any other issue raised by the Internal Revenue
Service or any other taxing authority.

                 (d)      If, after the receipt by the Executive of an amount
advanced by the Company pursuant to Section 9(c), the Executive becomes
entitled to receive any refund with respect to such claim, the Executive shall
(subject to the Company's complying with the requirements of Section 9(c))
promptly pay to the Company the amount of such refund (together with any
interest





                                      -16-
<PAGE>   17


paid or credited thereon after deducting an amount sufficient to pay applicable
federal, state and local taxes on such interest at the highest marginal rates
applicable thereto).  If, after the receipt by the Executive of an amount
advanced by the Company pursuant to Section 9(c), a determination is made that
the Executive shall not be entitled to any refund with respect to such claim
and the Company does not notify the Executive in  writing of its intent to
contest such denial of refund prior to the expiration of 30 days after such
determination, then such advance shall be forgiven and shall not be required to
be repaid and the amount of such advance shall offset, to the extent thereof,
the amount of Gross-Up Payment required to be paid.

                 10.      Confidential Information.  The Executive shall hold
in a fiduciary capacity for the benefit of the Company all secret or
confidential information, knowledge or data relating to the Company or any of
its affiliated companies, and their respective businesses, which shall have
been obtained by the Executive during the Executive's employment by the Company
or any of its affiliated companies and which shall not be or become public
knowledge (other than by acts by the Executive or representatives of the
Executive in violation of this Agreement).  After termination of the
Executive's employment with the Company, the Executive shall not, without the
prior written consent of the Company or as may otherwise be required by law or
legal process, communicate or divulge any such information, knowledge or data
to anyone other than the Company and those designated by it.  In no event shall
an asserted violation of the provisions of this Section 10 constitute a basis
for deferring or withholding any amounts otherwise payable to the Executive
under this Agreement.

                 11.      Successors.  (a)  This Agreement is personal to the
Executive and without the prior written consent of the Company shall not be
assignable by the Executive otherwise than by will or the laws of descent and
distribution.  This Agreement shall inure to the benefit of and be enforceable
by the  Executive's legal representatives.

                 (b)      This Agreement shall inure to the benefit of and be
binding upon the Company and its successors and assigns.

                 (c)      The Company will require any successor (whether
direct or indirect, by purchase, merger, consolidation or otherwise) to all or
substantially all of the business and/or





                                      -17-
<PAGE>   18


assets of the Company to assume expressly and agree to perform this Agreement
in the same manner and to the same extent that the Company would be required to
perform it if no such succession had taken place.  As used in this Agreement,
"Company" shall mean the Company as hereinbefore defined and any successor to
its business and/or assets as aforesaid which assumes and agrees to perform
this Agreement by operation of law, or otherwise.

                 12.      Miscellaneous.  (a)  This Agreement shall be governed
by and construed in accordance with the laws of the State of Delaware, without
reference to principles of conflict of laws.  The captions of this Agreement
are not part of the provisions hereof and shall have no force or effect.  This
Agreement may not be amended or modified otherwise than by a written agreement
executed by the parties hereto or their respective successors and legal
representatives.

                 (b)      All notices and other communications hereunder shall
be in writing and shall be given by hand delivery to the other party or by
registered or certified mail, return receipt requested, postage prepaid,
addressed as follows:

                 If to the Executive:

                 Anne V. Wardlow

                 If to the Company:
                 John Alden Financial Corporation
                 7300 Corporate Center Drive
                 Miami, FL  33126-1223

                                  Attention:  General Counsel

or to such other address as either party shall have furnished to the other in
writing in accordance herewith.  Notice and communications shall be effective
when actually received by the addressee.





                                      -18-
<PAGE>   19


                 (c)      The invalidity or unenforceability of any provision
of this Agreement shall not affect the validity or enforceability of any other
provision of this Agreement.

                 (d)      The Company may withhold from any amounts payable
under this Agreement such Federal, state, local or foreign taxes as shall be
required to be withheld pursuant to any applicable law or regulation.

                 (e)      The Executive's or the Company's failure to insist
upon strict compliance with any provision hereof or any other provision of this
Agreement or the failure to assert any right the Executive or the Company may
have hereunder, including, without limitation, the right of the Executive to
terminate employment for Good Reason pursuant to Section 5(c)(i)-(v) of this
Agreement, shall not be deemed to be a waiver of such provision or right or any
other provision or right of this Agreement.

                 (f)      The Executive and the Company acknowledge that,
except as may otherwise be provided under any other written agreement between
the Executive and the Company, the employment of the Executive by the Company
is "at will" and, prior to the Effective Date, the Executive's employment may
be terminated by either the Executive or the Company at any time prior to the
Effective Date, in which case the Executive shall have no further rights under
this Agreement.  From and after the Effective Date this Agreement shall
supersede any other agreement between the parties with respect to the subject
matter hereof, including, without limitation, the right of the Executive to
participate in any severance plan of the Company or otherwise receive severance
benefits from the Company.





                                      -19-
<PAGE>   20



                 IN WITNESS WHEREOF, the Executive has hereunto set the
Executive's hand and, pursuant to the authorization from its Board of
Directors, the Company has caused this Agreement to be executed in its name on
its behalf, all as of the day and year first above written.



                                        JOHN ALDEN FINANCIAL CORPORATION    
                                                                            
                                        By: /s/ SCOTT L. STANTON            
                                           ------------------------------- 
                                                                            
                                        Title: Senior Vice President and    
                                              ---------------------------- 
                                               Chief Financial Officer      
                                              ---------------------------- 

                                         /s/ ANNE V. WARDLOW
                                        ----------------------------------
                                                     Anne V. Wardlow


                                      -20-

<PAGE>   1
                                                                   EXHIBIT 10.72


                               CHANGE OF CONTROL

                              EMPLOYMENT AGREEMENT

                 AGREEMENT by and between John Alden Financial Corporation, a
Delaware corporation (the "Company") and William S. Wilkins (the "Executive"),
dated as of the 5th day of November, 1997.

                 The Board of Directors of the Company (the "Board"), has
determined that it is in the best interests of the Company and its shareholders
to assure that the Company will have the continued dedication of the Executive,
notwithstanding the possibility, threat or occurrence of a Change of Control
(as defined below) of the Company.  The Board believes it is imperative to
diminish the inevitable distraction of the Executive by virtue of the personal
uncertainties and risks created by a pending or threatened Change of Control
and to encourage the Executive's full attention and dedication to the Company
currently and in the event of any threatened or pending Change of Control, and
to provide the Executive with compensation and benefits arrangements upon a
Change of Control which ensure that the compensation and benefits expectations
of the Executive will be satisfied and which are competitive with those of
other corporations.  Therefore, in order to accomplish these objectives, the
Board has caused the Company to enter into this Agreement.

                 NOW, THEREFORE, IT IS HEREBY AGREED AS FOLLOWS:

                 1.       Certain Definitions.  (a)  The "Effective Date" shall
mean the first date during the Change of Control Period (as defined in Section
1(b)) on which a Change of Control (as defined in Section 2) occurs.  Anything
in this Agreement to the contrary notwithstanding, if a Change of Control
occurs and if the Executive's employment with the Company is terminated prior
to the date on which the Change of Control occurs, and if it is reasonably
demonstrated by the Executive that such termination of employment (i) was at
the request of a third party who has taken steps reasonably calculated to
effect a Change of Control or (ii) otherwise arose in connection with or
anticipation of a Change of Control, then for all purposes of this Agreement
the "Effective Date" shall mean the date immediately prior to the date of such
termination of employment.
<PAGE>   2
                 (b)      The "Change of Control Period" shall mean the period
commencing on the date hereof and ending on the third anniversary of the date
hereof; provided, however, that commencing on the date one year after the date
hereof, and on each annual anniversary of such date (such date and each annual
anniversary thereof shall be hereinafter referred to as the "Renewal Date"),
unless previously terminated, the Change of Control Period shall be
automatically extended so as to terminate 3 years from such Renewal Date,
unless at least 60 days prior to the Renewal Date the Company shall give notice
to the Executive that the Change of Control Period shall not be so extended.

                 2.       Change of Control.  For the purpose of this
Agreement, a "Change of Control" shall mean:

                 (a)  The acquisition by any individual, entity or group
         (within the meaning of Section 13(d)(3) or 14(d)(2) of the Securities
         Exchange Act of 1934, as amended (the "Exchange Act")) (a "Person") of
         beneficial ownership (within the meaning of Rule 13d-3 promulgated
         under the Exchange Act) of 20% or more of either (i) the then
         outstanding shares of common stock of the Company (the "Outstanding
         Company Common Stock") or (ii) the combined voting power of the then
         outstanding voting securities of the Company entitled to vote
         generally in the election of directors (the "Outstanding Company
         Voting Securities"); provided, however, that for purposes of this
         subsection (a), the following acquisitions shall not constitute a
         Change of Control:  (i) any acquisition directly from the Company,
         (ii) any acquisition by the Company, (iii) any acquisition by any
         employee benefit plan (or related trust) sponsored or maintained by
         the Company or any corporation controlled by the Company or (iv) any
         acquisition pursuant to a transaction which complies with clauses (i),
         (ii) and (iii) of subsection (c) of this Section 2; or

                 (b)  Individuals who, as of the date hereof, constitute the
         Board (the "Incumbent Board") cease for any reason to constitute at
         least a majority of the Board; provided, however, that any individual
         becoming a director subsequent to the date hereof whose election, or
         nomination for election by the Company's shareholders, was approved by
         a vote of at least a majority of the directors then comprising the
         Incumbent Board shall be considered as though such individual were a
         member of the Incumbent Board, but excluding, for this purpose, any
         such individual whose initial assumption of office occurs as a result
         of an actual or threatened election contest with respect to the
         election or removal of directors or other actual or threatened
         solicitation of proxies or consents by or on behalf of a Person other
         than the Board; or

                 (c)  Consummation by the Company of a reorganization, merger
         or consolidation or sale or other disposition of all or substantially
         all of the assets of the Company or the acquisition of assets of
         another entity (a "Business Combination"), in each case, unless,





                                      -2-
<PAGE>   3
         following such Business Combination, (i) all or substantially all of
         the individuals and entities who were the beneficial owners,
         respectively, of the Outstanding Company Common Stock and Outstanding
         Company Voting Securities immediately prior to such Business
         Combination beneficially own, directly or indirectly, more than 60%
         of, respectively, the then outstanding shares of common stock and the
         combined voting power of the then outstanding voting securities
         entitled to vote generally in the election of directors, as the case
         may be, of the corporation resulting from such Business Combination
         (including, without limitation, a corporation which as a result of
         such transaction owns the Company or all or substantially all of the
         Company's assets either directly or through one or more subsidiaries)
         in substantially the same proportions as their ownership, immediately
         prior to such Business Combination of the Outstanding Company Common
         Stock and Outstanding Company Voting Securities, as the case may be,
         (ii) no Person (excluding any employee benefit plan (or related trust)
         of the Company or such corporation resulting from such Business
         Combination) beneficially owns, directly or indirectly, 20% or more
         of, respectively, the then outstanding shares of common stock of the
         corporation resulting from such Business Combination or the combined
         voting power of the then outstanding voting securities of such
         corporation except to the extent that such ownership existed prior to
         the Business Combination and (iii) at least a majority of the members
         of the board of directors of the corporation resulting from such
         Business Combination were members of the Incumbent Board at the time
         of the execution of the initial agreement, or of the action of the
         Board, providing for such Business Combination; or

                 (d)  Approval by the shareholders of the Company of a complete
liquidation or dissolution of the Company.

                 3.       Employment Period.  The Company hereby agrees to
continue the Executive in its employ, and the Executive hereby agrees to remain
in the employ of the Company subject to the terms and conditions of this
Agreement, for the period commencing on the Effective Date and ending on the
third anniversary of such date (the "Employment Period").

                 4.       Terms of Employment.  (a)  Position and Duties.  (i)
During the Employment Period, (A) the Executive's position (including status,
offices, titles and reporting requirements), authority, duties and
responsibilities shall be at least commensurate in all material respects with
the most significant of those held, exercised and assigned to the Executive at
any time during the 120-day period immediately preceding the Effective Date and
(B) the Executive's services shall be performed at the location where the
Executive was employed immediately preceding the Effective Date or any office
or location less than 35 miles from such location.





                                      -3-
<PAGE>   4
                 (ii)     During the Employment Period, and excluding any
periods of vacation and sick leave to which the Executive is entitled, the
Executive agrees to devote reasonable attention and time during normal business
hours to the business and affairs of the Company and, to the extent necessary
to discharge the responsibilities assigned to the Executive hereunder, to use
the Executive's reasonable best efforts to perform faithfully and efficiently
such responsibilities.  During the Employment Period it shall not be a
violation of this Agreement for the Executive to (A) serve on corporate, civic
or charitable boards or committees, (B) deliver lectures, fulfill speaking
engagements or teach at educational institutions and (C) manage personal
investments, so long as such activities do not significantly interfere with the
performance of the Executive's responsibilities as an employee of the Company
in accordance with this Agreement.  It is expressly understood and agreed that
to the extent that any such activities have been conducted by the Executive
prior to the Effective Date, the continued conduct of such activities (or the
conduct of activities similar in nature and scope thereto) subsequent to the
Effective Date shall not thereafter be deemed to interfere with the performance
of the Executive's responsibilities to the Company.

                 (b)      Compensation.  (i)  Base Salary.  During the
Employment Period, the Executive shall receive an annual base salary ("Annual
Base Salary"), which shall be paid at a monthly rate, at least equal to 12
times the highest monthly base salary paid or payable, including any base
salary which has been earned but deferred, to the Executive by the Company and
its affiliated companies in respect of the twelve-month period immediately
preceding the month in which the Effective Date occurs.  During the Employment
Period, the Annual Base Salary shall be reviewed within 12 months after the
last salary increase awarded to the Executive prior to the Effective Date and
thereafter at least annually.  Any increase in Annual Base Salary shall not
serve to limit or reduce any other obligation to the Executive under this
Agreement.  Annual Base Salary shall not be reduced after any such increase and
the term Annual Base Salary as utilized in this Agreement shall refer to Annual
Base Salary as so increased.  As used in this Agreement, the term "affiliated
companies" shall include any company controlled by, controlling or under common
control with the Company.





                                      -4-
<PAGE>   5
                 (ii)     Annual Bonus.  In addition to Annual Base Salary, the
Executive shall be awarded, for each fiscal year ending during the Employment
Period, an annual bonus (the "Annual Bonus") in cash at least equal to the
Executive's target annual bonus under the Company's Short-Term Incentive
Compensation Plan for 1997 ("1997 Target Bonus") or, if higher, the Executive's
greatest target annual bonus in any subsequent year prior to the Effective
Date.  Each such Annual Bonus shall be paid no later than the end of the third
month of the fiscal year next following the fiscal year for which the Annual
Bonus is awarded, unless the Executive shall elect to defer the receipt of such
Annual Bonus.

                 (iii)    Incentive, Savings and Retirement Plans.  During the
Employment Period, the Executive shall be entitled to participate in all
incentive, savings and retirement plans, practices, policies and programs
applicable generally to other peer executives of the Company and its affiliated
companies, but in no event shall such plans, practices, policies and programs
provide the Executive with incentive opportunities (measured with respect to
both regular and special incentive opportunities, to the extent, if any, that
such distinction is applicable), savings opportunities and retirement benefit
opportunities, in each case, less favorable, in the aggregate, than the most
favorable of those provided by the Company and its affiliated companies for the
Executive under such plans, practices, policies and programs as in effect at
any time during the 120-day period immediately preceding the Effective Date or
if more favorable to the Executive, those provided generally at any time after
the Effective Date to other peer executives of the Company and its affiliated
companies.

                 (iv)     Welfare Benefit Plans.  During the Employment Period,
the Executive and/or the Executive's family, as the case may be, shall be
eligible for participation in and shall receive all benefits under welfare
benefit plans, practices, policies and programs provided by the Company and its
affiliated companies (including, without limitation, medical, prescription,
dental, disability, salary continuance, employee life, group life, accidental
death and travel accident insurance plans and programs) to the extent
applicable generally to other peer executives of the Company and its affiliated
companies, but in no event shall such plans, practices, policies and programs
provide the Executive with benefits which are less favorable, in the aggregate,
than the most favorable of such plans, practices, policies and programs in
effect for





                                      -5-
<PAGE>   6
the Executive at any time during the 120-day period immediately preceding the
Effective Date or, if more favorable to the Executive, those provided generally
at any time after the Effective Date to other peer executives of the Company
and its affiliated companies.

                 (v)      Expenses.  During the Employment Period, the
Executive shall be entitled to receive prompt reimbursement for all reasonable
expenses incurred by the Executive in accordance with the most favorable
policies, practices and procedures of the Company and its affiliated companies
in effect for the Executive at any time during the 120-day period immediately
preceding the Effective Date or, if more favorable to the Executive, as in
effect generally at any time thereafter with respect to other peer executives
of the Company and its affiliated companies.

                 (vi)     Fringe Benefits.  During the Employment Period, the
Executive shall be entitled to fringe benefits, including, without limitation,
tax and financial planning services, payment of club dues, and, if applicable,
use of an automobile (or an automobile allowance) and payment of related
expenses, in accordance with the most favorable plans, practices, programs and
policies of the Company and its affiliated companies in effect for the
Executive at any time during the 120-day period immediately preceding the
Effective Date or, if more favorable to the Executive, as in effect generally
at any time thereafter with respect to other peer executives of the Company and
its affiliated companies.

                 (vii)    Office and Support Staff.  During the Employment
Period, the Executive shall be entitled to an office or offices of a size and
with furnishings and other appointments, and to exclusive personal secretarial
and other assistance, at least equal to the most favorable of the foregoing
provided to the Executive by the Company and its affiliated companies at any
time during the 120-day period immediately preceding the Effective Date or, if
more favorable to the Executive, as provided generally at any time thereafter
with respect to other peer executives of the Company and its affiliated
companies.

                 (viii)   Vacation.  During the Employment Period, the
Executive shall be entitled to paid vacation in accordance with the most
favorable plans, policies, programs and practices of the Company and its
affiliated companies as in effect for the Executive at any time





                                      -6-
<PAGE>   7
during the 120-day period immediately preceding the Effective Date or, if more
favorable to the Executive, as in effect generally at any time thereafter with
respect to other peer executives of the Company and its affiliated companies.

                 5.       Termination of Employment.  (a)  Death or Disability.
The Executive's employment shall terminate automatically upon the Executive's
death during the Employment Period.  If the Company determines in good faith
that the Disability of the Executive has occurred during the Employment Period
(pursuant to the definition of Disability set forth below), it may give to the
Executive written notice in accordance with Section 12(b) of this Agreement of
its intention to terminate the Executive's employment.  In such event, the
Executive's employment with the Company shall terminate effective on the 30th
day after receipt of such notice by the Executive (the "Disability Effective
Date"), provided that, within the 30 days after such receipt, the Executive
shall not have returned to full-time performance of the Executive's duties.
For purposes of this Agreement, "Disability" shall mean the absence of the
Executive from the Executive's duties with the Company on a full-time basis for
180 consecutive business days as a result of incapacity due to mental or
physical illness which is determined to be total and permanent by a physician
selected by the Company or its insurers  and acceptable to the Executive or the
Executive's legal representative.

                 (b)      Cause.  The Company may terminate the Executive's
employment during the Employment Period for Cause.  For purposes of this
Agreement, "Cause" shall mean:

                                  (i)      the willful and continued failure of
         the Executive to perform substantially the Executive's duties with the
         Company or one of its affiliates (other than any such failure
         resulting from incapacity due to physical or mental illness), after a
         written demand for substantial performance is delivered to the
         Executive by the Board or the Chief Executive Officer of the Company
         which specifically identifies the manner in which the Board or Chief
         Executive Officer believes that the Executive has not substantially
         performed the Executive's duties, or

                                  (ii)     the willful engaging by the
         Executive in illegal conduct or gross misconduct which is materially
         and demonstrably injurious to the Company.

For purposes of this provision, no act or failure to act, on the part of the
Executive, shall be considered "willful" unless it is done, or omitted to be
done, by the Executive in bad faith or





                                      -7-
<PAGE>   8
without reasonable belief that the Executive's action or omission was in the
best interests of the Company.  Any act, or failure to act, based upon
authority given pursuant to a resolution duly adopted by the Board or upon the
instructions of the Chief Executive Officer or a senior officer of the Company
or based upon the advice of counsel for the Company shall be conclusively
presumed to be done, or omitted to be done, by the Executive in good faith and
in the best interests of the Company.  The cessation of employment of the
Executive shall not be deemed to be for Cause unless and until there shall have
been delivered to the Executive a copy of a resolution duly adopted by the
affirmative vote of not less than three-quarters of the entire membership of
the Board at a meeting of the Board called and held for such purpose (after
reasonable notice is provided to the Executive and the Executive is given an
opportunity, together with counsel, to be heard before the Board), finding
that, in the good faith opinion of the Board, the Executive is guilty of the
conduct described in subparagraph (i) or (ii) above, and specifying the
particulars thereof in detail.

                 (c)      Good Reason.  The Executive's employment may be
terminated by the Executive for Good Reason.  For purposes of this Agreement,
"Good Reason" shall mean:

                                  (i)      the assignment to the Executive of
         any duties inconsistent in any respect with the Executive's position
         (including status, offices, titles and reporting requirements),
         authority, duties or responsibilities as contemplated by Section 4(a)
         of this Agreement, or any other action by the Company which results in
         a diminution in such position, authority, duties or responsibilities,
         excluding for this purpose an isolated, insubstantial and inadvertent
         action not taken in bad faith and which is remedied by the Company
         promptly after receipt of notice thereof given by the Executive;

                                  (ii)     any failure by the Company to comply
         with any of the provisions of Section 4(b) of this Agreement, other
         than an isolated, insubstantial and inadvertent failure not occurring
         in bad faith and which is remedied by the Company promptly after
         receipt of notice thereof given by the Executive;

                                  (iii)    the Company's requiring the
         Executive to be based at any office or location other than as provided
         in Section 4(a)(i)(B) hereof or the Company's requiring the Executive
         to travel on Company business to a substantially greater extent than
         required immediately prior to the Effective Date;

                                  (iv)     any purported termination by the
         Company of the Executive's employment otherwise than as expressly
         permitted by this Agreement; or





                                      -8-
<PAGE>   9
                                  (v)      any failure by the Company to comply
         with and satisfy Section 11(c) of this Agreement.

For purposes of this Section 5(c), any good faith determination of "Good
Reason" made by the Executive shall be conclusive.  Anything in this Agreement
to the contrary notwithstanding, a termination by the Executive for any reason
during the 30-day period immediately following the first anniversary of the
Effective Date shall be deemed to be a termination for Good Reason for all
purposes of this Agreement.

                 (d)      Notice of Termination.  Any termination by the
Company for Cause, or by the Executive for Good Reason, shall be communicated
by Notice of Termination to the other party hereto given in accordance with
Section 12(b) of this Agreement.  Such Notice of Termination for Cause shall be
given within 90 days following the Company's "actual" knowledge of any event
constituting Cause, and such Notice of Termination for Good Reason shall be
given within 180 days following the Executive's "actual" knowledge of an event
constituting Good Reason.  For purposes of this Agreement, a "Notice of
Termination" means a written notice which (i) indicates the specific
termination provision in this Agreement relied upon, (ii) to the extent
applicable, sets forth in reasonable detail the facts and circumstances claimed
to provide a basis for termination of the Executive's employment under the
provision so indicated and (iii) if the Date of Termination (as defined below)
is other than the date of receipt of such notice, specifies the termination
date (which date shall be not more than thirty days after the giving of such
notice).  The failure by the Executive or the Company to set forth in the
Notice of Termination any fact or circumstance which contributes to a showing
of Good Reason or Cause shall not waive any right of the Executive or the
Company, respectively, hereunder or preclude the Executive or the Company,
respectively, from asserting such fact or circumstance in enforcing the
Executive's or the Company's rights hereunder.

                 (e)      Date of Termination.  "Date of Termination" means (i)
if the Executive's employment is terminated by the Company for Cause, or by the
Executive for Good Reason, the date of receipt of the Notice of Termination or
any later date specified therein, as the case may be, (ii) if the Executive's
employment is terminated by the Company other than for Cause or Disability, the
date on which the Company notifies the Executive of such termination and (iii)
if





                                      -9-
<PAGE>   10
the Executive's employment is terminated by reason of death or Disability, the
date of death of the Executive or the Disability Effective Date, as the case
may be.

