Document:

exv10w1

Exhibit 10.1

INTEL CORPORATION

NON-EMPLOYEE DIRECTOR

RESTRICTED STOCK UNIT AGREEMENT

UNDER THE 2006 EQUITY INCENTIVE PLAN

(for RSUs granted after July 1, 2010 under the OSU program)

	1.	 	TERMS OF RESTRICTED STOCK UNIT
	 
	 	 	This Restricted Stock Unit Agreement (this “Agreement”), the Notice of Grant delivered
herewith (the “Notice of Grant”) and the Intel Corporation 2006 Equity Incentive Plan (the
“2006 Plan”), as such may be amended from time to time, constitute the entire understanding
between you and Intel Corporation (the “Corporation”) regarding the Restricted Stock Units
(“RSUs”) identified in your Notice of Grant.
	 
	2.	 	VESTING OF RSUs
	 
	 	 	Provided that you continuously serve as a member of the Corporation’s Board of Directors
from the Grant Date specified in the Notice of Grant through the vesting date specified in
the Notice of Grant, then as of the vesting date the RSUs shall vest and be converted into
the right to receive the number of shares of the Corporation’s Common Stock, $.001 par value
(the “Common Stock”), determined by multiplying the Target Number of Shares as specified in
the Notice of Grant by the conversion rate as set forth below, and except as otherwise
provided in this Agreement. If a vesting date falls on a weekend or any other day on which
the NASDAQ Stock Market (“NASDAQ”) is not open, affected RSUs shall vest on the next
following NASDAQ business day.
	 
	 	 	RSUs will vest to the extent provided in and in accordance with the terms of the Notice of
Grant and this Agreement. If your service as a member of the Corporation’s Board of
Directors terminates for any reason except death, Disablement (defined below) or Retirement
(defined below), prior to the vesting date set forth in your Notice of Grant, your unvested
RSUs and dividend equivalents will be cancelled.
	 
	3.	 	CONVERSION OF RSUs
	 
	 	 	The conversion rate of RSUs into the right to receive a number of shares of Common Stock
depends on the Corporation’s Total Stockholder Return (“Intel TSR”) relative to the Total
Stockholder Return of the Comparison Group (“CG TSR”) at the end of the Performance Period,
as those terms are defined below. The minimum conversion rate shall be 33% of the Target
Number of Shares as specified on the Notice of Grant and the maximum conversion rate shall
be 200% of the Target Number of Shares as specified on the Notice of Grant. If the Intel
TSR and CG TSR are within 1 percentage point, the conversion rate shall be

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	 	 	100%. If the Intel TSR is less than the CG TSR, the conversion rate shall be 100% minus two
times the difference in percentage points. If the Intel TSR is greater than the CG TSR, the
conversion rate shall be 100% plus three times the difference in percentage points. In the
event that the conversion rate results in the right to receive a partial share of Common
Stock, the conversion rate shall be rounded down so that the RSUs shall not convert into the
right to receive the partial share.
	 
	 	 	By way of illustration, assume the CG TSR is 100%. If the Intel TSR equals 100.5%, the
conversion rate is 100%, so that your RSUs convert into the right to receive 100% of the
Target Number of Shares. If the Intel TSR is 90%, the difference is 10 percentage points
and the conversion rate is 80%, so that your RSUs convert into the right to receive 80% of
the Target Number of Shares. If the Intel TSR is 105%, the difference is 5 percentage
points and the conversion rate is 115%, so that your RSUs convert into the right to receive
115% of the Target Number of Shares.

	 	(a)	 	Intel TSR is a percentage (to the third decimal point) derived by:

	 	(1)	 	A numerator that is difference between the closing sale price
of Common Stock on the grant date subtracted from the average closing sale
price of Common Stock during the 6 months prior to the end of the Performance
Period, plus any dividends paid or payable with respect to a record date that
occurs during the Performance Period; and
	 
	 	(2)	 	A denominator that is the closing sale price of Common Stock on
the grant date.

