Document:

WRB 12.31.2011 EX. 10-12 LTIP

Performance Unit Award Agreement
Under the W. R. Berkley Corporation 2009 Long-Term Incentive Plan
THIS AGREEMENT, effective January 1, 2011, represents an Award of Performance Units by W. R. Berkley Corporation (the “Company”), to the Participant named below, pursuant to the provisions of the W. R. Berkley Corporation 2009 Long-Term Incentive Plan (the “Plan”). The value of the Performance Units will be determined based on the increase in the Company's Book Value Per Share during the Performance Cycle, as determined below.
The Plan provides a complete description of the terms and conditions governing the Performance Units. If there is any inconsistency between the terms of this Agreement and the terms of the Plan, the Plan's terms shall completely supersede and replace the conflicting terms of this Agreement. All capitalized terms shall have the meanings ascribed to them in the Plan, unless specifically set forth otherwise herein. The parties hereto agree as follows:
1.    General Grant Information. The individual named below has been selected to be a Participant in the Plan and receive a grant of Performance Units, as specified below:
(a)  Participant:  
(b)  Number of Performance Units Granted:
(c)  Initial Value of Performance Units: $0.00
(d)  Date of Grant: January 1, 2011
(e)  Performance Measure: Increase in Book Value Per Share.
2.    Performance Period. The Performance Period commences on January 1, 2011, and ends on December 31, 2015.
3.    Performance Measure. The Performance Measure, as specified above, is expressed in terms of the Company's Increase in Book Value Per Share.
4.    Value of a Performance Unit. Each Performance Unit shall have a value determined by adding together the Increase in Book Value Per Share for each fiscal year of the Performance Period and multiplying the resulting sum by ten and seventeen one hundredths (10.17); provided, however, that if the Increase in Book Value Per Share for a particular fiscal year is not a positive number, there will be no Increase in Book Value Per Share for that year, and thereafter there will only be an Increase in Book Value Per Share that will be used to increase the value of a Performance Unit to the extent that any subsequent Ending Book Value Per Share after the year in which the Increase in Book Value Per Share was not positive exceeds the last Ending Book Value Per Share that resulted in an increase to the Performance Unit value.  The maximum value of a Performance Unit shall be two hundred fifty dollars ($250.00).
5.    Eligibility for Earned Performance Units. The Participant shall only be eligible for payment of earned Performance Units.  Performance Units will be earned only if the Participant's employment with the Company:
(a)    Continues through the earlier of (x) the end of the Performance Period and (y) the Participant's death; or
    

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	(b)
	Is terminated, prior to the earlier of the end of the Performance Period and the Participant's death, as a result of Disability or Retirement, or by the Company or a Subsidiary or Affiliate, as applicable, for any reason other than Cause.

Notwithstanding anything herein to the to the contrary, the Performance Units shall not be earned and shall not become payable unless and until the Participant has complied with the Competitive Action restriction set forth in Section 6(d) below on or prior to the Settlement Date.
6.    Payout of Performance Units. (a) Except as set forth in Section 6(b) or 9 below, the aggregate positive value, if any, of the earned Performance Units, based on the value of the earned Performance Units on the last day of the Performance Period as determined in accordance with this Agreement and subject to the maximum value set forth in Section 4 hereof, shall be paid to the Participant in cash following the last day of the Performance Period but in no event later than March 31, 2016.
(b)    If the Participant dies or his employment with the Company and all Subsidiaries and Affiliates terminates prior to the end of the Performance Period either as a result of Disability or Retirement or by the Company or a Subsidiary or Affiliate, as applicable, for any reason other than Cause, the Company shall pay to the Participant the cash value of the Performance Units measured as of the end of the fiscal year immediately prior to the fiscal year in which such death or termination of employment occurred.  Payment of such amount upon such death or termination of the Participant's employment shall extinguish the Company's obligation hereunder, and the Participant shall not be entitled to any further payment or appreciation in the value of the Performance Units.  In the event such payment is made due to the Participant's death, such payment shall be made to the Participant's beneficiary (or the Participant's estate if no beneficiary has been chosen or if such beneficiary has predeceased the Participant).  Any payment upon death or any such termination of employment shall be made within ninety (90) calendar days following such death or termination of employment; provided, however, that if such ninety (90) day period spans two separate taxable years, such payment shall be made in the later taxable year; provided further, however, that any payment hereunder upon a termination of employment shall be delayed until the earlier of (x) March 31, 2016 (calculated as of the end of the fiscal year immediately prior to the fiscal year in which such termination of employment occurred), and (y) such time as the Participant has also undergone a “separation from service” as defined in Treas. Reg. 1.409A-1(h), at which time such payment (calculated as of the end of the fiscal year immediately prior to the fiscal year in which such termination of employment occurred) shall be made to the Participant according to the schedule set forth in this Section 6(b) as if the Participant had undergone such termination of employment (under the same circumstances) on the date of such “separation from service.”  Notwithstanding anything herein to the contrary, to the extent the Participant is a “specified employee” as defined in Treas. Reg. 1.409A-1(i), any payment to be made upon the Participant's “separation from service” shall be delayed until and made upon the earlier of (i) the six (6) month anniversary of the Participant's “separation from service” and (ii) the Participant's death.  Termination of the Participant's employment with the Company and all Subsidiaries and Affiliates prior to the earlier of the end of the Performance Period and the Participant's death for any reason other than Disability or Retirement, or by the Company or a Subsidiary or Affiliate, as applicable, without Cause, shall require forfeiture of this entire Award, with no payment to the Participant.
(c)    This Award shall expire and the Company shall have no further obligation to make any payment hereunder once a payment is made pursuant to Section 6(a) or (b) above or Section 9 below.
(d)    If on or prior to the Settlement Date, the Participant engages in a Competitive Action or enters into, or has entered into, an agreement (written, oral or otherwise) to engage in Competitive Action or has engaged in Misconduct, all of the Performance Units shall be immediately forfeited, and the Participant shall have no further rights with respect to such Performance Units.  In the event that the Participant engages in any Competitive Action or enters into, or has entered into, an agreement (written, oral or otherwise) to engage in Competitive Action or engages in Misconduct after the Settlement Date but on or prior to the second anniversary of the Settlement Date, the Participant shall pay to the Company, upon demand by the Company, an amount equal to the amount paid to the Participant in respect of the Performance Units on the Settlement Date.  The determination as to whether the Participant has engaged in any Competitive Action or Misconduct shall be made by the Committee in its sole and 

