<PAGE>


                                                                   EXHIBIT 10.26

                    SUPPLEMENTAL INDIVIDUAL RETIREMENT PLAN

                                       OF

                      UNITED STATES FIRE INSURANCE COMPANY

                          (EFFECTIVE AUGUST 13, 1998)


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                               TABLE OF CONTENTS

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<Caption>
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INTRODUCTION................................................    1

ARTICLE 1.  DEFINITIONS.....................................    1
     1.01   "Account".......................................    1
     1.02   "Code"..........................................    1
     1.03   "Committee".....................................    1
     1.04   "Company".......................................    1
     1.05   "Company Account"...............................    1
     1.06   "Company Contributions".........................    1
     1.07   "Compensation"..................................    1
     1.08   "Deferral Account"..............................    2
     1.09   "Effective Date"................................    2
     1.10   "Eligible Employee".............................    2
     1.11   "ERISA".........................................    2
     1.12   "IRP"...........................................    2
     1.13   "Member"........................................    2
     1.14   "Plan", "Supplemental IRP" or "SIRP"............    2
     1.15   "Salary Deferrals"..............................    2
     1.16   "Salary Reduction Agreement"....................    2
     1.17   "Statutory Limitations".........................    2
     1.18   "USFIC".........................................    2

ARTICLE 2.  PARTICIPATION...................................    2
     2.01   Eligibility.....................................    2
     2.02   Participation...................................    2

ARTICLE 3.  CONTRIBUTIONS...................................    3
     3.01   Amount of Salary Deferral Contributions.........    3
     3.02   Matching Contributions..........................    4
     3.03   Basic Contributions.............................    4
     3.04   Investment of Accounts..........................    5
     3.05   Vesting of Accounts.............................    5
     3.06   Individual Accounts.............................    5

ARTICLE 4.  PAYMENT OF CONTRIBUTIONS........................    5
     4.01   Payment of Deferral Accounts....................    5
     4.02   Payment of Company Accounts.....................    5
     4.03   Method of Payment...............................    6
     4.04   Designation of Beneficiary......................    6
     4.05   Special Payment Rule............................    6
</Table>

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<Table>
<Caption>
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ARTICLE 5.  GENERAL PROVISIONS..............................    6
     5.01   Funding.........................................    6
     5.02   No Contract of Employment.......................    7
     5.03   Facility of Payment.............................    7
     5.04   Withholding Taxes...............................    7
     5.05   Nonalienation...................................    7
     5.06   Claim and Review Procedure......................    7
     5.07   Construction....................................    7

ARTICLE 6.  AMENDMENT OR TERMINATION........................    8
     6.01   Reservation of Rights...........................    8
     6.02   Termination of Affiliate's Participation........    8

EXECUTION...................................................    8
</Table>

                                        ii
<PAGE>

                   SUPPLEMENTAL INDIVIDUAL RETIREMENT PLAN OF
                      UNITED STATES FIRE INSURANCE COMPANY

                          (Effective August 13, 1998)

INTRODUCTION

     This Supplemental Individual Retirement Plan of United States Fire
Insurance Company (the "Plan", "Supplemental IRP" or "SIRP") has been adopted by
the Board of Directors of United States Fire Insurance Company ("USFIC") to be
effective on and after August 13, 1998. The purposes of this Plan are:

     (i)   to carry forward, and to reflect the obligations of the appropriate
           Company under this Plan with respect to, the liabilities accrued
           under the Supplemental Individual Retirement Plan of Talegen
           Holdings, Inc. (the "Talegen SIRP") for the benefit of certain
           Eligible Employees under this Plan; and

     (ii)   to provide a means for making salary deferral and company
            contributions for the benefit of those Eligible Employees under this
            Plan who are participants in the Individual Retirement Plan of
            United States Fire Insurance Company and with respect to whom salary
            deferral and company contributions under the IRP are or will be
            limited by application of the limitations imposed on qualified plans
            by Sections 401(k)(3), 402(g), 401(a)(17), 401(m)(2), 414(s) and 415
            of the Internal Revenue Code of 1986, as amended.