	 	(b)	 	CG TSR is the average of the Tech 15 TSR and the S&P 100 TSR where:

	 	(1)	 	TSR of each stock is a. the difference between the closing sale
price on the grant date subtracted from the weighted average closing sale price
during the 6 months prior to the end of the Performance Period, plus any
dividends paid or payable with respect to a record date that occurs during the
Performance Period, divided (to the third decimal point) by b. the closing sale
price on the grant date;
	 
	 	(2)	 	Tech 15 TSR is the median TSR of the fifteen technology
companies that make up the list companies included in the Tech 15 TSR of
similarly designed performance based restricted stock units granted by the
Compensation Committee earlier in the calendar year of the grant date, and
regardless of any subsequent change after the grant date;
	 
	 	(3)	 	S&P 100 TSR is the median TSR of the companies that make up the
list of companies included in the Standard & Poor’s 100 of

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	 	 	 	similarly designed performance based restricted stock units granted by the
Compensation Committee earlier in the calendar year of the grant date, and
regardless of any subsequent change after the grant date; and

	 	(c)	 	For purposes of determining TSR of any company (including the Corporation):

	 	(1)	 	Any dividend paid or payable in cash shall be valued at its
cash amount (without any deemed reinvestment). Any dividend paid in securities
with a readily ascertainable fair market value shall be valued at the market
value of the securities as of the dividend record date. Any dividend paid in
other property shall be valued based on the value assigned to such dividend by
the paying company for tax purposes.
	 
	 	(2)	 	Any company included in the Tech 15 TSR or S&P 100 TSR that
does not have a stock price that is quoted on a national securities exchange at
the end of the Performance Period will be factored into the median calculation
based on its TSR from the grant date until the last date on which its stock
price was last quoted on a national securities exchange in the United States.

	 	(d)	 	Performance Period is the period beginning on January 22, 2010 and ending on
January 22, 2013. If January 22, 2013 falls on a weekend or any other day on which the
NASDAQ is not open, the Performance Period shall end on the next following NASDAQ
business day. If for any reason the Corporation (including any successor corporation)
ceases to have its stock price quoted on a national securities exchange, the
Performance Period shall end as of the last date that the stock price is quoted on a
national securities exchange.

	4.	 	DIVIDEND EQUIVALENTS
	 
	 	 	Dividend equivalents will vest at the same time as their corresponding RSUs and convert into
the right to receive shares of Common Stock. Dividend equivalents will be paid on the
number of shares of the Corporation’s Common Stock into which this RSU is converted by
determining the sum of the dividends paid or payable on such number of shares of Common
Stock with respect to each record date that occurs between the Grant Date and the vesting
date specified in the Notice of Grant (without any interest or compounding), divided (to the
third decimal point) by the average of the highest and lowest sales prices of the Common
Stock as reported by NASDAQ on the last day of the Performance Period. The quotient derived
from the previous sentence shall be rounded down so that dividend equivalents will convert
into the right to receive whole shares of Common Stock.

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	5.	 	SETTLEMENT INTO COMMON STOCK
	 
	 	 	Shares of Common Stock will be issued or become free of restrictions as soon as practicable
following the vesting date of the RSUs and dividend equivalents, provided that you have
satisfied your tax withholding obligations as specified under Section 11 of this Agreement
and you have completed, signed and returned any documents and taken any additional action
that the Corporation deems appropriate to enable it to accomplish the delivery of the shares
of Common Stock. The shares of Common Stock will be issued in your name (or may be issued
to your executor or personal representative, in the event of your death or Disablement), and
may be effected by recording shares on the stock records of the Corporation or by crediting
shares in an account established on your behalf with a brokerage firm or other custodian, in
each case as determined by the Corporation. In no event will the Corporation be obligated
to issue a fractional share.
	 