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absolute discretion.  The Committee's exercise or nonexercise of such discretion with respect to any particular event or occurrence by or with respect to the Participant or any other recipient of performance units under the Plan shall not in any way reduce or eliminate the authority of the Committee to (i) determine that any event or occurrence by or with respect to the Participant constitutes engaging in Competitive Action or Misconduct, or (ii) determine the related Competitive Action or Misconduct date.  The Participant acknowledges that the restriction with respect to engaging in a Competitive Action, in view of the nature of the business in which the Company is engaged, is reasonable in scope (as to both the temporal and geographical limits) and necessary in order to protect the legitimate business interests of the Company.  The Participant acknowledges further that engaging in a Competitive Action or Misconduct would result in irreparable injuries to the Company and would cause loss in an amount that cannot be readily quantified.  The Participant acknowledges further the amounts required to be paid to the Company pursuant to this provision are reasonable and are not liquidated damages nor shall they be characterized as such.
7.    Nontransferability. Performance Units may not be sold, transferred, pledged, assigned, or otherwise alienated or hypothecated, other than by will or by the laws of descent and distribution.
8.    Administration. This Agreement and the rights of Participant hereunder are subject to all the terms and conditions of the Plan, as the same may be amended from time to time, as well as to such rules and regulations as the Committee may adopt for administration of the Plan. It is expressly understood that the Committee is authorized to administer, construe, and make all determinations necessary or appropriate to the administration of the Plan and this Agreement, all of which shall be final and binding upon the Participant, including without limitation any determination concerning a Competitive Action. Any inconsistency between the Agreement and the Plan shall be resolved in favor of the Plan.
9.    Change of Control. Upon the occurrence of a Change of Control, unless otherwise specifically prohibited under applicable laws or by the rules and regulations of any governing governmental agencies or national securities exchanges, the value of all Performance Units shall be determined and fixed as of the end of the fiscal year immediately preceding the year in which such Change in Control occurs, and such value shall be paid to the Participant in accordance with, and subject to, the provisions of Sections 5 and 6 hereof.  Performance Units shall not accrue any additional value for the fiscal year in which a Change in Control occurs or for any subsequent fiscal years.  
10.    Miscellaneous.
(a)    This Agreement shall not confer upon the Participant any right to continuation of employment by the Company, nor shall this Agreement interfere in any way with the Company's right to terminate the Participant's employment at any time.
(b)    The Committee may terminate, amend, or modify the Plan; provided, however, that no such termination, amendment, or modification of the Plan may in any material way adversely affect the Participant's rights under this Agreement. 
(c)    The Company or a Subsidiary or Affiliate, as applicable, shall have the authority to deduct or withhold from any payment hereunder or from any other source of the Participant's compensation from the Company or a Subsidiary or Affiliate, as applicable, or may require the Participant to remit to the Company or a Subsidiary or Affiliate, as applicable, before payment hereunder, an amount sufficient to satisfy federal, state, and local taxes (including Participant's FICA obligation) required by law to be withheld with respect to any taxable event arising out of this Agreement. 
(d)    This Agreement shall be subject to all applicable laws, rules, and regulations, and to such approvals by any governmental agencies or national securities exchanges as may be required. 
(e)    To the extent not preempted by federal law, this Agreement shall be governed by, and construed in accordance with, the laws of the State of Delaware.