     This Plan is intended to constitute a nonqualified and unfunded deferred
compensation plan for a select group of management or highly compensated
employees which is exempt from certain provisions of the Employee Retirement
Income Security Act of 1974, as amended ("ERISA"), pursuant to Section 401(a)(1)
and parallel provisions of ERISA. All benefits payable under the Plan shall be
paid out of the general assets of the Companies. USFIC may establish and
transfer assets to a grantor trust in order to aid it in providing benefits due
under the Plan.

ARTICLE 1.  DEFINITIONS

1.01   "ACCOUNT" shall mean the Company Account and the Deferral Account.

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

1.03   "COMMITTEE" shall mean the committee composed of at least three
       individuals who shall be appointed by the Chief Executive Officer of
       USFIC or his or her designee (the "CEO") to serve at the pleasure of the
       CEO. Responsibility to administer the Plan, the exclusive discretionary
       power to interpret its provisions, and the responsibility for carrying
       out its provisions are vested in the Committee.

1.04    "COMPANY" shall mean USFIC or any affiliate of USFIC which has adopted
        this Plan with the approval of USFIC. With respect to any particular
        Eligible Employee, any reference to the Company shall mean or refer to
        the Company that is or was his or her employer at the relevant time.

1.05   "COMPANY ACCOUNT" shall mean (i) the liability accrued on the books of
       the Company in respect of the Company Account maintained under the
       Talegen SIRP for the benefit of an Eligible Employee under this Plan,
       which shall become an obligation of the employing Company with respect to
       such Eligible Employee under this Plan (in lieu of its former obligation
       under the Talegen SIRP) as of the Effective Date, (ii) all amounts
       credited to the Member under Sections 3.02 and 3.03, and (iii) the net
       earnings or losses credited on those amounts pursuant to Section 3.04.

1.06   "COMPANY CONTRIBUTIONS" shall mean the amount of contributions credited
       to a Member under Sections 3.02 and 3.03.

1.07   "COMPENSATION" shall mean the base pay which would be payable to a Member
       for services rendered to the Company on and after the Effective Date,
       determined prior to any reduction pursuant to a Member's election to make
       salary reduction contributions under the IRP (or under a cafeteria plan
       pursuant to Section 125 of the Code) or to make Salary Deferrals under
       this Plan.

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1.08   "DEFERRAL ACCOUNT" shall mean (i) the liability accrued on the books of
       the Company in respect of the Deferral Account maintained under the
       Talegen SIRP for the benefit of an Eligible Employee under this Plan,
       which shall become an obligation of the employing Company with respect to
       such Eligible Employee under this Plan (in lieu of its former obligation
       under the Talegen SIRP) as of the Effective Date, (ii) all Salary
       Deferral amounts credited to the Member under Section 3.01, and (iii) the
       net earnings or losses credited on those amounts pursuant to Section
       3.04.

1.09   "EFFECTIVE DATE" shall mean August 13, 1998.

1.10   "ELIGIBLE EMPLOYEE" shall mean an employee of a Company who (i) is part
       of a "select group of management or highly compensated employees" (within
       the meaning of Section 401(a)(1) of ERISA) and (ii) has been designated
       (by name or classification) in writing by USFIC as eligible to
       participate in this Plan.

1.11   "ERISA" shall mean the Employee Retirement Income Security Act of 1974,
       as amended from time to time.

1.12   "IRP" shall mean The Individual Retirement Plan of United States Fire
       Insurance Company, as adopted effective as of August 13, 1998, and
       amended and in effect thereafter.