                 6.       Obligations of the Company upon Termination.  (a)
Good Reason; Other Than for Cause, Death or Disability.  If, during the
Employment Period, the Company shall terminate the Executive's employment other
than for Cause or Disability or the Executive shall terminate employment for
Good Reason:

                   (i)            the Company shall pay to the Executive in a
         lump sum in cash within 30 days after the Date of Termination the
         aggregate of the following amounts:

                                  A.         the sum of (1) the Executive's
                 Annual Base Salary through the Date of Termination to the
                 extent not theretofore paid, (2) the product of (x) the
                 greater of (a) the 1997 Target Bonus and (b) the Executive's
                 highest target annual bonus for any fiscal year that begins
                 both subsequent to 1997 and within 3 years prior to the Date
                 of Termination (such greater amount, the "Highest Target
                 Bonus") and (y) a fraction, the numerator of which is the
                 number of days in the current fiscal year through the Date of
                 Termination, and the denominator of which is 365 and (3) any
                 compensation previously deferred by the Executive (together
                 with any accrued interest or earnings thereon) and any accrued
                 vacation pay, in each case to the extent not theretofore paid
                 (the sum of the amounts described in clauses (1), (2), and (3)
                 shall be hereinafter referred to as the "Accrued
                 Obligations"); and

                                  B.         the amount equal to the product of
                 (1) 3 and (2) the sum of (x) the Executive's Annual Base
                 Salary and (y) the Highest Target Bonus; and

                                  C.         an amount equal to the difference
                 between (a) the aggregate benefit under the Company's
                 qualified defined benefit retirement plans (collectively, the
                 "Retirement Plan") and any excess or supplemental defined
                 benefit retirement plans in which the Executive participates
                 (collectively, the "SERP") which the Executive would have
                 accrued (whether or not vested) if the Executive's employment
                 had continued for 3 years after the Date of Termination (based
                 on the assumption that the Executive's compensation in each of
                 the 3 years following such termination would have been that
                 required by Section 4(b)(i) and Section 4(b)(ii)) and (b) the
                 actual vested benefit, if any, of the Executive under the
                 Retirement Plan and the SERP, determined as of the Date of
                 Termination (with the foregoing amounts to be computed on an
                 actuarial present value basis using actuarial assumptions no
                 less favorable to the Executive than the most favorable of
                 those in effect for purposes of computing benefit entitlements
                 under the Retirement Plan and the SERP at any time from the
                 day before the Effective Date) through the Date of
                 Termination;





                                      -10-
<PAGE>   11
                   (ii)           for 3 years after the Executive's Date of
         Termination, or such longer period as may be provided by the terms of
         the appropriate plan, program, practice or policy, the Company shall
         continue benefits to the Executive and/or the Executive's family at
         least equal to those which would have been provided to them in
         accordance with the plans, programs, practices and policies described
         in Section 4(b)(iv) of this Agreement if the Executive's employment
         had not been terminated or, if more favorable to the Executive, as in
         effect generally at any time thereafter with respect to other peer
         executives of the Company and its affiliated companies and their
         families, provided, however, that if the Executive becomes reemployed
         with another employer and is eligible to receive medical or other
         welfare benefits under another employer-provided plan, the medical and
         other welfare benefits described herein shall be secondary to those
         provided under such other plan during such applicable period of
         eligibility, and for purposes of determining eligibility (but not the
         time of commencement of benefits) of the Executive for retiree
         benefits pursuant to such plans, practices, programs and policies, the
         Executive shall be considered to have remained employed until 3 years
         after the Date of Termination and to have retired on the last day of
         such period;

                   (iii)          the Company shall, at its sole expense as
         incurred, provide the Executive with outplacement services the scope
         and provider of which shall be selected by the Executive in the
         Executive's sole discretion; provided, however, that the Company shall
         not be obligated to provide such services for a period of more than
         one year after the Date of Termination or at an aggregate cost in
         excess of $20,000; and

                   (iv)           to the extent not theretofore paid or
         provided, the Company shall timely pay or provide to the Executive any
         other amounts or benefits required to be paid or provided or which the
         Executive is eligible to receive under any plan, program, policy or
         practice or contract or agreement of the Company and its affiliated
         companies (such other amounts and benefits shall be hereinafter
         referred to as the "Other Benefits").

                 (b)      Death.  If the Executive's employment is terminated
by reason of the Executive's death during the Employment Period, this Agreement
shall terminate without further obligations to the Executive's legal
representatives under this Agreement, other than for payment of Accrued
Obligations and the timely payment or provision of Other Benefits.  Accrued
Obligations shall be paid to the Executive's estate or beneficiary, as
applicable, in a lump sum in cash within 30 days after the Date of Termination.
With respect to the provision of Other Benefits, the term Other Benefits as
utilized in this Section 6(b) shall include, without limitation, and the
Executive's estate and/or beneficiaries shall be entitled to receive, benefits
at least equal to the most favorable benefits provided by the Company and
affiliated companies to the estates and beneficiaries of peer executives of the
Company and such affiliated companies under such plans, programs, practices and
policies relating to death benefits, if any, as in effect with respect





                                      -11-
<PAGE>   12
to other peer executives and their beneficiaries at any time during the 120-day
period immediately preceding the Effective Date or, if more favorable to the
Executive's estate and/or the Executive's beneficiaries, as in effect on the
date of the Executive's death with respect to other peer executives of the
Company and its affiliated companies and their beneficiaries.

                 (c)      Disability.  If the Executive's employment is
terminated by reason of the Executive's Disability during the Employment
Period, this Agreement shall terminate without further obligations to the
Executive, other than for payment of Accrued Obligations and the timely payment
or provision of Other Benefits.  Accrued Obligations shall be paid to the
Executive in a lump sum in cash within 30 days after the Date of Termination.
With respect to the provision of Other Benefits, the term Other Benefits as
utilized in this Section 6(c) shall include, and the Executive shall be
entitled after the Disability Effective Date to receive, disability and other
benefits at least equal to the most favorable of those generally provided by
the Company and its affiliated companies to disabled executives and/or their
families in accordance with such plans, programs, practices and policies
relating to disability, if any, as in effect generally with respect to other
peer executives and their families at any time during the 120-day period
immediately preceding the Effective Date or, if more favorable to the Executive
and/or the Executive's family, as in effect at any time thereafter generally
with respect to other peer executives of the Company and its affiliated
companies and their families.

                 (d)      Cause; Other than for Good Reason.  If the
Executive's employment shall be terminated for Cause during the Employment
Period, this Agreement shall terminate without further obligations to the
Executive other than the obligation to pay to the Executive (x) the Annual Base
Salary through the Date of Termination, (y) the amount of any compensation
previously deferred by the Executive, and (z) Other Benefits, in each case to
the extent theretofore unpaid.  If the Executive voluntarily terminates
employment during the Employment Period, excluding a termination for Good
Reason, this Agreement shall terminate without further obligations to the
Executive, other than for Accrued Obligations and the timely payment or
provision of Other Benefits.  In such case, all Accrued Obligations shall be
paid to the Executive in a lump sum in cash within 30 days of the Date of
Termination.





                                      -12-
<PAGE>   13
                 7.       Non-exclusivity of Rights.  Nothing in this Agreement
shall prevent or limit the Executive's continuing or future participation in
any plan, program, policy or practice provided by the Company or any of its
affiliated companies and for which the Executive may qualify, nor, subject to
Section 12(f), shall anything herein limit or otherwise affect such rights as
the Executive may have under any contract or agreement with the Company or any
of its affiliated companies.  Amounts which are vested benefits or which the
Executive is otherwise entitled to receive under any plan, policy, practice or
program of or any contract or agreement with the Company or any of its
affiliated companies at or subsequent to the Date of Termination shall be
payable in accordance with such plan, policy, practice or program or contract
or agreement except as explicitly modified by this Agreement.

                 8.       Full Settlement; Legal Fees.  The Company's
obligation to make the payments provided for in this Agreement and otherwise to
perform its obligations hereunder shall not be affected by any set-off,
counterclaim, recoupment, defense or other claim, right or action which the
Company may have against the Executive or others.  In no event shall the
Executive be obligated to seek other employment or take any other action by way
of mitigation of the amounts payable to the Executive under any of the
provisions of this Agreement and except as specifically provided in Section
6(a)(ii), such amounts shall not be reduced whether or not the Executive
obtains other employment.  The Company agrees to pay as incurred, to the full
extent permitted by law, all legal fees and expenses which the Executive may
reasonably incur as a result of any contest (regardless of the outcome thereof)
by the Company, the Executive or others of the validity or enforceability of,
or liability or entitlement under, any provision of this Agreement or any
guarantee of performance thereof (whether such contest is between the Company
and the Executive or between either of them and any third party, and including
as a result of any contest by the Executive about the amount of any payment
pursuant to this Agreement), plus in each case interest on any delayed payment
at 120% of the applicable Federal rate (that applies to the time period of the
delay) provided for in Section 7872(f)(2)(A) of the Internal Revenue Code of
1986, as amended (the "Code"), compounded annually.





                                      -13-
<PAGE>   14
                 9.       Certain Additional Payments by the Company.

                 (a)      Anything in this Agreement to the contrary
notwithstanding, in the event it shall be determined that any payment, award,
benefit or distribution by the Company (or any of its affiliated entities) or
by any entity which effectuates a Change of Control (or any of its affiliated
entities) to or for the benefit of the Executive (whether pursuant to the terms
of this Agreement or otherwise, but determined without regard to any additional
payments required under this Section 9) (a "Payment") would be subject to the
excise tax imposed by Section 4999 of the Code or any corresponding provisions
of state or local tax laws, or any interest or penalties are incurred by the
Executive with respect to such excise tax (such excise tax, together with any
such interest and penalties, are hereinafter collectively referred to as the
"Excise Tax"), then the Executive shall be entitled to receive an additional
payment (a "Gross-Up Payment") in an amount such that after payment by the
Executive of all taxes (including any interest or penalties imposed with
respect to such taxes), including, without limitation, any income taxes (and
any interest and penalties imposed with respect thereto) and Excise Tax imposed
upon the Gross-Up Payment, the Executive retains an amount of the Gross-Up
Payment equal to the Excise Tax imposed upon the Payments.  The payment of a
Gross-Up Payment under this Section 9(a) shall not be conditioned upon the
Executive's termination of employment.

                 (b)      Subject to the provisions of Section 9(c), all
determinations required to be made under this Section 9, including whether and
when a Gross-Up Payment is required and the amount of such Gross-Up Payment and
the assumptions to be utilized in arriving at such determination, shall be made
by Price Waterhouse LLP or such other certified public accounting firm as may
be designated by the Executive (the "Accounting Firm"), which shall provide
detailed supporting calculations both to the Company and the Executive within
15 business days of the receipt of notice from the Executive that there has
been a Payment, or such earlier time as is requested by the Company.  In the
event that the Accounting Firm is serving as accountant or auditor for the
individual, entity or group effecting the Change of Control, the Executive
shall appoint another nationally recognized accounting firm to make the
determinations required hereunder (which accounting firm shall then be referred
to as the Accounting Firm hereunder).  All fees and expenses of the Accounting
Firm shall be borne solely by the Company.  Any





                                      -14-
<PAGE>   15
Gross-Up Payment, as determined pursuant to this Section 9, shall be paid by
the Company to the Executive within 5 days after the receipt of the Accounting
Firm's determination.  Any determination by the Accounting Firm shall be
binding upon the Company and the Executive.  As a result of the uncertainty in
the application of Section 4999 of the Code at the time of the initial
determination by the Accounting Firm hereunder, it is possible that Gross-Up
Payments which will not have been made by the Company should have been made
("Underpayment"), consistent with the calculations required to be made
hereunder.  In the event that the Company exhausts its remedies pursuant to
Section 9(c) and the Executive thereafter is required to make a payment of any
Excise Tax, the Accounting Firm shall determine the amount of the Underpayment
that has occurred and any such Underpayment shall be promptly paid by the
Company to or for the benefit of the Executive.

                 (c)      The Executive shall notify the Company in writing of
any claim by the Internal Revenue Service that, if successful, would require
the payment by the Company of the Gross-Up Payment.  Such notification shall be
given as soon as practicable but no later than ten business days after the
Executive is informed in writing of such claim and shall apprise the Company of
the nature of such claim and the date on which such claim is requested to be
paid.  The Executive shall not pay such claim prior to the expiration of the
30-day period following the date on which the Executive gives such notice to
the Company (or such shorter period ending on the date that any payment of
taxes with respect to such claim is due).  If the Company notifies the
Executive in writing prior to the expiration of such period that it desires to
contest such claim, the Executive shall:

                                  (i)      give the Company any information
         reasonably requested by the Company relating to such claim,

                                  (ii)     take such action in connection with
         contesting such claim as the Company shall reasonably request in
         writing from time to time, including, without limitation, accepting
         legal representation with respect to such claim by an attorney
         reasonably selected by the Company,

                                  (iii)    cooperate with the Company in good
         faith in order effectively to contest such claim, and





                                      -15-
<PAGE>   16
                                 (iv)     permit the Company to participate in
         any proceedings relating to such claim;

provided, however, that the Company shall bear and pay directly all costs and
expenses (including additional interest and penalties) incurred in connection
with such contest and shall indemnify and hold the Executive harmless, on an
after-tax basis, for any Excise Tax or income tax (including interest and
penalties with respect thereto) imposed as a result of such representation and
payment of costs and expenses.  Without limitation on the foregoing provisions
of this Section 9(c), the Company shall control all proceedings taken in
connection with such contest and, at its sole option, may pursue or forgo any
and all administrative appeals,  proceedings, hearings and conferences with the
taxing authority in respect of such claim and may, at its sole option, either
direct the Executive to pay the tax claimed and sue for a refund or contest the
claim in any permissible manner, and the Executive agrees to prosecute such
contest to a determination before any administrative tribunal, in a court of
initial jurisdiction and in one or more appellate courts, as the Company shall
determine; provided, however, that if the Company directs the Executive to pay
such claim and sue for a refund, the Company shall advance the amount of such
payment to the Executive, on an interest-free basis and shall indemnify and
hold the Executive harmless, on an after-tax basis, from any Excise Tax or
income tax (including interest or penalties with respect thereto) imposed with
respect to such advance or with respect to any imputed income with respect to
such advance; and further provided that any extension of the statute of
limitations relating to payment of taxes for the taxable year of the Executive
with respect to which such contested amount is claimed to be due is limited
solely to such contested amount.  Furthermore, the Company's control of the
contest shall be limited to issues with respect to which a Gross-Up Payment
would be payable hereunder and the Executive shall be entitled to settle or
contest, as the case may be, any other issue raised by the Internal Revenue
Service or any other taxing authority.

                 (d)      If, after the receipt by the Executive of an amount
advanced by the Company pursuant to Section 9(c), the Executive becomes
entitled to receive any refund with respect to such claim, the Executive shall
(subject to the Company's complying with the requirements of Section 9(c))
promptly pay to the Company the amount of such refund (together with any
interest





                                      -16-
<PAGE>   17
paid or credited thereon after deducting an amount sufficient to pay applicable
federal, state and local taxes on such interest at the highest marginal rates
applicable thereto).  If, after the receipt by the Executive of an amount
advanced by the Company pursuant to Section 9(c), a determination is made that
the Executive shall not be entitled to any refund with respect to such claim
and the Company does not notify the Executive in writing of its intent to
contest such denial of refund prior to the expiration of 30 days after such
determination, then such advance shall be forgiven and shall not be required to
be repaid and the amount of such advance shall offset, to the extent thereof,
the amount of Gross-Up Payment required to be paid.

                 10.      Confidential Information.  The Executive shall hold
in a fiduciary capacity for the benefit of the Company all secret or
confidential information, knowledge or data relating to the Company or any of
its affiliated companies, and their respective businesses, which shall have
been obtained by the Executive during the Executive's employment by the Company
or any of its affiliated companies and which shall not be or become public
knowledge (other than by acts by the Executive or representatives of the
Executive in violation of this Agreement).  After termination of the
Executive's employment with the Company, the Executive shall not, without the
prior written consent of the Company or as may otherwise be required by law or
legal process, communicate or divulge any such information, knowledge or data
to anyone other than the Company and those designated by it.  In no event shall
an asserted violation of the provisions of this Section 10 constitute a basis
for deferring or withholding any amounts otherwise payable to the Executive
under this Agreement.

                 11.      Successors.  (a)  This Agreement is personal to the
Executive and without the prior written consent of the Company shall not be
assignable by the Executive otherwise than by will or the laws of descent and
distribution.  This Agreement shall inure to the benefit of and be enforceable
by the Executive's legal representatives.

                 (b)      This Agreement shall inure to the benefit of and be
binding upon the Company and its successors and assigns.

                 (c)      The Company will require any successor (whether
direct or indirect, by purchase, merger, consolidation or otherwise) to all or
substantially all of the business and/or





                                      -17-
<PAGE>   18
assets of the Company to assume expressly and agree to perform this Agreement
in the same manner and to the same extent that the Company would be required to
perform it if no such succession had taken place.  As used in this Agreement,
"Company" shall mean the Company as hereinbefore defined and any successor to
its business and/or assets as aforesaid which assumes and agrees to perform
this Agreement by operation of law, or otherwise.

                 12.      Miscellaneous.  (a)  This Agreement shall be governed
by and construed in accordance with the laws of the State of Delaware, without
reference to principles of conflict of laws.  The captions of this Agreement
are not part of the provisions hereof and shall have no force or effect.  This
Agreement may not be amended or modified otherwise than by a written agreement
executed by the parties hereto or their respective successors and legal
representatives.

                 (b)      All notices and other communications hereunder shall
be in writing and shall be given by hand delivery to the other party or by
registered or certified mail, return receipt requested, postage prepaid,
addressed as follows:

                 If to the Executive:

                 William S. Wilkins
                 13835 SW 67 Place
                 Miami, Florida  33158

                 If to the Company:

                 John Alden Financial Corporation
                 7300 Corporate Center Drive
                 Miami, FL  33126-1223

                                  Attention:  General Counsel


or to such other address as either party shall have furnished to the other in
writing in accordance herewith.  Notice and communications shall be effective
when actually received by the addressee.





                                      -18-
<PAGE>   19
                 (c)      The invalidity or unenforceability of any provision
of this Agreement shall not affect the validity or enforceability of any other
provision of this Agreement.

                 (d)      The Company may withhold from any amounts payable
under this Agreement such Federal, state, local or foreign taxes as shall be
required to be withheld pursuant to any applicable law or regulation.

                 (e)      The Executive's or the Company's failure to insist
upon strict compliance with any provision hereof or any other provision of this
Agreement or the failure to assert any right the Executive or the Company may
have hereunder, including, without limitation, the right of the Executive to
terminate employment for Good Reason pursuant to Section 5(c)(i)-(v) of this
Agreement, shall not be deemed to be a waiver of such provision or right or any
other provision or right of this Agreement.

                 (f)      The Executive and the Company acknowledge that,
except as may otherwise be provided under any other written agreement between
the Executive and the Company, the employment of the Executive by the Company
is "at will" and, prior to the Effective Date, the Executive's employment may
be terminated by either the Executive or the Company at any time prior to the
Effective Date, in which case the Executive shall have no further rights under
this Agreement.  From and after the Effective Date this Agreement shall
supersede any other agreement between the parties with respect to the subject
matter hereof, including, without limitation, the right of the Executive to
participate in any severance plan of the Company or otherwise receive severance
benefits from the Company.





                                      -19-
<PAGE>   20
                 IN WITNESS WHEREOF, the Executive has hereunto set the
Executive's hand and, pursuant to the authorization from its Board of
Directors, the Company has caused this Agreement to be executed in its name on
its behalf, all as of the day and year first above written.

                                       JOHN ALDEN FINANCIAL CORPORATION



                                       By:  /s/ SCOTT L. STANTON            
                                           ------------------------------------
                                       
                                       Title:  Senior Vice President and Chief
                                              ---------------------------------
                                               Financial Officer
                                              ---------------------------------

                                        /s/ WILLIAM S. WILKINS
                                       ----------------------------------------
                                                    William S. Wilkins





                                      -20-

<PAGE>   1
                                                                  EXHIBIT 10.73


                               CHANGE OF CONTROL
                              EMPLOYMENT AGREEMENT

                 AGREEMENT by and between John Alden Financial Corporation, a
Delaware corporation (the "Company") and William H.  Mauk, Jr. (the
"Executive"), dated as of the 5th day of November, 1997.

                 The Board of Directors of the Company (the "Board"), has
determined that it is in the best interests of the Company and its shareholders
to assure that the Company will have the continued dedication of the Executive,
notwithstanding the possibility, threat or occurrence of a Change of Control
(as defined below) of the Company.  The Board believes it is imperative to
diminish the inevitable distraction of the Executive by virtue of the personal
uncertainties and risks created by a pending or threatened Change of Control
and to encourage the Executive's full attention and dedication to the Company
currently and in the event of any threatened or pending Change of Control, and
to provide the Executive with compensation and benefits arrangements upon a
Change of Control which ensure that the compensation and benefits expectations
of the Executive will be satisfied and which are competitive with those of
other corporations.  Therefore, in order to accomplish these objectives, the
Board has caused the Company to enter into this Agreement.

                 NOW, THEREFORE, IT IS HEREBY AGREED AS FOLLOWS:

                 1.  Certain Definitions.  (a)  The "Effective Date" shall mean
the first date during the Change of Control Period (as defined in Section 1(b))
on which a Change of Control (as defined in Section 2) occurs.  Anything in
this Agreement to the contrary notwithstanding, if a Change of Control occurs
and if the Executive's employment with the Company is terminated prior to the
date on which the Change of Control occurs, and if it is reasonably
demonstrated by the Executive that such termination of employment (i) was at
the request of a third party who has taken steps reasonably calculated to
effect a Change of Control or (ii) otherwise arose in connection with or
anticipation of a Change of Control, then for all purposes of this Agreement
the "Effective Date" shall mean the date immediately prior to the date of such
termination of employment.
<PAGE>   2
                 (b)  The "Change of Control Period" shall mean the period
commencing on the date hereof and ending on the third anniversary of the date
hereof; provided, however, that commencing on the date one year after the date
hereof, and on each annual anniversary of such date (such date and each annual
anniversary thereof shall be hereinafter referred to as the "Renewal Date"),
unless previously terminated, the Change of Control Period shall be
automatically extended so as to terminate 3 years from such Renewal Date,
unless at least 60 days prior to the Renewal Date the Company shall give notice
to the Executive that the Change of Control Period shall not be so extended.

                 2.  Change of Control.  For the purpose of this Agreement, a
"Change of Control" shall mean:

                 (a)  The acquisition by any individual, entity or group
         (within the meaning of Section 13(d)(3) or 14(d)(2) of the Securities
         Exchange Act of 1934, as amended (the "Exchange Act")) (a "Person") of
         beneficial ownership (within the meaning of Rule 13d-3 promulgated
         under the Exchange Act) of 20% or more of either (i) the then
         outstanding shares of common stock of the Company (the "Outstanding
         Company Common Stock") or (ii) the combined voting power of the then
         outstanding voting securities of the Company entitled to vote
         generally in the election of directors (the "Outstanding Company
         Voting Securities"); provided, however, that for purposes of this
         subsection (a), the following acquisitions shall not constitute a
         Change of Control:  (i) any acquisition directly from the Company,
         (ii) any acquisition by the Company, (iii) any acquisition by any
         employee benefit plan (or related trust) sponsored or maintained by
         the Company or any corporation controlled by the Company or (iv) any
         acquisition pursuant to a transaction which complies with clauses (i),
         (ii) and (iii) of subsection (c) of this Section 2; or

                 (b)  Individuals who, as of the date hereof, constitute the
         Board (the "Incumbent Board") cease for any reason to constitute at
         least a majority of the Board; provided, however, that any individual
         becoming a director subsequent to the date hereof whose election, or
         nomination for election by the Company's shareholders, was approved by
         a vote of at least a majority of the directors then comprising the
         Incumbent Board shall be considered as though such individual were a
         member of the Incumbent Board, but excluding, for this purpose, any
         such individual whose initial assumption of office occurs as a result
         of an actual or threatened election contest with respect to the
         election or removal of directors or other actual or threatened
         solicitation of proxies or consents by or on behalf of a Person other
         than the Board; or

                 (c)  Consummation by the Company of a reorganization, merger
         or consolidation or sale or other disposition of all or substantially
         all of the assets of the Company or the acquisition of assets of
         another entity (a "Business Combination"), in each case, unless,





                                      -2-
<PAGE>   3
         following such Business Combination, (i) all or substantially all of
         the individuals and entities who were the beneficial owners,
         respectively, of the Outstanding Company Common Stock and Outstanding
         Company Voting Securities immediately prior to such Business
         Combination beneficially own, directly or indirectly, more than 60%
         of, respectively, the then outstanding shares of common stock and the
         combined voting power of the then outstanding voting securities
         entitled to vote generally in the election of directors, as the case
         may be, of the corporation resulting from such Business Combination
         (including, without limitation, a corporation which as a result of
         such transaction owns the Company or all or substantially all of the
         Company's assets either directly or through one or more subsidiaries)
         in substantially the same proportions as their ownership, immediately
         prior to such Business Combination of the Outstanding Company Common
         Stock and Outstanding Company Voting Securities, as the case may be,
         (ii) no Person (excluding any employee benefit plan (or related trust)
         of the Company or such corporation resulting from such Business
         Combination) beneficially owns, directly or indirectly, 20% or more
         of, respectively, the then outstanding shares of common stock of the
         corporation resulting from such Business Combination or the combined
         voting power of the then outstanding voting securities of such
         corporation except to the extent that such ownership existed prior to
         the Business Combination and (iii) at least a majority of the members
         of the board of directors of the corporation resulting from such
         Business Combination were members of the Incumbent Board at the time
         of the execution of the initial agreement, or of the action of the
         Board, providing for such Business Combination; or

                 (d)  Approval by the shareholders of the Company of a complete
         liquidation or dissolution of the Company.

                 3.  Employment Period.  The Company hereby agrees to continue
the Executive in its employ, and the Executive hereby agrees to remain in the
employ of the Company subject to the terms and conditions of this Agreement,
for the period  commencing on the Effective Date and ending on the third
anniversary of such date (the "Employment Period").