	 	 	Notwithstanding the foregoing, (i) the Corporation shall not be obligated to deliver any
shares of the Common Stock during any period when the Corporation determines that the
conversion of a RSU or the delivery of shares hereunder would violate any laws of the United
States or your country of residence or employment and/or may issue shares subject to any
restrictive legends that, as determined by the Corporation’s counsel, is necessary to comply
with securities or other regulatory requirements, and (ii) the date on which shares are
issued or credited to your account may include a delay in order to provide the Corporation
such time as it determines appropriate to calculate Intel TSR and CG TSR, for the Committee
(as defined below) to certify performance results, to calculate and address tax withholding
and to address other administrative matters. The number of shares of Common Stock into
which RSUs and dividend equivalents convert as specified in the Notice of Grant shall be
adjusted for stock splits and similar matters as specified in and pursuant to the 2006 Plan.
	 
	6.	 	TERMINATION OF SERVICE AS DIRECTOR
	 
	 	 	Except as expressly provided otherwise in this Agreement, if your term of service as a
director of the Corporation’s Board of Directors terminates for any reason, whether
voluntarily or involuntarily, other than on account of death, Disablement (defined below) or
Retirement (defined below), all RSUs and dividend equivalents not then vested shall be
cancelled on the date of termination of service
	 
	7.	 	DEATH
	 
	 	 	Except as expressly provided otherwise in this Agreement, if you die during your term of
service as a member of the Corporation’s Board of Directors, your RSUs and dividend
equivalents will become one hundred percent (100%) vested.
	 
	8.	 	DISABILITY

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	 	 	Except as expressly provided otherwise in this Agreement, your RSUs and dividend equivalents
will become one hundred percent (100%) vested, if your service as a member of the
Corporation’s Board of Directors terminates due to your Disablement. For purposes of this
Section, “Disablement” shall be determined in accordance with the standards and procedures
of the then-current Long Term Disability Plan maintained by the Corporation and in the event
you are not a participant in a then-current Long Term Disability Plan maintained by the
Corporation, “Disablement” means a physical condition arising from an illness or injury,
which renders an individual incapable of performing work in any occupation, as determined by
the Corporation.
	 
	9.	 	RETIREMENT
	 
	 	 	If you retire from service as a member of the Corporation’s Board of Directors at age 72 or
more, or with at least seven (7) years of service as a member of the Corporation’s Board of
Directors, your RSUs will become one hundred percent (100%) vested.
	 
	10.	 	TAX WITHHOLDING
	 
	 	 	RSUs and dividend equivalents are taxable upon vesting (as indicated in your Notice of
Grant) or, if later, the date to which you have deferred settlement of your RSUs. To the
extent required by applicable federal, state or other law, you shall make arrangements
satisfactory to the Corporation (or the Subsidiary that employs you, if your Subsidiary is
involved in the administration of the 2006 Plan) for the payment and satisfaction of any
income tax, social security tax, payroll tax, social taxes, applicable national or local
taxes, or payment on account of other tax related to withholding obligations that arise by
reason of granting of a RSU, vesting of a RSU or any sale of shares of the Common Stock
(whichever is applicable).
	 
	 	 	The Corporation shall not be required to issue or lift any restrictions on shares of the
Common Stock pursuant to your RSUs and dividend equivalents or to recognize any purported
transfer of shares of the Common Stock until such obligations are satisfied.
	 