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(f)    All obligations of the Company under the Plan and this Agreement with respect to the Performance Units shall be binding on any successor to the Company, whether the existence of such successor is the result of a direct or indirect purchase, merger, consolidation, or otherwise, of all or substantially all of the business and/or assets of the Company.
(g)    The provisions of this Agreement are severable and if any one or more provisions are determined to be illegal or otherwise unenforceable, in whole or in part, the remaining provisions shall nevertheless be binding and enforceable.
(h)    By accepting this Award or other benefit under the Plan, the Participant and each person claiming under or through the Participant shall be conclusively deemed to have indicated their acceptance and ratification of, and consent to, any action taken under the Plan by the Company, the Board or the Committee.
(i)    The Participant, every person claiming under or through the Participant, and the Company hereby waive to the fullest extent permitted by applicable law any right to a trial by jury with respect to any litigation directly or indirectly arising out of, under, or in connection with the Plan or this Award Agreement issued pursuant to the Plan.
(j)    Definitions. The following terms shall have the meanings ascribed to them when used in this Agreement:
(i)    “Beginning Book Value Per Share” means $24.30 for the first fiscal year of the Performance Period, and for each subsequent fiscal year shall mean the Book Value Per Share determined as of the end of the prior fiscal year.
(ii)    “Book Value Per Share” as of the end of any fiscal year shall be equal to the quotient of X divided by Z, where X is equal to the sum of A, B, C, D and E minus F, and Z is equal to the sum of W plus Y:  [(A+B+C+D+E-F) ÷(W+Y)].  For purposes of this calculation, (A) shall be equal to the Company's total common stockholders' equity as of the end of such fiscal year, as determined in accordance with generally accepted accounting principles and reported in the Company's audited financial statements, (B) shall be equal to the cumulative after-tax expense of the Company from January 1, 2011 through the end of such fiscal year arising from all the Awards made under the Plan, (C) shall be equal to the cumulative cash dividends on the Company's common stock declared from January 1, 2011 through the end of such fiscal year, (D) shall be equal to the cumulative cost of the Company's common stock repurchased by the Company from January 1, 2011 through the end of such fiscal year, (E) shall be equal to the cumulative number of shares of the Company's common stock repurchased by the Company from January 1, 2011 through the end of such fiscal year times the Beginning Book Value Per Share times 3.75% (computed and compounded quarterly), (F) shall be equal to the Company's accumulated other comprehensive income as of the end of such fiscal year, (W) shall be equal to the number of shares of the Company's common stock issued and outstanding, net of treasury shares, as of the end of such fiscal year, and (Y) shall be the cumulative number of shares of the Company's common stock repurchased  by the Company from January 1, 2011 through the end of such fiscal year.  Book Value Per Share shall be calculated without taking into account any forward or reverse split of the Company's common stock or any stock dividend declared on the Company's common stock and there shall be no adjustment to the number of Performance Units awarded hereunder in either event.
(iii)    “Cause” means  Cause as defined in any active employment agreement between the Participant and the Company or any Subsidiary or Affiliate, as applicable, or, in the absence of any such employment agreement, (i) fraud, personal dishonesty, embezzlement or acts of gross negligence or gross misconduct on the part of Participant in the course of his or her employment or services, (ii) the Participant's engagement in conduct that is materially injurious to the Company, a Subsidiary or an Affiliate, (iii) the Participant's conviction by a court of competent jurisdiction of, or pleading “guilty” or “no contest” to, (x) a felony or (y) any other criminal charge (other than minor traffic violations) which could reasonably be expected to have a material adverse impact on the Company's or a Subsidiary's or an Affiliate's reputation or business; (iv) public or 

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consistent drunkenness by the Participant or his or her illegal use of narcotics which is, or could reasonably be expected to become, materially injurious to the reputation or business of the Company, a Subsidiary or an Affiliate or which impairs, or could reasonably be expected to impair, the performance of the Participant's duties to the Company, a Subsidiary or an Affiliate; (v) willful failure by the Participant to follow the lawful directions of a superior officer; or (vi) the Participant's continued and material failure to fulfill his or her employment obligations to the Company or any Subsidiary or Affiliate.
(iv)    “Competitive Action” means, either directly or indirectly, whether as an employee, consultant, independent contractor, partner, joint venturer or otherwise, (i) in any geographical area where the Company is engaged in business, engaging in any business activities which are competitive with any type or kind of business activities conducted by the Company in such area, (ii) on behalf of any person or entity engaged in business activities competitive with the business activities of the Company, soliciting or inducing, or in any manner attempting to solicit or induce, any person employed by, or as an agent of, the Company to terminate such person's employment or agency relationship, as the case may be, with the Company, (iii) diverting, or attempting to divert, any person, concern or entity from doing business with the Company or attempts to induce any such person, concern or entity to cease being a customer of the Company or (iv) making use of, or attempting to make use of, the Company's property or proprietary information, other than in the course of the performance of services to the Company or at the direction of the Company.  References to the Company in this definition shall include the Company and all Subsidiaries and Affiliates.
(iv)    “Disability” means the inability of the Participant to continue to perform services for the Company or any Subsidiary or Affiliate, as applicable, on account of his or her total and permanent disability as determined by the Committee.
(v)    “Ending Book Value Per Share” means for the applicable fiscal year, the Book Value Per Share determined as of the end of such fiscal year.
(vi)     “Increase in Book Value Per Share” means the amount, if any, by which the Ending Book Value Per Share exceeds Beginning Book Value Per Share for the applicable fiscal year.
(vii)    “Misconduct” means that the Participant has during the Participant's employment with the Company or any Subsidiary or any Affiliate engaged in an act which would, in the judgment of the Committee, constitute fraud, that could be punishable as a crime, or embezzlement against either the Company, or one of its Subsidiaries, or one of its Affiliates.  
(viii)    “Retirement” means the Participant's retirement from service with the Company and all Subsidiaries and Affiliates with the written consent of [the Chairman of the Board of the Company or This language shall be deleted from the agreements for William R. Berkley and W. Robert Berkley.]the Committee.
(ix)    “Settlement Date” means the date that the value of the Performance Units is actually paid to the Participant.
[Signatures to appear on following page]
IN WITNESS WHEREOF, the parties have caused this Agreement to be executed effective as of January 1, 2011.
W. R. Berkley Corporation

