Document:

<PAGE>
                                                                    EXHIBIT 10.1

                   AMENDED AND RESTATED SHAREHOLDERS AGREEMENT

                                   dated as of

                               December [__], 2003

                                      among

                           UNITED NATIONAL GROUP, LTD.

                                       and

                             THE SHAREHOLDERS LISTED
                             ON THE SIGNATURE PAGES
<PAGE>
                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                            PAGE

<S>                                                                         <C>
ARTICLE I  DEFINITIONS.....................................................    1

  Section 1.1  Certain Definitions.........................................    1
  Section 1.2  Other Definitions...........................................    4
  Section 1.3  Interpretation..............................................    5

ARTICLE II  REPRESENTATIONS AND WARRANTIES.................................    5

  Section 2.1  Representations and Warranties of the Company...............    5
  Section 2.2  Representations and Warranties of Holdings..................    6
  Section 2.3  Representations and Warranties of the Trusts................    6
  Section 2.4  Representations and Warranties of the Co-investment Funds...    7

ARTICLE III  BOARD COMPOSITION.............................................    7

  Section 3.1 Composition of the Board.....................................    7

ARTICLE IV  RESTRICTIONS ON TRANSFERS OF SHARES............................    8

  Section 4.1  General Limitations on Transfers............................    8
  Section 4.2  Compliance with Securities Laws.............................    9
  Section 4.3  Permitted Transfers.........................................   10
  Section 4.4  Tag-Along Rights............................................   10
  Section 4.5  Drag-Along Right............................................   12
  Section 4.6  Additional Provisions Relating to Restrictions on Transfers.   14
  Section 4.7  Transfers Pursuant to Rule 144..............................   15

ARTICLE V  REGISTRATION RIGHTS.............................................   15

  Section 5.1  Piggyback Registrations.....................................   15
  Section 5.2  Registration Procedures.....................................   17
  Section 5.3  Indemnification.............................................   20
  Section 5.4  Rule 144 Reporting..........................................   23
  Section 5.5  Lock-Up Agreement...........................................   24

ARTICLE VI  COVENANTS......................................................   24

  Section 6.1  No Voting or Conflicting Agreements.........................   24
  Section 6.2  Further Assurances..........................................   24
  Section 6.3  Certain Transactions........................................   24
  Section 6.4  Confidentiality.............................................   25

ARTICLE VII  EFFECTIVENESS; TERMINATION....................................   25

  Section 7.1 Effectiveness; Term..........................................   25

ARTICLE VIII  MISCELLANEOUS................................................   25

  Section 8.1  Notices.....................................................   25
  Section 8.2  Amendment; Waivers..........................................   27
  Section 8.3  Successors and Assigns......................................   27
  Section 8.4  Recapitalizations and Exchanges Affecting Shares............   27
</TABLE>

                                      -i-
<PAGE>
<TABLE>
<CAPTION>
                                                                            PAGE

<S>                                                                         <C>

  Section 8.5  Governing Law...............................................   27
  Section 8.6  Jurisdiction................................................   28
  Section 8.7  WAIVER OF JURY TRIAL........................................   28
  Section 8.8  Counterparts; Third Party Beneficiaries.....................   28
  Section 8.9  Entire Agreement............................................   28
  Section 8.10 Captions ...................................................   28
  SECTION 8.11 SPECIFIC PERFORMANCE .......................................   28
  Section 8.12 Severability ...............................................   28
  Section 8.13 Trustees ...................................................   29
  Section 8.14 Uncertificated Shares ......................................   29
</TABLE>
<PAGE>
      AMENDED AND RESTATED SHAREHOLDERS AGREEMENT, dated as of December [__],
2003, by and among UNITED NATIONAL GROUP, LTD., an exempted company formed with
limited liability under the laws of the Cayman Islands (the "Company"), U.N.
HOLDINGS (CAYMAN), LTD. ("Holdings"), an exempted company formed with limited
liability under the laws of the Cayman Islands, those co-investment funds listed
on the signature pages of this Agreement (the "Co-investment Funds," and
together with Holdings, the "FPC Shareholders") and those trusts listed on the
signature pages of this Agreement (the "Trusts," and together with the FPC
Shareholders, the "Shareholders").

                              W I T N E S S E T H:

      WHEREAS, Holdings, the Company, U.N. Holdings II, Inc., a Delaware
corporation ("U.S. Purchaser"), U.N. Holdings, LLC, a Delaware limited liability
company, U.N. Holdings Inc., a Delaware corporation ("U.N. Holdings"), Wind
River Investment Corporation, a Delaware corporation ("Wind River"), and the
Trusts entered into an Amended and Restated Investment Agreement, dated of as
September 5, 2003 (the "Investment Agreement"), the transactions contemplated by
which (the "Transactions") were completed on September 5, 2003;

      WHEREAS, in connection with the Transactions, Holdings, the Trusts and the
Company entered into a Shareholders Agreement, dated as of September 5, 2003
(the "Original Agreement");

      WHEREAS, on September 11, 2003, Holdings and the Trusts sold a portion of
their Shares to the Co-investment Funds (the "Co-investment");

      WHEREAS, in connection with the Co-investment and immediately prior to the
completion of the proposed initial offering by the Company of Class A Common
Shares (the "IPO"), Holdings, the Trusts and the Company desire to amend and
restate the Original Agreement in its entirety and desire that the Co-investment
Funds shall become parties to this Agreement; and

      WHEREAS, the Company, the FPC Shareholders and the Trusts desire to
establish in this Agreement certain terms and conditions concerning the
relationship among the Company, the FPC Shareholders and the Trusts and the
investment of the FPC Shareholders and the Trusts in the Company.

      NOW, THEREFORE, the parties agree as follows:

                                    ARTICLE I

                                   DEFINITIONS

      Section 1.1 Certain Definitions. As used in this Agreement, the following
terms shall have the meanings ascribed to them below:
<PAGE>
      "Affiliate" means, with respect to any Person, any other Person directly
or indirectly controlling, controlled by or under common control with such
Person.

      "Agreement" means this Amended and Restated Shareholders Agreement.

      "Claims" means losses, claims, damages, expenses, judgments or
liabilities, joint or several, actions or proceedings (whether commenced or
threatened).

      "Class A Common Shares" means the Class A Common Shares, par value $0.0001
per share, of the Company.

      "Class B Common Shares" means the Class B Common Shares, par value $0.0001
per share, of the Company.

      "Common Shares" means the Class A Common Shares and the Class B Common
Shares.

      "Competitor" means any Person that competes in a significant way with a
substantial business of the Company or any of its subsidiaries or a Person that
has a substantial investment in any such competing Person; provided, that an
institutional investor and its Affiliates shall not be considered Persons who
are Competitors by virtue of holding as a passive portfolio investment nonvoting
debt or less than 5% of the publicly traded equity securities of any such
Competitor. For purposes of this provision, the good faith determination of the
Board that a proposed Transferee is a Competitor, made within 30 days of written
notice to the Board of the proposed Transfer, shall in all respects be
conclusive.

      "Exchange Act" means the United States Securities Exchange Act of 1934, as
amended, or any successor United States federal statute thereto, and the rules
and regulations of the SEC promulgated thereunder.

      "FPC" means Fox Paine & Company, LLC, a Delaware limited liability
company.

      "NASD" means the National Association of Securities Dealers, Inc.

      "Nasdaq" means The Nasdaq Stock Market, Inc.

      "Person" means an individual, corporation, partnership, limited liability
company, association, trust or other entity or organization, including any
governmental authority.

      "Preferred Shares" means the Series A Preferred Shares, par value $0.0001
per share, of the Company, the terms of which are attached as Exhibit 4 to the
Investment Agreement.

                                      -2-
<PAGE>
      "Registrable Securities" means Common Shares, and any common shares or
other securities issued in respect of Shares or into which Shares shall be
converted in connection with share splits, reverse share splits, share dividends
or distributions, combinations or similar recapitalizations, or a merger,
consolidation or reorganization or otherwise; provided, however, as to any
particular Common Shares, such Common Shares shall cease to be Registrable
Securities when (a) a registration statement with respect to the sale of such
Common Shares shall have become effective under the Securities Act and such
Common Shares shall have been disposed of in accordance with such registration
statement, (b) such Common Shares shall have been sold pursuant to Rule 144, (c)
such Common Shares shall have been otherwise transferred and new certificates
for such Common Shares not bearing a legend restricting further transfer shall
have been delivered by the Company, or (d) such Common Shares shall have ceased
to be outstanding.

      "Registration Expenses" means any and all expenses incident to performance
of or compliance with Article V, including (a) all SEC and stock exchange or the
NASD registration and filing fees, (b) all fees and expenses of complying with
United States federal and state securities laws and applicable foreign
securities laws (including reasonable fees and disbursements of counsel for the
underwriters in connection with United States "blue sky" qualifications of the
Registrable Securities), (c) all printing, messenger and delivery expenses, (d)
the fees and disbursements of counsel for the Company and of the Company's
independent public accountants, including the expenses of any special audits
and/or "cold comfort" letters required by or incident to such performance and
compliance, (e) the reasonable fees and disbursements of one counsel retained by
the Shareholders (such counsel to be chosen by the Shareholders by vote of a
plurality of the Registrable Securities of such Shareholders being registered)
as a group in connection with each such registration, (f) any fees and
disbursements of underwriters customarily paid by issuers or sellers of
securities and the reasonable fees and expenses of any special experts retained
in connection with the requested registration, including any fee payable to a
qualified independent underwriter within the meaning of the rules of the NASD,
(g) internal expenses of the Company (including all salaries and expenses of its
officers and employees performing legal or accounting duties) and (h) securities
acts liability insurance (if the Company elects to obtain such insurance) but,
in all cases, excluding underwriting discounts and commissions and transfer
taxes, if any.

      "Rule 144" means Rule 144 under the Securities Act.

      "SEC" means the United States Securities and Exchange Commission.

      "Securities Act" means the United States Securities Act of 1933, as
amended, or any successor United States federal statute thereto, and the rules
and regulations of the SEC promulgated thereunder.

      "Senior Notes" means the Senior Notes issued by Wind River to the Trusts
in the Transactions.

                                      -3-
<PAGE>
      "Shares" means the Common Shares and the Preferred Shares.

      "Transfer" means any sale, assignment, mortgage, pledge (other than
pledges to the Company and its Affiliates), encumbrance, redemption or other
transfer, directly or indirectly, whether or not for consideration.

      "Transferee" means any Person to whom a Transfer is made, regardless of
the method of Transfer.

      "Transferor" means any Person by whom a Transfer is made, regardless of
the method of Transfer.

      "U.N. Holdings Common Stock" means the common stock, par value $0.01, of
U.N. Holdings.

      "Wind River Common Stock" means the common stock, par value $1.00, of Wind
River.

      Section 1.2 Other Definitions. Each of the following terms is defined in
the Section set forth opposite such term:
<TABLE>
<CAPTION>
      TERM                                          SECTION
<S>                                              <C>
      Action                                          8.6
      Board                                           3.1
      Board Composition                               3.1
      Book Entry Shares                               8.14
      Co-investment                                 Recitals
      Co-investment Funds                           Preamble
      Company                                       Preamble
      Debt Securities                                 6.2
      Drag-Along Right                               4.5.1
      Drag-Along Sale                                4.5.1
      Drag-Along Seller                              4.5.2
      FPC Affiliate Transferee                      4.3.1(a)
      FPC Seller                                     4.4.1
      FPC Shareholders                              Preamble
      FPC Shareholder Nominees                       3.1(a)
      Holdings                                      Preamble
      Investment Agreement                          Recitals
      IPO                                           Recitals
      Maximum Sale Number                            5.1.3
      Joinder Agreement                              4.1.3
      Offer Shares                                   4.4.1
      Offeree Shareholder                            4.4.2
</TABLE>

                                      -4-
<PAGE>
<TABLE>
<S>                                              <C>
      Original Agreement                            Recitals
      Piggyback Notice                               5.1.1
      Piggyback Registration                         5.1.1
      Proposed Transferee                            4.4.1
      Sale Notice                                    4.4.1
      Shareholders                                  Preamble
      Tag-Along Right                               4.4.3(a)
      Tag-Along Seller                              4.4.3(b)
      Tag-Along Shares                               4.4.2
      Transactions                                  Recitals
      Trust Affiliate Transferee                    4.3.2(a)
      Trusts                                        Preamble
      Trusts' Nominee                                3.1(a)
      U.N. Holdings                                 Recitals
      U.S. Purchaser                                Recitals
      Violation                                      5.3(a)
      Wind River                                    Recitals
</TABLE>

      Section 1.3 Interpretation. Except as otherwise provided or if the context
requires otherwise, whenever used in the Agreement, (a) any noun or pronoun
shall be deemed to include the singular and the plural, (b) the terms "include"
and "including" shall be deemed to be followed by the phrase "without
limitation" and (c) the word "or" shall be inclusive and not exclusive.

                                   ARTICLE II

                         REPRESENTATIONS AND WARRANTIES

      Section 2.1 Representations and Warranties of the Company. The Company
represents and warrants to each Shareholder as follows:

      (a) The Company was duly organized as an exempted company formed with
limited liability under the laws of the Cayman Islands and is validly existing
and in good standing under the laws of the Cayman Islands, and has all necessary
power and authority to enter into this Agreement and to perform its obligations
under this Agreement.

      (b) The execution, delivery and performance of this Agreement by the
Company has been duly and validly authorized by all necessary action, and no
other proceedings on the part of the Company are necessary to authorize this
Agreement or the performance of the Company's obligations under this Agreement.

      (c) This Agreement has been duly executed and delivered by the Company,
and, assuming due authorization, execution and delivery by each other party,
constitutes a legal, valid and binding obligation of the Company, enforceable
against the Company in accordance with its terms, subject to (i) bankruptcy,
insolvency, reorganization, moratorium

                                       -5-
<PAGE>
or other similar laws affecting or relating to creditors' rights generally, and
(ii) limitations on the availability of specific performance or injunctive
relief or other equitable remedies.

      Section 2.2 Representations and Warranties of Holdings. Holdings
represents and warrants to the Company, each of the Co-investment Funds and each
of the Trusts as follows:

      (a) Holdings was duly organized as an exempted company formed with limited
liability under the laws of the Cayman Islands and is validly existing and in
good standing under the laws of the Cayman Islands, and has all necessary power
and authority to enter into this Agreement and to perform its obligations under
this Agreement.

      (b) The execution, delivery and performance of this Agreement by Holdings
has been duly and validly authorized by all necessary action, and no other
proceedings on the part of Holdings are necessary to authorize this Agreement or
the performance of Holdings' obligations under this Agreement.

      (c) This Agreement has been duly executed and delivered by Holdings, and,
assuming due authorization, execution and delivery by each other party,
constitutes a legal, valid and binding obligation of Holdings, enforceable
against Holdings in accordance with its terms, subject to (i) bankruptcy,
insolvency, reorganization, moratorium or other similar laws affecting or
relating to creditors' rights generally, and (ii) limitations on the
availability of specific performance or injunctive relief or other equitable
remedies.

      Section 2.3 Representations and Warranties of the Trusts. Each Trust,
severally and not jointly, represents and warrants to the Company, Holdings and
each of the Co-investment Funds as follows:

      (a) Such Trust is a trust duly formed, validly existing and, if
applicable, in good standing under the laws of its jurisdiction of formation,
and has all necessary power and authority to enter into this Agreement and to
perform its obligations under this Agreement.

      (b) The execution, delivery and performance of this Agreement by such
Trust has been duly and validly authorized by all necessary trust action, and no
other proceedings on the part of such Trust are necessary to authorize this
Agreement or the performance of such Trust's obligations under this Agreement.

      (c) This Agreement has been duly executed and delivered by such Trust,
and, assuming due authorization, execution and delivery by each other party,
constitutes a legal, valid and binding obligation of such Trust, enforceable
against such Trust in accordance with its terms, subject to (i) bankruptcy,
insolvency, reorganization, moratorium or other similar laws affecting or
relating to creditors' rights generally, and (ii) limitations on the
availability of specific performance or injunctive relief or other equitable
remedies.