	 	 	Unless provided otherwise by the Committee of the Board of Directors established pursuant to
the 2006 Plan (the “Committee”), these tax obligations (if any) will be satisfied by the
Corporation withholding a number of shares of Common Stock that would otherwise be issued
under the RSUs and dividend equivalents that the Corporation determines has a Market Value
sufficient to meet the tax withholding obligations. In the event that the Committee
provides that these obligations will not be satisfied under the method described in the
previous sentence, you authorize UBS Financial Services Inc., or any successor plan
administrator, to sell a number of shares of Common Stock that are issued under the RSUs and
dividend equivalents, which the Corporation determines is sufficient to generate an amount
that meets the tax withholding obligations plus

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	 	 	additional shares to account for rounding and market fluctuations, and to pay such tax
withholding to the Corporation. The shares may be sold as part of a block trade with other
participants of the 2006 Plan in which all participants receive an average price. For this
purpose, “Market Value” will be calculated as the average of the highest and lowest sales
prices of the Common Stock as reported by NASDAQ on the day your RSUs and dividend
equivalents vest. The future value of the underlying shares of Common Stock is unknown and
cannot be predicted with certainty.
	 
	 	 	You are ultimately liable and responsible for all taxes owed by you in connection with your
RSUs and dividend equivalents, regardless of any action the Corporation takes or any
transaction pursuant to this Section with respect to any tax withholding obligations that
arise in connection with the RSUs and dividend equivalents. The Corporation makes no
representation or undertaking regarding the treatment of any tax withholding in connection
with the grant, issuance, vesting or settlement of the RSUs and dividend equivalents or the
subsequent sale of any of the shares of Common Stock underlying the RSUs and dividend
equivalents that vest. The Corporation does not commit and is under no obligation to
structure the RSU program to reduce or eliminate your tax liability.
	 
	11.	 	ELECTION TO DEFER RECEIPT OF RSU SHARES
	 
	 	 	You may elect to defer receipt of shares of Common Stock relating to an RSU beyond the
vesting dates set forth in your Notice of Grant under the rules and procedures established
separately by the Corporation. That election will allow you to defer income recognition,
until the date on which your service as a member of the Corporation’s Board of Directors
terminates for any reason. Under Internal Revenue Code Section 409A, the election to defer
under this section must be made in the calendar year prior to the year in which services
related to those RSU’s are first performed. Notwithstanding anything to the contrary in this
Agreement, shares of Common Stock will not be issued and you will not have any rights of a
stockholder in Common Stock issuable under this Agreement to the extent that you have
elected to defer the issuance and receipt of such Common Stock. If, however, your service as
a member of the Corporation’s Board of Directors terminates prior to the vesting dates set
forth in your Notice of Grant, any shares that would not have vested on your date of
termination will be cancelled regardless of your election. Notwithstanding your election to
defer made in the calendar year prior to grant, the Corporation is not obligated to make a
grant in any future year or in any given amount and should not create an expectation that
the Corporation might make a grant in any future year or in any given amount.
	 
	12.	 	RIGHTS AS A STOCKHOLDER
	 
	 	 	Your RSUs and dividend equivalents may not be otherwise transferred or assigned, pledged,
hypothecated or otherwise disposed of in any way, whether by operation of law or otherwise,
and may not be subject to execution,

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	 	 	attachment or similar process. Any attempt to transfer, assign, hypothecate or otherwise
dispose of your RSUs and dividend equivalents other than as permitted above, shall be void
and unenforceable against the Corporation.
	 
	 	 	You will have the rights of a stockholder only after shares of the Common Stock have been
issued to you following vesting of your RSUs and dividend equivalents and satisfaction of
all other conditions to the issuance of those shares as set forth in this Agreement. RSUs
and dividend equivalents shall not entitle you to any rights of a stockholder of Common
Stock and there are no voting or dividend rights with respect to your RSUs and dividend
equivalents. RSUs and dividend equivalents shall remain terminable pursuant to this
Agreement at all times until they vest and convert into shares. As a condition to having
the right to receive shares of Common Stock pursuant to your RSUs and dividend equivalents,
you acknowledge that unvested RSUs and dividend equivalents shall have no value for purposes
of any aspect of your employment relationship with the Corporation.
	 
	13.	 	AMENDMENTS
	 
	 	 	The 2006 Plan and RSUs and dividend equivalents may be amended or altered by the Committee
or the Board of Directors of the Corporation to the extent provided in the 2006 Plan.
	 