By:    __________________________
Name:
Title:

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______________________________
Participant

Please indicate the name of the Participant's beneficiary:

    
Name

The Participant may change his or her beneficiary hereunder only by written notice to the Company, which change will become effective only upon receipt by the Company during the Participant's lifetime.

 6WRB 12.31.2011 EX. 10-14 SERP

SUPPLEMENTAL BENEFITS AGREEMENT
Amended and Restated Effective January 1, 2012
This AMENDED AND RESTATED SUPPLEMENTAL BENEFITS AGREEMENT is dated as of December 21, 2011, and is entered into by and between W. R. Berkley Corporation, a Delaware corporation (the “Company”), and William R. Berkley (“Executive”).
WHEREAS, Executive currently serves as the Company's Chief Executive Officer and as the Chairman of the Board;
WHEREAS, each of Executive and the Company desired to enter into a amended agreement (this “Agreement”) providing for certain benefits upon Executive's retirement as the Company's Chief Executive Officer, subject to the terms and conditions contained herein;
WHEREAS, this Agreement was originally entered into as of August 19, 2004, at which time Executive became earned and vested in, and entitled to a legally binding right to, certain payments and benefits hereunder;
WHEREAS, pursuant to Treasury Regulation § 1.409A-6(a)(3)(i), Section 409A of the Code does not apply with respect to amounts deferred prior to January 1, 2005; to wit, in the case of the Retirement Benefit, the Gross-Up Payment, and the continued health benefits (each a payment of a non-account balance plan under Section 409A of the Code) under this Agreement, the present value of the amount to which Executive would have been entitled hereunder upon a voluntary termination for any reason on December 31, 2004, and in the case of the perquisites (part of a separate plan under Section 409A of the Code), the right to the in-kind benefits as of December 31, 2004;
WHEREAS, all payments and benefits under this Agreement, other than (i) the increase in the present value of the Retirement Benefit after December 31, 2004, and (ii) the Gross-Up Payment, are grandfathered from the application of Section 409A of the Code pursuant to the operation of Treasury Regulation § 1.409A-6(a)(3)(i);
WHEREAS, the Gross-Up Payment complies with Section 409A of the Code;
WHEREAS, the Company and Executive further amended and restated this Agreement effective as of December 17, 2007, only with respect to the Retirement Benefit, in order that the calculation, determination and payment of such Retirement Benefit be in all respects compliant with the requirements of Section 409A of the Code;
WHEREAS, the amendment to and restatement of this Agreement effective as of December 17, 2007, were made for the sole purpose of making the Retirement Benefit compliant with Section 409A of the Code (and therefore do not constitute a material modification of any part of this Agreement under Section 409A of the Code), and in no way amended or affected the calculation, determination, distribution or provision of, any payments or benefits hereunder other than the Retirement Benefit; 
WHEREAS, the Company and Executive further amended and restated this Agreement effective as of December 12, 2008, to change the time and form of payment of the Retirement Benefit in a manner compliant with transition relief provided under Notice 2007-86 and other applicable guidance promulgated by the Treasury Department or Internal Revenue Service regarding compliance with Section 409A of the Code; and