1.13   "MEMBER" shall mean each Eligible Employee who has made the election
       described in Section 2.02(a), who has been designated (by name or
       classification) in writing by USFIC as eligible to have certain Company
       Contributions credited on his or her behalf as described in Section
       2.02(c), or for whom a liability accrued on the books of his or her
       employing Company in respect of the Company and/or Deferral Account(s)
       maintained under the Talegen SIRP have become an obligation of such
       Company under this Plan and are credited to the employee's Company and/or
       Deferral Account(s) under this Plan.

1.14   "PLAN", "SUPPLEMENTAL IRP" OR "SIRP" shall mean this Supplemental
       Individual Retirement Plan of United States Fire Insurance Company, as
       set forth in this document or as amended from time to time.

1.15   "SALARY DEFERRALS" shall mean the amount of contributions credited to a
       Member with respect to Compensation reductions, respectively, under
       Section 3.01.

1.16   "SALARY REDUCTION AGREEMENT" shall mean the agreement entered into by the
       Member pursuant to Section 2.02 under which he or she elects to defer a
       portion of his or her Compensation under this Plan.

1.17   "STATUTORY LIMITATIONS" shall mean the limitations set forth in Sections
       401(k)(3), 402(g), 401(a)(17), 401(m)(2), 414(s) and 415 of the Code.

1.18   "USFIC" means United States Fire Insurance Company, or any successor by
       merger, purchase or otherwise, with respect to its employees.

ARTICLE 2.  PARTICIPATION

2.01   ELIGIBILITY

     USFIC (in its sole discretion) shall designate (by name or classification)
     in writing from time to time those employees who shall be Eligible
     Employees and eligible to participate in this Plan under Section 2.02(a)
     and those employees who shall become Members of the Plan under Section
     2.02(c). Employees shall be notified of their eligibility for participation
     in the Plan as soon as practicable after USFIC has made its designation
     and, for purposes of authorizing Salary Deferrals under Section 3.01, in
     any event within 30 days after his or her employing Company adopts the Plan
     or (thereafter) prior to the first day of the calendar year for which the
     employee is designated an Eligible Employee.

2.02   PARTICIPATION

      (a)   At least 30 days prior to the first day of the calendar year during
            which an Eligible Employee desires to have contributions credited on
            his or her behalf pursuant to Section 3.01, an Eligible Employee
            must execute a Salary Reduction Agreement authorizing Salary
            Deferrals under this Plan for such

                                        2
<PAGE>

          year in accordance with the provisions of Section 3.01. A Salary
          Reduction Agreement may be made by an Eligible Employee, if it is to
          be effective during the calendar year in which the Plan is adopted by
          his or her employing Company, by executing a Salary Reduction
          Agreement within 30 days after the adoption date.

          (i)   Any Salary Reduction Agreement (1) shall apply to Compensation
                earned by the Eligible Employee in the payroll periods beginning
                after the Agreement is received by the Committee, (2) shall be
                irrevocable until the end of the calendar year to which it
                applies, and (3) shall continue in effect for future years,
                unless until it is changed by filing a new Salary Reduction
                Agreement (or written revocation of the existing Agreement) with
                the Committee before January 1 of the calendar year to which the
                change is to apply.

          (ii)   Notwithstanding the foregoing, if a salary reduction agreement
                 was in effect under the Talegen SIRP immediately before the
                 Effective Date for an employee who becomes a Member of this
                 Plan as of that Date, that agreement shall apply to
                 Compensation earned by the Member on and after that Date, and
                 shall be treated as a Salary Reduction Agreement made in
                 accordance with the foregoing requirements of this paragraph
                 (a); provided, however, that if the Member executes a new
                 Salary Reduction Agreement and submits it to the Committee
                 before September 14, 1998, such new Agreement shall supersede
                 his or her prior agreement effective as of the date such new
                 Agreement is received by the Committee.