                                      -6-
<PAGE>
      Section 2.4 Representations and Warranties of the Co-investment Funds.
Each Co-investment Fund, severally and not jointly, represents and warrants to
the Company, Holdings and each of the Trusts as follows:

      (a) Such Co-investment Fund was duly organized as a limited partnership
under the laws of the Cayman Islands and is validly existing and in good
standing under the laws of the Cayman Islands, and has all necessary power and
authority to enter into this Agreement and to perform its obligations under this
Agreement.

      (b) The execution, delivery and performance of this Agreement by such
Co-investment Fund has been duly and validly authorized by all necessary action,
and no other proceedings on the part of such Co-investment Fund are necessary to
authorize this Agreement or the performance of such Co-investment Fund's
obligations under this Agreement.

      (c) This Agreement has been duly executed and delivered by such
Co-investment Fund, and, assuming due authorization, execution and delivery by
each other party, constitutes a legal, valid and binding obligation of such
Co-investment Fund, enforceable against such Co-investment Fund in accordance
with its terms, subject to (i) bankruptcy, insolvency, reorganization,
moratorium or other similar laws affecting or relating to creditors' rights
generally, and (ii) limitations on the availability of specific performance or
injunctive relief or other equitable remedies.

                                  ARTICLE III

                                BOARD COMPOSITION

      Section 3.1 Composition of the Board. The Company shall be managed subject
to the overall direction and supervision of its Board of Directors (the
"Board"). The parties shall take all necessary actions as may be required under
applicable law (including voting all Shares and executing written resolutions of
shareholders) to cause the Board, effective from and after the date of this
Agreement, to have, and the parties shall refrain from taking any action
(including voting any Shares or executing any written consents of shareholders)
that would cause the Board, effective from and after the date of this Agreement,
not to have, the following size and composition (the "Board Composition"):

      (a) The Board shall consist of no fewer than eleven directors and shall
include (i) no fewer than six directors nominated for election by the FPC
Shareholders (which individuals shall initially be Saul A. Fox, W. Dexter Paine,
III, Troy W. Thacker, Angelos Dassios, Michael J. McDonough and John
Hendrickson) (the "FPC Shareholder Nominees"), (ii) for so long as the Trusts
together with any Trust Affiliate Transferees, in the aggregate, beneficially
own 5% of the outstanding Shares, one director nominated by the Trusts (which
individual shall initially be Russell C. Ball, III) (the "Trusts' Nominee") and
(iii) a sufficient number of "independent directors" (within the meaning of Rule
4200 of the Nasdaq Rules)

                                       -7-
<PAGE>
such that the Board complies with Rule 4350(c) of the Nasdaq Rules (which
individuals shall initially include Edward J. Noonan).

      (b) The FPC Shareholders may at any time cause any FPC Shareholder Nominee
to be removed from the Board with or without cause at their sole discretion, and
the Trusts may at any time cause the Trusts' Nominee to be removed from the
Board with or without cause at their sole discretion.

      (c) If a vacancy on the Board occurs at any time as a result of the death,
disability, resignation, retirement or removal of any director, the party or
parties nominating the director whose death, disability, resignation, retirement
or removal caused such vacancy shall have the right to nominate for election or
appointment a replacement director; provided, however, that, in the case of the
Trusts' Nominee, such nominee shall be reasonably satisfactory to the FPC
Shareholders (it being acknowledged and agreed that any executive officer,
director or partner of The AMC Group, L.P. or American Manufacturing Corporation
or any respective successor entity shall be reasonably acceptable to the FPC
Shareholders and any nominee's lack of applicable experience shall not be
reasonable grounds for the FPC Shareholders to object to such nominee).
Following notice from such party to the Company of its nomination of a
replacement director, the Board shall not conduct any business until such
nominee has been elected or appointed to the Board.

                                   ARTICLE IV

                       RESTRICTIONS ON TRANSFERS OF SHARES

      Section 4.1 General Limitations on Transfers.

      4.1.1 Transfers Generally. No Shareholder shall Transfer any Shares
(whether owned as of the date of this Agreement or subsequently acquired),
unless such Transfer is made in accordance with the requirements of this Article
IV, as may be applicable, or as contemplated by Section 5.1.

      4.1.2 Recordation on Register of Members. The Shareholders shall ensure
that the Board shall not record on the Company's Register of Members any
attempted Transfer of Shares held or owned by any Shareholder to any other
Person, except for Transfers in accordance with this Agreement for which the
Shareholders shall take all necessary steps to ensure that the Board updates the
Company's Register of Members.

      4.1.3 Obligations of Transferees. No Transfer of Shares that would be
otherwise permitted pursuant to this Agreement shall be effective unless (a) the
Transferee shall have executed an appropriate document (a "Joinder Agreement")
in form and substance reasonably satisfactory to the Company confirming that (i)
the Transferee takes such Shares subject to all the terms and conditions of this
Agreement to the same extent as its Transferor was bound by and entitled to the
benefits of such provisions and (ii) the certificates in respect of the Shares
shall bear legends, substantially in the forms required by Section 4.6, and

                                      -8-
<PAGE>
(b) such Joinder Agreement shall have been delivered to and approved by the
Company prior to such Transferee's acquisition of Shares, which approval shall
not be unreasonably withheld, conditioned or delayed. Notwithstanding the
foregoing, the provisions of this Section 4.1.3 shall not apply to a Transfer of
Shares validly made pursuant to a Piggyback Registration, pursuant to an
effective registration statement under the Securities Act, or pursuant to
Section 4.7, and, at the sole discretion of the Board, to any Transfer made in
accordance with the provisions of Sections 4.4 or 4.5.

      4.1.4 Prohibited Transfers; Transfers to Competitors. Notwithstanding
anything to the contrary in this Agreement, without the consent of the Board, no
Shareholder shall, at any time, directly or indirectly, complete any Transfer of
Shares that (a) would result in the assets of the Company constituting "Plan
Assets" as such term is defined in the Department of Labor regulations
promulgated under the United States Employee Retirement Income Security Act of
1974, as amended, (b) would cause the Company to be controlled by or be under
common control with an "investment company" for purposes of the United States
Investment Company Act of 1940, as amended, (c) would require the Shares to be
registered under the Exchange Act or (d) is made to any Person who is a
Competitor of the Company or any of its subsidiaries or to any Affiliate of such
a Competitor (other than Transfers to the Company and its Affiliates).
Notwithstanding clause (d) of this Section 4.1.4, a Transfer to a Competitor is
permitted under Section 4.1.4(d) if such Transfer is made in connection with the
exercise of a Tag-Along Right pursuant to Section 4.4 or in connection with the
exercise of a Drag-Along Right pursuant to Section 4.5, in which event such sale
may be effected only in accordance with Section 4.4 or 4.5, as applicable.
Further, this Section 4.1.4 shall not prohibit any Transfer of Shares validly
made pursuant to a registered public offering of Shares or pursuant to Rule 144
of the Securities Act.

      Section 4.2 Compliance with Securities Laws. Notwithstanding any other
provision of this Agreement, no Shareholder shall Transfer any Shares unless the
Transfer is made in accordance with the terms of this Agreement and (a) the
Transfer is effected pursuant to an effective registration statement under the
Securities Act and in compliance with any other applicable United States federal
and state securities laws and applicable foreign securities laws or (b) the
Transferor shall have furnished the Company with (i) an opinion of counsel, if
reasonably requested by the Company, which opinion of counsel shall be in form
and substance reasonably satisfactory to the Company, to the effect that no such
registration is required because of the availability of an exemption from
registration under the Securities Act and under any applicable securities laws
of any state of the United States and applicable foreign securities laws and
that the Transfer otherwise complies with any other applicable United States
federal and state securities laws and applicable foreign securities laws and
(ii) such representations and covenants of the Transferor as are reasonably
requested by the Company to ensure compliance with any applicable United States
federal and state securities laws and applicable foreign securities laws.

                                      -9-
<PAGE>

         Section 4.3 Permitted Transfers.

         4.3.1 FPC Shareholders Transfers.

         (a) Subject to Sections 4.1.3, 4.1.4 and 4.2, the FPC Shareholders may
Transfer any Shares to any Affiliate of FPC (other than the Company) or any
Person that is an investment fund managed or controlled by FPC or any Affiliate
of FPC (each, an "FPC Affiliate Transferee").

         (b) Subject to Sections 4.1.3, 4.1.4 and 4.2, as may be applicable, the
FPC Shareholders and any FPC Affiliated Transferee shall be free to Transfer
Shares to any Person, in whole at any time or in part from time to time;
provided, however, that, if such Person is not a FPC Affiliate Transferee, the
FPC Shareholders shall be required to make such Transfer pursuant to the terms
of Sections 4.4, 4.5 or 5.1, as may be applicable. Notwithstanding the
foregoing, any Transfer of Shares by the FPC Shareholders or any FPC Affiliated
Transferee to all of its respective limited partners or other investors on a pro
rata basis for consideration other than cash, shall not be subject to Section
4.4.

         4.3.2 Trust Transfers.

         (a) Subject to Sections 4.1.3, 4.1.4 and 4.2, the Trusts may Transfer
any Shares to another Trust, any Affiliate of the Trusts or to the principal
(i.e. corpus) beneficiaries of any Trust (each, a "Trust Affiliate Transferee").

         (b) Except as provided in this Article IV, the Trusts and any Trust
Affiliate Transferee shall not Transfer any Shares to any other Person without
the prior written approval of the Company, which approval may be granted or
withheld by the Board in its sole and absolute discretion.

         Section 4.4 Tag-Along Rights.

         4.4.1 Sale Notice. If at any time the FPC Shareholders or any one or
more FPC Affiliate Transferees (collectively, the "FPC Seller") proposes to
Transfer any of the Shares owned by the FPC Seller, other than (a) to any FPC
Affiliate Transferee, (b) in a Transfer subject to a Drag-Along Right pursuant
to Section 4.5 if the FPC Seller has executed its Drag-Along Right in full, or
(c) pursuant to a Piggyback Registration, then the FPC Seller shall first give
written notice (the "Sale Notice") to the Company and to each Trust, stating
that the FPC Seller desires to make such Transfer, referring to this Section
4.4, specifying the number of each class or series of Shares proposed to be
transferred by the FPC Seller (the "Offer Shares"), and specifying the price,
the form of consideration, name and description of the proposed purchaser
(including controlling Persons) (the "Proposed Transferee"), the other material
terms pursuant to which such Transfer is proposed to be made, and, if the form
of consideration is not solely cash payable in immediately available funds, cash
equivalents or marketable securities, sufficient financial information regarding
the Proposed Transferee in order for the Trusts to reasonably evaluate the
consideration proposed to be delivered.

                                      -10-
<PAGE>
         4.4.2 Tag-Along Election. Within ten business days of the date of
receipt of the Sale Notice, each Trust shall deliver to the FPC Seller and to
the Company a written notice stating whether such Trust elects to sell a pro
rata portion of its Shares (any Trust that chooses to exercise such right, an
"Offeree Shareholder") (equal to (a) the total number of Shares owned by such
Trust, multiplied by (b) a fraction, (i) the numerator of which is the number of
Offer Shares and (ii) the denominator of which is the total number of Shares
held by the FPC Shareholders and any FPC Affiliate Transferees) to such Proposed
Transferee on the same terms, purchase price and conditions as the FPC Seller
(with respect to each Trust, its "Tag-Along Shares"). An election pursuant to
the first sentence of this Section 4.4.2 shall constitute an irrevocable
commitment by the Offeree Shareholder making such election to sell such
Tag-Along Shares to the Proposed Transferee if the sale of Offer Shares to the
Proposed Transferee occurs on the terms set forth in the Sale Notice. Such terms
may include a maximum number of Shares such Proposed Transferee is willing to
purchase, and, in such case, the FPC Seller and the Offeree Shareholders shall
be cut back pro rata based on the number of Shares the FPC Seller and the
Offeree Shareholders are seeking to sell.

         4.4.3 Rights to Transfer. (a) Third-Party Sale; Tag-Along Buyer. The
FPC Seller may not consummate any Transfer that is subject to the provisions of
this Section 4.4 unless the Proposed Transferee purchases, within 180 days of
the date of the Sale Notice concurrently with and on substantially the same
terms and conditions and at the same price as the Offer Shares, all of each
Offeree Shareholder's Tag-Along Shares with respect to such Transfer, in
accordance with their elections pursuant to Section 4.4.2, and subject to the
last sentence thereof (the "Tag-Along Right"). For purposes of the preceding
sentence, the price received by the FPC Seller shall be deemed to include all
compensation of any nature and type as is received by the FPC Seller and its
Affiliates in respect of the Offer Shares and any non-competition covenants and
similar matters, but shall not include any commercially reasonable consideration
for bona fide consulting, financial, investment banking or similar services.

         (b) Sale Agreement. Each Offeree Shareholder electing to sell Tag-Along
Shares (a "Tag-Along Seller") agrees to cooperate in consummating such a
Transfer, including by becoming a party to the sale agreement and all other
appropriate related agreements, delivering, at the consummation of such
Transfer, the share certificates (if any) and other instruments of transfer for
such Shares duly endorsed for transfer, free and clear of all liens and
encumbrances, and voting or consenting in favor of such transaction (to the
extent a vote or consent is required) and taking any other necessary or
appropriate action in furtherance thereof, including the execution and delivery
of any other appropriate agreements, certificates, instruments and other
documents. Each Tag-Along Seller shall be severally responsible for its
proportionate share of the third-party expenses of the Transfer incurred by the
FPC Seller in connection with such Transfer and the monetary obligations and
liabilities incurred by the FPC Seller in connection with such sale. Such
monetary obligations and liabilities shall include (to the extent such
obligations are incurred by the FPC Seller) obligations and liabilities for
indemnification with respect to breaches of representations and warranties made
in connection with such Transfer by the Company or by the FPC Seller and any
Tag-Along Sellers with respect to the Company or the Company's business, and
shall also

                                      -11-
<PAGE>
include amounts paid into escrow or subject to holdbacks, and amounts subject to
post-closing purchase price adjustments; provided, however, that all such
obligations are equally applicable on a several and not joint basis to the FPC
Seller and each Tag-Along Seller based on the consideration received by the FPC
Seller and such Tag-Along Seller. The foregoing notwithstanding, (i) without the
written consent of a Tag-Along Seller, the amount of such obligations and
liabilities for which such Tag-Along Seller shall be responsible shall not
exceed the gross proceeds received by such Tag-Along Seller in such Transfer,
and (ii) a Tag-Along Seller shall not be responsible for the fraud of the FPC
Seller or any other Tag-Along Seller or for any indemnification obligations and
liabilities for breaches of representations and warranties made by the FPC
Seller or any other Tag-Along Seller with respect to such other seller's (A)
ownership of and title to Shares, (B) organization, (C) authority or (D)
conflicts and consents and any other matter concerning such other seller, or for
breaches of any covenants made by the FPC Seller or any other Tag-Along Seller.

         (c) No Liability. Notwithstanding any other provision contained in this
Section 4.4.3, there shall be no liability on the part of the Company or the FPC
Seller in the event that any Transfer of Offer Shares pursuant to this Section
4.4.3 is not consummated for any reason whatsoever. The decision whether to
effect a Transfer subject to this Section 4.4.3 shall be in the sole and
absolute discretion of the FPC Seller.

         4.4.4 Intention of the Parties. The parties acknowledge that the
intention of this Section 4.4 (together with Section 5.1) is to assure that the
Trusts have the ability to liquidate their Shares in amounts and at times that
are related to the amounts and times at which the FPC Shareholders and any FPC
Affiliate Transferee achieves, directly or indirectly, liquidity with respect to
any or all of their investment in the Company. The parties accordingly agree
that upon any direct or indirect Transfer of equity interests of the FPC
Shareholders or any FPC Affiliate Transferee (other than to an FPC Affiliate
Transferee), the Trusts shall have rights in connection with such Transfer that
are comparable to those rights that it would have been afforded had the FPC
Shareholders or the FPC Affiliate Transferee directly Transferred a
proportionate amount of its interest in the Company.

         Section 4.5 Drag-Along Right.