WHEREAS, the Company and Executive desire to further amend and restate this Agreement effective as of January 1, 2012 to (i) freeze Executive's Retirement Benefit effective as of January 1, 2012 and prevent the future accrual of additional Retirement Benefits hereunder and (ii) to allow changes in the payment of Retirement Benefits in accordance with, and as provided by, Section 409A of the Code.
NOW, THEREFORE, the parties hereto agree as follows:
Section 1.Definitions.
“Auditors” shall have the meaning set forth in Section 3(a) hereof.
“Benefit Calculation Date” means January 1, 2012.  For the avoidance of doubt, Executive shall not accrue additional Retirement Benefits on or after January 1, 2012.
“Benefit Commencement Date” means the earliest to occur of (i) January 2, 2014 or such date as elected in accordance with Section 2, (ii) the date of Executive's death, and (iii) the date of a Change in Control.  
“Board” means the Company's Board of Directors.
“Cause” means (i) Executive is convicted of, or pleads guilty or no contest to, any felony; or (ii) Executive engages in conduct that constitutes willful gross neglect or willful gross misconduct in carrying out his duties to the Company, resulting, in either case, in material economic harm to the Company.  For purposes of clause (ii) above, no act or failure to act by Executive shall be considered “willful” unless done or omitted to be done by Executive in bad faith and without reasonable belief that Executive's action or omission was in the best interests of the Company.  Any act, or failure to act, based upon authority given pursuant to a resolution duly adopted by the Board or based upon the advice of counsel for the Company shall be conclusively presumed to have been done, or omitted to be done, by Executive in good faith and in the best interests of the Company.
“Change in Control” means any transaction that constitutes either (i) a change in the ownership of the Company within the default meaning under Treasury Regulation Section 1.409A-3(i)(5)(v) (i.e., the acquisition by a person or group of persons of stock of the Company constituting more than 50% of the total fair market value or total voting power of the stock of the Company), (ii) a change in the effective control of the Company within the default meaning under Treasury Regulation Section 1.409A-3(i)(5)(vi) (i.e., either (x) the acquisition by a person or group of persons of stock of the Company possessing 30% or more of the total voting power of the stock of the Company or (y) the replacement during any 12-month period of a majority of the members of the Board by members whose appointment or election is not endorsed by a majority of the members of the Board before the date of the appointment or election), or (iii) a change in the ownership of a substantial portion of the Company's assets within the default meaning of Treasury Regulation Section 1.409A-3(i)(5)(vii) (i.e., the acquisition by a person or group of persons of assets from the Company that have a total gross fair market value equal to or greater than 40% of the total gross fair market value of all of the assets of the Company immediately before such acquisition).
“Code” means the Internal Revenue Code of 1986, as amended.
“Final Average Five-Year Compensation” means the average of Executive's base salary and regular annual bonus (excluding any amounts paid under the Company's Long-Term Incentive Plan), earned in respect of each of the five fiscal years of the Company prior to the fiscal year in which the 

Benefit Calculation Date occurs.
“Good Reason” means, in each case without Executive's consent, (i) any change in Executive's title (including his position as Chairman of the Board) or any diminution in Executive's authority or responsibility; (ii) the assignment of duties or responsibilities that are inconsistent in any material respect with Executive's position or status as Chief Executive Officer of the Company; (iii) a reduction, by the Company, in Executive's rate of annual base salary or a material reduction in the value of Executive's annual bonus opportunity, each as in effect on the date hereof or as the same may be increased from time to time thereafter; (iv) any requirement of the Company that Executive be based anywhere more than twenty (20) miles from the office where Executive is located as of the date hereof; or (v) the failure of the Company to obtain the assumption in writing of its obligation to perform this Agreement by any successor, as contemplated in Section 8 hereof.
“Gross-Up Payment” shall have the meaning set forth in Section 3 hereof.
“Highest Average Three-Year Compensation” means the greatest three fiscal year average of Executive's base salary and regular annual bonus earned in respect of each such fiscal year (excluding any amounts paid under the Company's Long-Term Incentive Plan), determined by using any three consecutive fiscal years over the ten-fiscal-year period prior to the year in which the Benefit Calculation Date occurs.
“Make-up Account” means a notional account which, during the period commencing upon the date of a Qualifying Termination and ending on the Benefit Commencement Date, shall be credited on each monthly anniversary of the date of such Qualifying Termination with an amount equal to one twelfth (1/12th) of the Retirement Benefit plus interest on the balance in such account at the interest rate then in effect under Section 6 of the W. R. Berkley Corporation Deferred Compensation Plan for Officers, as amended and restated December 3, 2007.  For purposes of clarity, in the event the Benefit Calculation Date and the Benefit Commencement Date occur on the same date, Executive shall not be entitled to a Make-up Account.
“Parachute Tax” shall have the meaning set forth in Section 3(a) hereof.
“Payment” shall have the meaning set forth in Section 3(a) hereof.
“Qualifying Termination” means the earliest to occur of (i) Executive's resignation from employment as Chief Executive Officer of the Company for any reason; (ii) any termination of Executive's employment by the Company other than for Cause; provided, that, in each case, Executive shall not be required to resign from his position as Chairman of the Board following any termination of employment in order for a Qualifying Termination to occur; or (iii) termination of Executive's employment by reason of his death.
“Restricted Period” means the period commencing on the date of Executive's resignation from employment as Chief Executive Officer without Good Reason and ending on the second anniversary thereof.
“Retirement Benefit” means an annual benefit equal to the greater of (i) $1,000,000, or (ii) fifty percent (50%) of the Highest Average Three-Year Compensation, which in the case of clause (ii) shall in no event exceed one hundred fifty percent (150%) of the Final Average Five-Year Compensation.
Section 2.Benefits.
(a)Retirement Benefit.  Within thirty (30) days following the Benefit Commencement 