                 4.  Terms of Employment.  (a)  Position and Duties.  (i)  
During the Employment Period, (A) the Executive's position (including status,
offices, titles and reporting requirements), authority, duties and
responsibilities shall be at least commensurate in all material respects with
the most significant of those held, exercised and assigned to the Executive at
any time during the 120-day period immediately preceding the Effective Date and
(B) the Executive's services shall be performed at the location where the
Executive was employed immediately preceding the Effective Date or any office
or location less than 35 miles from such location.





                                      -3-
<PAGE>   4
                          (ii) During the Employment Period, and excluding any 
periods of vacation and sick leave to which the Executive is entitled, the
Executive agrees to devote reasonable attention and time during normal business
hours to the business and affairs of the Company and, to the extent necessary
to discharge the responsibilities assigned to the Executive hereunder, to use
the Executive's reasonable best efforts to perform faithfully and efficiently
such responsibilities.  During the Employment Period it shall not be a
violation of this Agreement for the Executive to (A) serve on corporate, civic
or charitable boards or committees, (B) deliver lectures, fulfill speaking
engagements or teach at educational institutions and (C) manage personal
investments, so long as such activities do not significantly interfere with the
performance of the Executive's responsibilities as an employee of the Company
in accordance with this Agreement.  It is expressly understood and agreed that
to the extent that any such activities have been conducted by the Executive
prior to the Effective Date, the continued conduct of such activities (or the
conduct of activities similar in nature and scope thereto) subsequent to the
Effective Date shall not thereafter be deemed to interfere with the performance
of the Executive's responsibilities to the Company.

                 (b) Compensation.  (i)  Base Salary.  During the Employment
Period, the Executive shall receive an annual base salary ("Annual Base
Salary"), which shall be paid at a monthly rate, at least equal to 12 times the
highest monthly base salary paid or payable, including any base salary which
has been earned but deferred, to the Executive by the Company and its
affiliated companies in respect of the twelve-month period immediately
preceding the month in which the Effective Date occurs.  During the Employment
Period, the Annual Base Salary shall be reviewed within 12 months after the
last salary increase awarded to the Executive prior to the Effective Date and
thereafter at least annually.  Any increase in Annual Base Salary shall not
serve to limit or reduce any other obligation to the Executive under this
Agreement.  Annual Base Salary shall not be reduced after any such increase and
the term Annual Base Salary as utilized in this Agreement shall refer to Annual
Base Salary as so increased.  As used in this Agreement, the term "affiliated
companies" shall include any company controlled by, controlling or under common
control with the Company.





                                      -4-
<PAGE>   5
                          (ii) Annual Bonus.  In addition to Annual Base
Salary, the Executive shall be awarded, for each fiscal year ending during the
Employment Period, an annual bonus (the "Annual Bonus") in cash at least equal
to the Executive's target annual bonus under the Company's Short-Term Incentive
Compensation Plan for 1997 ("1997 Target Bonus") or, if higher, the Executive's
greatest target annual bonus in any subsequent year prior to the Effective
Date.  Each such Annual Bonus shall be paid no later than the end of the third
month of the fiscal year next following the fiscal year for which the Annual
Bonus is awarded, unless the Executive shall elect to defer the receipt of such
Annual Bonus.

                          (iii) Incentive, Savings and Retirement Plans.
During the Employment Period, the Executive shall be entitled to participate in
all incentive, savings and retirement plans, practices, policies and programs
applicable generally to other peer executives of the Company and its affiliated
companies, but in no event shall such plans, practices, policies and programs
provide the Executive with incentive opportunities (measured with respect to
both regular and special incentive opportunities, to the extent, if any, that
such distinction is applicable), savings opportunities and retirement benefit
opportunities, in each case, less favorable, in the aggregate, than the most
favorable of those provided by the Company and its affiliated companies for the
Executive under such plans, practices, policies and programs as in effect at
any time during the 120-day period immediately preceding the Effective Date or
if more favorable to the Executive, those provided generally at any time after
the Effective Date to other peer executives of the Company and its affiliated
companies.

                          (iv) Welfare Benefit Plans.  During the Employment
Period, the Executive and/or the Executive's family, as the case may be, shall
be eligible for participation in and shall receive all benefits under welfare
benefit plans, practices, policies and programs provided by the Company and its
affiliated companies (including, without limitation, medical, prescription,
dental, disability, salary continuance, employee life, group life, accidental
death and travel accident insurance plans and programs) to the extent
applicable generally to other peer executives of the Company and its affiliated
companies, but in no event shall such plans, practices, policies and programs
provide the Executive with benefits which are less favorable, in the aggregate,
than the most favorable of such plans, practices, policies and programs in
effect for





                                      -5-
<PAGE>   6
the Executive at any time during the 120-day period immediately preceding the
Effective Date or, if more favorable to the Executive, those provided generally
at any time after the Effective Date to other peer executives of the Company
and its affiliated companies.

                          (v) Expenses.  During the Employment Period, the
Executive shall be entitled to receive prompt reimbursement for all reasonable
expenses incurred by the Executive in accordance with the most favorable
policies, practices and procedures of the Company and its affiliated companies
in effect for the Executive at any time during the 120-day period immediately
preceding the Effective Date or, if more favorable to the Executive, as in
effect generally at any time thereafter with respect to other peer executives
of the Company and its affiliated companies.

                          (vi) Fringe Benefits.  During the Employment Period,
the Executive shall be entitled to fringe benefits, including, without
limitation, tax and financial planning services, payment of club dues, and, if
applicable, use of an automobile (or an automobile allowance) and payment of
related expenses, in accordance with the most favorable plans, practices,
programs and policies of the Company and its affiliated companies in effect for
the Executive at any time during the 120-day period immediately preceding the
Effective Date or, if more favorable to the Executive, as in effect generally
at any time thereafter with respect to other peer executives of the Company and
its affiliated companies.

                          (vii) Office and Support Staff.  During the
Employment Period, the Executive shall be entitled to an office or offices of a
size and with furnishings and other appointments, and to exclusive personal
secretarial and other assistance, at least equal to the most favorable of the
foregoing provided to the Executive by the Company and its affiliated companies
at any time during the 120-day period immediately preceding the Effective Date
or, if more favorable to the Executive, as provided generally at any time
thereafter with respect to other peer executives of the Company and its
affiliated companies.

                          (viii) Vacation.  During the Employment Period, the
Executive shall be entitled to paid vacation in accordance with the most
favorable plans, policies, programs and practices of the Company and its
affiliated companies as in effect for the Executive at any time





                                      -6-
<PAGE>   7
during the 120-day period immediately preceding the Effective Date or, if more
favorable to the Executive, as in effect generally at any time thereafter with
respect to other peer executives of the Company and its affiliated companies.

                 5.  Termination of Employment.  (a)  Death or Disability.  The
Executive's employment shall terminate automatically upon the Executive's death
during the Employment Period.  If the Company determines in good faith that the
Disability of the Executive has occurred during the Employment Period (pursuant
to the definition of Disability set forth below), it may give to the Executive
written notice in accordance with Section 12(b) of this Agreement of its
intention to terminate the Executive's employment.  In such event, the
Executive's employment with the Company shall terminate effective on the 30th
day after receipt of such notice by the Executive (the "Disability Effective
Date"), provided that, within the 30 days after such receipt, the Executive
shall not have returned to full-time performance of the Executive's duties.
For purposes of this Agreement, "Disability" shall mean the absence of the
Executive from the Executive's duties with the Company on a full-time basis for
180 consecutive business days as a result of incapacity due to mental or
physical illness which is determined to be total and permanent by a physician
selected by the Company or its insurers  and acceptable to the Executive or the
Executive's legal representative.

                 (b)  Cause.  The Company may terminate the Executive's
employment during the Employment Period for Cause.  For purposes of this
Agreement, "Cause" shall mean:

                                  (i)      the willful and continued failure of
         the Executive to perform substantially the Executive's duties with the
         Company or one of its affiliates (other than any such failure
         resulting from incapacity due to physical or mental illness), after a
         written demand for substantial performance is delivered to the
         Executive by the Board or the Chief Executive Officer of the Company
         which specifically identifies the manner in which the Board or Chief
         Executive Officer believes that the Executive has not substantially
         performed the Executive's duties, or

                                  (ii)     the willful engaging by the
         Executive in illegal conduct or gross misconduct which is materially
         and demonstrably injurious to the Company.

For purposes of this provision, no act or failure to act, on the part of the
Executive, shall be considered "willful" unless it is done, or omitted to be
done, by the Executive in bad faith or





                                      -7-
<PAGE>   8
without reasonable belief that the Executive's action or omission was in the
best interests of the Company.  Any act, or failure to act, based upon
authority given pursuant to a resolution duly adopted by the Board or upon the
instructions of the Chief Executive Officer or a senior officer of the Company
or based upon the advice of counsel for the Company shall be conclusively
presumed to be done, or omitted to be done, by the Executive in good faith and
in the best interests of the Company.  The cessation of employment of the
Executive shall not be deemed to be for Cause unless and until there shall have
been delivered to the Executive a copy of a resolution duly adopted by the
affirmative vote of not less than three-quarters of the entire membership of
the Board at a meeting of the Board called and held for such purpose (after
reasonable notice is provided to the Executive and the Executive is given an
opportunity, together with counsel, to be heard before the Board), finding
that, in the good faith opinion of the Board, the Executive is guilty of the
conduct described in subparagraph (i) or (ii) above, and specifying the
particulars thereof in detail.

                 (c) Good Reason.  The Executive's employment may be terminated
by the Executive for Good Reason.  For purposes of this Agreement, "Good
Reason" shall mean:

                                  (i)      the assignment to the Executive of
         any duties inconsistent in any respect with the Executive's position
         (including status, offices, titles and reporting requirements),
         authority, duties or responsibilities as contemplated by Section 4(a)
         of this Agreement, or any other action by the Company which results in
         a diminution in such position, authority, duties or responsibilities,
         excluding for this purpose an isolated, insubstantial and inadvertent
         action not taken in bad faith and which is remedied by the Company
         promptly after receipt of notice thereof given by the Executive;

                                  (ii)     any failure by the Company to comply
         with any of the provisions of Section 4(b) of this Agreement, other
         than an isolated, insubstantial and inadvertent failure not occurring
         in bad faith and which is remedied by the Company promptly after
         receipt of notice thereof given by the Executive;

                                  (iii)    the Company's requiring the
         Executive to be based at any office or location other than as provided
         in Section 4(a)(i)(B) hereof or the Company's requiring the Executive
         to travel on Company business to a substantially greater extent than
         required immediately prior to the Effective Date;

                                  (iv)     any purported termination by the
         Company of the Executive's employment otherwise than as expressly
         permitted by this Agreement; or





                                      -8-
<PAGE>   9
                                  (v)      any failure by the Company to comply
        with and satisfy Section 11(c) of this Agreement.

For purposes of this Section 5(c), any good faith determination of "Good
Reason" made by the Executive shall be conclusive.  Anything in this Agreement
to the contrary notwithstanding, a termination by the Executive for any reason
during the 30-day period immediately following the first anniversary of the
Effective Date shall be deemed to be a termination for Good Reason for all
purposes of this Agreement.

                 (d) Notice of Termination.  Any termination by the Company for
Cause, or by the Executive for Good Reason, shall be communicated by Notice of
Termination to the other party hereto given in accordance with Section 12(b) of
this Agreement.  Such Notice of Termination for Cause shall be given within 90
days following the Company's "actual" knowledge of any event constituting
Cause, and such Notice of Termination for Good Reason shall be given within 180
days following the Executive's "actual" knowledge of an event constituting Good
Reason.  For purposes of this Agreement, a "Notice of Termination" means a
written notice which (i) indicates the specific termination provision in this
Agreement relied upon, (ii) to the extent applicable, sets forth in reasonable
detail the facts and circumstances claimed to provide a basis for termination
of the Executive's employment under the provision so indicated and (iii) if the
Date of Termination (as defined below) is other than the date of receipt of
such notice, specifies the termination date (which date shall be not more than
thirty days after the giving of such notice).  The failure by the Executive or
the Company to set forth in the Notice of Termination any fact or circumstance
which contributes to a showing of Good Reason or Cause shall not waive any
right of the Executive or the Company, respectively, hereunder or preclude the
Executive or the Company, respectively, from asserting such fact or
circumstance in enforcing the Executive's or the Company's rights hereunder.

                 (e) Date of Termination.  "Date of Termination" means (i) if
the Executive's employment is terminated by the Company for Cause, or by the
Executive for Good Reason, the date of receipt of the Notice of Termination or
any later date specified therein, as the case may be, (ii) if the Executive's
employment is terminated by the Company other than for Cause or Disability, the
date on which the Company notifies the Executive of such termination and (iii)
if





                                      -9-
<PAGE>   10
the Executive's employment is terminated by reason of death or Disability, the
date of death of the Executive or the Disability Effective Date, as the case
may be.

                 6. Obligations of the Company upon Termination.  (a) Good
Reason; Other Than for Cause, Death or Disability.  If, during the Employment
Period, the Company shall terminate the Executive's employment other than for
Cause or Disability or the Executive shall terminate employment for Good
Reason:

                   (i)            the Company shall pay to the Executive in a
         lump sum in cash within 30 days after the Date of Termination the
         aggregate of the following amounts:

                                  A.  the sum of (1) the Executive's Annual
                 Base Salary through the Date of Termination to the extent not
                 theretofore paid, (2) the product of (x) the greater of (a)
                 the 1997 Target Bonus and (b) the Executive's highest target
                 annual bonus for any fiscal year that begins both subsequent
                 to 1997 and within 3 years prior to the Date of Termination
                 (such greater amount, the "Highest Target Bonus") and (y) a
                 fraction, the numerator of which is the number of days in the
                 current fiscal year through the Date of Termination, and the
                 denominator of which is 365 and (3) any compensation
                 previously deferred by the Executive (together with any
                 accrued interest or earnings thereon) and any accrued vacation
                 pay, in each case to the extent not theretofore paid (the sum
                 of the amounts described in clauses (1), (2), and (3) shall be
                 hereinafter referred to as the "Accrued Obligations"); and

                                  B.  the amount equal to the product of (1) 3
                 and (2) the sum of (x) the Executive's Annual Base Salary and
                 (y) the Highest Target Bonus; and

                                  C.  an amount equal to the difference between
                 (a) the aggregate benefit under the Company's qualified
                 defined benefit retirement plans (collectively, the
                 "Retirement Plan") and any excess or supplemental defined
                 benefit retirement plans in which the Executive participates
                 (collectively, the "SERP") which the Executive would have
                 accrued (whether or not vested) if the Executive's employment
                 had continued for 3 years after the Date of Termination (based
                 on the assumption that the Executive's compensation in each of
                 the 3 years following such termination would have been that
                 required by Section 4(b)(i) and Section 4(b)(ii)) and (b) the
                 actual vested benefit, if any, of the Executive under the
                 Retirement Plan and the SERP, determined as of the Date of
                 Termination (with the foregoing amounts to be computed on an
                 actuarial present value basis using actuarial assumptions no
                 less favorable to the Executive than the most favorable of
                 those in effect for purposes of computing benefit entitlements
                 under the Retirement Plan and the SERP at any time from the
                 day before the Effective Date) through the Date of
                 Termination;





                                      -10-
<PAGE>   11
                   (ii)           for 3 years after the Executive's Date of
         Termination, or such longer period as may be provided by the terms of
         the appropriate plan, program, practice or policy, the Company shall
         continue benefits to the Executive and/or the Executive's family at
         least equal to those which would have been provided to them in
         accordance with the plans, programs, practices and policies described
         in Section 4(b)(iv) of this Agreement if the Executive's employment
         had not been terminated or, if more favorable to the Executive, as in
         effect generally at any time thereafter with respect to other peer
         executives of the Company and its affiliated companies and their
         families, provided, however, that if the Executive becomes reemployed
         with another employer and is eligible to receive medical or other
         welfare benefits under another employer-provided plan, the medical and
         other welfare benefits described herein shall be secondary to those
         provided under such other plan during such applicable period of
         eligibility, and for purposes of determining eligibility (but not the
         time of commencement of benefits) of the Executive for retiree
         benefits pursuant to such plans, practices, programs and policies, the
         Executive shall be considered to have remained employed until 3 years
         after the Date of Termination and to have retired on the last day of
         such period;

                   (iii)          the Company shall, at its sole expense as
         incurred, provide the Executive with outplacement services the scope
         and provider of which shall be selected by the Executive in the
         Executive's sole discretion; provided, however, that the Company shall
         not be obligated to provide such services for a period of more than
         one year after the Date of Termination or at an aggregate cost in
         excess of $20,000; and

                   (iv)           to the extent not theretofore paid or
         provided, the Company shall timely pay or provide to the Executive any
         other amounts or benefits required to be paid or provided or which the
         Executive is eligible to receive under any plan, program, policy or
         practice or contract or agreement of the Company and its affiliated
         companies (such other amounts and benefits shall be hereinafter
         referred to as the "Other Benefits").

                 (b)  Death.  If the Executive's employment is terminated by
reason of the Executive's death during the Employment Period, this Agreement
shall terminate without further obligations to the Executive's legal
representatives under this Agreement, other than for payment of Accrued
Obligations and the timely payment or provision of Other Benefits.  Accrued
Obligations shall be paid to the Executive's estate or beneficiary, as
applicable, in a lump sum in cash within 30 days after the Date of Termination.
With respect to the provision of Other Benefits, the term Other Benefits as
utilized in this Section 6(b) shall include, without limitation, and the
Executive's estate and/or beneficiaries shall be entitled to receive, benefits
at least equal to the most favorable benefits provided by the Company and
affiliated companies to the estates and beneficiaries of peer executives of the
Company and such affiliated companies under such plans, programs, practices and
policies relating to death benefits, if any, as in effect with respect





                                      -11-
<PAGE>   12
to other peer executives and their beneficiaries at any time during the 120-day
period immediately preceding the Effective Date or, if more favorable to the
Executive's estate and/or the Executive's beneficiaries, as in effect on the
date of the Executive's death with respect to other peer executives of the
Company and its affiliated companies and their beneficiaries.

                 (c) Disability.  If the Executive's employment is terminated
by reason of the Executive's Disability during the Employment Period, this
Agreement shall terminate without further obligations to the Executive, other
than for payment of Accrued Obligations and the timely payment or provision of
Other Benefits.  Accrued Obligations shall be paid to the Executive in a lump
sum in cash within 30 days after the Date of Termination.  With respect to the
provision of Other Benefits, the term Other Benefits as utilized in this
Section 6(c) shall include, and the Executive shall be entitled after the
Disability Effective Date to receive, disability and other benefits at least
equal to the most favorable of those generally provided by the Company and its
affiliated companies to disabled executives and/or their families in accordance
with such plans, programs, practices and policies relating to disability, if
any, as in effect generally with respect to other peer executives and their
families at any time during the 120-day period immediately preceding the
Effective Date or, if more favorable to the Executive and/or the Executive's
family, as in effect at any time thereafter generally with respect to other
peer executives of the Company and its affiliated companies and their families.

                 (d) Cause; Other than for Good Reason.  If the Executive's
employment shall be terminated for Cause during the Employment Period, this
Agreement shall terminate without further obligations to the Executive other
than the obligation to pay to the Executive (x) the Annual Base Salary through
the Date of Termination, (y) the amount of any compensation previously deferred
by the Executive, and (z) Other Benefits, in each case to the extent
theretofore unpaid.  If the Executive voluntarily terminates employment during
the Employment Period, excluding a termination for Good Reason, this Agreement
shall terminate without further obligations to the Executive, other than for
Accrued Obligations and the timely payment or provision of Other Benefits.  In
such case, all Accrued Obligations shall be paid to the Executive in a lump sum
in cash within 30 days of the Date of Termination.





                                      -12-
<PAGE>   13
                 7. Non-exclusivity of Rights.  Nothing in this Agreement shall
prevent or limit the Executive's continuing or future participation in any
plan, program, policy or practice provided by the Company or any of its
affiliated companies and for which the Executive may qualify, nor, subject to
Section 12(f), shall anything herein limit or otherwise affect such rights as
the Executive may have under any contract or agreement with the Company or any
of its affiliated companies.  Amounts which are vested benefits or which the
Executive is otherwise entitled to receive under any plan, policy, practice or
program of or any contract or agreement with the Company or any of its
affiliated companies at or subsequent to the Date of Termination shall be
payable in accordance with such plan, policy, practice or program or contract
or agreement except as explicitly modified by this Agreement.

                 8. Full Settlement; Legal Fees.  The Company's obligation to
make the payments provided for in this Agreement and otherwise to perform its
obligations hereunder shall not be affected by any set-off, counterclaim,
recoupment, defense or other claim, right or action which the Company may have
against the Executive or others.  In no event shall the Executive be obligated
to seek other employment or take any other action by way of mitigation of the
amounts payable to the Executive under any of the provisions of this Agreement
and except as specifically provided in Section 6(a)(ii), such amounts shall not
be reduced whether or not the Executive obtains other employment.  The Company
agrees to pay as incurred, to the full extent permitted by law, all legal fees
and expenses which the Executive may reasonably incur as a result of any
contest (regardless of the outcome thereof) by the Company, the Executive or
others of the validity or enforceability of, or liability or entitlement under,
any provision of this Agreement or any guarantee of performance thereof
(whether such contest is between the Company and the Executive or between
either of them and any third party, and including as a result of any contest by
the Executive about the amount of any payment pursuant to this Agreement), plus
in each case interest on any delayed payment at 120% of the applicable Federal
rate (that applies to the time period of the delay) provided for in Section
7872(f)(2)(A) of the Internal Revenue Code of 1986, as amended (the "Code"),
compounded annually.





                                      -13-
<PAGE>   14
                 9. Certain Additional Payments by the Company.

                 (a) Anything in this Agreement to the contrary
notwithstanding, in the event it shall be determined that any payment, award,
benefit or distribution by the Company (or any of its affiliated entities) or
by any entity which effectuates a Change of Control (or any of its affiliated
entities) to or for the benefit of the Executive (whether pursuant to the terms
of this Agreement or otherwise, but determined without regard to any additional
payments required under this Section 9) (a "Payment") would be subject to the
excise tax imposed by Section 4999 of the Code or any corresponding provisions
of state or local tax laws, or any interest or penalties are incurred by the
Executive with respect to such excise tax (such excise tax, together with any
such interest and penalties, are hereinafter collectively referred to as the
"Excise Tax"), then the Executive shall be entitled to receive an additional
payment (a "Gross-Up Payment") in an amount such that after payment by the
Executive of all taxes (including any interest or penalties imposed with
respect to such taxes), including, without limitation, any income taxes (and
any interest and penalties imposed with respect thereto) and Excise Tax imposed
upon the Gross-Up Payment, the Executive retains an amount of the Gross-Up
Payment equal to the Excise Tax imposed upon the Payments.  The payment of a
Gross-Up Payment under this Section 9(a) shall not be conditioned upon the
Executive's termination of employment.

                 (b) Subject to the provisions of Section 9(c), all
determinations required to be made under this Section 9, including whether and
when a Gross-Up Payment is required and the amount of such Gross-Up Payment and
the assumptions to be utilized in arriving at such determination, shall be made
by Price Waterhouse LLP or such other certified public accounting firm as may
be designated by the Executive (the "Accounting Firm"), which shall provide
detailed supporting calculations both to the Company and the Executive within
15 business days of the receipt of notice from the Executive that there has
been a Payment, or such earlier time as is requested by the Company.  In the
event that the Accounting Firm is serving as accountant or auditor for the
individual, entity or group effecting the Change of Control, the Executive
shall appoint another nationally recognized accounting firm to make the
determinations required hereunder (which accounting firm shall then be referred
to as the Accounting Firm hereunder).  All fees and expenses of the Accounting
Firm shall be borne solely by the Company.  Any





                                      -14-
<PAGE>   15
Gross-Up Payment, as determined pursuant to this Section 9, shall be paid by
the Company to the Executive within 5 days after the receipt of the Accounting
Firm's determination.  Any determination by the Accounting Firm shall be
binding upon the Company and the Executive.  As a result of the uncertainty in
the application of Section 4999 of the Code at the time of the initial
determination by the Accounting Firm hereunder, it is possible that Gross-Up
Payments which will not have been made by the Company should have been made
("Underpayment"), consistent with the calculations required to be made
hereunder.  In the event that the Company exhausts its remedies pursuant to
Section 9(c) and the Executive thereafter is required to make a payment of any
Excise Tax, the Accounting Firm shall determine the amount of the Underpayment
that has occurred and any such Underpayment shall be promptly paid by the
Company to or for the benefit of the Executive.