         4.5.1 Exercise. If at any time an FPC Seller proposes to make a
Transfer, in a bona fide arm's-length sale transaction or series of related sale
transactions to a Person that is not an FPC Affiliate Transferee, of Shares
representing (together with any Shares to be sold by a Drag-Along Seller under
this Section 4.5) at least 50% of the outstanding Shares to a Proposed
Transferee (the "Drag-Along Sale"), including pursuant to a share sale, merger,
business combination, recapitalization, consolidation, reorganization,
restructuring or similar transaction, the FPC Seller shall have the right (a
"Drag-Along Right"), exercisable upon 15 days' prior written notice to the
Trusts, to require the Trusts to sell a number of Shares equal to (a) the total
number of Shares owned by such Trust, multiplied by (b) a fraction (i) the
numerator of which is the number of Shares the FPC Seller proposes to sell to
the Proposed Transferee and (ii) the denominator of which is the total number of
Shares held by the FPC Shareholders and any FPC Affiliate Transferees, to the
Proposed Transferee on the

                                      -12-
<PAGE>
same terms and conditions (including the same proportions of each class or
series of Shares) and at the same price as the FPC Seller would receive in
connection with such transaction. For purposes of the preceding sentence, the
price received by the FPC Seller shall be deemed to include all compensation of
any nature and type as is received by the FPC Seller and its Affiliates in
respect of the Shares to be sold by the FPC Seller and any non-competition
covenants and similar matters, but shall not include any commercially reasonable
consideration for bona fide consulting, financial, investment banking or similar
services.

         4.5.2 Sale Agreement. Each Trust selling Shares pursuant to a
transaction contemplated by this Section 4.5 (each such Trust, a "Drag-Along
Seller") agrees to cooperate in consummating such a Transfer, including, without
limitation, by becoming a party to the sale agreement and all other appropriate
related agreements, delivering, at the consummation of such Transfer, the share
certificates (if any) and other instruments of transfer for such Shares duly
endorsed for transfer, free and clear of all liens and encumbrances, and voting
or consenting in favor of such transaction (to the extent a vote or consent is
required) and taking any other necessary or appropriate action in furtherance
thereof, including the execution and delivery of any other appropriate
agreements, certificates, instruments and other documents. Each Drag-Along
Seller shall be severally responsible for its proportionate share of the
third-party expenses of the Transfer incurred by the FPC Seller in connection
with such Transfer and the monetary obligations and liabilities incurred by the
FPC Seller in connection with such Transfer. Such monetary obligations and
liabilities shall include (to the extent such obligations are incurred by the
FPC Seller) obligations and liabilities for indemnification with respect to
breaches of representations and warranties made in connection with such Transfer
by the Company or by the FPC Seller and any Drag-Along Sellers with respect to
the Company or the Company's business, and shall also include amounts paid into
escrow or subject to holdbacks, and amounts subject to post-closing purchase
price adjustments; provided, however, that all such obligations are equally
applicable on a several and not joint basis to the FPC Seller and each
Drag-Along Seller based on the consideration received by the FPC Seller and such
Drag-Along Seller. The foregoing notwithstanding, (i) without the written
consent of a Drag-Along Seller, the amount of such obligations and liabilities
for which such Drag-Along Seller shall be responsible shall not exceed the gross
proceeds received by such Drag-Along Seller in such Transfer, and (ii) a
Drag-Along Seller shall not be responsible for the fraud of the FPC Seller or
any other Drag-Along Seller or for any indemnification obligations and
liabilities for breaches of representations and warranties made by the FPC
Seller or any other Drag-Along Seller with respect to such other seller's (A)
ownership of and title to Shares, (B) organization, (C) authority or (D)
conflicts and consents and any other matter concerning such other seller, or for
breaches of any covenants made by the FPC Seller or any other Drag-Along Seller.

         4.5.3 No Liability. Notwithstanding any other provision contained in
this Section 4.5, there shall be no liability on the part of the Company or the
FPC Seller in the event that the Transfer pursuant to this Section 4.5 is not
consummated for any reason whatsoever. The decision whether to effect a Transfer
pursuant to this Section 4.5 shall be in the sole and absolute discretion of the
FPC Seller.

                                      -13-
<PAGE>
         Section 4.6 Additional Provisions Relating to Restrictions on
Transfers.

         4.6.1 Legends. Each outstanding certificate representing Shares, shall
bear legends reading substantially as follows:

                  (a) "THE SECURITIES REPRESENTED BY THIS CERTIFICATE WERE
         ISSUED IN A TRANSACTION THAT WAS NOT REGISTERED UNDER THE UNITED STATES
         SECURITIES ACT OF 1933, AS AMENDED, UNDER THE SECURITIES LAWS OF ANY
         STATE OF THE UNITED STATES OR UNDER ANY FOREIGN SECURITIES LAWS AND MAY
         NOT BE TRANSFERRED, SOLD OR OTHERWISE DISPOSED OF EXCEPT PURSUANT TO AN
         EFFECTIVE REGISTRATION STATEMENT OR PURSUANT TO AN EXEMPTION FROM
         REGISTRATION UNDER SAID ACT AND APPLICABLE STATE AND FOREIGN SECURITIES
         LAWS."

                  (b) "THE SECURITIES REPRESENTED BY THIS CERTIFICATE ARE
         SUBJECT TO THE TERMS AND CONDITIONS SET FORTH IN A SHAREHOLDERS
         AGREEMENT, DATED AS OF SEPTEMBER 5, 2003, AS AMENDED FROM TIME TO TIME,
         COPIES OF WHICH MAY BE OBTAINED FROM THE ISSUER OR FROM THE HOLDER OF
         THIS CERTIFICATE. NO TRANSFER OF SUCH SECURITIES WILL BE MADE ON THE
         BOOKS OF THE ISSUER UNLESS ACCOMPANIED BY EVIDENCE OF COMPLIANCE WITH
         THE TERMS OF SUCH AGREEMENT."

         4.6.2 Copy of Agreement. A copy of this Agreement shall be filed with
the secretary of the Company, and kept with the records of the Company, and
shall be made available for inspection by any holder of Shares at the principal
executive offices of the Company.

         4.6.3 Termination of Restrictions. The restriction referred to in the
legend required pursuant to Section 4.6.1(a) shall cease and terminate as to any
particular Shares when, in the reasonable opinion of counsel for the Company,
such restriction is no longer required in order to assure compliance with the
Securities Act, the securities laws of any state of the United States or
applicable foreign securities laws. The Company or the Company's counsel, at
their election, may request from any holder of Shares a certificate or an
opinion of such holder's counsel with respect to any relevant matters in
connection with the removal of the legend set forth in Section 4.6.1(a) from
such holder's share certificates, any such certificate or opinion of counsel to
be reasonably satisfactory to the Company and its counsel. The restrictions
referred to in the legend required by Section 4.6.1(b) shall cease and terminate
as to any particular Shares when, in the reasonable opinion of counsel for the
Company, the provisions of this Agreement are no longer applicable to such
Shares or this Agreement shall have terminated in accordance with its terms.
Whenever such restrictions shall cease and terminate as to any Shares, the
holder thereof shall be entitled to receive from the Company, without expense
(other than applicable transfer taxes, if any, if such unlegended Shares are
being delivered and transferred to any Person other than the registered

                                      -14-
<PAGE>
holder thereof), new certificates for a like number of Shares not bearing the
relevant legend(s) set forth in Section 4.6.1.

         Section 4.7 Transfers Pursuant to Rule 144. Notwithstanding Section
4.1.1, following the IPO, the Trusts may effect any Transfer of Shares pursuant
to sales under Rule 144, to the extent available; provided, however, that the
Trusts shall not effect any Transfers under this Section 4.7 if (a) in the good
faith judgment of the Board based on advice from its outside financial advisors,
such sales would interfere with a pending registration or a registration that
the Company plans to file within the next 60 days and (b) each other Shareholder
of the Company is similarly restricted from effecting any such Transfers.

                                   ARTICLE V

                               REGISTRATION RIGHTS

         Section 5.1 Piggyback Registrations.

         5.1.1 Piggyback Registrations. If at any time (a) either (i) the
Company proposes to register for sale by the Company under the Securities Act
any Common Shares (other than a registration on Form S-4 or Form S-8, or any
successor or similar forms) in a manner that would permit registration of
Registrable Securities for sale to the public under the Securities Act, and (ii)
the FPC Shareholders or any FPC Affiliate Transferee or any other shareholder
proposes to sell Registrable Securities in such registered sale, or (b) the
Company proposes to register for sale by any FPC Shareholder or any FPC
Affiliate Transferee to the public under the Securities Act any Registrable
Securities, the Company shall each such time promptly give written notice to any
Trust that beneficially owns any Registrable Securities of its intention to do
so, of the registration form of the SEC that has been selected by the Company
and of such holders' rights under this Section 5.1 (the "Piggyback Notice").
Subject to Section 5.1.4, the Company shall use its reasonable best efforts to
include, and to cause the underwriter or underwriters, if applicable, to
include, in the proposed offering, on the same terms and conditions as the
Common Shares proposed to be sold by the Company, the FPC Shareholders or FPC
Affiliate Transferees and any other shareholder in such offering, all
Registrable Securities that the Company has been requested in writing, within 15
calendar days after the Piggyback Notice is given, to register by the holders
thereof (each such registration pursuant to this Section 5.1.1, a "Piggyback
Registration"); provided, however, that (a) if, at any time after giving a
Piggyback Notice and prior to the effective date of the registration statement
filed in connection with such registration, the Company shall determine for any
reason not to register such Common Shares, the Company may, at its election,
give written notice of such determination to all Trusts who beneficially own any
Registrable Securities and, thereupon, shall be relieved of its obligation to
register any Registrable Securities in connection with such abandoned
registration, and (b) in case of a determination by the Company to delay
registration of its Common Shares the Company shall be permitted to delay the
registration of such Registrable Securities for the same period as the delay in
registering such other Common Shares. In the case of any registration of
Registrable Securities in an underwritten offering pursuant to this Section
5.1.1, all Shareholders

                                      -15-
<PAGE>
proposing to distribute their securities pursuant to this Section 5.1.1 shall,
at the request of the Company, enter into an agreement in customary form with
the underwriter or underwriters selected by the Company.

         5.1.2 Expenses. The Company shall pay all Registration Expenses in
connection with each registration of Registrable Securities requested pursuant
to this Section 5.1; provided, however, that each Trust shall pay all
underwriting discounts and commissions and transfer taxes, if any, relating to
the sale or disposition of such Trust's Registrable Securities pursuant to a
registration statement effected pursuant to this Section 5.1.

         5.1.3 Priority in Piggyback Registrations. If the managing underwriter
for a registration pursuant to this Section 5.1 shall advise the Company in
writing that, in its opinion, the number of Registrable Securities requested to
be included in such registration exceeds the number (the "Maximum Sale Number")
that can be sold in an orderly manner in such offering within a price range
acceptable to the Company or the shareholder for which such registration was
initially proposed to be effected, the Company shall include in such offering
the following Common Shares: (a) first, all the Common Shares, if any, the
Company proposes to register for its own sale, and (b) second, all Registrable
Securities requested to be included by all Shareholders (or if the number of
such Registrable Securities exceeds the Maximum Sale Number less the number of
Common Shares included pursuant to clause (a) above, then the number of such
Registrable Securities included in such registration pursuant to this clause (b)
shall be equal to the excess of the Maximum Sale Number over the number of
Common Shares included pursuant to clause (a) above and shall be allocated pro
rata among all requesting Shareholders, on the basis of the relative number of
Registrable Securities each such Shareholder had requested to have included in
such registration). Notwithstanding the foregoing, if, at the time such proposed
registration is be effective, the Registrable Securities proposed to be included
by the Trusts in such registration are eligible for sale to the public under
Rule 144(k) under the Securities Act, the Company shall include in such offering
the following Common Shares: (i) first, all the Common Shares, if any, the
Company proposes to register for its own sale, (ii) second, all Registrable
Securities requested to be included by the FPC Shareholders (or if the number of
such Registrable Securities exceeds the Maximum Sale Number less the number of
Common Shares included pursuant to clause (i) above, then the number of such
Registrable Securities included in such registration pursuant to this clause
(ii) shall be equal to the excess of the Maximum Sale Number over the number of
Common Shares included pursuant to clause (i) above); and (iii) third , all
Registrable Securities requested to be included by the Trusts (or if the number
of such Registrable Securities exceeds the Maximum Sale Number less the number
of Common Shares included pursuant to clauses (i) and (ii) above, then the
number of such Registrable Securities included in such registration pursuant to
this clause (iii) shall be equal to the excess of the Maximum Sale Number over
the number of Common Shares included pursuant to clauses (i) and (ii) above).

         5.1.4 Underwriting Requirements. In connection with any offering
involving any underwriting of securities in a Piggyback Registration, the
Company shall not be required

                                      -16-
<PAGE>
to include any Shareholder's Registrable Securities in such underwriting unless
such Shareholder accepts the terms of the underwriting as agreed upon between
the Company and the underwriters in such quantities and on such terms as set
forth in Section 5.1.1, and such Shareholder agrees to sell such Shareholder's
Registrable Securities on the basis provided therein and completes and/or
executes all questionnaires, indemnities, lock-ups, underwriting agreements and
other documents (including powers of attorney and custody arrangements) required
generally of all selling Shareholders, in each case, in customary form and
substance, which are requested to be executed in connection therewith.

         Section 5.2 Registration Procedures. If and whenever the Company is
required to use its reasonable best efforts to effect or cause the registration
of any Registrable Securities under the Securities Act as provided in this
Article V, the Company will, as soon as practicable:

                  (a) prepare and file with the SEC the requisite registration
         statement with respect to such Registrable Securities and use its
         reasonable best efforts to cause such registration statement to become
         and remain effective in order to permit the sale of the Registrable
         Securities by the Shareholders in accordance with the intended method
         or methods of distribution thereof described in such registration
         statement;

                  (b) prepare and file with the SEC such amendments and
         supplements to such registration statement and the prospectus used in
         connection therewith as may be necessary to keep such registration
         statement effective during such period;

                  (c) comply with the provisions of the Securities Act with
         respect to the sale or other disposition of all securities covered by
         such registration statement during such period;

                  (d) furnish to each Shareholder of such Registrable Securities
         and each underwriter such number of copies of such registration
         statement and of each amendment and supplement thereto (in each case
         including all exhibits), such number of copies of the prospectus
         included in such registration statement (including each preliminary
         prospectus and summary prospectus), in conformity with the requirements
         of the Securities Act, and such other documents as such Shareholder may
         reasonably request;

                  (e) (i) promptly notify in writing each Shareholder that holds
         Registrable Securities covered by such registration statement, (A) when
         such registration statement or any post-effective amendment or
         supplement thereto becomes effective, (B) of the issuance by the SEC or
         any state securities authority of any stop order, injunction or other
         order or requirement suspending the effectiveness of such registration
         statement (and take all reasonable action to prevent the entry of such
         stop order or to remove it if entered, or the initiation of any
         proceedings for that purpose), or (C) of the happening of any event as
         a result of which the registration statement, as then in effect, the
         prospectus related thereto or any document included therein by

                                      -17-
<PAGE>
         reference includes an untrue statement of a material fact or omits to
         state a material fact required to be stated therein or necessary to
         make the statements therein not misleading in the light of the
         circumstances under which they were made and (ii) in the case of an
         event under clause (e)(i)(B) or (C), promptly file such amendments and
         supplements which may be required on account of such event and use its
         reasonable best efforts to cause each such amendment and supplement to
         become effective;

                  (f) promptly furnish counsel for each underwriter, if any, and
         for the selling Shareholders of Registrable Securities copies of any
         written request by the SEC or any state securities authority for
         amendments or supplements to a registration statement and prospectus or
         for additional information;

                  (g) use reasonable best efforts to obtain the withdrawal of
         any order suspending the effectiveness of a registration statement at
         the earliest possible time;

                  (h) use its best efforts to cause all such Registrable
         Securities covered by such registration statement to be listed on the
         principal securities exchange or authorized for quotation on Nasdaq, if
         any, on which similar equity securities issued by the Company are then
         listed or authorized for quotation, or eligible for listing or
         quotation, if the listing or authorization for quotation of such
         securities is then permitted under the rules of such exchange or the
         NASD;