Date, Executive shall be paid the first annual Retirement Benefit, plus a lump sum amount equal to the accrued balance in the Make-up Account, if any.  Thereafter, Executive shall be paid the annual Retirement Benefit on each anniversary of the Benefit Commencement Date for the remainder of his life.  Upon Executive's death, and if Executive's spouse has not predeceased him, Executive's spouse shall thereafter be entitled to receive, in lieu of the full Retirement Benefit that would have been payable to Executive absent his death, fifty percent (50%) of the annual Retirement Benefit on each anniversary of the Benefit Commencement Date for the remainder of her life (and in the event that the Benefit Commencement Date occurred as a result of Executive's death, Executive's spouse shall also receive within thirty (30) days following Executive's death a lump sum payment equal to the sum of (i) fifty percent (50%) of the annual Retirement Benefit and (ii) the accrued balance in the Make-up Account, if any).  Notwithstanding the foregoing, within ten (10) business days following the Benefit Commencement Date, Executive may elect for him and his spouse to receive, in lieu of the yearly Retirement Benefit set forth in this Section 2(a), an annual lifetime annuity benefit under a joint and survivor annuity based on the lives of Executive and his spouse that is the actuarial equivalent of one hundred percent (100%) of the yearly Retirement Benefits that would have otherwise been made to Executive and his spouse had no such election occurred.  Notwithstanding anything herein to the contrary, in the event the Benefit Commencement Date occurs as the result of a Change in Control, Executive shall receive within thirty (30) days of such Change in Control, in lieu of the yearly Retirement Benefits provided by this Section 2(a), a lump sum amount equal to the actuarial present value of one hundred percent (100%) of the yearly Retirement Benefits that would have otherwise been made to Executive following a Benefit Commencement Date that was not a Change in Control.  
Except as otherwise required by Section 409A of the Code, no later than twelve (12) months prior to the Benefit Commencement Date, Executive may elect to change  the distribution form and the distribution time that the Retirement Benefits will be paid in accordance with the following requirements:
(i)    Subject to clauses (ii) and (iii) below, such election may not take effect until the twelve (12) month anniversary of the date the election is made;  
(ii)    Except with respect to a payment to be made on account of death, the distribution time must not be less than five (5) years after the distribution time that the new election is changing (regardless of whether the new election merely changes the distribution form); and
(iii)    Any election related to a payment of benefits at a specified time or pursuant to a fixed schedule must be made not less than twelve (12) months before the date the payment is scheduled to be paid (or in the case of a life annuity or installment payments treated as a single payment, twelve (12) months before the date the first amount was scheduled to be paid).
The following actuarial assumptions shall be applied for purposes of determining any form of benefit:
	
		
	Mortality:
	Based on the mortality rates under the 1994 Uninsured Pensioner Mortality Table (UP-94)

	Interest Rate:
	6%

	 
	 

(b)Continued Health Benefits.  Following a Qualifying Termination, (i) for the remainder of Executive's life, in the case of Executive, and for the remainder of his spouse's life, in the case of Executive's spouse, the Company shall provide Executive and Executive's spouse with 

health insurance coverage, with substantially the same level of benefits as provided to Executive and his spouse immediately prior to such Qualifying Termination; provided, that, if Executive and/or his spouse become eligible to participate in any government-provided health care coverage, Executive and/or his spouse shall participate in such coverage to the extent reasonably practicable, and, in such case, the level of benefits provided under this subsection (b) shall be reduced to avoid duplication of benefits.  Notwithstanding the foregoing, following the date Executive and/or his spouse participate in such government-provided coverage, Executive and/or his spouse shall have the right to elect not to use such government-provided coverage with respect to any procedure if Executive and/or his spouse reasonably believe, in Executive's and/or his spouse's discretion, that the same quality of care can not be provided through use of such coverage as the quality of care available through the Company provided coverage.  Benefits provided to Executive and his spouse under this subsection (b) shall be paid by the Company; provided, however, that with respect to Executive's spouse, until such time that Executive's spouse participates in the government health care coverage described above, Executive and/or his spouse shall be responsible for payment to the Company of an amount equal to any “co-pay” applicable to spouses of other employees of the Company receiving the same level of benefits.
(c)Perquisites.
(i)For the period commencing on a Qualifying Termination and ending on the latest to occur of (A) two (2) years following the date of such Qualifying Termination, (B) the date on which Executive ceases to serve as Chairman of the Board, or (C) the date upon which Executive ceases to provide consulting services to the Company, the Company shall provide Executive with:
(1)continued use of the Company airplane, in a manner consistent with Executive's historical use of such airplane prior to such Qualifying Termination; and
(2)a car and driver at a level consistent with that provided to Executive prior to such Qualifying Termination.
(ii)Following a Qualifying Termination, for so long as Executive requests, the Company shall provide Executive with office accommodations and support, which shall include computer and telecommunication office equipment (e.g., fax machine, copy machine, telephones, etc.), reasonable office supplies and full-time secretarial support in a manner consistent with the office accommodations and support provided to him prior to such Qualifying Termination.
Section 3.Additional Payments.
(a)If it is determined by a nationally recognized United States public accounting firm selected by the Company and approved in writing by Executive (the “Auditors”) that any payment or benefit made or provided to Executive in connection with this Agreement or otherwise (collectively, a “Payment”) would be subject to the excise tax imposed by Section 4999 of the Code (the “Parachute Tax”), then the Company shall pay to Executive, prior to the time the Parachute Tax is payable with respect to such Payment, an additional payment (a “Gross-Up Payment”) in an amount such that, after payment by Executive of all taxes (including any Parachute Tax) imposed upon the Gross-Up Payment, Executive retains an amount of the Gross-Up Payment equal to the Parachute Tax imposed upon the Payment.  The amount of any Gross-Up Payment shall be determined by the Auditors, subject to adjustment, as necessary, as a result of any Internal Revenue Service position.  For purposes of making the calculations required by this Agreement, the Auditors may make reasonable assumptions and approximations concerning applicable taxes and may rely on reasonable, good-faith interpretations concerning the application of Sections 280G and 4999 of the Code, provided that the Auditors' determinations must be made with substantial authority (within the meaning of Section 6662 of the Code).
(b)The federal tax returns filed by Executive (and any filing made by a consolidated tax group which includes the Company) shall be prepared and filed on a basis consistent with the determination of the Auditors with respect to the Parachute Tax payable by Executive.  Executive shall 