                 (c) The Executive shall notify the Company in writing of any
claim by the Internal Revenue Service that, if successful, would require the
payment by the Company of the Gross-Up Payment.  Such notification shall be
given as soon as practicable but no later than ten business days after the
Executive is informed in writing of such claim and shall apprise the Company of
the nature of such claim and the date on which such claim is requested to be
paid.  The Executive shall not pay such claim prior to the expiration of the
30-day period following the date on which the Executive gives such notice to
the Company (or such shorter period ending on the date that any payment of
taxes with respect to such claim is due).  If the Company notifies the
Executive in writing prior to the expiration of such period that it desires to
contest such claim, the Executive shall:

                                  (i)      give the Company any information
         reasonably requested by the Company relating to such claim,

                                  (ii)     take such action in connection with
         contesting such claim as the Company shall reasonably request in
         writing from time to time, including, without limitation, accepting
         legal representation with respect to such claim by an attorney
         reasonably selected by the Company,

                                  (iii)    cooperate with the Company in good
         faith in order effectively to contest such claim, and





                                      -15-
<PAGE>   16
                                  (iv)     permit the Company to participate in
         any proceedings relating to such claim;

provided, however, that the Company shall bear and pay directly all costs and
expenses (including additional interest and penalties) incurred in connection
with such contest and shall indemnify and hold the Executive harmless, on an
after-tax basis, for any Excise Tax or income tax (including interest and
penalties with respect thereto) imposed as a result of such representation and
payment of costs and expenses.  Without limitation on the foregoing provisions
of this Section 9(c), the Company shall control all proceedings taken in
connection with such contest and, at its sole option, may pursue or forgo any
and all administrative appeals,  proceedings, hearings and conferences with the
taxing authority in respect of such claim and may, at its sole option, either
direct the Executive to pay the tax claimed and sue for a refund or contest the
claim in any permissible manner, and the Executive agrees to prosecute such
contest to a determination before any administrative tribunal, in a court of
initial jurisdiction and in one or more appellate courts, as the Company shall
determine; provided, however, that if the Company directs the Executive to pay
such claim and sue for a refund, the Company shall advance the amount of such
payment to the Executive, on an interest-free basis and shall indemnify and
hold the Executive harmless, on an after-tax basis, from any Excise Tax or
income tax (including interest or penalties with respect thereto) imposed with
respect to such advance or with respect to any imputed income with respect to
such advance; and further provided that any extension of the statute of
limitations relating to payment of taxes for the taxable year of the Executive
with respect to which such contested amount is claimed to be due is limited
solely to such contested amount.  Furthermore, the Company's control of the
contest shall be limited to issues with respect to which a Gross-Up Payment
would be payable hereunder and the Executive shall be entitled to settle or
contest, as the case may be, any other issue raised by the Internal Revenue
Service or any other taxing authority.

                 (b) If, after the receipt by the Executive of an amount
advanced by the Company pursuant to Section 9(c), the Executive becomes
entitled to receive any refund with respect to such claim, the Executive shall
(subject to the Company's complying with the requirements of Section 9(c))
promptly pay to the Company the amount of such refund (together with any
interest





                                      -16-
<PAGE>   17
paid or credited thereon after deducting an amount sufficient to pay applicable
federal, state and local taxes on such interest at the highest marginal rates
applicable thereto).  If, after the receipt by the Executive of an amount
advanced by the Company pursuant to Section 9(c), a determination is made that
the Executive shall not be entitled to any refund with respect to such claim
and the Company does not notify the Executive in writing of its intent to
contest such denial of refund prior to the expiration of 30 days after such
determination, then such advance shall be forgiven and shall not be required to
be repaid and the amount of such advance shall offset, to the extent thereof,
the amount of Gross-Up Payment required to be paid.

                 10. Confidential Information.  The Executive shall hold in a
fiduciary capacity for the benefit of the Company all secret or confidential
information, knowledge or data relating to the Company or any of its affiliated
companies, and their respective businesses, which shall have been obtained by
the Executive during the Executive's employment by the Company or any of its
affiliated companies and which shall not be or become public knowledge (other
than by acts by the Executive or representatives of the Executive in violation
of this Agreement).  After termination of the Executive's employment with the
Company, the Executive shall not, without the prior written consent of the
Company or as may otherwise be required by law or legal process, communicate or
divulge any such information, knowledge or data to anyone other than the
Company and those designated by it.  In no event shall an asserted violation of
the provisions of this Section 10 constitute a basis for deferring or
withholding any amounts otherwise payable to the Executive under this
Agreement.

                 11. Successors.  (a)  This Agreement is personal to the
Executive and without the prior written consent of the Company shall not be
assignable by the Executive otherwise than by will or the laws of descent and
distribution.  This Agreement shall inure to the benefit of and be enforceable
by the Executive's legal representatives.

                 (b) This Agreement shall inure to the benefit of and be
binding upon the Company and its successors and assigns.

                 (c) The Company will require any successor (whether direct or
indirect, by purchase, merger, consolidation or otherwise) to all or
substantially all of the business and/or





                                      -17-
<PAGE>   18
assets of the Company to assume expressly and agree to perform this Agreement
in the same manner and to the same extent that the Company would be required to
perform it if no such succession had taken place.  As used in this Agreement,
"Company" shall mean the Company as hereinbefore defined and any successor to
its business and/or assets as aforesaid which assumes and agrees to perform
this Agreement by operation of law, or otherwise.

                 12. Miscellaneous.  (a)  This Agreement shall be governed by
and construed in accordance with the laws of the State of Delaware, without
reference to principles of conflict of laws.  The captions of this Agreement
are not part of the provisions hereof and shall have no force or effect.  This
Agreement may not be amended or modified otherwise than by a written agreement
executed by the parties hereto or their respective successors and legal
representatives.

                 (b) All notices and other communications hereunder shall be in
writing and shall be given by hand delivery to the other party or by registered
or certified mail, return receipt requested, postage prepaid, addressed as
follows:

                 If to the Executive:

                 William H. Mauk, Jr.
                 10040 SW 141 Street
                 Miami, Florida  33176

                 If to the Company:

                 John Alden Financial Corporation
                 7300 Corporate Center Drive
                 Miami, FL  33126-1223

                                  Attention:  General Counsel

or to such other address as either party shall have furnished to the other in
writing in accordance herewith.  Notice and communications shall be effective
when actually received by the addressee.





                                      -18-
<PAGE>   19
                 (c) The invalidity or unenforceability of any provision of
this Agreement shall not affect the validity or enforceability of any other
provision of this Agreement.

                 (d) The Company may withhold from any amounts payable under
this Agreement such Federal, state, local or foreign taxes as shall be required
to be withheld pursuant to any applicable law or regulation.

                 (e) The Executive's or the Company's failure to insist upon
strict compliance with any provision hereof or any other provision of this
Agreement or the failure to assert any right the Executive or the Company may
have hereunder, including, without limitation, the right of the Executive to
terminate employment for Good Reason pursuant to Section 5(c)(i)-(v) of this
Agreement, shall not be deemed to be a waiver of such provision or right or any
other provision or right of this Agreement.

                 (f) The Executive and the Company acknowledge that, except as
may otherwise be provided under any other written agreement between the
Executive and the Company, the employment of the Executive by the Company is
"at will" and, prior to the Effective Date, the Executive's employment may be
terminated by either the Executive or the Company at any time prior to the
Effective Date, in which case the Executive shall have no further rights under
this Agreement.  From and after the Effective Date this Agreement shall
supersede any other agreement between the parties with respect to the subject
matter hereof, including, without limitation, the right of the Executive to
participate in any severance plan of the Company or otherwise receive severance
benefits from the Company.





                                      -19-
<PAGE>   20
                 IN WITNESS WHEREOF, the Executive has hereunto set the
Executive's hand and, pursuant to the authorization from its Board of
Directors, the Company has caused this Agreement to be executed in its name on
its behalf, all as of the day and year first above written.

                                       JOHN ALDEN FINANCIAL CORPORATION



                                       By:  /s/ SCOTT L. STANTON            
                                           ------------------------------------
                                       
                                       Title:  Senior Vice President and Chief
                                              ---------------------------------
                                               Financial Officer
                                              ---------------------------------

                                        /s/ WILLIAM H. MAUK, JR.
                                       ----------------------------------------
                                                        William H. Mauk, Jr.





                                      -20-

<PAGE>   1
                                                                   EXHIBIT 10.74

                               CHANGE OF CONTROL
                              EMPLOYMENT AGREEMENT


                 AGREEMENT by and between John Alden Financial Corporation, a
Delaware corporation (the "Company") and James H. Srite (the "Executive"),
dated as of the 5th day of November, 1997.

                 The Board of Directors of the Company (the "Board"), has
determined that it is in the best interests of the Company and its shareholders
to assure that the Company will have the continued dedication of the Executive,
notwithstanding the possibility, threat or occurrence of a Change of Control
(as defined below) of the Company.  The Board believes it is imperative to
diminish the inevitable distraction of the Executive by virtue of the personal
uncertainties and risks created by a pending or threatened Change of Control
and to encourage the Executive's full attention and dedication to the Company
currently and in the event of any threatened or pending Change of Control, and
to provide the Executive with compensation and benefits arrangements upon a
Change of Control which ensure that the compensation and benefits expectations
of the Executive will be satisfied and which are competitive with those of
other corporations.  Therefore, in order to accomplish these objectives, the
Board has caused the Company to enter into this Agreement.

                 NOW, THEREFORE, IT IS HEREBY AGREED AS FOLLOWS:

                 1.       Certain Definitions.  (a)  The "Effective Date" shall
mean the first date during the Change of Control Period (as defined in Section
1(b)) on which a Change of Control (as defined in Section 2) occurs.  Anything
in this Agreement to the contrary notwithstanding, if a Change of Control
occurs and if the Executive's employment with the Company is terminated prior
to the date on which the Change of Control occurs, and if it is reasonably
demonstrated by the Executive that such termination of employment (i) was at
the request of a third party who has taken steps reasonably calculated to
effect a Change of Control or (ii) otherwise arose in connection with or
anticipation of a Change of Control, then for all purposes of this Agreement
the "Effective Date" shall mean the date immediately prior to the date of such
termination of employment.
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                 (b)      The "Change of Control Period" shall mean the period
commencing on the date hereof and ending on the third anniversary of the date
hereof; provided, however, that commencing on the date one year after the date
hereof, and on each annual anniversary of such date (such date and each annual
anniversary thereof shall be hereinafter referred to as the "Renewal Date"),
unless previously terminated, the Change of Control Period shall be
automatically extended so as to terminate 3 years from such Renewal Date,
unless at least 60 days prior to the Renewal Date the Company shall give notice
to the Executive that the Change of Control Period shall not be so extended.

                 2.       Change of Control.  For the purpose of this
Agreement, a "Change of Control" shall mean:

                 (a)  The acquisition by any individual, entity or group
         (within the meaning of Section 13(d)(3) or 14(d)(2) of the Securities
         Exchange Act of 1934, as amended (the "Exchange Act")) (a "Person") of
         beneficial ownership (within the meaning of Rule 13d-3 promulgated
         under the Exchange Act) of 20% or more of either (i) the then
         outstanding shares of common stock of the Company (the "Outstanding
         Company Common  Stock") or (ii) the combined voting power of the then
         outstanding voting securities of the Company entitled to vote
         generally in the election of directors (the "Outstanding Company
         Voting Securities"); provided, however, that for purposes of this
         subsection (a), the following acquisitions shall not constitute a
         Change of Control:  (i) any acquisition directly from the Company,
         (ii) any acquisition by the Company, (iii) any acquisition by any
         employee benefit plan (or related trust) sponsored or maintained by
         the Company or any corporation controlled by the Company or (iv) any
         acquisition pursuant to a transaction which complies with clauses (i),
         (ii) and (iii) of subsection (c) of this Section 2; or

                 (b)  Individuals who, as of the date hereof, constitute the
         Board (the "Incumbent Board") cease for any reason to constitute at
         least a majority of the Board; provided, however, that any individual
         becoming a director subsequent to the date hereof whose election, or
         nomination for election by the Company's shareholders, was approved by
         a vote of at least a majority of the directors then comprising the
         Incumbent Board shall be considered as though such individual were a
         member of the Incumbent Board, but excluding, for this purpose, any
         such individual whose initial assumption of office occurs as a result
         of an actual or threatened election contest with respect to the
         election or removal of directors or other actual or threatened
         solicitation of proxies or consents by or on behalf of a Person other
         than the Board; or

                 (c)  Consummation by the Company of a reorganization, merger
         or consolidation or sale or other disposition of all or substantially
         all of the assets of the Company or the acquisition of assets of
         another entity (a "Business Combination"), in each case, unless,





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         following such Business Combination, (i) all or substantially all of
         the individuals and entities who were the beneficial owners,
         respectively, of the Outstanding Company Common Stock and Outstanding
         Company Voting Securities immediately prior to such Business
         Combination beneficially own, directly or indirectly, more than 60%
         of, respectively, the then outstanding shares of common stock and the
         combined voting power of the then outstanding voting securities
         entitled to vote generally in the election of directors, as the case
         may be, of the corporation resulting from such Business Combination
         (including, without limitation, a corporation which as a result of
         such transaction owns the Company or all or substantially all of the
         Company's assets either directly or through one or more subsidiaries)
         in substantially the same proportions as their ownership, immediately
         prior to such Business Combination of the Outstanding Company Common
         Stock and Outstanding Company Voting Securities, as the case may be,
         (ii) no Person (excluding any employee benefit plan (or related trust)
         of the Company or such corporation resulting from such Business
         Combination) beneficially owns, directly or indirectly, 20% or more
         of, respectively, the then  outstanding shares of common stock of the
         corporation resulting from such Business Combination or the combined
         voting power of the then outstanding voting securities of such
         corporation except to the extent that such ownership existed prior to
         the Business Combination and (iii) at least a majority of the members
         of the board of directors of the corporation resulting from such
         Business Combination were members of the Incumbent Board at the time
         of the execution of the initial agreement, or of the action of the
         Board, providing for such Business Combination; or

                 (d)  Approval by the shareholders of the Company of a complete
liquidation or dissolution of the Company.

                 3.       Employment Period.  The Company hereby agrees to
continue the Executive in its employ, and the Executive hereby agrees to remain
in the employ of the Company subject to the terms and conditions of this
Agreement, for the period commencing on the Effective Date and ending on the
third anniversary of such date (the "Employment Period").

                 4.       Terms of Employment.  (a)  Position and Duties.  (i)
During the Employment Period, (A) the Executive's position (including status,
offices, titles and reporting requirements), authority, duties and
responsibilities shall be at least commensurate in all material respects with
the most significant of those held, exercised and assigned to the Executive at
any time during the 120-day period immediately preceding the Effective Date and
(B) the Executive's services shall be performed at the location where the
Executive was employed immediately preceding the Effective Date or any office
or location less than 35 miles from such location.





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                          (ii)    During the Employment Period, and excluding
any periods of vacation and sick leave to which the Executive is entitled, the
Executive agrees to devote reasonable attention and time during normal business
hours to the business and affairs of  the Company and, to the extent necessary
to discharge the responsibilities assigned to the Executive hereunder, to use
the Executive's reasonable best efforts to perform faithfully and efficiently
such responsibilities.  During the Employment Period it shall not be a
violation of this Agreement for the Executive to (A) serve on corporate, civic
or charitable boards or committees, (B) deliver lectures, fulfill speaking
engagements or teach at educational institutions and (C) manage personal
investments, so long as such activities do not significantly interfere with the
performance of the Executive's responsibilities as an employee of the Company
in accordance with this Agreement.  It is expressly understood and agreed that
to the extent that any such activities have been conducted by the Executive
prior to the Effective Date, the continued conduct of such activities (or the
conduct of activities similar in nature and scope thereto) subsequent to the
Effective Date shall not thereafter be deemed to interfere with the performance
of the Executive's responsibilities to the Company.

                 (b)      Compensation.  (i)  Base Salary.  During the
Employment Period, the Executive shall receive an annual base salary ("Annual
Base Salary"), which shall be paid at a monthly rate, at least equal to 12
times the highest monthly base salary paid or payable, including any base
salary which has been earned but deferred, to the Executive by the Company and
its affiliated companies in respect of the twelve-month period immediately
preceding the month in which the Effective Date occurs.  During the Employment
Period, the Annual Base Salary shall be reviewed  within 12 months after the
last salary increase awarded to the Executive prior to the Effective Date and
thereafter at least annually.  Any increase in Annual Base Salary shall not
serve to limit or reduce any other obligation to the Executive under this
Agreement.  Annual Base Salary shall not be reduced after any such increase and
the term Annual Base Salary as utilized in this Agreement shall refer to Annual
Base Salary as so increased.  As used in this Agreement, the term "affiliated
companies" shall include any company controlled by, controlling or under common
control with the Company.





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                          (ii)    Annual Bonus.  In addition to Annual Base
Salary, the Executive shall be awarded, for each fiscal year ending during the
Employment Period, an annual bonus (the "Annual Bonus") in cash at least equal
to the Executive's target annual bonus under the Company's Short-Term Incentive
Compensation Plan for 1997 ("1997 Target Bonus") or, if higher, the Executive's
greatest target annual bonus in any subsequent year prior to the Effective
Date.  Each such Annual Bonus shall be paid no later than the end of the third
month of the fiscal year next following the fiscal year for which the Annual
Bonus is awarded, unless the Executive shall elect to defer the receipt of such
Annual Bonus.

                          (iii)   Incentive, Savings and Retirement Plans.
During the Employment Period, the Executive shall be entitled to participate in
all incentive, savings and retirement plans, practices, policies and programs
applicable generally to other peer executives of the Company and its affiliated
companies, but in no event shall such plans, practices, policies and programs
provide the Executive with incentive opportunities (measured with respect to
both regular and special incentive opportunities, to the extent, if any, that
such distinction is applicable), savings opportunities and retirement benefit
opportunities, in each case, less favorable, in the aggregate, than the most
favorable of those provided by the Company and its affiliated companies for the
Executive under such plans, practices, policies and programs as in effect at
any time during the 120-day period immediately preceding the Effective Date or
if more favorable to the Executive, those provided generally at any time after
the Effective Date to other peer executives of the Company and its affiliated
companies.

                          (iv)    Welfare Benefit Plans.  During the Employment
Period, the Executive and/or the Executive's family, as the case may be, shall
be eligible for participation in and shall receive all benefits under welfare
benefit plans, practices, policies and programs provided by the Company and its
affiliated companies (including, without limitation, medical, prescription,
dental, disability, salary continuance, employee life, group life, accidental
death and travel accident insurance plans and programs) to the extent
applicable generally to other peer executives of the Company and its affiliated
companies, but in no event shall such plans, practices, policies and programs
provide the Executive with benefits which are less favorable, in the aggregate,
than the most favorable of such plans, practices, policies and programs in
effect for





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the Executive at any time during the 120-day period immediately preceding the
Effective Date  or, if more favorable to the Executive, those provided
generally at any time after the Effective Date to other peer executives of the
Company and its affiliated companies.

                          (v)     Expenses.  During the Employment Period, the
Executive shall be entitled to receive prompt reimbursement for all reasonable
expenses incurred by the Executive in accordance with the most favorable
policies, practices and procedures of the Company and its affiliated companies
in effect for the Executive at any time during the 120-day period immediately
preceding the Effective Date or, if more favorable to the Executive, as in
effect generally at any time thereafter with respect to other peer executives
of the Company and its affiliated companies.

                          (vi)    Fringe Benefits.  During the Employment
Period, the Executive shall be entitled to fringe benefits, including, without
limitation, tax and financial planning services, payment of club dues, and, if
applicable, use of an automobile (or an automobile allowance) and payment of
related expenses, in accordance with the most favorable plans, practices,
programs and policies of the Company and its affiliated companies in effect for
the Executive at any time during the 120-day period immediately preceding the
Effective Date or, if more favorable to the Executive, as in effect generally
at any time thereafter with respect to other peer executives of the Company and
its affiliated companies.

                          (vii)   Office and Support Staff.  During the
Employment Period, the Executive shall be entitled to an office or offices of a
size and with furnishings and other appointments,  and to exclusive personal
secretarial and other assistance, at least equal to the most favorable of the
foregoing provided to the Executive by the Company and its affiliated companies
at any time during the 120-day period immediately preceding the Effective Date
or, if more favorable to the Executive, as provided generally at any time
thereafter with respect to other peer executives of the Company and its
affiliated companies.

                          (viii)  Vacation.  During the Employment Period, the
Executive shall be entitled to paid vacation in accordance with the most
favorable plans, policies, programs and practices of the Company and its
affiliated companies as in effect for the Executive at any time 





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during the 120-day period immediately preceding the Effective Date or, if more
favorable to the Executive, as in effect generally at any time thereafter with
respect to other peer executives of the Company and its affiliated companies.

                 5.       Termination of Employment.  (a)  Death or Disability.
The Executive's employment shall terminate automatically upon the Executive's
death during the Employment Period.  If the Company determines in good faith
that the Disability of the Executive has occurred during the Employment Period
(pursuant to the definition of Disability set forth below), it may give to the
Executive written notice in accordance with Section 12(b) of this Agreement of
its intention to terminate the Executive's employment.  In such event, the
Executive's employment with the Company shall terminate effective on the 30th
day after receipt of such notice by the Executive  (the "Disability Effective
Date"), provided that, within the 30 days after such receipt, the Executive
shall not have returned to full-time performance of the Executive's duties.
For purposes of this Agreement, "Disability" shall mean the absence of the
Executive from the Executive's duties with the Company on a full-time basis for
180 consecutive business days as a result of incapacity due to mental or
physical illness which is determined to be total and permanent by a physician
selected by the Company or its insurers  and acceptable to the Executive or the
Executive's legal representative.

                 (b)      Cause.  The Company may terminate the Executive's
employment during the Employment Period for Cause.  For purposes of this
Agreement, "Cause" shall mean:

                                  (i)      the willful and continued failure of
         the Executive to perform substantially the Executive's duties with the
         Company or one of its affiliates (other than any such failure
         resulting from incapacity due to physical or mental illness), after a
         written demand for substantial performance is delivered to the
         Executive by the Board or the Chief Executive Officer of the Company
         which specifically identifies the manner in which the Board or Chief
         Executive Officer believes that the Executive has not substantially
         performed the Executive's duties, or

                                  (ii)     the willful engaging by the
         Executive in illegal conduct or gross misconduct which is materially
         and demonstrably injurious to the Company.

For purposes of this provision, no act or failure to act, on the part of the
Executive, shall be considered "willful" unless it is done, or omitted to be
done, by the Executive in bad faith or





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without reasonable belief that the Executive's action or omission was in the
best interests of the Company.  Any act, or failure to act, based upon
authority given pursuant to a resolution duly adopted by the Board or upon the
instructions of the Chief  Executive Officer or a senior officer of the Company
or based upon the advice of counsel for the Company shall be conclusively
presumed to be done, or omitted to be done, by the Executive in good faith and
in the best interests of the Company.  The cessation of employment of the
Executive shall not be deemed to be for Cause unless and until there shall have
been delivered to the Executive a copy of a resolution duly adopted by the
affirmative vote of not less than three-quarters of the entire membership of
the Board at a meeting of the Board called and held for such purpose (after
reasonable notice is provided to the Executive and the Executive is given an
opportunity, together with counsel, to be heard before the Board), finding
that, in the good faith opinion of the Board, the Executive is guilty of the
conduct described in subparagraph (i) or (ii) above, and specifying the
particulars thereof in detail.

                 (c)      Good Reason.  The Executive's employment may be
terminated by the Executive for Good Reason.  For purposes of this Agreement,
"Good Reason" shall mean:

                                  (i)      the assignment to the Executive of
         any duties inconsistent in any respect with the Executive's position
         (including status, offices, titles and reporting requirements),
         authority, duties or responsibilities as contemplated by Section 4(a)
         of this Agreement, or any other action by the Company which results in
         a diminution in such position, authority, duties or responsibilities,
         excluding for this purpose an isolated, insubstantial and inadvertent
         action not taken in bad faith and which is remedied by the Company
         promptly after receipt of notice thereof given by the Executive;

                                  (ii)     any failure by the Company to comply
         with any of the provisions of Section 4(b) of this Agreement, other
         than an isolated, insubstantial and inadvertent failure not occurring
         in bad faith and which is remedied by the Company promptly after
         receipt of notice thereof given by the Executive;

                                  (iii)    the Company's requiring the
         Executive to be based at any office or location other than as provided
         in Section 4(a)(i)(B) hereof or the Company's requiring the Executive
         to travel on Company business to a substantially greater extent than
         required immediately prior to the Effective Date;

                                  (iv)     any purported termination by the
         Company of the Executive's employment otherwise than as expressly
         permitted by this Agreement; or





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                                  (v)      any failure by the Company to comply
         with and satisfy Section 11(c) of this Agreement.

For purposes of this Section 5(c), any good faith determination of "Good
Reason" made by the Executive shall be conclusive.  Anything in this Agreement
to the contrary notwithstanding, a termination by the Executive for any reason
during the 30-day period immediately following the first anniversary of the
Effective Date shall be deemed to be a termination for Good Reason for all
purposes of this Agreement.

                 (d)      Notice of Termination.  Any termination by the
Company for Cause, or by the Executive for Good Reason, shall be communicated
by Notice of Termination to the other party hereto given in accordance with
Section 12(b) of this Agreement.  Such Notice of Termination for Cause shall be
given within 90 days following the Company's "actual" knowledge of any event
constituting Cause, and such Notice of Termination for Good Reason shall be
given within 180 days following the Executive's "actual" knowledge of an event
constituting Good Reason.  For purposes of this Agreement, a "Notice of
Termination" means a written notice which (i) indicates the specific
termination provision in this Agreement relied upon, (ii) to the extent
applicable, sets forth in reasonable detail the facts and circumstances claimed
to provide a basis for termination of the Executive's employment under the
provision so indicated and (iii)  if the Date of Termination (as defined below)
is other than the date of receipt of such notice, specifies the termination
date (which date shall be not more than thirty days after the giving of such
notice).  The failure by the Executive or the Company to set forth in the
Notice of Termination any fact or circumstance which contributes to a showing
of Good Reason or Cause shall not waive any right of the Executive or the
Company, respectively, hereunder or preclude the Executive or the Company,
respectively, from asserting such fact or circumstance in enforcing the
Executive's or the Company's rights hereunder.