                  (i) enter into an underwriting agreement with the underwriter
         of such offering in the form customary for such underwriter for similar
         offerings, including such representations and warranties by the
         Company, provisions regarding the delivery of opinions of counsel for
         the Company and accountants' letters, provisions regarding
         indemnification and contribution, and such other terms and conditions
         as are at the time customarily contained in such underwriter's
         underwriting agreements for similar offerings (the sellers of
         Registrable Securities that are to be distributed by such
         underwriter(s) may, at their option, require that any or all of the
         representations and warranties by, and the other agreements on the part
         of, the Company to and for the benefit of such underwriter(s) shall
         also be made to and for the benefit of such sellers of Registrable
         Securities);

                  (j) make available for inspection by representatives of the
         selling Shareholders who hold Registrable Securities and any
         underwriters participating in any disposition pursuant hereto and any
         counsel or accountant retained by such Shareholders or underwriters,
         all relevant financial and other records, pertinent documents and
         properties of the Company and cause the respective officers, directors
         and employees of the Company to supply all information reasonably
         requested by any such representative, underwriter, counsel or
         accountant in connection with a registration pursuant hereto; provided,
         however, that, with respect to records, documents or information which
         the Company determines, in good faith, to be confidential and as to
         which the Company notifies such representatives,

                                      -18-
<PAGE>
         underwriters, counsel or accountants in writing of such
         confidentiality, such representatives, underwriters, counsel or
         accountants shall not disclose such records, documents or information
         unless (i) the release of such records, documents or information is
         ordered pursuant to a subpoena or other order from a court of competent
         jurisdiction, or (ii) such records, documents or information have
         previously been generally made available to the public. Each selling
         Shareholder of such Registrable Securities agrees that information
         obtained by it as a result of such inspections shall be deemed
         confidential and shall not be used by it as the basis for any market
         transactions in the securities of the Company or its Affiliates (or for
         such Shareholder's business purposes or for any reason other than in
         connection with a registration hereunder) unless and until such
         information is made generally available (other than by such Shareholder
         or where such Shareholder knows that such information became publicly
         available as a result of a breach of any confidentiality arrangement)
         to the public. Each selling Shareholder of such Registrable Securities
         further agrees that it will, upon learning that disclosure of such
         records is sought, give notice to the Company and allow the Company, at
         its expense, to undertake appropriate action to prevent disclosure of
         the records deemed confidential;

                  (k) permit any beneficial owner of Registrable Securities
         that, in the sole judgment, exercised in good faith, of such holder,
         might be deemed to be a controlling Person of the Company, to
         participate in the preparation of such registration or comparable
         statement and to require the insertion therein of material, furnished
         to the Company in writing, that in the judgment of such holder, as
         aforesaid, should be included; and

                  (l) make reasonably available its employees and personnel and
         otherwise provide reasonable assistance to the underwriters (taking
         into account the needs of the Company's businesses and the requirements
         of the marketing process) in the marketing of the Registrable
         Securities in any underwritten offering.

         The Company may require each Shareholder who is selling Registrable
Securities pursuant to which any registration is being effected to furnish the
Company such information regarding such Shareholder and the distribution of such
Registrable Securities as the Company may from time to time reasonably request
in writing. The Company shall not be required to register or qualify any
Registrable Securities covered by such registration statement under any state
securities or "blue sky" laws of such jurisdictions other than as it deems
necessary in connection with the chosen method of distribution or to take any
other actions or do any other things other than those it reasonably deems
necessary or advisable to consummate such distribution, and the Company shall
not for any such purpose be required to qualify generally to do business as a
foreign entity in any jurisdiction wherein it would not otherwise be obligated
to be so qualified, to subject itself to taxation in any such jurisdiction or to
consent to general service of process in any such jurisdiction.

         Each beneficial owner of Registrable Securities agrees that upon
receipt of any notice from the Company of the happening of any event of the kind
described in clauses (e)(i)(B) and (e)(i)(C) above, such beneficial owner will
forthwith discontinue

                                      -19-
<PAGE>
disposition of Registrable Securities pursuant to the registration statement
covering such Registrable Securities until such beneficial owner's receipt of
the copies of the supplemented or amended prospectus contemplated by clause
(e)(ii) above, and, if so directed by the Company, such beneficial owner will
deliver to the Company (at the Company's expense) all copies, other than
permanent file copies then in such beneficial owner's possession, of the
prospectus covering such Registrable Securities that was in effect prior to such
amendment or supplement.

         Section 5.3 Indemnification. (a) In the event of any registration of
any Registrable Securities pursuant to this Article V, the Company shall
indemnify and hold harmless, to the fullest extent permitted by law, the seller
of any Registrable Securities covered by such registration statement, its
Affiliates, directors, officers, fiduciaries, employees, agents and stockholders
or members or general and limited partners (and the directors, officers,
fiduciaries, employees, agents and stockholders or members or general and
limited partners thereof), each other Person who participates as an underwriter
or a qualified independent underwriter, if any, in the offering or sale of such
securities, each director, officer, fiduciary, employee, agent and stockholder
or general and limited partner of such underwriter or qualified independent
underwriter, and each other Person (including any such Person's directors,
officers, fiduciaries, employees, agents and stockholders or members or general
and limited partners), if any, who controls such seller or any such underwriter
or qualified independent underwriter, within the meaning of the Securities Act,
against any and all Claims in respect thereof and expenses (including reasonable
fees and expenses of counsel and any amounts paid in any settlement effected
with the Company's consent, which consent shall not be unreasonably withheld,
conditioned or delayed) to which each such indemnified party may become subject
under the Securities Act, the Exchange Act or otherwise, insofar as such Claims
or expenses arise out of or are based upon any of the following actual or
alleged statements, omissions or violations (each, a "Violation"): (i) any
untrue statement or alleged untrue statement of a material fact contained in any
registration statement under which such Registrable Securities were registered
pursuant to this Agreement under the Securities Act or the omission or alleged
omission to state therein a material fact required to be stated therein or
necessary to make the statements therein, in light of the circumstances under
which they were made, not misleading, (ii) any untrue statement or alleged
untrue statement of a material fact contained in any preliminary, final or
summary prospectus or any amendment or supplement thereto (unless corrected in
the final prospectus), together with the documents incorporated by reference
therein, or the omission or alleged omission to state therein a material fact
required to be stated therein or necessary in order to make the statements
therein, in light of the circumstances under which they were made, not
misleading, or (iii) any violation by the Company of any federal, state, common
law or applicable foreign rule or regulation applicable to the Company and
relating to action required of or inaction by the Company in connection with any
such registration, and the Company will reimburse any such indemnified party for
any legal or other expenses reasonably incurred by such indemnified party in
connection with investigating or defending any such Claim as such expenses are
incurred; provided, however, that the Company shall not be liable to any such
indemnified party in any such case to the extent such Claim or expense arises
out of or is based upon any Violation that occurs in reliance upon and in
conformity with written information furnished to the Company

                                      -20-
<PAGE>
or its representatives by or on behalf of such indemnified party expressly
stating that such information is for use therein.

         (b) Each holder of Registrable Securities that are included in the
securities as to which any Piggyback Registration is being effected (and, if the
Company requires as a condition to including any Registrable Securities in any
registration statement filed in connection with any Piggyback Registration, any
underwriter and qualified independent underwriter, if any) shall, severally and
not jointly, indemnify and hold harmless (in the same manner and to the same
extent as set forth in Section 5.3(a)), to the fullest extent permitted by law,
the Company, its directors, officers, fiduciaries, employees, agents and
shareholders (and the directors, officers, fiduciaries, employees, agents and
shareholders or members or general and limited partners thereof) and each Person
(including any such Person's directors, officers, fiduciaries, employees, agents
and stockholders or members or general and limited partners), if any,
controlling the Company within the meaning of the Securities Act and all other
prospective sellers and their directors, officers, fiduciaries, employees,
agents and shareholders or general and limited partners and respective
controlling Persons (including any such Person's directors, officers,
fiduciaries, employees, agents and shareholders or members or general and
limited partners) against any and all Claims and expenses (including reasonable
fees and expenses of counsel and any amounts paid in any settlement effected
with the consent of the indemnifying party, which consent shall not be
unreasonably withheld, conditioned or delayed) to which each such indemnified
party may become subject under the Securities Act, the Exchange Act or
otherwise, insofar as such Claims or expenses arise out of or are based upon any
Violation that occurs in reliance upon and in conformity with written
information furnished to the Company or its representatives by or on behalf of
such holder of Registrable Securities, expressly stating that such information
is for use in connection with any registration statement, preliminary, final or
summary prospectus or amendment or supplement or document incorporated by
reference into any of the foregoing. Notwithstanding anything in this Section
5.3(b) to the contrary, no indemnifying party shall be required pursuant to this
Section 5.3(b) to contribute any amount in excess of the gross proceeds received
by such indemnifying party from the sale of Registrable Securities in the
offering to which the Claims of the indemnified parties relate.

         (c) Indemnification similar to that specified in Sections 5.3(a) and
5.3(b) (with appropriate modifications) shall be given by the Company and each
seller of Registrable Securities (and, if the Company requires as a condition to
including any Registrable Securities in any registration statement filed in
connection with any Piggyback Registration, any underwriter and qualified
independent underwriter, if any) with respect to any required registration or
other qualification of securities under any securities or "blue sky" laws of any
state of the United States or applicable foreign laws.

         (d) Any Person entitled to indemnification under this Agreement shall
notify promptly the indemnifying party in writing of the commencement of any
action or proceeding with respect to which a claim for indemnification may be
made pursuant to this Section 5.3, but the failure of any indemnified party to
provide such notice shall not relieve the indemnifying party of its obligations
under the preceding paragraphs of this Section 5.3,

                                      -21-
<PAGE>
except to the extent the indemnifying party is prejudiced thereby and shall not
relieve the indemnifying party from any liability that it may have to any
indemnified party otherwise than under this Section 5.3. In case any action or
proceeding is brought against an indemnified party and it shall notify the
indemnifying party of the commencement thereof, the indemnifying party shall be
entitled to participate therein and, unless in the reasonable opinion of outside
counsel to the indemnified party a conflict of interest between such indemnified
and indemnifying parties may exist in respect of such claim, to assume the
defense thereof jointly with any other indemnifying party similarly notified, to
the extent that it chooses, with counsel reasonably satisfactory to such
indemnified party, and after notice from the indemnifying party to such
indemnified party that it so chooses, the indemnifying party shall not be liable
to such indemnified party for any legal or other expenses subsequently incurred
by such indemnified party in connection with the defense thereof other than
reasonable costs of investigation; provided, however, that (i) if the
indemnifying party fails to take reasonable steps necessary to defend diligently
the action or proceeding within 20 calendar days after receiving notice from
such indemnified party that the indemnified party believes it has failed to do
so; or (ii) if such indemnified party who is a defendant in any action or
proceeding that is also brought against the indemnifying party reasonably shall
have concluded that there may be one or more legal defenses available to such
indemnified party which are not available to the indemnifying party; or (iii) if
representation of both parties by the same counsel is otherwise inappropriate
under applicable standards of professional conduct, then, in any such case, the
indemnified party shall have the right to assume or continue its own defense as
set forth above (but with no more than one firm of counsel for all indemnified
parties in each jurisdiction, except to the extent any indemnified party or
parties reasonably shall have concluded that there may be legal defenses
available to such party or parties that are not available to the other
indemnified parties or to the extent representation of all indemnified parties
by the same counsel is otherwise inappropriate under applicable standards of
professional conduct) and the indemnifying party shall be liable for any
expenses therefor. No indemnifying party shall, without the written consent of
the indemnified party, which consent shall not be unreasonably withheld,
conditioned or delayed, effect the settlement or compromise of, or consent to
the entry of any judgment with respect to, any Claim in respect of which
indemnification or contribution may be sought hereunder (whether or nor the
indemnified party is an actual or potential party to such Claim) unless such
settlement, compromise or judgment (A) includes an unconditional release of the
indemnified party from all liability arising out of such Claim and (B) does not
include a statement as to or an admission of fault, culpability or a failure to
act, by or on behalf of any indemnified party.

         (e) If for any reason the foregoing indemnity is unavailable or is
insufficient to hold harmless an indemnified party under Sections 5.3(a), 5.3(b)
or 5.3(c), then each indemnifying party shall contribute to the amount paid or
payable by such indemnified party as a result of any Claim in such proportion as
is appropriate to reflect the relative fault of the indemnifying party on the
one hand and the indemnified party and any other indemnifying party on the other
hand from the relevant offering of securities. If, however, the allocation
provided in the immediately preceding sentence is not permitted by applicable
law, or if the indemnified party failed to give the notice required by Section
5.3(d) above and the indemnifying party is prejudiced thereby, then each
indemnifying party shall contribute to the

                                      -22-
<PAGE>
amount paid or payable by such indemnified party in such proportion as is
appropriate to reflect not only such relative fault of but also the relative
benefits received by the indemnifying party, on the one hand, and the
indemnified party, on the other hand, as well as any other relevant equitable
considerations, including the extent of such prejudice. The relative fault shall
be determined by a court of law by reference to, among other things, whether the
Violation relates to information supplied by the indemnifying party or the
indemnified party and the parties' relative intent knowledge, access to
information and opportunity to correct or prevent such Violation. The parties
hereto agree that it would not be just and equitable if contributions pursuant
to this Section 5.3(e) were to be determined by pro rata allocation or by any
other method of allocation does not take account of the equitable considerations
referred to in the preceding sentences of this Section 5.3(e). The amount paid
or payable in respect of any Claim shall be deemed to include any legal or other
expenses reasonably incurred by such indemnified party in connection with
investigating or defending any such Claim. No Person guilty of fraudulent
misrepresentation (within the meaning of Section 11(f) of the Securities Act)
shall be entitled to contribution from any Person who was not guilty of such
fraudulent misrepresentation. Notwithstanding anything in this Section 5.3(e) to
the contrary, no indemnifying party (other than the Company) shall be required
pursuant to this Section 5.3(e) to contribute any amount in excess of the gross
proceeds received by such indemnifying party from the sale of Registrable
Securities in the offering to which the Claims of the indemnified parties
relate.

         (f) The indemnity agreements contained in this Agreement shall be in
addition to any other rights to indemnification or contribution that any
indemnified party may have pursuant to law or contract and shall remain
operative and in full force and effect regardless of any investigation made or
omitted by or on behalf of any indemnified party and shall survive the transfer
of the Registrable Securities by any such party and the termination of this
Agreement.

         (g) The indemnification and contribution required by this Section 5.3
shall be made by periodic payments of the amount thereof during the course of
the investigation or defense, as and when bills are received or expense, loss,
damage or liability is incurred.

         (h) In connection with underwritten offerings, the Company will use
reasonable best efforts to negotiate terms of indemnification that are
reasonably favorable to the various sellers pursuant thereto, as appropriate
under the circumstances.

         Section 5.4 Rule 144 Reporting. With a view to making available to the
Shareholders the benefits of certain rules and regulations of the SEC, which may
permit the sale of the Registrable Securities to the public without
registration, at all times after 90 days after any registration statement
covering a public offering of Common Shares under the Securities Act shall have
become effective, or at all times after the Common Shares shall initially be
registered pursuant to the requirements of Section 12 of the Exchange Act, the
Company shall at its cost and expense use its reasonable best efforts to comply
with the filing requirements described in Rule 144(c)(1).

                                      -23-

<PAGE>
                  Section 5.5 Lock-Up Agreement. If requested in writing by the
Company or the underwriter of any underwritten offering including the IPO, each
Shareholder agrees not to effect any public sale or distribution, including any
sale pursuant to Rule 144, of any Registrable Securities or any other Equity
Security (in each case, other than as part of such underwritten public offering)
within 14 calendar days before or 180 calendar days after the effective date of
a registration statement or for such shorter period as the sole or lead managing
underwriter or the Company shall request, in any such case, unless consented to
by such underwriter or the Company, as applicable.