	14.	 	THE 2006 PLAN AND OTHER TERMS; OTHER MATTERS

	 	(a)	 	Certain capitalized terms used in this Agreement are defined in the 2006 Plan.
Any prior agreements, commitments or negotiations concerning the RSUs and dividend
equivalents are superseded by this Agreement and your Notice of Grant. You hereby
acknowledge that a copy of the 2006 Plan has been made available to you.
	 
	 	(b)	 	The grant of RSUs and dividend equivalents to you in any one year, or at any
time, does not obligate the Corporation to make a grant in any future year or in any
given amount and should not create an expectation that the Corporation or any
Subsidiary might make a grant in any future year or in any given amount.
	 
	 	(c)	 	To the extent that the grant of RSUs and dividend equivalents refers to the
Common Stock of Intel Corporation, and as required by the laws of your country of
residence or employment, only authorized but unissued shares thereof shall be utilized
for delivery upon vesting in accord with the terms hereof.
	 
	 	(d)	 	Notwithstanding any other provision of this Agreement, if any changes in the
financial or tax accounting rules applicable to the RSUs and dividend equivalents
covered by this Agreement shall occur which, in the sole judgment of the Committee, may
have an adverse effect on the reported earnings, assets or liabilities of the
Corporation, the Committee may, in its

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	 	 	 	sole discretion, modify this Agreement or cancel and cause a forfeiture with respect
to any unvested RSUs and dividend equivalents at the time of such determination.
	 
	 	(e)	 	Because this Agreement relates to terms and conditions under which you may be
issued shares of Common Stock of Intel Corporation, a Delaware corporation, an
essential term of this Agreement is that it shall be governed by the laws of the State
of Delaware, without regard to choice of law principles of Delaware or other
jurisdictions. The Committee may provide that any dispute as to this Agreement shall
be presented and determined in such forum as the Board of Directors may specify,
including through binding arbitration. Any action, suit, or proceeding relating to
this Agreement or the RSUs and dividend equivalents granted hereunder shall be brought
in the state or federal courts of competent jurisdiction in the State of California.
	 
	 	(f)	 	Copies of Intel Corporation’s Annual Report to Stockholders for its latest
fiscal year and Intel Corporation’s latest quarterly report are available, without
charge, at the Corporation’s business office.
	 
	 	(g)	 	Notwithstanding any other provision of this Agreement, if any changes in law or
the financial or tax accounting rules applicable to the RSUs and dividend equivalents
covered by this Agreement shall occur, the Corporation may, in its sole discretion, (1)
modify this Agreement to impose such restrictions or procedures with respect to the
RSUs and dividend equivalents (whether vested or unvested), the shares issued or
issuable pursuant to the RSUs and dividend equivalents and/or any proceeds or payments
from or relating to such shares as it determines to be necessary or appropriate to
comply with applicable law or to address, comply with or offset the economic effect to
the Corporation of any accounting or administrative matters relating thereto, or (2)
cancel and cause a forfeiture with respect to any unvested RSUs and dividend
equivalents at the time of such determination.

8ex10-1.htm

    Exhibit
10.1

     

     

    VOTING
AGREEMENT

     

    This VOTING AGREEMENT (this
“Agreement”) is
dated as of July 27, 2010, by and between MMCAP International, Inc. SPC and MM
Asset Management Inc. (collectively, “Shareholder”) and PMA
Capital Corporation, a Pennsylvania corporation (the “Company”).  All
capitalized terms used but not defined herein shall have the meanings assigned
to them in the Merger Agreement (defined below).