                 (e)      Date of Termination.  "Date of Termination" means (i)
if the Executive's employment is terminated by the Company for Cause, or by the
Executive for Good Reason, the date of receipt of the Notice of Termination or
any later date specified therein, as the case may be, (ii) if the Executive's
employment is terminated by the Company other than for Cause or Disability, the
date on which the Company notifies the Executive of such termination and (iii)
if





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the Executive's employment is terminated by reason of death or Disability, the
date of death of the Executive or the Disability Effective Date, as the case
may be.

                 6.       Obligations of the Company upon Termination.  (a)
Good Reason; Other Than for Cause, Death or Disability.  If, during the
Employment Period, the Company shall terminate the Executive's employment other
than for Cause or Disability or the Executive shall terminate employment for
Good Reason:

                          (i)     the Company shall pay to the Executive in a
         lump sum in cash within 30 days after the  Date of Termination the
         aggregate of the following amounts:

                                  A.  the sum of (1) the Executive's Annual
                 Base Salary through the Date of Termination to the extent not
                 theretofore paid, (2) the product of (x) the greater of (a)
                 the 1997 Target Bonus and (b) the Executive's highest target
                 annual bonus for any fiscal year that begins both subsequent
                 to 1997 and within 3 years prior to the Date of Termination
                 (such greater amount, the "Highest Target Bonus") and (y) a
                 fraction, the numerator of which is the number of days in the
                 current fiscal year through the Date of Termination, and the
                 denominator of which is 365 and (3) any compensation
                 previously deferred by the Executive (together with any
                 accrued interest or earnings thereon) and any accrued vacation
                 pay, in each case to the extent not theretofore paid (the sum
                 of the amounts described in clauses (1), (2), and (3) shall be
                 hereinafter referred to as the "Accrued Obligations"); and

                                  B.  the amount equal to the product of (1) 3
                 and (2) the sum of (x) the Executive's Annual Base Salary and
                 (y) the Highest Target Bonus; and

                                  C.  an amount equal to the difference between
                 (a) the aggregate benefit under the Company's qualified
                 defined benefit retirement plans (collectively, the
                 "Retirement Plan") and any excess or supplemental defined
                 benefit retirement plans in which the Executive participates
                 (collectively, the "SERP") which the Executive would have
                 accrued (whether or not vested) if the Executive's employment
                 had continued for 3 years after the Date of Termination (based
                 on the assumption that the Executive's compensation in each of
                 the 3 years following such termination would have been that
                 required by Section 4(b)(i) and Section 4(b)(ii)) and (b) the
                 actual vested benefit, if any, of the Executive under the
                 Retirement Plan and the SERP, determined as of the Date of
                 Termination (with the foregoing amounts to be computed on an
                 actuarial present value basis using actuarial assumptions no
                 less favorable to the Executive than the most favorable of
                 those in effect for purposes of computing benefit entitlements
                 under the Retirement Plan and the SERP at any time from the
                 day before the Effective Date) through the Date of
                 Termination;





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                          (ii)    for 3 years after the Executive's Date of
         Termination, or such longer period as may be provided by the terms of
         the appropriate plan, program, practice or policy, the Company shall
         continue benefits to the Executive and/or the Executive's family at
         least equal to those which would have been provided to them in
         accordance with the plans, programs, practices and policies described
         in Section 4(b)(iv) of this Agreement if the Executive's employment
         had not been terminated or, if  more favorable to the Executive, as in
         effect generally at any time thereafter with respect to other peer
         executives of the Company and its affiliated companies and their
         families, provided, however, that if the Executive becomes reemployed
         with another employer and is eligible to receive medical or other
         welfare benefits under another employer-provided plan, the medical and
         other welfare benefits described herein shall be secondary to those
         provided under such other plan during such applicable period of
         eligibility, and for purposes of determining eligibility (but not the
         time of commencement of benefits) of the Executive for retiree
         benefits pursuant to such plans, practices, programs and policies, the
         Executive shall be considered to have remained employed until 3 years
         after the Date of Termination and to have retired on the last day of
         such period;

                          (iii)   the Company shall, at its sole expense as
         incurred, provide the Executive with outplacement services the scope
         and provider of which shall be selected by the Executive in the
         Executive's sole discretion; provided, however, that the Company shall
         not be obligated to provide such services for a period of more than
         one year after the Date of Termination or at an aggregate cost in
         excess of $20,000; and

                          (iv)    to the extent not theretofore paid or
         provided, the Company shall timely pay or provide to the Executive any
         other amounts or benefits required to be paid or provided or which the
         Executive is eligible to receive under any plan, program, policy or
         practice or contract or agreement of the Company and its affiliated
         companies (such other amounts and benefits shall be hereinafter
         referred to as the "Other Benefits").

                 (b)      Death.  If the Executive's employment is terminated
by reason of the Executive's death during the Employment Period, this Agreement
shall terminate without further obligations to the Executive's legal
representatives under this Agreement, other than for payment of Accrued
Obligations and the timely payment or provision of Other Benefits.  Accrued
Obligations shall be paid to the Executive's estate or beneficiary, as
applicable, in a lump sum in cash within 30 days after the Date of Termination.
With respect to the provision of Other Benefits, the term Other Benefits as
utilized in this Section 6(b) shall include, without limitation, and the
Executive's estate and/or beneficiaries shall be entitled to  receive, benefits
at least equal to the most favorable benefits provided by the Company and
affiliated companies to the estates and beneficiaries of peer executives of the
Company and such affiliated companies under such plans, programs, practices and
policies relating to death benefits, if any, as in effect with respect





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to other peer executives and their beneficiaries at any time during the 120-day
period immediately preceding the Effective Date or, if more favorable to the
Executive's estate and/or the Executive's beneficiaries, as in effect on the
date of the Executive's death with respect to other peer executives of the
Company and its affiliated companies and their beneficiaries.

                 (c)      Disability.  If the Executive's employment is
terminated by reason of the Executive's Disability during the Employment
Period, this Agreement shall terminate without further obligations to the
Executive, other than for payment of Accrued Obligations and the timely payment
or provision of Other Benefits.  Accrued Obligations shall be paid to the
Executive in a lump sum in cash within 30 days after the Date of Termination.
With respect to the provision of Other Benefits, the term Other Benefits as
utilized in this Section 6(c) shall include, and the Executive shall be
entitled after the Disability Effective Date to receive, disability and other
benefits at least equal to the most favorable of those generally provided by
the Company and its affiliated companies to disabled executives and/or their
families in accordance with such plans, programs, practices and policies
relating to disability, if any, as in effect generally with respect to other
peer executives and their families at any time  during the 120-day period
immediately preceding the Effective Date or, if more favorable to the Executive
and/or the Executive's family, as in effect at any time thereafter generally
with respect to other peer executives of the Company and its affiliated
companies and their families.

                 (d)      Cause; Other than for Good Reason.  If the
Executive's employment shall be terminated for Cause during the Employment
Period, this Agreement shall terminate without further obligations to the
Executive other than the obligation to pay to the Executive (x) the Annual Base
Salary through the Date of Termination, (y) the amount of any compensation
previously deferred by the Executive, and (z) Other Benefits, in each case to
the extent theretofore unpaid.  If the Executive voluntarily terminates
employment during the Employment Period, excluding a termination for Good
Reason, this Agreement shall terminate without further obligations to the
Executive, other than for Accrued Obligations and the timely payment or
provision of Other Benefits.  In such case, all Accrued Obligations shall be
paid to the Executive in a lump sum in cash within 30 days of the Date of
Termination.





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                 7.       Non-exclusivity of Rights.  Nothing in this Agreement
shall prevent or limit the Executive's continuing or future participation in
any plan, program, policy or practice provided by the Company or any of its
affiliated companies and for which the Executive may qualify, nor, subject to
Section 12(f), shall anything herein limit or otherwise affect such rights as
the Executive may have under any contract or agreement  with the Company or any
of its affiliated companies.  Amounts which are vested benefits or which the
Executive is otherwise entitled to receive under any plan, policy, practice or
program of or any contract or agreement with the Company or any of its
affiliated companies at or subsequent to the Date of Termination shall be
payable in accordance with such plan, policy, practice or program or contract
or agreement except as explicitly modified by this Agreement.

                 8.       Full Settlement; Legal Fees.  The Company's
obligation to make the payments provided for in this Agreement and otherwise to
perform its obligations hereunder shall not be affected by any set-off,
counterclaim, recoupment, defense or other claim, right or action which the
Company may have against the Executive or others.  In no event shall the
Executive be obligated to seek other employment or take any other action by way
of mitigation of the amounts payable to the Executive under any of the
provisions of this Agreement and except as specifically provided in Section
6(a)(ii), such amounts shall not be reduced whether or not the Executive
obtains other employment.  The Company agrees to pay as incurred, to the full
extent permitted by law, all legal fees and expenses which the Executive may
reasonably incur as a result of any contest (regardless of the outcome thereof)
by the Company, the Executive or others of the validity or enforceability of,
or liability or entitlement under, any provision of this Agreement or any
guarantee of performance thereof (whether such contest is between the Company
and the Executive or between either of them and any third party,  and including
as a result of any contest by the Executive about the amount of any payment
pursuant to this Agreement), plus in each case interest on any delayed payment
at 120% of the applicable Federal rate (that applies to the time period of the
delay) provided for in Section 7872(f)(2)(A) of the Internal Revenue Code of
1986, as amended (the "Code"), compounded annually.





                                      -13-
<PAGE>   14
                 9.       Certain Additional Payments by the Company.

                 (a)      Anything in this Agreement to the contrary
notwithstanding, in the event it shall be determined that any payment, award,
benefit or distribution by the Company (or any of its affiliated entities) or
by any entity which effectuates a Change of Control (or any of its affiliated
entities) to or for the benefit of the Executive (whether pursuant to the terms
of this Agreement or otherwise, but determined without regard to any additional
payments required under this Section 9) (a "Payment") would be subject to the
excise tax imposed by Section 4999 of the Code or any corresponding provisions
of state or local tax laws, or any interest or penalties are incurred by the
Executive with respect to such excise tax (such excise tax, together with any
such interest and penalties, are hereinafter collectively referred to as the
"Excise Tax"), then the Executive shall be entitled to receive an additional
payment (a "Gross-Up Payment") in an amount such that after payment by the
Executive of all taxes (including any interest or penalties imposed with
respect to such taxes), including, without limitation, any income taxes (and
any interest and penalties imposed with respect thereto) and  Excise Tax
imposed upon the Gross-Up Payment, the Executive retains an amount of the
Gross-Up Payment equal to the Excise Tax imposed upon the Payments.  The
payment of a Gross-Up Payment under this Section 9(a) shall not be conditioned
upon the Executive's termination of employment.

                 (b)      Subject to the provisions of Section 9(c), all
determinations required to be made under this Section 9, including whether and
when a Gross-Up Payment is required and the amount of such Gross-Up Payment and
the assumptions to be utilized in arriving at such determination, shall be made
by Price Waterhouse LLP or such other certified public accounting firm as may
be designated by the Executive (the "Accounting Firm"), which shall provide
detailed supporting calculations both to the Company and the Executive within
15 business days of the receipt of notice from the Executive that there has
been a Payment, or such earlier time as is requested by the Company.  In the
event that the Accounting Firm is serving as accountant or auditor for the
individual, entity or group effecting the Change of Control, the Executive
shall appoint another nationally recognized accounting firm to make the
determinations required hereunder (which accounting firm shall then be referred
to as the Accounting Firm hereunder).  All fees and expenses of the Accounting
Firm shall be borne solely by the Company.  Any





                                      -14-
<PAGE>   15
Gross-Up Payment, as determined pursuant to this Section 9, shall be paid by
the Company to the Executive within 5 days after the receipt of the Accounting
Firm's determination.  Any determination by the Accounting Firm shall be
binding upon the  Company and the Executive.  As a result of the uncertainty in
the application of Section 4999 of the Code at the time of the initial
determination by the Accounting Firm hereunder, it is possible that Gross-Up
Payments which will not have been made by the Company should have been made
("Underpayment"), consistent with the calculations required to be made
hereunder.  In the event that the Company exhausts its remedies pursuant to
Section 9(c) and the Executive thereafter is required to make a payment of any
Excise Tax, the Accounting Firm shall determine the amount of the Underpayment
that has occurred and any such Underpayment shall be promptly paid by the
Company to or for the benefit of the Executive.

                 (c)      The Executive shall notify the Company in writing of
any claim by the Internal Revenue Service that, if successful, would require
the payment by the Company of the Gross-Up Payment.  Such notification shall be
given as soon as practicable but no later than ten business days after the
Executive is informed in writing of such claim and shall apprise the Company of
the nature of such claim and the date on which such claim is requested to be
paid.  The Executive shall not pay such claim prior to the expiration of the
30-day period following the date on which the Executive gives such notice to
the Company (or such shorter period ending on the date that any payment of
taxes with respect to such claim is due).  If the Company notifies the
Executive in writing prior to the expiration of such period that it desires to
contest such claim, the Executive shall:

                          (i)     give the Company any information reasonably 
         requested by the Company relating to such claim,

                          (ii)    take such action in connection with
         contesting such claim as the Company shall reasonably request in
         writing from time to time, including, without limitation, accepting
         legal representation with respect to such claim by an attorney
         reasonably selected by the Company,

                          (iii)   cooperate with the Company in good faith in 
         order effectively to contest such claim, and





                                      -15-
<PAGE>   16
                          (iv)    permit the Company to participate in any 
         proceedings relating to such claim;

provided, however, that the Company shall bear and pay directly all costs and
expenses (including additional interest and penalties) incurred in connection
with such contest and shall indemnify and hold the Executive harmless, on an
after-tax basis, for any Excise Tax or income tax (including interest and
penalties with respect thereto) imposed as a result of such representation and
payment of costs and expenses.  Without limitation on the foregoing provisions
of this Section 9(c), the Company shall control all proceedings taken in
connection with such contest and, at its sole option, may pursue or forgo any
and all administrative appeals,  proceedings, hearings and conferences with the
taxing authority in respect of such claim and may, at its sole option, either
direct the Executive to pay the tax claimed and sue for a refund or contest the
claim in any permissible manner, and the Executive agrees to prosecute such
contest to a determination before any administrative tribunal, in a court of
initial jurisdiction and in one or more appellate courts, as the Company shall
determine; provided, however, that if the Company directs the Executive to pay
such claim and sue for a refund, the Company shall advance the amount of such
payment to the Executive, on an interest-free basis and shall indemnify and
hold the Executive harmless, on an after-tax basis, from any Excise Tax or
income tax (including interest or penalties with respect thereto) imposed with
respect to such advance or with respect to any imputed income with respect to
such advance; and further provided that any extension of the statute of
limitations relating to payment of taxes for the taxable year of the Executive
with respect to which such contested amount is claimed to be due is limited
solely to such contested amount.  Furthermore, the Company's control of the
contest shall be limited to issues with respect to which a Gross-Up Payment
would be payable hereunder and the Executive shall be entitled to settle or
contest, as the case may be, any other issue raised by the Internal Revenue
Service or any other taxing authority.

                 (d)      If, after the receipt by the Executive of an amount
advanced by the Company pursuant to Section 9(c), the Executive becomes
entitled to receive any refund with respect to such claim, the Executive shall
(subject to the Company's complying with the requirements of Section 9(c))
promptly pay to the Company the amount of such refund (together with any
interest





                                      -16-
<PAGE>   17
paid or credited thereon after deducting an amount sufficient to pay applicable
federal, state and local taxes on such interest at the highest marginal rates
applicable thereto).  If, after the receipt by the Executive of an amount
advanced by the Company pursuant to Section 9(c), a determination is made that
the Executive shall not be entitled to any refund with respect to such claim
and the Company does not notify the Executive in writing of its intent to
contest such denial of refund prior to the expiration of 30 days after such
determination, then such advance shall be forgiven and shall not be required to
be repaid and the amount of such advance shall offset, to the extent thereof,
the amount of Gross-Up Payment required to be paid.

                 10.      Confidential Information.  The Executive shall hold
in a fiduciary capacity for the benefit of the Company all secret or
confidential information, knowledge or data relating to the Company or any of
its affiliated companies, and their respective businesses, which shall have
been obtained by the Executive during the Executive's employment by the Company
or any of its affiliated companies and which shall not be or become public
knowledge (other than by acts by the Executive or representatives of the
Executive in violation of this Agreement).  After termination of the
Executive's employment with the Company, the Executive shall not, without the
prior written consent of the Company or as may otherwise be required by law or
legal process, communicate or divulge any such information, knowledge or data
to anyone other than the Company and those designated by it.  In no event shall
an asserted violation of the provisions of this Section 10 constitute a basis
for deferring or withholding any amounts otherwise payable to the Executive
under this Agreement.

                 11.      Successors.  (a)  This Agreement is personal to the
Executive and without the prior written consent of the Company shall not be
assignable by the Executive otherwise than by will or the laws of descent and
distribution.  This Agreement shall inure to the benefit of and be enforceable
by the Executive's legal representatives.

                 (b)      This Agreement shall inure to the benefit of and be
binding upon the Company and its successors and assigns.

                 (c)      The Company will require any successor (whether
direct or indirect, by purchase, merger, consolidation or otherwise) to all or
substantially all of the business and/or





                                      -17-
<PAGE>   18
assets of the Company to assume expressly and agree to perform this Agreement
in the same manner and to the same extent that the Company would be required to
perform it if no such succession had taken place.  As used in this Agreement,
"Company" shall mean the Company as hereinbefore defined and any successor to
its business and/or assets as aforesaid which assumes and agrees to perform
this Agreement by operation of law, or otherwise.

                 12.      Miscellaneous.  (a)  This Agreement shall be governed
by and construed in accordance with the laws of the State of Delaware, without
reference to principles of conflict of laws.  The captions of this Agreement
are not part of the provisions hereof and shall have no force or effect.  This
Agreement may not be amended or modified otherwise than by a written agreement
executed by the parties hereto or their respective successors and legal
representatives.

                 (b)      All notices and other communications hereunder shall
be in writing and shall be given by hand delivery to the other party or by
registered or certified mail, return receipt requested, postage prepaid,
addressed as follows:

                 If to the Executive:

                 James H. Srite
                 472 NW 107 Avenue
                 Coral Springs, Florida  33071

                 If to the Company:

                 John Alden Financial Corporation
                 7300 Corporate Center Drive
                 Miami, FL  33126-1223

                          Attention:  General Counsel

or to such other address as either party shall have furnished to the other in
writing in accordance herewith.  Notice and communications shall be effective
when actually received by the addressee.





                                      -18-
<PAGE>   19
                 (c)      The invalidity or unenforceability of any provision
of this Agreement shall not affect the validity or enforceability of any other
provision of this Agreement.

                 (d)      The Company may withhold from any amounts payable
under this Agreement such Federal, state, local or foreign taxes as shall be
required to be withheld pursuant to any applicable law or regulation.

                 (e)      The Executive's or the Company's failure to insist
upon strict compliance with any provision hereof or any other provision of this
Agreement or the failure to assert any right the Executive or the Company may
have hereunder, including, without limitation, the right of the Executive to
terminate employment for Good Reason pursuant to Section 5(c)(i)-(v) of this
Agreement, shall not be deemed to be a waiver of such provision or right or any
other provision or right of this Agreement.

                 (f)      The Executive and the Company acknowledge that,
except as may otherwise be provided under any other written agreement between
the Executive and the Company, the employment of the Executive by the Company
is "at will" and, prior to the Effective Date, the Executive's employment may
be terminated by either the Executive or the Company at any time prior to the
Effective Date, in which case the Executive shall have no further rights under
this Agreement.  From and after the Effective Date this Agreement shall
supersede any other agreement between the parties with respect to the subject
matter hereof, including, without limitation, the right of the Executive to
participate in any severance plan of the Company or otherwise receive severance
benefits from the Company.





                                      -19-
<PAGE>   20
         IN WITNESS WHEREOF, the Executive has hereunto set the Executive's
hand and, pursuant to the authorization from its Board of Directors, the
Company has caused this Agreement to be executed in its name on its behalf, all
as of the day and year first above written.

                                           JOHN ALDEN FINANCIAL CORPORATION



                                           By: /s/ SCOTT L. STANTON
                                              -----------------------------


                                           Title: Senior Vice President and
                                                 --------------------------
                                                  Chief Financial Officer
                                                 --------------------------

                                            /s/ JAMES H. SRITE
                                           --------------------------------
                                                    James H. Srite





                                      -20-

<PAGE>   1
                                                                   EXHIBIT 10.75




                              CHANGE OF CONTROL
                              EMPLOYMENT AGREEMENT

                 AGREEMENT by and between John Alden Financial Corporation, a
Delaware corporation (the "Company") and Patsy Campola (the "Executive"), dated
as of the 5th day of November, 1997.

                 The Board of Directors of the Company (the "Board"), has
determined that it is in the best interests of the Company and its shareholders
to assure that the Company will have the continued dedication of the Executive,
notwithstanding the possibility, threat or occurrence of a Change of Control
(as defined below) of the Company.  The Board believes it is imperative to
diminish the inevitable distraction of the Executive by virtue of the personal
uncertainties and risks created by a pending or threatened Change of Control
and to encourage the Executive's full attention and dedication to the Company
currently and in the event of any threatened or pending Change of Control, and
to provide the Executive with compensation and benefits arrangements upon a
Change of Control which ensure that the compensation and benefits expectations
of the Executive will be satisfied and which are competitive with those of
other corporations.  Therefore, in order to accomplish these objectives, the
Board has caused the Company to enter into this Agreement.

                 NOW, THEREFORE, IT IS HEREBY AGREED AS FOLLOWS:

                 1. Certain Definitions.  (a) The "Effective Date" shall mean
the first date during the Change of Control Period (as defined in Section 1(b))
on which a Change of Control (as defined in Section 2) occurs.  Anything in
this Agreement to the contrary notwithstanding, if a Change of Control occurs
and if the Executive's employment with the Company is terminated prior to the
date on which the Change of Control occurs, and if it is reasonably
demonstrated by the Executive that such termination of employment (i) was at
the request of a third party who has taken steps reasonably calculated to
effect a Change of Control or (ii) otherwise arose in connection with or
anticipation of a Change of Control, then for all purposes of this Agreement
the "Effective Date" shall mean the date immediately prior to the date of such
termination of employment.
<PAGE>   2
                 (b)  The "Change of Control Period" shall mean the period 
commencing on the date hereof and ending on the third anniversary of the date
hereof; provided, however, that commencing on the date one year after the date
hereof, and on each annual anniversary of such date (such date and each annual
anniversary thereof shall be hereinafter referred to as the "Renewal Date"),
unless previously terminated, the Change of Control Period shall be
automatically extended so as to terminate 3 years from such Renewal Date,
unless at least 60 days prior to the Renewal Date the Company shall give notice
to the Executive that the Change of Control Period shall not be so extended.

                 2.  Change of Control.  For the purpose of this Agreement, a
"Change of Control" shall mean:

                 (a)  The acquisition by any individual, entity or group
         (within the meaning of Section 13(d)(3) or 14(d)(2) of the Securities
         Exchange Act of 1934, as amended (the "Exchange Act")) (a "Person") of
         beneficial ownership (within the meaning of Rule 13d-3 promulgated
         under the Exchange Act) of 20% or more of either (i) the then
         outstanding shares of common stock of the Company (the "Outstanding
         Company Common Stock") or (ii) the combined voting power of the then
         outstanding voting securities of the Company entitled to vote
         generally in the election of directors (the "Outstanding Company
         Voting Securities"); provided, however, that for purposes of this
         subsection (a), the following acquisitions shall not constitute a
         Change of Control:  (i) any acquisition directly from the Company,
         (ii) any acquisition by the Company, (iii) any acquisition by any
         employee benefit plan (or related trust) sponsored or maintained by
         the Company or any corporation controlled by the Company or (iv) any
         acquisition pursuant to a transaction which complies with clauses (i),
         (ii) and (iii) of subsection (c) of this Section 2; or

                 (b)  Individuals who, as of the date hereof, constitute the
         Board (the "Incumbent Board") cease for any reason to constitute at
         least a majority of the Board; provided, however, that any individual
         becoming a director subsequent to the date hereof whose election, or
         nomination for election by the Company's shareholders, was approved by
         a vote of at least a majority of the directors then comprising the
         Incumbent Board shall be considered as though such individual were a
         member of the Incumbent Board, but excluding, for this purpose, any
         such individual whose initial assumption of office occurs as a result
         of an actual or threatened election contest with respect to the
         election or removal of directors or other actual or threatened
         solicitation of proxies or consents by or on behalf of a Person other
         than the Board; or

                 (c)  Consummation by the Company of a reorganization, merger
         or consolidation or sale or other disposition of all or substantially
         all of the assets of the Company or the acquisition of assets of
         another entity (a "Business Combination"), in each case, unless,





                                      -2-
<PAGE>   3
         following such Business Combination, (i) all or substantially all of
         the individuals and entities who were the beneficial owners,
         respectively, of the Outstanding Company Common Stock and Outstanding
         Company Voting Securities immediately prior to such Business
         Combination beneficially own, directly or indirectly, more than 60%
         of, respectively, the then outstanding shares of common stock and the
         combined voting power of the then outstanding voting securities
         entitled to vote generally in the election of directors, as the case
         may be, of the corporation resulting from such Business Combination
         (including, without limitation, a corporation which as a result of
         such transaction owns the Company or all or substantially all of the
         Company's assets either directly or through one or more subsidiaries)
         in substantially the same proportions as their ownership, immediately
         prior to such Business Combination of the Outstanding Company Common
         Stock and Outstanding Company Voting Securities, as the case may be,
         (ii) no Person (excluding any employee benefit plan (or related trust)
         of the Company or such corporation resulting from such Business
         Combination) beneficially owns, directly or indirectly, 20% or more
         of, respectively, the then outstanding shares of common stock of the
         corporation resulting from such Business Combination or the combined
         voting power of the then outstanding voting securities of such
         corporation except to the extent that such ownership existed prior to
         the Business Combination and (iii) at least a majority of the members
         of the board of directors of the corporation resulting from such
         Business Combination were members of the Incumbent Board at the time
         of the execution of the initial agreement, or of the action of the
         Board, providing for such Business Combination; or

                 (d)  Approval by the shareholders of the Company of a complete
liquidation or dissolution of the Company.