                                   ARTICLE VI

                                    COVENANTS

                  Section 6.1 No Voting or Conflicting Agreements. No
Shareholder shall enter into or agree to be bound by any voting trust with
respect to any Shares, nor shall any Shareholder enter into any shareholder
arrangements of any kind with any Person with respect to any Shares inconsistent
with the provisions of this Agreement. The foregoing prohibition includes, but
is not limited to, agreements or arrangements with respect to the acquisition,
disposition or voting of Shares inconsistent with the provisions of this
Agreements. No Shareholder shall act, at any time, for any reason, as a member
of a group or in concert with any other Persons in connection with the
acquisition, disposition or voting of Shares in any manner that is inconsistent
with the provisions of this Agreement.

                  Section 6.2 Further Assurances. The parties shall from time to
time execute and deliver all such further documents and do all acts and things
as the other parties may reasonably require to effectively carry out or better
evidence or perfect the full intent and meaning of this Agreement, including, to
the extent necessary or appropriate, using all reasonable efforts to cause the
amendment of the memorandum and articles of association of the Company in order
to provide for the enforcement of this Agreement in accordance with its terms.
In furtherance and not in limitation of the foregoing, in the event of any
amendment, modification or termination of this Agreement in accordance with its
terms, the Shareholders shall cause the Board to meet within 30 days following
such amendment, modification or termination or as soon thereafter as is
practicable for the purpose of amending the memorandum and articles of
association of the Company, as may be required as a result of such amendment,
modification or termination, and, to the extent required by law, proposing such
amendments to the shareholders of the Company entitled to vote thereon, and such
action shall be the first action to be taken at such meeting. Immediately
following the Transactions, the Shareholders shall take all necessary steps to
ensure that the Board updates the Company's Register of Members to reflect the
Shares issued in the Transactions if not previously done.

                  Section 6.3 Certain Transactions. FPC shall have the right to
perform all consulting, financing, investment banking and similar services for
the Company and its subsidiaries, for customary compensation (as determined by
the Board of Directors of the

                                      -24-
<PAGE>
Company in its sole discretion) and on other terms that are customary for
similar engagements with unaffiliated third parties.

                  Section 6.4 Confidentiality. The terms of this Agreement shall
be confidential and neither the Company nor any Shareholder nor any Affiliate
thereof shall disclose to any Person not a party to this Agreement any of the
terms of this Agreement, except as may be required by applicable law, this
Agreement, or to negotiate and effect a Transfer permitted under this Agreement.

                                  ARTICLE VII

                           EFFECTIVENESS; TERMINATION

                  Section 7.1 Effectiveness; Term.

                  7.1.1 This Agreement shall become effective as of the date of
this Agreement. The rights and obligations of, and restrictions on, the
Shareholders under Article IV shall terminate upon the date that the FPC
Shareholders and FPC Affiliated Transferees no longer hold in the aggregate at
least 25% of the fully-diluted Shares then outstanding (subject, however, to all
obligations of the parties that must be fulfilled prior to such event).
Notwithstanding the foregoing, in the event the Company enters into any
agreement to merge or consolidate with or into any other Person or adopts any
other plan of recapitalization, consolidation, reorganization or other
restructuring transaction as a result of which the FPC Shareholders and the
Trusts and their respective Affiliate Transferees shall own, in the aggregate,
less than a majority of the outstanding voting power of the entity surviving
such transaction, this Agreement shall terminate, except with respect to Section
4.4 and as contemplated by Section 7.1.2.

                  7.1.2 Notwithstanding anything in Section 7.1.1 to the
contrary, the provisions contained in Article V shall continue to remain in full
force and effect until the earlier to occur of the 20th anniversary of the date
of this Agreement and the date on which there are no longer any Registrable
Securities outstanding; provided, however, that the provisions of Section 5.3
shall survive termination pursuant to Section 7.1.1 or this Section 7.1.2
indefinitely.

                                  ARTICLE VIII

                                  MISCELLANEOUS

                  Section 8.1 Notices. All notices, requests and other
communications to any party in connection with this Agreement shall be in
writing and delivered personally, sent by documented overnight delivery service
shall be given,

                  if to any FPC Shareholder, to:

                           U.N. Holdings (Cayman), Ltd.

                                      -25-
<PAGE>
                           c/o Fox Paine & Company, LLC
                           950 Tower Lane, Suite 1150
                           Foster City, California  94404
                           Attention:  Saul A. Fox

                  with a copy to:

                           Wachtell, Lipton, Rosen & Katz
                           51 West 52nd Street
                           New York, New York  10019
                           Attention:   Elliott V. Stein
                                        Mitchell S. Presser

                  if to the Company, to:

                           United National Group, Ltd.
                           Walker House, 87 Mary Street
                           P.O. Box 908GT
                           George Town, Grand Cayman
                           Cayman Islands
                           Attention:  Chief Executive Officer

                  with a copy to:

                           Wachtell, Lipton, Rosen & Katz
                           51 West 52nd Street
                           New York, New York  10019
                           Attention:   Elliott V. Stein
                                        Mitchell S. Presser

                  if to any Trust, to:

                           c/o The AMC Group, L.P.
                           555 Croton Road, Suite 300
                           King of Prussia, Pennsylvania  19406
                           Attention:  General Counsel

                  with a copy to:

                           Drinker Biddle & Reath LLP
                           One Logan Square
                           18th and Cherry Streets
                           Philadelphia, Pennsylvania  19103
                           Attention:   Robert C. Juelke

                                      -26-
<PAGE>
All such notices, requests and other communications shall be deemed received on
the date of receipt by the recipient if received prior to 5 p.m. in the place of
receipt and such day is a business day in the place of receipt. Otherwise, any
such notice, request or communication shall be deemed not to have been received
until the next succeeding business day in the place of receipt.

                  Section 8.2 Amendment; Waivers.

                  8.2.1 This Agreement may not be amended or supplemented,
except by an instrument in writing signed by the Company, by the FPC
Shareholders and by Trusts holding a majority of the then outstanding Shares
held by all of the Trusts. The foregoing notwithstanding, the Company, without
the consent of any other party, may enter into Joinder Agreements in order to
add any Person that becomes a holder of Shares and to reflect Transfers
permitted under this Agreement.

                  8.2.2 No failure or delay by any party in exercising any
right, power or privilege under this Agreement shall operate as a waiver thereof
nor shall any single or partial exercise thereof preclude any other or further
exercise thereof or the exercise of any other right, power or privilege under
this Agreement. The rights and remedies provided in this Agreement shall be
cumulative and not exclusive of any rights or remedies provided by law.

                  Section 8.3 Successors and Assigns. The provisions of this
Agreement shall be binding upon and inure to the benefit of the parties and
their respective successors and assigns. If any Shareholder or any Transferee of
any Shareholder shall acquire any Shares in any manner, whether by operation of
law or otherwise, such Shares shall be held subject to all of the terms of this
Agreement, and, by taking and holding such Shares, such Transferee shall be
conclusively deemed to have agreed to be bound by and to perform all of the
terms and provisions of this Agreement.

                  Section 8.4 Recapitalizations and Exchanges Affecting Shares.
Except as contemplated by Section 7.1.1, the provisions of this Agreement shall
apply, to the full extent set forth herein with respect to Shares, to any and
all other share capital of the Company or any successor or assign of the Company
(whether by merger, consolidation, sale of assets or otherwise) that may be
issued in respect of, in exchange for, or in substitution of, Shares, or that
may be issued by reason of any share dividend, share split, reverse share split,
combination, recapitalization, reclassification, merger, consolidation,
reorganization or otherwise. Upon the occurrence of any of such events, numbers
of Shares and amounts under this Agreement and any other appropriate terms shall
be appropriately adjusted, as determined in good faith by the Board.

                  Section 8.5 Governing Law. This Agreement shall be governed by
and construed in accordance with the internal laws of the State of Delaware
applicable to contracts made and wholly-performed within such state, without
regard to the conflicts of law principles of such state.

                                      -27-
<PAGE>
                  Section 8.6 Jurisdiction. Except as otherwise set forth in
this Agreement, any suit, action or other proceeding ("Action") seeking to
enforce any provision of, or based on any matter arising out of or in connection
with, this Agreement shall be brought in the United States District Court for
the District of Delaware or any Delaware State court, so long as one of such
courts shall have subject matter jurisdiction over such Action, and each of the
parties irrevocably consents to the jurisdiction of such courts (and of the
appropriate appellate courts therefrom) in any such Action and irrevocably
waives, to the fullest extent permitted by law, any objection that it may now or
hereafter have to the laying of the venue of any such Action in any such court
or that any such Action that is brought in any such court has been brought in an
inconvenient forum. Process in any such Action may be served on any party
anywhere in the world, whether within or without the jurisdiction of any such
court. Without limiting the foregoing, each party agrees that service of process
on such party as provided in Section 8.1 shall be deemed effective service of
process on such party.

                  Section 8.7 WAIVER OF JURY TRIAL. EACH PARTY IRREVOCABLY
WAIVES ANY RIGHT TO TRIAL BY JURY IN ANY ACTION ARISING OUT OF OR RELATED TO
THIS AGREEMENT.

                  Section 8.8 Counterparts; Third Party Beneficiaries. This
Agreement may be signed in any number of counterparts, each of which shall be an
original, with the same effect as if such signatures were upon the same
instrument. A facsimile or photocopied signature (which may be delivered by
facsimile) shall be deemed to be the functional equivalent of an original for
all purposes. This Agreement shall become effective when each party shall have
received a counterpart of this Agreement signed by the other party. No provision
of this Agreement is intended to confer and shall not confer upon any Person
other than the parties any rights or remedies.

                  Section 8.9 Entire Agreement. This Agreement constitutes the
entire agreement among the parties with respect to the subject matter of this
Agreement and supersedes all prior agreements and understandings, both oral and
written, among the parties with respect to the subject matter of this Agreement,
including the letter of intent dated as of March 8, 2003 by and between Fox
Paine and the Company.

                  Section 8.10 Captions. The captions are included in this
Agreement for convenience of reference only and shall be ignored in the
construction or interpretation of this Agreement. All references to Sections or
Articles contained in this Agreement shall be to Sections or Articles of this
Agreement unless otherwise stated.

                  Section 8.11 Specific Performance. The parties acknowledge and
agree that irreparable damage would occur if any party fails to perform in
accordance with the terms of this Agreement and that the parties shall be
entitled to specific performance in such event, in addition to any other remedy
at law or in equity.

                  Section 8.12 Severability. If this Agreement, or any of its
provisions, or the performance of any provision, is found to be illegal or
unenforceable, the parties shall be

                                      -28-
<PAGE>
excused from the performance of such portions of this Agreement as shall be
found to be illegal or unenforceable without affecting the validity of the
remaining provisions of this Agreement; provided, however, that the remaining
provisions of this Agreement shall in their totality constitute a commercially
reasonable agreement.

                  Section 8.13 Trustees. All actions under or pursuant to this
Agreement by the Trustees are in their respective capacities as trustees under
the Trusts and not as individuals.

                  Section 8.14 Uncertificated Shares. Notwithstanding anything
herein to the contrary, the parties hereby acknowledge that the Shares issued in
the Transactions are intended to be uncertificated (the "Book Entry Shares") and
such issuance will be recorded on the Company's Register of Members. With
respect to the Book Entry Shares, the provisions of the Agreement regarding
share certificates shall be deemed modified as necessary to effect the
intentions of the parties. Following the Transfer of any Book Entry Shares in
accordance with the terms of this Agreement, the Shareholders shall take all
necessary steps to ensure that the directors of the Company update the Company's
Register of Members to reflect such Transfer of Book Entry Shares. Within a
reasonable time after any Transfer of such Book Entry Shares, the Company shall
send to the new registered owner of such Book Entry Shares a written notice
containing the information required pursuant to the terms of this Agreement to
be set forth or stated on share certificates.

                            [Signature pages follow]

                                      -29-
<PAGE>
                  IN WITNESS WHEREOF, the parties have caused this Agreement to
be duly executed by their respective authorized officers or trustees as of the
day and year first above written.

                                        UNITED NATIONAL GROUP, LTD.

                                        By:
                                               ---------------------------------
                                               Name:
                                               Title:

                                        U.N. HOLDINGS (CAYMAN), LTD.

                                        By:
                                               ---------------------------------
                                               Name:
                                               Title:

                                        U.N. CO-INVESTMENT FUND I (CAYMAN), L.P.

                                               By:  Fox Paine Capital
                                                    Co-Investors International
                                                    GP, Ltd., its General
                                                    Partner

                                                    By:
                                                          ----------------------
                                                          Name:
                                                          Title:

                                        U.N. CO-INVESTMENT FUND II (CAYMAN),
                                        L.P.

                                               By:  Fox Paine Capital
                                                    Co-Investors International
                                                    GP, Ltd., its General
                                                    Partner

                                                    By:
                                                          ----------------------
                                                          Name:
                                                          Title:

                                        U.N. CO-INVESTMENT FUND III (CAYMAN),
                                        L.P.

                                               By:  Fox Paine Capital
                                                    Co-Investors International
                                                    GP, Ltd., its General
                                                    Partner

                                                    By:
                                                          ----------------------
                                                          Name:
                                                          Title:

         [SIGNATURE PAGE TO AMENDED AND RESTATED SHAREHOLDERS AGREEMENT]
<PAGE>
                                        U.N. CO-INVESTMENT FUND IV (CAYMAN),
                                        L.P.

                                               By:  Fox Paine Capital
                                                    Co-Investors International
                                                    GP, Ltd., its General
                                                    Partner

                                               By:
                                                    ----------------------------
                                                    Name:
                                                    Title:

                                        U.N. CO-INVESTMENT FUND V (CAYMAN), L.P.

                                               By:  Fox Paine Capital
                                                    Co-Investors International
                                                    GP, Ltd., its General
                                                    Partner

                                                    By:
                                                          ----------------------
                                                          Name:
                                                          Title:

                                        U.N. CO-INVESTMENT FUND VI (CAYMAN),
                                        L.P.

                                               By:  Fox Paine Capital
                                                    Co-Investors International
                                                    GP, Ltd., its General
                                                    Partner

                                                    By:
                                                          ----------------------
                                                          Name:
                                                          Title:

                                        U.N. CO-INVESTMENT FUND VII (CAYMAN),
                                        L.P.

                                               By:  Fox Paine Capital
                                                    Co-Investors International
                                                    GP, Ltd., its General
                                                    Partner

                                                    By:
                                                          ----------------------
                                                          Name:
                                                          Title:

         [SIGNATURE PAGE TO AMENDED AND RESTATED SHAREHOLDERS AGREEMENT]
<PAGE>
                                        U.N. CO-INVESTMENT FUND VIII (CAYMAN),
                                        L.P.

                                               By:  Fox Paine Capital
                                                    Co-Investors International
                                                    GP, Ltd, its General Partner

                                                    By:
                                                          ----------------------
                                                          Name:
                                                          Title:

                                        U.N. CO-INVESTMENT FUND IX (CAYMAN),
                                        L.P.