make proper payment of the amount of any Parachute Tax and, at the request of the Company, provide to the Company true and correct copies (with any amendments) of his federal income tax return as filed with the Internal Revenue Service and such other documents reasonably requested by the Company evidencing such payment.  If, after the Company's payment to Executive of the Gross-Up Payment, the Auditors determine in good faith that the amount of the Gross-Up Payment should be reduced or increased, or such determination is made by the Internal Revenue Service, then within ten business days of such determination, Executive shall pay to the Company the amount of any such reduction, or the Company shall pay to Executive the amount of any such increase; provided, however, that in no event shall Executive have any such refund obligation if it is determined by the Company (with its counsel) that to do so would violate the Sarbanes-Oxley Act of 2002, as it may be amended from time to time; and provided, further, that if Executive has prior thereto paid such amounts to the Internal Revenue Service, such refund shall be due only to the extent that a refund of such amount is received by Executive.
(c)The fees and expenses of the Auditors (and any other legal and accounting fees) incurred for services rendered in connection with the Auditors' determination of the Parachute Tax or any challenge by the Internal Revenue Service or other taxing authority relating to such determination shall be paid by the Company.
Section 4.Non-Competition; Consulting during the Restricted Period.
(a)Non-Competition.  In the event that Executive resigns from employment without Good Reason, Executive covenants and agrees that during the Restricted Period, with respect to any State of the United States of America or any other jurisdiction in which the Company engages in business at the time of such termination, Executive shall not, directly or indirectly, individually or jointly, own any interest in, operate, join, control or participate as a partner, director, principal, officer or agent of, enter into the employment of, act as a consultant to, or perform any services for any entity that engages in activities that are materially competitive with the Company or its subsidiaries.
(b)Blue Pencil.  If any court of competent jurisdiction shall at any time deem the duration or the geographic scope of the provisions of subsection (a) above unenforceable, the other provisions of this Agreement shall nevertheless stand, and the duration and/or geographic scope set forth herein shall be deemed to be the longest period and/or greatest size permissible by law under the circumstances, and the parties hereto agree that such court shall reduce the time period and/or geographic scope to permissible duration or size.
(c)Injunctive Relief.  Without intending to limit the remedies available to the Company, but subject to subsection (e) below, Executive acknowledges that a breach of any of the covenants contained in subsection (a) above may result in material irreparable injury to the Company or its subsidiaries for which there is no adequate remedy at law; that it will not be possible to measure damages for such injuries precisely; and that, in the event of such a breach or threat thereof, the Company shall be entitled to obtain a temporary restraining order and/or a preliminary or permanent injunction, without the necessity of proving irreparable harm or injury as a result of such actual or threatened breach of subsection (a) above, restraining Executive from engaging in activities prohibited by subsection (a) above or obtaining such other relief as may be required specifically to enforce any of the covenants hereof.
(d)Consulting Arrangement.  During the Restricted Period, Executive agrees to be reasonably available to provide consulting services, at the request of the Board, for not more than twenty (20) hours per month.  In connection with any request for Executive's services hereunder, the Board shall give reasonable notice to Executive prior to time such services are to be performed and shall accommodate the Employee's other professional or personal commitments to the extent reasonably possible.  Executive shall not be entitled to additional compensation or fees as a result of providing such services.
(e)No Set-Off.  A breach by Executive of subsections (a) or (d) above shall not affect the right of Executive or his spouse to receive and continue to receive the Retirement Benefit and the 