                 3. Employment Period.  The Company hereby agrees to continue
the Executive in its employ, and the Executive hereby agrees to remain in the
employ of the Company subject to the terms and conditions of this Agreement,
for the period  commencing on the Effective Date and ending on the third
anniversary of such date (the "Employment Period").

                 4.  Terms of Employment.  (a)  Position and Duties.  (i)
During the Employment Period, (A) the Executive's position (including status,
offices, titles and reporting requirements), authority, duties and
responsibilities shall be at least commensurate in all material respects with
the most significant of those held, exercised and assigned to the Executive at
any time during the 120-day period immediately preceding the Effective Date and
(B) the Executive's services shall be performed at the location where the
Executive was employed immediately preceding the Effective Date or any office
or location less than 35 miles from such location.





                                      -3-
<PAGE>   4
                                  (ii) During the Employment Period, and
excluding any periods of vacation and sick leave to which the Executive is
entitled, the Executive agrees to devote reasonable attention and time during
normal business hours to the business and affairs of the Company and, to the
extent necessary to discharge the responsibilities assigned to the Executive
hereunder, to use the Executive's reasonable best efforts to perform faithfully
and efficiently such responsibilities.  During the Employment Period it shall
not be a violation of this Agreement for the Executive to (A) serve on
corporate, civic or charitable boards or committees, (B) deliver lectures,
fulfill speaking engagements or teach at educational institutions and (C)
manage personal investments, so long as such activities do not significantly
interfere with the performance of the Executive's responsibilities as an
employee of the Company in accordance with this Agreement.  It is expressly
understood and agreed that to the extent that any such activities have been
conducted by the Executive prior to the Effective Date, the continued conduct
of such activities (or the conduct of activities similar in nature and scope
thereto) subsequent to the Effective Date shall not thereafter be deemed to
interfere with the performance of the Executive's responsibilities to the
Company.

                 (b)  Compensation.  (i)  Base Salary.  During the Employment
Period, the Executive shall receive an annual base salary ("Annual Base
Salary"), which shall be paid at a monthly rate, at least equal to 12 times the
highest monthly base salary paid or payable, including any base salary which
has been earned but deferred, to the Executive by the Company and its
affiliated companies in respect of the twelve-month period immediately
preceding the month in which the Effective Date occurs.  During the Employment
Period, the Annual Base Salary shall be reviewed within 12 months after the
last salary increase awarded to the Executive prior to the Effective Date and
thereafter at least annually.  Any increase in Annual Base Salary shall not
serve to limit or reduce any other obligation to the Executive under this
Agreement.  Annual Base Salary shall not be reduced after any such increase and
the term Annual Base Salary as utilized in this Agreement shall refer to Annual
Base Salary as so increased.  As used in this Agreement, the term "affiliated
companies" shall include any company controlled by, controlling or under common
control with the Company.





                                      -4-
<PAGE>   5
                          (ii)  Annual Bonus.  In addition to Annual Base
Salary, the Executive shall be awarded, for each fiscal year ending during the
Employment Period, an annual bonus (the "Annual Bonus") in cash at least equal
to the Executive's target annual bonus under the Company's Short-Term Incentive
Compensation Plan for 1997 ("1997 Target Bonus") or, if higher, the Executive's
greatest target annual bonus in any subsequent year prior to the Effective
Date.  Each such Annual Bonus shall be paid no later than the end of the third
month of the fiscal year next following the fiscal year for which the Annual
Bonus is awarded, unless the Executive shall elect to defer the receipt of such
Annual Bonus.

                          (iii)  Incentive, Savings and Retirement Plans.
During the Employment Period, the Executive shall be entitled to participate in
all incentive, savings and retirement plans, practices, policies and programs
applicable generally to other peer executives of the Company and its affiliated
companies, but in no event shall such plans, practices, policies and programs
provide the Executive with incentive opportunities (measured with respect to
both regular and special incentive opportunities, to the extent, if any, that
such distinction is applicable), savings opportunities and retirement benefit
opportunities, in each case, less favorable, in the aggregate, than the most
favorable of those provided by the Company and its affiliated companies for the
Executive under such plans, practices, policies and programs as in effect at
any time during the 120-day period immediately preceding the Effective Date or
if more favorable to the Executive, those provided generally at any time after
the Effective Date to other peer executives of the Company and its affiliated
companies.

                          (iv)  Welfare Benefit Plans.  During the Employment
Period, the Executive and/or the Executive's family, as the case may be, shall
be eligible for participation in and shall receive all benefits under welfare
benefit plans, practices, policies and programs provided by the Company and its
affiliated companies (including, without limitation, medical, prescription,
dental, disability, salary continuance, employee life, group life, accidental
death and travel accident insurance plans and programs) to the extent
applicable generally to other peer executives of the Company and its affiliated
companies, but in no event shall such plans, practices, policies and programs
provide the Executive with benefits which are less favorable, in the aggregate,
than the most favorable of such plans, practices, policies and programs in
effect for





                                      -5-
<PAGE>   6
the Executive at any time during the 120-day period immediately preceding the
Effective Date or, if more favorable to the Executive, those provided generally
at any time after the Effective Date to other peer executives of the Company
and its affiliated companies.

                          (v)  Expenses.  During the Employment Period, the
Executive shall be entitled to receive prompt reimbursement for all reasonable
expenses incurred by the Executive in accordance with the most favorable
policies, practices and procedures of the Company and its affiliated companies
in effect for the Executive at any time during the 120-day period immediately
preceding the Effective Date or, if more favorable to the Executive, as in
effect generally at any time thereafter with respect to other peer executives
of the Company and its affiliated companies.

                          (vi)  Fringe Benefits.  During the Employment Period,
the Executive shall be entitled to fringe benefits, including, without
limitation, tax and financial planning services, payment of club dues, and, if
applicable, use of an automobile (or an automobile allowance) and payment of
related expenses, in accordance with the most favorable plans, practices,
programs and policies of the Company and its affiliated companies in effect for
the Executive at any time during the 120-day period immediately preceding the
Effective Date or, if more favorable to the Executive, as in effect generally
at any time thereafter with respect to other peer executives of the Company and
its affiliated companies.

                          (vii)  Office and Support Staff.  During the
Employment Period, the Executive shall be entitled to an office or offices of a
size and with furnishings and other appointments, and to exclusive personal
secretarial and other assistance, at least equal to the most favorable of the
foregoing provided to the Executive by the Company and its affiliated companies
at any time during the 120-day period immediately preceding the Effective Date
or, if more favorable to the Executive, as provided generally at any time
thereafter with respect to other peer executives of the Company and its
affiliated companies.

                          (viii)  Vacation.  During the Employment Period, the
Executive shall be entitled to paid vacation in accordance with the most
favorable plans, policies, programs and practices of the Company and its
affiliated companies as in effect for the Executive at any time





                                      -6-
<PAGE>   7
during the 120-day period immediately preceding the Effective Date or, if more
favorable to the Executive, as in effect generally at any time thereafter with
respect to other peer executives of the Company and its affiliated companies.

                 5.  Termination of Employment.  (a)  Death or Disability.  The
Executive's employment shall terminate automatically upon the Executive's death
during the Employment Period.  If the Company determines in good faith that the
Disability of the Executive has occurred during the Employment Period (pursuant
to the definition of Disability set forth below), it may give to the Executive
written notice in accordance with Section 12(b) of this Agreement of its
intention to terminate the Executive's employment.  In such event, the
Executive's employment with the Company shall terminate effective on the 30th
day after receipt of such notice by the Executive (the "Disability Effective
Date"), provided that, within the 30 days after such receipt, the Executive
shall not have returned to full-time performance of the Executive's duties.
For purposes of this Agreement, "Disability" shall mean the absence of the
Executive from the Executive's duties with the Company on a full-time basis for
180 consecutive business days as a result of incapacity due to mental or
physical illness which is determined to be total and permanent by a physician
selected by the Company or its insurers  and acceptable to the Executive or the
Executive's legal representative.

                 (b)  Cause.  The Company may terminate the Executive's
employment during the Employment Period for Cause.  For purposes of this
Agreement, "Cause" shall mean:

                                  (i)      the willful and continued failure of
         the Executive to perform substantially the Executive's duties with the
         Company or one of its affiliates (other than any such failure
         resulting from incapacity due to physical or mental illness), after a
         written demand for substantial performance is delivered to the
         Executive by the Board or the Chief Executive Officer of the Company
         which specifically identifies the manner in which the Board or Chief
         Executive Officer believes that the Executive has not substantially
         performed the Executive's duties, or

                                  (ii)     the willful engaging by the
         Executive in illegal conduct or gross misconduct which is materially
         and demonstrably injurious to the Company.

For purposes of this provision, no act or failure to act, on the part of the
Executive, shall be considered "willful" unless it is done, or omitted to be
done, by the Executive in bad faith or





                                      -7-
<PAGE>   8
without reasonable belief that the Executive's action or omission was in the
best interests of the Company.  Any act, or failure to act, based upon
authority given pursuant to a resolution duly adopted by the Board or upon the
instructions of the Chief Executive Officer or a senior officer of the Company
or based upon the advice of counsel for the Company shall be conclusively
presumed to be done, or omitted to be done, by the Executive in good faith and
in the best interests of the Company.  The cessation of employment of the
Executive shall not be deemed to be for Cause unless and until there shall have
been delivered to the Executive a copy of a resolution duly adopted by the
affirmative vote of not less than three-quarters of the entire membership of
the Board at a meeting of the Board called and held for such purpose (after
reasonable notice is provided to the Executive and the Executive is given an
opportunity, together with counsel, to be heard before the Board), finding
that, in the good faith opinion of the Board, the Executive is guilty of the
conduct described in subparagraph (i) or (ii) above, and specifying the
particulars thereof in detail.

                 (c)  Good Reason.  The Executive's employment may be
terminated by the Executive for Good Reason.  For purposes of this Agreement,
"Good Reason" shall mean:

                                  (i)      the assignment to the Executive of
         any duties inconsistent in any respect with the Executive's position
         (including status, offices, titles and reporting requirements),
         authority, duties or responsibilities as contemplated by Section 4(a)
         of this Agreement, or any other action by the Company which results in
         a diminution in such position, authority, duties or responsibilities,
         excluding for this purpose an isolated, insubstantial and inadvertent
         action not taken in bad faith and which is remedied by the Company
         promptly after receipt of notice thereof given by the Executive;

                                  (ii)     any failure by the Company to comply
         with any of the provisions of Section 4(b) of this Agreement, other
         than an isolated, insubstantial and inadvertent failure not occurring
         in bad faith and which is remedied by the Company promptly after
         receipt of notice thereof given by the Executive;

                                  (iii)    the Company's requiring the
         Executive to be based at any office or location other than as provided
         in Section 4(a)(i)(B) hereof or the Company's requiring the Executive
         to travel on Company business to a substantially greater extent than
         required immediately prior to the Effective Date;

                                  (iv)     any purported termination by the
         Company of the Executive's employment otherwise than as expressly
         permitted by this Agreement; or





                                      -8-
<PAGE>   9
                                  (v)      any failure by the Company to comply
         with and satisfy Section 11(c) of this Agreement.

For purposes of this Section 5(c), any good faith determination of "Good
Reason" made by the Executive shall be conclusive.  Anything in this Agreement
to the contrary notwithstanding, a termination by the Executive for any reason
during the 30-day period immediately following the first anniversary of the
Effective Date shall be deemed to be a termination for Good Reason for all
purposes of this Agreement.

                 (d)  Notice of Termination.  Any termination by the Company
for Cause, or by the Executive for Good Reason, shall be communicated by Notice
of Termination to the other party hereto given in accordance with Section 12(b)
of this Agreement.  Such Notice of Termination for Cause shall be given within
90 days following the Company's "actual" knowledge of any event constituting
Cause, and such Notice of Termination for Good Reason shall be given within 180
days following the Executive's "actual" knowledge of an event constituting Good
Reason.  For purposes of this Agreement, a "Notice of Termination" means a
written notice which (i) indicates the specific termination provision in this
Agreement relied upon, (ii) to the extent applicable, sets forth in reasonable
detail the facts and circumstances claimed to provide a basis for termination
of the Executive's employment under the provision so indicated and (iii) if the
Date of Termination (as defined below) is other than the date of receipt of
such notice, specifies the termination date (which date shall be not more than
thirty days after the giving of such notice).  The failure by the Executive or
the Company to set forth in the Notice of Termination any fact or circumstance
which contributes to a showing of Good Reason or Cause shall not waive any
right of the Executive or the Company, respectively, hereunder or preclude the
Executive or the Company, respectively, from asserting such fact or
circumstance in enforcing the Executive's or the Company's rights hereunder.

                 (e)  Date of Termination.  "Date of Termination" means (i) if
the Executive's employment is terminated by the Company for Cause, or by the
Executive for Good Reason, the date of receipt of the Notice of Termination or
any later date specified therein, as the case may be, (ii) if the Executive's
employment is terminated by the Company other than for Cause or Disability, the
date on which the Company notifies the Executive of such termination and (iii)
if





                                      -9-
<PAGE>   10
the Executive's employment is terminated by reason of death or Disability, the
date of death of the Executive or the Disability Effective Date, as the case
may be.

                 6.  Obligations of the Company upon Termination.  (a) Good
Reason; Other Than for Cause, Death or Disability.  If, during the Employment
Period, the Company shall terminate the Executive's employment other than for
Cause or Disability or the Executive shall terminate employment for Good
Reason:

                   (i)            the Company shall pay to the Executive in a
         lump sum in cash within 30 days after the Date of Termination the
         aggregate of the following amounts:

                                  A.  the sum of (1) the Executive's Annual
                 Base Salary through the Date of Termination to the extent not
                 theretofore paid, (2) the product of (x) the greater of (a)
                 the 1997 Target Bonus and (b) the Executive's highest target
                 annual bonus for any fiscal year that begins both subsequent
                 to 1997 and within 3 years prior to the Date of Termination
                 (such greater amount, the "Highest Target Bonus") and (y) a
                 fraction, the numerator of which is the number of days in the
                 current fiscal year through the Date of Termination, and the
                 denominator of which is 365 and (3) any compensation
                 previously deferred by the Executive (together with any
                 accrued interest or earnings thereon) and any accrued vacation
                 pay, in each case to the extent not theretofore paid (the sum
                 of the amounts described in clauses (1), (2), and (3) shall be
                 hereinafter referred to as the "Accrued Obligations"); and

                                  B.  the amount equal to the product of (1) 3
                 and (2) the sum of (x) the Executive's Annual Base Salary and
                 (y) the Highest Target Bonus; and

                                  C.  an amount equal to the difference between
                 (a) the aggregate benefit under the Company's qualified
                 defined benefit retirement plans (collectively, the
                 "Retirement Plan") and any excess or supplemental defined
                 benefit retirement plans in which the Executive participates
                 (collectively, the "SERP") which the Executive would have
                 accrued (whether or not vested) if the Executive's employment
                 had continued for 3 years after the Date of Termination (based
                 on the assumption that the Executive's compensation in each of
                 the 3 years following such termination would have been that
                 required by Section 4(b)(i) and Section 4(b)(ii)) and (b) the
                 actual vested benefit, if any, of the Executive under the
                 Retirement Plan and the SERP, determined as of the Date of
                 Termination (with the foregoing amounts to be computed on an
                 actuarial present value basis using actuarial assumptions no
                 less favorable to the Executive than the most favorable of
                 those in effect for purposes of computing benefit entitlements
                 under the Retirement Plan and the SERP at any time from the
                 day before the Effective Date) through the Date of
                 Termination;





                                      -10-
<PAGE>   11
                   (ii)           for 3 years after the Executive's Date of
         Termination, or such longer period as may be provided by the terms of
         the appropriate plan, program, practice or policy, the Company shall
         continue benefits to the Executive and/or the Executive's family at
         least equal to those which would have been provided to them in
         accordance with the plans, programs, practices and policies described
         in Section 4(b)(iv) of this Agreement if the Executive's employment
         had not been terminated or, if more favorable to the Executive, as in
         effect generally at any time thereafter with respect to other peer
         executives of the Company and its affiliated companies and their
         families, provided, however, that if the Executive becomes reemployed
         with another employer and is eligible to receive medical or other
         welfare benefits under another employer-provided plan, the medical and
         other welfare benefits described herein shall be secondary to those
         provided under such other plan during such applicable period of
         eligibility, and for purposes of determining eligibility (but not the
         time of commencement of benefits) of the Executive for retiree
         benefits pursuant to such plans, practices, programs and policies, the
         Executive shall be considered to have remained employed until 3 years
         after the Date of Termination and to have retired on the last day of
         such period;

                   (iii)          the Company shall, at its sole expense as
         incurred, provide the Executive with outplacement services the scope
         and provider of which shall be selected by the Executive in the
         Executive's sole discretion; provided, however, that the Company shall
         not be obligated to provide such services for a period of more than
         one year after the Date of Termination or at an aggregate cost in
         excess of $20,000; and

                   (iv)           to the extent not theretofore paid or
         provided, the Company shall timely pay or provide to the Executive any
         other amounts or benefits required to be paid or provided or which the
         Executive is eligible to receive under any plan, program, policy or
         practice or contract or agreement of the Company and its affiliated
         companies (such other amounts and benefits shall be hereinafter
         referred to as the "Other Benefits").

                 (b)  Death.  If the Executive's employment is terminated by
reason of the Executive's death during the Employment Period, this Agreement
shall terminate without further obligations to the Executive's legal
representatives under this Agreement, other than for payment of Accrued
Obligations and the timely payment or provision of Other Benefits.  Accrued
Obligations shall be paid to the Executive's estate or beneficiary, as
applicable, in a lump sum in cash within 30 days after the Date of Termination.
With respect to the provision of Other Benefits, the term Other Benefits as
utilized in this Section 6(b) shall include, without limitation, and the
Executive's estate and/or beneficiaries shall be entitled to receive, benefits
at least equal to the most favorable benefits provided by the Company and
affiliated companies to the estates and beneficiaries of peer executives of the
Company and such affiliated companies under such plans, programs, practices and
policies relating to death benefits, if any, as in effect with respect





                                      -11-
<PAGE>   12
to other peer executives and their beneficiaries at any time during the 120-day
period immediately preceding the Effective Date or, if more favorable to the
Executive's estate and/or the Executive's beneficiaries, as in effect on the
date of the Executive's death with respect to other peer executives of the
Company and its affiliated companies and their beneficiaries.

                 (c)  Disability.  If the Executive's employment is terminated
by reason of the Executive's Disability during the Employment Period, this
Agreement shall terminate without further obligations to the Executive, other
than for payment of Accrued Obligations and the timely payment or provision of
Other Benefits.  Accrued Obligations shall be paid to the Executive in a lump
sum in cash within 30 days after the Date of Termination.  With respect to the
provision of Other Benefits, the term Other Benefits as utilized in this
Section 6(c) shall include, and the Executive shall be entitled after the
Disability Effective Date to receive, disability and other benefits at least
equal to the most favorable of those generally provided by the Company and its
affiliated companies to disabled executives and/or their families in accordance
with such plans, programs, practices and policies relating to disability, if
any, as in effect generally with respect to other peer executives and their
families at any time during the 120-day period immediately preceding the
Effective Date or, if more favorable to the Executive and/or the Executive's
family, as in effect at any time thereafter generally with respect to other
peer executives of the Company and its affiliated companies and their families.

                 (d)  Cause; Other than for Good Reason.  If the Executive's
employment shall be terminated for Cause during the Employment Period, this
Agreement shall terminate without further obligations to the Executive other
than the obligation to pay to the Executive (x) the Annual Base Salary through
the Date of Termination, (y) the amount of any compensation previously deferred
by the Executive, and (z) Other Benefits, in each case to the extent
theretofore unpaid.  If the Executive voluntarily terminates employment during
the Employment Period, excluding a termination for Good Reason, this Agreement
shall terminate without further obligations to the Executive, other than for
Accrued Obligations and the timely payment or provision of Other Benefits.  In
such case, all Accrued Obligations shall be paid to the Executive in a lump sum
in cash within 30 days of the Date of Termination.





                                      -12-
<PAGE>   13
                 7.  Non-exclusivity of Rights.  Nothing in this Agreement
shall prevent or limit the Executive's continuing or future participation in
any plan, program, policy or practice provided by the Company or any of its
affiliated companies and for which the Executive may qualify, nor, subject to
Section 12(f), shall anything herein limit or otherwise affect such rights as
the Executive may have under any contract or agreement with the Company or any
of its affiliated companies.  Amounts which are vested benefits or which the
Executive is otherwise entitled to receive under any plan, policy, practice or
program of or any contract or agreement with the Company or any of its
affiliated companies at or subsequent to the Date of Termination shall be
payable in accordance with such plan, policy, practice or program or contract
or agreement except as explicitly modified by this Agreement.

                 8.  Full Settlement; Legal Fees.  The Company's obligation to
make the payments provided for in this Agreement and otherwise to perform its
obligations hereunder shall not be affected by any set-off, counterclaim,
recoupment, defense or other claim, right or action which the Company may have
against the Executive or others.  In no event shall the Executive be obligated
to seek other employment or take any other action by way of mitigation of the
amounts payable to the Executive under any of the provisions of this Agreement
and except as specifically provided in Section 6(a)(ii), such amounts shall not
be reduced whether or not the Executive obtains other employment.  The Company
agrees to pay as incurred, to the full extent permitted by law, all legal fees
and expenses which the Executive may reasonably incur as a result of any
contest (regardless of the outcome thereof) by the Company, the Executive or
others of the validity or enforceability of, or liability or entitlement under,
any provision of this Agreement or any guarantee of performance thereof
(whether such contest is between the Company and the Executive or between
either of them and any third party, and including as a result of any contest by
the Executive about the amount of any payment pursuant to this Agreement), plus
in each case interest on any delayed payment at 120% of the applicable Federal
rate (that applies to the time period of the delay) provided for in Section
7872(f)(2)(A) of the Internal Revenue Code of 1986, as amended (the "Code"),
compounded annually.





                                      -13-
<PAGE>   14
                 9.  Certain Additional Payments by the Company.

                 (a)  Anything in this Agreement to the contrary
notwithstanding, in the event it shall be determined that any payment, award,
benefit or distribution by the Company (or any of its affiliated entities) or
by any entity which effectuates a Change of Control (or any of its affiliated
entities) to or for the benefit of the Executive (whether pursuant to the terms
of this Agreement or otherwise, but determined without regard to any additional
payments required under this Section 9) (a "Payment") would be subject to the
excise tax imposed by Section 4999 of the Code or any corresponding provisions
of state or local tax laws, or any interest or penalties are incurred by the
Executive with respect to such excise tax (such excise tax, together with any
such interest and penalties, are hereinafter collectively referred to as the
"Excise Tax"), then the Executive shall be entitled to receive an additional
payment (a "Gross-Up Payment") in an amount such that after payment by the
Executive of all taxes (including any interest or penalties imposed with
respect to such taxes), including, without limitation, any income taxes (and
any interest and penalties imposed with respect thereto) and Excise Tax imposed
upon the Gross-Up Payment, the Executive retains an amount of the Gross-Up
Payment equal to the Excise Tax imposed upon the Payments.  The payment of a
Gross-Up Payment under this Section 9(a) shall not be conditioned upon the
Executive's termination of employment.

                 (b)  Subject to the provisions of Section 9(c), all
determinations required to be made under this Section 9, including whether and
when a Gross-Up Payment is required and the amount of such Gross-Up Payment and
the assumptions to be utilized in arriving at such determination, shall be made
by Price Waterhouse LLP or such other certified public accounting firm as may
be designated by the Executive (the "Accounting Firm"), which shall provide
detailed supporting calculations both to the Company and the Executive within
15 business days of the receipt of notice from the Executive that there has
been a Payment, or such earlier time as is requested by the Company.  In the
event that the Accounting Firm is serving as accountant or auditor for the
individual, entity or group effecting the Change of Control, the Executive
shall appoint another nationally recognized accounting firm to make the
determinations required hereunder (which accounting firm shall then be referred
to as the Accounting Firm hereunder).