     

    WHEREAS, the Shareholder is
the holder of shares of Class A common stock of the Company (“Company Common
Stock”);

     

    WHEREAS, the Company, Old
Republic International Corporation (“ORI”) and OR New
Corp. (“Merger
Sub”) entered into an Agreement and Plan of Merger dated June 9, 2010 (as
such agreement may be subsequently amended or modified, the “Merger Agreement”),
pursuant to which Merger Sub shall merge with and into the Company and, in
connection therewith, each outstanding share of Company Common Stock will be
converted into the right to receive the Merger Consideration; and

     

    WHEREAS, Shareholder owns or
has the right to vote the shares of Company Common Stock identified on Exhibit A hereto
(such shares, together with all shares of Company Common Stock subsequently
acquired by Shareholder during the term of this Agreement, including through the
exercise of any stock option or other equity award, warrant or similar
instrument, being referred to as the “Shares”).

     

    NOW, THEREFORE, in
consideration of the promises, representations, warranties and agreements
contained herein, and for other good and valuable consideration, the receipt and
adequacy of which are hereby acknowledged, the parties hereto, intending to be
legally bound, agree as follows:

     

    Section
1.  Agreement to Vote
Shares.  Shareholder agrees that, prior to the Expiration Date
(as defined in Section 6), at any meeting of shareholders of the Company,
however called, or at any adjournment or postponement thereof, or in connection
with any written consent of the shareholders of the Company, except as otherwise
agreed to in writing in advance by the Company, Shareholder shall:

     

    (a)           appear
at each such meeting, in person or by proxy, and thereby cause the Shares to be
counted as present thereat for purposes of calculating a quorum;
and

     

    (b)           from
and after the date hereof until the Expiration Date, vote (or cause to be
voted), in person or by proxy, or deliver a written consent (or cause a consent
to be delivered) with respect to, all the Shares (whether acquired heretofore or
hereafter) that are beneficially owned by Shareholder, or as to which
Shareholder has, directly or indirectly, the right to vote or direct the voting,
in the manner recommended by the Company’s Board of Directors with respect to
(i) approval of the Merger Agreement; (ii) any matter reasonably necessary for
consummation of the transactions contemplated by the Merger Agreement; and (iii)
any Alternative Proposal.

     

     

    
      
         

      

      
        1

        
          

        

      

      
         

      

    

     

     

     

    Section
2.  No
Inconsistent Agreements.  Shareholder hereby agrees that
Shareholder shall not enter into any voting agreement or grant a proxy or power
of attorney with respect to the Shares that is inconsistent with Shareholder’s
obligations under this Agreement.

     

    Section
3.  Company
Board Action.  The Company’s Board of Directors (the “Board”)
agrees to make a determination that Shareholder is an “Exempted Person,” as such
term is defined in the Company’s Section 382 Right Agreement dated August 6,
2009, for so long as the Shareholder beneficially owns more than 5% but less
than 10% of the outstanding Company Common Stock or until the Board of Directors
shall earlier determine.

     

    Section
4.  Representations and
Warranties of Shareholder.  Shareholder represents and warrants
to and agrees with the Company as follows:

     

    (a)           Shareholder
has all requisite capacity and authority to enter into and perform his, her or
its obligations under this Agreement.

     

    (b)           This
Agreement has been duly executed and delivered by Shareholder, and assuming the
due authorization, execution and delivery by the Company, constitutes the valid
and legally binding obligation of Shareholder enforceable against Shareholder in
accordance with its terms (except as such enforceability may be limited by
applicable bankruptcy, insolvency and similar laws affecting creditors’ rights
and remedies generally and to general principles of equity, whether applied in a
court of law or a court of equity).

     

    (c)           The
execution and delivery of this Agreement by Shareholder does not, and the
performance by Shareholder of his, her or its obligations hereunder and the
consummation by Shareholder of the transactions contemplated hereby will not,
violate or conflict with, or constitute a default under, any agreement,
instrument, contract or other obligation or any order, arbitration award,
judgment or decree to which Shareholder is a party or by which Shareholder is
bound, or any statute, rule or regulation to which Shareholder is subject or, in
the event that Shareholder is a corporation, partnership, trust or other entity,
any charter, bylaw or other organizational document of Shareholder.