other benefits and perquisites described in Section 2 hereof, and the Company shall have no right of set-off against any such amounts.
Section 5.Taxes.
The Company may withhold from any payments made under this Agreement all applicable taxes, including but not limited to income, employment and social insurance taxes, as shall be required by law.
Section 6.Legal Fees.
If any legal action or proceeding is commenced to enforce or interpret the provisions of this Agreement, or any plan, agreement or arrangement referenced in this Agreement, or to recover damages for breach thereof, all reasonable legal fees, disbursements, costs and expenses paid or incurred by Executive in connection with any such action or proceeding shall be paid or reimbursed by the Company, irrespective of the outcome thereof, provided that if such action or proceeding is initiated by Executive or in his name, Executive shall not be entitled to such payment or reimbursement if it is finally determined by a court of competent jurisdiction that such action or proceeding was frivolous and brought by Executive (or in his name) in bad faith.
Section 7.No Mitigation.
Executive shall not be required to mitigate the amount of any payment provided for pursuant to this Agreement by seeking other employment or otherwise and the amount of any payment provided for pursuant to this Agreement shall not be reduced by any compensation earned as a result of Executive's other employment or otherwise.
Section 8.Successors and Assigns.
This Agreement shall inure to the benefit of and be enforceable by, and may be assigned by the Company to, any purchaser of all or substantially all of the Company's business or assets, any successor to the Company or any assignee thereof (whether direct or indirect, by purchase, merger, consolidation or otherwise).  The Company will require any such purchaser, successor or assignee to expressly assume and agree to perform this Agreement in the same manner and to the same extent that the Company would be required to perform it if no such purchase, succession or assignment had taken place.
Section 9.Waiver and Amendments.
Except as provided herein, any waiver, alteration, amendment or modification of any of the terms of this Agreement shall be valid only if made in writing and signed by the parties hereto; provided, however, that any such waiver, alteration, amendment or modification is consented to on the Company's behalf by the Board.  Notwithstanding the foregoing, the Company shall have the right to take any action described in Treasury Regulation Section 1.409A-3(i) and Treasury Regulation Section 1.409A-3(j) without the consent of Executive to the extent such action does not reduce or forfeit the then benefits of Executive  No waiver by either of the parties hereto of their rights hereunder shall be deemed to constitute a waiver with respect to any subsequent occurrences or transactions hereunder unless such waiver specifically states that it is to be construed as a continuing waiver.
Section 10.Severability.
In the event that any provision or portion of this Agreement shall be determined to be invalid or unenforceable for any reason, in whole or in part, the remaining provisions of this Agreement shall be unaffected thereby and shall remain in full force and effect to the fullest extent permitted by law.
Section 11.Governing Law.
This Agreement shall be governed by and construed in accordance with the laws of the State of Delaware (without giving effect to the choice of law principles thereof) applicable to contracts 

made and to be performed entirely within such state. The Agreement is intended to comply with the requirements of Section 409A of the Code or an exemption or exclusion therefrom and, with respect to amounts that are subject to Section 409A of the Code, shall in all respects be administered in accordance with Section 409A of the Code.  Each payment under this Agreement shall be treated as a separate payment for purposes of Section 409A of the Code.  Except as permitted under Section 409A of the Code and provided in Section 2 herein with respect to Executive's Retirement Benefit, in no event may Executive, directly or indirectly, designate the calendar year of any payment to be made under this Agreement. Any payment or benefit subject to Section 409A of the Code that is payable upon Executive's termination of employment shall not occur until Executive incurs a “separation from service” within the meaning of Section 409A of the Code.  All reimbursements and in-kind benefits provided under this Agreement that constitute deferred compensation within the meaning of Section 409A of the Code shall be made or provided in accordance with the requirements of Section 409A of the Code, including, without limitation, that (i) in no event shall reimbursements by the Company under this Agreement be made later than the end of the calendar year next following the calendar year in which the applicable fees and expenses were incurred, provided, that Executive shall have submitted an invoice for such fees and expenses at least 10 days before the end of the calendar year next following the calendar year in which such fees and expenses were incurred; (ii) the amount of in-kind benefits that the Company is obligated to pay or provide in any given calendar year (other than medical reimbursements described in Treas. Reg. § 1.409A-3(i)(1)(iv)(B)) shall not affect the in-kind benefits that the Company is obligated to pay or provide in any other calendar year; (iii) Executive's right to have the Company pay or provide such reimbursements and in-kind benefits may not be liquidated or exchanged for any other benefit; and (iv) in no event shall the Company's obligations to make such reimbursements or to provide such in-kind benefits apply later than the remaining lifetimes of Executive and Executive's spouse.  In no event shall any payment to be made pursuant to Section 3 be made later than the year following the year in which Executive remits the underlying taxes.
Section 12.Section Headings.
The headings of the sections and subsections of this Agreement are inserted for convenience only and shall not be deemed to constitute a part thereof, or affect the meaning or interpretation of this Agreement or of any term or provision hereof.
Section 13.Entire Agreement.
This Agreement constitutes the entire understanding and agreement of the parties hereto regarding the subject matter of this Agreement and supersedes all prior negotiations, discussions, correspondence, communications, understandings and agreements between the parties relating thereto.
Section 14.Counterparts.
This Agreement may be executed in two or more counterparts, each of which shall be deemed to be an original but all of which together shall constitute one and the same instrument.  The execution of this Agreement may be by actual or facsimile signature.
[Signatures to appear on the following page]
IN WITNESS WHEREOF, the undersigned have executed this Agreement as of the date first above written.
W. R. BERKLEY CORPORATION
		
	By:
	/s/Rodney A. Hawes, Jr.

Name: Rodney A. Hawes, Jr.
Title:  Chairman, Compensation Committee

William R. Berkley
/s/William R. Berkley

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