                                      -14-
<PAGE>   15
All fees and expenses of the Accounting Firm shall be borne solely by the
Company.  Any Gross-Up Payment, as determined pursuant to this Section 9, shall
be paid by the Company to the Executive within 5 days after the receipt of the
Accounting Firm's determination.  Any determination by the Accounting Firm
shall be binding upon the Company and the Executive.  As a result of the
uncertainty in the application of Section 4999 of the Code at the time of the
initial determination by the Accounting Firm hereunder, it is possible that
Gross-Up Payments which will not have been made by the Company should have been
made ("Underpayment"), consistent with the calculations required to be made
hereunder.  In the event that the Company exhausts its remedies pursuant to
Section 9(c) and the Executive thereafter is required to make a payment of any
Excise Tax, the Accounting Firm shall determine the amount of the Underpayment
that has occurred and any such Underpayment shall be promptly paid by the
Company to or for the benefit of the Executive.

                 (c)  The Executive shall notify the Company in writing of any
claim by the Internal Revenue Service that, if successful, would require the
payment by the Company of the Gross-Up Payment.  Such notification shall be
given as soon as practicable but no later than ten business days after the
Executive is informed in writing of such claim and shall apprise the Company of
the nature of such claim and the date on which such claim is requested to be
paid.  The Executive shall not pay such claim prior to the expiration of the
30-day period following the date on which the Executive gives such notice to
the Company (or such shorter period ending on the date that any payment of
taxes with respect to such claim is due).  If the Company notifies the
Executive in writing prior to the expiration of such period that it desires to
contest such claim, the Executive shall:

                                  (i)      give the Company any information
         reasonably requested by the Company relating to such claim,

                                  (ii)     take such action in connection with
         contesting such claim as the Company shall reasonably request in
         writing from time to time, including, without limitation, accepting
         legal representation with respect to such claim by an attorney
         reasonably selected by the Company,

                                  (iii)    cooperate with the Company in good
         faith in order effectively to contest such claim, and





                                      -15-
<PAGE>   16
                                 (iv)     permit the Company to participate in
         any proceedings relating to such claim;

provided, however, that the Company shall bear and pay directly all costs and
expenses (including additional interest and penalties) incurred in connection
with such contest and shall indemnify and hold the Executive harmless, on an
after-tax basis, for any Excise Tax or income tax (including interest and
penalties with respect thereto) imposed as a result of such representation and
payment of costs and expenses.  Without limitation on the foregoing provisions
of this Section 9(c), the Company shall control all proceedings taken in
connection with such contest and, at its sole option, may pursue or forgo any
and all administrative appeals,  proceedings, hearings and conferences with the
taxing authority in respect of such claim and may, at its sole option, either
direct the Executive to pay the tax claimed and sue for a refund or contest the
claim in any permissible manner, and the Executive agrees to prosecute such
contest to a determination before any administrative tribunal, in a court of
initial jurisdiction and in one or more appellate courts, as the Company shall
determine; provided, however, that if the Company directs the Executive to pay
such claim and sue for a refund, the Company shall advance the amount of such
payment to the Executive, on an interest-free basis and shall indemnify and
hold the Executive harmless, on an after-tax basis, from any Excise Tax or
income tax (including interest or penalties with respect thereto) imposed with
respect to such advance or with respect to any imputed income with respect to
such advance; and further provided that any extension of the statute of
limitations relating to payment of taxes for the taxable year of the Executive
with respect to which such contested amount is claimed to be due is limited
solely to such contested amount.  Furthermore, the Company's control of the
contest shall be limited to issues with respect to which a Gross-Up Payment
would be payable hereunder and the Executive shall be entitled to settle or
contest, as the case may be, any other issue raised by the Internal Revenue
Service or any other taxing authority.

                 (d)  If, after the receipt by the Executive of an amount
advanced by the Company pursuant to Section 9(c), the Executive becomes
entitled to receive any refund with respect to such claim, the Executive shall
(subject to the Company's complying with the requirements of Section 9(c))
promptly pay to the Company the amount of such refund (together with any
interest





                                      -16-
<PAGE>   17
paid or credited thereon after deducting an amount sufficient to pay applicable
federal, state and local taxes on such interest at the highest marginal rates
applicable thereto).  If, after the receipt by the Executive of an amount
advanced by the Company pursuant to Section 9(c), a determination is made that
the Executive shall not be entitled to any refund with respect to such claim
and the Company does not notify the Executive in writing of its intent to
contest such denial of refund prior to the expiration of 30 days after such
determination, then such advance shall be forgiven and shall not be required to
be repaid and the amount of such advance shall offset, to the extent thereof,
the amount of Gross-Up Payment required to be paid.

                 10. Confidential Information.  The Executive shall hold in a
fiduciary capacity for the benefit of the Company all secret or confidential
information, knowledge or data relating to the Company or any of its affiliated
companies, and their respective businesses, which shall have been obtained by
the Executive during the Executive's employment by the Company or any of its
affiliated companies and which shall not be or become public knowledge (other
than by acts by the Executive or representatives of the Executive in violation
of this Agreement).  After termination of the Executive's employment with the
Company, the Executive shall not, without the prior written consent of the
Company or as may otherwise be required by law or legal process, communicate or
divulge any such information, knowledge or data to anyone other than the
Company and those designated by it.  In no event shall an asserted violation of
the provisions of this Section 10 constitute a basis for deferring or
withholding any amounts otherwise payable to the Executive under this
Agreement.

                 11.  Successors.  (a)  This Agreement is personal to the
Executive and without the prior written consent of the Company shall not be
assignable by the Executive otherwise than by will or the laws of descent and
distribution.  This Agreement shall inure to the benefit of and be enforceable
by the Executive's legal representatives.

                 (b)  This Agreement shall inure to the benefit of and be
binding upon the Company and its successors and assigns.

                 (c)  The Company will require any successor (whether direct or
indirect, by purchase, merger, consolidation or otherwise) to all or
substantially all of the business and/or





                                      -17-
<PAGE>   18
assets of the Company to assume expressly and agree to perform this Agreement
in the same manner and to the same extent that the Company would be required to
perform it if no such succession had taken place.  As used in this Agreement,
"Company" shall mean the Company as hereinbefore defined and any successor to
its business and/or assets as aforesaid which assumes and agrees to perform
this Agreement by operation of law, or otherwise.

                 12. Miscellaneous.  (a)  This Agreement shall be governed by
and construed in accordance with the laws of the State of Delaware, without
reference to principles of conflict of laws.  The captions of this Agreement
are not part of the provisions hereof and shall have no force or effect.  This
Agreement may not be amended or modified otherwise than by a written agreement
executed by the parties hereto or their respective successors and legal
representatives.

                 (b)  All notices and other communications hereunder shall be
in writing and shall be given by hand delivery to the other party or by
registered or certified mail, return receipt requested, postage prepaid,
addressed as follows:

                 If to the Executive:

                 Patsy Campola
                 1108 N. Rio Vista Blvd.
                 Ft. Lauderdale, Florida  33301-3042

                 If to the Company:

                 John Alden Financial Corporation
                 7300 Corporate Center Drive
                 Miami, FL  33126-1223

                                  Attention:  General Counsel

or to such other address as either party shall have furnished to the other in
writing in accordance herewith.  Notice and communications shall be effective
when actually received by the addressee.





                                      -18-
<PAGE>   19
                 (c)  The invalidity or unenforceability of any provision of
this Agreement shall not affect the validity or enforceability of any other
provision of this Agreement.

                 (d)  The Company may withhold from any amounts payable under
this Agreement such Federal, state, local or foreign taxes as shall be required
to be withheld pursuant to any applicable law or regulation.

                 (e)  The Executive's or the Company's failure to insist upon
strict compliance with any provision hereof or any other provision of this
Agreement or the failure to assert any right the Executive or the Company may
have hereunder, including, without limitation, the right of the Executive to
terminate employment for Good Reason pursuant to Section 5(c)(i)-(v) of this
Agreement, shall not be deemed to be a waiver of such provision or right or any
other provision or right of this Agreement.

                 (f)  The Executive and the Company acknowledge that, except as
may otherwise be provided under any other written agreement between the
Executive and the Company, the employment of the Executive by the Company is
"at will" and, prior to the Effective Date, the Executive's employment may be
terminated by either the Executive or the Company at any time prior to the
Effective Date, in which case the Executive shall have no further rights under
this Agreement.  From and after the Effective Date this Agreement shall
supersede any other agreement between the parties with respect to the subject
matter hereof, including, without limitation, the right of the Executive to
participate in any severance plan of the Company or otherwise receive severance
benefits from the Company.





                                      -19-
<PAGE>   20
                 IN WITNESS WHEREOF, the Executive has hereunto set the
Executive's hand and, pursuant to the authorization from its Board of
Directors, the Company has caused this Agreement to be executed in its name on
its behalf, all as of the day and year first above written.


                                       JOHN ALDEN FINANCIAL CORPORATION



                                       By:  /s/ SCOTT L. STANTON            
                                           ------------------------------------
                                       
                                       Title:  Senior Vice President and Chief
                                              ---------------------------------
                                               Financial Officer
                                              ---------------------------------

                                        /s/ PATSY CAMPOLA  
                                       ----------------------------------------
                                                         Patsy Campola





                                      -20-

<PAGE>   1
                                                                 EXHIBIT 10.76

                               CHANGE OF CONTROL
                              EMPLOYMENT AGREEMENT

                 AGREEMENT by and between John Alden Financial Corporation, a
Delaware corporation (the "Company") and Gary F. Kadlec (the "Executive"),
dated as of the 5th day of November, 1997.

                 The Board of Directors of the Company (the "Board"), has
determined that it is in the best interests of the Company and its shareholders
to assure that the Company will have the continued dedication of the Executive,
notwithstanding the possibility, threat or occurrence of a Change of Control
(as defined below) of the Company.  The Board believes it is imperative to
diminish the inevitable distraction of the Executive by virtue of the personal
uncertainties and risks created by a pending or threatened Change of Control
and to encourage the Executive's full attention and dedication to the Company
currently and in the event of any threatened or pending Change of Control, and
to provide the Executive with compensation and benefits arrangements upon a
Change of Control which ensure that the compensation and benefits expectations
of the Executive will be satisfied and which are competitive with those of
other corporations.  Therefore, in order to accomplish these objectives, the
Board has caused the Company to enter into this Agreement.

                 NOW, THEREFORE, IT IS HEREBY AGREED AS FOLLOWS:

                 1.       Certain Definitions.  (a)  The "Effective Date" shall
mean the first date during the Change of Control Period (as defined in Section
1(b)) on which a Change of Control (as defined in Section 2) occurs.  Anything
in this Agreement to the contrary notwithstanding, if a Change of Control
occurs and if the Executive's employment with the Company is terminated prior
to the date on which the Change of Control occurs, and if it is reasonably
demonstrated by the Executive that such termination of employment (i) was at
the request of a third party who has taken steps reasonably calculated to
effect a Change of Control or (ii) otherwise arose in connection with or
anticipation of a Change of Control, then for all purposes of this Agreement
the "Effective Date" shall mean the date immediately prior to the date of such
termination of employment.
<PAGE>   2
                 (b)  The "Change of Control Period" shall mean the period
commencing on the date hereof and ending on the third anniversary of the date
hereof; provided, however, that commencing on the date one year after the date
hereof, and on each annual anniversary of such date (such date and each annual
anniversary thereof shall be hereinafter referred to as the "Renewal Date"),
unless previously terminated, the Change of Control Period shall be
automatically extended so as to terminate 3 years from such Renewal Date,
unless at least 60 days prior to the Renewal Date the Company shall give notice
to the Executive that the Change of Control Period shall not be so extended.

                 2.  Change of Control.  For the purpose of this Agreement, a
"Change of Control" shall mean:

                 (a)  The acquisition by any individual, entity or group
         (within the meaning of Section 13(d)(3) or 14(d)(2) of the Securities
         Exchange Act of 1934, as amended (the "Exchange Act")) (a "Person") of
         beneficial ownership (within the meaning of Rule 13d-3 promulgated
         under the Exchange Act) of 20% or more of either (i) the then
         outstanding shares of common stock of the Company (the "Outstanding
         Company Common Stock") or (ii) the combined voting power of the then
         outstanding voting securities of the Company entitled to vote
         generally in the election of directors (the "Outstanding Company
         Voting Securities"); provided, however, that for purposes of this
         subsection (a), the following acquisitions shall not constitute a
         Change of Control:  (i) any acquisition directly from the Company,
         (ii) any acquisition by the Company, (iii) any acquisition by any
         employee benefit plan (or related trust) sponsored or maintained by
         the Company or any corporation controlled by the Company or (iv) any
         acquisition pursuant to a transaction which complies with clauses (i),
         (ii) and (iii) of subsection (c) of this Section 2; or

                 (b)  Individuals who, as of the date hereof, constitute the
         Board (the "Incumbent Board") cease for any reason to constitute at
         least a majority of the Board; provided, however, that any individual
         becoming a director subsequent to the date hereof whose election, or
         nomination for election by the Company's shareholders, was approved by
         a vote of at least a majority of the directors then comprising the
         Incumbent Board shall be considered as though such individual were a
         member of the Incumbent Board, but excluding, for this purpose, any
         such individual whose initial assumption of office occurs as a result
         of an actual or threatened election contest with respect to the
         election or removal of directors or other actual or threatened
         solicitation of proxies or consents by or on behalf of a Person other
         than the Board; or

                 (c)  Consummation by the Company of a reorganization, merger
         or consolidation or sale or other disposition of all or substantially
         all of the assets of the Company or the acquisition of assets of
         another entity (a "Business Combination"), in each case, unless,
<PAGE>   3
         following such Business Combination, (i) all or substantially all of
         the individuals and entities who were the beneficial owners,
         respectively, of the Outstanding Company Common Stock and Outstanding
         Company Voting Securities immediately prior to such Business
         Combination beneficially own, directly or indirectly, more than 60%
         of, respectively, the then outstanding shares of common stock and the
         combined voting power of the then outstanding voting securities
         entitled to vote generally in the election of directors, as the case
         may be, of the corporation resulting from such Business Combination
         (including, without limitation, a corporation which as a result of
         such transaction owns the Company or all or substantially all of the
         Company's assets either directly or through one or more subsidiaries)
         in substantially the same proportions as their ownership, immediately
         prior to such Business Combination of the Outstanding Company Common
         Stock and Outstanding Company Voting Securities, as the case may be,
         (ii) no Person (excluding any employee benefit plan (or related trust)
         of the Company or such corporation resulting from such Business
         Combination) beneficially owns, directly or indirectly, 20% or more
         of, respectively, the then outstanding shares of common stock of the
         corporation resulting from such Business Combination or the combined
         voting power of the then outstanding voting securities of such
         corporation except to the extent that such ownership existed prior to
         the Business Combination and (iii) at least a majority of the members
         of the board of directors of the corporation resulting from such
         Business Combination were members of the Incumbent Board at the time
         of the execution of the initial agreement, or of the action of the
         Board, providing for such Business Combination; or

                 (d)  Approval by the shareholders of the Company of a complete
         liquidation or dissolution of the Company.

                 3.  Employment Period.  The Company hereby agrees to continue
the Executive in its employ, and the Executive hereby agrees to remain in the
employ of the Company subject to the terms and conditions of this Agreement,
for the period  commencing on the Effective Date and ending on the third
anniversary of such date (the "Employment Period").

                 4.  Terms of Employment.  (a)  Position and Duties.  (i)
During the Employment Period, (A) the Executive's position (including status,
offices, titles and reporting requirements), authority, duties and
responsibilities shall be at least commensurate in all material respects with
the most significant of those held, exercised and assigned to the Executive at
any time during the 120-day period immediately preceding the Effective Date and
(B) the Executive's services shall be performed at the location where the
Executive was employed immediately preceding the Effective Date or any office
or location less than 35 miles from such location.





                                      -3-
<PAGE>   4
                                  (ii)  During the Employment Period, and
excluding any periods of vacation and sick leave to which the Executive is
entitled, the Executive agrees to devote reasonable attention and time during
normal business hours to the business and affairs of the Company and, to the
extent necessary to discharge the responsibilities assigned to the Executive
hereunder, to use the Executive's reasonable best efforts to perform faithfully
and efficiently such responsibilities.  During the Employment Period it shall
not be a violation of this Agreement for the Executive to (A) serve on
corporate, civic or charitable boards or committees, (B) deliver lectures,
fulfill speaking engagements or teach at educational institutions and (C)
manage personal investments, so long as such activities do not significantly
interfere with the performance of the Executive's responsibilities as an
employee of the Company in accordance with this Agreement.  It is expressly
understood and agreed that to the extent that any such activities have been
conducted by the Executive prior to the Effective Date, the continued conduct
of such activities (or the conduct of activities similar in nature and scope
thereto) subsequent to the Effective Date shall not thereafter be deemed to
interfere with the performance of the Executive's responsibilities to the
Company.

                 (b) Compensation.  (i)  Base Salary.  During the Employment
Period, the Executive shall receive an annual base salary ("Annual Base
Salary"), which shall be paid at a monthly rate, at least equal to 12 times the
highest monthly base salary paid or payable, including any base salary which
has been earned but deferred, to the Executive by the Company and its
affiliated companies in respect of the twelve-month period immediately
preceding the month in which the Effective Date occurs.  During the Employment
Period, the Annual Base Salary shall be reviewed within 12 months after the
last salary increase awarded to the Executive prior to the Effective Date and
thereafter at least annually.  Any increase in Annual Base Salary shall not
serve to limit or reduce any other obligation to the Executive under this
Agreement.  Annual Base Salary shall not be reduced after any such increase and
the term Annual Base Salary as utilized in this Agreement shall refer to Annual
Base Salary as so increased.  As used in this Agreement, the term "affiliated
companies" shall include any company controlled by, controlling or under common
control with the Company.





                                      -4-
<PAGE>   5
                                  (ii) Annual Bonus.  In addition to Annual
Base Salary, the Executive shall be awarded, for each fiscal year ending during
the Employment Period, an annual bonus (the "Annual Bonus") in cash at least
equal to the Executive's annual bonus under the annual bonus plan for North
Star Marketing for 1996 ("1996 Bonus") or, if higher, the Executive's greatest
annual bonus in any subsequent year prior to the Effective Date.  Each such
Annual Bonus shall be paid no later than the end of the third month of the
fiscal year next following the fiscal year for which the Annual Bonus is
awarded, unless the Executive shall elect to defer the receipt of such Annual
Bonus.

                                  (iii) Incentive, Savings and Retirement
Plans.  During the Employment Period, the Executive shall be entitled to
participate in all incentive, savings and retirement plans, practices, policies
and programs applicable generally to other peer executives of the Company and
its affiliated companies, but in no event shall such plans, practices, policies
and programs provide the Executive with incentive opportunities (measured with
respect to both regular and special incentive opportunities, to the extent, if
any, that such distinction is applicable), savings opportunities and retirement
benefit opportunities, in each case, less favorable, in the aggregate, than the
most favorable of those provided by the Company and its affiliated companies
for the Executive under such plans, practices, policies and programs as in
effect at any time during the 120-day period immediately preceding the
Effective Date or if more favorable to the Executive, those provided generally
at any time after the Effective Date to other peer executives of the Company
and its affiliated companies.

                                  (iv)  Welfare Benefit Plans.  During the
Employment Period, the Executive and/or the Executive's family, as the case may
be, shall be eligible for participation in and shall receive all benefits under
welfare benefit plans, practices, policies and programs provided by the Company
and its affiliated companies (including, without limitation, medical,
prescription, dental, disability, salary continuance, employee life, group
life, accidental death and travel accident insurance plans and programs) to the
extent applicable generally to other peer executives of the Company and its
affiliated companies, but in no event shall such plans, practices, policies and
programs provide the Executive with benefits which are less favorable, in the
aggregate, than the most favorable of such plans, practices, policies and
programs in effect for





                                      -5-
<PAGE>   6
the Executive at any time during the 120-day period immediately preceding the
Effective Date or, if more favorable to the Executive, those provided generally
at any time after the Effective Date to other peer executives of the Company
and its affiliated companies.

                                  (v) Expenses.  During the Employment Period,
the Executive shall be entitled to receive prompt reimbursement for all
reasonable expenses incurred by the Executive in accordance with the most
favorable policies, practices and procedures of the Company and its affiliated
companies in effect for the Executive at any time during the 120-day period
immediately preceding the Effective Date or, if more favorable to the
Executive, as in effect generally at any time thereafter with respect to other
peer executives of the Company and its affiliated companies.

                                  (vi) Fringe Benefits.  During the Employment
Period, the Executive shall be entitled to fringe benefits, including, without
limitation, tax and financial planning services, payment of club dues, and, if
applicable, use of an automobile (or an automobile allowance) and payment of
related expenses, in accordance with the most favorable plans, practices,
programs and policies of the Company and its affiliated companies in effect for
the Executive at any time during the 120-day period immediately preceding the
Effective Date or, if more favorable to the Executive, as in effect generally
at any time thereafter with respect to other peer executives of the Company and
its affiliated companies.

                                  (vii) Office and Support Staff.  During the
Employment Period, the Executive shall be entitled to an office or offices of a
size and with furnishings and other appointments, and to exclusive personal
secretarial and other assistance, at least equal to the most favorable of the
foregoing provided to the Executive by the Company and its affiliated companies
at any time during the 120-day period immediately preceding the Effective Date
or, if more favorable to the Executive, as provided generally at any time
thereafter with respect to other peer executives of the Company and its
affiliated companies.

                                  (viii) Vacation.  During the Employment
Period, the Executive shall be entitled to paid vacation in accordance with the
most favorable plans, policies, programs and practices of the Company and its
affiliated companies as in effect for the Executive at any time





                                      -6-
<PAGE>   7
during the 120-day period immediately preceding the Effective Date or, if more
favorable to the Executive, as in effect generally at any time thereafter with
respect to other peer executives of the Company and its affiliated companies.

                 5.  Termination of Employment.  (a)  Death or Disability.  The
Executive's employment shall terminate automatically upon the Executive's death
during the Employment Period.  If the Company determines in good faith that the
Disability of the Executive has occurred during the Employment Period (pursuant
to the definition of Disability set forth below), it may give to the Executive
written notice in accordance with Section 12(b) of this Agreement of its
intention to terminate the Executive's employment.  In such event, the
Executive's employment with the Company shall terminate effective on the 30th
day after receipt of such notice by the Executive (the "Disability Effective
Date"), provided that, within the 30 days after such receipt, the Executive
shall not have returned to full-time performance of the Executive's duties.
For purposes of this Agreement, "Disability" shall mean the absence of the
Executive from the Executive's duties with the Company on a full-time basis for
180 consecutive business days as a result of incapacity due to mental or
physical illness which is determined to be total and permanent by a physician
selected by the Company or its insurers  and acceptable to the Executive or the
Executive's legal representative.

                 (b)  Cause.  The Company may terminate the Executive's
employment during the Employment Period for Cause.  For purposes of this
Agreement, "Cause" shall mean:

                                  (i)      the willful and continued failure of
         the Executive to perform substantially the Executive's duties with the
         Company or one of its affiliates (other than any such failure
         resulting from incapacity due to physical or mental illness), after a
         written demand for substantial performance is delivered to the
         Executive by the Board or the Chief Executive Officer of the Company
         which specifically identifies the manner in which the Board or Chief
         Executive Officer believes that the Executive has not substantially
         performed the Executive's duties, or

                                  (ii)     the willful engaging by the
         Executive in illegal conduct or gross misconduct which is materially
         and demonstrably injurious to the Company.

For purposes of this provision, no act or failure to act, on the part of the
Executive, shall be considered "willful" unless it is done, or omitted to be
done, by the Executive in bad faith or





                                      -7-
<PAGE>   8
without reasonable belief that the Executive's action or omission was in the
best interests of the Company.  Any act, or failure to act, based upon
authority given pursuant to a resolution duly adopted by the Board or upon the
instructions of the Chief Executive Officer or a senior officer of the Company
or based upon the advice of counsel for the Company shall be conclusively
presumed to be done, or omitted to be done, by the Executive in good faith and
in the best interests of the Company.  The cessation of employment of the
Executive shall not be deemed to be for Cause unless and until there shall have
been delivered to the Executive a copy of a resolution duly adopted by the
affirmative vote of not less than three-quarters of the entire membership of
the Board at a meeting of the Board called and held for such purpose (after
reasonable notice is provided to the Executive and the Executive is given an
opportunity, together with counsel, to be heard before the Board), finding
that, in the good faith opinion of the Board, the Executive is guilty of the
conduct described in subparagraph (i) or (ii) above, and specifying the
particulars thereof in detail.