     

    (d)           Shareholder
is the beneficial owner of and has good title to all of the Shares set forth on
Exhibit A
hereto, and the Shares are so owned free and clear of any liens, security
interests, charges or other encumbrances, except as otherwise described on Exhibit A
hereto.  Shareholder does not own, of record or beneficially, any
shares of capital stock of the Company other than the Shares Shareholder has the
right to vote the Shares, and none of the Shares is subject to any voting trust
or other agreement, arrangement or restriction with respect to the voting of the
Shares, except as contemplated by this Agreement.

     

    Section
5.  Specific
Performance; Remedies; Attorneys Fees.  Shareholder
acknowledges that it will be impossible to measure in money the damage to the
Company if Shareholder fails to comply with the obligations imposed by this
Agreement and that, in the event of any such failure, the Company will not have
an adequate remedy at law or in equity.  Accordingly,

     

     

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

     

     

    Shareholder
agrees that injunctive relief or other equitable remedy, in addition to remedies
at law or in damages, is the appropriate remedy for any such failure and will
not oppose the granting of such relief on the basis that the Company has an
adequate remedy at law.  Shareholder further agrees that Shareholder
will not seek, and agrees to waive any requirement for, the securing or posting
of a bond in connection with the Company’s seeking or obtaining such equitable
relief.  Shareholder also agrees that if Shareholder fails to comply
in any material respect with the obligations imposed by this Agreement,
Shareholder shall pay to the Company all of the Company’s reasonable costs and
expenses (including attorneys’ fees) in connection with enforcing its rights
under this Agreement.

     

    Section
6.  Term of
Agreement; Termination.  As used in this Agreement, the term
“Expiration
Date” shall mean the earlier to occur of (a) the receipt of shareholder
approval of the Merger Agreement, (b) such date and time as the Merger
Agreement shall be terminated, or (c) upon mutual written agreement of the
parties to terminate this Agreement.  Upon termination or expiration,
no party shall have any further obligations or liabilities hereunder; provided,
however, such termination shall not relieve any party from liability for any
willful breach of this Agreement prior to such termination.  Agreement
is to terminate if none of the above has occurred before October 30,
2010.

     

    Section
7.  Entire
Agreement; Amendments.  This Agreement supersedes all prior
agreements, written or oral, among the parties hereto with respect to the
subject matter hereof and contains the entire agreement among the parties with
respect to the subject matter hereof.  This Agreement may not be
amended, supplemented or modified, and no provisions hereof may be modified or
waived, except by an instrument in writing signed by each party
hereto.  No waiver of any provision hereof by either party shall be
deemed a waiver of any other provision hereof by any such party, nor shall any
such waiver be deemed a continuing waiver of any provision hereof by such
party.

     

    Section
8.  Severability.  In
the event that any one or more provisions of this Agreement shall for any reason
be held invalid, illegal or unenforceable in any respect, by any court of
competent jurisdiction, such invalidity, illegality or unenforceability shall
not affect any other provisions of this Agreement and the parties shall use
their reasonable efforts to substitute a valid, legal and enforceable provision
which, insofar as practical, implements the purposes and intents of this
Agreement.

     

    Section
9.  Further
Assurances.  Shareholder shall, from time to time, execute and
deliver, or cause to be executed and delivered, such additional or further
consents, documents and other instruments as the Company may reasonably request
for the purpose of effectively carrying out the transactions contemplated by
this Agreement.

     

    Section
10.  Governing
Law.  This Agreement shall be governed by, and construed in
accordance with, the laws of the Commonwealth of Pennsylvania, without giving
effect to choice of law principles that would cause the laws of another
jurisdiction to apply.