      (b)   Notwithstanding paragraph (a) above, an Eligible Employee may, in
            the event of a severe financial hardship, request a suspension of
            his or her Salary Deferrals under the Plan. The request shall be
            made in a time and manner determined by the Committee, and shall be
            effective as of such date as the Committee prescribes. The Eligible
            Employee may apply to the Committee to resume his or her Salary
            Deferrals with respect to payroll periods beginning on or after any
            January 1 following the date of suspension, in a time and manner
            determined by the Committee; provided, however, that the Committee
            shall approve such resumption only if the Committee determines that
            the Eligible Employee is no longer incurring such hardship.

      (c)   Irrespective of whether an Eligible Employee has made the election
            described in paragraph (a) above, he or she shall be a Member if -

          (i)   he or she has been designated (by name or classification) in
                writing by USFIC (in its sole discretion) to have Company
                Contributions credited on his or her behalf pursuant to Section
                3.02 and 3.03, or

          (ii)   a liability accrued on the books of his or her employing
                 Company in respect of the Company and/or Deferral Account(s)
                 maintained under the Talegen SIRP has become an obligation of
                 such Company under this Plan and are credited to his or her
                 Company and/or Deferral Account(s) under this Plan.

      (d)   As a condition of participation, a Member may also be required by
            the Committee to provide such other information as the Committee may
            deem necessary to properly administer the Plan.

ARTICLE 3.  CONTRIBUTIONS

3.01   AMOUNT OF SALARY DEFERRAL CONTRIBUTIONS

     The amount of contributions to be recorded on the books of a Company on
     behalf of a Member pursuant to this Section 3.01 shall be equal to the
     Salary Deferrals as determined in this Section 3.01. For each payroll
     period beginning on or after the effective date of an Eligible Employee's
     Salary Reduction Agreement, his or her Account shall be credited with
     amounts of Salary Deferrals, if applicable.

                                        3
<PAGE>

     The amount of Salary Deferrals shall be equal to the designated percentage
     of Compensation payments elected by the Member in his or her Salary
     Reduction Agreement, provided that such amount shall be equal to the result
     of (a) minus (b), as follows:

      (a)   the maximum Salary Deferral Contributions for that payroll period
            permitted under the IRP for the calendar year in which the payroll
            period occurs, calculated by using Compensation (as defined in
            Section 1.07), by treating 12% as the maximum Salary Deferral
            Contribution percentage rate permissible under the IRP, and by
            disregarding any reduction in the amount of such Contributions which
            would be required under the IRP due to the application of the
            Statutory Limitations or ineligibility of the Member to participate
            in the IRP; minus

      (b)   the maximum amount of Salary Deferral Contributions for that payroll
            period actually permitted under the IRP for such payroll period due
            to the application of the Statutory Limitations or ineligibility of
            the Member to participate in the IRP.

     Salary Deferrals shall be made under this Section 3.01 commencing at such
     time as the Member has contributed the maximum amount of Salary Deferral
     Contributions under the IRP permitted by the Statutory Limitations for the
     calendar year in which the payroll period occurs. No Salary Deferrals may
     be made under this Plan prior to the Effective Date.

3.02   MATCHING CONTRIBUTIONS

      (a)   As of the last day of each calendar year ending after the Effective
            Date, the amount of Matching Contributions to be credited to a
            Member's Company Account under this Section 3.02 shall be equal to
            the result of (i) minus (ii), as follows:

          (i)   the amount of the Matching Contributions that would have been
                made on behalf of the Member under the IRP for such year,
                determined on the basis of the amount of Salary Deferral
                Contributions under the IRP, the amount of Salary Deferrals
                pursuant to Section 3.01 and Compensation (as defined in Section
                1.08) and disregarding any reduction in Matching Contributions
                required under the IRP due to the application of the Statutory
                Limitations or ineligibility of the Member to participate in the
                IRP; minus

          (ii)   the amount of Matching Contributions that were actually made on
                 behalf of the Member by his or her employing Company under the
                 IRP for such year.