                                               By:  Fox Paine Capital
                                                    Co-Investors International
                                                    GP, Ltd., its General
                                                    Partner

                                                    By:
                                                          ----------------------
                                                          Name:
                                                          Title:

                                        RUSSELL C. BALL, III, ANDREW L. BALL,
                                        PNC BANK, N.A., TRUSTEES U/W OF RUSSELL
                                        C. BALL, SR., AS APPOINTED BY RUSSELL C.
                                        BALL, JR. F/B/O
                                        RUSSELL C. BALL, III

                                        By:
                                               ---------------------------------
                                               Name:    Russell C. Ball, III
                                               Title:   Trustee

                                        RUSSELL C. BALL, III, ANDREW L. BALL,
                                        PNC BANK, N.A., TRUSTEES U/W OF RUSSELL
                                        C. BALL, SR., AS APPOINTED BY RUSSELL C.
                                        BALL, JR. F/B/O
                                        ANDREW L. BALL

                                        By:
                                               ---------------------------------
                                               Name:    Russell C. Ball, III
                                               Title:   Trustee

         [SIGNATURE PAGE TO AMENDED AND RESTATED SHAREHOLDERS AGREEMENT]
<PAGE>
                                        RUSSELL C. BALL, III, ANDREW L. BALL,
                                        PNC BANK, N.A., TRUSTEES U/A/T OF ETHEL
                                        M. BALL; DATED 2/9/67, AS APPOINTED BY
                                        RUSSELL C. BALL, JR.
                                        F/B/O RUSSELL C. BALL, III

                                        By:
                                               ---------------------------------
                                               Name:    Russell C. Ball, III
                                               Title:   Trustee

                                        RUSSELL C. BALL, III, ANDREW L. BALL,
                                        PNC BANK, N.A., TRUSTEES U/A/T OF ETHEL
                                        M. BALL; DATED 2/9/67, AS APPOINTED BY
                                        RUSSELL C. BALL, JR.
                                        F/B/O ANDREW L. BALL

                                        By:
                                               ---------------------------------
                                               Name:    Russell C. Ball, III
                                               Title:   Trustee

                                        RUSSELL C. BALL, III, ANDREW L. BALL,
                                        PNC BANK, N.A., TRUSTEES U/A/T OF
                                        RUSSELL C. BALL, JR.;
                                        DATED 11/9/67

                                        By:
                                               ---------------------------------
                                               Name:    Russell C. Ball, III
                                               Title:   Trustee

                                        RUSSELL C. BALL, III, ANDREW L. BALL,
                                        PNC BANK, N.A., TRUSTEES U/A/T OF
                                        RUSSELL C. BALL, JR.;
                                        DATED 6/9/69

                                        By:
                                               ---------------------------------
                                               Name:    Russell C. Ball, III
                                               Title:   Trustee

         [SIGNATURE PAGE TO AMENDED AND RESTATED SHAREHOLDERS AGREEMENT]
<PAGE>
                                        RUSSELL C. BALL, III, ANDREW L. BALL,
                                        PNC BANK, N.A., TRUSTEES U/A/T OF
                                        RUSSELL C. BALL, JR.;
                                        DATED 1/29/70

                                        By:
                                               ---------------------------------
                                               Name:    Russell C. Ball, III
                                               Title:   Trustee

                                        RUSSELL C. BALL, III, ANDREW L. BALL,
                                        PNC BANK, N.A., TRUSTEES U/A/T OF
                                        RUSSELL C. BALL, JR.;
                                        DATED 1/24/73

                                        By:
                                               ---------------------------------
                                               Name:    Russell C. Ball, III
                                               Title:   Trustee

                                        RUSSELL C. BALL, III, ANDREW L. BALL,
                                        PNC BANK, N.A., TRUSTEES U/A/T OF
                                        RUSSELL C. BALL, JR.; DATED 12/22/76
                                        F/B/O RUSSELL C. BALL, III

                                        By:
                                               ---------------------------------
                                               Name:    Russell C. Ball, III
                                               Title:   Trustee

                                        RUSSELL C. BALL, III, ANDREW L. BALL,
                                        PNC BANK, N.A., TRUSTEES U/A/T OF
                                        RUSSELL C. BALL, JR.; DATED 12/22/76
                                        F/B/O ANDREW L. BALL

                                        By:
                                               ---------------------------------
                                               Name:    Russell C. Ball, III
                                               Title:   Trustee

         [SIGNATURE PAGE TO AMENDED AND RESTATED SHAREHOLDERS AGREEMENT]<PAGE>
                                                                    Exhibit 10.4

                           UNITED NATIONAL GROUP, LTD.
                              SHARE INCENTIVE PLAN

SECTION 1. PURPOSE; DEFINITIONS

            The purpose of the Plan is to give United National Group, Ltd., a
Cayman Islands exempted company formed with limited liability whose office is
located c/o Walkers SPV Limited, Walker House, P.O. Box 908GT, Grand Cayman,
Cayman Islands (the "Company"), and its Affiliates (as defined below) a
competitive advantage in attracting, retaining and motivating officers,
employees, consultants and non-employee directors, and to provide the Company
and its Affiliates with a stock plan providing incentives linked to the
financial results of the Company's businesses and increases in shareholder
value.

            For purposes of the Plan, the following terms are defined as set
forth below:

            "Affiliate" of a Person means a Person, directly or indirectly,
controlled by, controlling or under common control with such Person and with
respect to the Company, includes without limitation its Subsidiaries and its
Parent.

            "Award" means any award under this Plan of any Stock Option,
Restricted Stock, or Other Stock-Based Award.

            "Award Agreement" means a Restricted Stock Agreement or an Option
Agreement. An Award Agreement may include provisions included in an employment
or consulting agreement of the Company or any of its Affiliates.

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

            "California Participant" means, in the case of individuals, any
Participant residing in California or working primarily in the California
offices of the Company or an Affiliate of the Company, or, in the case of an
entity, any Participant having its principal place of business in California.

            "Cause" means, unless otherwise provided in the Participant's
employment or consulting agreement with the Company or any of its Affiliates,
that (i) the Participant is charged with or has committed a felony or other
crime involving moral turpitude or conduct adverse to the interests of the
Company, (ii) the Participant commits fraud, embezzlement or other conduct
adverse to the interests of the Company or its Affiliates, (iii) the Participant
substantially fails to perform his duties or obligations to the Company or its
Affiliates, provided that he has been given notice and an opportunity to cure
not to exceed thirty (30) days under circumstances in which the Board
determines, in its sole discretion, that such failure to perform is in fact
curable, or (iv) the Participant violates Company policies or policies of its
Affiliates or materially breaches any representation made to the Company or its
Affiliates.
<PAGE>
            "Code" means the Internal Revenue Code of 1986, as amended from time
to time, and any successor thereto.

            "Committee" means (a) (i) before an IPO or date any class of common
equity securities of the Company are required to be registered under Section 12
of the Exchange Act (a "Registration Event"), a committee (or subcommittee) of
the Board that the Board may designate to administer or make decisions required
to be made under the Plan, and (ii) after a Registration Event, such committee
(or subcommittee) of the Board that the Board may designate to administer or
make decisions required to be made under the Plan, whose membership shall be
composed of not less than two Non-Employee Directors and, to the extent required
by Section 162(m) of the Code and any regulations thereunder, an "outside
director" as defined under Section 162(m) of the Code, each of whom shall be
appointed by and serve at the pleasure of the Board or (b) if at any time no
such committee of the Board is so designated by the Board, the Board.

            "Common Stock" means the Class A common shares, par value $0.0001
per share, of the Company having the rights, preferences and privileges set out
in the Company's Articles of Association, as amended from time to time.

            "Company" has the meaning set forth in the preamble hereto and any
successors by operation of law.

            "Disability" means permanent and total disability as defined in
Section 22(e)(3) of the Code. A Disability shall only be deemed to occur at the
time of the determination by the Committee of the Disability.

            "Employment" means, unless otherwise defined in an applicable Award
Agreement or employment or consulting agreement, employment with, or service as
a director or officer of, or as a consultant to, the Company or any of its
Affiliates.

            "Exchange Act" means the Securities Exchange Act of 1934, as amended
from time to time, and any successor thereto.

            "Exercise Price" has the meaning set forth in Section 5(a).

            "Fair Market Value" of the Common Stock means (unless otherwise
provided in the applicable Award Agreement), as of any given date, the closing
price on the applicable date of the Common Stock on the New York Stock Exchange,
Inc. or, if not listed on such exchange, on any other national securities
exchange on which the Common Stock is listed or, if not so listed, on The Nasdaq
Stock Market, Inc. and, if not so quoted, the average of the closing bid and ask
prices for the Common Stock in the over-the-counter market on which the Common
Stock is actively traded. If such sales prices are not so available or the
Common Stock is not actively traded, as determined by the Committee in its sole
discretion, the Fair Market Value of the Common Stock shall mean the fair value
as determined by the Committee in light of all circumstances, including
comparable recent bona fide sales of applicable or similar securities. For
purposes of the grant of any Stock Option, the applicable date shall be the date
on which the Stock Option is granted.

                                       2
<PAGE>
            "Family Member" means, solely to the extent provided for in Rule 701
under the Securities Act or, following the filing of a Securities Act Form S-8
with respect to the Plan, solely to the extent provided for in Securities Act
Form S-8, any child, stepchild, grandchild, parent, stepparent, grandparent,
spouse, former spouse, sibling, niece, nephew, mother-in-law, father-in-law,
son-in-law, daughter-in-law, brother-in-law, or sister-in-law, including
adoptive relationships, any person sharing the employee's household (other than
a tenant or employee), a trust in which these persons have more than fifty
percent (50%) of the beneficial interest, a foundation in which these persons
(or the employee) control the management of assets, and any other entity in
which these persons (or the employee) own more than fifty percent (50%) of the
voting interests or as otherwise defined in Rule 701 under the Securities Act or
Securities Act Form S-8, as applicable.

            "FPC" means Fox Paine & Company, LLC, its subsidiaries and related
entities (including without limitation Fox Paine Capital, LLC, Fox Paine Capital
Fund, L.P., Fox Paine Capital Fund II GP, LLC, Fox Paine Capital Fund II L.P.,
Fox Paine Capital Fund II International, L.P., Fox Paine Capital Fund II
Co-Investors International, L.P.), and all Persons that are partners or
shareholders or members in any such related entities) and all partners, members,
directors, employees, shareholders and agents of any of the foregoing.

            "Incentive Stock Option" means a Stock Option intended to qualify as
an incentive stock option within the meaning of Section 422 of the Code.

            "IPO" means the consummation of a registered underwritten public
offering or offerings of Common Stock or other equity security of the Company
after the date hereof with gross proceeds to the Company in the aggregate of at
least $60 million.

            "Management Shareholders' Agreement" means the Management
Shareholders' Agreement, dated as of September 5, 2003, among the Company the
FPC Stockholder and the Management Investors, as defined therein, as amended
from time to time.

            "Non-Employee Director" means a member of the Board who qualifies as
a Non-Employee Director (as defined in Rule 16b-3(b)(3) as promulgated by the
SEC under the Exchange Act, or any successor definition adopted by the SEC).

            "Nonstatutory Stock Option" means a Stock Option not intended to
qualify as an Incentive Stock Option.

            "Option Agreement" means an agreement setting forth the terms and
conditions of a Stock Option Award.

            "Other Stock-Based Award" means any Award granted under Section 7.

            "Parent" means any parent corporation of the Company within the
meaning of Section 424(e) of the Code.

            "Participant" has the meaning set forth in Section 4.

            "Performance Criteria" has the meaning set forth in Exhibit A.

                                       3
<PAGE>
            "Performance Goal" means the objective performance goals established
by the Committee and, if desirable for purposes of Section 162(m) of the Code,
based on one or more Performance Criteria.

            "Performance Period" means three consecutive fiscal years of the
Company, or such shorter period as determined by the Committee in its
discretion.

            "Person" means an individual, corporation, partnership, limited
liability company, joint venture, trust, unincorporated organization, government
(or any department or agency thereof) or other entity.

            "Plan" means the U.N. Holdings, Inc. Stock Incentive Plan, as set
forth herein and as hereinafter amended from time to time.

            "Plan Shares" has the meaning set forth in Section 10(a).

            "Restricted Stock" means an Award of Common Stock granted under
Section 6.

            "Restricted Stock Purchase Agreement" means an agreement setting
forth the terms and conditions of an Award of Restricted Stock.

            "Retirement" means a Participant's Termination of Employment without
Cause at or after age fifty-five (55).

            "SEC" means the Securities and Exchange Commission or any successor
agency.

            "Securities Act" means the Securities Act of 1933, as amended from
time to time, and any successor thereto.

            "Stock Award" means an Award consisting of either shares of Common
Stock or a right to receive shares of Common Stock in the future, each pursuant
to Section 6 of the Plan.

            "Stock Option" means any Nonstatutory Stock Option or Incentive
Stock Option.

            "Subsidiary" means any subsidiary corporation of the Company within
the meaning of Section 424(f) of the Code.

            "Termination of Employment" means (i) a termination of service (for
reasons other than a military or personal leave of absence granted by the
Company) of a Participant from the Company or an Affiliate, unless the
Participant thereupon becomes employed by the Company or another affiliate.

            In addition, certain other terms used herein have definitions
otherwise ascribed to them herein.

SECTION 2. ADMINISTRATION

            This Plan shall be administered by the Committee.

                                       4
<PAGE>
            Among other things, the Committee shall have the authority, subject
to the terms of the Plan, to:

            (a) select the Participants to whom Awards may from time to time be
granted and designate the Affiliates of the Company for purposes of the Plan;

            (b) determine whether and to what extent Awards are to be granted
hereunder;

            (c) determine the number of shares of Common Stock to be covered by
each Award granted hereunder;

            (d) determine the terms and conditions of any Award granted
hereunder (including, but not limited to, the Exercise Price (subject to Section
5(a)), any vesting conditions, restrictions or limitations (which may be related
to the performance of the Participant, the Company or any of its Affiliates))
and any acceleration of vesting or waiver or cancellation regarding any Award
and the shares of Common Stock relating thereto, based on such factors as the
Committee shall determine;

            (e) subject to Section 8 hereof, modify, amend or adjust the terms
and conditions of any Award, at any time or from time to time; provided,
however, that the Committee may not, without shareholder approval, either (1)
reduce the Exercise Price of an outstanding Stock Option or Other Stock Based
Award or (2) simultaneously cancel Stock Options for which the Exercise Price
exceeds the then current Fair Market Value of the underlying Common Stock and
grant a new Award with an Exercise Price equal to the then current Fair Market
Value of the underlying Common Stock.

            (f) determine to what extent and under what circumstances Common
Stock and other amounts payable with respect to an Award shall be deferred;

            (g) adopt, alter and repeal such administrative rules, guidelines
and practices governing the Plan as it shall from time to time deem advisable;

            (h) interpret the terms and provisions of the Plan and any Award
issued under the Plan (and any agreement, including, but not limited to, an
Award Agreement relating thereto);

            (i) adopt any sub-plans applicable to residents of any specified
jurisdiction as it deems necessary or appropriate in order to comply with or
take advantage of any tax laws or other laws applicable to the Company, its
Affiliates, or to Participants or to otherwise facilitate the administration of
the Plan, which sub-plans may include additional restrictions or conditions
applicable to Awards or Plan Shares acquired upon exercise of Awards; and

            (j) otherwise supervise and administer of the Plan.

            The Committee may act only by a majority of its members then serving
thereon, except that, if permissible under applicable law, the Committee may
designate or allocate all or any portion of its responsibilities and powers to
any one or more of their number or any officer of the Company. Any such
designation or allocation may be revoked by the Committee at any time.

                                       5
<PAGE>
            Any dispute or disagreement which may arise under, or as a result
of, or in any way relate to, the interpretation, construction or application of
the Plan or an Award (or related Award Agreement) granted hereunder shall be
determined and resolved by the Committee. Any determination or resolution made
by the Committee pursuant to the provisions of the Plan with respect to the
Plan, any Award or Award Agreement shall be made in the sole discretion of the
Committee and, with respect to an Award, at the time of the grant of the Award
or, unless in contravention of any express term of the Plan or the Award
Agreement, at any time thereafter. Except as otherwise set forth herein or in
any Award Agreement, all decisions made by the Committee in accordance with the
terms of this Plan or the Award Agreements shall be final, conclusive and
binding on all Persons, including the Company, its Affiliates and the
Participants.

            To the maximum extent permitted by applicable law and the Articles
of Association of the Company and to the extent not covered by insurance
directly insuring such person, each officer and member or former member of the
Committee or the Board shall be indemnified and held harmless by the Company
against any cost or expense (including reasonable fees and expenses of counsel
reasonably acceptable to the Committee) or liability (including any sum paid in
settlement of a claim with the approval of the Committee), and advanced amounts
necessary to pay the foregoing at the earliest time and to the fullest extent
permitted, arising out of any act or omission to act in connection with the
administration of this Plan, except to the extent arising out of such officer's,
member's or former member's own fraud or bad faith. Such indemnification shall
be in addition to any rights of indemnification the employees, officers,
directors or members or former officers, directors or members may have under
applicable law or under the Articles of Association of the Company or any
Affiliate. Notwithstanding anything else herein, this indemnification will not
apply to the actions or determinations made by an individual with regard to
Awards granted to him or her under this Plan.