                 (c)  Good Reason.  The Executive's employment may be
terminated by the Executive for Good Reason.  For purposes of this Agreement,
"Good Reason" shall mean:

                                  (i)  the assignment to the Executive of any
         duties inconsistent in any respect with the Executive's position
         (including status, offices, titles and reporting requirements),
         authority, duties or responsibilities as contemplated by Section 4(a)
         of this Agreement, or any other action by the Company which results in
         a diminution in such position, authority, duties or responsibilities,
         excluding for this purpose an isolated, insubstantial and inadvertent
         action not taken in bad faith and which is remedied by the Company
         promptly after receipt of notice thereof given by the Executive;

                                  (ii)      any failure by the Company to
         comply with any of the provisions of Section 4(b) of this Agreement,
         other than an isolated, insubstantial and inadvertent failure not
         occurring in bad faith and which is remedied by the Company promptly
         after receipt of notice thereof given by the Executive;

                                  (iii)      the Company's requiring the
         Executive to be based at any office or location other than as provided
         in Section 4(a)(i)(B) hereof or the Company's requiring the Executive
         to travel on Company business to a substantially greater extent than
         required immediately prior to the Effective Date;

                                  (iv)      any purported termination by the
         Company of the Executive's employment otherwise than as expressly
         permitted by this Agreement; or


                                      -8-
<PAGE>   9
                                  (v)       any failure by the Company to
         comply with and satisfy Section 11(c) of this Agreement.

For purposes of this Section 5(c), any good faith determination of "Good
Reason" made by the Executive shall be conclusive.  Anything in this Agreement
to the contrary notwithstanding, a termination by the Executive for any reason
during the 30-day period immediately following the first anniversary of the
Effective Date shall be deemed to be a termination for Good Reason for all
purposes of this Agreement.

                 (d)  Notice of Termination.  Any termination by the Company
for Cause, or by the Executive for Good Reason, shall be communicated by Notice
of Termination to the other party hereto given in accordance with Section 12(b)
of this Agreement.  Such Notice of Termination for Cause shall be given within
90 days following the Company's "actual" knowledge of any event constituting
Cause, and such Notice of Termination for Good Reason shall be given within 180
days following the Executive's "actual" knowledge of an event constituting Good
Reason.  For purposes of this Agreement, a "Notice of Termination" means a
written notice which (i) indicates the specific termination provision in this
Agreement relied upon, (ii) to the extent applicable, sets forth in reasonable
detail the facts and circumstances claimed to provide a basis for termination
of the Executive's employment under the provision so indicated and (iii) if the
Date of Termination (as defined below) is other than the date of receipt of
such notice, specifies the termination date (which date shall be not more than
thirty days after the giving of such notice).  The failure by the Executive or
the Company to set forth in the Notice of Termination any fact or circumstance
which contributes to a showing of Good Reason or Cause shall not waive any
right of the Executive or the Company, respectively, hereunder or preclude the
Executive or the Company, respectively, from asserting such fact or
circumstance in enforcing the Executive's or the Company's rights hereunder.

                 (e)  Date of Termination.  "Date of Termination" means (i) if
the Executive's employment is terminated by the Company for Cause, or by the
Executive for Good Reason, the date of receipt of the Notice of Termination or
any later date specified therein, as the case may be, (ii) if the Executive's
employment is terminated by the Company other than for Cause or


                                      -9-
<PAGE>   10
Disability, the date on which the Company notifies the Executive of such
termination and (iii) if the Executive's employment is terminated by reason of
death or Disability, the date of death of the Executive or the Disability
Effective Date, as the case may be.

                 6.  Obligations of the Company upon Termination.  (a) Good
Reason; Other Than for Cause, Death or Disability.  If, during the Employment
Period, the Company shall terminate the Executive's employment other than for
Cause or Disability or the Executive shall terminate employment for Good
Reason:

                     (i)          the Company shall pay to the Executive in a
         lump sum in cash within 30 days after the Date of Termination the
         aggregate of the following amounts:

                                  A.  the sum of (1) the Executive's Annual
                 Base Salary through the Date of Termination to the extent not
                 theretofore paid, (2) the product of (x) the greater of (a)
                 the 1996 Bonus and (b) the Executive's highest annual bonus
                 for any fiscal year that begins both subsequent to 1997 and
                 within 3 years prior to the Date of Termination (such greater
                 amount, the "Highest Bonus") and (y) a fraction, the numerator
                 of which is the number of days in the current fiscal year
                 through the Date of Termination, and the denominator of which
                 is 365 and (3) any compensation previously deferred by the
                 Executive (together with any accrued interest or earnings
                 thereon) and any accrued vacation pay, in each case to the
                 extent not theretofore paid (the sum of the amounts described
                 in clauses (1), (2), and (3) shall be hereinafter referred to
                 as the "Accrued Obligations"); and

                                  B.  the amount equal to the product of (1) 3
                 and (2) the greater of (A) the sum of the Executive's base
                 salary in 1996 and the 1996 Bonus or (B) the Executive's
                 greatest combined annual base salary and annual bonus earned
                 with respect to any fiscal year that ends both subsequent to
                 1996 and within 3 years prior to the Date of Termination; and

                                  C.  an amount equal to the difference between
                 (a) the aggregate benefit under the Company's qualified
                 defined benefit retirement plans (collectively, the
                 "Retirement Plan") and any excess or supplemental defined
                 benefit retirement plans in which the Executive participates
                 (collectively, the "SERP") which the Executive would have
                 accrued (whether or not vested) if the Executive's employment
                 had continued for 3 years after the Date of Termination (based
                 on the assumption that the Executive's compensation in each of
                 the 3 years following such termination would have been that
                 required by Section 4(b)(i) and Section 4(b)(ii)) and (b) the
                 actual vested benefit, if any, of the Executive under the
                 Retirement Plan and the SERP, determined as of the Date of
                 Termination (with the foregoing amounts to be computed on an
                 actuarial present value basis using actuarial assumptions no
                 less favorable to the Executive than the most fa-


                                      -10-
<PAGE>   11
                 vorable of those in effect for purposes of computing benefit
                 entitlements under the Retirement Plan and the SERP at any
                 time from the day before the Effective Date) through the Date
                 of Termination;

                     (ii)         for 3 years after the Executive's Date of
         Termination, or such longer period as may be provided by the terms of
         the appropriate plan, program, practice or policy, the Company shall
         continue benefits to the Executive and/or the Executive's family at
         least equal to those which would have been provided to them in
         accordance with the plans, programs, practices and policies described
         in Section 4(b)(iv) of this Agreement if the Executive's employment
         had not been terminated or, if more favorable to the Executive, as in
         effect generally at any time thereafter with respect to other peer
         executives of the Company and its affiliated companies and their
         families, provided,  however, that if the Executive becomes reemployed
         with another employer and is eligible to receive medical or other
         welfare benefits under another employer-provided plan, the medical and
         other welfare benefits described herein shall be secondary to those
         provided under such other plan during such applicable period of
         eligibility, and for purposes of determining eligibility (but not the
         time of commencement of benefits) of the Executive for retiree
         benefits pursuant to such plans, practices, programs and policies, the
         Executive shall be considered to have remained employed until 3 years
         after the Date of Termination and to have retired on the last day of
         such period;

                     (iii) the Company shall, at its sole expense as incurred,
         provide the Executive with outplacement services the scope and
         provider of which shall be selected by the Executive in the
         Executive's sole discretion; provided, however, that the Company shall
         not be obligated to provide such services for a period of more than
         one year after the Date of Termination or at an aggregate cost in
         excess of $20,000; and

                     (iv)  to the extent not theretofore paid or provided, the
         Company shall timely pay or provide to the Executive any other amounts
         or benefits required to be paid or provided or which the Executive is
         eligible to receive under any plan, program, policy or practice or
         contract or agreement of the Company and its affiliated companies
         (such other amounts and benefits shall be hereinafter referred to as
         the "Other Benefits").

                 (b) Death.  If the Executive's employment is terminated by
reason of the Executive's death during the Employment Period, this Agreement
shall terminate without further obligations to the Executive's legal
representatives under this Agreement, other than for payment of Accrued
Obligations and the timely payment or provision of Other Benefits.  Accrued
Obligations shall be paid to the Executive's estate or beneficiary, as
applicable, in a lump sum in cash within 30 days after the Date of Termination.
With respect to the provision of Other Benefits, the term Other Benefits as
utilized in this Section 6(b) shall include, without limitation, and the
Executive's estate and/or beneficiaries shall be entitled to receive, benefits
at least equal





                                      -11-
<PAGE>   12
to the most favorable benefits provided by the Company and affiliated companies
to the estates and beneficiaries of peer executives of the Company and such
affiliated companies under such plans, programs, practices and policies
relating to death benefits, if any, as in effect with respect to other peer
executives and their beneficiaries at any time during the 120-day period
immediately preceding the Effective Date or, if more favorable to the
Executive's estate and/or the Executive's beneficiaries, as in effect on the
date of the Executive's death with respect to other peer executives of the
Company and its affiliated companies and their beneficiaries.

                 (c) Disability.  If the Executive's employment is terminated
by reason of the Executive's Disability during the Employment Period, this
Agreement shall terminate without further obligations to the Executive, other
than for payment of Accrued Obligations and the timely payment or provision of
Other Benefits.  Accrued Obligations shall be paid to the Executive in a lump
sum in cash within 30 days after the Date of Termination.  With respect to the
provision of Other Benefits, the term Other Benefits as utilized in this
Section 6(c) shall include, and the Executive shall be entitled after the
Disability Effective Date to receive, disability and other benefits at least
equal to the most favorable of those generally provided by the Company and its
affiliated companies to disabled executives and/or their families in accordance
with such plans, programs, practices and policies relating to disability, if
any, as in effect generally with respect to other peer executives and their
families at any time during the 120-day period immediately preceding the
Effective Date or, if more favorable to the Executive and/or the Executive's
family, as in effect at any time thereafter generally with respect to other
peer executives of the Company and its affiliated companies and their families.

                 (d)  Cause; Other than for Good Reason.  If the Executive's
employment shall be terminated for Cause during the Employment Period, this
Agreement shall terminate without further obligations to the Executive other
than the obligation to pay to the Executive (x) the Annual Base Salary through
the Date of Termination, (y) the amount of any compensation previously deferred
by the Executive, and (z) Other Benefits, in each case to the extent
theretofore unpaid.  If the Executive voluntarily terminates employment during
the Employment Period, excluding a termination for Good Reason, this Agreement
shall terminate without further obligations to the Executive, other than for
Accrued Obligations and the timely payment or





                                      -12-
<PAGE>   13
provision of Other Benefits.  In such case, all Accrued Obligations shall be
paid to the Executive in a lump sum in cash within 30 days of the Date of
Termination.

                 7.  Non-exclusivity of Rights.  Nothing in this Agreement
shall prevent or limit the Executive's continuing or future participation in
any plan, program, policy or practice provided by the Company or any of its
affiliated companies and for which the Executive may qualify, nor, subject to
Section 12(f), shall anything herein limit or otherwise affect such rights as
the Executive may have under any contract or agreement with the Company or any
of its affiliated companies.  Amounts which are vested benefits or which the
Executive is otherwise entitled to receive under any plan, policy, practice or
program of or any contract or agreement with the Company or any of its
affiliated companies at or subsequent to the Date of Termination shall be
payable in accordance with such plan, policy, practice or program or contract
or agreement except as explicitly modified by this Agreement.

                 8.  Full Settlement; Legal Fees.  The Company's obligation to
make the payments provided for in this Agreement and otherwise to perform its
obligations hereunder shall not be affected by any set-off, counterclaim,
recoupment, defense or other claim, right or action which the Company may have
against the Executive or others.  In no event shall the Executive be obligated
to seek other employment or take any other action by way of mitigation of the
amounts payable to the Executive under any of the provisions of this Agreement
and except as specifically provided in Section 6(a)(ii), such amounts shall not
be reduced whether or not the Executive obtains other employment.  The Company
agrees to pay as incurred, to the full extent permitted by law, all legal fees
and expenses which the Executive may reasonably incur as a result of any
contest (regardless of the outcome thereof) by the Company, the Executive or
others of the validity or enforceability of, or liability or entitlement under,
any provision of this Agreement or any guarantee of performance thereof
(whether such contest is between the Company and the Executive or between
either of them and any third party, and including as a result of any contest by
the Executive about the amount of any payment pursuant to this Agreement), plus
in each case interest on any delayed payment at 120% of the applicable Federal
rate (that applies to the





                                      -13-
<PAGE>   14
time period of the delay) provided for in Section 7872(f)(2)(A) of the Internal
Revenue Code of 1986, as amended (the "Code"), compounded annually.

                 9.  Certain Additional Payments by the Company.

                 (a)  Anything in this Agreement to the contrary
notwithstanding, in the event it shall be determined that any payment, award,
benefit or distribution by the Company (or any of its affiliated entities) or
by any entity which effectuates a Change of Control (or any of its affiliated
entities) to or for the benefit of the Executive (whether pursuant to the terms
of this Agreement or otherwise, but determined without regard to any additional
payments required under this Section 9) (a "Payment") would be subject to the
excise tax imposed by Section 4999 of the Code or any corresponding provisions
of state or local tax laws, or any interest or penalties are incurred by the
Executive with respect to such excise tax (such excise tax, together with any
such interest and penalties, are hereinafter collectively referred to as the
"Excise Tax"), then the Executive shall be entitled to receive an additional
payment (a "Gross-Up Payment") in an amount such that after payment by the
Executive of all taxes (including any interest or penalties imposed with
respect to such taxes), including, without limitation, any income taxes (and
any interest and penalties imposed with respect thereto) and Excise Tax imposed
upon the Gross-Up Payment, the Executive retains an amount of the Gross-Up
Payment equal to the Excise Tax imposed upon the Payments.  The payment of a
Gross-Up Payment under this Section 9(a) shall not be conditioned upon the
Executive's termination of employment.

                 (b)  Subject to the provisions of Section 9(c), all
determinations required to be made under this Section 9, including whether and
when a Gross-Up Payment is required and the amount of such Gross-Up Payment and
the assumptions to be utilized in arriving at such determination, shall be made
by Price Waterhouse LLP or such other certified public accounting firm as may
be designated by the Executive (the "Accounting Firm"), which shall provide
detailed supporting calculations both to the Company and the Executive within
15 business days of the receipt of notice from the Executive that there has
been a Payment, or such earlier time as is requested by the Company.  In the
event that the Accounting Firm is serving as accountant or auditor for the
individual, entity or group effecting the Change of Control, the Executive
shall





                                      -14-
<PAGE>   15
appoint another nationally recognized accounting firm to make the
determinations required hereunder (which accounting firm shall then be referred
to as the Accounting Firm hereunder).  All fees and expenses of the Accounting
Firm shall be borne solely by the Company.  Any Gross-Up Payment, as determined
pursuant to this Section 9, shall be paid by the Company to the Executive
within 5 days after the receipt of the Accounting Firm's determination.  Any
determination by the Accounting Firm shall be binding upon the Company and the
Executive.  As a result of the uncertainty in the application of Section 4999
of the Code at the time of the initial determination by the Accounting Firm
hereunder, it is possible that Gross-Up Payments which will not have been made
by the Company should have been made ("Underpayment"), consistent with the
calculations required to be made hereunder.  In the event that the Company
exhausts its remedies pursuant to Section 9(c) and the Executive thereafter is
required to make a payment of any Excise Tax, the Accounting Firm shall
determine the amount of the Underpayment that has occurred and any such
Underpayment shall be promptly paid by the Company to or for the benefit of the
Executive.

                 (c)  The Executive shall notify the Company in writing of any
claim by the Internal Revenue Service that, if successful, would require the
payment by the Company of the Gross-Up Payment.  Such notification shall be
given as soon as practicable but no later than ten business days after the
Executive is informed in writing of such claim and shall apprise the Company of
the nature of such claim and the date on which such claim is requested to be
paid.  The Executive shall not pay such claim prior to the expiration of the
30-day period following the date on which the Executive gives such notice to
the Company (or such shorter period ending on the date that any payment of
taxes with respect to such claim is due).  If the Company notifies the
Executive in writing prior to the expiration of such period that it desires to
contest such claim, the Executive shall:

                                  (i)      give the Company any information
         reasonably requested by the Company relating to such claim,

                                  (ii)     take such action in connection with
         contesting such claim as the Company shall reasonably request in
         writing from time to time, including, without limitation, accepting
         legal representation with respect to such claim by an attorney
         reasonably selected by the Company,





                                      -15-
<PAGE>   16
                                  (iii)    cooperate with the Company in good
         faith in order effectively to contest such claim, and

                                  (iv)     permit the Company to participate
         in any proceedings relating to such claim;

provided, however, that the Company shall bear and pay directly all costs and
expenses (including additional interest and penalties) incurred in connection
with such contest and shall indemnify and hold the Executive harmless, on an
after-tax basis, for any Excise Tax or income tax (including interest and
penalties with respect thereto) imposed as a result of such representation and
payment of costs and expenses.  Without limitation on the foregoing provisions
of this Section 9(c), the Company shall control all proceedings taken in
connection with such contest and, at its sole option, may pursue or forgo any
and all administrative appeals,  proceedings, hearings and conferences with the
taxing authority in respect of such claim and may, at its sole option, either
direct the Executive to pay the tax claimed and sue for a refund or contest the
claim in any permissible manner, and the Executive agrees to prosecute such
contest to a determination before any administrative tribunal, in a court of
initial jurisdiction and in one or more appellate courts, as the Company shall
determine; provided, however, that if the Company directs the Executive to pay
such claim and sue for a refund, the Company shall advance the amount of such
payment to the Executive, on an interest-free basis and shall indemnify and
hold the Executive harmless, on an after-tax basis, from any Excise Tax or
income tax (including interest or penalties with respect thereto) imposed with
respect to such advance or with respect to any imputed income with respect to
such advance; and further provided that any extension of the statute of
limitations relating to payment of taxes for the taxable year of the Executive
with respect to which such contested amount is claimed to be due is limited
solely to such contested amount.  Furthermore, the Company's control of the
contest shall be limited to issues with respect to which a Gross-Up Payment
would be payable hereunder and the Executive shall be entitled to settle or
contest, as the case may be, any other issue raised by the Internal Revenue
Service or any other taxing authority.

                 (d)  If, after the receipt by the Executive of an amount
advanced by the Company pursuant to Section 9(c), the Executive becomes
entitled to receive any refund with respect to such claim, the Executive shall
(subject to the Company's complying with the requirements of





                                      -16-
<PAGE>   17
Section 9(c)) promptly pay to the Company the amount of such refund (together
with any interest paid or credited thereon after deducting an amount sufficient
to pay applicable federal, state and local taxes on such interest at the
highest marginal rates applicable thereto).  If, after the receipt by the
Executive of an amount advanced by the Company pursuant to Section 9(c), a
determination is made that the Executive shall not be entitled to any refund
with respect to such claim and the Company does not notify the Executive in
writing of its intent to contest such denial of refund prior to the expiration
of 30 days after such determination, then such advance shall be forgiven and
shall not be required to be repaid and the amount of such advance shall offset,
to the extent thereof, the amount of Gross-Up Payment required to be paid.

                 10. Confidential Information.  The Executive shall hold in a
fiduciary capacity for the benefit of the Company all secret or confidential
information, knowledge or data relating to the Company or any of its affiliated
companies, and their respective businesses, which shall have been obtained by
the Executive during the Executive's employment by the Company or any of its
affiliated companies and which shall not be or become public knowledge (other
than by acts by the Executive or representatives of the Executive in violation
of this Agreement).  After termination of the Executive's employment with the
Company, the Executive shall not, without the prior written consent of the
Company or as may otherwise be required by law or legal process, communicate or
divulge any such information, knowledge or data to anyone other than the
Company and those designated by it.  In no event shall an asserted violation of
the provisions of this Section 10 constitute a basis for deferring or
withholding any amounts otherwise payable to the Executive under this
Agreement.

                 11. Successors.  (a)  This Agreement is personal to the
Executive and without the prior written consent of the Company shall not be
assignable by the Executive otherwise than by will or the laws of descent and
distribution.  This Agreement shall inure to the benefit of and be enforceable
by the Executive's legal representatives.

                 (b)  This Agreement shall inure to the benefit of and be
binding upon the Company and its successors and assigns.



                                      -17-
<PAGE>   18
                 (c)  The Company will require any successor (whether direct or
indirect, by purchase, merger, consolidation or otherwise) to all or
substantially all of the business and/or  assets of the Company to assume
expressly and agree to perform this Agreement in the same manner and to the
same extent that the Company would be required to perform it if no such
succession had taken place.  As used in this Agreement, "Company" shall mean
the Company as hereinbefore defined and any successor to its business and/or
assets as aforesaid which assumes and agrees to perform this Agreement by
operation of law, or otherwise.

                 12.  Miscellaneous.  (a)  This Agreement shall be governed by
and construed in accordance with the laws of the State of Delaware, without
reference to principles of conflict of laws.  The captions of this Agreement
are not part of the provisions hereof and shall have no force or effect.  This
Agreement may not be amended or modified otherwise than by a written agreement
executed by the parties hereto or their respective successors and legal
representatives.

                 (b)  All notices and other communications hereunder shall be
in writing and shall be given by hand delivery to the other party or by
registered or certified mail, return receipt requested, postage prepaid,
addressed as follows:

                 If to the Executive:

                 Gary F. Kadlec
                 8566 Finlarig Drive
                 Dublin, Ohio  43017

                 If to the Company:

                 John Alden Financial Corporation
                 7300 Corporate Center Drive
                 Miami, FL  33126-1223

                                  Attention:  General Counsel


                                      -18-
<PAGE>   19
or to such other address as either party shall have furnished to the other in
writing in accordance herewith.  Notice and communications shall be effective
when actually received by the addressee.

                 (c)  The invalidity or unenforceability of any provision of
this Agreement shall not affect the validity or enforceability of any other
provision of this Agreement.

                 (d)  The Company may withhold from any amounts payable under
this Agreement such Federal, state, local or foreign taxes as shall be required
to be withheld pursuant to any applicable law or regulation.

                 (e)  The Executive's or the Company's failure to insist upon
strict compliance with any provision hereof or any other provision of this
Agreement or the failure to assert any right the Executive or the Company may
have hereunder, including, without limitation, the right of the Executive to
terminate employment for Good Reason pursuant to Section 5(c)(i)-(v) of this
Agreement, shall not be deemed to be a waiver of such provision or right or any
other provision or right of this Agreement.

                 (f)  The Executive and the Company acknowledge that, except as
may otherwise be provided under any other written agreement between the
Executive and the Company, the employment of the Executive by the Company is
"at will" and, prior to the Effective Date, the Executive's employment may be
terminated by either the Executive or the Company at any time prior to the
Effective Date, in which case the Executive shall have no further rights under
this Agreement.  From and after the Effective Date this Agreement shall
supersede any other agreement between the parties with respect to the subject
matter hereof, including, without limitation, the right of the Executive to
participate in any severance plan of the Company or otherwise receive severance
benefits from the Company.


                                      -19-
<PAGE>   20
                 IN WITNESS WHEREOF, the Executive has hereunto set the
Executive's hand and, pursuant to the authorization from its Board of
Directors, the Company has caused this Agreement to be executed in its name on
its behalf, all as of the day and year first above written.


                            JOHN ALDEN FINANCIAL CORPORATION

                            By: /s/ SCOTT L. STANTON
                               ---------------------------------------------
                            Title: Senior Vice President and Chief Financial
                                  ------------------------------------------
                                   Officer
                                  ------------------------------------------
                                   /s/ GARY F. KADLEC
                                  ------------------------------------------
                                                Gary F. Kadlec


                                      -20-

<TABLE> <S> <C>

<ARTICLE> 7
       
<S>                             <C>
<PERIOD-TYPE>                   9-MOS
<FISCAL-YEAR-END>                          DEC-31-1997
<PERIOD-END>                               SEP-30-1997
<DEBT-HELD-FOR-SALE>                           553,567
<DEBT-CARRYING-VALUE>                           45,341
<DEBT-MARKET-VALUE>                             46,825
<EQUITIES>                                          19
<MORTGAGE>                                     156,313
<REAL-ESTATE>                                   47,224
<TOTAL-INVEST>                                 834,740
<CASH>                                         287,627
<RECOVER-REINSURE>                             167,176
<DEFERRED-ACQUISITION>                          35,388
<TOTAL-ASSETS>                               1,554,048
<POLICY-LOSSES>                                432,005
<UNEARNED-PREMIUMS>                             26,291
<POLICY-OTHER>                                 304,329
<POLICY-HOLDER-FUNDS>                                0
<NOTES-PAYABLE>                                 76,500
                          184,771
                                     15,623
<COMMON>                                             0
<OTHER-SE>                                     298,075
<TOTAL-LIABILITY-AND-EQUITY>                 1,554,048
                                     719,251
<INVESTMENT-INCOME>                             50,348
<INVESTMENT-GAINS>                               5,142
<OTHER-INCOME>                                  57,442
<BENEFITS>                                     539,689
<UNDERWRITING-AMORTIZATION>                     11,580
<UNDERWRITING-OTHER>                             3,187
<INCOME-PRETAX>                                 44,946
<INCOME-TAX>                                    16,824
<INCOME-CONTINUING>                             27,053
<DISCONTINUED>                                   5,693
<EXTRAORDINARY>                                      0
<CHANGES>                                            0
<NET-INCOME>                                    32,746
<EPS-PRIMARY>                                     1.23
<EPS-DILUTED>                                     1.23
<RESERVE-OPEN>                                       0
<PROVISION-CURRENT>                                  0
<PROVISION-PRIOR>                                    0
<PAYMENTS-CURRENT>                                   0
<PAYMENTS-PRIOR>                                     0
<RESERVE-CLOSE>                                      0
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