         Each Company may (in its sole discretion) credit Matching Contributions
         to Members' Company Accounts at intervals during the calendar year.
         This paragraph (a) shall be applied with respect to the calendar year
         1998 as if this Plan and the IRP were in effect for the entire year and
         operated prior to the Effective Date in the same manner as did the
         corresponding Talegen plans during that period.

      (b)   Notwithstanding paragraph (a) above, each Company may (in its sole
            discretion) credit on behalf of a Member or Members, for any
            particular calendar year ending after the Effective Date, any amount
            of Matching Contributions under this Section 3.02 in an amount to be
            determined by the Company, irrespective of the lack of Salary
            Deferrals pursuant to Section 3.01. Such additional Matching
            Contributions may be made in a manner intended to take into account
            the Member's inability to make Salary Deferral Contributions under
            the IRP during his or her first 12 months of employment or such
            other basis as the Company may (in its sole discretion) deems
            appropriate.

3.03   BASIC CONTRIBUTIONS

      (a)   As of the last day of each calendar year ending after the Effective
            Date, a Member, including any Member who terminated in such calendar
            year by reasons of Retirement, death or Disability (as

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<PAGE>

          defined in the IRP), shall have an amount credited to his or her
          Company Account under this Section 3.03 equal to the result of (i)
          minus (ii), as follows:

          (i)   the amount of the Basic Contributions that would have been made
                on behalf of the Member under the IRP for such year based on
                Compensation (as defined in Section 1.07) and disregarding any
                Statutory Limitations; minus

          (ii)   the amount of Basic Contributions that were actually made by
                 the Company on behalf of the Member's Account under the IRP for
                 such year.

         This paragraph (a) shall be applied with respect to the calendar year
         1998 as if this Plan and the IRP were in effect for the entire year and
         operated prior to the Effective Date in the same manner as did the
         corresponding Talegen plans during that period.

      (b)   Notwithstanding the foregoing, the Company may (in its sole
            discretion) credit on behalf of a Member or Members, for any
            particular calendar year ending after the Effective Date, any amount
            of Basic Contributions under this Section 3.03 in an amount to be
            determined by the Company on a case by case basis.

3.04   INVESTMENT OF ACCOUNTS

     A Member's Accounts shall be credited at least annually with net earnings
     or losses at an appropriate rate, which the Company (in its sole
     discretion) shall determine.

3.05   VESTING OF ACCOUNTS

     The Member shall be fully vested in the balance credited to his or her
     Salary Deferrals (as adjusted to reflect net earnings or losses thereon)
     made on his or her behalf under Section 3.01. The Member shall vest in the
     balance credited to the subaccount within his or her Company Account that
     corresponds to the type of Company Contributions made on his or her behalf
     under Sections 3.02 and 3.03 (as adjusted to reflect net earnings or losses
     thereon) at the same rate at which such type of Company Contributions would
     have vested under the IRP if had they been contributed thereunder. All
     subaccounts within a Member's Company Account shall become fully vested in
     the event of his or her death prior to termination of employment. In the
     event that the Member terminates employment prior to becoming fully vested
     in any subaccount within his or her Company Account, the nonvested portion
     of such subaccount shall be forfeited and shall not be restored in the
     event the Member is subsequently reemployed by any Company.

3.06   INDIVIDUAL ACCOUNTS

     The Committee shall maintain, or cause to be maintained, records showing
     the individual balances of each Member's Accounts. At least once a year,
     each Member shall be furnished with a statement setting forth the value of
     his or her Accounts.

ARTICLE 4.  PAYMENT OF CONTRIBUTIONS

4.01   PAYMENT OF DEFERRAL ACCOUNTS

     A Member shall be entitled to receive payment of the balance credited to
     his or her Deferral Account (as adjusted to reflect net earnings or losses
     thereon) upon the occurrence of the Member's termination of employment for
     any reason.