     

    Section
11.  Jurisdiction.  Each
of the parties hereto (i) consents to submit itself to the personal jurisdiction
of the courts of the Commonwealth of Pennsylvania or, if under applicable law
exclusive jurisdiction over such matter is vested in the federal courts, any
court of the United

     

     

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

     

     

    States
located in the Commonwealth of Pennsylvania, in the event any dispute arises out
of this Agreement or any of the transactions contemplated by this Agreement,
(ii) agrees that it will not attempt to deny or defeat such personal
jurisdiction by motion or other request for leave from any such court, (iii)
agrees that it will not bring any action relating to this Agreement or any of
the transactions contemplated by this Agreement in any court other than the
courts of the Commonwealth of Pennsylvania or, if under applicable law exclusive
jurisdiction over such matter is vested in the federal courts, any court of the
United States located in the Commonwealth of Pennsylvania, and (iv) to the
fullest extent permitted by law, consents to service being made through the
notice procedures set forth in this Agreement.  Each of the parties
hereto hereby agrees that, to the fullest extent permitted by law, service of
any process, summons, notice or document by U.S. registered mail to the
respective addresses set forth in this Agreement shall be effective service of
process for any suit or proceeding in connection with this Agreement or the
transactions contemplated hereby.

     

    Section
12.  Publication.  Shareholder
hereby permits the Company to publish and disclose in press releases, the
Company’s proxy statement and any other disclosures or filings required by
applicable law, its identity and ownership of shares of the Company Common
Stock, the nature of the commitments, arrangements and understandings pursuant
to this Agreement, and/or the text of this Agreement.

     

    Section
13.  Notices.  All
notices, requests, claims, demands and other communications hereunder shall be
in writing and shall be given (and shall be deemed to have been duly given upon
receipt) by delivery in person, by facsimile or by registered or certified mail
(postage prepaid, return receipt requested) to the respective parties at the
following addresses (or at such other address for a party as shall be specified
by like notice):

     

    (a)           if
to the Company, to:

     

    PMA
Capital Corporation

    380
Sentry Parkway

    Blue
Bell, PA  19422

    Attention:  Executive
Vice President and General Counsel

    Facsimile:  (610)
397-5144

     

    (b)           if
to Shareholder, to:

     

    MMCAP
International Inc., SPC

    c/o MM
Asset Management Inc.

    120
Adelaide Street West

    Suite
2601

    Toronto,
Ontario

    Canada
M5H 1T1

    Attention:  Hillel
Meltz

    Facsimile:

     

    Section
14.  Counterparts.  This
Agreement may be executed and delivered (including by facsimile, email or other
electronic transmission) in one or more counterparts, each of which

     

     

     

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

     

     

    when
executed shall be deemed to be an original but all of which taken together shall
constitute one and the same agreement.

     

    IN WITNESS WHEREOF, the
parties hereto have executed and delivered this Agreement as of the date first
written above.

     

    PMA
CAPITAL CORPORATION

    

    

    By:   /s/ Stephen L.
Kibblehouse

    Name: Stephen L.
Kibblehouse

    Title:  Executive Vice
President and

        General
Counsel

    

    

    SHAREHOLDER:

    

    MMCAP
INTERNATIONAL, INC. SPC

    

    

    By:  /s/ Ben
Cubitt

    Name: Ben Cubitt

    Title:  PM

    

    

    MM
MANAGEMENT INC.

    

    

    By:  /s/ Ben
Cubitt

    Name: Ben Cubitt

    Title:  PM

     

     

     

     

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

     

    
 

    EXHIBIT
A

     

    SHARES
OF COMPANY COMMON STOCK BENEFICIALLY OWNED BY

    SHAREHOLDER

     

     

    
      	 
      	
              Company

            
	
              Shareholder

            	
              Common
      Stock

            
	 
      	 
      
	
              MMCAP
      International, Inc. SPC

            	
              1,616,129

            
	 
      	 
      
	
              MM
      Asset Management Inc.

            	
              1,616,129

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00176-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00176-of-00352.parquet"}]]