SECTION 3. COMMON STOCK SUBJECT TO PLAN

            The total number of shares of Common Stock reserved and available
for grant under the Plan shall be 2,000,000 (subject to any increase or decrease
pursuant to this Section 3). Shares subject to an Award under the Plan may be
authorized and unissued shares of Common Stock or Common Stock held in or
acquired for the treasury of the Company or both.

            If any shares of Restricted Stock or Other Stock-Based Awards are
cancelled or if any Stock Option terminates without being exercised, the shares
subject to such Awards shall again be available for distribution in connection
with Awards under the Plan. In addition, in determining the number of shares of
Common Stock available for Awards other than Incentive Stock Options, if Common
Stock has been delivered or exchanged by a Participant as full or partial
payment to the Company for payment of the exercise price, or for payment of
withholding taxes, or if the number shares of Common Stock otherwise deliverable
has been reduced for payment of the exercise price or for payment of withholding
taxes, the number of shares of Common Stock exchanged or reduced as payment in
connection with the exercise or for withholding shall again be available for
purposes of Awards other than Incentive Stock Options under this Plan.

            The total number of shares of Common Stock subject to any Stock
Option which may be granted under this Plan to each Participant on and after a
Registration Event shall not exceed

                                       6
<PAGE>
800,000 shares (subject to any increase or decrease pursuant to this Section 3)
during each fiscal year of the Company. The individual Participant limitations
set forth in this Section 3 shall be cumulative; that is, to the extent that
shares of Common Stock for which Options are permitted to be granted to a
Participant pursuant to this Section during a fiscal year of the Company are not
covered by a grant of an Option in the Company's fiscal year, such shares of
Common Stock available for grants to such Participant automatically increase in
the subsequent fiscal years during the term of the Plan until used.

            No individual may be granted in any fiscal year of the Company Other
Stock-Based Awards that are contingent upon the attainment of Performance Goals
covering more than 400,000 Shares (as such number may be adjusted from time to
time).

            In the event any merger, reorganization, consolidation,
recapitalization, spin-off, stock dividend, share split, reverse share split,
extraordinary distribution with respect to the Common Stock, any sale or
transfer of all or part of the Company's assets or business or other change in
corporate structure affecting the Common Stock occurs or is proposed, the
Committee or the Board may make such substitution or adjustment in the aggregate
number and kind of shares or other property reserved for issuance under the Plan
or any limitations under the Plan, in the number, kind and Exercise Price (as
defined herein) of shares or other property subject to outstanding Stock
Options, in the number and kind of shares or other property subject to
Restricted Stock Awards or other Awards, and/or such other substitution or
adjustments as the Committee or the Board may determine to be fair and
appropriate in its sole discretion, provided that, in no case shall such
determination adversely affect in any material respect the rights of a
Participant hereunder or under any Award Agreement or the value of the Awards
then held thereunder. In connection with any event described in this paragraph,
the Committee may provide, in its sole discretion, for the cancellation of any
outstanding Stock Option and payment in cash or other property in exchange
therefor.

            In the event of a merger or consolidation in which the Company is
not the surviving entity or in the event of any transaction that results in the
acquisition of substantially all of the Company's outstanding Common Stock by a
single person or entity or by a group of persons and/or entities acting in
concert, or in the event of the sale or transfer of all or substantially all of
the Company's assets (all of the foregoing being referred to as "Acquisition
Events"), then the Committee may, in its sole discretion, terminate all
outstanding Stock Options, effective as of the date of the Acquisition Event, by
delivering notice of termination to each Participant at least 20 days prior to
the date of consummation of the Acquisition Event, in which case during the
period from the date on which such notice of termination is delivered to the
consummation of the Acquisition Event, each such Participant shall have the
right to exercise in full all of his or her Stock Options that are then
outstanding (without regard to any limitations on exercisability otherwise
contained in the Stock Option agreements), but any such exercise shall be
contingent upon and subject to the occurrence of the Acquisition Event, and,
provided that, if the Acquisition Event does not take place within a specified
period after giving such notice for any reason whatsoever, the notice and
exercise pursuant thereto shall be null and void.

                                       7
<PAGE>
SECTION 4. PARTICIPANTS

            The following persons shall be "Participants" eligible to be granted
Awards under the Plan: (i) Persons who are officers, directors, employees or
consultants of the Company and/or any of its Affiliates; (ii) Persons who at the
time of grant may be performing (or subject to being required to perform)
services for the Company or any of its Affiliates (including, without
limitation, officers, directors, employees, Affiliates and consultants of FPC);
and (iii) Non-Employee Directors of the Company and its Affiliates who are
responsible for or contribute to the management, growth and profitability of the
business of the Company and its Affiliates. However, Incentive Stock Options may
be granted only to employees of the Company its Subsidiaries or its Parent.

SECTION 5. STOCK OPTIONS

            The Committee shall have the authority to grant to Participants
Stock Options. Stock Options shall be evidenced by Option Agreements, which
shall include such terms and provisions as the Committee may determine from time
to time. The grant of a Stock Option shall occur on the date the Committee by
resolution selects an individual to receive a grant of a Stock Option,
determines the number of shares of Common Stock to be subject to such Stock
Option to be granted to such individual and specifies the terms and provisions
of the Stock Option, or on such other date as the Committee may determine. The
Company shall notify a Participant of any grant of a Stock Option, and a written
Option Agreement shall be duly executed and delivered by the Company to the
Participant. Such Option Agreement shall become effective upon execution and
delivery by the Participant to the Company.

            Stock Options shall be subject to the following terms and
conditions, and shall contain such additional terms and conditions as the
Committee shall deem desirable:

            (a) Exercise Price. The price per share of Common Stock purchasable
under a Stock Option shall be such price as determined by the Committee and set
forth in the Option Agreement (the "Exercise Price"); provided that the Exercise
Price shall not be less than the nominal or par value of the Common Stock, and:

                  (i) in the case of an Incentive Stock Option

                        (A) granted to an employee of the Company, its
Subsidiaries or its Parent who, at the time of the grant of such Incentive Stock
Option, owns shares representing more than ten percent (10%) of the voting power
of all share classes of the Company or its Subsidiaries or its Parent (a "Ten
Percent Shareholder"), the per share Exercise Price shall be no less than one
hundred ten percent (110%) of the Fair Market Value per share on the date of
grant; and

                        (B) granted to any employee of the Company, its
Subsidiaries or its Parent other than a Ten Percent Shareholder, the per share
Exercise Price shall be no less than one hundred percent (100%) of the Fair
Market Value per share on the date of grant.

                  (ii) in the case of a Nonstatutory Stock Option, granted to a
California Participant

                                       8
<PAGE>
                        (A) who is a Ten Percent Shareholder, the per share
Exercise Price shall be no less than one hundred ten percent (110%) of the Fair
Market Value per share on the date of the grant; and

                        (B) who is not a Ten Percent Shareholder, the per share
Exercise Price shall be no less than eighty-five percent (85%) of the Fair
Market Value per share on the date of grant.

                  (iii) in the case of any other Stock Option granted, the per
share Exercise Price as determined by the Committee.

      (b) Option Term. The term of each Stock Option shall be fixed by the
Committee provided, however, that no Stock Option shall be exercisable more than
ten (10) years after the date such Stock Option is granted. Absent any such term
being fixed by the Committee, pursuant to an Option Agreement or otherwise, such
term shall be ten (10) years; provided, however, that the term of an Incentive
Stock Option granted to a Ten Percent Shareholder shall not exceed five (5)
years.

      (c) Exercisability. Except as otherwise provided herein, Stock Options
shall be exercisable at such time or times and subject to such terms and
conditions as shall be determined by the Committee; provided that Stock Options
granted to California Participants (other than an officer, director, manager or
consultant) shall become exercisable at a rate of no less than twenty percent
(20%) per year over five (5) years from the date the Stock Options are granted.
If the Committee provides that any Stock Option is exercisable only in
installments, the Committee may at any time waive such installment exercise
provisions, in whole or in part, based on such factors as the Committee may
determine. In addition, the Committee may at any time accelerate the
exercisability of any Stock Option.

      (d) Method of Exercise. Subject to the provisions of this Section 5,
vested Stock Options may be exercised, in whole or in part, at any time during
the option term by giving written notice of exercise to the Company specifying
the number of shares of Common Stock subject to the Stock Option to be
purchased.

      Such notice shall be accompanied by payment in full of the Exercise Price
per share by certified or bank check or such other instrument or method of
payment as the Committee may accept. Unless determined otherwise by the
Committee at the time of grant and set forth in the Option Agreement, payment,
in full or in part, may also be made in the form of fully vested Common Stock
(other than Restricted Stock) already owned by the Participant (for at least six
months or such other period necessary to avoid a charge, for accounting
purposes, against the Company's earnings as reported in the Company's financial
statements if acquired upon exercise of a Stock Option or received upon the
lapse of restrictions on an Award of Restricted Stock) of the same class as the
Common Stock subject to the Stock Option (based on the Fair Market Value of the
Common Stock on the date the Stock Option is exercised) or, if the Common Stock,
is traded on a national securities exchange, The Nasdaq Stock Market, Inc. or
quoted on a national quotation system sponsored by the National Association of
Securities Dealers, and the Committee authorizes, to the extent permitted by
law, through a procedure whereby the

                                       9
<PAGE>
Participant delivers irrevocable instructions to a broker reasonably acceptable
to the Committee to deliver promptly to the Company an amount equal to the
purchase price.

      No shares of Common Stock shall be issued until full payment therefore has
been made. Except as otherwise provided in the Management Shareholders'
Agreement, if the Participant is a party to the Management Shareholders'
Agreement, and subject to Sections 10(b), 10(e) and 10(h) hereof and the
applicable Option Agreement, a Participant shall have all of the rights of a
shareholder of the Company holding the class or series of Common Stock that is
subject to such Stock Option (including, if applicable, the right to vote the
shares and the right to receive dividends and distributions), when the
Participant has given written notice of exercise, has paid in full for such
shares and, if requested, has given the representations referred to in Section
10(b) or as may otherwise be required in accordance with Sections 10(e) and
10(h).

      (e) Nontransferability of Stock Options. No Stock Option shall be
transferable by the Participant other than (i) by will or by the laws of descent
and distribution, or (ii) as otherwise expressly permitted under the applicable
Option Agreement, to a Family Member, subject to the restrictions in the
Management Shareholders' Agreement. All Stock Options granted to California
Participants shall not be transferable by such Participants except as permitted
by the California Code of Regulations Section 260.140.41(d). All Stock Options
granted to an individual shall be exercisable, subject to the terms of the Plan,
during the Participant's lifetime, only by the Participant or any Person to whom
such Stock Option is transferred pursuant to the preceding sentence, including
such Participant's guardian, legal representative and other transferee. The term
"Participant" includes the estate of the Participant or the legal representative
of the Participant named in the Option Agreement and any Person to whom an
Option is otherwise transferred in accordance with this Section 5(e), by will or
the laws of descent and distribution; provided, however, that references herein
to Employment of a Participant or termination of Employment of a Participant
shall continue to refer to the Employment or termination of Employment of the
applicable grantee of an Award hereunder.

      (f) Termination of Employment.

            (i) Termination for Any Reason (other than Cause). Except as
otherwise determined by the Committee and expressly provided in the applicable
Option Agreement or applicable employment or consulting agreement, upon the
termination of the Participant's Employment for any reason (other than Cause),
including death or Disability, vesting ceases, the term of unvested stock
options lapses and vested and unvested options will become unexercisable, except
that such Participant shall have ninety (90) days to exercise the portion of the
Participant's Stock Option that is vested on the date of the Participant's
termination of Employment. In no event shall the Committee grant a Stock Option
to a California Participant that provides the California Participant with less
than thirty (30) days after the date of such California Participant's
termination of Employment if such termination was caused by other than death,
Disability or Cause to exercise the Stock Option with respect to any vested
shares. Furthermore, in no event shall the Committee grant a Stock Option to a
California Participant that provides the California Participant with less than
six months after the California Participant's termination due to death or
Disability to exercise the Stock Option with respect to any vested shares.
Notwithstanding anything contained herein to the contrary, the Participant shall
not be permitted to exercise any Stock Option at a time beyond the initial
option term.

                                       10
<PAGE>
            (ii) Termination for Cause. All outstanding and unexercised Stock
Options, whether vested or unvested, as of the time the Participant is notified
that his or her Employment is terminated for Cause or at the time the
Participant voluntarily terminates employment within ninety (90) days after the
occurrence of an event that would be grounds for a termination for Cause, will
be cancelled immediately.

SECTION 6. RESTRICTED STOCK

      The Committee shall determine the Participants to whom and the time or
times at which grants of Restricted Stock will be awarded, the number of shares
to be awarded to any Participant, the purchase price, the conditions for
vesting, the time or times within which such Awards may be subject to
cancellation, repurchase and restrictions on transfer and any other terms and
conditions of the Awards (including provisions (i) relating to placing legends
on certificates representing shares of Restricted Stock, (ii) permitting the
Company to require that shares of Restricted Stock be held in custody by the
Company with a share transfer certificate from the owner thereof until
restrictions lapse and (iii) relating to any rights to repurchase Restricted
Stock on the part of the Company), in addition to those contained in the
Management Shareholders' Agreement, if the Participant is a party to the
Management Shareholders' Agreement. Each Participant receiving shares of
Restricted Stock shall be issued a stock certificate in respect of such shares
of Restricted Stock, unless the Committee elects to use another system, such as
book entries by the transfer agent, as evidencing ownership of shares of
Restricted Stock. Unless otherwise specified in the Restricted Stock Agreement,
upon a Participant's termination for any reason during the relevant restriction
period, all unvested Restricted Stock will be forfeited to the Company, without
compensation.

      Any right of the Company to repurchase shares of Restricted Stock from a
California Participant upon termination of Employment shall be at a repurchase
price that is at least equal to the lesser of (x) the Fair Market Value of such
stock on the date of termination of Employment (provided that such repurchase
right shall terminate as of the Registration Event) or (y) the original purchase
price, provided that in the case of (y) such repurchase right lapses at a rate
of no less than twenty percent (20%) of the shares per year over five years from
the date the Restricted Stock is granted; and provided that in the case of both
(x) and (y) such repurchase right is exercised within ninety (90) days of
termination of Employment. Furthermore, in addition to the foregoing
restrictions, Restricted Stock held by an officer, director or consultant of the
Company or one of its Affiliate may be subject to additional or greater
restrictions and any restrictions set forth in the Company's Articles of
Association. The terms and conditions of Restricted Stock Awards shall be set
forth in a Restricted Stock Agreement, which shall include such terms and
provisions as the Committee may determine from time to time, and which shall be
duly executed and delivered by the Company to the Participant and become
effective upon execution and delivery by the Participant to the Company. Except
as provided in this Section 6, the Restricted Stock Agreement, the Management
Shareholders' Agreement and any other relevant agreements, the Participant shall
have, with respect to the shares of Restricted Stock, all of the rights of a
shareholder of the Company holding the class or series of Common Stock that is
the subject of the Restricted Stock Award, including, if applicable, the right
to vote the shares and, subject to the following sentence, the right to receive
any cash dividends or distributions (but, subject to the third paragraph of
Section 3, not the right to receive non-cash dividends or distributions). If so
determined by the Committee in the applicable Restricted Stock Agreement,

                                       11
<PAGE>
cash dividends and distributions on the class or series of Common Stock that is
the subject of the Restricted Stock Award shall be automatically deferred and
reinvested in additional Restricted Stock, held subject to the vesting of the
underlying Restricted Stock, or held subject to meeting conditions applicable
only to dividends and distributions.

SECTION 7. OTHER STOCK-BASED AWARDS

      The Committee is authorized to grant to Participants Other Stock-Based
Awards that are payable in, valued in whole or in part by reference to, or
otherwise based on or related to shares of Common Stock, including but not
limited to, shares of Common Stock awarded purely as a bonus and not subject to
any restrictions or conditions, shares of Common Stock in payment of the amounts
due under an incentive or performance plan sponsored or maintained by the
Company or a Subsidiary, stock appreciation rights (either separately or in
tandem with Options), stock equivalent units, and Awards valued by reference to
book value of shares of Common Stock.