4.02   PAYMENT OF COMPANY ACCOUNTS

     A Member shall be entitled to receive payment of the balance credited to
     each subaccount within his or her Company Account (as adjusted to reflect
     net earnings or losses thereon), but only to the extent that such
     subaccount has vested (as determined under Section 3.05), upon the
     occurrence of the Member's termination of employment for any reason.

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4.03   METHOD OF PAYMENT

     Payment of the balances credited to a Member's Deferral Account and the
     subaccounts within his or her Company Account (to the extent vested) shall
     be made in a single lump sum payment as soon as practicable after
     termination of employment. Notwithstanding the foregoing, a Member may
     elect, in lieu of receiving an immediate lump sum payment, to receive his
     or her vested Account balances in another form acceptable to the Committee
     or in a year after his or her termination of employment. Either such
     election must be made no later than the end of the calendar year which is
     at least two calendar years prior to termination of employment. If a Member
     dies before payment of the entire balance credited to any of his or her
     Accounts, an amount equal to the unpaid portion thereof, to the extent
     vested as of the date of his or her death, shall be payable in one lump sum
     to his or her Beneficiary.

4.04   DESIGNATION OF BENEFICIARY

     Each Member shall file with the Committee a written designation of one or
     more persons as the "Beneficiary" who shall be entitled to receive the
     amount, if any, payable under the Plan upon his or her death pursuant to
     Section 4.03 and this Section 4.04. A Member may, from time to time revoke
     or change his or her Beneficiary designation without the consent of any
     prior Beneficiary by filing a new designation with the Committee. The last
     such designation received by the Committee shall be controlling; provided,
     however, that no Beneficiary designation, or change or revocation thereof,
     shall be effective unless received by the Committee prior to the Member's
     death, and in no event shall it be effective as of a date prior to such
     receipt. If no such Beneficiary designation is in effect at the time of the
     Member's death, or if no designated Beneficiary survives the Member, the
     Member's estate shall be deemed to have been designated as his or her
     Beneficiary and shall receive the payment of the amount, if any, payable
     under the Plan upon his or her death.

4.05   SPECIAL PAYMENT RULE

     In the event that (i) any liability accrued on the books of a Member's
     employing Company in respect of the Company and/or Deferral Account(s)
     maintained under the Talegen SIRP have become an obligation of such Company
     under this Plan and are credited to the Member's Company and/or Deferral
     Account(s) under this Plan, and (ii) the Member terminates employment
     before the effective date of his or her employing Company's adoption of
     this Plan, then the method and procedures for payment of each such amount
     shall be made under the terms and conditions of the Talegen SIRP or prior
     transferor plan.

ARTICLE 5.  GENERAL PROVISIONS

5.01   FUNDING

      (a)   All amounts payable in accordance with this Plan with respect to a
            Member shall constitute a general unsecured obligation of his or her
            employing Company. Such amounts, as well as any administrative costs
            relating to the Plan, shall be paid out of the general assets of the
            relevant Company, to the extent not paid by a grantor trust
            established pursuant to paragraph (b) below.

      (b)   USFIC may, for administrative reasons, establish a grantor trust for
            the benefit of Members participating in the Plan. The assets of any
            such trust shall be held separate and apart from other funds of the
            Companies, and shall be used exclusively for the purposes set forth
            in the Plan and the applicable trust agreement, subject to the
            following conditions:

          (i)   the creation of such trust shall not cause the Plan to be other
                than "unfunded" for purposes of Title I of ERISA;

          (ii)   each Company shall be treated as a "grantor" of such trust for
                 purposes of Section 677 of the Code; and

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<PAGE>

          (iii)  the trust agreement shall provide that its assets may be used
                 to satisfy claims of a Company's general creditors in the event
                 of its insolvency and the rights of such general creditors are
                 enforceable by them under federal and state law.

5.02   NO CONTRACT OF EMPLOYMENT

     Neither the establishment nor the continuance of the Plan shall be
     construed as conferring any legal rights upon any person for a continuation
     of employment, nor shall it interfere with the rights of any Company to
     discharge any employee and to treat him or her without regard to the effect
     which such treatment might have upon him or her as a Member of the Plan.

5.03   FACILITY OF PAYMENT

     In the event that the Committee shall find that a Member is unable to may
     direct that any benefit payment due him or her, unless a claim shall have
     been made therefor by a duly appointed legal representative, be paid to his
     or her spouse, a child, a parent or other blood relative, or to a person
     with whom he or she resides, and any such payment so made shall be a
     complete discharge of the liabilities of the Plan therefor.

5.04   WITHHOLDING TAXES

     Each Company shall have the right to deduct any required withholding taxes
     from any payment to be made under the Plan, the balances credited to any
     Member's Accounts under the Plan, and/or any Compensation payment made
     during the period of a Member's participation in the Plan.

5.05   NONALIENATION

     Subject to any applicable law, no benefit under the Plan shall be subject
     in any manner to anticipation, alienation, sale, transfer, assignment,
     pledge, encumbrance or charge, and any attempt so to do shall be void, nor
     shall any such benefit be in any manner liable for or subject to
     garnishment, attachment, execution or levy, or liable for or subject to the
     debts, contracts, liabilities, engagements or torts of the Member.

5.06   CLAIM AND REVIEW PROCEDURE

     The Committee shall publish a claims and appeal procedure satisfying the
     minimum standards of Section 503 of ERISA, pursuant to which Members or
     other interested parties may claim benefits under this Plan and appeal
     denials of such claims.

5.07   CONSTRUCTION

      (a)   The Plan is intended to constitute an unfunded deferred compensation
            arrangement for a select group of management or highly compensated
            employees and all rights hereunder shall be governed by and
            construed in accordance with the laws of the State of New Jersey,
            except to the extent that such laws are preempted by ERISA.

      (b)   Except as otherwise provided by law, any action to enforce a right
            or obligation hereunder shall be brought in a court of competent
            jurisdiction in Morristown, New Jersey.

                                        7
<PAGE>

ARTICLE 6.  AMENDMENT OR TERMINATION

6.01   RESERVATION OF RIGHTS

     USFIC reserves the right to modify or to amend, in whole or in part, or to
     terminate this Plan at any time. However, no modification, amendment or
     termination of the Plan shall adversely affect the right of any Member to
     receive the benefits granted under the Plan by USFIC or his or her
     employing Company in respect to such Member as of the date of modification,
     amendment or termination.

6.02   TERMINATION OF AFFILIATE'S PARTICIPATION

     The participation in the Plan of any affiliate of USFIC may be terminated
     upon appropriate action by it or by USFIC. In that event, (a) no Member who
     is employed by the terminated affiliate (or any of its subsidiaries) (a
     "Frozen Member") shall accrue any additional benefits under the Plan after
     the effective date of the termination of the affiliate's participation (the
     "Withdrawal Date"), and (b) the terminated affiliate (rather than USFIC or
     any of its other affiliates) shall remain liable for the payment of any and
     all obligations with respect to the benefits and account balances of all
     Frozen Members under the terms of the Plan as in effect as of the
     Withdrawal Date, unless (and only to such extent, if any, as) the Board of
     Directors of USFIC determines that such liabilities shall be assumed by
     USFIC.

EXECUTION

     Witness the execution of this Supplemental Individual Retirement Plan of
United States Fire Insurance Company, by duly authorized officers of United
States Fire Insurance Company, on the date indicated below.

<Table>
<S>                                            <C>  <C>
                                               UNITED STATES FIRE INSURANCE COMPANY

                                               By:  /s/  FRANCIS W. RODE
                                                    ------------------------------------------
                                                    Title: Vice President
                                                    Date: August 13, 1998

                                               By:  /s/  VALERIE GASPARIK
                                                    ------------------------------------------
                                                    Title: Secretary
                                                    Date: August 13, 1998
</Table>

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