      Subject to the provisions of this Plan, the Committee shall have authority
to determine the persons to whom and the time or times at which such Awards
shall be made, the number of shares of Common Stock to be awarded pursuant to or
referenced by such Awards, and all other conditions of the Awards. Grants of
Other Stock-Based Awards may be subject to such conditions, restrictions and
contingencies as the Committee may determine which may include, but are not
limited to, continuous service with the Company or an Affiliate and/or the
achievement of Performance Goals. Except as provided in the last sentence of
this paragraph, the criteria that may be used by the Committee in granting Other
Stock-Based Awards contingent on Performance Goals shall consist of the
attainment of one or more of the Performance Goals. The Committee may select one
or more Performance Goals for measuring performance and the measuring may be
stated in absolute terms or relative to comparable companies. The measurements
used in Performance Goals set under the Plan shall be determined in accordance
with Generally Accepted Accounting Principles ("GAAP"), except, to the extent
that any objective Performance Goals are used, if any measurements require
deviation from GAAP, such deviation shall be at the discretion of the Committee
at the time the Performance Goals are set or at such later time to the extent
permitted under Section 162(m) of the Code. Other Performance Goals may be used
to the extent such goals satisfy Section 162(m) of the Code or the Other-Stock
Based Award is not intended to satisfy the requirements of Section 162(m) of the
Code.

      Other Stock-Based Awards made pursuant to this Section 7 are subject to
the following terms and conditions:

      (a) Dividends. Unless otherwise determined by the Committee at the time of
Award, subject to the provisions of the Award agreement and this Plan, the
recipient of an Award under this Section 7 shall be entitled to receive,
currently or on a deferred basis, dividends or dividend equivalents with respect
to the number of shares of Common Stock covered by the Award, as determined at
the time of the Award by the Committee, in its sole discretion.

      (b) Vesting. Any Award under this Section 7 and any Common Stock covered
by any such Award shall vest or be forfeited to the extent so provided in the
Award agreement, as determined by the Committee, in its sole discretion.

                                       12
<PAGE>
      (c) Waiver of Limitation. In the event of the Participant's Retirement,
Disability or death, or in cases of special circumstances, the Committee may, in
its sole discretion, waive in whole or in part any or all of the limitations
imposed hereunder (if any) with respect to any or all of an Award under this
Article.

      (d) Purchase Price. Common Stock issued on a bonus basis under this
Section 7 may be issued for no cash consideration; Common Stock purchased
pursuant to a purchase right awarded under this Section 7 shall be priced as
determined by the Committee.

      (e) Committee Certification. At the expiration of the Performance Period,
the Committee shall determine and certify in writing the extent to which the
Performance Goals have been achieved.

SECTION 8. TERM, AMENDMENT AND TERMINATION

      This Plan will expire on September 5, 2013, ten years from its adoption by
the Board. Awards outstanding as of such date shall not be affected or impaired
by the expiration of the Plan and shall be subject to the terms of the Plan.

      The Board or the Committee may at any time amend, suspend, or terminate
the Plan, prospectively or retroactively; provided, however, that, unless
otherwise required by law or specifically provided herein, no amendment,
suspension or termination shall be made that is adverse to the rights of a
Participant under an Award theretofore granted without such Participant's
consent; provided, further, without the approval of the shareholders of the
Company in accordance with the laws of the State of Delaware, to the extent
required by the applicable provisions of Rule 16b-3 or Section 162(m) of the
Code or the rules of any exchange or system on which the Common Stock is listed
or traded, or, with regard to Incentive Stock Options, Section 422 of the Code,
no amendment may be made which would (i) increase the aggregate number of shares
of Common Stock that may be issued under this Plan or the maximum individual
Participant limitations under Section 3; (ii) change the classification of
Participants eligible to receive Awards under this Plan; (iii) decrease the
minimum Exercise Price of any Stock Option; (iv) extend the maximum Stock Option
period or (v) require shareholder approval in order for the Plan to continue to
comply with the applicable provisions of Rule 16b-3 or Section 162(m) of the
Code, or, with regard to Incentive Stock Options, Section 422 of the Code.

      The Committee may amend the terms of any Award theretofore granted,
prospectively or retroactively, but no such amendment shall be made that is
adverse to the rights of the Participant thereunder without the Participant's
consent.

SECTION 9. UNFUNDED STATUS OF PLAN

      It is presently intended that the Plan constitute an "unfunded" plan for
incentive and deferred compensation. The Committee may authorize the creation of
trusts or other arrangements to meet the obligations created under the Plan to
deliver Common Stock or make payments; provided, however, that unless the
Committee otherwise determines, the existence of such trusts or other
arrangements is consistent with the "unfunded" status of the Plan.

                                       13
<PAGE>
SECTION 10. GENERAL PROVISIONS

      (a) Awards and Certificates. Shares of Restricted Stock and shares of
Common Stock issuable upon the exercise of a Stock Option (together, "Plan
Shares") shall be evidenced in such manner as the Committee may deem
appropriate, including book entry registration or issuance of one or more stock
certificates. Any certificate issued in respect of Plan Shares shall be
registered in the name of such Participant and shall bear appropriate legends
referring to the terms, conditions, and restrictions applicable to such Award,
substantially in the following form:

            "The securities represented by this certificate have not been
            registered under the Securities Act of 1933, as amended, or under
            the securities laws of any state and may not be transferred, sold or
            otherwise disposed of except while such a registration is in effect
            or pursuant to an exemption from registration under said Act and
            applicable state securities laws."

            "The securities represented by this certificate are subject to the
            terms and conditions set forth in a Management Shareholders'
            Agreement, dated as of September 5, 2003, as amended from time to
            time, copies of which may be obtained from the issuer or from the
            holder of this security. No transfer of such securities will be made
            on the books of the issuer unless accompanied by evidence of
            compliance with the terms of such agreement."

      Such Plan Shares may bear other legends to the extent the Committee or the
Board determines it to be necessary or appropriate, including any required by
the Management Shareholders' Agreement. If and when all restrictions expire
without a prior cancellation of the Plan Shares theretofore subject to such
restrictions, upon surrender of legended certificates representing such shares
new certificates for such shares shall be delivered to the Participant without
the second legend listed above.

      (b) Representations and Warranties. The Committee may require each Person
purchasing or receiving Plan Shares to (i) represent to and agree with the
Company in writing that such Person is acquiring the shares without a view to
the distribution thereof and (ii) make any other representations and warranties
that the Committee deems appropriate.

      (c) Additional Compensation. Nothing contained in the Plan shall prevent
the Company or any of its Affiliates from adopting other or additional
compensation arrangements for its employees.

      (d) No Right of Employment. Adoption of the Plan or grant of any Award
shall not confer upon any employee or any other individual any right to
continued Employment, nor shall it interfere in any way with the right of the
Company or any of its Affiliates to terminate the Employment of any eligible
Participant at any time.

      (e) Withholding Taxes. No later than the date as of which an amount first
becomes includible in the gross income of a Participant for income tax purposes
or subject to Federal Insurance Contributions Act withholdings with respect to
any Award, including, without limitation, upon exercise of any Stock Option,
under the Plan, such Participant shall pay to the Company or, if appropriate,
one of its Affiliates, or make arrangements satisfactory to the

                                       14
<PAGE>
Committee regarding the payment of, any United States federal, state or local or
foreign taxes of any kind required by law to be withheld with respect to such
amount. If approved by the Committee, minimum required statutory withholding
obligations may be settled with Common Stock, including Common Stock that is
part of the Award that gives rise to the withholding requirement. The
obligations of the Company under the Plan shall be conditional on such payment
or arrangements, and the Company and its Affiliates shall, to the extent
permitted by law, have the right to deduct any such taxes from any payment
otherwise due to the Participant. The Committee may establish such procedures as
it deems appropriate, including making irrevocable elections, for the settlement
of withholding obligations with Common Stock.

      (f) Beneficiaries. The Committee shall establish such procedures as it
deems appropriate for a Participant to designate a beneficiary to whom any
amounts payable in the event of the Participant's death are to be paid or by
whom any rights of the Participant, after the Participant's death, may be
exercised.

      (g) Governing Law. The Plan and all Awards made and actions taken
thereunder shall be governed by and construed and enforced in accordance with
the laws of the State of Delaware without regard to the principles of conflicts
of law thereof.

      (h) Compliance with Laws. If any law or any regulation of any governmental
body, commission or agency having jurisdiction shall require the Company or a
Participant seeking to exercise Stock Options to take any action with respect to
the Plan Shares to be issued upon the exercise of Stock Options then the date
upon which the Company shall issue or cause to be issued the Plan Shares or the
rights associated therewith shall be postponed until full compliance (as
determined by the Committee in its sole discretion) has been made with all such
requirements of law or regulation; provided, that the Company shall use its
reasonable efforts to take all necessary action to comply with such requirements
of law or regulation. Moreover, in the event that the Company shall determine
that, in compliance with the Securities Act or other applicable statutes or
regulations (including state "Blue Sky" or other securities laws), it is
necessary to register any of the Plan Shares with respect to which an exercise
of a Stock Option has been made, or to qualify any such Plan Shares (or the
Company) for exemption from any of the requirements of the Securities Act or any
other applicable statute or regulation, no Stock Options may be exercised and no
Plan Shares shall be issued to the exercising Participant until the required
action has been completed; provided, that the Company shall use its reasonable
efforts to take all necessary action to comply with such requirements of law or
regulation. Notwithstanding anything to the contrary contained herein, neither
the Board nor the members of the Committee owes a fiduciary duty to any
Participant in his or her capacity as such.

      (i) Fractional Shares. No fractional shares shall be issued under the Plan
and no cash settlements shall be made with respect to fractional shares
eliminated by rounding.

      (j) Shareholder Approval. The Plan shall be subject to approval by the
shareholders of the Company within twelve (12) months before or after the date
the Plan is adopted. Such shareholder approval shall be obtained in the degree
and manner required under applicable state and federal or foreign law and the
rules of any stock exchange upon which the Company's common shares are listed,
quoted or actively traded.

                                       15
<PAGE>
      (k) Information to Participants. The Company shall provide to each
California Participant, not less frequently than annually, copies of annual
financial statements. The Company shall also provide such statements to each
individual who acquires Common Stock pursuant to the Plan while such individual
owns such Common Stock. The Company shall not be required to provide such
statements to key employees whose duties in connection with the Company assure
their access to equivalent information.

      (l) Agreement. As a condition to the grant of any Award, if requested by
the Company and the lead underwriter of any IPO (the "Lead Underwriter"), a
Participant shall irrevocably agree not to sell, contract to sell, grant any
option to purchase, transfer the economic risk of ownership in, make any short
sale of, pledge or otherwise transfer or dispose of, any interest in any Common
Stock or any securities convertible into, derivative of, or exchangeable or
exercisable for, or any other rights to purchase or acquire Common Stock (except
Common Stock included in such IPO or acquired on the public market after such
offering) during such period of time following the effective date of a
registration statement of the Company filed under the Securities Act that the
Lead Underwriter shall specify (the "Lock-up Period"). The Participant shall
further agree to sign such documents as may be requested by the Lead Underwriter
to effect the foregoing and agree that the Company may impose stop-transfer
instructions with respect to Common Stock acquired pursuant to an Award until
the end of such Lock-up Period.

      (m) Management Shareholders' Agreement and Other Requirements.
Notwithstanding anything herein to the contrary, as a condition to the receipt
of Plan Shares, to the extent required by the Committee, the Participant shall
execute and deliver a shareholders' agreement or such other documentation which
shall set forth certain restrictions on transferability of the Plan Shares, a
right of first refusal of the Company with respect to Plan Shares, the right of
the Company to purchase Plan Shares and such other terms as the Board or
Committee shall from time to time establish. Such shareholders' agreement shall
apply to all Plan Shares acquired under the Plan. The Company may require, as a
condition of grant or exercise of any Award, the Participant to become a party
to any other existing shareholders' agreement.

      (n) California Provisions. Notwithstanding anything herein to the
contrary, the provisions in the Plan applicable to Awards granted to California
Participants shall apply only to the extent necessary to comply with Title 10 of
the California Code of Regulations at the time an Award is granted and shall not
apply if the Common Stock is an exempt security under Section 25100 of the
California Corporations Code.

                                       16
<PAGE>
                                   APPENDIX A

                              PERFORMANCE CRITERIA

                              --------------------

      Performance Goals established for purposes of an Award of
Performance-Based Awards intended to comply with Section 162(m) of the Code
shall be based on one or more of the following performance criteria
("Performance Criteria"): (i) the attainment of certain target levels of, or a
specified percentage increase in, revenues, income before taxes and
extraordinary items, net income, operating income, earnings before income tax,
earnings before interest, taxes, depreciation and amortization or a combination
of any or all of the foregoing; (ii) the attainment of certain target levels of,
or a percentage increase in, after-tax or pre-tax profits including, without
limitation, that attributable to continuing and/or other operations; (iii) the
attainment of certain target levels of, or a specified increase in, operational
cash flow; (iv) the achievement of a certain level of, reduction of, or other
specified objectives with regard to limiting the level of increase in, all or a
portion of, the Company's bank debt or other long-term or short-term public or
private debt or other similar financial obligations of the Company, which may be
calculated net of such cash balances and/or other offsets and adjustments as may
be established by the Committee; (v) earnings per share or the attainment of a
specified percentage increase in earnings per share or earnings per share from
continuing operations; (vi) the attainment of certain target levels of, or a
specified increase in return on capital employed or return on invested capital;
(vii) the attainment of certain target levels of, or a percentage increase in,
after-tax or pre-tax return on stockholders' equity; (viii) the attainment of
certain target levels of, or a specified increase in, economic value added
targets based on a cash flow return on investment formula; (ix) the attainment
of certain target levels in the fair market value of the shares of the Company's
common stock; (x) the growth in the value of an investment in the Company's
common stock assuming the reinvestment of dividends; or (xi) the attainment of a
certain level of, reduction of, or other specified objectives with regard to
limiting the level in or increase in, all or a portion of controllable expenses
or costs or other expenses or costs. For purposes of item (i) above,
"extraordinary items" shall mean all items of gain, loss or expense for the
fiscal year determined to be extraordinary or unusual in nature or infrequent in
occurrence or related to a corporate transaction (including, without limitation,
a disposition or acquisition) or related to a change in accounting principle,
all as determined in accordance with standards established by Opinion No. 30 of
the Accounting Principles Board.

      In addition, such Performance Criteria may be based upon the attainment of
specified levels of Company (or subsidiary, division or other operational unit
of the Company) performance under one or more of the measures described above
relative to the performance of other corporations. To the extent permitted under
Section 162(m) of the Code, but only to the extent permitted under Section
162(m) of the Code (including, without limitation, compliance with any
requirements for stockholder approval), the Committee may: (i) designate
additional business criteria on which the Performance Criteria may be based or
(ii) adjust, modify or amend the aforementioned business criteria.

                                       17
<PAGE>
                                 AMENDMENT NO. 1
                           UNITED NATIONAL GROUP, LTD.
                              SHARE INCENTIVE PLAN

            This AMENDMENT No. 1 (the "Amendment") dated 25 September 2003
amends the terms and conditions of the United National Group, Ltd. Share
Incentive Plan dated 5 September 2003 (the "Plan").

            WHEREAS, by written resolution of the Directors of United National
Group, Ltd., an exempted company incorporated with limited liability under the
law of the Cayman Islands (the "Company"), dated 15 September 2003, the Plan was
unanimously approved by the Directors of the Company; and

            WHEREAS, the Board of Directors of the Company desire to effect the
revisions to the Plan set forth herein effective the date hereof.

            NOW, THEREFORE, the Plan is amended as follows:

      1.    The first sentence of Section 3 of the Plan is amended to read in
            its entirety as follows:

            "The total number of shares of Common Stock reserved and available
            for grant under the Plan shall be 2,500,000 (subject to any increase
            or decrease pursuant to this Section 3)."

      2.    The phrase "the laws of the State of Delaware" in Section 8 of the
            Plan is removed and replaced with the words "applicable law."

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00058-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00058-of-00352.parquet"}]]